Lamb Weston(US:LW)2024-12-20 15:28Financial Performance - For the thirteen weeks ended November 24, 2024, the net income was a loss of $36.1 million, compared to a net income of $215.0 million for the same period in the previous year[47]. - Adjusted EBITDA for the thirteen weeks ended November 24, 2024, was $281.9 million, down from $376.9 million in the prior year[47]. - Restructuring plan expenses amounted to $159.1 million for the thirteen weeks ended November 24, 2024[47]. - Interest expense for the thirteen weeks ended November 24, 2024, was $43.3 million, compared to $29.1 million for the same period in the previous year[47]. - The company recorded approximately $39 million related to a voluntary product withdrawal during the twenty-six weeks ended November 24, 2024[49]. - The company reported unrealized derivative losses of $3.0 million for the thirteen weeks ended November 24, 2024[47]. - Foreign currency exchange losses were $9.6 million for the thirteen weeks ended November 24, 2024[47]. Debt and Financing - The company entered into a new $500 million term loan facility, using $225 million to repay the Term A-1 loan and $275 million for the revolving credit facility[42]. - At November 24, 2024, the company had $2,990.9 million of fixed-rate and $1,106.8 million of variable-rate debt outstanding[61]. - A one percent increase in interest rates related to variable-rate debt would have resulted in an increase in interest expense of $11.2 million annually ($8.6 million after-tax) at November 24, 2024[61]. - At May 26, 2024, the company had $2,495.0 million of fixed-rate and $1,341.7 million of variable-rate debt outstanding[61]. - A one percent increase in interest rates related to variable-rate debt would have resulted in an increase in interest expense of $13.6 million annually ($10.6 million after-tax) at May 26, 2024[61]. Market Sensitivity - A hypothetical 10 percent decline in market prices would have resulted in a charge to "Cost of sales" of $8.8 million ($6.6 million after-tax) as of November 24, 2024[58]. - A hypothetical 10 percent adverse change in exchange rates versus the U.S. dollar would result in losses of $73.9 million ($56.2 million after-tax) as of November 24, 2024[60]. - A hypothetical 10 percent decline in market prices would have resulted in a charge to "Cost of sales" of $9.2 million ($6.9 million after-tax) as of May 26, 2024[58]. - A hypothetical 10 percent adverse change in exchange rates would result in losses of $63.3 million ($48.1 million after-tax) as of May 26, 2024[60]. Accounting and Reporting - The company has not reported any material changes to off-balance sheet arrangements[54]. - There were no material changes to critical accounting policies and estimates during the second quarter of fiscal 2025[55].