Gladstone Land Announces Second Quarter 2025 Results
Gladstone Land (NASDAQ:LAND) reported Q2 2025 financial results, marked by a significant shift in revenue recognition timing. The company reported a net loss of $7.9 million, with net loss per share of $0.38, compared to $0.19 in Q2 2024. AFFO was negative $3.5 million (-$0.10 per share) versus $3.7 million ($0.10 per share) in the prior year.
The company modified lease agreements on six farms, reducing fixed base rents in exchange for higher participation rents, which will be primarily recognized in Q4 2025. Total cash lease revenues decreased due to a $6.8 million reduction in fixed base rents. The company maintains strong liquidity with over $150 million in available capital and $165 million in unencumbered properties.
The occupancy rate decreased to 95.9% from 99.3% year-over-year, while the portfolio reduced to 150 farms from 168 farms.Gladstone Land (NASDAQ:LAND) ha comunicato i risultati finanziari del secondo trimestre 2025, evidenziando un cambiamento significativo nel momento di riconoscimento dei ricavi. La società ha registrato una perdita netta di 7,9 milioni di dollari, con una perdita netta per azione di 0,38 dollari, rispetto a 0,19 dollari nel secondo trimestre 2024. L'AFFO è stato negativo per 3,5 milioni di dollari (-0,10 dollari per azione) contro 3,7 milioni di dollari (0,10 dollari per azione) dell'anno precedente.
La società ha modificato i contratti di locazione di sei aziende agricole, riducendo gli affitti base fissi in cambio di affitti variabili maggiori, che saranno principalmente riconosciuti nel quarto trimestre 2025. I ricavi totali da affitti in contanti sono diminuiti a causa di una riduzione di 6,8 milioni di dollari negli affitti base fissi. La società mantiene una solida liquidità con oltre 150 milioni di dollari di capitale disponibile e 165 milioni di dollari in proprietà non gravate da ipoteche.
Il tasso di occupazione è sceso al 95,9% rispetto al 99,3% dell'anno precedente, mentre il portafoglio si è ridotto a 150 aziende agricole da 168.
Gladstone Land (NASDAQ:LAND) reportó los resultados financieros del segundo trimestre de 2025, destacando un cambio significativo en el momento del reconocimiento de ingresos. La compañía registró una pérdida neta de 7,9 millones de dólares, con una pérdida neta por acción de 0,38 dólares, en comparación con 0,19 dólares en el segundo trimestre de 2024. El AFFO fue de menos 3,5 millones de dólares (-0,10 dólares por acción) frente a 3,7 millones de dólares (0,10 dólares por acción) del año anterior.
La empresa modificó los contratos de arrendamiento de seis granjas, reduciendo las rentas base fijas a cambio de rentas variables más altas, que se reconocerán principalmente en el cuarto trimestre de 2025. Los ingresos totales por rentas en efectivo disminuyeron debido a una reducción de 6,8 millones de dólares en las rentas base fijas. La compañía mantiene una sólida liquidez con más de 150 millones de dólares en capital disponible y 165 millones de dólares en propiedades libres de cargas.
La tasa de ocupación bajó a 95,9% desde el 99,3% interanual, mientras que la cartera se redujo a 150 granjas desde 168.
Gladstone Land (NASDAQ:LAND)은 2025년 2분기 재무 실적을 발표하며 수익 인식 시점에 중대한 변화를 보였습니다. 회사는 790만 달러의 순손실을 기록했으며, 주당 순손실은 0.38달러로 2024년 2분기의 0.19달러에 비해 악화되었습니다. AFFO는 350만 달러의 적자(-주당 0.10달러)로, 전년 동기의 370만 달러(주당 0.10달러) 대비 감소했습니다.
회사는 6개 농장의 임대 계약을 수정하여 고정 기본 임대료를 낮추고, 대신 더 높은 참여 임대료를 적용했으며, 이는 주로 2025년 4분기에 인식될 예정입니다. 고정 기본 임대료가 680만 달러 감소함에 따라 총 현금 임대 수익이 줄었습니다. 회사는 1억 5천만 달러 이상의 가용 자본과 1억 6,500만 달러 상당의 무담보 부동산을 보유하며 강한 유동성을 유지하고 있습니다.
점유율은 전년 대비 99.3%에서 95.9%로 하락했으며, 포트폴리오는 168개 농장에서 150개 농장으로 축소되었습니다.
Gladstone Land (NASDAQ:LAND) a publié ses résultats financiers du deuxième trimestre 2025, marqués par un changement important dans le moment de la reconnaissance des revenus. La société a enregistré une perte nette de 7,9 millions de dollars, avec une perte nette par action de 0,38 dollar, contre 0,19 dollar au deuxième trimestre 2024. L'AFFO était de -3,5 millions de dollars (-0,10 dollar par action) contre 3,7 millions de dollars (0,10 dollar par action) l'année précédente.
La société a modifié les contrats de location de six fermes, réduisant les loyers fixes de base en échange de loyers variables plus élevés, qui seront principalement reconnus au quatrième trimestre 2025. Les revenus totaux des loyers en espèces ont diminué en raison d'une réduction de 6,8 millions de dollars des loyers fixes de base. La société maintient une forte liquidité avec plus de 150 millions de dollars de capital disponible et 165 millions de dollars de propriétés non grevées.
Le taux d’occupation a diminué à 95,9% contre 99,3% en glissement annuel, tandis que le portefeuille est passé de 168 fermes à 150 fermes.
Gladstone Land (NASDAQ:LAND) meldete die Finanzergebnisse für das zweite Quartal 2025, geprägt von einer bedeutenden Änderung im Zeitpunkt der Umsatzerfassung. Das Unternehmen verzeichnete einen Nettoverlust von 7,9 Millionen US-Dollar mit einem Nettoverlust je Aktie von 0,38 US-Dollar, verglichen mit 0,19 US-Dollar im zweiten Quartal 2024. Das AFFO lag bei negativen 3,5 Millionen US-Dollar (-0,10 US-Dollar je Aktie) gegenüber 3,7 Millionen US-Dollar (0,10 US-Dollar je Aktie) im Vorjahr.
Das Unternehmen passte Mietverträge für sechs Farmen an, reduzierte die festen Grundmieten zugunsten höherer Beteiligungsmieten, die hauptsächlich im vierten Quartal 2025 erfasst werden. Die gesamten Bar-Mieteinnahmen sanken aufgrund einer Reduzierung der festen Grundmieten um 6,8 Millionen US-Dollar. Das Unternehmen verfügt über eine starke Liquidität mit über 150 Millionen US-Dollar verfügbarem Kapital und 165 Millionen US-Dollar an unbelasteten Immobilien.
Die Auslastungsrate sank von 99,3 % auf 95,9 %, während das Portfolio von 168 Farmen auf 150 Farmen verkleinert wurde.
- Strong liquidity position with over $150 million in immediately-available capital
- Nearly 100% of outstanding debt held at fixed interest rates
- Executed four lease agreements increasing annual net operating income by 9.3%
- Operating expenses decreased by $923,000 or 6.9% year-over-year
- Increased water assets ownership by 2.5% to 55,306 acre-feet
- Net loss increased significantly to $7.9 million from $823,000 in prior-year quarter
- AFFO turned negative to -$3.5 million from positive $3.7 million year-over-year
- Total operating revenues declined 42.3% to $12.3 million
- Fixed base rents decreased by $6.8 million due to lease modifications
- Occupancy rate declined to 95.9% from 99.3%
- Portfolio reduced by 18 farms year-over-year
Insights
Gladstone Land's shift to participation rent model significantly impacts Q2 results with $7.9M net loss, delayed revenue recognition to Q4.
Gladstone Land's Q2 2025 results reveal a significant strategic shift in their revenue model that's substantially impacting current performance. The company has modified lease agreements on six farms by reducing fixed base rents in exchange for higher participation rent components, essentially trading guaranteed income for potentially higher but less predictable crop-based revenue.
This transition has created immediate financial pressure, with net loss expanding to $7.9 million compared to $823,000 in Q2 2024. AFFO swung to negative $3.5 million (-$0.10/share) from positive $3.7 million ($0.10/share) last year. Total revenues plummeted 42.3% to $12.3 million, primarily from a $6.8 million reduction in fixed base rents.
The revenue recognition timing shift is critical – the company now expects to record the majority of 2025 revenue in Q4 when crop results materialize. This creates heightened earnings volatility and increased dependence on crop performance. Meanwhile, the $0.14 quarterly dividend remains unchanged despite negative AFFO, suggesting potential dividend coverage concerns.
Balance sheet metrics show total assets declined 6.9% to $1.26 billion, while the company reduced indebtedness by 8.7% to $558.9 million. Portfolio contraction is evident with farm count decreasing from 168 to 150, and occupancy dropping from 99.3% to 95.9%. Cash flow from operations plunged 75.2% to just $3.9 million.
Management's commentary indicates they view these lease modifications as temporary, with intentions to return to standard lease structures or potentially sell underperforming farms. The positive note is their strong liquidity position with $150 million in available capital and $165 million in unencumbered properties that could be leveraged if needed.
Please note that the limited information that follows in this press release is a summary and is not adequate for making an informed investment decision.
MCLEAN, VA / ACCESS Newswire / August 7, 2025 / Gladstone Land Corporation (Nasdaq:LAND) ("Gladstone Land" or the "Company") today reported financial results for the second quarter and year ended June 30, 2025. A description of funds from operations ("FFO"), core FFO ("CFFO"), and adjusted FFO ("AFFO"), all non-GAAP (generally accepted accounting principles in the United States) financial measures, appear at the end of this press release. All per-share references are to fully-diluted, weighted-average shares of common stock, unless noted otherwise. For further detail, please refer to the Quarterly Report on Form 10-Q (the "Form 10-Q"), which is available on the Investors section of the Company's website at www.GladstoneLand.com.
Second Quarter 2025 Activity:
Timing Shift in Earnings Recognition: For the 2025 crop year, we modified lease agreements on six of our farms by reducing or eliminating fixed base rent amounts and, in some cases, providing cash lease incentives to certain tenants in exchange for significantly increasing the participation rent components. Additionally, we are currently operating two properties (encompassing four farms) under management agreements with third-party operators. As a result of these changes, we expect revenues from fixed base rents to be significantly lower throughout the year, while participation rents are anticipated to be considerably higher. This shift will delay the timing of revenue recognition and increase our reliance on participation rents, which are typically recognized once crop results are known, generally in the fourth quarter. As such, the majority of our revenue and annual earnings for 2025 are expected to be recognized in the fourth quarter.
Portfolio Activity-Lease Activity: Executed four lease agreements expected to increase annual net operating income by approximately
$166,000 , or9.3% , compared to the prior leases.Debt Activity-Loan Refinancing: Secured a new
$10.6 million loan bearing interest at6.31% (fixed for three years), which was used to repay a$10.3 million maturing loan that bore interest at3.85% .Paid Distributions: Paid monthly cash distributions totaling
$0.14 01 per share of common stock during the quarter ended June 30, 2025.
Second Quarter 2025 Results:
Net loss for the quarter was approximately
Total cash lease revenues decreased, primarily due to a
Excluding the second-quarter reversal of a capital gains fee earned during the first quarter of 2025, aggregate related-party fees decreased by approximately
Cash flows from operations for the current quarter decreased by approximately
Subsequent to June 30, 2025:
Portfolio Activity-California Water Activity: Purchased 1,530 gross acre-feet of water at a total cost of approximately
$583,000 , or approximately$381 per gross acre-foot.Debt Activity-Loan Repayments: Repaid a
$10.4 million maturing bond that bore interest at a stated rate of4.45% .Third Quarter Distributions: Declared monthly cash distributions of
$0.04 67 per share of common stock for each of July, August, and September (totaling$0.14 01 per share of common stock for the quarter).
Comments from David Gladstone, President and CEO of Gladstone Land: "With the approach we've taken on certain of our western permanent crop farms, our earnings for 2025 will be more dependent on participation rents than in prior years, with the large majority expected to be recognized in the fourth quarter. We believe this structure will be the most profitable arrangement for this specific group of farms for the 2025 crop year, supported by their history of high yields and strong crop insurance coverage. Market trends for pistachios and almonds, the crops to which we are most exposed within this group, appear to be mostly positive. Pistachio prices are holding steady amid strong demand, with the recently announced minimum price for the 2025 crop matching last year's level, in line with our expectations. Almonds prices, after an initial dip following the release of the Almond Objective Forecast, have since rebounded somewhat and are currently
Quarterly Summary Information
(Dollars in thousands, except per-share amounts)
For and As of the Quarters Ended | Change | Change | ||||||||||||||
6/30/2025 | 6/30/2024 | ($ / #) | (%) | |||||||||||||
Operating Data: | ||||||||||||||||
Total operating revenues | $ | 12,296 | $ | 21,297 | $ | (9,001 | ) | (42.3 | )% | |||||||
Total operating expenses | (12,510 | ) | (13,433 | ) | 923 | (6.9 | )% | |||||||||
Other expense, net | (7,664 | ) | (8,687 | ) | 1,023 | (11.8 | )% | |||||||||
Net loss | $ | (7,878 | ) | $ | (823 | ) | $ | (7,055 | ) | 857.2 | % | |||||
Less: Aggregate dividends declared on and gains on extinguishment of cumulative redeemable preferred stock, net(1) | (6,002 | ) | (5,831 | ) | (171 | ) | 2.9 | % | ||||||||
Net loss attributable to common stockholders | (13,880 | ) | (6,654 | ) | (7,226 | ) | 108.6 | % | ||||||||
Plus: Real estate and intangible depreciation and amortization | 8,374 | 8,813 | (439 | ) | (5.0 | )% | ||||||||||
Plus: Losses on dispositions of real estate assets, net | 2,149 | 2,800 | (651 | ) | (23.3 | )% | ||||||||||
Adjustments for unconsolidated entities(2) | 11 | 15 | (4 | ) | (26.7 | )% | ||||||||||
FFO available to common stockholders | (3,346 | ) | 4,974 | (8,320 | ) | (167.3 | )% | |||||||||
Less: Acquisition- and disposition-related credits, net | (28 | ) | (11 | ) | (17 | ) | 154.5 | % | ||||||||
(Less) plus: Other nonrecurring (receipts) charges, net(3) | (188 | ) | 48 | (236 | ) | (491.7 | )% | |||||||||
CFFO available to common stockholders | (3,562 | ) | 5,011 | (8,573 | ) | (171.1 | )% | |||||||||
Net adjustment for normalized cash rents(4) | (153 | ) | (926 | ) | 773 | (83.5 | )% | |||||||||
Plus: Amortization of debt issuance costs | 216 | 223 | (7 | ) | (3.1 | )% | ||||||||||
Plus (less): Other non-cash charges (receipts), net(5) | 49 | (605 | ) | 654 | (108.1 | )% | ||||||||||
AFFO available to common stockholders | $ | (3,450 | ) | $ | 3,703 | $ | (7,153 | ) | (193.2 | )% | ||||||
Share and Per-Share Data: | ||||||||||||||||
Weighted-average shares of common stock outstanding, fully diluted | 36,184,658 | 35,838,442 | 346,216 | 1.0 | % | |||||||||||
Diluted net loss per weighted-average common share | $ | (0.384 | ) | $ | (0.186 | ) | $ | (0.198 | ) | 106.6 | % | |||||
Diluted FFO per weighted-average common share | $ | (0.092 | ) | $ | 0.139 | $ | (0.231 | ) | (166.6 | )% | ||||||
Diluted CFFO per weighted-average common share | $ | (0.098 | ) | $ | 0.140 | $ | (0.238 | ) | (170.4 | )% | ||||||
Diluted AFFO per weighted-average common share | $ | (0.095 | ) | $ | 0.103 | $ | (0.199 | ) | (192.3 | )% | ||||||
Cash distributions declared per common share | $ | 0.140 | $ | 0.140 | $ | 0.000 | 0.2 | % | ||||||||
Balance Sheet Data: | ||||||||||||||||
Net investments in real estate and related assets, at cost(6) | $ | 1,195,083 | $ | 1,271,852 | $ | (76,769 | ) | (6.0 | )% | |||||||
Total assets | $ | 1,258,585 | $ | 1,352,553 | $ | (93,968 | ) | (6.9 | )% | |||||||
Total indebtedness(7) | $ | 558,917 | $ | 612,465 | $ | (53,548 | ) | (8.7 | )% | |||||||
Total equity | $ | 670,073 | $ | 708,469 | $ | (38,396 | ) | (5.4 | )% | |||||||
Total common shares outstanding (fully diluted) | 36,184,658 | 35,838,442 | 346,216 | 1.0 | % | |||||||||||
Other Data: | ||||||||||||||||
Cash flows from operations | $ | 3,949 | $ | 15,913 | $ | (11,964 | ) | (75.2 | )% | |||||||
Farms owned | 150 | 168 | (18 | ) | (10.7 | )% | ||||||||||
Acres owned | 103,001 | 111,836 | (8,835 | ) | (7.9 | )% | ||||||||||
Occupancy rate(8) | 95.9 | % | 99.3 | % | (3.4 | )% | (3.4 | )% | ||||||||
Acre-feet of water assets owned | 55,306 | 53,975 | 1,331 | 2.5 | % |
(1) Includes cash dividends paid on our cumulative redeemable preferred stock and the net gain recognized as a result of shares of cumulative redeemable preferred stock that were redeemed.
(2) Represents our pro-rata share of depreciation expense recorded in unconsolidated entities.
(3) Consists primarily of (i) net property and casualty losses (recoveries) recorded and the cost of related repairs expensed as a result of damage to improvements on certain of our farms caused by certain non-recurring events, (ii) one-time legal costs incurred related to certain corporate organizational matters, and (iii) the capital gains fee and subsequent adjustment recorded during the three months ended June 30, 2025, which is not due until after the end of the fiscal year and is subject to further adjustment throughout the remainder of the year.
(4) This adjustment removes the effects of straight-lining rental income, as well as the amortization related to above-market lease values and certain noncash lease incentives and accretion related to below-market lease values, deferred revenue, and tenant improvements, resulting in rental income reflected on a modified accrual cash basis. The effect to AFFO is that cash rents received pertaining to a lease year are normalized over that respective lease year on a straight-line basis, resulting in cash rent being recognized ratably over the period in which the cash rent is earned.
(5) Consists of (i) the net (gain) loss recognized as a result of shares of cumulative redeemable preferred stock that were redeemed, which were non-cash (gains) charges, (ii) our remaining pro-rata share of (income) loss recorded from investments in unconsolidated entities, and (iii) plus (less) net non-cash expense (income) recorded as a result of additional water assets used (received) in certain transactions.
(6) Consists of the initial acquisition price (including the costs allocated to both tangible and intangible assets acquired and liabilities assumed), plus subsequent improvements and other capitalized costs associated with the properties, and adjusted for accumulated depreciation and amortization.
(7) Consists of the principal balances outstanding of all indebtedness, including our lines of credit, notes and bonds payable, and our Series D Term Preferred Stock.
(8) Based on farmable acreage; includes direct-operated farms.
Conference Call for Stockholders: The Company will hold a conference call on Friday, August 8, 2025, at 8:30 a.m. (Eastern Time) to discuss its earnings results. Please call (877) 407-9046 to join the conference call. An operator will monitor the call and set a queue for any questions. A conference call replay will be available after the call and will be accessible through August 15, 2025. To hear the replay, please dial (877) 660-6853, and use playback conference number 13754183. The live audio broadcast of the Company's conference call will also be available online on the Investors section of the Company's website, www.GladstoneLand.com.
About Gladstone Land Corporation:
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. The Company currently owns 150 farms, comprised of approximately 103,000 acres in 15 different states and over 55,000 acre-feet of water assets in California. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, blueberries, figs, olives, pistachios, and wine grapes, which are generally planted every 20-plus years and harvested annually. Over
Owners or brokers who have farmland for sale in the U.S. or those looking to buy farms should contact:
Western U.S. - Bill Reiman at (805) 263-4778 or Bill.R@GladstoneLand.com;
Midwestern U.S. and Mid-Atlantic U.S. - Joey Van Wingerden at (703) 287-5914 or Joe.V@GladstoneLand.com; or
Southeastern U.S. - Brett Smith at (904) 687-5284 or Brett.S@GladstoneLand.com.
Lenders who are interested in providing us with long-term financing on farmland should contact Jay Beckhorn at (703) 587-5823 or Jay.Beckhorn@Gladstone.com.
For stockholder information on Gladstone Land, call (703) 287-5893. For Investor Relations inquiries related to any of the monthly dividend-paying Gladstone funds, please visit www.GladstoneCompanies.com.
Non-GAAP Financial Measures:
FFO: The National Association of Real Estate Investment Trusts ("NAREIT") developed FFO as a relative non-GAAP supplemental measure of operating performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO, as defined by NAREIT, is net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and impairment losses on property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO per share provides investors with an additional context for evaluating its financial performance and as a supplemental measure to compare it to other REITs; however, comparisons of its FFO to the FFO of other REITs may not necessarily be meaningful due to potential differences in the application of the NAREIT definition used by such other REITs.
CFFO: CFFO is FFO, adjusted for items that are not indicative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. These items include certain non-recurring items, such as acquisition- and disposition-related expenses, the net incremental impact of operations conducted through our taxable REIT subsidiary, income tax provisions, and property and casualty losses or recoveries. Although the Company's calculation of CFFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its sustainable operating performance. Accordingly, CFFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance. For a full explanation of the adjustments made to arrive at CFFO, please read the Form 10-Q, filed today with the SEC.
AFFO: AFFO is CFFO, adjusted for certain non-cash items, such as the straight-lining of rents and amortizations into or against rental income (resulting in cash rent being recognized ratably over the period in which the cash rent is earned). Although the Company's calculation of AFFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs, the Company believes it is a meaningful supplemental measure of its sustainable operating performance on a cash basis. Accordingly, AFFO should be considered a supplement to net income computed in accordance with GAAP as a measure of our performance. For a full explanation of the adjustments made to arrive at AFFO, please read the Form 10-Q, filed today with the SEC.
A reconciliation of FFO (as defined by NAREIT), CFFO, and AFFO (each as defined above) to net income (loss), which the Company believes is the most directly-comparable GAAP measure for each, and a computation of fully-diluted net income (loss), FFO, CFFO, and AFFO per weighted-average share is set forth in the Quarterly Summary Information table above. The Company's presentation of FFO, CFFO, or AFFO, does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of its performance or to cash flow from operations as a measure of liquidity or ability to make distributions.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS:
Certain statements in this press release, including, but not limited to, the Company's ability to maintain or grow its portfolio and FFO, expected increases in capitalization rates, benefits from increases in farmland values, increases in operating revenues, and the increase in NAV per share, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Company's ability to procure financing for investments, downturns in the current economic environment, the performance of its tenants, the impact of competition on its efforts to renew existing leases or re-lease real property, and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" within the Company's Form 10-K for the fiscal year ended December 31, 2024, as filed with the SEC on February 19, 2025, and certain other documents filed with the SEC from time to time. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Gladstone Land Corporation, (703) 287-5893
SOURCE: Gladstone Land Corporation
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