Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2 - Helix Energy Solutions Group (HLX) has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is a strong value stock [4] - HLX's P/E ratio is 8.33, significantly lower than the industry average P/E of 10.90, suggesting it may be undervalued [4] - The P/B ratio for HLX is 0.64, compared to the industry's average P/B of 1.73, further indicating attractive valuation [5] - HLX's P/CF ratio is 5.03, which is lower than the industry's average P/CF of 5.87, suggesting solid cash outlook [6] - These valuation metrics indicate that HLX is likely undervalued and has a strong earnings outlook, making it an impressive value stock [7]

Market Overview - President Trump's announcement of reciprocal tariffs led to significant volatility in the U.S. stock market, with the S&P 500 dropping 9% in the first week of April, its worst week since 2020, followed by a rebound of 5.7% the next week, marking the best week since 2023 [1] - Exemptions from tariffs on items such as smartphones, semiconductors, and solar cells contributed to a strong tech rally, although the S&P 500 remained below its level from April 2 [2] - Ongoing uncertainty regarding a potential global trade war continues to concern investors and economists [2] Value Investing Strategy - Value investing focuses on purchasing stocks priced below their intrinsic value, capitalizing on market mispricing [4] - Earnings yield, calculated as (Annual Earnings per Share/Market Price) x 100, serves as a key metric for value investors, indicating potential undervaluation when high [5] - Earnings yield can be compared to bond returns, such as the 10-year Treasury yield, to assess the attractiveness of stocks relative to fixed-income securities [6] Stock Screening Criteria - A primary screening criterion is an Earnings Yield greater than 10%, supplemented by additional parameters such as estimated EPS growth for the next 12 months being greater than or equal to the S&P 500 [7] - Average Daily Volume (20 Day) should be greater than or equal to 100,000 to ensure adequate liquidity [8] - Current Price must be greater than or equal to $5, and stocks with a Zacks Rank 1 (Strong Buy) or 2 (Buy) are expected to outperform peers [9] Selected Stocks - **Alibaba Group (BABA)**: Dominates the e-commerce sector in China and is expanding internationally, with a Zacks Rank 1 and a Value Score of B. The consensus estimate for fiscal 2025 and 2026 earnings indicates year-over-year growth of 2.1% and 23% respectively [10][11] - **Fresenius Medical Care AG (FMS)**: A leading provider of dialysis products and services, recently launched a new home dialysis machine. The consensus estimate for 2025 and 2026 earnings suggests growth of 27.1% and 9.1% respectively [12][13] - **Helix Energy Solutions Group Inc. (HLX)**: Focuses on offshore energy services, with a consensus estimate for 2025 and 2026 earnings indicating growth of 42% and 28.2% respectively [14][15] - **Heritage Insurance Holdings, Inc. (HRTG)**: Provides residential insurance products with a focus on selective underwriting. The consensus estimate for 2025 and 2026 earnings suggests growth of 21% and 28.6% respectively [16][17]

Core Insights - The article serves as an introduction to "The Cannabis Report," which focuses on the cannabis industry and includes insights from an experienced analyst and consultant in the field [1] Industry Overview - The cannabis industry is highlighted as a growing sector with potential investment opportunities, particularly in technical stock analysis, option strategies, small cap strategies, and emerging markets [1] Analyst Background - The analyst has a background in contributing to High Times Magazine and has published a book titled "Cannabis in the Ancient Greek and Roman World," indicating a deep knowledge of the cannabis sector [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to__________ Commission file number 001-32936 HELIX ENERGY SOLUTIONS GROUP, INC. (Exact name of registrant as specified in its charter) State or o ...

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers and transitioned to day trading nearly 20 years ago [2] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics Changes - Revenues for Q4 2024 were $355 million, with a gross profit of $59 million and net income of $20 million, resulting in adjusted EBITDA of $72 million and positive operating cash flows of $78 million, leading to strong free cash flow of $65 million [11][12] - Full year 2024 revenues were $1.36 billion, with a gross profit of $220 million and net income of $56 million, adjusted EBITDA for the year was $303 million, representing a greater than 10% improvement over 2023 [13][14] - Cash and cash equivalents stood at $368 million, with total liquidity of $430 million and funded debt of $324 million, resulting in negative net debt of $53 million at year-end [26] Business Line Data and Key Metrics Changes - The well intervention segment showed strong utilization in Africa, the US Gulf, Brazil, and Australia, with the Q7000 achieving 99% utilization in Australia [18][19] - Robotics had a strong quarter, operating six vessels with high utilization, particularly in trenching projects and renewables-related work [20][22] - Shallow water abandonment segment experienced expected seasonal slowdown, reflecting a weak 2024 US Gulf Coast shelf market [24] Market Data and Key Metrics Changes - The offshore market remains constructive with healthy oil and gas spending, while the global renewables market is robust with increasing activity in Europe and Asia Pacific [28][29] - The North Sea market is expected to be weaker in 2025 due to increased taxes and regulatory challenges, leading to lower utilization forecasts [36][38] Company Strategy and Development Direction - The company plans to focus on maximizing remaining reserves and abandonment as the late-life market for oil and gas grows, with expectations of increased abandonment work in the coming years [51][52] - The robotics segment is expected to grow, with plans to add additional trenching capacity and expand into adjacent services [55][56] - The capital allocation strategy includes a minimum of 25% of free cash flow for share repurchases, with flexibility for M&A opportunities depending on market conditions [62] Management's Comments on Operating Environment and Future Outlook - Despite macro challenges, the company maintains a positive outlook for 2025, supported by strong contracted work and a healthy pipeline of bids and projects [28][30] - Seasonal weather impacts are expected to affect quarterly results, with the second and third quarters anticipated to be the most active [34] Other Important Information - The company has secured long-term contracts for key assets, providing strong contract coverage for multiple years [19][22] - The CapEx forecast for 2025 is heavily influenced by maintenance and dry dock periods, with a range of $70 million to $90 million [47][48] Q&A Session Summary Question: Free cash flow and M&A considerations - Management indicated a high probability of being active in M&A this year, focusing on geographic opportunities and the wind market, which has seen valuation pullbacks [68][70] Question: Well intervention market pricing trends - Management noted that while a good portion of assets are on long-term contracts, spot rates are still increasing, albeit at a slower pace than in previous years [73][74] Question: Guidance on revenue and backlog - The well intervention guidance reflects a balance of risk and opportunity, with solid contracts in place, while robotics has good backlog activity, particularly in Asia Pacific [80][84] Question: Contracting opportunities for Q4 and Q5 vessels - The Q5000 is contracted for two years with an option for a third, while the Q4000 has work lined up in the Gulf market after its current contract in Nigeria [101][102] Question: Capital allocation strategy - Management emphasized the strength of the balance sheet and current equity prices as reasons for a more aggressive share repurchase strategy, while remaining open to M&A opportunities [110][112]

February 25, 2025 Fourth Quarter 2024 Conference Call INTRODUCTION Forward-Looking Statements This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation ...

Core Viewpoint - Helix Energy (HLX) reported quarterly earnings of $0.13 per share, significantly exceeding the Zacks Consensus Estimate of $0.03 per share, marking an earnings surprise of 333.33% [1] - The company also posted revenues of $355.13 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 12.32% [2] Financial Performance - The earnings of $0.13 per share compare to $0.06 per share a year ago, indicating growth [1] - Over the last four quarters, Helix Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Market Performance - Helix Energy shares have declined approximately 15.3% since the beginning of the year, contrasting with the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $244.24 million, and for the current fiscal year, it is $0.59 on revenues of $1.36 billion [7] Industry Outlook - The Oil and Gas - Field Services industry, to which Helix Energy belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can materially affect stock performance [5][8]

Financial Performance - Helix reported a net income of $20.1 million, or $0.13 per diluted share, for Q4 2024, compared to a net loss of $28.3 million in Q4 2023[2]. - For the full year 2024, Helix achieved a net income of $55.6 million, or $0.36 per diluted share, compared to a net loss of $10.8 million in 2023[3]. - Adjusted EBITDA for Q4 2024 was $71.6 million, down from $87.6 million in Q3 2024, but up from $70.6 million in Q4 2023[2]. - Free Cash Flow for 2024 was the highest in two decades, totaling $163.2 million, despite a $58 million earnout payment included in operating cash flows[6]. - Free Cash Flow was $65.5 million in Q4 2024, down from $91.9 million in Q4 2023, attributed to lower operating cash flow and higher capital expenditures[20]. - Adjusted EBITDA for the year ended December 31, 2024, was $303,147, representing an increase of 10.9% from $273,403 in 2023[44]. Revenue Breakdown - Total revenues for Q4 2024 were $355.1 million, a 6% increase from $335.2 million in Q4 2023[5]. - Well Intervention revenues increased by $51.6 million, or 30%, in Q4 2024 compared to Q3 2024, driven by higher day rates and fewer mobilization days[8]. - Robotics revenues increased by $18.6 million, or 30%, in Q4 2024 compared to Q4 2023, primarily due to higher rates and increased vessel activities[11]. - Well Intervention revenues increased by $122.1 million, or 17%, in 2024 compared to 2023, driven by higher rates and utilization[21]. - Robotics revenues increased by $39.8 million, or 15%, in 2024 compared to 2023, due to higher vessel and ROV utilization[22]. - Shallow Water Abandonment revenues decreased by $88.0 million, or 32%, in 2024 compared to 2023, with vessel utilization declining to 61%[23]. - Production Facilities revenues increased by $0.8 million, or 1%, in 2024 compared to 2023, primarily due to higher oil and gas production volumes[24]. Cash Flow and Debt - Helix ended 2024 with significant cash levels and negative net debt of $52.9 million, reflecting a strong financial position[5]. - Operating cash flows were $78.0 million in Q4 2024, compared to $94.7 million in Q4 2023, primarily due to higher regulatory certification costs[19]. - Net cash provided by operating activities for the year ended December 31, 2024, was $186,028,000, compared to $152,457,000 for the year ended December 31, 2023[42]. - Long-term debt, including current maturities, decreased to $315,157 as of December 31, 2024, from $361,722 a year earlier[44]. - Net Debt improved to $(52,873) as of December 31, 2024, compared to $29,531 in the previous year[44]. Expenses - Selling, general and administrative expenses were $27.6 million, or 7.8% of revenue, in Q4 2024, up from $21.1 million, or 6.2% of revenue, in the prior quarter[16]. - Net interest expense increased to $22.6 million in 2024 compared to $17.3 million in 2023, due to a full year of interest on $300 million Senior Notes issued in Q4 2023[26]. - The company reported a net interest expense of $22,629 for the year ended December 31, 2024, compared to $17,338 in 2023[44]. - Depreciation and amortization expenses for the year ended December 31, 2024, were $173,292, an increase from $164,116 in 2023[44]. Asset and Liability Overview - Total assets as of December 31, 2024, were $2,597,080,000, a slight increase from $2,556,036,000 as of December 31, 2023[41]. - Total liabilities decreased to $1,077,424,000 as of December 31, 2024, from $1,144,648,000 as of December 31, 2023[41]. Other Notable Information - The company signed new awards that provide over half of its well intervention fleet with contracted work for multiple years entering 2025[6]. - The company reported a net cash used in investing activities of $22,840,000 for the year ended December 31, 2024[42]. - The company experienced a change in fair value of contingent consideration amounting to $42,246 for the year ended December 31, 2024[44]. - The company has not provided reconciliations of forward-looking non-GAAP financial measures to comparable GAAP measures due to impracticality[37].

Core Insights - Helix Energy Solutions Group's robotics unit has secured a significant contract for the burial of inter-array cables at the Hornsea 3 Offshore Wind Farm, operated by Ørsted [1][5] - The contract involves the burial of 192 inter-array cables, totaling approximately 500 kilometers in length, with a duration of over 300 days starting in the September quarter of 2026 [2] Contract Details - Helix Robotics Solutions will manage the burial of all cables, with project management and engineering support provided from its Aberdeen, UK office [2] - The Grand Canyon III trenching support vessel will be deployed, equipped with advanced trenching technology including the T1500 jet trencher and i-Trencher system [3] Project Context - Seaway7 was awarded the contract for the installation and transportation of inter-array cables for Hornsea 3 in October 2024, with the wind farm expected to be completed by 2027 [4] - The Hornsea 3 Offshore Wind Farm will consist of 231 wind turbines with a total capacity of 2.9 GW, located approximately 120 kilometers off the coast of Norfolk, UK [4] Strategic Implications - The contract represents a significant opportunity for Helix, highlighting its expansion into the renewable energy sector and its role in supporting offshore wind farm development in the UK [5]