TORONTO, July 31, 2025 /CNW/ – Andlauer Healthcare Group Inc. (TSX:AND) (“AHG” or the “Company”) today reported its financial results for the three and six-month periods ended June 30, 2025 (“Q2 2025” and “YTD 2025”, respectively).
Q2 2025 Summary
- Revenue totaled $156.6 million, compared to $161.4 million for the three-month period ended June 30, 2024 (“Q2 2024”);
- Operating income was $18.9 million, compared to $22.2 million in Q2 2024;
- Net income was $13.5 million, compared to $15.7 million in Q2 2024;
- EBITDA¹ totaled $38.1 million, compared to $40.1 million in Q2 2024;
- EBITDA Margin¹ was 24.3%, compared to 24.8% in Q2 2024
- On April 23, 2025, AHG entered into a definitive arrangement agreement (the “Arrangement Agreement”) with affiliates of UPS (NYSE:UPS) (collectively, “UPS”) under which UPS has agreed to acquire AHG via an all-cash transaction that values AHG at an equity value of approximately $2.2 billion (the “Transaction”). Under the terms of the Arrangement Agreement, shareholders of AHG will be entitled to receive C$55.00 per share in cash in connection with the closing of the Transaction;
- On June 24, 2025, AHG shareholders voted overwhelmingly in favour of a resolution to approve the Transaction; and on June 26, 2025, the Ontario Superior Court of Justice (Commercial List) issued a final order approving the Transaction;
- The Company expects the Transaction to be completed in the second half of this year, subject to receipt of approval under the Competition Act (Canada), which process remains ongoing, and the satisfaction or waiver of the other customary closing conditions. All other regulatory clearances and approvals required to consummate the Transaction have been obtained.
“Our results for the quarter reflect continued organic growth in our Canadian specialized transportation network and logistics and distribution product line, offset by continued challenges in our US-based truckload businesses and one-time costs associated with the Transaction. Our EBITDA margin for quarter remained within our target range of 24% to 26%,” said Michael Andlauer, Chief Executive Officer of AHG.
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Three months ended June 30, |
Six months ended June 30, |
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($CAD 000s, except per share amounts) |
2025 |
2024 |
Variance |
2025 |
2024 |
Variance |
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|
Revenue |
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|
Logistics and distribution |
40,888 |
39,463 |
3.6 % |
83,447 |
77,381 |
7.8 % |
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|
Packaging solutions |
687 |
4,786 |
(85.7) % |
4,766 |
9,728 |
(51.0) % |
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|
Healthcare Logistics segment |
41,575 |
44,249 |
(6.0) % |
88,213 |
87,109 |
1.3 % |
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|
Ground transportation |
103,210 |
105,006 |
(1.7) % |
211,685 |
211,394 |
0.1 % |
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|
Air freight forwarding |
8,205 |
7,918 |
3.6 % |
16,567 |
15,913 |
4.1 % |
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|
Dedicated and last mile delivery |
19,054 |
18,329 |
4.0 % |
37,857 |
36,074 |
4.9 % |
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|
Intersegment revenue |
(15,442) |
(14,056) |
9.9 % |
(31,632) |
(27,906) |
13.4 % |
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|
Specialized Transportation segment |
115,027 |
117,197 |
(1.9) % |
234,477 |
235,475 |
(0.4) % |
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|
Total revenue |
156,602 |
161,446 |
(3.0) % |
322,690 |
322,584 |
0.0 % |
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|
Operating expenses |
137,725 |
139,271 |
(1.1) % |
282,247 |
279,166 |
1.1 % |
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|
Operating income |
18,877 |
22,175 |
(14.9) % |
40,443 |
43,418 |
(6.9) % |
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|
Gain on deconsolidation of subsidiary |
126 |
– |
N/A |
5,146 |
– |
N/A |
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|
Share of profit from equity-accounted joint venture, net of tax |
511 |
– |
N/A |
803 |
– |
N/A |
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|
Net income |
13,450 |
15,731 |
(14.5) % |
33,675 |
30,654 |
9.9 % |
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|
Foreign currency translation adjustment |
(12,046) |
2,336 |
N/A |
(12,258) |
7,873 |
N/A |
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|
Total comprehensive income |
1,404 |
18,067 |
(92.2) % |
21,417 |
38,527 |
(44.4) % |
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Earnings per share – basic |
$ 0.34 |
$ 0.38 |
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