A survey of more than 500 business leaders that found a broadly pessimistic outlook on the ability to operate successfully in the Empire State https://t.co/ZRKtX0xf93 ...

Core Insights - Microbix Biosystems Inc. reported disappointing financial results for Q3 and YTD 2025, with significant declines in revenue and net loss compared to the previous year [1][2][6] Financial Performance - Q3 revenue was $3.5 million, a 31% decrease from $5.1 million in Q3 2024, driven by a 44% drop in antigen sales and a 9% decline in QAPs sales [3][11] - Year-to-date (YTD) revenue was $14.8 million, down 22% from $19.1 million in YTD 2024, with antigen revenues up 11% but QAPs revenues down 25% [7][11] - Gross margin for Q3 was 41%, down from 54% in the previous year, primarily due to a less favorable product mix [4][11] - YTD gross margin was 56%, down from 63% in YTD 2024, affected by lower sales of higher-margin products [8][11] Operating Expenses - Operating expenses in Q3 increased by 22% compared to Q3 2024, influenced by lower investment income and the absence of grant income [5][11] - YTD operating expenses rose slightly due to increased investment in R&D and sales and marketing activities [8][11] Net Loss and Cash Flow - The company reported a net loss of $1.6 million for Q3, compared to a net income of $246,746 in Q3 2024 [6][11] - YTD net loss was $765,150, a significant decline from a net income of $3.1 million in YTD 2024 [9][11] - Cash used in operating activities was $1.9 million for Q3, compared to cash provided of $604,064 in Q3 2024 [6][11] Financial Position - As of June 30, 2025, the company had strong cash and equivalents of $12.1 million, with a current ratio of 9.73 and a debt to equity ratio of 0.30, both improved from the previous year [10][11] Corporate Outlook - Management remains cautious about the outlook for the remainder of fiscal 2025, particularly due to reduced sales into China [2][12] - The company aims to drive sales growth across all business lines while improving gross margins and bottom-line results [12]

Financial Data and Key Metrics Changes - The company's consolidated revenue increased by over 2% while adjusted EBITDA declined by 9% from $165.8 million to $151.4 million [9] - Earnings per common share from continuing operations increased by 33% to $0.44 compared to $0.33 in the same quarter of the prior year [9] - The company ended the quarter with $1.8 billion of debt outstanding and $53.2 million of cash on the balance sheet [15] Business Line Data and Key Metrics Changes - The inpatient rehab division saw a revenue increase of 16%, adjusted EBITDA increase of 15%, and a 6% increase in average daily census compared to the first quarter of last year [9] - The outpatient division faced challenges due to severe weather events and a 3% reduction in Medicare reimbursement, but had a strong finish to the quarter [4][11] - The critical illness recovery hospital division experienced a revenue decrease of 3% driven by a 2% decline in rate per patient day and a 1% decline in patient days [12] Market Data and Key Metrics Changes - The outpatient division's net revenue per visit increased from $99 to $102, while total visits declined by 1% due to one less workday [11] - The critical illness recovery hospitals' occupancy rate increased from 71% to 73%, but adjusted EBITDA declined by 25% from the prior year [13] Company Strategy and Development Direction - The company plans to open several new rehab hospitals and units, including a 45-bed rehab hospital in Temple, Texas, and a 63-bed rehab hospital in Ozark, Missouri, among others [7][8] - The outpatient division added 10 de novo clinics while strategically closing or consolidating 13 locations to optimize resources [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outpatient division's outlook despite recent challenges, focusing on improving patient access and investing in technology [4] - The company is adjusting its business outlook for 2025, expecting revenue in the range of $5.3 billion to $5.5 billion and adjusted EBITDA between $510 million and $530 million [19] Other Important Information - The company repurchased almost 650,000 shares at an average price of $17.52, totaling $11.4 million [14] - A cash dividend of $6.625 per share was declared, payable on May 29, 2025 [14] Q&A Session Summary Question: How should occupancy be thought about for the rest of the year with new capacity coming online? - Management expects occupancy to stay around 85% plus even with new business coming online [21] Question: Was the miss in LTACH related to internal expectations or consensus? - The impact from high cost outlier was higher than anticipated, with a 100% increase compared to the previous year [22][23] Question: Any updates on mitigation strategies regarding high cost outlier and transmittal rule? - Management is in ongoing conversations with regulatory bodies to address these issues and mitigate impacts [34] Question: What do startup costs look like this year versus last year? - Startup losses are relatively the same from last year to this year [38] Question: Any initiatives in outpatient rehab to improve margins? - The company is implementing technology changes and seeing benefits, with expected increases in commercial rates [42][44] Question: Plans to accelerate growth in rehab to diversify away from LTACH? - There are plans to accelerate growth in rehab, with several projects already signed and under construction [49]

Financial Data and Key Metrics Changes - Consolidated sales for Q3 FY 2023 reached ¥3,747.5 billion, a significant increase of 22% year-on-year, marking a record high for the quarter [5] - Consolidated operating income increased by ¥41.8 billion year-on-year to ¥463.3 billion, the second highest quarterly level [5] - Net income rose by ¥42.4 billion year-on-year to ¥363.9 billion, while adjusted EBITDA increased by ¥75.5 billion to ¥605 billion [5][6] - The nine-month cumulative consolidated operating cash flow, excluding the Financial Services segment, was ¥618.5 billion [6] Business Segment Data and Key Metrics Changes Game & Network Services (G&NS) - Q3 sales increased by 16% year-on-year to ¥1,444.4 billion, driven by higher third-party software sales and favorable foreign exchange rates [8] - Operating income decreased by ¥30.1 billion year-on-year to ¥86.1 billion due to lower profitability of PlayStation 5 hardware [10] - PS5 hardware unit sales reached 8.2 million units in the quarter, falling short of the annual target of 25 million units but achieving record quarterly sales [12] Music Segment - Q3 sales increased by 16% year-on-year to ¥422.1 billion, with operating income rising by ¥13.1 billion to ¥76.1 billion [20] - Streaming revenue grew by 12% for Recorded Music and 17% for Music Publishing [21] Pictures Segment - Q3 sales increased by 10% year-on-year to ¥366.3 billion, with operating income rising significantly by ¥16.2 billion to ¥41.6 billion [26] - The impact of Hollywood strikes is expected to peak next fiscal year, affecting profits [29] Entertainment, Technology & Services Segment - Q3 sales decreased by 2% year-on-year to ¥735.7 billion, with operating income down by ¥3.9 billion to ¥77.2 billion [32] Imaging & Sensing Solutions Segment - Q3 sales increased by 21% year-on-year to ¥505.2 billion, with operating income rising by ¥14.9 billion to ¥99.7 billion, both record highs for the segment [37] Financial Services Segment - Q3 revenue increased by ¥287.3 billion year-on-year to ¥311.7 billion, with operating income rising by ¥30.2 billion to ¥77.3 billion [44] Market Data and Key Metrics Changes - Monthly active users (MAU) for gaming reached a record high of 120 million accounts, with total gameplay time increasing by 13% year-on-year [13] - The cumulative sales of Marvel's Spider-Man 2 exceeded 10 million copies, contributing significantly to profits [14] Company Strategy and Development Direction - The company aims to optimize sales of PS5 hardware while balancing profitability, anticipating a gradual decline in unit sales from the next fiscal year [16] - Focus on producing high-quality first-party software and developing live service games, with no major franchise titles planned for next fiscal year [18] - The company plans to expand opportunities in the music business through strategic acquisitions and collaborations [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving stable revenue growth in the Music segment due to the expansion of the streaming market [22] - The company expects operating income for the next fiscal year to slightly increase in the G&NS segment, despite anticipated declines in first-party software profits [48] - The impact of Hollywood strikes on profits is expected to peak next fiscal year, but the company aims for operating income to exceed the current fiscal year [49] Other Important Information - The company is preparing for a spinoff and listing of shares for Sony Financial Group, Inc. in October 2025 [51] Q&A Session Summary Question: Strategic investment and CapEx for the current mid-range plan - The cumulative CapEx for FY '21 to FY '23 is expected to be about ¥1.9 trillion, with M&A and strategic investments at ¥1.8 trillion [56] Question: Spin-off purpose and relationship with business improvement - The spin-off aims to streamline capital allocation and allow both companies to grow independently [62] Question: Market trends for cameras in different regions - Sales in North America and Europe are performing relatively well, with no significant inventory issues reported [79] Question: Expectations for MAU growth and profitability - MAU growth is attributed to seasonality and successful free-to-play titles, with a profit shift of approximately ¥30 billion expected to the fourth quarter [94] Question: Future profitability and margin improvement strategies - The company aims to balance hardware pricing and profitability while focusing on strong first-party content to enhance margins [109]