Financial Performance - As of March 31, 2025, QXO, Inc. reported a net revenue of $13.5 million, a decrease of $928,000 or 6.4% compared to the same period in the prior year[96]. - The company's total cost of revenue for the three months ended March 31, 2025, was $8.1 million, down $656,000 or 7.5% year-over-year, with a gross margin of 39.9%[98]. - Selling, general and administrative expenses surged to $44.4 million, an increase of $39.2 million or 755.9% compared to the same period in the prior year, primarily due to new management compensation and acquisition-related costs[99]. - Interest income increased significantly by $56.6 million for the three months ended March 31, 2025, attributed to interest earned on cash reserves following the equity investment[101]. Acquisition and Growth Strategy - The company completed the acquisition of Beacon Roofing Supply, Inc. for approximately $11.0 billion, transitioning to a building products distribution company[94]. - QXO aims to achieve $50 billion in annual revenues within the next decade through strategic acquisitions and organic growth in the $800 billion building products distribution industry[95]. Liquidity and Cash Management - The company's cash balance was $5.08 billion as of March 31, 2025, providing sufficient liquidity for operations over the next 12 months[108]. - QXO raised approximately $830.6 million through a private placement of 67.5 million shares at $12.30 per share to partially fund the Beacon acquisition[110]. - Following the acquisition, QXO Building Products issued $2.25 billion in Senior Secured Notes due 2032 to finance the transaction[112]. - The company paid $22.5 million in dividends to holders of its Convertible Preferred Stock during the three months ended March 31, 2025[109]. - The company had a cash balance of approximately $400 million post-Beacon Acquisition, primarily in bank deposits and money market funds[124]. Debt and Financing Activities - The Term Loan Facility has an aggregate borrowing availability of $2.0 billion, with a borrowing base that determines the actual amount available[119]. - The Borrower borrowed $400 million under the ABL Facility to partially fund the Beacon Acquisition, leaving a remaining borrowing capacity of $1.6 billion[119]. - Cash used in financing activities increased by $22.4 million year-over-year, mainly due to payments of preferred stock dividends[127]. - The ABL Facility requires a minimum fixed charge coverage ratio of 1.0 to 1.0 if availability is less than $120 million or 10% of the borrowing base[123]. - The Term Loan Facility requires scheduled quarterly amortization payments of 1.0% of the original principal amount[116]. - The ABL Credit Agreement includes customary affirmative and negative covenants, with certain events of default related to a change of control[122]. Operational Cash Flow - Cash provided by operating activities increased by $36.1 million year-over-year, attributed to interest income offset by higher personnel costs[125]. - Cash used in investing activities increased by $744,000 year-over-year, primarily due to the purchase of the QXO domain name and IT equipment capital expenditures[126]. Risk Management - The company does not hold any derivative instruments or engage in hedging activities[128].
SilverSun Technologies(SSNT) - 2025 Q1 - Quarterly Report