Market Newsdesk

January 30, 2025 7:05 am

Allegro MicroSystems Reports Third Quarter 2025 Results

MANCHESTER, N.H., Jan. 30, 2025 (GLOBE NEWSWIRE) — Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its third quarter ended December 27, 2024.

“We delivered on our commitments with third quarter sales of $178 million and non-GAAP EPS of $0.07, both above the midpoint of our guidance,” said Vineet Nargolwala, President and CEO of Allegro. “During the quarter, we introduced a record number of new magnetic sensing and power products to the market, further expanding our differentiated portfolios. This increasing velocity further solidifies our market leadership and positions us well for above market growth.”

Third Quarter Financial Highlights:

In thousands, except per share data	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net Sales
Automotive	$	130,066		$	141,893		$	194,764		$	403,143		$	577,515
Industrial and other		47,806			45,498			60,220			129,039			231,271
Total net sales	$	177,872		$	187,391		$	254,984		$	532,182		$	808,786
GAAP Financial Measures
Gross margin %		45.7	%		45.7	%		52.5	%		45.4	%		55.8	%
Operating margin %		—	%		2.2	%		14.4	%		(1.2	)%		22.3	%
Diluted EPS	$	(0.04	)	$	(0.18	)	$	0.17		$	(0.31	)	$	0.82
Non-GAAP Financial Measures
Gross margin %		49.1	%		48.8	%		54.6	%		48.9	%		57.0	%
Operating margin %		10.8	%		11.7	%		27.2	%		9.6	%		29.8	%
Diluted EPS	$	0.07		$	0.08		$	0.32		$	0.18		$	1.11

Business Outlook

For the fourth quarter of fiscal year 2025 ending March 28, 2025, the Company expects total net sales to be in the range of $180 million to $190 million.

The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 46% and 48%, which contemplates the impact of annual pricing agreements ahead of cost reductions, as well as higher capacity charges resulting from adjusted production levels in the quarter,
Operating expenses are expected to increase by approximately 5% sequentially to $72 million, primarily due to annual payroll tax resets,
As a result of the expected repricing of the term loan and anticipated $30 million Q4 debt repayment, the Company now expects Interest Expense to be approximately $6 million, and
Diluted Earnings per Share are expected to be between $0.03 and $0.07.

Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, January 30, 2025 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholder continues to have influence over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.

ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited)

	Three-Month Period Ended						Nine-Month Period Ended
	December 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
Net sales	$	177,872		$	254,984		$	532,182		$	808,786
Cost of goods sold		96,657			121,156			290,534			357,505
Gross profit		81,215			133,828			241,648			451,281
Operating expenses:
Research and development		43,317			44,396			132,031			130,799
Selling, general and administrative		37,939			52,746			116,221			140,135
Total operating expenses		81,256			97,142			248,252			270,934
Operating (loss) income		(41	)		36,686			(6,604	)		180,347
Interest and other (expense) income		(7,561	)		(315	)		(25,902	)		(2,801	)
Loss on change in fair value of forward repurchase contract		—			—			(34,752	)		—
(Loss) income before income taxes		(7,602	)		36,371			(67,258	)		177,546
Income tax (benefit) provision		(803	)		2,969			(9,233	)		17,584
Net (loss) income		(6,799	)		33,402			(58,025	)		159,962
Net income attributable to non-controlling interests		61			57			185			150
Net (loss) income attributable to Allegro MicroSystems, Inc.	$	(6,860	)	$	33,345		$	(58,210	)	$	159,812
Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:
Basic	$	(0.04	)	$	0.17		$	(0.31	)	$	0.83
Diluted	$	(0.04	)	$	0.17		$	(0.31	)	$	0.82
Weighted average shares outstanding:
Basic		184,011,189			192,724,541			188,886,583			192,384,315
Diluted		184,011,189			194,570,380			188,886,583			194,925,040

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

	Three-Month Period Ended				Change						Nine-Month Period Ended				Change
	December 27, 2024		December 29, 2023		Amount			%			December 27, 2024		December 29, 2023		Amount			%
	(Dollars in thousands)										(Dollars in thousands)
Automotive	$	130,066	$	194,764	$	(64,698	)		(33	)%	$	403,143	$	577,515	$	(174,372	)		(30	)%
Industrial and other		47,806		60,220		(12,414	)		(21	)%		129,039		231,271		(102,232	)		(44	)%
Total net sales	$	177,872	$	254,984	$	(77,112	)		(30	)%	$	532,182	$	808,786	$	(276,604	)		(34	)%

ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	December 27,			March 29,
	2024 (Unaudited)			2024
Assets
Current assets:
Cash and cash equivalents	$	138,452		$	212,143
Restricted cash		10,510			10,018
Trade accounts receivable, net		83,805			118,508
Inventories		193,140			162,302
Prepaid income taxes		36,037			31,908
Prepaid expenses and other current assets		33,683			33,584
Current portion of related party notes receivable		—			3,750
Total current assets		495,627			572,213
Property, plant and equipment, net		320,975			321,175
Deferred income tax assets		65,398			54,496
Goodwill		202,101			202,425
Intangible assets, net		261,553			276,854
Related party notes receivable, less current portion		—			4,688
Equity investment in related party		30,914			26,727
Other assets		65,172			72,025
Total assets	$	1,441,740		$	1,530,603
Liabilities, Non-Controlling Interests and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	39,685		$	35,964
Amounts due to related party		2,102			1,626
Accrued expenses and other current liabilities		57,751			76,389
Current portion of long-term debt		1,374			3,929
Total current liabilities		100,912			117,908
Long-term debt		374,729			249,611
Other long-term liabilities		31,673			31,368
Total liabilities		507,314			398,887
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—			—
Common stock		1,840			1,932
Additional paid-in capital		1,004,080			694,332
(Accumulated deficit) retained earnings		(38,791	)		463,012
Accumulated other comprehensive loss		(34,084	)		(28,841	)
Equity attributable to Allegro MicroSystems, Inc.		933,045			1,130,435
Non-controlling interests		1,381			1,281
Total stockholders’ equity		934,426			1,131,716
Total liabilities, non-controlling interests and stockholders’ equity	$	1,441,740		$	1,530,603

ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)

	Three-Month Period Ended						Nine-Month Period Ended
	December 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
Cash flows from operating activities:
Net (loss) income	$	(6,799	)	$	33,402		$	(58,025	)	$	159,962
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		16,123			20,195			48,578			49,548
Amortization of deferred financing costs		694			185			1,781			292
Deferred income taxes		(3,751	)		(10,119	)		(11,546	)		(28,253	)
Stock-based compensation		10,588			10,920			32,251			32,839
Loss on change in fair value of forward repurchase contract		—			—			34,752			—
Provisions for inventory and expected credit losses		3,031			429			7,519			9,851
Change in fair value of marketable securities		—			—			—			3,579
Other non-cash reconciling items		68			(25	)		6,645			18
Changes in operating assets and liabilities:
Trade accounts receivable		(7,061	)		5,081			34,356			(2,564	)
Inventories		(19,243	)		11,312			(38,074	)		(19,909	)
Prepaid expenses and other assets		14,407			7,368			(1,401	)		(13,085	)
Trade accounts payable		(8,203	)		(12,299	)		5,467			(9,604	)
Due to and from related parties		(3,568	)		705			564			6,817
Accrued expenses and other current and long-term liabilities		(4,469	)		9,404			(21,307	)		(20,540	)
Net cash (used in) provided by operating activities		(8,183	)		76,558			41,560			168,951
Cash flows from investing activities:
Purchases of property, plant and equipment		(13,615	)		(34,399	)		(34,564	)		(110,500	)
Acquisition of business, net of cash acquired		319			(408,119	)		319			(408,119	)
Sales of marketable securities		—			—			—			16,175
Net cash used in investing activities		(13,296	)		(442,518	)		(34,245	)		(502,444	)
Cash flows from financing activities:
Net proceeds from Refinanced 2023 Term Loan Facility		—			—			193,483			—
Repayment of 2023 Term Loan Facility		(25,000	)		—			(75,000	)		—
Borrowings of senior secured debt, net of deferred financing costs		—			245,452			—			245,452
Repayment of 2020 Term Loan Facility		—			(25,000	)		—			(25,000	)
Repayments of other debt		—			(743	)		—			(743	)
Finance lease payments		(318	)		—			(703	)		—
Receipts on related party notes receivable		—			938			1,875			2,813
Payments for taxes related to net share settlement of equity awards		(483	)		(10,732	)		(12,780	)		(24,823	)
Proceeds from issuance of common stock under employee stock purchase plan		—			—			1,987			1,899
Repurchases of common stock		(116	)		—			(853,921	)		—
Net proceeds from issuance of common stock		—			—			665,850			—
Payment of debt issuance costs		—			—			—			(1,450	)
Net cash (used in) provided by financing activities		(25,917	)		209,915			(79,209	)		198,148
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(2,680	)		1,349			(1,305	)		375
Net (decrease) increase in cash and cash equivalents and restricted cash		(50,076	)		(154,696	)		(73,199	)		(134,970	)
Cash and cash equivalents and restricted cash at beginning of period		199,038			378,431			222,161			358,705
Cash and cash equivalents and restricted cash at end of period:	$	148,962		$	223,735		$	148,962		$	223,735

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.

Non-GAAP Income Tax Provision

In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.

*Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Gross Profit	$	81,215		$	85,662		$	133,828		$	241,648		$	451,281
GAAP Gross Margin (% of net sales)		45.7	%		45.7	%		52.5	%		45.4	%		55.8	%

Non-GAAP adjustments
Transaction-related costs		5			10			523			14			523
Purchased intangible amortization		4,875			4,875			3,648			14,625			4,323
Restructuring costs		522			16			166			1,738			166
Stock-based compensation		802			817			1,073			2,180			4,625
Total Non-GAAP Adjustments	$	6,204		$	5,718		$	5,410		$	18,557		$	9,637

Non-GAAP Gross Profit	$	87,419		$	91,380		$	139,238		$	260,205		$	460,918
Non-GAAP Gross Margin (% of net sales)		49.1	%		48.8	%		54.6	%		48.9	%		57.0	%

*Reconciliation of Non-GAAP Operating Expenses*

	Three-Month Period Ended							Nine-Month Period Ended
	December 27, 2024		September 27, 2024			December 29, 2023		December 27, 2024			December 29, 2023
	(Dollars in thousands)							(Dollars in thousands)
GAAP Operating Expenses	$	81,256	$	81,595		$	97,142	$	248,252		$	270,934

Research and Development Expenses
GAAP Research and Development Expenses		43,317		43,510			44,396		132,031			130,799
Non-GAAP adjustments
Transaction-related costs		333		206			343		1,568			352
Restructuring costs		568		260			908		997			908
Stock-based compensation		3,960		3,523			3,870		11,218			10,340
Other costs⁽¹⁾		—		3			—		3			—
Non-GAAP Research and Development Expenses		38,456		39,518			39,275		118,245			119,199

Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses		37,939		38,085			52,746		116,221			140,135
Non-GAAP adjustments
Transaction-related costs		148		275			9,543		1,237			14,419
Purchased intangible amortization		535		535			495		1,605			1,210
Restructuring costs		1,264		2,046			5,795		4,355			5,795
Stock-based compensation		5,826		7,205			5,977		18,853			17,874
Other costs⁽¹⁾		391		(1,820	)		283		(618	)		383
Non-GAAP Selling, General and Administrative Expenses		29,775		29,844			30,653		90,789			100,454

Total Non-GAAP Adjustments		13,025		12,233			27,214		39,218			51,281

Non-GAAP Operating Expenses	$	68,231	$	69,362		$	69,928	$	209,034		$	219,653

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.

*Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating (Loss) Income	$	(41	)	$	4,067		$	36,686		$	(6,604	)	$	180,347
GAAP Operating Margin (% of net sales)		—	%		2.2	%		14.4	%		(1.2	)%		22.3	%

Transaction-related costs		486			491			10,409			2,819			15,294
Purchased intangible amortization		5,410			5,410			4,143			16,230			5,533
Restructuring costs		2,354			2,322			6,869			7,090			6,869
Stock-based compensation		10,588			11,545			10,920			32,251			32,839
Other costs⁽¹⁾		391			(1,817	)		283			(615	)		383
Total Non-GAAP Adjustments	$	19,229		$	17,951		$	32,624		$	57,775		$	60,918

Non-GAAP Operating Income	$	19,188		$	22,018		$	69,310		$	51,171		$	241,265
Non-GAAP Operating Margin (% of net sales)		10.8	%		11.7	%		27.2	%		9.6	%		29.8	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.

*Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income	$	(6,799	)	$	(33,613	)	$	33,402		$	(58,025	)	$	159,962
GAAP Net (Loss) Income Margin (% of net sales)		(3.8	)%		(17.9	)%		13.1	%		(10.9	)%		19.8	%

Interest expense		7,762			10,353			3,854			23,492			5,381
Interest income		(388	)		(420	)		(857	)		(1,302	)		(2,550	)
Income tax (benefit) provision		(803	)		(9,470	)		2,969			(9,233	)		17,584
Depreciation & amortization		16,123			15,997			20,227			48,578			49,645
EBITDA	$	15,895		$	(17,153	)	$	59,595		$	3,510		$	230,022

Transaction-related costs		486			3,295			10,409			5,623			15,294
Restructuring costs		2,354			2,067			6,869			6,835			6,869
Stock-based compensation		10,588			11,545			10,920			32,251			32,839
Loss on change in fair value of forward repurchase contract		—			34,752			—			34,752			—
Other costs⁽¹⁾		998			(2,195	)		(551	)		1,610			5,339
Adjusted EBITDA	$	30,321		$	32,311		$	87,242		$	84,581		$	290,363
Adjusted EBITDA Margin (% of net sales)		17.0	%		17.2	%		34.2	%		15.9	%		35.9	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, and income (loss) in earnings of equity investments.

*Reconciliation of Non-GAAP Profit before Tax*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP (Loss) Income before Income Taxes	$	(7,602	)	$	(43,083	)	$	36,371		$	(67,258	)	$	177,546

Transaction-related costs		486			3,295			10,409			5,623			15,294
Transaction-related interest		192			141			162			1,042			162
Purchased intangible amortization		5,410			5,410			4,143			16,230			5,533
Restructuring costs		2,354			2,067			6,869			6,835			6,869
Stock-based compensation		10,588			11,545			10,920			32,251			32,839
Loss on change in fair value of forward repurchase contract		—			34,752			—			34,752			—
Other costs⁽¹⁾		1,427			1,428			(551	)		5,662			5,339
Total Non-GAAP Adjustments	$	20,457		$	58,638		$	31,952		$	102,395		$	66,036

Non-GAAP Profit before Tax	$	12,855		$	15,555		$	68,323		$	35,137		$	243,582

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, and income (loss) in earnings of equity investments.

*Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Income Tax (Benefit) Provision	$	(803	)	$	(9,470	)	$	2,969		$	(9,233	)	$	17,584
GAAP effective tax rate		10.6	%		22.0	%		8.2	%		13.7	%		9.9	%

Tax effect of adjustments to GAAP results		398			10,071			3,748			10,074			10,128

Non-GAAP Income Tax (Benefit) Provision	$	(405	)	$	601		$	6,717		$	841		$	27,712
Non-GAAP effective tax rate		(3.2	)%		3.9	%		9.8	%		2.4	%		11.4	%

*Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.⁽¹⁾	$	(6,860	)	$	(33,675	)	$	33,345		$	(58,210	)	$	159,812
GAAP Basic weighted average common shares		184,011,189			189,182,850			192,724,541			188,886,583			192,384,315
GAAP Diluted weighted average common shares		184,011,189			189,182,850			194,570,380			188,886,583			194,925,040
GAAP Basic (Loss) Earnings per Share	$	(0.04	)	$	(0.18	)	$	0.17		$	(0.31	)	$	0.83
GAAP Diluted (Loss) Earnings per Share	$	(0.04	)	$	(0.18	)	$	0.17		$	(0.31	)	$	0.82

Transaction-related costs		486			3,295			10,409			5,623			15,294
Transaction-related interest		192			141			162			1,042			162
Purchased intangible amortization		5,410			5,410			4,143			16,230			5,533
Restructuring costs		2,354			2,067			6,869			6,835			6,869
Stock-based compensation		10,588			11,545			10,920			32,251			32,839
Loss on change in fair value of forward repurchase contract		—			34,752			—			34,752			—
Other costs⁽²⁾		1,427			1,428			(551	)		5,662			5,339
Total Non-GAAP Adjustments		20,457			58,638			31,952			102,395			66,036
Tax effect of adjustments to GAAP results⁽³⁾		(398	)		(10,071	)		(3,748	)		(10,074	)		(10,128	)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.	$	13,199		$	14,892		$	61,549		$	34,111		$	215,720
Basic weighted average common shares		184,011,189			189,182,850			192,724,541			188,886,583			192,384,315
Diluted weighted average common shares		184,485,792			189,710,595			194,570,380			189,577,693			194,925,040
Non-GAAP Basic Earnings per Share	$	0.07		$	0.08		$	0.32		$	0.18		$	1.12
Non-GAAP Diluted Earnings per Share	$	0.07		$	0.08		$	0.32		$	0.18		$	1.11

(1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(3) To calculate the tax effect of adjustments to GAAP results, the Company considers each non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.

*Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales*

	Three-Month Period Ended									Nine-Month Period Ended
	December 27, 2024			September 27, 2024			December 29, 2023			December 27, 2024			December 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Cash Flow	$	(8,183	)	$	15,547		$	76,558		$	41,560		$	168,951
GAAP Operating Cash Flow (% of net sales)		-4.6	%		8.3	%		30.0	%		7.8	%		20.9	%
Non-GAAP adjustments
Purchases of property, plant and equipment		(13,615	)		(9,972	)		(34,399	)		(34,564	)		(110,500	)

Non-GAAP Free Cash Flow	$	(21,798	)	$	5,575		$	42,159		$	6,996		$	58,451
Non-GAAP Free Cash Flow (% of net sales)		(12.3	)%		3.0	%		16.5	%		1.3	%		7.2	%

Investor Contact:

Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
[email protected]

January 30, 2025 7:04 am

Mobileye Releases Fourth-Quarter and Full-Year 2024 Results and Provides Business Overview

Mobileye Releases Fourth-Quarter and Full-Year 2024 Results and Provides Business Overview

Revenue decreased 23% year over year to $490 million in the fourth quarter. Full-year financial guidance implies a return to revenue growth in 2025.
Diluted EPS (GAAP) was $(0.09) and Adjusted Diluted EPS (Non-GAAP) was $0.13 in the fourth quarter of 2024.
Generated net cash from operating activities of $400 million in the year ended December 28, 2024, slightly higher than full-year 2023. Our balance sheet is strong with $1.4 billion of cash and cash equivalents and zero debt as of December 28, 2024.
Continued growth in RFQ-stage advanced product development programs positions us well to substantially increase long-term growth visibility over the course of 2025.

JERUSALEM–(BUSINESS WIRE)–
Mobileye Global Inc. (Nasdaq: MBLY) (“Mobileye”) today released its financial results for the three months and for the year ended December 28, 2024.

“I’m proud of our accomplishments in 2024. Against a challenging backdrop, we executed dozens of production program launches on-time for our customers and shipped the 200 millionth EyeQ^TM system in our history. In 2024, while generating $400 million of operating cash flow, we also made outstanding progress on the technology pillars that support our SuperVision, Chauffeur, and Drive advanced solutions that are driving the largest opportunity pipeline in our history,” said Mobileye President and CEO Prof. Amnon Shashua. “Our autonomous driving system architecture is built to optimize both precision and scalability, supporting a true revolution of transportation. We look forward to a robust cadence of EyeQ6 High-based product launches beginning in 2026.”

Fourth Quarter and Full-Year 2024 Business Highlights

We delivered another year of impressive product execution in 2024. On the core business we launched ADAS programs into 313 car models and managed an additional 80 active ADAS development projects. On the technology front, we achieved major progress across the pillars that support our portfolio of advanced solutions, including: 1) EyeQ6 High System-on-Chip (SoC) is on-track for series production launch and achieves 10x the frame-per-second processing in comparison to EyeQ5 High with high efficiency; 2) imaging radar (launching 2nd half 2025) B-samples achieved outstanding performance across hundreds of OEM tests; and, 3) our compound AI system software infrastructure inside the EyeQ6 High-based family of ECUs delivers line-of-sight to approximately 100x the camera-only mean-time-between-failure as compared to EyeQ5 High. Most importantly, within our advanced portfolio, we progressed significantly on the SuperVision^TM, Chauffeur^TM, and Drive^TMprojects for VW Group, achieving milestones on the path to start-of-production.

Business development activity was substantial in 2024. We won well-above 95% of the ADAS programs awarded by our top customers. On the advanced product side, decision-making timing was slower than expected, but the number of engagements significantly expanded and we gained additional clarity on future segmentation and volume expectations of premium ADAS and AV products. We have built an unprecedented set of potential opportunities across 9 of our top 10 customers, as well as others, with RFQ-stage development programs representing 25 million future units for Surround ADAS, 8-16 million future units for SuperVision, and 1-3 million future units for Chauffeur. This represents more than 10 times our current awarded business for these solutions and offers the potential for meaningful business expansion during 2025¹.

During the second half of 2024 we detailed our Compound AI System software and hardware infrastructure approach, which we have high confidence will support the optimized combination of precision and recall required to enable safe and useful eyes-off products. This included an in-depth overview of our safety methodology that comprehensively addresses all aspects of a self-driving system’s safe operation.

Fourth Quarter 2024 Financial Summary and Key Highlights (Unaudited)

GAAP
U.S. dollars in millions	Q4 2024			Q4 2023			% Y/Y
Revenue	$	490		$	637		(23%)
Gross Profit	$	241		$	344		(30%)
Gross Margin		49	%		54	%	(482)bps
Operating Income	$	(86	)	$	73		*NM
Operating Margin		(18	%)		11	%	*NM
Net Income	$	(71	)	$	63		*NM
EPS – Basic	$	(0.09	)	$	0.08		*NM
EPS – Diluted	$	(0.09	)	$	0.08		*NM

*Not Meaningful


Non-GAAP
U.S. dollars in millions	Q4 2024			Q4 2023			% Y/Y
Revenue	$	490		$	637		(23%)
Adjusted Gross Profit	$	336		$	439		(23%)
Adjusted Gross Margin		69	%		69	%	(35)bps
Adjusted Operating Income	$	101		$	247		(59%)
Adjusted Operating Margin		21	%		39	%	(1,816)bps
Adjusted Net Income	$	107		$	228		(53%)
Adjusted EPS – Basic	$	0.13		$	0.28		(54%)
Adjusted EPS – Diluted	$	0.13		$	0.28		(53%)

Revenue of $490 million decreased 23% as compared to the fourth quarter of 2023, primarily due to a 20% reduction in EyeQ SoC volumes. This was primarily related to the previously disclosed meaningful build-up of inventory at our Tier 1 customers, including in the fourth quarter of 2023.

Average System Price² was $50.0 in fourth quarter 2024, compared to $52.7 in the prior year period primarily due to lower percentage of SuperVision related revenue as compared to the fourth quarter of 2023.

Gross Margin decreased by nearly 5 percentage points in the fourth quarter of 2024 as compared to the prior year period. The decrease was primarily due to the impact of the cost attributable to amortization of intangible assets which was similar to the prior year but on a lower revenue base.

Adjusted Gross Margin (a non-GAAP measure) in the fourth quarter of 2024 was similar to the prior year period. The positive gross margin impact of a lower percentage of SuperVision related revenue was offset by the modestly negative impact of EyeQ-related mix effects.

Operating Margin of (18%) decreased by 29 percentage points in the fourth quarter of 2024 as compared to the prior year period, due to higher operating expenses than the prior year period on a lower revenue base, as well as the gross margin decrease described above.

Adjusted Operating Margin (a non-GAAP measure) of 21% decreased by 18 percentage points in the fourth quarter of 2024 as compared to the prior year period, due to higher operating expenses on a lower revenue base.

Operating cash flow for the year ended December 28, 2024 was $400 million. Cash used in purchases of property and equipment was $81 million for that same period.

¹ These expectations are based on estimated volumes, which are based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. Further, achievement of a design win is an estimate only and subject to multiple factors, many of which are outside of Mobileye’s control. Any statement on the timing of a design win is an estimate only and subject to change. See the disclaimer under the heading “Forward-Looking Statements” below for important limitations applicable to these estimates.

² Average System Price is calculated as the sum of revenue related to EyeQ™ and SuperVision systems, divided by the number of systems shipped.

Financial Guidance for the 2025 Fiscal Year

The following information reflects Mobileye’s expectations for Revenue, Operating Loss and Adjusted Operating Income results for the year ending December 27, 2025.

We believe Adjusted Operating Income (a non-GAAP metric) is an appropriate metric as it excludes significant non-cash expenses including: 1) Amortization charges related to intangible assets consisting of developed technology, customer relationships and brands as a result of Intel’s acquisition of Mobileye in 2017 and the acquisition of Moovit in 2020; 2) Share-based compensation expense; and 3) Goodwill impairment. These statements represent forward-looking information and may not represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this release.

	Full Year 2025
U.S. dollars in millions	Low			High
Revenue	$	1,690		$	1,810
Operating Loss	$	(574	)	$	(489	)
Amortization of acquired intangible assets	$	443		$	443
Share-based compensation expense	$	306		$	306
Adjusted Operating Income	$	175		$	260

Earnings Conference Call Webcast Information

Mobileye will host a conference call today, January 30, 2025, at 8:00am ET (3:00pm IT) to review its results and provide a general business update. The conference call will be accessible live via a webcast on Mobileye’s investor relations site, which can be found at ir.mobileye.com, and a replay of the webcast will be made available shortly after the event’s conclusion.

Non-GAAP Financial Measures

This press release contains Adjusted Gross Profit and Margin, Adjusted Operating Income and Margin, Adjusted Net Income and Adjusted EPS, which are financial measures not presented in accordance with GAAP. We define Adjusted Gross Profit as gross profit presented in accordance with GAAP, excluding amortization of acquisition related intangibles and share-based compensation expense. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by total revenue. We define Adjusted Operating Income (Loss) as operating loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expenses and impairment of goodwill. Operating margin is calculated as Operating Income (Loss) divided by total revenue, and Adjusted Operating Margin is calculated as Adjusted Operating Income divided by total revenue. We define Adjusted Net Income as net loss presented in accordance with GAAP, adjusted to exclude amortization of acquisition related intangibles, share-based compensation expense, impairment of goodwill, as well as the related income tax effects. Income tax effects have been calculated using the applicable statutory tax rate for each adjustment taking into consideration the associated valuation allowance impacts. Adjusted Basic EPS is calculated by dividing Adjusted Net Income for the period by the weighted-average number of common shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive.

We use such non-GAAP financial measures to make strategic decisions, establish business plans and forecasts, identify trends affecting our business, and evaluate performance. For example, we use these non-GAAP financial measures to assess our pricing and sourcing strategy, in the preparation of our annual operating budget, and as a measure of our operating performance. We believe that these non-GAAP financial measures, when taken collectively, may be helpful to investors because they allow for greater transparency into what measures our management uses in operating our business and measuring our performance, and enable comparison of financial trends and results between periods where items may vary independent of business performance. The non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

About Mobileye Global Inc.

Mobileye (Nasdaq: MBLY) leads the mobility revolution with its autonomous driving and driver-assistance technologies, harnessing world-renowned expertise in computer vision, artificial intelligence, mapping, and data analysis. Since its founding in 1999, Mobileye has pioneered such groundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety (RSS). These technologies are driving the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions, powering industry-leading advanced driver-assistance systems and delivering valuable intelligence to optimize mobility infrastructure. To date, more than 200 million vehicles worldwide have been built with Mobileye technology inside. In 2022 Mobileye listed as an independent company separate from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.

“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of their respective owners.

Forward-Looking Statements

Mobileye’s business outlook, guidance and other statements in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including Mobileye’s 2025 full-year guidance, projected future revenue and descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” or the negative of these terms, and other similar expressions, although not all forward-looking statements contain these words. We base these forward-looking statements or projections, including Mobileye’s full-year guidance, on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances and at such time. You should understand that these statements are not guarantees of performance or results. The forward-looking statements and projections are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections. Although we believe that these forward-looking statements and projections are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements and projections.

Important factors that may materially affect such forward-looking statements and projections include the following: future business, social and environmental performance, goals and measures; our anticipated growth prospects and trends in markets and industries relevant to our business; business and investment plans; expectations about our ability to maintain or enhance our leadership position in the markets in which we participate; future consumer demand and behavior, including expectations about excess inventory utilization by customers; our ability to effectively compete in the markets in which we operate; future products and technology, and the expected availability and benefits of such products and technology; development of regulatory frameworks for current and future technology; changes in regulation and trade policy, including increased tariffs, in regions in which we operate, including the US, Europe and China; projected cost and pricing trends; future production capacity and product supply; potential future benefits and competitive advantages associated with our technologies and architecture and the data we have accumulated; the future purchase, use and availability of products, components and services supplied by third parties, including third-party IP and manufacturing services; uncertain events or assumptions, including statements relating to our estimated vehicle production and market opportunity, potential production volumes associated with design wins and other characterizations of future events or circumstances; effects of the COVID-19 pandemic and responses to future pandemics; adverse conditions in Israel, including as a result of war and geopolitical conflict, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; availability, uses, sufficiency and cost of capital and capital resources, including expected returns to stockholders such as dividends, and the expected timing of future dividends; tax- and accounting-related expectations.

The estimates included herein are based on projections of future production volumes that were provided by our current and prospective OEMs at the time of sourcing the design wins for the models related to those design wins. For the purpose of these estimates, we estimated sales prices based on our management’s estimates for the applicable product bundles and periods. Achieving design wins is not a guarantee of revenue, and our sales may not correlate with the achievement of additional design wins. Moreover, our pricing estimates are made at the time of a request for quotation by an OEM (in the case of estimates related to contracted customers), so that worsening market or other conditions between the time of a request for quotation and an order for our solutions may require us to sell our solutions for a lower price than we initial expected. These estimates may deviate from actual production volumes and sale prices (which may be higher or lower than the estimates) and the amounts included for prospective but uncontracted production volumes may never be achieved. Accordingly, these estimations are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements or projections.

Detailed information regarding these and other factors that could affect Mobileye’s business and results is included in Mobileye’s SEC filings, including the company’s Annual Report on Form 10-K for the year ended December 30, 2023, particularly in the section entitled “Item 1A. Risk Factors”. Copies of these filings may be obtained by visiting our Investor Relations website at ir.mobileye.com or the SEC’s website at www.sec.gov.



Full Year 2024 Financial Results Mobileye Global Inc. *Consolidated Statements of Operations (unaudited)*


	Three Months Ended						Year Ended
U.S. dollars in millions, except share and per share amounts	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
Revenue	$	490		$	637		$	1,654		$	2,079
Cost of revenue		249			293			913			1,032
Gross profit		241			344			741			1,047
Research and development, net		281			225			1,083			889
Sales and marketing		28			28			118			118
General and administrative		18			18			70			73
Goodwill impairment		—			—			2,695			—
Total operating expenses		327			271			3,966			1,080
Operating income (loss)		(86	)		73			(3,225	)		(33	)
Other financial income (expense), net		18			11			62			49
Income (loss) before income taxes		(68	)		84			(3,163	)		16
Benefit (provision) for income taxes		(3	)		(21	)		73			(43	)
Net income (loss)	$	(71	)	$	63		$	(3,090	)	$	(27	)

Earnings (loss) per attributed to Class A and Class B stockholders:
Basic and diluted	$	(0.09	)	$	0.08		$	(3.82	)	$	(0.03	)
Weighted-average number of shares used in computation of earnings (loss) per share attributed to Class A and Class B stockholders (in millions):
Basic		811			806			809			805
Diluted		811			812			809			805


Mobileye Global Inc. *Consolidated Balance sheets (unaudited)*


U.S. dollars in millions	December 28, 2024		December 30, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,426	$	1,212
Trade accounts receivable, net		212		357
Inventories		415		391
Other current assets		121		106
Total current assets		2,174		2,066
Non-current assets:
Property and equipment, net		458		447
Intangible assets, net		1,609		2,053
Goodwill		8,200		10,895
Other long-term assets		138		116
Total non-current assets		10,405		13,511
TOTAL ASSETS	$	12,579	$	15,577
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	190	$	229
Employee related accrued expenses		105		87
Related party payable		4		39
Other current liabilities		34		48
Total current liabilities		333		403
Non-current liabilities:
Long-term employee benefits		62		56
Deferred tax liabilities		47		148
Other long-term liabilities		50		46
Total non-current liabilities		159		250
TOTAL LIABILITIES	$	492	$	653
TOTAL EQUITY		12,087		14,924
TOTAL LIABILITIES AND EQUITY	$	12,579	$	15,577


Mobileye Global Inc. *Consolidated Cash Flows (unaudited)*


	Year Ended
U.S. dollars in millions	December 28, 2024			December 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(3,090	)	$	(27	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment		62			39
Share-based compensation		279			252
Amortization of intangible assets		444			474
Goodwill impairment		2,695			—
Exchange rate differences on cash and cash equivalents		2			5
Deferred income taxes		(101	)		(14	)
Interest with related party, net		—			16
(Gains) losses on equity and debt investments, net		(3	)		—
Other		—			1
Changes in operating assets and liabilities:
Decrease (increase) in trade accounts receivables		124			(88	)
Decrease (increase) in other current assets		15			8
Decrease (increase) in inventories		(24	)		(278	)
Increase (decrease) in accounts payable, accrued expenses and related party payable		(29	)		10
Increase (decrease) in employee-related accrued expenses and long term benefits		25			(1	)
Increase (decrease) in other current liabilities		6			(7	)
Decrease (increase) in other long term assets		(11	)		(3	)
Increase (decrease) in other long term liabilities		6			7
Net cash provided by operating activities		400			394
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(81	)		(98	)
Purchases of debt and equity investments		(62	)		—
Maturities and sales of debt and equity investments		23			—
Net cash provided by (used in) investing activities		(120	)		(98	)
CASH FLOWS FROM FINANCING ACTIVITIES
Share-based compensation recharge		(66	)		(100	)
Net cash provided by (used in) financing activities		(66	)		(100	)
Effect of foreign exchange rate changes on cash and cash equivalents		(2	)		(5	)
Increase in cash, cash equivalents and restricted cash		212			191
Balance of cash, cash equivalents and restricted cash, at beginning of year		1,226			1,035
Balance of cash, cash equivalents and restricted cash, at end of year	$	1,438		$	1,226


Mobileye Global Inc. *Reconciliation of GAAP Gross Profit and Margin to Non-GAAP Adjusted Gross Profit and Margin³ (unaudited)*


	Three Months Ended						Year Ended
U.S. dollars in millions	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Gross Profit	$	241	49%	$	344	54%	$	741	45%	$	1,047	50%
Add: Amortization of acquired intangible assets		94	19%		95	15%		376	23%		406	20%
Add: Share-based compensation expense		1	—%		—	—%		2	—%		2	—%
Adjusted Gross Profit	$	336	69%	$	439	69%	$	1,119	68%	$	1,455	70%

³Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue


Mobileye Global Inc. *Reconciliation of GAAP Operating Income and Margin to Non-GAAP Adjusted Operating Income and Margin⁴ (unaudited)*


	Three Months Ended						Year Ended
U.S. dollars in millions	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Operating Income (Loss)	$	(86)	(18%)	$	73	11%	$	(3,225)	(195%)	$	(33)	(2%)
Add: Amortization of acquired intangible assets		111	23%		112	18%		444	27%		474	23%
Add: Share-based compensation expense		76	16%		62	10%		279	17%		252	12%
Add: Goodwill impairment		—	—%		—	—%		2,695	163%		—	—%
Adjusted Operating Income	$	101	21%	$	247	39%	$	193	12%	$	693	33%

⁴Adjusted operating margin is calculated as adjusted operating income as a percentage of revenue


Mobileye Global Inc. *Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (unaudited)*


	Three Months Ended						Year Ended
U.S. dollars in millions	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue	Amount		% of Revenue
Net Income (Loss)	$	(71)	(14%)	$	63	10%	$	(3,090)	(187%)	$	(27)	(1%)
Add: Amortization of acquired intangible assets		111	23%		112	18%		444	27%		474	23%
Add: Share-based compensation expense		76	16%		62	10%		279	17%		252	12%
Add: Goodwill impairment		—	—%		—	—%		2,695	163%		—	—%
Less: Income tax effects		(9)	(2%)		(9)	(1%)		(123)	(7%)		(40)	(2%)
Adjusted Net Income	$	107	22%	$	228	36%	$	205	12%	$	659	32%


*Supplemental Information – Average System Price*


	Q4 2023		Q1 2024		Q2 2024		Q3 2024		Q4 2024
EyeQ and SuperVision revenue (U.S. dollars in millions)	$	611	$	219	$	413	$	457	$	464
Number of systems shipped (in millions)		11.6		3.6		7.6		8.6		9.3
Average system price (U.S. dollars)	$	52.7	$	61.0	$	54.4	$	53.3	$	50.0

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130605548/en/

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Investor Relations

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Media Relations

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January 30, 2025 7:04 am

Amplify ETFs Declares January Income Distributions for its Income ETFs

CHICAGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — Amplify ETFs announces January income distributions for its income ETFs.

ETF Name	Ticker	Amount per Share	Ex-Date	Record Date	Payable Date
Amplify Samsung SOFR ETF	SOFR	$0.36008	1/30/25	1/30/25	1/31/25
Amplify Bloomberg U.S. Treasury Target High Income ETF	TLTP	$0.23690	1/30/25	1/30/25	1/31/25
Amplify CWP Growth & Income ETF	QDVO	$0.19337	1/30/25	1/30/25	1/31/25
Amplify Cash Flow High Income ETF	HCOW	$0.17300	1/30/25	1/30/25	1/31/25
Amplify CWP Enhanced Dividend Income ETF	DIVO	$0.16940	1/30/25	1/30/25	1/31/25
Amplify CWP International Enhanced Dividend Income ETF	IDVO	$0.15595	1/30/25	1/30/25	1/31/25
Amplify Natural Resources Dividend Income ETF	NDIV	$0.13429	1/30/25	1/30/25	1/31/25
Amplify High Income ETF	YYY	$0.12000	1/30/25	1/30/25	1/31/25

About Amplify ETFs

Amplify ETFs, sponsored by Amplify Investments, has over $10 billion in assets across its suite of ETFs (as of 1/08/2025). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.

Sales Contact:

Amplify ETFs
855-267-3837
[email protected]

Media Contacts:

Gregory FCA for Amplify ETFs
Kerry Davis
610-228-2098
[email protected]

This information is not intended to provide and should not be relied upon for accounting, legal or tax advice, or investment recommendations. To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. There is no guarantee that distributions will be made in the future. Your own trading will also generate tax consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional or financial adviser for more information regarding your tax situation.

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in Amplify Funds’ statutory and summary prospectuses, which may be obtained at

AmplifyETFs.com

. Read the prospectuses carefully before investing.

Investing involves risk, including the possible loss of principal.

Amplify ETFs are distributed by Foreside Services, LLC.

January 30, 2025 7:04 am

Surmodics Reports First Quarter of Fiscal Year 2025 Financial Results

Surmodics Reports First Quarter of Fiscal Year 2025 Financial Results

EDEN PRAIRIE, Minn.–(BUSINESS WIRE)–
Surmodics, Inc. (Nasdaq: SRDX), a leading provider of medical device and in vitro diagnostic technologies to the healthcare industry, today reported financial results for its first quarter ended December 31, 2024.

First Quarter Fiscal 2025 Financial Summary

Total Revenue of $29.9 million, a decrease of 2% year-over-year
Total Revenue excluding SurVeil™ drug-coated balloon (“DCB”) license fee revenue⁽¹⁾ of $28.7 million, a decrease of 3% year-over-year
GAAP net loss of $(3.7) million, compared to $(0.8) million in the prior-year period
Adjusted EBITDA⁽²⁾ of $3.6 million, compared to $3.9 million in the prior-year period

First Quarter and Recent Business Highlights

On May 29, 2024, Surmodics announced it had entered into a definitive agreement to be acquired by an affiliate of GTCR LLC (“GTCR”) for $43.00 per share in cash, representing an approximate equity value of $627 million (the “Merger”). The Merger was approved by Surmodics’ shareholders at a special meeting on August 13, 2024. On the same date, the company announced that it and an affiliate of GTCR each received a request for additional information and documentary materials (a “Second Request”) from the U.S. Federal Trade Commission (“FTC”) in connection with the Merger. The Merger remains subject to the expiration or termination of a voluntary agreement with the FTC not to consummate the Merger for a period of time following substantial compliance with the Second Request. The company and GTCR remain engaged with the FTC with the goal of consummating the Merger in accordance with definitive agreement for the Merger in the company’s second fiscal quarter ending March 31, 2025 if all the remaining closing conditions are satisfied.
On October 1, 2024, Surmodics announced the receipt of U.S. Food and Drug Administration (“FDA”) 510(k) clearance for its Pounce™ XL Thrombectomy System, which will allow for clot removal in larger peripheral arteries (5.5 mm to 10 mm in diameter), expanding the addressable market and clinical utility of the Pounce Thrombectomy Platform.
On October 30, 2024, Surmodics announced early results from its PROWL registry study of real-world limb ischemia patients treated with Surmodics’ Pounce Thrombectomy System. Early subset analysis of 60 patients with acute, subacute, or chronic symptoms of limb ischemia demonstrated 96.8% procedural flow restoration, with 81.7% of subjects not receiving additional thromboemboli removal treatment post Pounce System use.

“We were pleased with the efforts of our team during first quarter of fiscal 2025, which enabled Surmodics to deliver strong growth in revenue from both our medical device performance coatings royalties and sales of our Pounce thrombectomy platforms,” said Gary Maharaj, President and CEO of Surmodics, Inc. “This performance helped to offset the year-over-year decrease in SurVeil DCB revenue, which was expected given the initial stocking shipments made in the prior year period, as well as the impact of order timing in our In Vitro Diagnostics business.”

Mr. Maharaj continued, “I would like to recognize the efforts of the entire Surmodics team this past quarter. Their commitment to execution, and dedication to serving the needs of both our customers and their patients, made our financial performance and operational progress possible, as we continued our efforts in tandem during the first quarter to substantially comply with the FTC’s Second Request.”

First Quarter Fiscal 2025 Financial Results


	Three Months Ended December 31,				Increase (Decrease)
	2024		2023		$			%
Revenue:
Medical Device	$	23,281	$	23,545	$	(264	)		(1	)%
In Vitro Diagnostics		6,641		7,007		(366	)		(5	)%
Total revenue	$	29,922	$	30,552	$	(630	)		(2	)%

Total revenue decreased $0.6 million, or 2%, to $29.9 million, compared to $30.6 million in the first quarter of fiscal 2024. Excluding SurVeil DCB license fee revenue,⁽¹⁾ total revenue decreased $0.9 million, or 3%, to $28.7 million, compared to $29.6 million in the first quarter of fiscal 2024.

Medical Device revenue decreased $0.3 million, or 1%, to $23.3 million, compared to $23.5 million in the first quarter of fiscal 2024. Medical Device revenue included a total of $1.3 million in SurVeil DCB license fee revenue, compared to $1.0 million in the first quarter of fiscal 2024. Excluding SurVeil DCB license fee revenue,⁽¹⁾ Medical Device revenue decreased $0.5 million, or 2%, to $22.0 million, compared to $22.6 million in the first quarter of fiscal 2024, driven by product sales. Medical Device product sales decreased $1.8 million, or 15%, to $10.1 million, compared to $12.0 million in the first quarter of fiscal 2024, driven primarily by a decrease in SurVeil DCB commercial revenue as the year-ago-period benefited from the initial stocking order shipments of the SurVeil DCB to Abbott, the company’s exclusive distribution partner for the product. The year-over-year decrease in SurVeil DCB revenue was partially offset by growth in performance coatings royalty revenue and sales of the company’s Pounce thrombectomy device platforms. Medical Device performance coating royalties and license fee revenue increased $1.2 million, or 14%, to $9.4 million, compared to $8.2 million in the first quarter of fiscal 2024, driven primarily by continued growth in customer utilization of Surmodics’ Serene™ hydrophilic coating . In Vitro Diagnostics (“IVD”) revenue decreased $0.4 million, or 5%, to $6.6 million, compared to $7.0 million in the first quarter of fiscal 2024, driven by unfavorable order timing for distributed antigen and diagnostic test chemical components.

Product gross profit⁽³⁾ decreased $0.9 million, or 9%, to $9.1 million, compared to $10.0 million in the first quarter of fiscal 2024. Product gross margin⁽³⁾was 55.1%, compared to 53.2% in the first quarter of fiscal 2024. The increase in product gross margin was primarily driven by favorable product mix of higher margin products.

Operating costs and expenses, excluding product costs, increased $2.9 million, or 13%, to $25.0 million, compared to $22.1 million in the first quarter of fiscal 2024. The increase was primarily driven by $2.3 million of merger-related charges incurred in the first quarter of fiscal 2025 associated with the pending acquisition of Surmodics by GTCR and our response to the FTC’s Second Request. These costs were reported in selling, general and administrative expense.

GAAP net loss was $(3.7) million, or $(0.26) per diluted share, compared to $(0.8) million, or $(0.06) per diluted share in the first quarter of fiscal 2024. Non-GAAP net loss⁽⁴⁾ was $(0.6) million, or $(0.04) per diluted share,⁽⁴⁾ compared to Non-GAAP net income⁽⁴⁾ of $0.0 million, or $0.00 per diluted share⁽⁴⁾in the first quarter of fiscal 2024.

Adjusted EBITDA⁽²⁾ was $3.6 million, compared to $3.9 million in the first quarter of fiscal 2024.

Balance Sheet Summary

As of December 31, 2024, Surmodics reported $30.1 million in cash and investments, $5.0 million in outstanding borrowings on its revolving credit facility, and $25.0 million in outstanding borrowings on its term loan facility. Surmodics reported $7.9 million in cash provided by operating activities and $0.3 million in capital expenditures in the first quarter of fiscal 2025. In the first quarter of fiscal 2025, cash and investments decreased by $10.0 million, which consisted of the change in the combined balance of cash and cash equivalents and investments in available-for-sale securities from September 30, 2024 to December 31, 2024. Our first quarter of the fiscal year historically requires a higher use of cash to fund working capital needs, such as annual employee bonus payments and annual prepaid insurance premiums.

Fiscal Year 2025 Financial Guidance

As previously communicated, Surmodics is not providing financial guidance for fiscal 2025 in light of the pending acquisition by GTCR.

Conference Call

Given the pending acquisition by GTCR, Surmodics will not be hosting a live webcast and conference call to discuss first quarter and fiscal 2025 financial results and accomplishments.

About the Pending Acquisition of Surmodics by GTCR

On May 29, 2024, Surmodics announced it had entered into a definitive agreement to be acquired by GTCR, a leading private equity firm with a long track record of investment expertise across healthcare and healthcare technology. Under the terms of the agreement, an affiliate of GTCR will acquire all outstanding shares of Surmodics (the “Merger”). Surmodics shareholders will receive $43.00 per share in cash, for a total equity valuation of approximately $627 million. The transaction will be financed through a combination of committed equity from funds affiliated with GTCR and committed debt financing. Upon completion of the transaction, Surmodics will be a privately held company and its common stock will no longer be listed on The Nasdaq Stock Exchange.

The Merger was approved by Surmodics’ shareholders at a special meeting on August 13, 2024. On the same date, the company announced that it and an affiliate of GTCR each received a Second Request. The company and GTCR have since substantially complied with the Second Requests. The Merger remains subject to the expiration or termination of a voluntary agreement with the FTC not to consummate the Merger for a period of time following substantial compliance with the Second Request. The company and GTCR remain engaged with the FTC with the goal of consummating the Merger in accordance with the definitive agreement for the Merger in the company’s second fiscal quarter ending March 31, 2025 if all the remaining closing conditions are satisfied.

About Surmodics, Inc.

Surmodics, Inc. is a leading provider of performance coating technologies for intravascular medical devices and chemical and biological components for in vitro diagnostic immunoassay tests and microarrays. Surmodics also develops and commercializes highly differentiated vascular intervention medical devices that are designed to address unmet clinical needs and engineered to the most demanding requirements. This key growth strategy leverages the combination of the company’s expertise in proprietary surface modification and drug-delivery coating technologies, along with its device design, development and manufacturing capabilities. The company’s mission is to improve the detection and treatment of disease. Surmodics is headquartered in Eden Prairie, Minnesota. For more information, visit www.surmodics.com. The content of Surmodics’ website is not part of this press release or part of any filings that the company makes with the SEC.

Safe Harbor for Forward-looking Statements

This press release, and disclosures related to it, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements regarding: the proposed Merger, including the timing of the goal for consummating the same, the expected financing of the Merger, and the expectation that the company will be privately held after the Merger; key growth strategy; expectations about expanding the addressable market and clinical utility of the Pounce Venous Thrombectomy System, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including, without limitation: (1) risks related to the consummation of the proposed Merger, including the risks that (a) the Merger may not be consummated within the anticipated time period, or at all, (b) the parties may fail to secure the termination or expiration of any waiting period applicable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), (c) other conditions to the consummation of the Merger under the Merger Agreement may not be satisfied, including the absence of any injunction or other legal restraint or prohibition that would prevent or prohibit the consummation of the Merger, such as the voluntary agreement being in effect with the U.S. Federal Trade Commission (d) all or part of Parent’s financing may not become available, and (e) the significant limitations on remedies contained in the Merger Agreement may limit or entirely prevent the company from specifically enforcing Parent’s obligations under the Merger Agreement or recovering damages for any breach by Parent; (2) the effects that any termination of the Merger Agreement may have on the company or its business, including the risks that (a) the company’s stock price may decline significantly if the Merger is not completed, (b) the Merger Agreement may be terminated in circumstances requiring the company to pay the buyer a termination fee of $20,380,000, or (c) the circumstances of the termination, including the possible imposition of a 12-month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the Merger; (3) the effects that the announcement or pendency of the Merger may have on the company and its business, including the risks that as a result (a) the company’s business, operating results or stock price may suffer, (b) the company’s current plans and operations may be disrupted, (c) the company’s ability to retain or recruit key employees may be adversely affected, (d) the company’s business relationships (including, customers, franchisees and suppliers) may be adversely affected, or (e) the company’s management’s or employees’ attention may be diverted from other important matters; (4) the effect of limitations that the Merger Agreement places on the company’s ability to operate its business, return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including proceedings related to the Merger and instituted against the company and others; (6) the risk that the Merger and related transactions may involve unexpected costs, liabilities or delays; (7) our ability to successfully commercialize our SurVeil DCB (including realization of the full potential benefits of our agreement with Abbott), Sundance™ DCB, and other proprietary products; (8) our reliance on third parties (including our customers and licensees) and their failure to successfully develop, obtain regulatory approval for, market, and sell products incorporating our technologies; (9) possible adverse market conditions and possible adverse impacts on our cash flows; (10) our ability to successfully and profitably produce and commercialize our vascular intervention products; (11) supply chain constraints; (12) whether our operating expenses are effective in generating profitable revenues; (13) the factors identified under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and subsequent SEC filings. These reports are available in the Investors section of our website at https://surmodics.gcs-web.com and at the SEC website at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Surmodics is reporting non-GAAP financial results including total revenue excluding SurVeil DCB license fee revenue, Medical Device revenue excluding SurVeil DCB license fee revenue, EBITDA and Adjusted EBITDA, non-GAAP operating income (loss), non-GAAP operating income (loss) percentage, non-GAAP income (loss) before income taxes, non-GAAP net (loss) income, and non-GAAP (loss) income per diluted share. We believe that these non-GAAP measures, when read in conjunction with the company’s GAAP financial statements, provide meaningful insight into our operating performance excluding certain event-specific matters, and provide an alternative perspective of our results of operations. We use non-GAAP measures, including those set forth in this release, to assess our operating performance and to determine payouts under our executive compensation programs. We believe that presentation of certain non-GAAP measures allows investors to review our results of operations from the same perspective as management and our board of directors and facilitates comparisons of our current results of operations. The method we use to produce non-GAAP results is not in accordance with GAAP and may differ from the methods used by other companies. Non-GAAP results should not be regarded as a substitute for corresponding GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact on our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with both our financial statements prepared in accordance with GAAP and the reconciliation of the supplemental non-GAAP financial measures to the comparable GAAP results provided for the specific periods presented, which are attached to this release.


Surmodics, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited)

	Three Months Ended December 31,
	2024			2023
Revenue:
Product sales	$	16,548		$	18,827
Royalties and license fees		10,634			9,179
Research, development and other		2,740			2,546
Total revenue		29,922			30,552
Operating costs and expenses:
Product costs		7,425			8,803
Research and development		8,941			8,664
Selling, general and administrative		15,174			12,537
Acquired intangible asset amortization		863			870
Total operating costs and expenses		32,403			30,874
Operating (loss) income		(2,481	)		(322	)
Other expense, net		(463	)		(402	)
(Loss) income before income taxes		(2,944	)		(724	)
Income tax expense		(707	)		(62	)
Net (loss) income	$	(3,651	)	$	(786	)

Basic net (loss) income per share	$	(0.26	)	$	(0.06	)
Diluted net (loss) income per share	$	(0.26	)	$	(0.06	)

Weighted average number of shares outstanding:
Basic		14,231			14,102
Diluted		14,231			14,102


Surmodics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)

	December 31,		September 30,
	2024		2024
Assets	(Unaudited)		(See Note)
Current Assets:
Cash and cash equivalents	$	30,145	$	36,115
Available-for-sale securities		—		3,997
Accounts receivable, net		12,559		13,292
Contract assets		9,879		9,872
Inventories		15,261		15,168
Prepaids and other		4,005		2,860
Total Current Assets		71,849		81,304
Property and equipment, net		23,805		24,956
Intangible assets, net		21,271		23,569
Goodwill		42,408		44,640
Other assets		4,407		4,093
Total Assets	$	163,740	$	178,562
Liabilities and Stockholders’ Equity
Current Liabilities:
Deferred revenue		266		1,619
Income tax payable		—		1,244
Other current liabilities		12,919		17,680
Total Current Liabilities		13,185		20,543
Long-term debt, net		29,591		29,554
Deferred income taxes		1,595		1,785
Other long-term liabilities		7,600		7,783
Total Liabilities		51,971		59,665
Total Stockholders’ Equity		111,769		118,897
Total Liabilities and Stockholders’ Equity	$	163,740	$	178,562

Note: Derived from audited financial statements as of the date indicated.


Surmodics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited)

	Three Months Ended December 31,
	2024			2023
Operating Activities:
Net loss	$	(3,651	)	$	(786	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		2,083			2,333
Stock-based compensation		1,743			1,968
Deferred taxes		(68	)		(97	)
Other		365			142
Change in operating assets and liabilities:
Accounts receivable and contract assets		435			(3,430	)
Inventories		(93	)		401
Prepaids and other		(515	)		(788	)
Accounts payable		(216	)		(428	)
Accrued liabilities		(7,362	)		(7,084	)
Income taxes		738			99
Deferred revenue		(1,353	)		(1,122	)
Net cash (used in) provided by operating activities		(7,894	)		(8,792	)
Investing Activities:
Purchases of property and equipment		(302	)		(720	)
Purchases of available-for-sale securities		—			(9,750	)
Maturities of available-for-sale securities		4,000			2,000
Net cash (used in) provided by investing activities		3,698			(8,470	)
Financing Activities:
Issuance of common stock		105			39
Payments for taxes related to net share settlement of equity awards		(1,308	)		(1,088	)
Net cash (used in) provided by financing activities		(1,203	)		(1,049	)
Effect of exchange rate changes on cash and cash equivalents		(571	)		247
Net change in cash and cash equivalents		(5,970	)		(18,064	)
Cash and Cash Equivalents:
Beginning of period		36,115			41,419
End of period	$	30,145		$	23,355


Surmodics, Inc. and Subsidiaries Supplemental Revenue Information (in thousands) (Unaudited)

	Three Months Ended December 31,				Increase (Decrease)
	2024		2023		$			%
Medical Device Revenue
Product sales	$	10,116	$	11,950	$	(1,834	)		(15	)%
Royalties & license fees – performance coatings		9,383		8,208		1,175			14	%
License fees – SurVeil DCB⁽¹⁾		1,251		971		280			29	%
R&D and other		2,531		2,416		115			5	%
Medical Device revenue		23,281		23,545		(264	)		(1	)%

In Vitro Diagnostics Revenue
Product sales		6,432		6,877		(445	)		(6	)%
R&D and other		209		130		79			61	%
In Vitro Diagnostics revenue		6,641		7,007		(366	)		(5	)%
Total Revenue	$	29,922	$	30,552	$	(630	)		(2	)%

Medical Device Revenue, excluding SurVeil DCB license fees⁽¹⁾	$	22,030	$	22,574	$	(544	)		(2	)%
Total Revenue, excluding SurVeil DCB license fees⁽¹⁾	$	28,671	$	29,581	$	(910	)		(3	)%


Surmodics, Inc. and Subsidiaries Supplemental Segment Information (in thousands) (Unaudited)

	Three Months Ended December 31,						Increase (Decrease)
	2024			2023			$
Operating (Loss) Income:
Medical Device	$	161		$	(224	)	$	385
In Vitro Diagnostics		2,922			3,124			(202	)
Total segment operating income		3,083			2,900			183
Corporate		(5,564	)		(3,222	)		(2,342	)
Total Operating (Loss) Income	$	(2,481	)	$	(322	)	$	(2,159	)


Surmodics, Inc. and Subsidiaries GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA (in thousands) (Unaudited)

	Three Months Ended December 31,						Increase (Decrease)
	2024			2023			$
Net loss	$	(3,651	)	$	(786	)	$	(2,865	)
Income tax expense		707			62			645
Depreciation and amortization		2,083			2,333			(250	)
Interest expense, net		882			896			(14	)
Investment income, net		(387	)		(539	)		152
EBITDA		(366	)		1,966			(2,332	)

Adjustments:
Stock-based compensation expense		1,743			1,968			(225	)
Merger-related charges⁽⁵⁾		2,264			—			2,264
Adjusted EBITDA	$	3,641		$	3,934		$	(293	)

Surmodics, Inc. and Subsidiaries GAAP to Non-GAAP Reconciliation: Net (Loss) Income and Diluted EPS (in thousands, except per share data) (Unaudited)

	Three Months Ended December 31, 2024
	Operating (Loss) Income					Loss Before Income Taxes			Net Loss⁽⁷⁾			Diluted EPS
GAAP	$	(2,481	)	(8.3	)%	$	(2,944	)	$	(3,651	)	$	(0.26	)
Adjustments:
Amortization of acquired intangible assets⁽⁶⁾		863		2.9	%		863			799			0.06
Merger-related charges⁽⁵⁾		2,264		7.6	%		2,264			2,264			0.16
Non-GAAP	$	646		2.2	%	$	183		$	(588	)	$	(0.04	)
Diluted weighted average shares outstanding⁽⁸⁾													14,231


	Three Months Ended December 31, 2023
	Operating Income					Income Before Income Taxes			Net Loss⁽⁷⁾			Diluted EPS
GAAP	$	(322	)	(1.1	)%	$	(724	)	$	(786	)	$	(0.06	)
Adjustments:
Amortization of acquired intangible assets⁽⁶⁾		870		2.9	%		870			805			0.06
Non-GAAP	$	548		1.8	%	$	146		$	19		$	–
Diluted weighted average shares outstanding⁽⁸⁾													14,102


(1)		SurVeil DCB license fee revenue represents revenue recognition on milestone payments received under the company’s Development and Distribution Agreement with Abbott (“Abbott Agreement”). For further details, refer to Supplemental Revenue Information.

(2)		For the calculation of Adjusted EBITDA, refer to GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA.

(3)		Product gross profit equals product sales less product costs, as reported on the condensed consolidated statements of operations. Product gross margin equals product gross profit as a percentage of product sales.

(4)		For the calculation of Non-GAAP net (loss) income and Non-GAAP (loss) income per diluted share (also referred to as Non-GAAP diluted EPS), refer to GAAP to Non-GAAP Reconciliation: Net (Loss) Income and Diluted EPS.

(5)		Merger-related charges consisted of expenses specifically associated with the proposed acquisition of Surmodics by GTCR, which were reported in selling, general and administrative expense on the condensed consolidated statements of operations. Merger-related charges were not tax deductible.

(6)		Represents amortization of business acquisition-related intangible assets and associated tax impact. A significant portion of the business acquisition-related amortization is not tax deductible.

(7)		Net (loss) income includes the effect of GAAP to Non-GAAP adjustments on income tax expense, taking into account deferred taxes net of valuation allowances, as well as non-deductible items. Income tax impacts were estimated using the applicable statutory rate (21% in the U.S. and 12.5% in Ireland).

(8)		Diluted weighted average shares outstanding used in the calculation of EPS was the same for GAAP EPS and Non-GAAP EPS for the three months ended December 31, 2024 and 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130168861/en/

Surmodics Investor Inquiries

Jack Powell, Investor Relations

[email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Biotechnology General Health Medical Devices Health Health Technology

MEDIA:

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January 30, 2025 7:04 am

Kymera Therapeutics to Participate in Upcoming February Investor Conferences

WATERTOWN, Mass., Jan. 30, 2025 (GLOBE NEWSWIRE) — Kymera Therapeutics, Inc. (NASDAQ: KYMR), a clinical-stage biopharmaceutical company advancing a new class of oral small molecule degrader medicines with biologics-like activity for immunological diseases, today announced that the Company will participate in fireside chats at the following upcoming investor events:

Guggenheim SMID Cap Biotechnology Conference in New York, NY on February 6 at 10:00 a.m. ET; and
Oppenheimer 35^th Annual Healthcare Life Sciences Conference held virtually on February 11 at 11:20 a.m. ET.

Live webcasts of the presentations will be available under “News and Events” in the Investors section of the Company’s website at www.kymeratx.com. Replays of the webcasts will be archived and available following the events.

About Kymera Therapeutics

Kymera is a clinical-stage biotechnology company pioneering the field of targeted protein degradation (TPD) to develop medicines that address critical health problems and have the potential to dramatically improve patients’ lives. Kymera is deploying TPD to address disease targets and pathways inaccessible with conventional therapeutics. Having advanced the first degrader into the clinic for immunological diseases, Kymera is focused on building an industry-leading pipeline of oral small molecule degraders to provide a new generation of convenient, highly effective therapies for patients with these conditions. Founded in 2016, Kymera has been recognized as one of Boston’s top workplaces for the past several years. For more information about our science, pipeline and people, please visit www.kymeratx.com or follow us on X or LinkedIn.

Investor and Media Contact:

Justine Koenigsberg
Vice President, Investor Relations
[email protected]
[email protected]
857-285-5300

January 30, 2025 7:04 am

SunCoke Energy, Inc. Announces 2024 Results and Provides Full-Year 2025 Guidance

SunCoke Energy, Inc. Announces 2024 Results and Provides Full-Year 2025 Guidance

Net income attributable to SXC was $95.9 million, or $1.12 per diluted share, for the full-year 2024; Net income attributable to SXC was $23.7 million, or $0.28 per diluted share, in the fourth quarter 2024
Full-year 2024 consolidated Adjusted EBITDA⁽¹⁾was $272.8 million; fourth quarter 2024 consolidated Adjusted EBITDA⁽¹⁾was $66.1 million
Operating cash flow was $168.8 million for the full-year 2024
Record safety performance for 2024, with a Total Recordable Incident Rate (TRIR) of 0.50
Full-year 2025 consolidated Adjusted EBITDA⁽¹⁾is expected to be between $210 million and $225 million

LISLE, Ill.–(BUSINESS WIRE)–
SunCoke Energy, Inc. (NYSE: SXC) (the “Company” or “SunCoke”) today reported fourth quarter and full-year 2024 results, reflecting record safety performance and strong operational performance from our cokemaking and logistics businesses.

“2024 was another strong year for SunCoke, with our domestic coke fleet continuing to run at full capacity throughout the year. New domestic logistics business and higher API2 price adjustment at Convent Marine Terminal drove favorable results in the Logistics segment. Operational performance, coupled with the one-time gain from the elimination of the majority of our legacy black lung liabilities, resulted in full-year Adjusted EBITDA exceeding the high-end of our revised guidance range,” said Katherine Gates, President and CEO of SunCoke Energy, Inc. “We achieved record safety performance in 2024, with an annual Total Recordable Incident Rate (TRIR) of 0.50. This best-in-class performance demonstrates the dedication and commitment of our employees, and I would like to thank them for their contributions. We made excellent progress growing our logistics business during the year, with the execution of a new coal handling agreement at Kanawha River Terminal and extension of the coal handling agreement at Convent Marine Terminal. Additionally, we continued to make progress on our capital allocation goals by increasing the quarterly dividend by 20 percent.”

“Looking ahead to 2025, as previously announced, the Granite City cokemaking contract extension at lower economics will adversely impact financial results. Additionally, we anticipate lower margins on higher spot coke sales due to challenging market conditions, with a tepid steel demand outlook and oversupply in the seaborne coke market driving down coke pricing,” Gates continued. “With a solid balance sheet and healthy cash flow generation, we are well positioned to navigate through this challenging steel industry cycle. Additionally, we will remain focused on executing against our well established objectives of exceptional safety performance, operational excellence, and a balanced approach to capital allocation, including the anticipated continuation of the quarterly dividend. We are committed to positioning the Company for sustained success and delivering significant value to SunCoke stakeholders.”

(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.

CONSOLIDATED RESULTS

	Three Months Ended December 31,							Years Ended December 31,
(Dollars in millions)		2024		2023	Increase (Decrease)				2024		2023	Increase (Decrease)
Revenues	$	486.0	$	520.6	$	(34.6	)	$	1,935.4	$	2,063.2	$	(127.8	)
Net income attributable to SXC	$	23.7	$	13.8	$	9.9		$	95.9	$	57.5	$	38.4
Adjusted EBITDA⁽¹⁾	$	66.1	$	62.3	$	3.8		$	272.8	$	268.8	$	4.0
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.

Revenues decreased during both the fourth quarter and full-year 2024 as compared to the same prior year periods, primarily reflecting the pass-through of lower coal costs in the Domestic Coke segment.

Net income attributable to SXC for the fourth quarter 2024 increased from the same prior year period, primarily driven by lower depreciation expense. Net income attributable to SXC for the full-year 2024 increased from the same prior year period, primarily driven by lower depreciation expense, the one-time gain of $9.5 million on the elimination of the majority of our legacy black lung liabilities resulting from the U.S. Department of Labor (DOL) exemption recorded in the third quarter of 2024, and lower income tax expense.

Fourth quarter 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by lower planned outage costs in the Domestic Coke segment and higher transloading volumes in the Logistics segment. Full-year 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by the one-time gain of $9.5 million on the elimination of the majority of our legacy black lung liabilities resulting from the DOL exemption recorded in the third quarter of 2024, higher transloading volumes at domestic logistics terminals, and higher API2 price adjustment benefit at CMT, partially offset by lower coal-to-coke yields on our long-term, take-or-pay contracts in the Domestic Coke segment.

SEGMENT RESULTS

Domestic Coke

Domestic Coke consists of cokemaking facilities and heat recovery operations at our Jewell, Indiana Harbor, Haverhill, Granite City and Middletown plants.

	Three Months Ended December 31,							Years Ended December 31,
(Dollars in millions, except per ton amounts)		2024		2023	Increase (Decrease)				2024		2023	Increase (Decrease)
Revenues	$	456.3	$	493.6	$	(37.3	)	$	1,817.3	$	1,954.0	$	(136.7	)
Adjusted EBITDA⁽¹⁾	$	57.3	$	55.2	$	2.1		$	234.7	$	247.8	$	(13.1	)
Sales Volume (in thousands of tons)		1,032		1,037		(5	)		4,028		4,046		(18	)
Adjusted EBITDA per ton⁽²⁾	$	55.52	$	53.23	$	2.29		$	58.27	$	61.25	$	(2.98	)
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.
(2) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.

The decreases in revenues for both the fourth quarter and full-year 2024 as compared to the same prior year periods primarily reflect the pass-through of lower coal costs.

Fourth quarter 2024 Adjusted EBITDA increased as compared to the same prior year period, primarily driven by lower planned outage costs. Full-year 2024 Adjusted EBITDA decreased as compared to the same prior year period primarily driven by lower coal-to-coke yields on our long-term, take-or-pay contracts.

Logistics

Logistics consists of the handling and mixing services of coal and other aggregates at our Convent Marine Terminal (“CMT”), Lake Terminal, and Kanawha River Terminals (“KRT”).

	Three Months Ended December 31,							Years Ended December 31,
	Three Months Ended December 31,							Years Ended December 31,
(Dollars in millions)		2024		2023	Increase (Decrease)				2024		2023	Increase (Decrease)
Revenues	$	20.8	$	17.6	$	3.2		$	83.0	$	74.0	$	9.0
Intersegment sales	$	5.1	$	5.2	$	(0.1	)	$	22.9	$	22.1	$	0.8
Adjusted EBITDA⁽¹⁾	$	11.5	$	10.7	$	0.8		$	50.4	$	44.3	$	6.1
Tons handled (thousands of tons)⁽²⁾		5,262		5,022		240			22,540		20,483		2,057
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.
(2) Reflects inbound tons handled during the period.

The increases in both revenues and Adjusted EBITDA for the fourth quarter and full-year 2024 as compared to the same prior year periods were driven by higher transloading volumes at domestic logistics terminals and higher API2 price adjustment benefit at CMT.

Brazil Coke

Brazil Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for an affiliate of ArcelorMittal.

	Three Months Ended December 31,							Years Ended December 31,
	Three Months Ended December 31,							Years Ended December 31,
(Dollars in millions)		2024		2023	Increase (Decrease)				2024		2023	Increase (Decrease)
Revenues	$	8.9	$	9.4	$	(0.5	)	$	35.1	$	35.2	$	(0.1	)
Adjusted EBITDA⁽¹⁾	$	2.5	$	2.2	$	0.3		$	9.9	$	9.1	$	0.8
Brazilian Coke production—operated facility (thousands of tons)		388		383		5			1,579		1,558		21
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.

Revenues and Adjusted EBITDA for the fourth quarter and full-year 2024 were reasonably consistent with the same prior year periods.

Corporate and Other

Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder is included in Corporate and Other, which is not a reportable segment.

	Three Months Ended December 31,								Years Ended December 31,
	Three Months Ended December 31,								Years Ended December 31,
(Dollars in millions)		2024			2023		Increase (Decrease)			2024			2023		Increase (Decrease)
Adjusted EBITDA⁽¹⁾	$	(5.2	)	$	(5.8	)	$	0.6	$	(22.2	)	$	(32.4	)	$	10.2
(1) See definition and reconciliation of Adjusted EBITDA elsewhere in this release.

Corporate and Other Adjusted EBITDA results for the fourth quarter 2024 were reasonably consistent with the same prior year period. Corporate and Other Adjusted EBITDA results for the full-year 2024 were favorable as compared to the same prior year period, primarily driven by the one-time gain of $9.5 million on the elimination of the majority of our legacy black lung liabilities resulting from the DOL exemption recorded in the third quarter of 2024.

2025 OUTLOOK

Our 2025 guidance is as follows:

Domestic coke total production is expected to be approximately 4.0 million tons

Consolidated Net Income is expected to be between $52 million and $69 million

Consolidated Adjusted EBITDA is expected to be between $210 million to $225 million

Capital expenditures are projected to be approximately $65 million

Operating cash flow is estimated to be between $165 million and $180 million

Cash taxes are projected to be between $17 million and $21 million

RELATED COMMUNICATIONS

We will host our quarterly earnings call at 11:00 am ET today. The conference call will be webcast live at https://event.choruscall.com/mediaframe/webcast.html?webcastid=6xIbD7GY and archived for replay in the Investors section of www.suncoke.com. Investors and analysts may participate in this call by dialing 1-866-652-5200 in the U.S. or 1-412-902-6510 if outside the U.S., and asking to be joined into the SunCoke Energy, Inc call.

SUNCOKE ENERGY, INC.

SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in Illinois, Indiana, Ohio, Virginia and Brazil. Our logistics business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. The logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.

SunCoke routinely announces material information to investors and the marketplace using press releases, Securities and Exchange Commission filings, public conference calls, webcasts and SunCoke’s website at www.suncoke.com/en/investors/overview. The information that SunCoke posts to its website may be deemed to be material. Accordingly, SunCoke encourages investors and others interested in SunCoke to routinely monitor and review the information that SunCoke posts on its website, in addition to following SunCoke’s press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

NON-GAAP FINANCIAL MEASURES

In addition to U.S. GAAP measures, this press release contains certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to the measures derived in accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. Additionally, other companies may calculate non-GAAP metrics differently than we do, thereby limiting their usefulness as a comparative measure. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other U.S. GAAP-based financial performance measures, including revenues and net income. Reconciliations to the most comparable GAAP financial measures are included following the presentation of financial and operating results included at the end of this press release.

DEFINITIONS

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted for any impairments, restructuring costs, gains or losses on extinguishment of debt, and/or transaction costs (“Adjusted EBITDA”). EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or operating income under U.S. GAAP and may not be comparable to other similarly titled measures in other businesses. Management believes Adjusted EBITDA is an important measure in assessing operating performance. Adjusted EBITDA provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on our operating performance. EBITDA and Adjusted EBITDA are not measures calculated in accordance with U.S. GAAP, and they should not be considered a substitute for net income, or any other measure of financial performance presented in accordance with U.S. GAAP.
EBITDA represents earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA attributable to SXC represents Adjusted EBITDA less Adjusted EBITDA attributable to noncontrolling interests.
Domestic logistics terminals represents Lake Terminal and Kanawha River Terminals.

FORWARD-LOOKING STATEMENTS

This press release and related conference call contain “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements often may be identified by the use of such words as “believe,” “expect,” “plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should,” or the negative of these terms, or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Any statements made in this press release or during the related conference call that are not statements of historical fact, including statements about our full-year 2025 guidance and outlook, anticipated lower margins on coke sales and challenging market conditions, our ability to deliver significant value to our stakeholders, our intention to remain focused on safety performance and maintain a balanced approach to capital allocation, and our anticipation to continue a quarterly dividend, are forward-looking statements and should be evaluated as such. Forward-looking statements represent only our beliefs regarding future events, many of which are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause our actual results and financial condition to differ materially from the anticipated results and financial condition indicated in such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in Item 1A (“Risk Factors”) of our Annual Report on Form 10-K for the most recently completed fiscal year, as well as those described from time to time in our other reports and filings with the Securities and Exchange Commission (SEC).

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke has included in its filings with the SEC cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SunCoke. For information concerning these factors and other important information regarding the matters discussed in this press release and related conference call, see SunCoke’s SEC filings, copies of which are available free of charge on SunCoke’s website at www.suncoke.com or on the SEC’s website at www.sec.gov. All forward-looking statements included in this press release and related conference call are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this press release and related conference call also could have material adverse effects on forward-looking statements.

Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SunCoke does not intend, and expressly disclaims any obligation, to update or alter its forward-looking statements (or associated cautionary language), whether as a result of new information, future events, or otherwise, after the date of this press release except as required by applicable law.

SunCoke Energy, Inc. Consolidated Statements of Income

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	(Dollars and shares in millions, except per share amounts)
Revenues
Sales and other operating revenue	$	486.0	$	520.6	$	1,935.4	$	2,063.2
Costs and operating expenses
Cost of products sold and operating expenses		406.3		443.4		1,603.4		1,724.6
Selling, general and administrative expenses		15.4		15.4		61.2		70.7
Depreciation and amortization expense		28.8		35.6		118.9		142.8
Total costs and operating expenses		450.5		494.4		1,783.5		1,938.1
Operating income		35.5		26.2		151.9		125.1
Interest expense, net		5.6		6.3		23.4		27.3
Income before income tax expense		29.9		19.9		128.5		97.8
Income tax expense		4.1		4.6		25.0		34.3
Net income		25.8		15.3		103.5		63.5
Less: Net income attributable to noncontrolling interests		2.1		1.5		7.6		6.0
Net income attributable to SunCoke Energy, Inc.	$	23.7	$	13.8	$	95.9	$	57.5
Earnings attributable to SunCoke Energy, Inc. per common share:
Basic	$	0.28	$	0.16	$	1.13	$	0.68
Diluted	$	0.28	$	0.16	$	1.12	$	0.68
Weighted average number of common shares outstanding:
Basic		85.3		84.8		85.1		84.7
Diluted		85.5		85.0		85.3		84.9


SunCoke Energy, Inc. Consolidated Balance Sheets

	December 31,
		2024			2023
	(Unaudited)			(Audited)
	(Dollars in millions, except par value amounts)
Assets
Cash and cash equivalents	$	189.6		$	140.1
Receivables, net		96.6			88.3
Inventories		180.8			182.6
Income tax receivable		—			1.4
Other current assets		7.6			4.4
Total current assets		474.6			416.8
Properties, plants and equipment (net of accumulated depreciation of $1,497.6 million and $1,383.6 million at December 31, 2024 and 2023, respectively)		1,143.6			1,191.1
Intangible assets, net		29.2			31.1
Deferred charges and other assets		20.8			21.4
Total assets	$	1,668.2		$	1,660.4
Liabilities and Equity
Accounts payable	$	153.2		$	172.1
Accrued liabilities		52.6			51.7
Total current liabilities		205.8			223.8
Long-term debt		492.3			490.3
Accrual for black lung benefits		12.7			53.2
Retirement benefit liabilities		7.6			15.8
Deferred income taxes		196.8			190.4
Asset retirement obligations		17.2			14.1
Other deferred credits and liabilities		24.8			27.3
Total liabilities		957.2			1,014.9
Equity
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no issued shares at both December 31, 2024 and 2023		—			—
Common stock, $0.01 par value. Authorized 300,000,000 shares; issued 99,756,420 and 99,161,446 shares at December 31, 2024 and 2023, respectively		1.0			1.0
Treasury stock, 15,404,482 shares at both December 31, 2024 and 2023		(184.0	)		(184.0	)
Additional paid-in capital		732.8			729.8
Accumulated other comprehensive loss		(7.7	)		(12.8	)
Retained earnings		138.1			80.2
Total SunCoke Energy, Inc. stockholders’ equity		680.2			614.2
Noncontrolling interests		30.8			31.3
Total equity		711.0			645.5
Total liabilities and equity	$	1,668.2		$	1,660.4


SunCoke Energy, Inc. Consolidated Statements of Cash Flows

	Years Ended December 31,
		2024			2023
	(Unaudited)			(Audited)
	(Dollars in millions)
Cash Flows from Operating Activities:
Net income	$	103.5		$	63.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		118.9			142.8
Deferred income tax expense		4.5			18.6
Share-based compensation expense		4.0			5.1
Gain on extinguishment of legacy coal liabilities		(9.5	)		—
Changes in working capital pertaining to operating activities:
Receivables, net		(8.9	)		16.8
Inventories		1.8			(7.2	)
Accounts payable		(12.9	)		19.7
Accrued liabilities		(31.9	)		(10.2	)
Income taxes		1.4			(1.4	)
Other		(2.1	)		1.3
Net cash provided by operating activities		168.8			249.0
Cash Flows from Investing Activities:
Capital expenditures		(72.9	)		(109.2	)
Other investing activities		0.6			—
Net cash used in investing activities		(72.3	)		(109.2	)
Cash Flows from Financing Activities:
Proceeds from revolving facility		11.0			291.0
Repayment of revolving facility		(11.0	)		(326.0	)
Repayment of financing obligation		—			(8.8	)
Dividends paid		(37.6	)		(30.7	)
Cash distributions to noncontrolling interests		(8.1	)		(11.8	)
Other financing activities		(1.3	)		(3.4	)
Net cash used in financing activities		(47.0	)		(89.7	)
Net increase in cash and cash equivalents		49.5			50.1
Cash and cash equivalents at beginning of year		140.1			90.0
Cash and cash equivalents at end of year	$	189.6		$	140.1
Supplemental Disclosure of Cash Flow Information
Interest paid	$	24.4		$	25.7
Income taxes paid, net of refunds of $0.3 million and zero	$	18.0		$	17.7


SunCoke Energy, Inc. Segment Operating Data

	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)

	(Dollars in millions)
Sales and other operating revenues:
Domestic Coke	$	456.3		$	493.6		$	1,817.3		$	1,954.0
Brazil Coke		8.9			9.4			35.1			35.2
Logistics		20.8			17.6			83.0			74.0
Logistics intersegment sales		5.1			5.2			22.9			22.1
Elimination of intersegment sales		(5.1	)		(5.2	)		(22.9	)		(22.1	)
Total sales and other operating revenue	$	486.0		$	520.6		$	1,935.4		$	2,063.2
Adjusted EBITDA⁽¹⁾
Domestic Coke	$	57.3		$	55.2		$	234.7		$	247.8
Brazil Coke		2.5			2.2			9.9			9.1
Logistics		11.5			10.7			50.4			44.3
Corporate and Other⁽²⁾		(5.2	)		(5.8	)		(22.2	)		(32.4	)
Total Adjusted EBITDA	$	66.1		$	62.3		$	272.8		$	268.8
Coke Operating Data:
Domestic Coke capacity utilization⁽³⁾		100	%		100	%		100	%		101	%
Domestic Coke production volumes (thousands of tons)		1,023			1,025			4,032			4,049
Domestic Coke sales volumes (thousands of tons)		1,032			1,037			4,028			4,046
Domestic Coke Adjusted EBITDA per ton⁽⁴⁾	$	55.52		$	53.23		$	58.27		$	61.25
Brazilian Coke production—operated facility (thousands of tons)		388			383			1,579			1,558
Logistics Operating Data:
Tons handled (thousands of tons)		5,262			5,022			22,540			20,483
(1) See definition of Adjusted EBITDA and reconciliation to GAAP elsewhere in this release.
(2) Corporate and Other is not a reportable segment.
(3) The production of foundry coke tons does not replace blast furnace coke tons on a ton for ton basis, as foundry coke requires longer coking time. The Domestic Coke capacity utilization is calculated assuming a single ton of foundry coke replaces approximately two tons of blast furnace coke.
(4) Reflects Domestic Coke Adjusted EBITDA divided by Domestic Coke sales volumes.


SunCoke Energy, Inc. Reconciliation of Non-GAAP Information Net Income to Adjusted EBITDA

	Three Months Ended December 31,				Years Ended December 31,
		2024		2023		2024		2023
	(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	(Dollars in millions)
Net income	$	25.8	$	15.3	$	103.5	$	63.5
Add:
Depreciation and amortization expense		28.8		35.6		118.9		142.8
Interest expense, net		5.6		6.3		23.4		27.3
Income tax expense		4.1		4.6		25.0		34.3
Transaction costs⁽¹⁾		1.8		0.5		2.0		0.9
Adjusted EBITDA	$	66.1	$	62.3	$	272.8	$	268.8
(1) Reflects costs incurred related to potential mergers and acquisitions and the granulated pig iron project with U.S. Steel.


SunCoke Energy, Inc Reconciliation of Non-GAAP Information Estimated 2025 Net Income to Estimated 2025 Adjusted EBITDA

	2025 (Dollars in millions)
	Low		High
Net income	$	52	$	69
Add:
Depreciation and amortization expense		121		117
Interest expense, net		26		24
Income tax expense		11		15
Adjusted EBITDA	$	210	$	225

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130359807/en/

Investor/Media Inquiries:

Sharon Doyle

Manager, Investor Relations

(630) 824-1907

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Machine Tools, Metalworking & Metallurgy Transport Logistics/Supply Chain Management Manufacturing Coal Energy

MEDIA:

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January 30, 2025 7:04 am

OneWater Marine Inc. Announces Fiscal First Quarter Results

Executing on Strategic Approach for Driving Sales and Managing Inventory

Fiscal First Quarter 2025 Highlights

Revenue increased 3% to $376 million
Same-store sales increased 4%, including an increase in units sold
Gross profit margin of 22.4%, impacted by exiting brands
GAAP net loss of $14 million, or $(0.81) per diluted share and adjusted diluted loss per share¹ of $(0.54)
Adjusted EBITDA¹ of $2 million

BUFORD, Ga., Jan. 30, 2025 (GLOBE NEWSWIRE) — OneWater Marine Inc. (NASDAQ: ONEW) (“OneWater” or the “Company”) today announced results for its fiscal first quarter ended December 31, 2024.

“First quarter results exceeded expectations driven by higher unit sales in both new and preowned categories. Our strategic inventory management and operational execution drove outperformance against the industry, and our team did a great job working down inventory. Although these efforts pressured margins in the quarter, higher finance and insurance penetration helped offset the impact, reinforcing the durability of our business model,” commented Austin Singleton, Chief Executive Officer at OneWater.

“We remain cautiously optimistic, supported by a healthy inventory position that enables us to effectively meet customer demand. As the year progresses, we expect further benefit from our ongoing cost reduction initiatives, which continue to strengthen our financial profile.”

For the Three Months Ended December 31		2024		2023	$ Change			% Change
Revenues	(unaudited, $ in thousands)
New boat	$	247,997	$	241,084	$	6,913		2.9	%
Pre-owned boat		56,798		53,283		3,515		6.6	%
Finance & insurance income		9,400		7,360		2,040		27.7	%
Service, parts & other		61,619		62,286		(667	)	(1.1	)%
Total revenues	$	375,814	$	364,013	$	11,801		3.2	%

Fiscal First Quarter 2025 Results

Revenue for fiscal first quarter 2025 was $375.8 million, an increase of 3.2% compared to $364.0 million in fiscal first quarter 2024. Same-store sales increased 4.2%. New boat revenue increased 2.9%, driven by an increase in units sold. Pre-owned boat revenue increased 6.6%, driven by the increase in units sold and average price per unit. Finance & insurance income increased as a percentage of total boat sales, while service, parts & other sales were down 1.1% compared to the prior year quarter. Distribution segment service, parts, and other sales were lower due to reduced production by boat manufacturers.

Gross profit totaled $84.1 million for fiscal first quarter 2025, down $7.4 million from $91.4 million for fiscal first quarter 2024. Gross profit margin of 22.4% decreased 270 basis points compared to the prior year period, driven by new and pre-owned boat pricing, including the impact of select brands the Company is exiting.

Fiscal first quarter 2025 selling, general and administrative expenses totaled $79.1 million, or 21.0% of revenue, compared to $79.6 million, or 21.9% of revenue, in fiscal first quarter 2024. The decrease in selling, general and administrative expenses as a percentage of revenue was driven by cost reduction actions and higher revenues.

Net loss for fiscal first quarter 2025 totaled $(13.6) million, compared to net loss of $(8.0) million in fiscal first quarter 2024. The Company reported net loss per diluted share for fiscal first quarter 2025 of $(0.81), compared to net loss per diluted share of $(0.49) in 2024. Adjusted diluted loss per share¹ for fiscal first quarter 2025 was $(0.54), compared to adjusted diluted loss per share¹ of $(0.38) in 2024.

Fiscal first quarter 2025 Adjusted EBITDA¹ decreased to $1.9 million compared to $7.1 million for fiscal first quarter 2024.

As of December 31, 2024, the Company’s cash and cash equivalents balance was $22.7 million and total liquidity, including cash and availability under credit facilities, was in excess of $40.0 million. Total inventory as of December 31, 2024, decreased 9.9% to $636.7 million, compared to $706.8 million on December 31, 2023, primarily driven by the Company’s inventory management and the increase in same-store sales.

Total long-term debt as of December 31, 2024 was $428.3 million, and adjusted long-term net debt (net of $22.7 million cash)¹ was 5.2 times trailing twelve-month Adjusted EBITDA¹.

Fiscal Year 2025 Guidance

The Company is maintaining its previously issued fiscal full year 2025 outlook. For fiscal full year 2025, OneWater anticipates revenue to be in the range of $1.7 billion to $1.85 billion and dealership same-store sales to be up low single digits. Adjusted EBITDA² is expected to be in the range of $80 million to $110 million and Adjusted Diluted Earnings Per Share is expected to be in the range of $1.00 to $2.00.

Conference Call and Webcast

OneWater will host a conference call to discuss its fiscal first quarter earnings on Thursday, January 30^th, at 8:30 am Eastern time. To access the conference call via phone, participants can dial (+1) 646 564 2877 or (+1) 800 549 8228 (North America Toll Free).

Alternatively, a live webcast of the conference call can be accessed through the “Events” section of the Company’s website at https://investor.onewatermarine.com/ where it will be archived for one year.

A telephonic replay will also be available through February 6th, 2025 by dialing (+1) 646 517 3975 (US), (+1) 289 819 1325 (Canada), or (+1) 888 660 6264 (North America Toll Free), and entering access code 94147 #.

See reconciliation of Non-GAAP financial measures below.
See reconciliation of Non-GAAP financial measures below for a discussion of why reconciliations of forward-looking Adjusted EBITDA and adjusted earnings per diluted share are not available without unreasonable effort.


ONEWATER MARINE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited)

	Three Months Ended December 31,
		2024			2023
Revenues:
New boat	$	247,997		$	241,084
Pre-owned boat		56,798			53,283
Finance & insurance income		9,400			7,360
Service, parts & other		61,619			62,286
Total revenues		375,814			364,013

Gross profit
New boat		36,876			44,681
Pre-owned boat		11,216			11,937
Finance and insurance		9,400			7,360
Service, parts & other		26,562			27,465
Total gross profit		84,054			91,443

Selling, general and administrative expenses		79,060			79,599
Depreciation and amortization		5,315			4,222
Transaction costs		559			579
Change in fair value of contingent consideration		242			572
Restructuring and impairment		851			—
Net (loss) income from operations		(1,973	)		6,471

Other expense (income):
Interest expense – floor plan		7,026			7,812
Interest expense – other		8,988			9,152
Other expense (income), net		887			(247	)
Total other expense, net		16,901			16,717
Net loss before income tax benefit		(18,874	)		(10,246	)
Income tax benefit		(5,262	)		(2,276	)
Net loss		(13,612	)		(7,970	)
Net income attributable to non-controlling interests		—			(119	)
Net loss attributable to non-controlling interests of One Water Marine Holdings, LLC		1,641			919
Net loss attributable to OneWater Marine Inc.	$	(11,971	)	$	(7,170	)

Net loss per share of Class A common stock – basic	$	(0.81	)	$	(0.49	)
Net loss per share of Class A common stock – diluted	$	(0.81	)	$	(0.49	)

Basic weighted-average shares of Class A common stock outstanding		14,831			14,540
Diluted weighted-average shares of Class A common stock outstanding		14,831			14,540


ONEWATER MARINE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	December 31, 2024		December 31, 2023
ASSETS
Cash	$	22,711	$	44,569
Restricted cash		13,847		9,584
Accounts receivable, net		56,912		47,885
Inventories		636,676		706,805
Prepaid expenses and other current assets		67,328		78,469
Total current assets		797,474		887,312
Property and equipment, net		91,499		83,221
Operating lease right-of-use assets		136,275		133,699
Other long-term assets		4,911		7,827
Deferred tax assets, net		41,154		33,239
Intangible assets, net		203,631		211,173
Goodwill		336,602		336,602
Total assets	$	1,611,546	$	1,693,073

LIABILITIES
Accounts payable	$	29,266	$	18,897
Other payables and accrued expenses		38,055		42,918
Customer deposits		53,454		50,977
Notes payable – floor plan		490,107		562,815
Current portion of operating lease liabilities		15,752		14,843
Current portion of long-term debt, net		15,672		6,125
Current portion of tax receivable agreement liability		2,578		2,447
Total current liabilities		644,884		699,022
Other long-term liabilities		9,105		13,967
Tax receivable agreement liability		38,019		40,688
Long-term operating lease liabilities		123,330		121,404
Long-term debt, net		412,590		433,682
Total liabilities		1,227,928		1,308,763

STOCKHOLDERS’ EQUITY
Total stockholders’ equity attributable to OneWater Marine Inc.		354,777		352,987
Equity attributable to non-controlling interests		28,841		31,323
Total stockholders’ equity		383,618		384,310
Total liabilities and stockholders’ equity	$	1,611,546	$	1,693,073


ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited)

	Three Months Ended December 31,
		2024			2023
Net loss attributable to OneWater Marine Inc.	$	(11,971	)	$	(7,170	)
Transaction costs		559			579
Intangible amortization		2,122			1,579
Change in fair value of contingent consideration		242			572
Restructuring and impairment		1,898			—
Other expense (income), net		887			(247	)
Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1)		(514	)		(223	)
Adjustments to income tax benefit (2)		(1,195	)		(520	)
Adjusted net loss attributable to OneWater Marine Inc.		(7,972	)		(5,430	)

Net loss per share of Class A common stock – diluted	$	(0.81	)	$	(0.49	)
Transaction costs		0.04			0.04
Intangible amortization		0.14			0.11
Change in fair value of contingent consideration		0.02			0.04
Restructuring and impairment		0.13			—
Other expense (income), net		0.06			(0.02	)
Net income attributable to non-controlling interests of One Water Marine Holdings, LLC (1)		(0.04	)		(0.02	)
Adjustments to income tax benefit (2)		(0.08	)		(0.04	)
Adjusted loss per share of Class A common stock – diluted	$	(0.54	)	$	(0.38	)

(1) Represents an allocation of the impact of reconciling items to our non-controlling interest.
(2) Represents an adjustment of all reconciling items at an estimated effective tax rate.


ONEWATER MARINE INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except ratios) (Unaudited)

	Three Months Ended December 31,						Trailing twelve months ended December 31,
		2024			2023			2024
Net loss	$	(13,612	)	$	(7,970	)	$	(11,818	)
Interest expense – other		8,988			9,152			36,886
Income tax benefit		(5,262	)		(2,276	)		(3,143	)
Depreciation and amortization		6,037			4,906			23,318
Stock-based compensation		2,170			2,392			8,221
Change in fair value of contingent consideration		242			572			3,918
Transaction costs		559			579			1,510
Restructuring and impairment		1,898			—			17,216
Other expense (income), net		887			(247	)		1,148
Adjusted EBITDA	$	1,907		$	7,108		$	77,256

Long-term debt (including current portion)							$	428,262
Less: cash								(22,711	)
Adjusted long-term net debt							$	405,551

Pro forma adjusted net debt leverage ratio								5.2	x

About OneWater Marine Inc.

OneWater Marine Inc. is one of the largest and fastest-growing premium marine retailers in the United States. OneWater operates a total of 96 retail locations, 10 distribution centers / warehouses and multiple online marketplaces in 19 different states, several of which are in the top twenty states for marine retail expenditures. OneWater offers a broad range of products and services and has diversified revenue streams, which include the sale of new and pre-owned boats, finance and insurance products, parts and accessories, maintenance, repair and other services.

Non-GAAP Financial Measures and Key Performance Indicators

This press release and our related earnings call contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income (Loss) Attributable to OneWater Marine Inc., Adjusted Diluted Earnings (Loss) Per Share and Adjusted Long-Term Net Debt, as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of the Company’s ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP. Because our non-GAAP financial measures may be defined differently by other companies, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. We have not reconciled non-GAAP forward-looking measures, including Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share guidance, to their corresponding GAAP measures due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to change in fair value of contingent consideration and transaction costs. Change in fair value of contingent consideration and transaction costs are affected by the acquisition, integration and post-acquisition performance of our acquirees which is difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA and Adjusted Earnings (Loss) Per Diluted Share are not available without unreasonable effort.

Adjusted EBITDA

We define Adjusted EBITDA as net income (loss) before interest expense – other, income tax (benefit) expense, depreciation and amortization and other (income) expense, further adjusted to eliminate the effects of items such as the change in fair value of contingent consideration, restructuring and impairment, stock-based compensation and transaction costs. See reconciliation above.

Our board of directors, management team and lenders use Adjusted EBITDA to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and other items (such as the change in fair value of contingent consideration, income tax (benefit) expense, restructuring and impairment, stock-based compensation and transaction costs) that impact the comparability of financial results from period to period. We present Adjusted EBITDA because we believe it provides useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted EBITDA is not a financial measure presented in accordance with GAAP. We believe that the presentation of this non-GAAP financial measure will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.

Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share

We define Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. as Net (Loss) Income Attributable to OneWater Marine Inc. before transaction costs, intangible amortization, change in fair value of contingent consideration, restructuring and impairment and other expense (income), all of which are then adjusted for an allocation to the non-controlling interest of OneWater Marine Holdings, LLC. Each of these adjustments are subsequently adjusted for income tax at an estimated effective tax rate. Management also reports Adjusted Diluted (Loss) Earnings Per Share which presents all of the adjustments to Net (Loss) Income Attributable to OneWater Marine Inc. noted above on a per share basis. See reconciliation above.

Our board of directors, management team and lenders use Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share to assess our financial performance because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of unusual or one time charges and other items (such as the change in fair value of contingent consideration, intangible amortization, restructuring and impairment, transaction costs and other expense (income)) that impact the comparability of financial results from period to period. We present these metrics because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. Adjusted Net (Loss) Income Attributable to OneWater Marine Inc. and Adjusted Diluted (Loss) Earnings Per Share are not financial measures presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures will provide useful information to investors and analysts in assessing our financial performance and results of operations across reporting periods by excluding items we do not believe are indicative of our core operating performance.

Adjusted Long-Term Net Debt

We define Adjusted Long-Term Net Debt as long-term debt (including current portion) less cash. We consider, and we believe certain investors and analysts consider, adjusted long-term net debt, as well as adjusted long-term net debt divided by trailing twelve-month Adjusted EBITDA, to be an indicator of our financial leverage.

Same-Store Sales

We define same-store sales as sales from our Dealership segment, excluding new and acquired stores. New and acquired stores become eligible for inclusion in the comparable store base at the end of the store’s thirteenth month of operations under our ownership and revenues are only included for identical months in the same-store base periods. Stores relocated within an existing market remain in the comparable store base for all periods. Additionally, amounts related to closed or sold stores are excluded from each comparative base period. We use same-store sales to assess the organic growth of our Dealership segment revenue. We believe that our assessment on a same-store basis represents an important indicator of comparative financial results and provides relevant information to assess our performance.

Cautionary Statement Concerning Forward-Looking Statements

This press release and statements made during the above referenced conference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and its expectations regarding future revenue, operating income or loss or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “will be,” “will likely result,” “should,” “expects,” “plans,” “anticipates,” “could,” “would,” “foresees,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are not guarantees of future performance, but are based on management’s current expectations, assumptions and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct.

Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: changes in demand for our products and services, the seasonality and volatility of the boat industry, effects of industry wide supply chain challenges including a heightened inflationary environment and our ability to maintain adequate inventory, fluctuation in interest rates, adverse weather events, our acquisition and business strategies, the inability to comply with the financial and other covenants and metrics in our credit facilities, cash flow and access to capital, effects of a global pandemic on the Company’s business, risks related to the ability to realize the anticipated benefits of any proposed acquisitions, including the risk that proposed acquisitions will not be integrated successfully, the timing of development expenditures, and other risks. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and in our subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from OneWater Marine’s website at www.onewatermarine.com under the “Investors” tab, and in other documents OneWater Marine files with the SEC. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

Investor or Media Contact:

Jack Ezzell
Chief Financial Officer
[email protected]

January 30, 2025 7:04 am

Oshkosh Corporation Reports 2024 Fourth Quarter and Full Year Results

Oshkosh Corporation Reports 2024 Fourth Quarter and Full Year Results

Reports Fourth Quarter Sales of $2.62 billion, up 6 Percent

Reports Fourth Quarter Earnings per Share of $2.33 and Adjusted¹ Earnings per Share of $2.58

Reports 2024 Earnings per Share of $10.35 and Adjusted¹ Earnings per Share of $11.74

Announces 11 Percent Increase in Quarterly Cash Dividend to $0.51 Per Share

Initiates 2025 Earnings per Share Guidance of approximately $10.30 and Adjusted¹ Earnings per Share Guidance of approximately $11.00

OSHKOSH, Wis.–(BUSINESS WIRE)–
Oshkosh Corporation (NYSE: OSK), a leading innovator of purpose-built vehicles and equipment, today reported 2024 fourth quarter net income of $153.1 million, or $2.33 per diluted share, compared to net income of $150.8 million, or $2.28 per diluted share, for the fourth quarter of 2023. Adjusted¹net income was $169.3 million, or $2.58 per diluted share, for the fourth quarter of 2024 compared to $169.4 million, or $2.56 per diluted share, for the fourth quarter of 2023. Comparisons in this news release are to the fourth quarter of 2023, unless otherwise noted.

Consolidated sales in the fourth quarter of 2024 increased $156.6 million, or 6.3 percent, to $2.62 billion primarily due to higher volumes as well as improved pricing in the Vocational segment.

Consolidated operating income in the fourth quarter of 2024 increased 3.9 percent to $223.9 million, or 8.5 percent of sales, compared to $215.4 million, or 8.7 percent of sales, in the fourth quarter of 2023. The increase in operating income was primarily due to higher sales volume and favorable price/cost dynamics, offset partially by the impact of changes in cumulative catch-up adjustments on contracts in the Defense segment. Adjusted¹ operating income in the fourth quarter of 2024 increased 2.3 percent to $245.4 million, or 9.4 percent of sales, compared to $239.9 million, or 9.7 percent of sales, in the fourth quarter of 2023.

“We delivered another strong quarter as our team grew fourth quarter adjusted earnings per share to $2.58, leading to full year 2024 adjusted earnings per share of $11.74, an increase of 17.6 percent over the prior year,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation. “Our impressive fourth quarter performance was driven in particular by revenue growth of nearly 20 percent in our Vocational segment. For the full year, we grew revenue in all three of our segments and delivered solid double-digit operating income and adjusted operating income margins in our Access and Vocational segments.

“In 2024, we began producing and delivering our revolutionary purpose-built Next Generation Delivery Vehicle (NGDV) for the US Postal Service (USPS). We are pleased with early feedback we have received from the nation’s postal carriers as they use NGDVs for daily deliveries. We look forward to ramping up this important program to full rate production this year. Our NGDV program as well as excellent visibility with strong backlogs in our Vocational segment give us confidence that Oshkosh can continue to deliver strong results.

“Our Access team delivered solid results in the fourth quarter despite moderating demand. We are confident that long-term drivers, including infrastructure buildout, mega projects and data center construction, remain strong for our Access business. We expect short-term market softness in the first half of 2025 followed by improved demand in the second half of the year, which we have factored into our expectations for the Access segment in 2025.

“We expect growth for our Vocational and Defense segments in 2025 and we are confident in our team’s ability to navigate through softer market conditions in our Access segment to position Oshkosh Corporation to continue delivering strong results. We are initiating our adjusted earnings per share expectations for 2025 of approximately $11.00. We are also announcing a quarterly cash dividend of $0.51 per share, representing a 10.9 percent increase. This marks the 11th consecutive year in which we have increased our dividend by a double digit percentage,” said Pfeifer.

Factors affecting fourth quarter results for the Company’s business segments included:

Access – Access segment sales for the fourth quarter of 2024 of $1.16 billion were relatively flat with the fourth quarter of 2023 as sales related to the acquisition of AUSA of $32.5 million were offset by lower international sales volume.

Access segment operating income in the fourth quarter of 2024 decreased 11.9 percent to $142.9 million, or 12.4 percent of sales, compared to $162.2 million, or 14.1 percent of sales, in the fourth quarter of 2023. The decrease was primarily due to unfavorable price/cost dynamics offset in part by favorable product mix.

Adjusted¹ operating income in the fourth quarter of 2024 was $151.6 million, or 13.1 percent of sales, compared to $165.6 million, or 14.4 percent of sales, in the fourth quarter of 2023.

Vocational – Vocational segment sales for the fourth quarter of 2024 increased $145.3 million, or 19.8 percent, to $880.6 million due to improved sales volume and improved pricing.

Vocational segment operating income in the fourth quarter of 2024 increased 149.8 percent to $110.9 million, or 12.6 percent of sales, compared to $44.4 million, or 6.0 percent of sales, in the fourth quarter of 2023. The increase was primarily due to improved price/cost dynamics and higher sales volume.

Adjusted¹ operating income in the fourth quarter of 2024 was $122.9 million, or 14.0 percent of sales, compared to $64.2 million, or 8.7 percent of sales, in the fourth quarter of 2023.

Defense – Defense segment sales for the fourth quarter of 2024 of $559.1 million were relatively flat with the fourth quarter of 2023 as NGDV production for the USPS was offset by the impact of changes in cumulative catch-up adjustments on contracts. Defense experienced unfavorable cumulative catch-up adjustments in the fourth quarter of 2024 primarily reflecting higher costs to complete units prior to delivery, whereas it experienced favorable cumulative catch-up adjustments on contract awards in the fourth quarter of 2023.

Defense segment operating income and adjusted¹ operating income in the fourth quarter of 2024 decreased 75.8 percent to $15.0 million, or 2.7 percent of sales, compared to $62.1 million, or 11.1 percent of sales, in the fourth quarter of 2023. The decrease was primarily the result of the impact of changes in cumulative catch-up adjustments and unfavorable product mix, partially offset by higher sales volume.

Corporate and other – Net operating costs for corporate and other in the fourth quarter of 2024 decreased $8.4 million to $44.9 million primarily due to lower new product development spending as well as improved Pratt Miller results.

Interest Expense Net of Interest Income – Interest expense net of interest income in the fourth quarter of 2024 increased $8.3 million to $29.1 million due to higher borrowings on the Company’s revolving credit facility.

Provision for Income Taxes – The Company recorded income tax expense in the fourth quarter of 2024 of $45.2 million, or 22.7 percent of pre-tax income, compared to $44.2 million, or 22.6 percent of pre-tax income, in the fourth quarter of 2023.

Repurchases of common stock – The Company repurchased 494,069 shares of common stock in the fourth quarter of 2024 for $50.4 million.

Full-Year Results

The Company reported net sales for 2024 of $10.76 billion and net income of $681.4 million, or $10.35 per diluted share. This compares with net sales of $9.66 billion and net income of $598.0 million, or $9.08 per diluted share, in the prior year. The increase in net income for 2024 was primarily due to improved price/cost dynamics, higher organic sales volume and favorable mix, partially offset by higher net interest expense, intangible asset impairments, the impact of changes in cumulative catch-up adjustments on contracts in the Defense segment, higher engineering costs and higher production costs.

Adjusted¹ net income for 2024 was $772.7 million, or $11.74 per diluted share, compared to $657.2 million, or $9.98 per diluted share, in 2023.

2025 Expectations

The Company announced its 2025 diluted earnings per share estimate of approximately $10.30 and its adjusted¹ earnings per share estimate of approximately $11.00 on projected net sales of approximately $10.6 billion.

Dividend Announcement

The Company’s Board of Directors today declared a quarterly cash dividend of $0.51 per share of Common Stock. The dividend represents an increase of 11 percent from the previous dividend and will be payable on March 3, 2025 to shareholders of record as of February 17, 2025.

Conference Call

The Company will host a conference call at 9:30 a.m. EST this morning to discuss its fourth quarter and full year 2024 results and its 2025 outlook. Slides for the call will be available on the Company’s website beginning at 7:00 a.m. EST this morning. The call will be simultaneously webcast. To access the webcast, go to oshkoshcorp.com at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.

Forward-Looking Statements

This news release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “confident” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, fire apparatus, refuse and recycling collection and air transportation equipment markets, which are particularly impacted by the strength of U.S. and European economies and construction seasons; the Company’s estimates of access equipment demand which, among other factors, is influenced by historical customer buying patterns and rental company fleet replacement strategies; the impact of orders and costs on the U.S. Postal Service contract; risks that a trade war and related tariffs could reduce the competitiveness of the Company’s products; the Company’s ability to increase prices to raise margins or to offset higher input costs; the Company’s ability to accurately predict future input costs associated with Defense contracts; the Company’s ability to attract and retain production labor in a timely manner; the Company’s ability to realize the anticipated benefits associated with the AeroTech acquisition; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and the cost of purchased materials; the impact of severe weather, war, natural disasters or pandemics that may affect the Company, its suppliers or its customers; the Company’s ability to predict the level and timing of orders for indefinite delivery/indefinite quantity contracts with the U.S. federal government; budget uncertainty for the U.S. federal government, including risks of future budget cuts, the impact of continuing resolution funding mechanisms and the potential for shutdowns; the impact of any U.S. Department of Defense solicitation for competition for future contracts to produce military vehicles; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches impacting the Company; the Company’s ability to successfully identify, complete and integrate other acquisitions and to realize the anticipated benefits associated with the same; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed today. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

About Oshkosh Corporation

At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs over 18,000 team members worldwide, all united behind a common purpose: to make a difference in people’s lives. Oshkosh products can be found in more than 150 countries under the brands of JLG^®, Pierce^®, MAXIMETAL, Oshkosh^® S-Series™, McNeilus^®, IMT^®, Jerr-Dan^®, Frontline™ Communications, Oshkosh^® Airport Products, Oshkosh AeroTech™, Oshkosh^® Defense and Pratt Miller. For more information, visit oshkoshcorp.com.

________________

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

¹This news release refers to GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. Oshkosh Corporation believes that the non-GAAP measures provide investors a useful comparison of the Company’s performance to prior period results. These non-GAAP measures may not be comparable to similarly-titled measures disclosed by other companies. A reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures can be found under the caption “Non-GAAP Financial Measures” in this news release.

OSHKOSH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except share and per share amounts; unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Net sales	$	2,623.4		$	2,466.8		$	10,755.5		$	9,657.9
Cost of sales		2,176.1			2,012.4			8,786.1			7,977.1
Gross income		447.3			454.4			1,969.4			1,680.8

Operating expenses:
Selling, general and administrative		209.2			224.3			852.4			810.4
Amortization of purchased intangibles		14.2			14.7			54.7			32.8
Intangible asset impairments		—			—			51.6			—
Total operating expenses		223.4			239.0			958.7			843.2
Operating income		223.9			215.4			1,010.7			837.6

Other income (expense):
Interest expense		(31.5	)		(22.3	)		(119.5	)		(68.6	)
Interest income		2.4			1.5			7.6			14.8
Miscellaneous, net		4.1			0.6			4.2			13.8
Income before income taxes and losses of unconsolidated affiliates		198.9			195.2			903.0			797.6
Provision for income taxes		45.2			44.2			210.0			190.0
Income before losses of unconsolidated affiliates		153.7			151.0			693.0			607.6
Losses of unconsolidated affiliates		(0.6	)		(0.2	)		(11.6	)		(9.6	)
Net income	$	153.1		$	150.8		$	681.4		$	598.0

Earnings per share:
Basic	$	2.35		$	2.30		$	10.41		$	9.15
Diluted		2.33			2.28			10.35			9.08

Basic weighted-average shares outstanding		65,248,981			65,439,100			65,458,797			65,382,275
Dilutive equity-based compensation awards		392,305			578,376			370,667			481,688
Diluted weighted-average shares outstanding		65,641,286			66,017,476			65,829,464			65,863,963

OSHKOSH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In millions; unaudited)

	December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	204.9		$	125.4
Receivables, net		1,254.7			1,316.4
Unbilled receivables, net		697.3			771.6
Inventories		2,265.7			2,131.6
Income taxes receivable		51.2			42.2
Other current assets		114.5			93.6
Total current assets		4,588.3			4,480.8
Property, plant and equipment:
Property, plant and equipment		2,394.6			2,162.6
Accumulated depreciation		(1,178.1	)		(1,093.1	)
Property, plant and equipment, net		1,216.5			1,069.5
Goodwill		1,410.1			1,416.4
Purchased intangible assets, net		777.6			830.2
Deferred income taxes		259.0			262.0
Deferred contract costs		842.6			710.7
Other non-current assets		389.8			359.6
Total assets	$	9,483.9		$	9,129.2

Liabilities and Shareholders’ Equity
Current liabilities:
Revolving credit facilities and current maturities of long-term debt	$	362.3		$	175.0
Accounts payable		1,143.4			1,214.5
Customer advances		648.8			706.9
Payroll-related obligations		246.2			242.5
Income taxes payable		140.1			308.0
Other current liabilities		507.3			442.7
Total current liabilities		3,048.1			3,089.6
Long-term debt, less current maturities		599.5			597.5
Non-current customer advances		1,154.4			1,190.7
Deferred income taxes		26.9			26.8
Other non-current liabilities		502.9			519.3
Commitments and contingencies
Shareholders’ equity		4,152.1			3,705.3
Total liabilities and shareholders’ equity	$	9,483.9		$	9,129.2

OSHKOSH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions; unaudited)

	Year Ended December 31,
	2024			2023
Operating activities:
Net income	$	681.4		$	598.0
Depreciation and amortization		200.1			159.9
Intangible asset impairments		51.6			—
Stock-based incentive compensation		38.1			31.9
Deferred income taxes		(17.9	)		(160.4	)
Other non-cash adjustments		3.2			9.5
Changes in operating assets and liabilities		(406.4	)		(39.3	)
Net cash provided by operating activities		550.1			599.6

Investing activities:
Additions to property, plant and equipment		(281.0	)		(325.3	)
Acquisition of businesses, net of cash acquired		(121.3	)		(995.8	)
Proceeds from sale of businesses, net of cash sold		7.0			32.6
Other investing activities		6.5			2.9
Net cash used in investing activities		(388.8	)		(1,285.6	)

Financing activities:
Proceeds from issuance of debt		4,327.4			1,616.5
Repayments of debt		(4,141.7	)		(1,467.0	)
Dividends paid		(120.0	)		(107.2	)
Repurchases of Common Stock		(116.0	)		(22.5	)
Other financing activities		(24.8	)		(16.4	)
Net cash provided by (used in) financing activities		(75.1	)		3.4

Effect of exchange rate changes on cash and cash equivalents		(6.7	)		2.1
Increase (decrease) in cash and cash equivalents		79.5			(680.5	)
Cash and cash equivalents at beginning of period		125.4			805.9
Cash and cash equivalents at end of period	$	204.9		$	125.4

OSHKOSH CORPORATION SEGMENT INFORMATION (In millions; unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Net Sales
Access
Aerial work platforms	$	545.6	$	540.4	$	2,443.9	$	2,461.6
Telehandlers		322.0		354.2		1,569.0		1,480.2
Other		289.4		255.7		1,151.8		1,048.2
Total Access		1,157.0		1,150.3		5,164.7		4,990.0
Vocational
Municipal fire apparatus		334.2		277.6		1,290.4		1,102.1
Airport products		234.4		201.1		862.6		376.7
Refuse and recycling vehicles		193.9		141.7		686.2		590.7
Other		118.1		114.9		471.1		508.6
Total Vocational		880.6		735.3		3,310.3		2,578.1
Defense
Defense^(a)		524.1		560.5		2,076.8		2,001.4
Delivery vehicles		35.0		—		103.7		—
Total Defense		559.1		560.5		2,180.5		2,001.4
Corporate and other^(a)		26.7		20.7		100.0		88.4
Consolidated	$	2,623.4	$	2,466.8	$	10,755.5	$	9,657.9

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Operating Income (Loss)
Access	$	142.9		$	162.2		$	805.4		$	738.8
Vocational		110.9			44.4			397.1			185.5
Defense^(a)		15.0			62.1			51.4			87.7
Corporate and other^(a)		(44.9	)		(53.3	)		(243.2	)		(174.4	)
Consolidated	$	223.9		$	215.4		$	1,010.7		$	837.6

	December 31,
	2024		2023
Period-end backlog:
Access	$	1,832.2	$	4,527.7
Vocational		6,318.1		5,464.2
Defense^(a)		6,040.7		6,710.7
Corporate and other^(a)		62.0		51.8
Consolidated	$	14,253.0	$	16,754.4

(a)

In July 2024, the Company moved the reporting responsibility for Pratt Miller from its Defense segment to the Chief Technology and Strategic Sourcing Officer to better utilize Pratt Miller’s expertise across the entire Oshkosh Corporation enterprise. Pratt Miller results are now reported within “Corporate and other” and historical information has been recast to reflect the change.

Non-GAAP Financial Measures

The Company reports its financial results in accordance with generally accepted accounting principles in the United States of America (GAAP). The Company is presenting various operating results both on a GAAP basis and on a basis excluding items that affect comparability of results. When the Company excludes certain items as described below, they are considered non-GAAP financial measures. The Company believes excluding the impact of these items is useful to investors in comparing the Company’s performance to prior period results. However, while adjusted operating income, adjusted net income and adjusted earnings per share exclude amortization of purchased intangibles, intangible asset impairments and amortization of inventory step-up, revenue and earnings of acquired companies are reflected in adjusted operating income, adjusted net income and adjusted earnings per share and intangible assets contribute to the generation of revenue and earnings. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s results prepared in accordance with GAAP. The table below presents a reconciliation of the Company’s presented non-GAAP measures to the most directly comparable GAAP measures (in millions, except per share amounts):

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Access segment operating income (GAAP)	$	142.9		$	162.2		$	805.4		$	738.8
Amortization of purchased intangibles		5.4			3.4			12.6			8.6
Amortization of inventory step-up		3.3			—			4.2			—
Adjusted Access segment operating income (non-GAAP)	$	151.6		$	165.6		$	822.2		$	747.4

Vocational segment operating income (GAAP)	$	110.9		$	44.4		$	397.1		$	185.5
Amortization of purchased intangibles		12.0			18.9			48.0			27.7
Acquisition costs		—			—			—			12.9
Loss on sale of a business		—			—			—			13.3
Amortization of inventory step-up		—			0.9			—			7.1
Restructuring costs		—			—			—			3.0
Adjusted Vocational segment operating income (non-GAAP)	$	122.9		$	64.2		$	445.1		$	249.5

Defense segment operating income (GAAP)	$	15.0		$	62.1		$	51.4		$	87.7
Gain on sale of a business		—			—			—			(8.0	)
Restructuring costs		—			—			—			0.8
Adjusted Defense segment operating income (non-GAAP)	$	15.0		$	62.1		$	51.4		$	80.5

Corporate and other operating loss (GAAP)	$	(44.9	)	$	(53.3	)	$	(243.2	)	$	(174.4	)
Amortization of purchased intangibles		0.8			1.3			4.3			5.4
Intangible asset impairments		—			—			51.6			—
Restructuring costs		—			—			—			0.6
Adjusted corporate and other operating loss (non-GAAP)	$	(44.1	)	$	(52.0	)	$	(187.3	)	$	(168.4	)

Consolidated operating income (GAAP)	$	223.9		$	215.4		$	1,010.7		$	837.6
Amortization of purchased intangibles		18.2			23.6			64.9			41.7
Amortization of inventory step-up		3.3			0.9			4.2			7.1
Intangible asset impairments		—			—			51.6			—
Acquisition costs		—			—			—			12.9
(Gain)/loss on sale of businesses, net		—			—			—			5.3
Restructuring costs		—			—			—			4.4
Adjusted consolidated operating income (non-GAAP)	$	245.4		$	239.9		$	1,131.4		$	909.0

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Miscellaneous, net (GAAP)	$	4.1		$	0.6		$	4.2		$	13.8
Pension advisor settlement		—			—			—			(4.7	)
Adjusted miscellaneous, net (non-GAAP)	$	4.1		$	0.6		$	4.2		$	9.1

Provision for income taxes (GAAP)	$	45.2		$	44.2		$	210.0		$	190.0
Income tax effects of adjustments		5.3			5.9			29.4			15.3
Adjusted provision for income taxes (non-GAAP)	$	50.5		$	50.1		$	239.4		$	205.3

Net income (GAAP)	$	153.1		$	150.8		$	681.4		$	598.0
Amortization of purchased intangibles		18.2			23.6			64.9			41.7
Intangible asset impairments		—			—			51.6			—
Amortization of inventory step-up		3.3			0.9			4.2			7.1
Acquisition costs		—			—			—			12.9
(Gain)/loss on sale of businesses, net		—			—			—			5.3
Restructuring costs		—			—			—			4.4
Pension advisor settlement		—			—			—			(4.7	)
Income tax effects of adjustments		(5.3	)		(5.9	)		(29.4	)		(15.3	)
Loss on sale of equity method investment		—			—			—			7.8
Adjusted net income (non-GAAP)	$	169.3		$	169.4		$	772.7		$	657.2

Earnings per share-diluted (GAAP)	$	2.33		$	2.28		$	10.35		$	9.08
Amortization of purchased intangibles		0.28			0.36			0.99			0.63
Intangible asset impairments		—			—			0.78			—
Amortization of inventory step-up		0.05			0.01			0.06			0.11
Acquisition costs		—			—			—			0.19
(Gain)/loss on sale of businesses, net		—			—			—			0.08
Restructuring costs		—			—			—			0.07
Pension advisor settlement		—			—			—			(0.07	)
Income tax effects of adjustments		(0.08	)		(0.09	)		(0.44	)		(0.23	)
Loss on sale of equity method investment		—			—			—			0.12
Adjusted earnings per share-diluted (non-GAAP)	$	2.58		$	2.56		$	11.74		$	9.98

	2025 Expectations
Earnings per share-diluted (GAAP)	$	10.30
Amortization of purchased intangibles, net of tax		0.70
Adjusted earnings per share-diluted (non-GAAP)	$	11.00

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KEYWORDS: Wisconsin United States North America

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January 30, 2025 7:03 am

Cullinan Therapeutics to Participate in Fireside Chat at the Guggenheim Securities SMID Cap Biotech Conference

CAMBRIDGE, Mass., Jan. 30, 2025 (GLOBE NEWSWIRE) — Cullinan Therapeutics, Inc. (Nasdaq: CGEM; “Cullinan”), a biopharmaceutical company focused on developing modality-agnostic targeted therapies, today announced that Nadim Ahmed, Chief Executive Officer, and Jeffrey Jones, M.D., M.B.A., Chief Medical Officer, will participate in a fireside chat at the Guggenheim Securities SMID Cap Biotech Conference, being held in New York on February 5 and 6, 2025.

The fireside chat is scheduled for Wednesday, February 5, 2025, at 9:30 a.m. ET. A webcast of the fireside chat will be available under the Events and Presentations section of the Company’s investor relations website at https://cullinantherapeutics.com/events-and-presentations/.

About Cullinan Therapeutics

Cullinan Therapeutics, Inc. (Nasdaq: CGEM) is a biopharmaceutical company dedicated to creating new standards of care for patients. Cullinan has strategically built a diversified portfolio of clinical-stage assets that inhibit key drivers of disease or harness the immune system to eliminate diseased cells in both autoimmune diseases and cancer. Cullinan’s portfolio encompasses a wide range of modalities, each with the potential to be best and/or first in class. Anchored in a deep understanding of oncology, immunology, and translational medicine, we create differentiated ideas, identify the most appropriate targets, and select the optimal modality to develop transformative therapeutics across a wide variety of autoimmune and cancer indications. We push conventional boundaries from candidate selection to differentiated therapeutic, applying rigorous go/no go criteria at each stage of development to fast-track only the most promising molecules to the clinic and, ultimately, commercialization. With deep scientific expertise, our teams exercise creativity and urgency to deliver on our promise to bring new therapeutic solutions to patients. Learn more about Cullinan at https://cullinantherapeutics.com/, and follow us on LinkedIn and X.

Contacts:

Investor Relations

Nick Smith
+1 401.241.3516
[email protected]

Media

Rose Weldon
+1 215.801.7644
[email protected]

January 30, 2025 7:03 am

Asbury Automotive Group Reports Record Fourth Quarter Results

Asbury Automotive Group Reports Record Fourth Quarter Results

All-time record quarterly revenue of $4.5 billion, growth of 18%

All-time record Parts & Service gross profit of $340 million, growth of 19%; same store Parts & Service gross profit growth of 11%

Same store SG&A as a percentage of gross profit of 63.0%; same store adjusted SG&A as a percentage of gross profit, a non-GAAP measure, of 62.0%

Back-to-back quarters of improved SG&A as a percentage of gross profit and adjusted SG&A as a percentage of gross profit, a non-GAAP measure; 137 bps and 141 bps, respectively, versus third quarter 2024

EPS of $6.54 per diluted share; adjusted EPS, a non-GAAP measure, of $7.26 per diluted share

DULUTH, Ga.–(BUSINESS WIRE)–
Asbury Automotive Group, Inc. (NYSE: ABG) (the “Company”), one of the largest automotive retail and service companies in the U.S., reported fourth quarter 2024 net income of $129 million ($6.54 per diluted share), an increase of 132% from $56 million ($2.70 per diluted share) in fourth quarter 2023. The Company reported fourth quarter 2024 adjusted net income, a non-GAAP measure, of $143 million ($7.26 per diluted share), a decrease of 2% from $146 million ($7.12 per diluted share) in fourth quarter 2023.

“Asbury delivered strong fourth quarter results, setting records for total revenue, and growing our Parts & Service gross profit by double digits,” said David Hult, Asbury’s President and Chief Executive Officer. “Our results also showcased our commitment to operating the business efficiently, delivering lower SG&A costs as a percent of gross profit for the second quarter in a row. Our results are a testament to the hard work of our exceptional team members and further affirm our confidence in the company’s strategic growth plan and investments in people and technology.”

The financial measures discussed below include both GAAP and adjusted (non-GAAP) financial measures. Please see “Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data” and the reconciliations for non-GAAP metrics used herein.

Adjusted net income for fourth quarter 2024 excludes, net of tax, $11 million of non-cash asset impairments ($0.55 per diluted share), $5 million of losses related to Hurricane Milton ($0.25 per diluted share), and $1 million related to proceeds from the termination of a franchise ($0.07 per diluted share).

Adjusted net income for fourth quarter 2023 excludes, net of tax, $88 million ($4.29 per diluted share) of non-cash asset impairments, $1 million ($0.04 per diluted share) of non-cash fixed asset write-offs, and $2 million ($0.09 per diluted share) of professional fees related to the acquisition of the Jim Koons Automotive Companies.

Fourth Quarter 2024 Operational Summary

Total Company vs. 4^thQuarter 2023:

Revenue of $4.5 billion, increase of 18%

Gross profit of $750 million, increase of 11%

Gross margin decreased 101 bps to 16.6%

New vehicle unit volume increase of 18%; new vehicle revenue increase of 19%; new vehicle gross profit increase of 1%

Used vehicle retail unit volume increase of 15%; used vehicle retail revenue increase of 14%; used vehicle retail gross profit decrease of 2%

Finance and insurance (F&I) per vehicle retailed (PVR) of $2,236, decrease of 3%

Parts and service revenue increase of 15%; gross profit increase of 19%

SG&A as a percentage of gross profit of 63.6%

Adjusted SG&A as a percentage of gross profit of 63.0%

Operating margin of 5.3%

Adjusted operating margin of 5.7%

Same Store vs. 4^thQuarter 2023:

Revenue of $3.8 billion, increase of 6%

Gross profit of $649 million, increase of 2%

Gross margin decreased 70 bps to 17.0%

New vehicle unit volume increase of 7%; new vehicle revenue increase of 8%; new vehicle gross profit decrease of 9%

Used vehicle retail unit volume decrease of 1%; used vehicle retail revenue decrease of 1%; used vehicle retail gross profit decrease of 6%

F&I PVR of $2,238, decrease of 3%

Parts and service revenue increase of 6%; gross profit increase of 11%

SG&A as a percentage of gross profit of 63.0%

Adjusted SG&A as a percentage of gross profit of 62.0%

Operating margin of 5.5%

Adjusted operating margin of 6.0%

Full Year 2024 Results

For the full year 2024, the Company reported net income of $430 million ($21.50 per diluted share) compared to $603 million ($28.74 per diluted share) in the prior year, a 25% decrease in EPS. Adjusted net income (a non-GAAP measure) for 2024 was $545 million ($27.24 per diluted share) compared to $684 million ($32.60 per diluted share) in the prior year, a 16% decrease in adjusted EPS.

Total revenue for the full year 2024 was an all-time record of $17.2 billion, an increase of 16%; total revenue on a same-store basis decreased 1%. Total adjusted EBITDA for the full year 2024 was $982 million, a decrease of 13% from the prior year. Adjusted operating cash flow for the full year was $688 million, a decrease of 2% from the prior year.

Liquidity and Leverage

As of December 31, 2024, the Company had cash and floorplan offset accounts of $156 million (which excludes $30 million of cash at Total Care Auto, Powered by Landcar) and availability under the used vehicle floorplan line and revolver of $672 million for a total of $828 million in liquidity. The Company’s transaction adjusted net leverage ratio, which is calculated as set forth in our credit facility, was 2.85x at quarter end.

Share Repurchases

For the full year 2024, the Company has repurchased approximately 830,000 shares for $183 million. As of December 31, 2024, the Company had approximately $276 million remaining on its share repurchase authorization.

The shares may be purchased from time to time in the open market, in privately negotiated transactions or in other manners as permitted by federal securities laws and other legal and contractual requirements. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchase will depend on such factors as Asbury’s stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic dealership acquisitions and capital investments and other considerations. The program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice.

Earnings Call

Additional commentary regarding the fourth quarter results will be provided during the earnings conference call on Thursday, January 30, 2025, at 10:00 a.m. ET.

The conference call will be simulcast live on the internet. The webcast, together with supplemental materials, and can be accessed by logging onto https://investors.asburyauto.com. A replay and the accompanying materials will be available on this site for at least 30 days.

In addition, live audio will be accessible to the public. Participants may enter the conference call five to ten minutes prior to the scheduled start of the call by dialing:

Domestic:	(877) 407-2988
International:	+1 (201) 389-0923
Passcode:	13751028

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a multi-year plan to increase revenue and profitability strategically through organic operations, acquisitive growth and innovative technologies, with its guest-centric approach as Asbury’s constant North Star. As of December 31, 2024, Asbury operated 152 new vehicle dealerships, consisting of 198 franchises and representing 31 domestic and foreign brands of vehicles. Asbury also operates Total Care Auto, Powered by Landcar, a leading provider of service contracts and other vehicle protection products, and 37 collision repair centers. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, and prepaid maintenance. Asbury is recognized as one of America’s Fastest Growing Companies 2024 by the Financial Times and the Company is listed in World’s Most Trustworthy Companies 2024 by Newsweek.

For additional information, visit www.asburyauto.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, objectives, beliefs, expectations and assumptions, projections regarding Asbury’s financial position, liquidity, results of operations, cash flows, leverage, market position, the timing and amount of any stock repurchases, and dealership portfolio, revenue enhancement strategies, operational improvements, projections regarding the expected benefits of Clicklane, management’s plans, projections and objectives for future operations, scale and performance, integration plans and expected synergies from acquisitions, capital allocation strategy, business strategy. These statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, adverse outcomes with respect to current and future litigation and other proceedings; our inability to realize the benefits expected from recently completed transactions; our inability to promptly and effectively integrate completed transactions and the diversion of management’s attention from ongoing business and regular business responsibilities; our inability to complete future acquisitions or divestitures and the risks resulting therefrom; any supply chain disruptions impacting our industry and business, market factors, Asbury’s relationships with, and the financial and operational stability of, vehicle manufacturers and other suppliers, acts of God, natural disasters including hurricanes, acts of war or other incidents and the shortage of semiconductor chips and other components, which may adversely impact supply from vehicle manufacturers and/or present retail sales challenges; risks associated with Asbury’s indebtedness and our ability to comply with applicable covenants in our various financing agreements, or to obtain waivers of these covenants as necessary; risks related to competition in the automotive retail and service industries, general economic conditions both nationally and locally; governmental regulations and legislation, including changes in automotive state franchise laws; our ability to execute its strategic and operational strategies and initiatives, including Asbury’s five-year strategic plan; our ability to leverage gains from Asbury’s dealership portfolio; our ability to capitalize on opportunities to repurchase Asbury’s debt and equity securities or purchase properties that Asbury currently leases; and our ability to stay within Asbury’s targeted range for capital expenditures. There can be no guarantees that Asbury’s plans for future operations will be successfully implemented or that they will prove to be commercially successful.

These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are and will be discussed in Asbury’s filings with the U.S. Securities and Exchange Commission from time to time, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Disclosure and Reconciliation, Same Store Data and Other Data

In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitability improvement initiatives, and other events outside of normal or “core” business and operations, by considering certain alternative financial measures not prepared in accordance with GAAP. These measures include “Adjusted income from operations,” “Adjusted net income,” “Adjusted operating margins,” “Adjusted EBITDA,” “Adjusted diluted earnings per share (“EPS”),” “Adjusted SG&A,” “Adjusted operating cash flow,” “Transaction adjusted EBITDA” and “Transaction adjusted net leverage ratio.” Further, management assesses the organic growth of our revenue and gross profit on a same store basis. We believe that our assessment on a same store basis represents an important indicator of comparative financial performance and provides relevant information to assess our performance at our existing locations.

Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not be comparable to similarly titled measures used by other companies. As a result, any non-GAAP financial measures considered and evaluated by management are reviewed in conjunction with a review of the most directly comparable measures calculated in accordance with GAAP. Management cautions investors not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. In their evaluation of results from time to time, management excludes items that do not arise directly from core operations or are otherwise of an unusual or non-recurring nature. Because these non-core, unusual or non-recurring charges and gains materially affect Asbury’s financial condition or results in the specific period in which they are recognized, management also evaluates and makes resource allocation and performance evaluation decisions based on the related non-GAAP measures excluding such items. In addition to using such non-GAAP measures to evaluate results in a specific period, management believes that such measures may provide more complete and consistent comparisons of operational performance on a period-over-period historical basis and a better indication of expected future trends. Management discloses these non-GAAP measures, and the related reconciliations, because it believes investors use these metrics in evaluating longer-term period-over-period performance, and to allow investors to better understand and evaluate the information used by management to assess operating performance.

Due to the significant effects that dealership acquisitions and divestitures have on our results of operations, and in order to provide more meaningful comparisons, we present herein “Transaction adjusted EBITDA” and “Transaction adjusted net leverage ratio” (collectively, the “Transaction Adjusted Metrics”), which reflect the effects of the dealership acquisitions and divestitures, if any, as if they had occurred on the first day of the last twelve-month periods being presented. For acquisitions, the pre-acquisition period amount being included in Transaction adjusted EBITDA is determined by pro-rating the forecasted adjusted EBITDA for the year following the acquisition. For divestitures, including divestitures due to requirements in connection with an acquisition, the adjusted EBITDA associated with the divestiture(s) is excluded from Transaction adjusted EBITDA. We believe the Transaction Adjusted Metrics provide relevant information to assess our performance at our existing dealership locations for the last twelve-month periods being presented.

The Transaction Adjusted Metrics do not include any adjustments for other events attributable to the dealership acquisitions or divestitures unless otherwise described. We cannot assure you that such financial information would not be materially different if such information were audited or that our actual results would not differ materially from the Transaction Adjusted Metrics if the dealership acquisitions or divestitures had been completed as of the beginning of the last twelve-month periods being presented.

Same store amounts consist of information from dealerships for identical months in each comparative period, commencing with the first month we owned the dealership. Additionally, amounts related to divested dealerships are excluded from each comparative period.

Amounts presented herein have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute or tie to prior presentation due to rounding.


ASBURY AUTOMOTIVE GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited)

	For the Three Months Ended December 31,				% Change		For the Twelve Months Ended December 31,						% Change
		2024		2023	% Change			2024			2023		% Change
REVENUE:
New vehicle	$	2,457.1	$	2,058.5	19	%	$	8,849.7		$	7,630.7		16	%
Used vehicle:
Retail		1,098.9		965.8	14	%		4,605.9			4,017.5		15	%
Wholesale		159.6		102.9	55	%		612.3			396.7		54	%
Total used vehicle		1,258.5		1,068.7	18	%		5,218.2			4,414.3		18	%
Parts and service		590.4		513.4	15	%		2,354.7			2,081.5		13	%
Finance and insurance, net		198.5		171.2	16	%		766.0			676.2		13	%
TOTAL REVENUE		4,504.5		3,811.7	18	%		17,188.6			14,802.7		16	%
COST OF SALES:
New vehicle		2,285.0		1,887.6	21	%		8,209.3			6,927.8		18	%
Used vehicle:
Retail		1,047.7		913.5	15	%		4,377.3			3,769.0		16	%
Wholesale		157.7		101.2	56	%		595.4			381.2		56	%
Total used vehicle		1,205.4		1,014.6	19	%		4,972.7			4,150.2		20	%
Parts and service		250.4		228.1	10	%		1,003.5			931.0		8	%
Finance and insurance		13.9		8.3	66	%		54.4			37.9		43	%
TOTAL COST OF SALES		3,754.7		3,138.7	20	%		14,240.0			12,046.9		18	%
GROSS PROFIT		749.9		673.0	11	%		2,948.6			2,755.8		7	%
OPERATING EXPENSES:
Selling, general, and administrative		476.9		414.0	15	%		1,888.5			1,617.4		17	%
Depreciation and amortization		19.2		17.2	12	%		75.0			67.7		11	%
Asset impairments		14.1		117.2	(88	)%		149.5			117.2		28	%
INCOME FROM OPERATIONS		239.7		124.6	92	%		835.6			953.5		(12	)%
OTHER EXPENSES:
Floor plan interest expense		23.7		8.2	190	%		89.9			9.6		NM
Other interest expense, net		44.2		40.8	9	%		179.1			156.1		15	%
Gain on dealership divestitures, net		—		—	—	%		(8.6	)		(13.5	)	(36	)%
Total other expenses, net		68.0		48.9	39	%		260.3			152.2		71	%
INCOME BEFORE INCOME TAXES		171.7		75.6	127	%		575.3			801.3		(28	)%
Income tax expense		42.9		20.1	114	%		145.0			198.8		(27	)%
NET INCOME	$	128.8	$	55.5	132	%	$	430.3		$	602.5		(29	)%
EARNINGS PER SHARE:
Basic—
Net income	$	6.58	$	2.72	142	%	$	21.58		$	28.87		(25	)%
Diluted—
Net income	$	6.54	$	2.70	142	%	$	21.50		$	28.74		(25	)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		19.6		20.4				19.9			20.9
Restricted stock		0.1		—				—			—
Performance share units		—		0.1				0.1			0.1
Diluted		19.7		20.5				20.0			21.0

_____________________________ NM—Not Meaningful


ASBURY AUTOMOTIVE GROUP, INC. Additional Disclosures-Consolidated (In millions) (Unaudited)

	December 31, 2024		December 31, 2023		Increase (Decrease)			% Change
SELECTED BALANCE SHEET DATA
Cash and cash equivalents	$	69.4	$	45.7	$	23.7		52	%
Inventory, net (a)		1,978.8		1,768.3		210.5		12	%
Total current assets		3,137.9		3,057.1		80.9		3	%
Floor plan notes payable		1,694.7		1,785.7		(91.0	)	(5	)%
Total current liabilities		2,836.3		2,875.7		(39.4	)	(1	)%
CAPITALIZATION:
Long-term debt (including current portion)	$	3,138.6	$	3,206.2	$	(67.6	)	(2	)%
Shareholders’ equity		3,502.1		3,244.1		257.9		8	%
Total	$	6,640.7	$	6,450.3	$	190.4		3	%

_____________________________ (a) Excluding $58.7 million and $84.5 million of inventory classified as assets held for sale as of December 31, 2024 and December 31, 2023, respectively.



	December 31, 2024	September 30, 2024	December 31, 2023
Days Supply
New vehicle inventory	49	63	43
Used vehicle inventory	37	38	32

_____________________________ Days supply of inventory is calculated based on new and used inventory, in units, at the end of each reporting period and a 30-day historical unit sales.


Brand Mix – New Vehicle Revenue by Brand

	For the Three Months Ended December 31,
	2024		2023
Luxury
Lexus	10	%	12	%
Mercedes-Benz	8	%	8	%
BMW	3	%	3	%
Land Rover	2	%	2	%
Porsche	2	%	2	%
Acura	2	%	1	%
Other luxury	4	%	5	%
Total luxury	32	%	34	%
Imports
Toyota	18	%	18	%
Honda	8	%	9	%
Hyundai	6	%	4	%
Nissan	2	%	2	%
Subaru	2	%	2	%
Kia	2	%	1	%
Other imports	2	%	2	%
Total imports	40	%	39	%
Domestic
Ford	13	%	10	%
Chrysler, Dodge, Jeep, Ram	8	%	11	%
Chevrolet, Buick, GMC	8	%	6	%
Total domestic	28	%	27	%
Total New Vehicle Revenue	100	%	100	%


	For the Three Months Ended December 31,
	2024		2023
Revenue mix
New vehicle	54.5	%	54.0	%
Used vehicle retail	24.4	%	25.3	%
Used vehicle wholesale	3.5	%	2.7	%
Parts and service	13.1	%	13.5	%
Finance and insurance, net	4.4	%	4.5	%
Total revenue	100.0	%	100.0	%
Gross profit mix
New vehicle	22.9	%	25.4	%
Used vehicle retail	6.8	%	7.8	%
Used vehicle wholesale	0.3	%	0.3	%
Parts and service	45.3	%	42.4	%
Finance and insurance, net	24.6	%	24.2	%
Total gross profit	100.0	%	100.0	%


ASBURY AUTOMOTIVE GROUP, INC. OPERATING HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited)

	For the Three Months Ended December 31,						% Change		For the Twelve Months Ended December 31,						% Change
		2024			2023		% Change			2024			2023		% Change
Revenue
New vehicle	$	2,457.1		$	2,058.5		19	%	$	8,849.7		$	7,630.7		16	%
Used vehicle:
Retail		1,098.9			965.8		14	%		4,605.9			4,017.5		15	%
Wholesale		159.6			102.9		55	%		612.3			396.7		54	%
Total used vehicle		1,258.5			1,068.7		18	%		5,218.2			4,414.3		18	%
Parts and service		590.4			513.4		15	%		2,354.7			2,081.5		13	%
Finance and insurance, net		198.5			171.2		16	%		766.0			676.2		13	%
Total revenue	$	4,504.5		$	3,811.7		18	%	$	17,188.6		$	14,802.7		16	%
Gross profit
New vehicle	$	172.1		$	170.8		1	%	$	640.4		$	703.0		(9	)%
Used vehicle:
Retail		51.2			52.3		(2	)%		228.6			248.5		(8	)%
Wholesale		1.9			1.8		8	%		16.8			15.5		9	%
Total used vehicle		53.1			54.0		(2	)%		245.4			264.0		(7	)%
Parts and service		340.1			285.3		19	%		1,351.2			1,150.6		17	%
Finance and insurance, net		184.6			162.8		13	%		711.6			638.2		11	%
Total gross profit	$	749.9		$	673.0		11	%	$	2,948.6		$	2,755.8		7	%
Unit sales
New vehicle:
Luxury		10,579			9,697		9	%		36,827			35,300		4	%
Import		24,593			20,725		19	%		91,243			77,740		17	%
Domestic		12,083			9,475		28	%		45,148			36,469		24	%
Total new vehicle		47,255			39,897		18	%		173,218			149,509		16	%
Used vehicle retail		35,328			30,778		15	%		150,698			127,507		18	%
Used to new ratio		74.8	%		77.1	%				87.0	%		85.3	%
Average selling price
New vehicle	$	51,996		$	51,595		1	%	$	51,090		$	51,038		—	%
Used vehicle retail	$	31,106		$	31,378		(1	)%	$	30,564		$	31,508		(3	)%
Average gross profit per unit
New vehicle:
Luxury	$	7,118		$	7,281		(2	)%	$	7,018		$	7,770		(10	)%
Import		2,495			2,966		(16	)%		2,601			3,419		(24	)%
Domestic		2,931			4,090		(28	)%		3,203			4,466		(28	)%
Total new vehicle		3,641			4,282		(15	)%		3,697			4,702		(21	)%
Used vehicle retail		1,449			1,699		(15	)%		1,517			1,949		(22	)%
Finance and insurance		2,236			2,304		(3	)%		2,197			2,304		(5	)%
Front end yield (1)		4,939			5,461		(10	)%		4,880			5,739		(15	)%
Gross margin
Total new vehicle		7.0	%		8.3	%	(130)	bps		7.2	%		9.2	%	(198)	bps
Used vehicle retail		4.7	%		5.4	%	(75)	bps		5.0	%		6.2	%	(122)	bps
Parts and service		57.6	%		55.6	%	202	bps		57.4	%		55.3	%	211	bps
Total gross profit margin		16.6	%		17.7	%	(101)	bps		17.2	%		18.6	%	(146)	bps
Operating expenses
Selling, general, and administrative	$	476.9		$	414.0		15	%	$	1,888.5		$	1,617.4		17	%
Adjusted selling, general, and administrative	$	472.4		$	410.5		15	%	$	1,877.0		$	1,613.2		16	%
SG&A as a % of gross profit		63.6	%		61.5	%	208	bps		64.0	%		58.7	%	536	bps
Adjusted SG&A as a % of gross profit		63.0	%		61.0	%	200	bps		63.7	%		58.5	%	512	bps
Income from operations as a % of revenue		5.3	%		3.3	%	205	bps		4.9	%		6.4	%	(158)	bps
Income from operations as a % of gross profit		32.0	%		18.5	%	1,345	bps		28.3	%		34.6	%	(626)	bps
Adjusted income from operations as a % of revenue		5.7	%		6.4	%	(70)	bps		5.8	%		7.3	%	(146)	bps
Adjusted income from operations as a % of gross profit		34.4	%		36.4	%	(200)	bps		33.8	%		39.0	%	(520)	bps

_________________________ (1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales.


ASBURY AUTOMOTIVE GROUP, INC. SAME STORE OPERATING HIGHLIGHTS-CONSOLIDATED (In millions) (Unaudited)

	For the Three Months Ended December 31,						% Change		For the Twelve Months Ended December 31,						% Change
		2024			2023		% Change			2024			2023		% Change
Revenue
New vehicle	$	2,108.0		$	1,943.3		8	%	$	7,454.9		$	7,426.4		—	%
Used vehicle:
Retail		896.8			902.8		(1	)%		3,686.6			3,897.7		(5	)%
Wholesale		116.2			96.0		21	%		449.4			378.8		19	%
Total used vehicle		1,013.0			998.8		1	%		4,136.0			4,276.5		(3	)%
Parts and service		521.7			490.7		6	%		2,064.2			2,028.3		2	%
Finance and insurance, net		167.4			161.1		4	%		630.4			660.7		(5	)%
Total revenue	$	3,810.0		$	3,594.0		6	%	$	14,285.5		$	14,392.0		(1	)%
Gross profit
New vehicle	$	147.4		$	161.8		(9	)%	$	537.6		$	687.5		(22	)%
Used vehicle:
Retail		44.9			48.0		(6	)%		190.5			240.7		(21	)%
Wholesale		1.2			1.7		(25	)%		10.8			15.6		(31	)%
Total used vehicle		46.2			49.7		(7	)%		201.2			256.2		(21	)%
Parts and service		301.9			273.0		11	%		1,188.3			1,122.8		6	%
Finance and insurance, net		153.5			152.8		—	%		576.0			622.8		(8	)%
Total gross profit	$	649.0		$	637.3		2	%	$	2,503.2		$	2,689.4		(7	)%
Unit sales
New vehicle:
Luxury		10,352			9,542		8	%		35,775			34,947		2	%
Import		21,104			19,316		9	%		76,662			74,509		3	%
Domestic		8,803			8,641		2	%		32,362			35,447		(9	)%
Total new vehicle		40,259			37,499		7	%		144,799			144,903		—	%
Used vehicle retail		28,357			28,657		(1	)%		119,297			123,007		(3	)%
Used to new ratio		70.4	%		76.4	%				82.4	%		84.9	%
Average selling price
New vehicle	$	52,360		$	51,824		1	%	$	51,484		$	51,251		—	%
Used vehicle retail	$	31,625		$	31,504		—	%	$	30,902		$	31,687		(2	)%
Average gross profit per unit
New vehicle:
Luxury	$	7,172		$	7,311		(2	)%	$	7,096		$	7,789		(9	)%
Import		2,266			2,931		(23	)%		2,377			3,441		(31	)%
Domestic		2,878			4,096		(30	)%		3,137			4,483		(30	)%
Total new vehicle		3,661			4,314		(15	)%		3,713			4,745		(22	)%
Used vehicle retail		1,584			1,675		(5	)%		1,597			1,957		(18	)%
Finance and insurance		2,238			2,310		(3	)%		2,181			2,325		(6	)%
Front end yield (1)		5,040			5,481		(8	)%		4,938			5,789		(15	)%
Gross margin
Total new vehicle		7.0	%		8.3	%	(133)	bps		7.2	%		9.3	%	(205)	bps
Used vehicle retail		5.0	%		5.3	%	(31)	bps		5.2	%		6.2	%	(101)	bps
Parts and service		57.9	%		55.6	%	224	bps		57.6	%		55.4	%	221	bps
Total gross profit margin		17.0	%		17.7	%	(70)	bps		17.5	%		18.7	%	(116)	bps
Operating expenses
Selling, general, and administrative	$	408.6		$	389.1		5	%	$	1,590.4		$	1,566.7		2	%
Adjusted selling, general, and administrative	$	402.2		$	388.0		4	%	$	1,577.0		$	1,566.7		1	%
SG&A as a % of gross profit		63.0	%		61.1	%	189	bps		63.5	%		58.3	%	528	bps
Adjusted SG&A as a % of gross profit		62.0	%		60.9	%	109	bps		63.0	%		58.3	%	474	bps

_____________________________ (1) Front end yield is calculated as gross profit from new vehicles, used retail vehicles and finance and insurance (net), divided by combined new and used retail unit sales.


ASBURY AUTOMOTIVE GROUP, INC. SEGMENT REPORTING (Unaudited)

	For the Three Months Ended December 31, 2024							For the Three Months Ended December 31, 2023
	Dealerships		TCA		Total			Dealerships		TCA		Total
	(In millions)
Revenue from external customers	$	4,427.4	$	77.1	$	4,504.5		$	3,737.6	$	74.1	$	3,811.7
Intersegment revenue		55.5		—		55.5			47.3		—		47.3
	$	4,483.0	$	77.1	$	4,560.1		$	3,785.0	$	74.1	$	3,859.0
Reconciliation of revenue
Elimination of inter-segment revenue						(55.5	)						(47.3	)
Total consolidated revenue					$	4,504.5						$	3,811.7

Less:
Cost of sales
New vehicle		2,285.0		—					1,887.6		—
Used vehicle		1,205.4		—					1,014.6		—
Parts and service		260.2		—					232.6		—
Finance and insurance		—		57.7					—		56.5
Selling, general and administrative expenses
Personnel costs		317.0		—					277.0		—
Rent and related expenses		39.2		—					29.0		—
Advertising		14.0		—					13.7		—
Other selling, general and administrative expense		108.9		—					99.0		—
Other segment items		—		1.9					—		1.7
Depreciation and amortization		19.1		0.1					17.0		0.2
Floor plan interest expense		23.7		—					8.2		—
Segment operating income*	$	210.5	$	17.4	$	227.9		$	206.2	$	15.7	$	221.9

Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations						(55.5	)						(47.3	)
Total intersegment cost of sales eliminations						53.6							52.6
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)						4.1							6.3
Total intersegment eliminations						2.1							11.6
Asset impairments						(14.1	)						(117.2	)
Other interest expense, net						(44.2	)						(40.8	)
Income before income taxes					$	171.7						$	75.6

______________________________ *Segment operating income is calculated as GAAP operating income, excluding the effects of asset impairments and including floor plan interest expense.


	For the Twelve Months Ended December 31, 2024							For the Twelve Months Ended December 31, 2023
	Dealerships		TCA		Total			Dealerships		TCA		Total
	(In millions)
Revenue from external customers	$	16,885.0	$	303.6	$	17,188.6		$	14,517.5	$	285.2	$	14,802.7
Intersegment revenue		222.5		—		222.5			181.5		—		181.5
	$	17,107.5	$	303.6	$	17,411.1		$	14,699.0	$	285.2	$	14,984.2
Reconciliation of revenue
Elimination of inter-segment revenue						(222.5	)						(181.5	)
Total consolidated revenue					$	17,188.6						$	14,802.7

Less:
Cost of sales
New vehicle		8,209.3		—					6,927.8		—
Used vehicle		4,972.7		—					4,150.2		—
Parts and service		1,043.0		—					949.9		—
Finance and insurance		—		223.4					—		208.1
Selling, general and administrative expenses
Personnel costs		1,256.2		—					1,106.5		—
Rent and related expenses		142.3		—					118.7		—
Advertising		61.8		—					47.3		—
Other selling, general and administrative expense		441.0		—					366.0		—
Other segment items		—		7.0					—		7.4
Depreciation and amortization		74.6		0.4					67.1		0.7
Floor plan interest expense		89.9		—					9.6		—
Segment operating income*	$	816.7	$	72.8	$	889.5		$	955.9	$	69.0	$	1,025.0

Reconciliation of segment operating income
Intersegment eliminations
Total intersegment revenue eliminations						(222.5	)						(181.5	)
Total intersegment cost of sales eliminations						208.5							189.1
Deferral of SG&A expense (related to capitalized contract costs offset by amortization)						19.7							28.5
Total intersegment eliminations						5.8							36.1
Asset impairments						(149.5	)						(117.2	)
Other interest expense, net						(179.1	)						(156.1	)
Gain on dealership divestitures, net						8.6							13.5
Income before income taxes					$	575.3						$	801.3

______________________________ *Segment operating income is calculated as GAAP operating income, excluding the effects of asset impairments and including floor plan interest expense.


ASBURY AUTOMOTIVE GROUP, INC. Supplemental Disclosures (Unaudited)

The following tables provide reconciliations for our non-GAAP metrics:

	For the Three Months Ended					For the Twelve Months Ended
	December 31, 2024			December 31, 2023		December 31, 2024			September 30, 2024
	(Dollars in millions)
Adjusted leverage ratio:
Long-term debt						$	3,138.6		$	3,382.8
Cash and floor plan offset							(186.1	)		(257.5	)
TCA cash							30.5			55.6
Availability under our used vehicle floor plan facility							(186.1	)		(310.3	)
Adjusted long-term net debt						$	2,796.9		$	2,870.6

Calculation of earnings before interest, taxes, depreciation and amortization (“EBITDA”):
Net income	$	128.8		$	55.5	$	430.3		$	357.1

Depreciation and amortization		19.2			17.2		75.0			73.0
Income tax expense		42.9			20.1		145.0			122.2
Swap and other interest expense		44.3			41.1		179.3			176.1
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)	$	235.2		$	133.9	$	829.6		$	728.3

Non-core items – expense (income):
Gain on dealership divestitures	$	—		$	—	$	(8.6	)	$	(8.6	)
Proceeds from franchise termination		(1.9	)		—		(1.9	)		—
Asset impairments		14.1			117.2		149.5			252.6
Hail damage		—			—		7.1			7.1
Hurricane Milton losses		6.4			—		6.4			—
Professional fees associated with acquisition		—			2.4		—			2.4
Fixed assets write-off		—			1.1		—			1.1
Total non-core items		18.6			120.7		152.4			254.5

Adjusted EBITDA	$	253.8		$	254.6	$	982.0		$	982.8

Impact of dealership acquisitions and divestitures						$	(1.0	)	$	17.2
Transaction adjusted EBITDA						$	981.0		$	1,000.0

Transaction adjusted net leverage ratio							2.85			2.87

	Three Months Ended December 31, 2024
	GAAP			Proceeds from franchise termination			Asset impairments		Hurricane Milton losses					Income tax effect			Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	476.9		$	1.9		$	—	$	(6.4	)			$	—		$	472.4
Income from operations	$	239.7		$	(1.9	)	$	14.1	$	6.4				$	—		$	258.3
Net income	$	128.8		$	(1.9	)	$	14.1	$	6.4				$	(4.3	)	$	143.1

Weighted average common share outstanding – diluted		19.7																19.7

Diluted EPS	$	6.54		$	(0.07	)	$	0.55	$	0.25				$	—		$	7.26

SG&A as a % of gross profit		63.6	%															63.0	%
Income from operations as a % of revenue		5.3	%															5.7	%

SG&A (Same Store)	$	408.6		$	—		$	—	$	(6.4	)	—	%	$	—		$	402.2
SG&A as a % of gross profit (Same Store)		63.0	%															62.0	%


	Three Months Ended December 31, 2023
	GAAP			Professional fees associated with acquisitions			Fixed asset write-off			Asset impairments		Income tax effect			Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	414.0		$	(2.4	)	$	(1.1	)	$	—	$	—		$	410.5
Income from operations	$	124.6		$	2.4		$	1.1		$	117.2	$	—		$	245.3
Net income	$	55.5		$	2.4		$	1.1		$	117.2	$	(29.9	)	$	146.3

Weighted average common share outstanding – diluted		20.5														20.5

Diluted EPS	$	2.70		$	0.09		$	0.04		$	4.29	$	—		$	7.12

SG&A as a % of gross profit		61.5	%													61.0	%
Income from operations as a % of revenue		3.3	%													6.4	%

SG&A (Same Store)	$	389.1		$	—		$	(1.1	)	$	—	$	—		$	388.0
SG&A as a % of gross profit (Same Store)		61.1	%													60.9	%


	Twelve Months Ended December 31, 2024
	GAAP			Gain on dealership divestitures, net			Proceeds from franchise termination			Asset impairments		Hurricane Milton losses			Hail damage			Income tax effect			Non-GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	1,888.5		$	—		$	1.9		$	—	$	(6.4	)	$	(7.1	)	$	—		$	1,877.0
Income from operations	$	835.6		$	—		$	(1.9	)	$	149.5	$	6.4		$	7.1		$	—		$	996.7
Net income	$	430.3		$	(8.6	)	$	(1.9	)	$	149.5	$	6.4		$	7.1		$	(37.6	)	$	545.1

Weighted average common share outstanding – diluted		20.0																				20.0

Diluted EPS	$	21.50		$	(0.32	)	$	(0.07	)	$	5.62	$	0.24		$	0.27		$	—		$	27.24

SG&A as a % of gross profit		64.0	%																			63.7	%
Income from operations as a % of revenue		4.9	%																			5.8	%

SG&A (Same Store)	$	1,590.4		$	—		$	—		$	—	$	(6.4	)	$	(7.1	)	$	—		$	1,577.0
SG&A as a % of gross profit (Same Store)		63.5	%																			63.0	%


	Twelve Months Ended December 31, 2023
	GAAP			Gain on dealership divestiture, net			Asset impairments		Legal settlement			Fixed assets write-off			Hail damage			Gain on sale of real estate			Professional fees associated with acquisition			Income tax effect			Non GAAP adjusted
	(In millions, except per share data)
Selling, general and administrative (SG&A)	$	1,617.4		$	—		$	—	$	1.9		$	(1.1	)	$	(4.3	)	$	3.6		$	(4.1	)	$	—		$	1,613.2
Income from operations	$	953.5		$	—		$	117.2	$	(1.9	)	$	1.1		$	4.3		$	(3.6	)	$	4.1		$	—		$	1,074.9
Net income	$	602.5		$	(13.5	)	$	117.2	$	(1.9	)	$	1.1		$	4.3		$	(3.6	)	$	4.1		$	(26.7	)	$	683.6

Weighted average common share outstanding – diluted		21.0																										21.0

Diluted EPS	$	28.74		$	(0.48	)	$	4.20	$	(0.07	)	$	0.04		$	0.16		$	(0.13	)	$	0.15		$	—		$	32.60

SG&A as a % of gross profit		58.7	%																									58.5	%
Income from operations as a % of revenue		6.4	%																									7.3	%

SG&A (Same Store)	$	1,566.7		$	—		$	—	$	1.9		$	(1.1	)	$	(4.3	)	$	3.6		$	—		$	—		$	1,566.7
SG&A as a % of gross profit (Same Store)		58.3	%																									58.3	%


	For the Year Ended December 31,
		2024			2023
	(In millions)
Adjusted cash flow from operations:
Cash provided by operating activities	$	671.2		$	313.0
Change in Floor Plan Notes Payable—Non-Trade, net		(5.2	)		1,018.9
Change in Floor Plan Notes Payable—Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisition and divestitures		71.9			(571.3	)
Change in Floor Plan Notes Payable—Trade associated with floor plan offset, adjusted for acquisition and divestitures		(49.5	)		(55.3	)
Adjusted cash flow provided by operating activities	$	688.4		$	705.4

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