Core Viewpoint - Lode Gold Resources Inc. is set to spin out its subsidiary Gold Orogen as a separate public company in March 2025, with a focus on exploration targets in New Brunswick, particularly at McIntyre Brook, which shows promising mineralization potential [1][2]. Group 1: Exploration Targets and Findings - The 2025 exploration program will focus on newly identified targets at McIntyre Brook, where previous findings indicated gold endowment in mineralized rhyolites, consistent with surrounding properties [3][6]. - A small test drill program in 2019 at McIntyre Brook yielded a best intercept of 5.73 g/t Au over a broader 20 m zone of 1.20 g/t Au, reinforcing the area's potential for gold-copper discoveries [3][6]. - The HeliTEM² survey and soil geochemistry conducted in late 2024 revealed electromagnetic conductors and gold-in-soil anomalies, suggesting nearby gold mineralization [4][5]. Group 2: Joint Ventures and Land Packages - Gold Orogen has formed a joint venture with Fancamp, creating one of the largest land packages on the Iapetus Suture Belt, covering 445 km², which is considered highly prospective for gold and polymetallic minerals [2][13]. - The New Brunswick region is noted for its excellent infrastructure and geopolitics, making it an under-explored area with significant potential for mining activities [2]. Group 3: Future Plans and Statements - The company plans to conduct soil sampling and trenching in both McIntyre Brook and Riley Brook to generate and test drill targets, with field crews expected to begin work following the finalization of the exploration plan [8]. - The complete dataset from the 2024 exploration program has been received, and target generation for the 2025 exploration plan is progressing [8].

Core Insights - Brunswick Corporation showcased strong performance at the 2025 Miami International Boat Show, with significant sales from premium boat brands and continued growth in Mercury Marine outboard engine market share [1][2][4] Sales Performance - Brunswick experienced strong sales from its premium boat brands during the five-day event, with Mercury Marine achieving nearly 58% market share in outboard motors, an increase of almost four percentage points year-over-year [4] - Sea Ray reported a 25% increase in unit sales compared to the 2024 Miami Show and nearly a 50% increase compared to the 2022 Show, particularly in larger boats over 32 feet [4] - Boston Whaler maintained strong sales to US customers, although sales to Latin American customers were softer due to the strong dollar [4] Product Innovations - Mercury Marine launched its Single Engine Joystick with Thruster system, enhancing joystick control for a new class of boats [4] - Flite introduced the Series 5 Fliteboard, featuring the new Flite Jet 2 propulsion system developed in collaboration with Mercury Marine, showcasing synergies among Brunswick's brands [4] Awards and Recognition - Brunswick received nine awards at the show, including four Consumer Satisfaction Index Awards and five Neptune Awards for excellence in marketing [4]

Financial Performance - Net sales decreased by 18.2% in 2024 compared to 2023, totaling $5,237.1 million, down from $6,401.4 million[196] - Gross margin fell to 25.8% in 2024, a decrease of 210 basis points from 27.9% in 2023[196] - Operating earnings dropped by 57.6% to $311.6 million in 2024 from $734.9 million in 2023[196] - Net earnings from continuing operations decreased by 65.5% to $149.3 million in 2024, down from $432.6 million in 2023[196] - Diluted earnings per common share from continuing operations fell to $2.21 in 2024, a decline of 63.9% from $6.13 in 2023[196] Segment Performance - Propulsion segment net sales decreased by 25.0% to $2,074.2 million in 2024 from $2,763.8 million in 2023, primarily due to lower OEM production rates and engine orders[209] - Adjusted operating earnings for the Propulsion segment fell by 49.4% to $255.2 million in 2024, down from $504.2 million in 2023[209] - Engine P&A segment net sales decreased by 3.3% to $1,160.8 million in 2024, with volume decline contributing to a 3.9% drop[213] - Adjusted operating earnings for the Engine P&A segment increased by 1.3% to $224.7 million in 2024, compared to $221.8 million in 2023[212] - Navico Group segment net sales decreased by 12.5% to $800.2 million in 2024, driven by reduced sales to marine OEMs[216] - Adjusted operating earnings for the Navico Group segment fell by 42.3% to $52.7 million in 2024, down from $91.3 million in 2023[216] - Boat segment net sales decreased by 21.9% to $1,553.5 million in 2024, attributed to lower wholesale orders and higher discounting[219] - Adjusted operating earnings for the Boat segment dropped by 57.9% to $74.0 million in 2024, compared to $175.9 million in 2023[219] Expenses and Charges - Restructuring, exit, and impairment charges increased to $121.7 million in 2024 from $54.7 million in 2023, with estimated annualized cost savings of approximately $24.0 million[202] - Selling, general and administrative expenses as a percentage of net sales increased by 160 basis points in 2024 compared to 2023[201] Cash Flow and Liquidity - Free cash flow decreased to $284.3 million in 2024 from $473.4 million in 2023, primarily due to lower net earnings[226] - Net cash provided by operating activities of continuing operations was $449.5 million in 2024, down from $745.2 million in 2023, reflecting lower net earnings[228] - Total cash, cash equivalents, and marketable securities decreased to $269.8 million as of December 31, 2024, down from $468.6 million in 2023, representing a decline of 42.4%[233] - Total liquidity as of December 31, 2024, was $1,266.8 million, an increase of 4.8% from $1,210.5 million in 2023[233] Debt and Financing - The company plans to reduce debt by $125 million in 2025 and maintain capital expenditures at approximately $160 million[238] - Total debt as of December 31, 2024, was $2,340.6 million, a decrease from $2,430.4 million in 2023[233] - The debt-to-capitalization ratio was 55% as of December 31, 2024, compared to 54% in 2023[233] - Net cash used for financing activities was $442.7 million, including $613.2 million in long-term debt payments and $200.0 million in common stock repurchases[231] - The company had $997.0 million available under its Credit Facility as of December 31, 2024, compared to $741.9 million in 2023, reflecting a 34.4% increase[234] Impairment and Goodwill - The company recorded an $80.0 million impairment of goodwill for the Navico Group reporting unit during the year ended December 31, 2024[254] - The company recorded impairment charges of $5.0 million for the Navico trade name in 2024, $16.6 million in 2023 (including $13.0 million for Navico), and $17.4 million in 2022 related to capitalized software intangible assets[257] Foreign Currency and Risk Management - Approximately 25% of annual net sales are transacted in currencies other than the U.S. dollar, with significant exposure to Euros, Canadian dollars, Australian dollars, and Brazilian real[193] - The estimated reduction in fair market value from a 10% adverse change in foreign currency rates is $69.3 million for 2024 and $91.7 million for 2023[264] - The company uses foreign currency forward and option contracts to manage exposure to foreign exchange rate risks, primarily related to the Euro, Canadian dollar, Australian dollar, and Brazilian Real[261] - The company manages foreign currency exposure through derivative financial instruments to offset gains or losses on underlying assets or liabilities[261] Interest Rate Management - Fixed-to-floating interest rate swaps are utilized to convert a portion of long-term debt from fixed to floating rate debt, aiming to offset changes in fair value due to benchmark interest rate fluctuations[262] - The company does not engage in financial instruments for trading or speculative purposes, focusing instead on hedging transactions to mitigate market risks[260] Accounting and Reporting - Recent accounting pronouncements have been adopted during the year ended December 31, 2024, with further details available in the consolidated financial statements[259] - Impairment tests for indefinite-lived intangible assets are conducted at least annually, comparing fair value with carrying amount[257] - The company employs models to evaluate the sensitivity of financial instruments to market risk, assuming instantaneous, parallel shifts in exchange rates[263]

Group 1 - Brunswick Corporation's Board of Directors has elected CEO David M. Foulkes as chairman of the board, effective March 1, 2025 [1] - The decision to combine the roles of Board Chair and CEO is aimed at driving the execution of the company's strategic plan [2] - David M. Foulkes has been with Brunswick since 2007 and has held various leadership roles, including President of Brunswick Consumer Solutions and Chief Technology Officer [2] Group 2 - Brunswick Corporation is a global leader in marine recreation, focusing on innovation and technology-driven solutions [3] - The company operates over 60 industry-leading brands in marine propulsion, parts, accessories, and boat manufacturing [3] - Brunswick has approximately 14,500 employees across 26 countries and has received multiple awards, including being named America's Best Large Employers for 2024 by Forbes Magazine [3]

Core Viewpoint - The investment stance on Brunswick Corporation (NYSE: BC) remains a hold due to uncertainty regarding demand recovery amid macroeconomic conditions [1] Investment Approach - The investment strategy focuses on long-term investments while also considering short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The investment horizon is medium to long-term, aiming to find companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Q4 2024 Earnings Conference Call In this presentation, Brunswick uses certain non-GAAP financial measures, which are numerical measures of a registrant's historical or future financial performance, financial position or cash flows that exclude amounts, or are subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets or statements of cash flows of ...

Financial Data and Key Metrics Changes - Brunswick Corporation reported a 15% decrease in net sales for Q4 2024 compared to Q4 2023, with adjusted operating margins at 4% and adjusted EPS of $0.24 [21][22] - For the full year, sales were down 18%, with adjusted operating margins of 9.5%, resulting in adjusted diluted EPS of $4.57, a decline of 48% [23] - The company generated a record $278 million in free cash flow for Q4, contributing to a full-year free cash flow conversion of 92% [22][23] Business Segment Data and Key Metrics Changes - The Propulsion business experienced a 24% decrease in sales due to inventory moderation efforts, although market share in outboard engines increased [24] - Engine Parts and Accessories saw slightly lower net sales in Q4 but achieved growth in earnings and operating margins for the full year, aided by operational efficiencies [10][25] - Navico Group's sales were flat year-over-year, with improved performance in the Aftermarket business offsetting declines in OEM orders [26] - The Boat business reported an 18% decrease in sales for Q4, consistent with lower planned production levels [28] Market Data and Key Metrics Changes - U.S. new boat retail sales ended 2024 down by high single-digit percentages compared to 2023, with Brunswick performing slightly better than the industry in premium segments [7][15] - The U.S. outboard engine industry retail units declined by 8% for the full year, with Brunswick's Mercury Marine gaining 110 basis points of market share [15][21] Company Strategy and Development Direction - Brunswick is focused on cost containment, capital strategy execution, and managing working capital, which resulted in a free cash flow conversion of 92% [8][30] - The company plans to continue investing in new products and technologies to support strategic growth initiatives while managing inventory levels [11][30] - Brunswick anticipates a cautious outlook for Q1 2025 but remains focused on delivering steady free cash flow and resilient earnings per share [31] Management's Comments on Operating Environment and Future Outlook - Management noted that interest rate relief since September could serve as a tailwind for 2025, despite ongoing uncertainties regarding tariffs [12][13] - The company is preparing for various scenarios regarding tariffs and has significantly reduced exposure to China [12][36] - Management expressed optimism about strong boating participation and interest in new products, despite elevated discounting levels [14][31] Other Important Information - Brunswick completed $200 million in share repurchases in 2024 and increased its dividend for the 12th consecutive year [30] - The company celebrated its 100th anniversary of being listed on the New York Stock Exchange [46] Q&A Session Summary Question: Can you help us unpack the $1.25 cost savings in the EPS bridge? - Management indicated that the savings come from a combination of run rate savings from staff reductions and operational efficiencies achieved through production optimization [50][54] Question: How much of the $1.25 cost savings is structural versus temporary? - Management estimated that the savings are roughly 50-50 between structural and temporary [58][59] Question: What factors could lead to the low and high ends of the guidance range? - The high end of the range assumes a market that outperforms flat, while the low end assumes a market decline and unfavorable FX rates [66][69] Question: What is the outlook for the first quarter? - Management expects Q1 to be similar to Q4, with continued improvement in wholesale ordering patterns as the year progresses [33][75] Question: How does the company plan to manage tariffs and FX impacts? - Management is actively working to mitigate tariff impacts through inventory staging and pricing strategies, while also monitoring foreign currency fluctuations [36][102] Question: What is the industry outlook for 2025? - Management anticipates a flat retail market but sees potential tailwinds from lower boat loan rates and improved consumer sentiment [109][111]

Core Insights - Brunswick Corporation reported record performance at major early-season trade and boat shows, particularly at the Dusseldorf Boat Show, which attracted over 200,000 attendees [1][2] Company Performance - At the Dusseldorf Boat Show, Sea Ray Boats achieved record unit sales, surpassing last year's figures by more than 20% [4] - Quicksilver Boats set a record for retail units sold, tripling sales compared to the 2024 event [4] - Mercury Marine maintained its leadership in outboard engine share in Europe, holding a 55% share across the show and nearly 70% for outboards of 150hp and above, both representing an increase of seven basis points from 2024 [4] Product Launches and Innovations - Sea Ray launched the all-new SDX 270 Surf at the Dusseldorf event, which received positive feedback from attendees and channel partners [4] - Navico Group showcased its technology, with over 80% of boats on display featuring Navico technology, including the debut of the Fathom system and CZone Mobile by an EMEA boatbuilder [4] Market Trends - Mercury Marine's outboard share in North America continues to grow, with nearly 50% of outboards displayed at the New York show and 48% and 45% in Minneapolis and Toronto, respectively, indicating a rise of almost seven basis points in Toronto compared to the previous year [2][4] - The strong performance at these trade shows reflects the enthusiasm for Brunswick's brands and products globally, highlighting the company's commitment to enhancing on-water experiences [2]

Core Insights - Brunswick reported revenue of $1.15 billion for the quarter ended December 2024, a decrease of 15.2% year-over-year, with EPS at $0.24 compared to $1.45 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.04 billion by 10.57%, and the EPS also surpassed the consensus estimate of $0.18 by 33.33% [1] Financial Performance Metrics - Net Sales for Propulsion were $452.10 million, exceeding the average estimate of $382.34 million, but reflecting a year-over-year decline of 23.5% [4] - Net Sales for Engine Parts & Accessories were $226.20 million, slightly above the average estimate of $225.79 million, with a year-over-year decrease of 4.8% [4] - Net Sales for Boat were $348.30 million, surpassing the average estimate of $317.10 million, but down 18% year-over-year [4] - Net Sales for Segment Eliminations were -$66.80 million, compared to the average estimate of -$64.31 million, marking a year-over-year decline of 23.7% [4] - Net Sales for Navico Group were $195.10 million, above the average estimate of $188.82 million, with a slight year-over-year decrease of 0.6% [4] Operating Earnings - Adjusted Operating Earnings for Propulsion were $25.40 million, exceeding the average estimate of $23.08 million [4] - Adjusted Operating Earnings for Engine Parts & Accessories were $25.30 million, below the average estimate of $31.82 million [4] - Adjusted Operating Earnings for Navico Group were $12.90 million, below the average estimate of $15.80 million [4] - Adjusted Operating Earnings for Corporate/Other were -$27.40 million, better than the average estimate of -$28.86 million [4] - Adjusted Operating Earnings for Boat were $11 million, slightly above the average estimate of $10.89 million [4] Stock Performance - Brunswick's shares returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Brunswick reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $1.45 per share a year ago, indicating a significant decline in profitability [1] - The company achieved revenues of $1.15 billion for the quarter, surpassing the Zacks Consensus Estimate by 10.57%, but down from $1.36 billion year-over-year [2] Financial Performance - The earnings surprise for the quarter was 33.33%, while the previous quarter saw a slight miss with actual earnings of $1.17 per share against an expectation of $1.18 [1][2] - Over the last four quarters, Brunswick has surpassed consensus EPS estimates only once and has topped revenue estimates twice [2] Stock Performance - Brunswick shares have increased approximately 5.4% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The current Zacks Rank for Brunswick is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $1.25 billion, and for the current fiscal year, it is $4.61 on revenues of $5.18 billion [7] - The Leisure and Recreation Products industry, to which Brunswick belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]