Financial Performance - Herbalife Ltd reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.65 per share a year ago, representing an earnings surprise of 200% [1] - The company posted revenues of $1.24 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.67%, compared to year-ago revenues of $1.28 billion [2] - Over the last four quarters, Herbalife has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Herbalife shares have declined approximately 54.4% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current Zacks Rank for Herbalife is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $1.19 billion, and for the current fiscal year, it is $1.34 on revenues of $4.97 billion [7] - The estimate revisions trend for Herbalife is mixed, and changes in these estimates may occur following the recent earnings report [6] Industry Context - The Retail - Pharmacies and Drug Stores industry, to which Herbalife belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The performance of Herbalife's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Third quarter 2024 net sales were $1.2 billion, down 3.2% year-over-year, with a 290 basis points impact from foreign exchange[1]. - Adjusted EBITDA for the third quarter was $166.5 million, exceeding guidance, with an adjusted EBITDA margin of 13.4%, up 70 basis points year-over-year[3]. - Net income for the third quarter was $47.4 million, with diluted EPS of $0.46 and adjusted diluted EPS of $0.57[6]. - Worldwide net sales for the nine months ended September 30, 2024, were $3,785.7 million, a decrease of 1.6% compared to $3,847.4 million for the same period in 2023[28]. - Net income for the nine months ended September 30, 2024, was $76.4 million, down from $132.0 million for the same period in 2023, representing a decline of 42.2%[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $484.8 million, compared to $461.8 million for the same period in 2023, indicating an increase of approximately 5.8%[43]. - The company reported a net income margin of 2.0% and an adjusted EBITDA margin of 12.8% for the nine months ended September 30, 2024[43]. Guidance and Projections - The company raised its full-year 2024 adjusted EBITDA guidance to a range of $590 million to $620 million, up from the previous range of $560 million to $600 million[18]. - Fourth quarter 2024 guidance for net sales is projected to decline between 3.0% to 1.0% year-over-year[17]. Cost Management and Restructuring - The restructuring program initiated in Q1 2024 is expected to deliver annual savings of at least $80 million starting in 2025, with $50 million expected to be realized in 2024[8]. - The company incurred restructuring program expenses of $68.2 million for the nine months ended September 30, 2024, compared to no expenses in the same period of 2023[43]. Assets and Liabilities - Total current assets as of September 30, 2024, were $1,244.6 million, down from $1,399.3 million as of December 31, 2023[30]. - Total liabilities as of September 30, 2024, were $3,607.7 million, a decrease from $3,869.7 million as of December 31, 2023[30]. - Total debt as of September 30, 2024, was $2,337.5 million, with a total leverage ratio of 3.3x[42]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $215.8 million, compared to $261.4 million for the same period in 2023[32]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $59.0 million, an improvement from $99.6 million for the same period in 2023[32]. - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, were $417.9 million, down from $516.0 million at the end of the same period in 2023[32]. Market and Operational Insights - The number of new distributors joining Herbalife increased by 14% year-over-year, marking the second consecutive quarter of improvement[10]. - The company is facing risks related to global economic conditions, including inflation, which could impact its operations and financial performance[24]. - The company plans to continue executing its growth strategies and initiatives to enhance market penetration in existing markets[24]. Other Financial Metrics - Gross profit margin improved to 78.3% in Q3 2024, compared to 76.3% in Q3 2023, benefiting from pricing and favorable input costs[5]. - Interest expense for the nine months ended September 30, 2024, was $152.1 million, compared to $116.3 million for the same period in 2023, reflecting an increase of approximately 30.8%[43]. - Share-based compensation expenses for the nine months ended September 30, 2024, were $36.7 million, compared to $35.7 million for the same period in 2023[43].

Volume Points and Sales Performance - For the three months ended September 30, 2024, Volume Points decreased by 5.4% compared to the same period in 2023, and for the nine months ended September 30, 2024, the decrease was 5.0%[168] - North America's Volume Points decreased by 10.3% for the three months ended September 30, 2024, and by 13.2% for the nine months ended September 30, 2024[166] - Latin America's Volume Points increased by 1.5% for the three months ended September 30, 2024, but decreased by 2.2% for the nine months ended September 30, 2024[166] - EMEA's Volume Points decreased by 9.7% for the three months ended September 30, 2024, and by 8.1% for the nine months ended September 30, 2024[166] - Asia Pacific's Volume Points decreased by 2.8% for the three months ended September 30, 2024, while remaining relatively flat for the nine months ended September 30, 2024[166] - China's Volume Points decreased by 14.9% for the three months ended September 30, 2024, and by 2.7% for the nine months ended September 30, 2024[166] - Net sales for the three and nine months ended September 30, 2024, were $1,240.3 million and $3,785.7 million, representing decreases of $41.0 million (3.2%) and $61.7 million (1.6%) compared to the same periods in 2023[186] - The decrease in net sales for the three months ended September 30, 2024, was primarily driven by a 5.4% decrease in Volume Points and a 2.9% unfavorable impact from foreign currency fluctuations, partially offset by a 4.8% favorable impact from price increases[186] Financial Performance - Net income for the three months ended September 30, 2024, was $47.4 million ($0.46 per diluted share), an increase of $4.6 million (10.7%), while for the nine months it was $76.4 million ($0.75 per diluted share), a decrease of $55.6 million (42.1%) compared to 2023[187] - The Primary Reporting Segment reported net sales of $1,165.5 million and $3,554.0 million for the three and nine months ended September 30, 2024, reflecting decreases of $26.3 million (2.2%) and $48.2 million (1.3%) respectively compared to 2023[197] - Contribution margin for the Primary Reporting Segment was $502.2 million (43.1% of net sales) and $1,517.1 million (42.7% of net sales) for the three and nine months ended September 30, 2024, representing increases of $16.1 million (3.3%) and $40.9 million (2.8%) respectively compared to 2023[200] - Selling, general, and administrative expenses represented 35.8% of net sales for the three months ended September 30, 2024, compared to 35.5% for the same period in 2023[195] - The company experienced a $10.5 million loss on extinguishment of debt related to the April 2024 refinancing transactions, impacting net income for the nine months ended September 30, 2024[189] - The unfavorable impact of foreign currency fluctuations was 2.4% for the nine months ended September 30, 2024, contributing to the overall decrease in net sales[186] Regional Sales Insights - Net sales in North America were $260.4 million for the three months ended September 30, 2024, a decrease of $17.4 million, or 6.3%, compared to the same period in 2023[208] - Latin America reported net sales of $207.1 million for the three months ended September 30, 2024, a decrease of $4.9 million, or 2.3%, compared to the same period in 2023[212] - The Asia Pacific region had net sales of $436.1 million for the three months ended September 30, 2024, a decrease of $5.0 million, or 1.1%, compared to the same period in 2023[202] - EMEA region reported net sales of $261.9 million and $827.6 million for the three and nine months ended September 30, 2024, representing increases of 0.3% and 1.1% compared to the same periods in 2023[215] - In the EMEA region, net sales growth was primarily driven by a 10.5% favorable impact of price increases for the nine months ended September 30, 2024, despite an 8.1% decrease in Volume Points[215] Cost and Expense Management - The company is focused on enhancing its Member-facing technology platform through a new Digital Technology Program, which incurred expenses of $22.1 million for the nine months ended September 30, 2024[189] - The company incurred $68.2 million in pre-tax unfavorable impacts from Restructuring Program expenses for the nine months ended September 30, 2024, primarily related to employee retention and separation costs[189] - The company recognized a $5.1 million pre-tax unfavorable impact from expenses related to the new Digital Technology Program for the three months ended September 30, 2024[188] - Selling, general, and administrative expenses were $444.0 million for the three months ended September 30, 2024, down from $455.3 million in 2023, and increased to $1,438.5 million for the nine months ended September 30, 2024, compared to $1,391.7 million in 2023[232] Debt and Liquidity - The company had $402.5 million in cash and cash equivalents as of September 30, 2024, supporting general corporate purposes and potential strategic investments[240] - The 2018 Credit Facility was amended to increase borrowing capacity, with a total of $1.25 billion available, including a $250 million revolving credit facility[249] - The company issued $800.0 million aggregate principal amount of senior secured notes due 2029, with an interest rate of 12.250% per annum payable semiannually[260] - The 2024 Term Loan B Facility has an aggregate principal amount of $400.0 million and requires quarterly payments equal to 5.0% of the principal amount per annum, starting September 2024[252] - The company repaid $981.0 million of long-term debt by extinguishing the 2018 Credit Facility, resulting in a loss on extinguishment of approximately $2.5 million[253] - As of September 30, 2024, the outstanding principal on the 2029 Secured Notes was $800.0 million, and the weighted-average interest rate for borrowings under the 2024 Credit Facility was 10.05%[260][258] Strategic Initiatives - The company introduced a new training and recognition program during the nine months ended September 30, 2024, aimed at encouraging recruitment and activity of new distributors[171] - The company is focusing on enhancing technology tools and training programs to support Members in marketing and selling products[204] - Global inflationary pressures and supply chain challenges are impacting cost structures and pricing strategies, with potential effects on sales volume[207] - The Transformation Program is expected to deliver annual savings of approximately $110 million, with $70 million realized in 2023 and similar savings expected in 2024[245] - The Restructuring Program is anticipated to yield annual savings of at least $80 million starting in 2025, with $30 million already realized in the nine months ended September 30, 2024[246]

Core Viewpoint - High Liner Foods Incorporated is celebrating its 125th anniversary and over 50 years of being listed on the Toronto Stock Exchange (TSX) [1] Company Overview - High Liner Foods is a leading North American processor and marketer of value-added frozen seafood [1] - The company offers retail branded products under the labels High Liner, Fisher Boy, Mirabel, Sea Cuisine, and Catch of the Day, which are sold throughout Canada and the United States [1] - High Liner Foods has a rich history rooted in Atlantic Canada, with its origins dating back to December 12, 1899 [1] Market Engagement - The market opening ceremony was attended by key figures including Paul Jewer, President & CEO, and Honourable Susan Corkum-Greek, Minister of Economic Development [1] - The event took place in Lunenburg, Nova Scotia, the location where the company's story began [1]

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $1.3 billion, up slightly on a constant currency basis but down 2.5% on a reported basis due to 270 basis points of FX headwinds [7][26] - Adjusted EBITDA was $180 million, exceeding guidance, with an adjusted EBITDA margin of 14.1%, up 120 basis points year-over-year [8][26] - The total leverage ratio was reduced to 3.5x, with a goal to reach 3x by the end of 2025 [8][36] Business Line Data and Key Metrics Changes - Worldwide distributor recruiting was up year-over-year, reversing 12 consecutive quarters of decline, with significant increases in North America (up 23% year-over-year) and Latin America (up 34% year-over-year) [10][18] - In Q2, gross profit margin was 77.9%, up 90 basis points compared to the same quarter last year, driven by pricing actions [27] Market Data and Key Metrics Changes - In Latin America, net sales were up 2% on a reported basis and up 5% on a local currency basis [31] - EMEA net sales were down 1% year-over-year, but local currency net sales were up 4% [32] - Asia-Pacific net sales were down 2% year-over-year on a reported basis, while India outperformed with net sales up 8% [32][33] Company Strategy and Development Direction - The company aims to become the world's premier health and wellness company, focusing on digital transformation and distributor engagement [9][15] - New initiatives like the Herbalife Premier League and the upcoming Mastermind program are designed to support distributor growth and engagement [10][23] - The company is piloting pricing and compensation changes in Latin America to optimize business opportunities based on local socioeconomic conditions [31][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from FX headwinds but emphasized strong foundations for growth, including new distributor recruiting and innovative product launches [39][40] - The company is optimistic about the long-term potential of its new customer loyalty program in China, which focuses on preferred customers [72] Other Important Information - The company has completed a significant restructuring program, with $66 million of implementation costs accrued in the first half of the year [37] - A new mentorship program for top leaders in North America is set to launch in August, aimed at enhancing distributor skills and accountability [23][24] Q&A Session Summary Question: North America turnaround and new distributor growth - Management highlighted the potential of Nutrition Clubs and the need to convert transactional customers into transformational customers through support and training [44][46] Question: Q3 guidance and EBITDA expectations - Management explained that Q3 guidance reflects lower sales expectations, FX impacts, and unique event timing affecting expenses [49][50] Question: Full-year guidance changes - The reduction in full-year guidance was attributed to lower volume expectations in specific countries and unfavorable currency impacts [53][54] Question: Pricing strategy in Latin America - Management discussed the strategy of lowering prices and modifying distributor compensation to optimize earnings and increase volume [57][58] Question: Debt paydown strategy - The company committed to a $1 billion debt paydown over the next four to five years, prioritizing debt reduction over stock buybacks [66][67] Question: Asia-Pacific market performance - Management noted challenges in Taiwan and Indonesia due to stock issues and slower recovery from COVID, while emphasizing the importance of the new customer loyalty program in China [70][72]

Herbalife Q2 2024 Earnings Presentation July 31, 2024 Heather Jackson United States Gravel Racing and Ultra Running Arianna Errigo Italy (Flag Bearer) Fencing Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of 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 fact are "forward-looking statements" for purposes of federal and state se ...

Herbalife Ltd (HLF) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25.58%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.49, delivering a surprise of 32.43%.Over the last four quarters, the company has ...

Volume Points and Sales Performance - As of June 30, 2024, Volume Points decreased by 6.0% and 4.8% for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023[184]. - North America's Volume Points decreased to 272.5 million, a 13.1% decline from 313.4 million in June 30, 2023[184]. - Latin America's Volume Points decreased by 2.1% to 253.2 million from 258.5 million in June 30, 2023[184]. - EMEA's Volume Points decreased by 9.7% to 299.2 million from 331.2 million in June 30, 2023[184]. - Asia Pacific's Volume Points decreased by 1.9% to 520.2 million from 530.5 million in June 30, 2023, but saw a 1.2% increase in net sales for the first half of 2024[184]. - China’s Volume Points decreased by 1.8% to 61.5 million from 62.6 million in June 30, 2023, but net sales increased by 4.6%[184]. - Net sales for the three and six months ended June 30, 2024, were $1,281.1 million and $2,545.4 million, representing a decrease of $32.9 million (2.5%) and $20.7 million (0.8%) compared to the same periods in 2023[197]. - The Primary Reporting Segment reported net sales of $1,199.4 million and $2,388.5 million for the three and six months ended June 30, 2024, representing a decrease of $26.6 million (2.2%) and $21.9 million (0.9%) compared to the same periods in 2023[207]. Financial Performance and Income - Net income for the three and six months ended June 30, 2024, was $4.7 million ($0.05 per diluted share) and $29.0 million ($0.29 per diluted share), reflecting a decrease of $55.2 million (92.2%) and $60.2 million (67.5%) compared to the same periods in 2023[198]. - Selling, general, and administrative expenses increased by $41.8 million for the three months ended June 30, 2024, impacting net income significantly[198]. - The company experienced a $10.5 million loss on extinguishment of debt related to April 2024 refinancing transactions, affecting net income for both the three and six months ended June 30, 2024[198]. - The decrease in net income for the three months was primarily due to $41.8 million higher selling, general, and administrative expenses and $19.3 million higher interest expense[198]. - Interest expense, net increased to $57.7 million for the three months ended June 30, 2024, compared to $38.4 million for the same period in 2023, primarily due to an increase in the weighted-average interest rate following debt refinancing[238]. - Income taxes for the three months ended June 30, 2024 were $7.5 million, with an effective tax rate of 61.5%, up from 29.5% in 2023, primarily due to changes in the geographic mix of income[240]. Regional Performance - North America reported net sales of $283.2 million for Q2 2024, a decrease of $20.4 million or 6.7% compared to Q2 2023, with a 13.1% decrease in Volume Points[217]. - Latin America achieved net sales of $211.7 million for Q2 2024, an increase of $4.7 million or 2.3% compared to Q2 2023, driven by an 8.0% favorable impact from net price increases[220]. - EMEA region net sales were $287.8 million for Q2 2024, a slight decrease of $1.8 million or 0.6% compared to Q2 2023, with a 9.7% decrease in Volume Points[221]. - Asia Pacific region reported net sales of $416.7 million for Q2 2024, a decrease of $9.1 million or 2.1% compared to Q2 2023[224]. - In India, net sales increased by $15.2 million or 8.0% to $204.6 million for Q2 2024, with local currency growth of 9.7%[225]. Cost and Expense Management - Gross profit for Q2 2024 was $998.0 million, with a gross profit margin of 77.9%, an increase of 85 basis points from Q2 2023[231]. - Selling, general, and administrative expenses rose to $502.3 million for Q2 2024, representing 39.2% of net sales, up from 35.0% in Q2 2023[236]. - Royalty overrides decreased to $415.3 million for Q2 2024, accounting for 32.4% of net sales, down from 32.7% in Q2 2023[234]. - The unfavorable impact of foreign currency fluctuations was noted as a significant factor affecting both net sales and contribution margins[210]. - Global inflationary pressures and supply chain challenges are impacting cost structures and pricing, potentially affecting sales volumes[216]. Strategic Initiatives and Programs - The company implemented pricing actions in certain markets during the first half of 2024 to address inflationary pressures[181]. - The introduction of a new training and recognition program in 2024 aimed to encourage recruitment and activity of new distributors[187]. - The company plans to enhance its Member-facing technology platform through a new Digital Technology Program, which has incurred expenses impacting net income[199]. - New product launches and training programs are being implemented to support Members in improving sales and retention[219]. - The company is segmenting its Member base for more targeted communication and promotions to enhance sales effectiveness[213]. - The Transformation Program is expected to deliver annual savings of approximately $110 million, with $70 million realized in 2023 and similar savings expected in 2024[246]. - The Restructuring Program aims for annual savings of at least $80 million starting in 2025, with at least $50 million expected to be realized in 2024[247]. Cash Flow and Capital Management - Operating cash flow for the six months ended June 30, 2024 was $116.3 million, down from $181.8 million in 2023, driven by lower net income and higher expenses[243]. - Capital expenditures for the six months ended June 30, 2024 were $58.7 million, with expectations of total capital expenditures for 2024 to be approximately $120 million to $150 million, including investments in the $400 million Digital Technology Program[244]. - As of June 30, 2024, the company had $374.0 million in cash and cash equivalents, supporting general corporate purposes and potential strategic investments[242]. - The company expects sufficient working capital from operations and available borrowings under the 2024 Credit Facility for the next twelve months[273]. Debt and Financing - The 2024 Credit Facility includes a Term Loan B Facility of $400 million and a revolving credit facility of $400 million, replacing the previous 2018 Credit Facility[251]. - As of June 30, 2024, the outstanding principal under the 2024 Credit Facility was $480.0 million, with $400.0 million under the 2024 Term Loan B and $80.0 million under the 2024 Revolving Credit Facility[257]. - The company recognized a loss on extinguishment of approximately $2.5 million related to the repayment of the 2018 Credit Facility[253]. - The company issued $800.0 million of senior secured notes due 2029, with an interest rate of 12.250% per annum[259]. - The weighted-average interest rate for borrowings under the 2024 Credit Facility was 9.34% as of June 30, 2024[257]. Inventory Management - Product returns and buybacks were approximately 0.1% of net sales for the three and six months ended June 30, 2024, indicating historically low return rates[279]. - The company adjusted obsolete and slow-moving inventories downward by $23.2 million as of June 30, 2024, and $24.2 million as of December 31, 2023[280]. - Future demand and market conditions could necessitate additional inventory write-downs if less favorable than management's assumptions[280]. - Favorable future demand and market conditions could positively impact operating results if previously written down inventories are sold[280].

[Herbalife Second Quarter 2024 Financial Results](index=1&type=section&id=Herbalife%20Second%20Quarter%202024%20Financial%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Herbalife reported a Q2 2024 net sales decline of 2.5% to $1.3 billion, raised its full-year adjusted EBITDA guidance, and reduced its net sales outlook Q2 2024 Key Financial Metrics | Metric | Q2 2024 Value | YoY Change | Note | | :--- | :--- | :--- | :--- | | Net Sales | $1.3 billion | -2.5% | +0.2% on constant currency basis | | Net Income | $4.7 million | - | - | | Adjusted Net Income | $54.8 million | - | - | | Adjusted EBITDA | $180.0 million | - | Exceeded guidance; margin up 120 bps | | Diluted EPS | $0.05 | - | Includes $0.33 headwind from restructuring | | Adjusted Diluted EPS | $0.54 | - | - | | Operating Cash Flow | $102.5 million | - | - | - The company raised its full-year 2024 adjusted EBITDA guidance, reduced its net sales guidance, and reaffirmed its capital expenditures forecast[2](index=2&type=chunk) - The total leverage ratio was reduced to **3.5x** as of June 30, 2024[2](index=2&type=chunk) - CEO Michael Johnson highlighted that Q2 Adjusted EBITDA was the **highest in seven quarters** and noted that the increase in new distributors is building a foundation for future sales growth[2](index=2&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management detailed financial performance, margin improvements from pricing, an ongoing restructuring program, and significant corporate actions including debt refinancing and an asset sale - Gross profit margin improved to **77.9%** in Q2 2024 from 77.0% in Q2 2023, benefiting from approximately 160 basis points of pricing, which was partially offset by 60 basis points of input cost inflation[3](index=3&type=chunk) - The Restructuring Program is expected to deliver annual savings of at least **$80 million** beginning in 2025, with at least **$50 million** now expected in 2024 (up from $40 million)[6](index=6&type=chunk) - In April, the company completed a **$1.6 billion debt refinancing** to repay amounts under its 2018 Credit Facility and redeem a portion of its 2025 Notes, resulting in a $10.5 million loss on extinguishment of debt[7](index=7&type=chunk) - The company completed a sale and leaseback of its Torrance, California office building in July, generating net proceeds of approximately **$38 million**[8](index=8&type=chunk) - The CFO reiterated the company's focus on expanding margins and reducing the total leverage ratio to **3.0x** by the end of 2025[8](index=8&type=chunk) [Business and Distributor Momentum](index=2&type=section&id=Business%20and%20Distributor%20Momentum) The company saw a significant 12% year-over-year increase in new distributors, reversing a multi-quarter decline, driven by record attendance at global training events - The number of new distributors worldwide increased **12% year-over-year** and **26% sequentially** in Q2 2024, breaking a trend of 12 consecutive quarters of year-over-year declines[9](index=9&type=chunk) - Extravaganza training events attracted approximately **83,300 attendees** globally, with the Asia Pacific event setting a new attendance record of 24,000 attendees and India's first multi-city event setting a record with 35,700 attendees[8](index=8&type=chunk)[9](index=9&type=chunk) [Regional Performance Analysis](index=4&type=section&id=Regional%20Performance%20Analysis) Regional performance varied, with constant currency sales growth in Latin America, EMEA, and Asia Pacific offset by declines in North America and China Q2 2024 Net Sales Growth by Region (YoY) | Region | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | | North America | (6.7)% | (6.7)% | | Latin America | 2.3% | 4.7% | | EMEA | (0.6)% | 3.5% | | Asia Pacific | (2.1)% | 1.6% | | China | (7.2)% | (4.0)% | | **Worldwide** | **(2.5)%** | **0.2%** | Q2 2024 Volume Point Change by Region (YoY) | Region | YoY % Change | | :--- | :--- | | North America | (13.1)% | | Latin America | (2.1)% | | EMEA | (9.7)% | | Asia Pacific | (1.9)% | | China | (1.8)% | | **Worldwide** | **(6.0)%** | - Most markets in Latin America implemented a **5% price reduction** and Volume Point adjustments to improve product competitiveness and stimulate growth[13](index=13&type=chunk) [Financial Guidance](index=5&type=section&id=Financial%20Guidance) The company provided Q3 2024 guidance and revised its full-year outlook, lowering net sales expectations while raising the adjusted EBITDA forecast Third Quarter 2024 Guidance | Metric | Q3 2024 Guidance | | :--- | :--- | | Net Sales (YoY) | (4.5)% to 0% | | Adjusted EBITDA | $125M – $155M | | Capital Expenditures | $35M – $45M | Full-Year 2024 Guidance (Revised) | Metric | Revised FY24 Guidance | Previous FY24 Guidance | | :--- | :--- | :--- | | Net Sales (YoY) | (3.5)% to +1.5% | 0% to +5% | | Adjusted EBITDA | $560M – $600M | $550M – $590M | | Capital Expenditures | $120M – $150M | $120M – $150M (Reaffirmed) | [Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited statements show a sharp decline in quarterly net income, a continued shareholders' deficit, and lower year-to-date operating cash flow [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2024 vs Q2 2023 Income Statement Highlights (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Worldwide Net sales | $1,281.1 | $1,314.0 | | Gross profit | $998.0 | $1,012.4 | | Operating income | $80.4 | $123.4 | | Net income | $4.7 | $59.9 | | Diluted EPS | $0.05 | $0.60 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in millions) | Line Item | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $374.0 | $575.2 | | Total Assets | $2,602.2 | $2,809.4 | | Long-term debt, net | $2,321.0 | $2,252.9 | | Total Liabilities | $3,639.4 | $3,869.7 | | Total Shareholders' Deficit | $(1,037.2) | $(1,060.3) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30 Cash Flow Highlights (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $116.3 | $181.8 | | Net cash used in investing activities | $(69.0) | $(68.5) | | Net cash used in financing activities | $(240.2) | $(85.3) | [Schedule A: Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Schedule%20A%3A%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP metrics, detailing adjustments for items like restructuring costs to arrive at adjusted net income and adjusted EBITDA Q2 2024 Reconciliation of Net Income to Adjusted Net Income (in millions) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $4.7 | | Expenses related to Restructuring Program | $48.8 | | Expenses related to Transformation Program | $3.5 | | Digital technology program costs | $6.0 | | Loss on extinguishment of debt | $10.5 | | Income tax adjustments for above items | $(18.7) | | **Adjusted net income (Non-GAAP)** | **$54.8** | Q2 2024 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $4.7 | | Interest expense, net | $57.7 | | Income taxes | $7.5 | | Depreciation and amortization | $32.6 | | **EBITDA** | **$102.5** | | Adjustments (Restructuring, Digital Tech, etc.) | $77.5 | | **Adjusted EBITDA (Non-GAAP)** | **$180.0** | - The Credit Agreement Total Leverage Ratio was calculated at **3.5x** based on a TTM Credit Agreement EBITDA of **$691.6 million** and total debt of **$2,422.5 million** as of June 30, 2024[37](index=37&type=chunk)

WHITEHORSE, Yukon, July 30, 2024 (GLOBE NEWSWIRE) -- Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) provides an update on the management of the heap leach facility (“HLF”) incident that occurred at the Eagle Gold Mine on June 24, 2024 (see Company news releases dated June 24, 2024, July 4, 2024, and July 12, 2024). Safety Victoria’s focus continues to be on the safety of its employees and mitigation of harm to the environment. As previously reported, the Company has and will continue to liaise ...