NEWPORT BEACH, Calif., April 16, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc. (NASDAQ:PMGC) (the "Company," "PMGC," "we," or "us"), a diversified public holding company, is pleased to announce the signing of a non-binding Letter of Intent ("LOI") to acquire a U.S.-based, cash-flow positive information technology ("IT") custom packaging company. About the Target Company Founded in 2011 and headquartered in Southern California, the Target is a well-established provider of custom packaging solutions for IT prod ...

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported total net production of 86,700 BOE per day, with net income of $185 million and adjusted EBITDA of $601 million [21][35] - Average realized prices were $70.06 per barrel of oil, $2.31 per Mcf of gas, and $25.82 per barrel of NGLs [35] - The company generated $235 million in total revenues, with EBITDA of $162 million and operating cash flow of $134 million [36] - Free cash flow for the quarter was $81 million, leading to a distribution of $60 million or $0.50 per unit [36][62] Business Line Data and Key Metrics Changes - The company maintained a production mix of 24% oil, 52% natural gas, and 24% NGLs for the fourth quarter [35] - The company achieved a median payout period of 15 months for its wells, assuming flat pricing conditions [12] Market Data and Key Metrics Changes - The company anticipates a higher operating cash flow in 2025 due to recent increases in natural gas prices [10] - The commodity mix by revenue in 2024 was 59% oil, 21% natural gas, and 20% NGLs, with expectations of a shift towards 54% natural gas in 2025 [30] Company Strategy and Development Direction - The company focuses on four strategic pillars: maintaining financial strength, disciplined execution, disciplined reinvestment rate, and maximizing cash distributions [3][4] - The company plans to continue its acquisition strategy, targeting cash-flowing assets at discounted prices, and aims to maintain a low reinvestment rate to optimize distributions [6][32] - The company is looking to add a third rig in 2025 to enhance drilling activities in the Oswego and Anadarko formations [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for natural gas, viewing it as a critical fuel for the next decade [53] - The company does not foresee a prolonged downturn similar to 2015-2020 and is prepared to make acquisitions when favorable opportunities arise [26][27] - Management emphasized the importance of maintaining a clean balance sheet and maximizing distributions during varying commodity price environments [20][19] Other Important Information - The company has a net debt-to-EBITDA ratio of 0.8x, indicating strong financial health [17] - The company has distributed over $1 billion to unitholders since inception, reflecting its commitment to returning capital [19] Q&A Session Summary Question: Expectations for gas and oil prices - Management expects to see better deals in both gas and oil, with a preference for crude oil acquisitions when prices are in the $60 range [42][43] Question: Value of infrastructure and potential monetization - Management views their infrastructure as critical to operations and does not plan to sell it, as it generates more EBITDA than its purchase price [44][46] Question: Timing and focus of the third rig - The third rig is expected to arrive soon, initially focusing on the Oswego formation before moving to the deep Mississippian project [49] Question: Competitive landscape for acquisitions - The competitive environment in the Mid-Con has increased, with well-capitalized companies seeking larger packages, but the company will continue to focus on smaller, accretive acquisitions [73][74] Question: Organic leasing opportunities - The company has significant acreage held by production and plans to allocate around $30 million for leasing in 2025, primarily in deeper areas [76][77] Question: Impact of non-op budget - The non-op budget remains consistently low, with limited participation in non-operated wells [87]

Financial Data and Key Metrics Changes - Consolidated operating income and net sales in Q1 fiscal 2025 increased by 26% and 15% respectively compared to Q1 fiscal 2024, with record net income rising 46% to $168 million or $1.20 per diluted share [10][12][13] - Cash flow from operating activities surged 82% to $203 million in Q1 fiscal 2025, up from $111.7 million in Q1 fiscal 2024 [12] - Consolidated EBITDA increased 22% to $273.9 million in Q1 fiscal 2025, compared to $224.4 million in Q1 fiscal 2024 [13] Business Line Data and Key Metrics Changes - Flight Support Group achieved record net sales of $713.2 million in Q1 fiscal 2025, a 15% increase from $618.7 million in Q1 fiscal 2024, driven by 13% organic growth [11][18] - Electronic Technologies Group's net sales rose 16% to $330.3 million in Q1 fiscal 2025, reflecting strong 11% organic growth [27][28] - Flight Support Group's operating income increased 22% to $166.1 million, while Electronic Technologies Group's operating income rose 38% to $76.5 million [23][28] Market Data and Key Metrics Changes - The defense, space, and aerospace product deliveries contributed to the strong organic sales growth in both business segments [11][27] - The Electronic Technologies Group's backlog reached the highest ever quarter-end amount, indicating strong future demand [27] Company Strategy and Development Direction - The company is strategically focused on key markets such as defense, space, and commercial aviation, aiming to capitalize on new opportunities and sustain momentum across diverse industries [9][32] - The company continues to seek complementary acquisitions that align with its strategic and financial goals, with several key acquisitions completed in Q1 fiscal 2025 [14][15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current U.S. administration's pro-business agenda, which aligns with the company's long-term goals [9] - The company anticipates continued net sales growth in both divisions, driven by strong organic growth and increased demand for products [32] Other Important Information - The company paid a regular semiannual cash dividend of $0.11 per share, marking its 93rd consecutive semiannual cash dividend since 1979 [14] - The net debt-to-EBITDA ratio was 2.08 times as of January 31, 2025, compared to 2.06 times as of October 31, 2024 [13] Q&A Session Summary Question: Flight Support Group's sales growth drivers - The growth is primarily from deeper market penetration with existing customers rather than new customer expansion [38] Question: Future margin expectations - Management is cautious about predicting higher margins but acknowledges a trend of gradual improvement over the years [45][47] Question: Margin expansion in both segments - The Electronic Technologies Group aims for EBITDA margins in the 26% to 28% range, while the Flight Support Group's margins are expected to remain competitive [52][53] Question: Pricing strategy and market share - The company has not significantly increased prices, focusing instead on covering cost increases while maintaining customer satisfaction [76][78] Question: Defense market opportunities - Management sees potential in missile defense programs and cost-saving solutions for customers, although significant revenue may not materialize until later years [115][122] Question: Supply chain performance - Supply chain issues have improved, but some areas still face challenges, impacting sales potential [102][105]

Financial Data and Key Metrics Changes - The company reported record revenue of $561.6 million for the first quarter of fiscal 2025, representing a year-over-year increase of 41.6% [14] - Adjusted net income was $13.3 million, with diluted earnings per share of $0.25, reflecting a 35% increase compared to the same quarter last year [16] - Adjusted EBITDA increased by 68% to $68.8 million, with an adjusted EBITDA margin of 12.3%, up from 10.3% in the prior year [17] - The company experienced a net loss of $3.1 million due to non-recurring expenses related to a transformative acquisition [16] Business Line Data and Key Metrics Changes - The revenue mix for the year included 11.2% organic growth and 30.4% from recent acquisitions [14] - The company achieved a record project backlog of $2.66 billion, indicating strong demand for infrastructure services [17] Market Data and Key Metrics Changes - Local markets in the Sunbelt are growing, with states focused on improving road quality and increasing capacity due to significant migration [9] - Public infrastructure market lettings for roads and bridges increased by approximately 16% year-over-year across the company's eight-state footprint [10] - Florida's infrastructure funding saw contract awards grow by over 50% in the first half of the current state fiscal year due to the Moving Florida Forward program [10] Company Strategy and Development Direction - The company is focused on a strategic growth model that includes both acquisitions and organic growth, with a strong 11% organic growth reported this quarter [11] - The acquisition pipeline remains active, with ongoing conversations in current and potential new states [10] - The company aims to maintain a strong balance sheet while integrating new acquisitions and reducing leverage to approximately 2.5 times in the next four to five quarters [18][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong demand for infrastructure services and the ability to bid patiently due to a robust backlog [90] - The company anticipates a typical year for construction inflation, estimating inflation could be around 4% to 5% across the total cost structure [44] - Management expects funding for infrastructure projects to grow in the mid to high single digits, supported by both state funding mechanisms and the IIJA [77] Other Important Information - The company has cash and cash equivalents of $132.5 million and $393.4 million available under its credit facility [17] - Capital expenditures for the first quarter were $26.8 million, with total expected capital expenditures for fiscal 2025 in the range of $130 million to $140 million [20] Q&A Session Summary Question: Contribution of recent acquisitions to guidance - Management indicated that the combined revenue contribution from the two recent acquisitions is expected to be in the range of $120 million to $130 million for the remainder of the year, with a backlog contribution of $90 million to $100 million [27] Question: Need to digest recent acquisitions - Management acknowledged the need to maintain a strong balance sheet while integrating new acquisitions, emphasizing a commitment to organizational integration [32] Question: Cost inflation outlook - Management expects a typical year for construction inflation, with costs being passed through in bids, and noted stable energy costs [44] Question: Updates on state DOT funding - Management reported that all states have healthy funding mechanisms, with Texas and Florida leading in infrastructure funding [47] Question: Concerns about funding delays - Management has not heard of any pauses in funding for projects and noted that the new administration is looking to prioritize hard infrastructure [87] Question: Backlog and bidding environment - Management indicated that while the backlog may plateau, they continue to see plenty of bidding opportunities and are able to bid at good margins [91]