Fri, May 9, 7:04 PM (14 days ago)
**Tootsie Roll Industries, Inc. (TR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $148,455 (down 3.3% YoY) - Domestic sales: $134,156 (down 1.8% YoY) - Foreign sales: $14,300 (down 16.3% YoY) - **Gross Margin:** 35.3% (up from 32.5% YoY) - **Operating Income:** $23,060 (up 107.6% YoY) - **Net Income:** $18,058 (up 14.1% YoY) - **EPS:** $0.25 (up 13.6% YoY) - **Cash Flow from Operations:** $3,602 (down 82.7% YoY) **Key Metrics and Trends:** - **Product Cost of Goods Sold:** $95,500 (down 6.6% YoY) - **Selling, Marketing, and Administrative Expenses:** $29,390 (up 2.7% YoY) - **Effective Tax Rate:** 21.6% (up from 21.4% YoY) - **Current Ratio:** 4.2 (up from 3.8 YoY) - **Net Working Capital:** $250,938 (up from $241,272 YoY) **Uncertainties and Future Operations:** - **Input Costs:** Higher cocoa and chocolate costs expected in 2025 and 2026. - **Tariffs:** Temporary tariffs estimated to have a $4,500 adverse annual effect on earnings. - **Pension Plan:** Uncertainty around the multi-employer pension plan's solvency and withdrawal liability. - **Plant Expansion:** $95,000 to $100,000 investment over seven years to meet demand and improve efficiency. - **Foreign Operations:** Spanish subsidiary expected to continue operating losses and require additional cash financing. **Impact on Future Operations:** - **Higher Input Costs:** May limit the ability to pass on increased costs to customers and consumers. - **Tariffs:** Potential adverse impact on ingredient and packaging costs. - **Pension Plan:** Potential material adverse effect on consolidated results of operations or cash flows. - **Plant Expansion:** Expected to improve operational efficiencies and meet demand. - **Foreign Operations:** May require additional cash financing and could impact overall financial performance.