Itafos Reports Strong Operational and Financial Q1 2024 Results
TSX-V: IFOS
News Release
ITAFOS REPORTS STRONG OPERATIONAL AND FINANCIAL Q1 2024 RESULTS
HOUSTON, TX – May 8, 2024 – Itafos Inc. (TSX-V: IFOS) (the “Company”) reported today its Q1 2024 financial and operational highlights.
The Company’s financial statements and management’s discussion and analysis for the quarter ended March 31, 2 024 are av ailable
under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.itafos.com. All figures are in thousands of US
Dollars except as otherwise noted.
CEO Commentary
“We are pleased to report another quarter of strong operational and financial performance. For the three months ended March 31, 2024,
we reported revenues of $128.0 million, 7% higher than Q1 2023 driven by increased sales volumes, and adjusted EBITDA of $43.2
million.
During Q1 2024, we have continued to make progress on a number of key initiatives related to t he company’s asset portfolio. On April
29, 2024 we released our updated NI 43-101 Technical Report for Conda, confirming our 2037 mine life for the Husky 1 / North Dry Ridge
(“H1/NDR) mine. We also acquired the Dry Ridge lease that is adjacent to Husky 1 and continued work on the build-out of infrastructure
associated with the H1/NDR project which remains on schedule and on budget.
In Brazil, we continue to make progress on our Fertilizer Re start Program and commissioning has commenced associated with our
Partially Acidulated Phosphate Rock (“PAPR”) product. Additionally, we successfully negotiated a 25-year extension to the mining contract
and mining lease associated with the Farim asset, which is now valid until 2048.
Finally, the process to explore and evaluate various strategic alternatives to enhance value for all Itafos shareholders has co ncluded
without an announced transaction. The Board of Directors and the management team have and will continue to operate the business with
the objective of creating shareholder value and will review strategic opportunities as they arise.” said G. David Delaney, CEO of Itafos.
Q1 2024 Key Highlights
revenues of $128.0 million
Adjusted EBITDA of $43.2 million 1
net income of $23.7 million
basic earnings of C$ 0.17/share
free cash flow of $17.7 million 1
March 31, 2024 Key Highlights
trailing 12 months Adjusted EBITDA of $132.0 million 1
net debt of $47.1 million 1
net leverage ratio of 0.4x 1
Maintained FY 2024 Guidance
sales volumes guidance of 320-340 thousands of tonnes P 2O52
corporate selling, general and administrat ive expenses guidance of $17-20 million1
maintenance capex guidance of $25-35 million 1
growth capex guidance of $35-46 million 1
1Adjusted EBITDA, trailing 12 months Adjusted EBITDA, maintenance capex, growth capex, net debt, net leverage ratio, free cash flow and corporate
selling, general and administrative expenses are each a non-IFRS financial measure. For additional information on non-IFRS financial measures, see
“Non-IFRS financial measures” below.
2Sales volumes reflect quantity in P2O5 of Conda sales projections.
Q1 2024 Market Highlights
Monoammonium phosphate (“MAP”) New Orleans (“NOLA”) prices averaged $624/st in Q1 2024 compared to $580/st in Q1 2023, up
8% year-over-year. Specific factors driving the year-over-year increase in MAP NOLA were as follows:
the tightening of MAP supply into the North American market; and
minor increase in on farm MAP application in the spring of 2024.
Q1 2024 Financial Highlights
For Q1 2024, the Company’s financial highlights were as follows:
revenues of $128.0 million in Q1 2024 compared to $119.6 million in Q1 2023;
Adjusted EBITDA of $43.2 million in Q1 2024 compared to $43.0 million in Q1 2023;
net income of $23.7 million in Q1 2024 compared to $28.2 million in Q1 2023;
basic earnings of C$0.17/share in Q1 20 24 compared to C$0.20/share in Q1 2023; and
free cash flow of $17.7 million in Q1 2024 compared to $18.8 million in Q1 2023.
The company’s Adjusted EBITDA performance was flat compared to th e corresponding period in the prior year. The reduction in the
Company’s Q1 2024 net income compared to Q1 2023 was primarily due to higher income taxes, partially offset by lower selling, general,
and administrative expenses and finance expenses.
The Company’s total capex3 spend in Q1 2024 was $6.4 million compared to $2.8 million in Q1 2023 with the increase primarily due to
development activities at H1/NDR at Conda and activities related to the Fertilizer Restart Program at Arraias.
March 31, 2024 Highlights
As at March 31, 2024, the Company had trailing 12 months Adjusted EBITDA of $132.0 million compared to $131.8 million at the end of
2023.
As at March 31, 2024, the Company had net debt of $47.1 million compared to $61.3 million at the end of 2023 , with the reduction due
to the repayment of principal debt outstanding from free cash flows generated and hi gher cash and cash equivalents. The Company ’s
net debt as at March 31, 2024 was comprised of $37.7 million in cash and $84.8 million in debt (gross of deferred financing costs). As at
March 31, 2024 and December 31, 2023, the Company’s net leverage ratio was 0.4x and 0.5x, respectively.
As at March 31, 2024, the Company had liquidity 4 of $74.2 million comprised of $37.7 milli on in cash and $36.5 million in undrawn
borrowing capacity under its $80 million asset-based revolving credit facility (the “ABL Facility”).
Q1 2024 Operational Highlights
Environmental, Health, and Safety (“EHS”)
Sustained EHS performance, including no reportable environmental releases and three recordable incidents, which resulted in
a consolidated TRIFR of 0.88.
Conda
Produced 90,246 tonnes P 2O5 at Conda in Q1 2024 compared to 82,145 tonnes P 2O5 in Q1 2023 with the increase primarily
due to higher throughput in 2024;
Generated revenues of $122.8 million at Conda in Q1 2024 compared to $116.0 m illion in Q1 2023 with the increase primarily
due to higher sales volumes, partially offset by lower realized prices; and
Generated Adjusted EBITDA at Conda of $46.6 million in Q1 2024 compared to $47.5 million in Q1 2023 with the decrease
primarily due to lower realized prices, which were partially offset by higher sales volumes.
3Total capex is a non-IFRS financial measur e. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
4Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
Q1 2024 Other Highlights
Produced 33,216 tonnes of sulfuric acid at Arraias in Q1 2024 compared to 20,614 tonnes in Q1 2023 with the increase due to
higher customer demand; and
Generated Adjusted EBITDA at A rraias of $0.4 million in Q1 2024 compared to $0.2 million in Q1 2023 with the increase due to
higher sulfuric acid and DAPR sales volumes.
Market Outlook
Prices in Q1 2024 were comparable to prices in 2023. Phosphate application through the fall of 2023 and now into the spring of 2024 has
remained strong, supporting higher prices despite softer crop prices . Moving forward, the Company expects a softening in Q2 in pricing
due to seasonal factors including a summer reset and lower crop prices. Expectations of supply adjustments in the overall phosp hate
import market into North America continue to create some uncertainty in the market going forward.
Specific factors the Company expects to support pricing in the global phosphate fertilizer markets through the end of 2024 are as follows:
low inventory levels in the North American ma rket and continued strength in global demand;
ongoing export restrictions from China; partially offset by
constructive crop prices that hav e softened from historical highs.
Financial Outlook
The Company maintained its guidance for 2024 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2024
Sales Volumes (thousands of tonnes P2O5) 320‐340
Corporate selling, general and administrative expenses $17‐20
Maintenance capex $25‐35
Growth capex $35‐46
Business Outlook
The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:
improving financial and operational performance; and
executing on the infrastructure and civil wo rks required for the mine development for H1/NDR.
About Itafos
The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are:
Conda – a vertically integrated phosphate fertilizer business lo cated in Idaho, US with production capacity as follows:
- approximately 550kt per year of monoa mmonium phosphate (“MAP”), MAP with micronutrients (“MAP+”), superphosphoric
acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”); and
- approximately 27kt per year of hy drofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosphat e fertilizer business located in Tocantins, Brazil with production capacity as follows:
- approximately 500kt per year of single superphos phate (“SSP”) and SSP with micronutrients (“SSP+”); and
- approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity);
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Santana – a vertically integrated high- grade phosphate mine and fertilizer plant project located in Pará, Brazil; and
Araxá – a vertically integrated rare ear th elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.
The Company is a Delaware corporation that is headquartered in Houston, TX. The Company’s shares trade on the TSX Venture
Exchange (“TSX-V”) under the ticker symbol “IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is
an affiliate of Castlelake, L.P., a global private investment firm.
For more information, or to join the Comp any’s mailing list to receive notification of future news releases, please visit the C ompany’s
website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitute s forward-looking information, including statements with respect t o: the
Company’s planned operations and strategies; the timing for the commencement of operations, infrastructure and civil works at H1 / NDR;
the expected resource life of H1 / NDR; t he Fertilizer Restart Program at Arraias; and economic and market trends with respect to the
global agriculture and phosphate fertilizer markets. All information other than information of historical fact is forward-looking information.
Statements that address activities , events or developments that t he Company believes, expects or anticipates will or may occur in the
future include, but are not limited to, stat ements regarding estimates and/or assumpti ons in respect of the Company’s financial and
business outlook are forward-looking information. The use of any of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”,
“may”, “will”, “project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking
information.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management set
out herein, which management believes are reasonable as at t he date the statements are made. Those opinions, assumptions and
estimates are inherently subject to a variety of risks and uncert ainties and other known and unknow n factors that could cause a ctual
events or results to differ materially from those projected in the forward-looking information. These include the Company’s expectations
and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company’s mine ral
reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; fo reign
operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement
obligations, general economic changes, including inflation and forei gn exchange rates; the actions of the Company’s competitors and
counterparties; financing, liquidity, credit and capital risks; t he loss of key personnel; impairment risks; cybersecurity risk s; risks relating
to transportation and infrastructure; changes to equipment and s uppliers; concentration risks, adver se litigation; changes to p ermitting
and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious
acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating
in foreign jurisdictions; the risks posed by a controlling shareho lder and other conflicts of interest; risks related to reputa tional damage,
the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to
internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not
exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from
those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated,
estimated or intended. Additional risks and uncertainties affecting the forward-looki ng information contained in this news rele ase are
described in greater detail in the Company’s Annual Informati on Form and current Management’s Discussion and Analysis available
under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. There can be no
assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Compan y
undertakes no obligation to update forward-l ooking statements if circumst ances or management’s estimates, assumptions or opinions
should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly
qualified by this cautionary statement and is made as of the date of this news release.
This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the Company’s
prospective results of operations, includi ng statements regarding expected adjusted EBITD A, net income, basic earnings per shar e,
maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications
as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding
anticipated activities and results, and such information may not be appropriate for other purposes. The Company and management
believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements;
however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook
information speaks only as of the date on which it is made and th e Company undertakes no obligation to publicly update or revis e any
financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Matthew O’Neill
Itafos Investor Relations
713-242-8446
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has be en
reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and
Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and
technical information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved
by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-tim e
employee of WSP USA, Inc. and is independent of the Company. The Company’s latest technical report in respect of Conda is entitled,
“NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,” with an effective date of July 1, 2023 (the “Conda Technical Report”) and
is available under the Company’s website at www.itafos.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca
Non-IFRS Financial Measures
This press release contains both International Financial Reporting Standards (“IFRS”) and certain non-IFRS measures that management
considers to evaluate the Company’s operational and financial performance. Non-IFRS measures are a numerical measure of a
company’s performance, that either includ e or exclude amounts that are not normally in cluded or excluded from the most directly
comparable IFRS measures. Management believes that the non-IFRS meas ures provide useful supplement al information to investors,
analysts, lenders and others. In evaluating non-IFRS measures, investors, analysts, lenders and others should consider that non -IFRS
measures do not have any standardized meaning under IFRS and that the methodology applied by the Company in calculating such non-
IFRS measures may differ among companies and analysts. Non-IFRS measures should not be considered as a substitute for, nor superior
to, measures of financial performance prepar ed in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the
most directly comparable IFRS measures are included below.
DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS
measure
Definition Most directly comparable IFRS
measure
Why the Company uses the
measure
EBITDA Earnings before interest, taxes,
depreciation, depletion and
amortization
Net income (loss) and operating income
(loss)
EBITDA is a valuable indicator of
the Company’s ability to generate
operating income
Adjusted EBITDA EBITDA adjusted for non-cash,
extraordinary, non-recurring and other
items unrelated to the Company’s core
operating activities
Net income (loss) and operating income
(loss)
Adjusted EBITDA is a valuable
indicator of the Company’s ability
to generate operating income
from its core operating activities
normalized to remove the impact
of non-cash, extraordinary and
non-recurring items. The
Company provides guidance on
Adjusted EBITDA as useful
supplemental information to
investors, analysts, lenders, and
others
Trailing 12
months Adjusted
EBITDA
Adjusted EBITDA for the current and
preceding three quarters
Net income (loss) and operating income
(loss) for the current and preceding three
quarters
The Company uses the trailing 12
months Adjusted EBITDA in the
calculation of the net leverage
ratio (non-IFRS measure)
Total capex Additions to property, plant, and
equipment and mineral properties
adjusted for additions to asset
retirement obligations, additions to
right-of-use assets and capitalized
interest
Additions to property, plant and
equipment and mineral properties
The Company uses total capex in
the calculation of total cash capex
(non-IFRS measure)
Maintenance
capex
Portion of total capex relating to the
maintenance of ongoing operations
Additions to property, plant and
equipment and mineral properties
Maintenance capex is a valuable
indicator of the Company’s
required capital expenditures to
sustain operations at existing
levels
Growth capex Portion of total capex relating to the
development of growth opportunities
Additions to property, plant and
equipment and mineral properties
Growth capex is a valuable
indicator of the Company’s capital
expenditures related to growth
opportunities.
Net debt Debt less cash and cash equivalents
plus deferred financing costs (does not
consider lease liabilities)
Current debt, long-term debt and cash
and cash equivalents
Net debt is a valuable indicator of
the Company’s net debt position
as it removes the impact of
deferring financing costs.
Net leverage ratio Net debt divided by trailing 12 months
Adjusted EBITDA
Current debt, long-term debt and cash
and cash equivalents; net income (loss)
and operating income (loss) for the
current and preceding three quarters
The Company’s net leverage ratio
is a valuable indicator of its ability
to service its debt from its core
operating activities.
Liquidity Cash and cash equivalents plus
undrawn committed borrowing
capacity
Cash and cash equivalents Liquidity is a valuable indicator of
the Company’s liquidity
Free cash flow Cash flows from operating activities,
which excludes payment of interest
expense, plus cash flows from
investing activities
Cash flows from operating activities and
cash flows from investing activities
Free cash flow is a valuable
indicator of the Company’s ability
to generate cash flows from
operations after giving effect to
required capital expenditures to
sustain operations at existing
levels. Free cash flow is a
valuable indicator of the
Company’s cash flow available
for debt service or to fund growth
opportunities. The Company
provides guidance on free cash
flow as useful supplemental
information to investors, analysts,
lenders, and others.
Corporate selling,
general and
administrative
expenses
Corporate selling, general and
administrative less share-based
payment expense.
Selling, general and administrative
expenses
The Company uses corporate
selling, general and
administrative expenses to
assess corporate performance.
EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
For the three months ended March 31, 2024 and 2023
For the three months ended March 31, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 29,512 $ 277 $ (193) $ (5,879) $ 23,717
Finance (income) expense, net 1,433 (252) 1 2,387 3,569
Current and deferred income tax expense
(recovery) 6,484 — — (2,330) 4,154
Depreciation and depletion 8,926 701 5 85 9,717
EBITDA $ 46,355 $ 726 $ (187) $ (5,737) $ 41,157
Unrealized foreign exchange (gain) loss — 611 (67) — 544
Share-based payment expense — — — 422 422
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Other (income) expense, net 211 (955) 1 — (743 )
Adjusted EBITDA $ 46,566 $ 382 $ (253) $ (3,528) $ 43,167
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 37,637 $ (319) $ (258) $ (5,822) $ 31,238
Depreciation and depletion 8,926 701 5 85 9,717
Realized foreign exchange loss 3 — — — 3
Share-based payment expense — — — 422 422
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Adjusted EBITDA $ 46,566 $ 382 $ (253) $ (3,528) $ 43,167
For the three months ended March 31, 2023, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 27,985 $ (248) $ 70 $ 400 $ 28,207
Finance (income) expense, net 1,702 (136) 84 3,836 5,486
Current and deferred income tax expense
(recovery) 8,416 — — (12,598) (4,182 )
Depreciation and depletion 9,384 681 3 47 10,115
EBITDA $ 47,487 $ 297 $ 157 $ (8,315) 39,626
Unrealized foreign exchange (gain) loss — (76) (401) 488 11
Share-based payment expense — — — 2,700 2,700
Transaction costs — — — 711 711
Other income (17) (32) (38) — (87 )
Adjusted EBITDA $ 47,470 $ 189 $ (282) $ (4,416) $ 42,961
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 38,088 $ (492) $ (285) $ (7,875) $ 29,436
Depreciation and depletion 9,384 681 3 47 10,115
Realized foreign exchange gain (2) — — 1 (1 )
Share-based payment expense — — — 2,700 2,700
Transaction costs — — — 711 711
Adjusted EBITDA $ 47,470 $ 189 $ (282) $ (4,416) $ 42,961
As at March 31, 2024 and 2022
As at March 31, 2024 and December 31, 2023 the Company had trailing 12 months Adjusted EBITDA as follows:
(unaudited in thousands of US Dollars)
March 31,
2024
December 31,
2023
For the three months ended March 31, 2024 $ 43,167 $ —
For the three months ended December 31, 2023 29,509 29,509
For the three months ended September 30, 2023 19,655 19,655
For the three months ended June 30, 2023 39,677 39,677
For the three months ended March 31, 2023 — 42,961
Trailing 12 months Adjusted EBITDA $ 132,008 $ 131,802
TOTAL CAPEX
For the three months ended March 31, 2024 and 2023
For the three months ended March 31, 2024, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Additions to property, plant and equipment $ (1,443) $ 1,109 $ (1) $ — $ (335 )
Additions to mineral properties 3,762 — — — 3,762
Additions to asset retirement obligations 2,987 177 — — 3,164
Additions to right-of-use assets — (162) 1 — (161 )
Total capex $ 5,306 $ 1,124 $ — $ — $ 6,430
Accrued capex (2,054) — — — (2,054 )
Total cash capex $ 3,252 $ 1,124 $ — $ — $ 4,376
Maintenance capex $ 419 $ 408 $ — $ — $ 827
Accrued maintenance capex (179) — — — (179 )
Cash maintenance capex $ 240 $ 408 $ — $ — $ 648
Growth capex $ 4,887 $ 716 $ — $ — $ 5,603
Accrued growth capex (1,875) — — — (1,875 )
Cash growth capex $ 3,012 $ 716 $ — $ — $ 3,728
For the three months ended March 31, 2023, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Additions to property, plant and equipment $ 8,251 $ (799) $ — $ 9 $ 7,461
Additions to mineral properties 694 881 72 — 1,647
Additions to asset retirement obligations (6,181) (56) — — (6,237 )
Additions to right-of-use assets — (22) — — (22 )
Total capex $ 2,764 $ 4 $ 72 $ 9 $ 2,849
Accrued capex (611) — — — (611 )
Total cash capex $ 2,153 $ 4 $ 72 $ 9 $ 2,238
Maintenance capex $ 1,450 $ — $ — $ 9 $ 1,459
Accrued maintenance capex (273) — — — (273 )
Cash maintenance capex $ 1,177 $ — $ — $ 9 $ 1,186
Growth capex $ 1,314 $ 4 $ 72 $ — $ 1,390
Accrued growth capex (338) — — — (338 )
Cash growth capex $ 976 $ 4 $ 72 $ — $ 1,052
NET DEBT AND NET LEVERAGE RATIO
As at March 31, 2024 and December 31, 2023 the Company had net debt and net leverage ratio as follows:
(unaudited in thousands of US Dollars March 31, December 31,
except as otherwise noted) 2024 2023
Current debt $ 29,133 $ 29,127
Long-term debt 54,345 61,441
Cash and cash equivalents (37,704) (30,753)
Deferred financing costs related to the Credit Facilities 1,353 1,489
Net debt $ 47,127 $ 61,304
Trailing 12 months Adjusted EBITDA $ 132,008 $ 131,802
Net leverage ratio 0.4x 0.5x