Andlauer Healthcare Group Reports 2025 Second Quarter Results
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$55.00 per share in cash in connection with the closing of the Transaction;
On June 24, 2025, AHG shareholders voted overwhelmingly in favour of a resolution to approve the Transaction; and on June 26, 2025, the Ontario Superior Court of Justice (Commercial List) issued a final order approving the Transaction;
The Company expects the Transaction to be completed in the second half of this year, subject to receipt of approval under the Competition Act (Canada), which process remains ongoing, and the satisfaction or waiver of the other customary closing conditions. All other regulatory clearances and approvals required to consummate the Transaction have been obtained.
"Our results for the quarter reflect continued organic growth in our Canadian specialized transportation network and logistics and distribution product line, offset by continued challenges in our US-based truckload businesses and one-time costs associated with the Transaction. Our EBITDA margin for quarter remained within our target range of 24% to 26%," said Michael Andlauer, Chief Executive Officer of AHG.
Selected Consolidated Financial Summary
Three months ended
June 30,
Six months ended
June 30,
($CAD 000s, except per share amounts)
2025
2024
Variance
2025
2024
Variance
Revenue
Logistics and distribution
40,888
39,463
3.6 %
83,447
77,381
7.8 %
Packaging solutions
687
4,786
(85.7) %
4,766
9,728
(51.0) %
Healthcare Logistics segment
41,575
44,249
(6.0) %
88,213
87,109
1.3 %
Ground transportation
103,210
105,006
(1.7) %
211,685
211,394
0.1 %
Air freight forwarding
8,205
7,918
3.6 %
16,567
15,913
4.1 %
Dedicated and last mile delivery
19,054
18,329
4.0 %
37,857
36,074
4.9 %
Intersegment revenue
(15,442)
(14,056)
9.9 %
(31,632)
(27,906)
13.4 %
Specialized Transportation segment
115,027
117,197
(1.9) %
234,477
235,475
(0.4) %
Total revenue
156,602
161,446
(3.0) %
322,690
322,584
0.0 %
Operating expenses
137,725
139,271
(1.1) %
282,247
279,166
1.1 %
Operating income
18,877
22,175
(14.9) %
40,443
43,418
(6.9) %
Gain on deconsolidation of subsidiary
126
-
N/A
5,146
-
N/A
Share of profit from equity-accounted joint venture, net of tax
511
-
N/A
803
-
N/A
Net income
13,450
15,731
(14.5) %
33,675
30,654
9.9 %
Foreign currency translation adjustment
(12,046)
2,336
N/A
(12,258)
7,873
N/A
Total comprehensive income
1,404
18,067
(92.2) %
21,417
38,527
(44.4) %
Earnings per share, basic
$ 0.34
$ 0.38
