HUNTSVILLE, Ala.–(BUSINESS WIRE)–ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” or the “Company”) today announced its preliminary unaudited financial results for the first quarter ended March 31, 2025.
- Revenue: $247.7 million, higher by 10% year-over-year, and above the mid-point of outlook.
- Gross margin: GAAP gross margin: 38.5%; non-GAAP gross margin: 42.6%.
- Operating margin: at the high end of outlook.
- GAAP diluted loss per share of $0.13; non-GAAP diluted earnings per share $0.03.
- Net cash provided by operating activities of $41.6 million.
- Cash and cash equivalents of $101.3 million, an increase of $23.8 million sequentially.
Adtran Holdings’ Chairman and Chief Executive Officer Tom Stanton stated, “We executed on all fronts during the first quarter. Our strong performance reinforces Adtran’s improved operating efficiency and the strength of our business model. We delivered solid results, improving several key operating metrics, including higher revenue, strong gross and operating margins, and robust cash from operations.
Mr. Stanton added, “We are well-positioned to navigate and capitalize on shifts in trade policy due to our globally diverse supply chain, operational flexibility, and strong customer relationships. Based on the current visibility and booking trends, we expect this positive momentum to continue into the second quarter.”
The information contained in this press release is preliminary. Investors should refer to our Quarterly Report on Form 10-Q for the period ended March 31, 2025 once it is filed with the Securities and Exchange Commission (“SEC”).
Business outlook1
For the second quarter of 2025, the Company expects revenue to be within a range of $247.5 million to $262.5 million. Non-GAAP operating margin is expected to be within a range of 0% to 4%.
1 Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided second quarter 2025 guidance with regard to non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, such as acquisition related expenses, amortizations and adjustments, stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, and goodwill impairment that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company’s GAAP financial results.
Conference call
The Company will hold a conference call to discuss its preliminary first quarter 2025 results on Thursday, May 8, 2025, at 9:30 a.m. Central Time, or 4:30 p.m. Central European Time. The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at https://events.q4inc.com/attendee/184900731 approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454.
An online replay of the Company’s conference call, as well as the transcript of the call, will be available on the Investor Relations site https://investors.adtran.com/ shortly following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email [email protected].
Upcoming conference schedule
May 12, 2025: Needham Technology Virtual One-on-One Conference
May 28, 2025: 22nd Annual Craig Hallum Institutional Investor Conference
June 25, 2025: Northland Capital Virtual One-on-One Growth Conference
About Adtran
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE (“Adtran Networks”). Find more at Adtran, LinkedIn and Twitter.
Cautionary note regarding forward-looking statements
Statements contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to expectations regarding future revenue and future non-GAAP operating margin; future service provider spending; future profitability, and growth, including customer acquisition and booking trends, as well as future end market growth; future market trends and customer inventory levels; future operational leverage and cash generation; and ADTRAN Holdings’ strategy and outlook, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could” and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to comply with the covenants set forth in our credit agreement, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the “DPLTA”), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks posed by potential breaches of information systems and cyber-attacks; (viii) the risk that we may not be able to effectively compete, including through product improvements and development; and (ix) other risks set forth in our public filings made with the SEC, including our most recent Annual Report on Form 10-K for the year ended December 31, 2024 and risks to be disclosed in our Form 10-Q for the quarterly period ended March 31, 2025 to be filed with the SEC.
Additionally, the financial measures presented herein are preliminary estimates, remain subject to our internal controls and procedures, and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end adjustments. Any variation between the Company’s actual results and the preliminary financial information set forth herein may be material.
Explanation of use of non-GAAP financial measures
Set forth in the tables below are reconciliations of gross profit, gross margin, operating expenses, operating loss, other expense, net loss inclusive of the non-controlling interest, net income attributable to the non-controlling interest, net loss attributable to the Company, and loss per share – basic and diluted, attributable to the Company, and net cash provided by operating activities, in each case as reported based on generally accepted accounting principles in the United States (“GAAP”), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP other expense, non-GAAP net income (loss) inclusive of the non-controlling interest, non-GAAP net income attributable to the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss) per share – basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortization and adjustments (consisting of intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations, as well as legal and advisory fees related to a previously contemplated significant transaction, stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, goodwill impairments, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies.
Published by
ADTRAN Holdings, Inc.
www.adtran.com
Revision of Previously Issued Consolidated Financial Statements
Following the first quarter of 2025, the Company identified errors in its previously issued consolidated financial statements primarily impacting inventory and cost of revenue. The Company has evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary description of the errors in the Company’s Preliminary Condensed Consolidated Financial Statements for the periods ended December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024, are as follows:
a) For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated cost of revenue and overstated inventory in the Company’s Adtran Networks subsidiary, due to a system error. In addition, there were adjustments in the Company’s U.S and Australian subsidiaries related to inventory reserves that were understated.
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, following the third quarter of 2024, the Company identified errors primarily impacting the carrying values of the redeemable non-controlling interest, retained deficit, the net income attributable to the non-controlling interest and the net loss attributable to the Company and, as a consequence, of the loss per common share attributable to the Company. As previously disclosed, the Company evaluated the errors and determined that the related impacts were not material to the previously issued consolidated financial statements for any prior period. A summary description of the errors in the Company’s Condensed Consolidated Financial Statements for the period ended March 31, 2024 is as follows:
b) Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) is entitled to receive from us an Annual Recurring Compensation payment of €0.52 per share. The Company erroneously accrued this liability every quarter at €0.59 per share, overstating the associated accrual, the net income attributable to non-controlling interest and the net loss attributable to ADTRAN Holdings, Inc. for the period ended March 31, 2024.
c) For the period ended March 31, 2024 the Company remeasured the redeemable non-controlling interest each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the redeemable non-controlling interest as a monetary mezzanine equity instrument but should have treated it as a non-monetary mezzanine equity instrument not subject to remeasurement.
The Company will be revising its previously issued 2024 interim financial statements and 2024 annual financial statements in connection with its future filings on Form 10-Q for the periods ended March 31, 2025, June 30, 2025 and September 30, 2025 and Form 10-K for the year ended December 31, 2025.
The following tables reflect the expected impact of the revisions to the specific line items presented in the Company’s previously reported (i) balance sheets as of March 31, 2024 and as of December 31, 2024, (ii) statements of loss and comprehensive loss for the quarter ended March 31, 2024 and the quarter and year ended December 31, 2024, (iii) the statements of changes in stockholders equity as of March 31, 2024 and December 31, 2024, (iv) statements of cash flows for the quarter ended March 31, 2024 and the year ended December 31, 2024 and (v) the net cash provided by operating activities for the quarter ended December 31, 2024. The preliminary financial information in this press release reflects these revisions.
Revised Line Items in the Condensed Consolidated Balance Sheet as of March 31, 2024 (unaudited):
|
|
|
|
March 31, 2024 |
||||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
Revision |
|
As Revised |
||||||
|
Inventory, net |
|
|
$ |
322,147 |
|
|
$ |
(3,460 |
) |
(a) |
$ |
318,687 |
|
|
Total Current Assets |
|
|
$ |
696,958 |
|
|
$ |
(3,460 |
) |
|
$ |
693,498 |
|
|
Total Assets |
|
|
$ |
1,327,906 |
|
|
$ |
(3,460 |
) |
|
$ |
1,324,446 |
|
|
Accrued Expenses and Other Liabilities |
|
|
$ |
36,404 |
|
|
$ |
(1,403 |
) |
(b) |
$ |
35,001 |
|
|
Total Current Liabilities |
|
|
$ |
282,746 |
|
|
$ |
(1,403 |
) |
|
$ |
281,343 |
|
|
Other non-current liabilities |
|
|
$ |
35,375 |
|
|
$ |
(350 |
) |
(b) |
$ |
35,025 |
|
|
Total Liabilities |
|
|
$ |
620,488 |
|
|
$ |
(1,753 |
) |
|
$ |
618,735 |
|
|
Redeemable Non-Controlling Interest |
|
|
$ |
441,635 |
|
|
$ |
511 |
|
(c) |
$ |
442,146 |
|
|
Accumulated Other Comprehensive Income |
|
|
$ |
29,656 |
|
|
$ |
19 |
|
(a)(b) |
$ |
29,675 |
|
|
Retained Deficit |
|
|
$ |
(558,363 |
) |
|
$ |
(2,237 |
) |
(a)(b) |
$ |
(560,600 |
) |
|
Total Equity |
|
|
$ |
265,783 |
|
|
$ |
(2,218 |
) |
|
$ |
263,565 |
|
|
Total Liabilities, Redeemable Non-Controlling Interest and Equity |
|
|
$ |
1,327,906 |
|
|
$ |
(3,460 |
) |
|
$ |
1,324,446 |
|
Revised Line Items in the Condensed Consolidated Statement of Loss and Condensed Consolidated Statement of Comprehensive Loss for the fiscal quarter ended March 31, 2024 (unaudited):
|
|
|
|
For the Three Months Ended March 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Cost of Revenue – Network Solutions |
|
|
$ |
126,326 |
|
|
$ |
1,952 |
|
(a) |
$ |
128,278 |
|
|
Total Cost of Revenue |
|
|
$ |
153,918 |
|
|
$ |
1,952 |
|
|
$ |
155,870 |
|
|
Gross Profit |
|
|
$ |
72,255 |
|
|
$ |
(1,952 |
) |
|
$ |
70,303 |
|
|
Operating Loss |
|
|
$ |
(339,679 |
) |
|
$ |
(1,952 |
) |
|
$ |
(341,631 |
) |
|
Loss before Income Taxes |
|
|
$ |
(340,317 |
) |
|
$ |
(1,952 |
) |
|
$ |
(342,269 |
) |
|
Net Loss |
|
|
$ |
(321,670 |
) |
|
$ |
(1,952 |
) |
|
$ |
(323,622 |
) |
|
Less: Net Income attributable to non-controlling interest |
|
|
$ |
2,880 |
|
|
$ |
(349 |
) |
(b) |
$ |
2,531 |
|
|
Net Loss attributable to ADTRAN Holdings, Inc. |
|
|
$ |
(324,550 |
) |
|
$ |
(1,603 |
) |
|
$ |
(326,153 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – basic |
|
|
$ |
(4.12 |
) |
|
$ |
(0.02 |
) |
|
$ |
(4.14 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted |
|
|
$ |
(4.12 |
) |
|
$ |
(0.02 |
) |
|
$ |
(4.14 |
) |
|
Net Loss |
|
|
$ |
(321,670 |
) |
|
$ |
(1,952 |
) |
|
$ |
(323,622 |
) |
|
Foreign currency translation loss |
|
|
$ |
(17,745 |
) |
|
$ |
15 |
|
(a)(b) |
$ |
(17,730 |
) |
|
Other Comprehensive Loss, net of tax |
|
|
$ |
(17,805 |
) |
|
$ |
15 |
|
|
$ |
(17,790 |
) |
|
Comprehensive Loss, net of tax |
|
|
$ |
(339,475 |
) |
|
$ |
(1,937 |
) |
|
$ |
(341,412 |
) |
|
Less: Comprehensive Income attributable to non-controlling interest, net of tax |
|
|
$ |
2,880 |
|
|
$ |
(349 |
) |
(b) |
$ |
2,531 |
|
|
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax |
|
|
$ |
(342,355 |
) |
|
$ |
(1,588 |
) |
|
$ |
(343,943 |
) |
Revised Line Items in the Condensed Consolidated Statement of Loss for the fiscal quarter ended December 31, 2024 (unaudited):
|
|
|
|
For the Three Months Ended December 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Cost of Revenue – Network Solutions |
|
|
$ |
134,184 |
|
|
$ |
1,974 |
|
(a) |
$ |
136,158 |
|
|
Total Cost of Revenue |
|
|
$ |
151,619 |
|
|
$ |
1,974 |
|
|
$ |
153,593 |
|
|
Gross Profit |
|
|
$ |
91,233 |
|
|
$ |
(1,974 |
) |
|
$ |
89,259 |
|
|
Operating Loss |
|
|
$ |
(15,132 |
) |
|
$ |
(1,974 |
) |
|
$ |
(17,106 |
) |
|
Loss before Income Taxes |
|
|
$ |
(18,604 |
) |
|
$ |
(1,974 |
) |
|
$ |
(20,578 |
) |
|
Net Loss |
|
|
$ |
(43,509 |
) |
|
$ |
(1,974 |
) |
|
$ |
(45,483 |
) |
|
Net Loss attributable to ADTRAN Holdings, Inc. |
|
|
$ |
(45,916 |
) |
|
$ |
(1,974 |
) |
|
$ |
(47,890 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – basic |
|
|
$ |
(0.58 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.61 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted |
|
|
$ |
(0.58 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.61 |
) |
Revised Line Items in the Consolidated Balance Sheet as of December 31, 2024 (unaudited):
|
|
|
|
December 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Inventory, net |
|
|
$ |
269,337 |
|
|
$ |
(7,683 |
) |
(a) |
$ |
261,654 |
|
|
Total Current Assets |
|
|
$ |
610,605 |
|
|
$ |
(7,683 |
) |
|
$ |
602,922 |
|
|
Total Assets |
|
|
$ |
1,179,372 |
|
|
$ |
(7,683 |
) |
|
$ |
1,171,689 |
|
|
Accumulated Other Comprehensive Income |
|
|
$ |
10,897 |
|
|
$ |
322 |
|
(a) |
$ |
11,219 |
|
|
Retained Deficit |
|
|
$ |
(680,993 |
) |
|
$ |
(8,005 |
) |
(a) |
$ |
(688,998 |
) |
|
Total Equity |
|
|
$ |
134,414 |
|
|
$ |
(7,683 |
) |
|
$ |
126,731 |
|
|
Total Liabilities, Redeemable Non-Controlling Interest and Equity |
|
|
$ |
1,179,372 |
|
|
$ |
(7,683 |
) |
|
$ |
1,171,689 |
|
Revised Line Items in the Consolidated Statement of Loss and Consolidated Statement of Comprehensive Loss for the fiscal year ended December 31, 2024 (unaudited):
|
|
|
|
For the Year Ended December 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Cost of Revenue – Network Solutions |
|
|
$ |
511,070 |
|
|
$ |
6,483 |
|
(a) |
$ |
517,553 |
|
|
Total Cost of Revenue |
|
|
$ |
592,406 |
|
|
$ |
6,483 |
|
|
$ |
598,889 |
|
|
Gross Profit |
|
|
$ |
330,314 |
|
|
$ |
(6,483 |
) |
|
$ |
323,831 |
|
|
Operating Loss |
|
|
$ |
(417,101 |
) |
|
$ |
(6,483 |
) |
|
$ |
(423,584 |
) |
|
Loss before Income Taxes |
|
|
$ |
(432,263 |
) |
|
$ |
(6,483 |
) |
|
$ |
(438,746 |
) |
|
Net Loss |
|
|
$ |
(441,048 |
) |
|
$ |
(6,483 |
) |
|
$ |
(447,531 |
) |
|
Net Loss attributable to ADTRAN Holdings, Inc. |
|
|
$ |
(450,872 |
) |
|
$ |
(6,483 |
) |
|
$ |
(457,355 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – basic |
|
|
$ |
(5.67 |
) |
|
$ |
(0.08 |
) |
|
$ |
(5.75 |
) |
|
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted |
|
|
$ |
(5.67 |
) |
|
$ |
(0.08 |
) |
|
$ |
(5.75 |
) |
|
Net Loss |
|
|
$ |
(441,048 |
) |
|
$ |
(6,483 |
) |
|
$ |
(447,531 |
) |
|
Foreign currency translation loss |
|
|
$ |
(38,047 |
) |
|
$ |
322 |
|
(a) |
$ |
(37,725 |
) |
|
Other Comprehensive Loss, net of tax |
|
|
$ |
(36,568 |
) |
|
$ |
322 |
|
|
$ |
(36,246 |
) |
|
Comprehensive Loss, net of tax |
|
|
$ |
(477,616 |
) |
|
$ |
(6,161 |
) |
|
$ |
(483,777 |
) |
|
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax |
|
|
$ |
(487,440 |
) |
|
$ |
(8,015 |
) |
|
$ |
(495,455 |
) |
Revised Line Items in the Condensed Consolidated Statement of Changes in Stockholders Equity as of March 31, 2024 (unaudited):
|
|
|
|
Retained Deficit |
|
|
Accumulated Other Comprehensive Income |
|
||||||||||||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
||||||
|
Balance as of December 31, 2023 |
|
|
$ |
(243,908 |
) |
|
$ |
9,481 |
|
(b) |
$ |
(234,427 |
) |
|
$ |
47,461 |
|
|
$ |
4 |
|
(b) |
$ |
47,465 |
|
|
Net loss |
|
|
$ |
(321,670 |
) |
|
$ |
(1,952 |
) |
(a) |
$ |
(323,622 |
) |
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
Annual recurring compensation earned |
|
|
$ |
(2,880 |
) |
|
$ |
349 |
|
(b) |
$ |
(2,531 |
) |
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
Other comprehensive loss, net of tax |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
(17,805 |
) |
|
$ |
15 |
|
(a) |
$ |
(17,790 |
) |
|
Foreign currency remeasurement of redeemable non-controlling interest |
|
|
$ |
10,115 |
|
|
$ |
(10,115 |
) |
(c) |
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
Balance as of March 31, 2024 |
|
|
$ |
(558,363 |
) |
|
$ |
(2,237 |
) |
|
$ |
(560,600 |
) |
|
$ |
29,656 |
|
|
$ |
19 |
|
|
$ |
29,675 |
|
Revised Line Items in the Consolidated Statement of Changes in Stockholders Equity as of December 31, 2024 (unaudited):
|
|
|
|
Retained Deficit |
|
|
Accumulated Other Comprehensive Income |
|
||||||||||||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
||||||
|
Balance as of December 31, 2023 |
|
|
$ |
(232,905 |
) |
|
$ |
(1,522 |
) |
(a) |
$ |
(234,427 |
) |
|
$ |
47,465 |
|
|
$ |
– |
|
|
$ |
47,465 |
|
|
Net loss |
|
|
$ |
(441,048 |
) |
|
$ |
(6,483 |
) |
(a) |
$ |
(447,531 |
) |
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
Other comprehensive income, net of tax |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
(36,568 |
) |
|
$ |
322 |
|
(a) |
$ |
(36,246 |
) |
|
Balance as of December 31, 2024 |
|
|
$ |
(680,993 |
) |
|
$ |
(8,005 |
) |
|
$ |
(688,998 |
) |
|
$ |
10,897 |
|
|
$ |
322 |
|
|
$ |
11,219 |
|
Revised Line Items in the Condensed Consolidated Statement of Cash Flows for the quarter ended March 31, 2024 (unaudited):
|
|
|
|
Three months ended March 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Net Loss |
|
|
$ |
(321,670 |
) |
|
$ |
(1,952 |
) |
(a) |
$ |
(323,622 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
|||
|
Inventory reserves |
|
|
$ |
1,837 |
|
|
$ |
157 |
|
(a) |
$ |
1,994 |
|
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|||
|
Inventory |
|
|
$ |
30,426 |
|
|
$ |
1,795 |
|
(a) |
$ |
32,221 |
|
|
Net Cash Provided by operating activities |
|
|
$ |
36,598 |
|
|
$ |
— |
|
|
$ |
36,598 |
|
Revised Line Items in the Consolidated Statement of Cash Flows for the year ended December 31, 2024 (unaudited):
|
|
|
|
Year ended December 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Net Loss |
|
|
$ |
(441,048 |
) |
|
$ |
(6,483 |
) |
(a) |
$ |
(447,531 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
|||
|
Inventory reserves |
|
|
$ |
3,980 |
|
|
$ |
352 |
|
(a) |
$ |
4,332 |
|
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|||
|
Inventory |
|
|
$ |
75,171 |
|
|
$ |
6,100 |
|
(a) |
$ |
81,271 |
|
|
Net Cash Provided by operating activities |
|
|
$ |
103,070 |
|
|
$ |
(31 |
) |
|
$ |
103,039 |
|
|
Effect of exchange rate changes |
|
|
$ |
(451 |
) |
|
$ |
31 |
|
|
$ |
(420 |
) |
Revised Net Cash Provided by Operating Activities for the quarter ended December 31, 2024 (unaudited):
|
|
|
|
Three months ended December 31, 2024 |
|
|||||||||
|
(In thousands) |
|
|
As Previously Reported |
|
|
Revision |
|
|
As Revised |
|
|||
|
Net Cash Provided by operating activities |
|
|
$ |
4,544 |
|
|
$ |
12 |
|
(a) |
$ |
4,556 |
|
For additional information, please refer to our note 1 to the Condensed Consolidated Financial Statement set forth in the Form 10-Q for the quarterly period ended March 31, 2025 to be filed with the SEC.
|
Condensed Consolidated Balance Sheets (Preliminary, Unaudited) (In thousands) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
|
2025 |
|
2024 |
||||
|
Assets |
|
|
|
||||
|
Current Assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
101,321 |
|
|
$ |
77,567 |
|
|
Accounts receivable, net |
|
166,519 |
|
|
|
178,030 |
|
|
Other receivables |
|
9,613 |
|
|
|
9,775 |
|
|
Income tax receivable |
|
6,632 |
|
|
|
5,461 |
|
|
Inventory, net |
|
254,055 |
|
|
|
261,654 |
|
|
Assets held for sale |
|
11,901 |
|
|
|
11,901 |
|
|
Prepaid expenses and other current assets |
|
64,456 |
|
|
|
58,534 |
|
|
Total Current Assets |
|
614,497 |
|
|
|
602,922 |
|
|
Property, plant and equipment, net |
|
105,940 |
|
|
|
102,942 |
|
|
Deferred tax assets |
|
17,826 |
|
|
|
17,826 |
|
|
Goodwill |
|
55,261 |
|
|
|
52,918 |
|
|
Intangibles, net |
|
293,064 |
|
|
|
284,893 |
|
|
Other non-current assets |
|
75,659 |
|
|
|
78,128 |
|
|
Long-term investments |
|
29,973 |
|
|
|
32,060 |
|
|
Total Assets |
$ |
1,192,220 |
|
|
$ |
1,171,689 |
|
|
|
|
|
|
||||
|
Liabilities, Redeemable Non-Controlling Interest and Equity |
|
|
|
||||
|
Current Liabilities |
|
|
|
||||
|
Accounts payable |
$ |
170,477 |
|
|
$ |
170,451 |
|
|
Unearned revenue |
|
66,459 |
|
|
|
52,701 |
|
|
Accrued expenses and other liabilities |
|
38,161 |
|
|
|
35,704 |
|
|
Accrued wages and benefits |
|
25,910 |
|
|
|
32,853 |
|
|
Income tax payable, net |
|
999 |
|
|
|
1,936 |
|
|
Total Current Liabilities |
|
302,006 |
|
|
|
293,645 |
|
|
Non-current revolving credit agreement outstanding |
|
190,085 |
|
|
|
189,576 |
|
|
Deferred tax liabilities |
|
30,768 |
|
|
|
30,690 |
|
|
Non-current unearned revenue |
|
24,082 |
|
|
|
22,065 |
|
|
Non-current pension liability |
|
8,886 |
|
|
|
8,983 |
|
|
Deferred compensation liability |
|
31,283 |
|
|
|
33,203 |
|
|
Non-current lease obligations |
|
26,369 |
|
|
|
25,925 |
|
|
Other non-current liabilities |
|
16,531 |
|
|
|
17,928 |
|
|
Total Liabilities |
|
630,010 |
|
|
|
622,015 |
|
|
Redeemable Non-Controlling Interest |
|
422,934 |
|
|
|
422,943 |
|
|
Equity |
|
|
|
||||
|
Common stock |
|
800 |
|
|
|
795 |
|
|
Additional paid-in capital |
|
812,071 |
|
|
|
808,913 |
|
|
Accumulated other comprehensive income |
|
31,601 |
|
|
|
11,219 |
|
|
Retained deficit |
|
(700,088 |
) |
|
|
(688,998 |
) |
|
Treasury stock |
|
(5,108 |
) |
|
|
(5,198 |
) |
|
Total Equity |
|
139,276 |
|
|
|
126,731 |
|
|
Total Liabilities, Redeemable Non-Controlling Interest and Equity |
$ |
1,192,220 |
|
|
$ |
1,171,689 |
|
Contacts
For media
Gareth Spence
+44 1904 699 358
[email protected]
For investors
Peter Schuman, IRC
+1 256 963 6305
[email protected]
