Lineage, Inc.(US:LINE)2024-11-06 12:13Financial Performance - Total net revenues for Q3 2024 were $1,335 million, a slight increase from $1,329 million in Q3 2023[9] - The company reported a net loss of $543 million for Q3 2024, compared to a net loss of $50 million in Q3 2023[9] - Basic and diluted earnings per share for Q3 2024 were both $(2.44), compared to $(0.26) in Q3 2023[10] - The company reported total operating expenses of $1,850 million in Q3 2024, significantly higher than $1,232 million in Q3 2023[9] - For the nine months ended September 30, 2024, the net income (loss) was $(671) million, compared to $(39) million for the same period in 2023[14] - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $(512) million, compared to a loss of $(42) million in the same period of 2023[150] Assets and Liabilities - Total current assets increased to $1,599 million as of September 30, 2024, up from $1,256 million at December 31, 2023[7] - Total liabilities decreased significantly to $9,134 million as of September 30, 2024, down from $12,849 million at December 31, 2023[7] - Cash and cash equivalents rose to $409 million as of September 30, 2024, compared to $68 million at December 31, 2023[7] - The company’s total stockholders' equity increased to $9,026 million as of September 30, 2024, compared to $5,051 million at December 31, 2023[7] - As of September 30, 2024, total equity stands at $10,083 million, with redeemable noncontrolling interests at $39 million[12] - Total debt decreased to $5,014 million as of September 30, 2024, from $9,009 million at the end of 2023[76] Expenses - The company incurred acquisition, transaction, and other expenses of $592 million in Q3 2024, compared to $19 million in Q3 2023[9] - General and administrative expenses increased to $143 million in Q3 2024, up from $122 million in Q3 2023[9] - The company reported a depreciation and amortization expense of $640 million for the nine months ended September 30, 2024, compared to $557 million in 2023[14] - Other consolidated operating expenses included a depreciation and amortization expense of $210 million for the three months ended September 30, 2024, an increase of $22 million, or 11.7%, compared to $188 million for the same period in 2023[194] Stock and Equity - Additional paid-in capital increased to $10,744 million, reflecting ongoing capital raising efforts[12] - The company issued common stock net of equity raise costs totaling $4,873 million, contributing to the increase in additional paid-in capital[12] - The total number of shares outstanding as of September 30, 2024, was 228 million[12] - The Company executed a put option agreement allowing BGLH to distribute up to 2,036,738 shares of common stock from September 2024 to December 2025, with a liability recorded of $99 million[53] - The maximum number of shares that may be issued under the 2024 Incentive Award Plan is 12,500,000, with annual increases starting January 1, 2025[119] Acquisitions - The Company acquired Entrepôt du Nord for $60 million, strengthening its warehousing network in Canada, with $36 million allocated to property, plant, and equipment[60] - The acquisition of Eurofrigor was completed for approximately $17 million, enhancing the Company's temperature-controlled warehousing capabilities in Italy[61] - The Company purchased Luik Natie for $52 million, including potential earn-out payments of $12 million based on EBITDA performance[62] - The company acquired a warehouse and operating assets from ColdPoint Logistics for $223 million on November 1, 2024, enhancing its temperature-controlled storage capabilities[156] Cash Flow - Cash flows from operating activities for the nine months ended September 30, 2024, provided $446 million, down from $565 million in 2023[14] - The net cash used in investing activities was $(536) million for the nine months ended September 30, 2024, compared to $(645) million in 2023[14] - The company reported cash paid for interest of $454 million for the nine months ended September 30, 2024, compared to $446 million in 2023[15] Operational Metrics - The company operated 487 warehouses with a total capacity of over 85 million square feet and 3 billion cubic feet as of September 30, 2024[159] - Economic occupancy at same warehouses was 84.1% for the three months ended September 30, 2024, a decrease of 190 basis points compared to 86.0% for the same period in 2023[188] - Throughput pallets at same warehouses decreased by 1.7% to 11.3 million pallets for the three months ended September 30, 2024, compared to 11.5 million pallets for the same period in 2023[188] Debt and Financing - The Company entered into a delayed-draw term loan facility with a borrowing capacity of up to $2,400 million, fully drawn on April 9, 2024, to pay off an outstanding loan[80] - The Company repaid the full principal balance of $2,400 million on July 26, 2024, along with $7 million in accrued interest and fees, resulting in a $6 million loss on extinguishment of debt[81] - The total balance of secured debt as of September 30, 2024, was $524 million, down from $4,193 million as of December 31, 2023, due to significant debt repayments[83] Stock-Based Compensation - Stock-based compensation for the period amounted to $160 million, indicating continued investment in employee incentives[12] - The total stock-based compensation expense for September 2024 was $160 million, compared to $8 million in September 2023[137] - Stock-based compensation expense related to time-based RSUs for the three and nine months ended September 30, 2024 was $13 million and $14 million, respectively, compared to no expense in the same periods of 2023[122] Tax and Regulatory - The effective tax rate for the three months ended September 30, 2024, was 7.7%, down from 9.1% in the same period of 2023[75] - Income tax benefit for the three months ended September 30, 2024, was $45 million, an increase of $40 million from $5 million for the same period in 2023[199] Other Comprehensive Income - The balance of Accumulated other comprehensive income (loss) as of September 30, 2024, was $(58) million, an improvement from $(87) million in the same period of 2023[147]