Andlauer Healthcare Group (AND) Q1 2025 earnings summary

Executive summary

• Revenue grew 3.1% year-over-year to $166.1 million, driven by organic growth in Canadian transportation and logistics, partially offset by declines in US truckload businesses and the deconsolidation of Nova Pack.

• Net income rose 35.5% to $20.2 million, including a $5.0 million gain from the Nova Pack deconsolidation; excluding this, net income was $15.2 million.

• EBITDA, excluding the Nova Pack gain, increased 1.0% to $40.0 million; EBITDA margin declined slightly to 24.1% from 24.6%.

• Announced a definitive agreement for acquisition by UPS in an all-cash deal valuing the company at $2.2 billion, pending shareholder and regulatory approval.

Financial highlights

• Operating income was $21.6 million, up 1.5% year-over-year.

• Earnings per share (diluted) were $0.51, or $0.38 excluding the Nova Pack gain, compared to $0.35 in Q1 2024.

• Total comprehensive income was $20.0 million, down slightly from $20.5 million due to negative foreign currency translation.

• Dividend of $0.12 per share paid for the quarter.

Outlook and guidance

• Intends to continue quarterly dividends of $0.12 per share until the UPS transaction closes, subject to financial and legal considerations.

• Management expects continued organic growth in Canadian operations, with US truckload businesses remaining a drag.