Core Insights - The ISG Global Index Call provides insights into the IT and business services industry, influencing approximately $200 billion in technology spending annually [2][4]. - The index measures the health and growth of the technology industry, focusing on managed technology services and cloud-based software and infrastructure services [4]. Company Overview - Information Services Group, Inc. (ISG) has been hosting index calls for over 20 years, showcasing its expertise in the industry [2]. - The current call marks the 91st consecutive ISG Index Call, indicating the company's long-standing presence and commitment to industry analysis [4]. Industry Analysis - The index tracks and analyzes annual contract value (ACV) as a leading indicator of revenue trends within the technology sector [4].

Production Overview - Imperial Metals Corporation reported quarterly production from the Mount Polley mine, achieving 9.496 million pounds of copper and 11,061 ounces of gold in Q2 2025, an increase from 9.281 million pounds of copper and 10,009 ounces of gold in Q2 2024 [1][2] - Mill throughput increased by 2.6% in Q2 2025, with 1.759 million tonnes treated compared to 1.714 million tonnes in Q2 2024, contributing to higher copper and gold production [3] Year-to-Date Performance - For the first half of 2025, copper production rose by 10.6% and gold production increased by 8.3% compared to the same period in 2024, driven by improvements in throughput, grades, and recoveries [4] Detailed Production Metrics - In Q2 2025, the ore milled was 1,759,093 tonnes, with a daily milling rate of 19,331 tonnes. The copper grade was 0.295%, and the gold grade was 0.286 g/t. Copper recovery was 83.0%, while gold recovery was 68.4% [5] - For the first six months of 2025, the total ore milled was 3,480,862 tonnes, with a copper grade of 0.288% and a gold grade of 0.280 g/t. The copper recovery was 83.2%, and the gold recovery was 69.1% [5] Mining Operations - Mining activities continued in the lower Springer Pit in Phase 4, with ongoing stripping for Phase 5 pushback on the east wall of the pit during the quarter [5] Company Profile - Imperial Metals Corporation is based in Vancouver and operates the Mount Polley mine (100% ownership), the Huckleberry mine (100% ownership), and holds a 30% interest in the Red Chris mine, along with a portfolio of 23 exploration properties in British Columbia [7]

Core Viewpoint - The Supreme Court of British Columbia has reserved judgment on the judicial review petition and injunction application filed by the Xatśūll First Nation regarding the tailings storage facility embankment raise at the Mount Polley mine, with a decision expected on August 6, 2025 [1][2]. Group 1: Legal Proceedings - The petition and injunction were heard from June 24-27, 2025, with arguments presented by Mount Polley Mining Corporation (MPMC) and the Province of British Columbia asserting the validity of the decisions made [3]. - MPMC is allowed to continue construction of the four-metre raise as planned, while operations at the mine proceed under existing permits [2]. Group 2: Company Commitment - The company emphasizes its commitment to transparent engagement with Indigenous communities and environmental responsibility, particularly with the Xatśūll and Williams Lake First Nation [4]. - The President of Imperial stated the importance of addressing Indigenous concerns and ensuring environmentally responsible operations at the Mount Polley mine [5]. Group 3: Company Overview - Imperial Metals Corporation is based in Vancouver and operates the Mount Polley mine (100% ownership), the Huckleberry mine (100% ownership), and the Red Chris mine (30% ownership), along with 23 greenfield exploration properties in British Columbia [6].

Core Viewpoint - Imperial Metals Corporation has announced its intention to initiate a Normal Course Issuer Bid to repurchase up to 814,089 common shares, representing 0.5% of its total outstanding shares, as part of its strategy to manage capital and fulfill obligations under its share plans [1][2]. Group 1: Bid Details - The company plans to commence the share repurchase on May 28, 2025, and it will conclude no later than May 27, 2026 [2]. - Daily purchases will be limited to 12,792 common shares or 25% of the average daily trading volume of 51,168 common shares on the TSX [2]. - The shares repurchased will be allocated to satisfy obligations under the Non-Management Directors' Plan and Amended and Restated Share Purchase Plan [2]. Group 2: Historical Context - In the past 12 months, the company repurchased 217,504 common shares at a volume-weighted average price of $2.37 [2]. - The maximum number of shares approved for repurchase in the previous bid was 809,357 [2]. Group 3: Company Overview - Imperial Metals is based in Vancouver and is involved in exploration, mine development, and operations, with ownership of the Mount Polley mine, Huckleberry mine, and a 30% stake in the Red Chris mine [3]. - The company also holds a portfolio of 23 greenfield exploration properties in British Columbia [3].

Group 1 - Imperial Metals Corporation held its virtual Annual and Special Meeting of Shareholders on May 21, 2025, where nominees listed in the management information circular dated April 4, 2025, were elected as directors [1] - A total of 116,456,204 common shares were voted, representing approximately 71.86% of the issued and outstanding common shares of the Company [2] - The election results showed high approval rates for the directors, with Carolyn D. Anglin receiving 99.97% of votes for, and J. Brian Kynoch receiving 99.99% [2] Group 2 - Imperial is based in Vancouver and is involved in exploration, mine development, and operations, with holdings including the Mount Polley mine (100%), Huckleberry mine (100%), and Red Chris mine (30%) [3] - The Company also has a portfolio of 23 greenfield exploration properties located in British Columbia [3]

Core Viewpoint - Imperial Metals Corporation reports promising initial diamond drill results from the Mount Polley 2025 exploration program, highlighting significant mineralization in the C2 Zone, particularly with a notable interval of 152.5 metres grading 0.46% copper and 0.97 g/t gold [1][6]. Group 1: Exploration Results - The C2 Zone, located south of the Cariboo Pit, shows gold values exceeding copper values, with much of the copper mineralization being oxidized, leading to lower recovery rates [2]. - The exploration program prioritizes the C2 Zone due to the recent increase in gold prices, aiming to fill gaps in historic drilling and target higher-grade zones at depth [2]. - Significant intercepts include: - Hole C2-25-116: 35.0 metres grading 0.31% copper and 0.62 g/t gold [3][4]. - Hole C2-25-117: 48.0 metres grading 0.41% copper and 1.10 g/t gold [5]. - Hole C2-25-118: 91.2 metres grading 0.53% copper and 1.10 g/t gold [5]. - Hole C2-25-121: 152.5 metres grading 0.46% copper and 0.97 g/t gold, including 85.0 metres grading 0.67% copper and 1.56 g/t gold [6]. Group 2: Company Overview - Imperial Metals is based in Vancouver and operates the Mount Polley mine, along with other properties including the Huckleberry mine and the Red Chris mine [10]. - The company holds a portfolio of 23 greenfield exploration properties in British Columbia, which have defined areas of mineralization and clear exploration potential [10].

Core Viewpoint - Imperial Metals Corporation reported solid operating and financial results for Q1 2025, with significant increases in production and revenue compared to the same quarter in 2024 [2][6]. Financial Performance - Total revenue for Q1 2025 was $176.6 million, up from $84.6 million in Q1 2024, representing a 108.8% increase [2][23]. - Net income for Q1 2025 was $41.3 million ($0.26 per share), compared to a net loss of $9.2 million ($0.06 loss per share) in Q1 2024, marking a $50.5 million improvement [6][23]. - Adjusted EBITDA for Q1 2025 was $97.7 million, significantly higher than $9.9 million in Q1 2024 [29][30]. Production Highlights - Consolidated production totaled 15,842,336 pounds of copper and 17,120 ounces of gold, representing increases of 28% and 33% respectively compared to Q1 2024 [2][10]. - Mount Polley mine produced 8,904,389 pounds of copper and 10,621 ounces of gold, up from 7,355,191 pounds of copper and 10,009 ounces of gold in Q1 2024 [11][12]. - Red Chris mine produced 23,126,491 pounds of copper and 21,663 ounces of gold, compared to 16,660,225 pounds of copper and 9,507 ounces of gold in the same quarter of 2024, reflecting increases of 38.8% in copper and 127.9% in gold production [15][16]. Operational Insights - Capital expenditures for Q1 2025 were $47.0 million, an increase from $36.2 million in Q1 2024, with significant investments in exploration and development [7][14]. - The average copper price per pound was $4.24 in Q1 2025, up from $3.83 in Q1 2024, while the average gold price per troy ounce rose to $2,862 from $2,072 [4][5]. Cash Flow and Costs - Cash earnings for Q1 2025 were $96.0 million, compared to $9.9 million in Q1 2024, with cash earnings per share increasing to $0.59 from $0.06 [30][31]. - The cash cost per pound of copper produced was $0.24 for the composite of both mines in Q1 2025, significantly lower than $2.71 in Q1 2024 [35]. Regulatory and Legal Matters - The Xatśūll First Nation initiated a petition for judicial review regarding decisions made by the Ministry of Mining and Critical Minerals related to the Mount Polley Mine, which could impact operations [13][14]. Technical Developments - The Red Chris Block Cave Feasibility Study is progressing, with 11,413 meters of development completed as of March 31, 2025 [19]. Company Overview - Imperial Metals Corporation is based in Vancouver and operates the Mount Polley mine, Huckleberry mine, and holds a 30% interest in the Red Chris mine, along with a portfolio of exploration properties [36].

Core Viewpoint - Imperial Metals Corporation confirms that no injunction has been granted regarding the construction and operation of the tailings storage facility at the Mount Polley mine, allowing normal operations to continue [1][3]. Group 1: Legal Proceedings - An application for an interim injunction was heard on May 8, 2025, by Mr. Justice Weatherill of the Supreme Court of British Columbia, concerning the approval of a four-metre raise of the tailings storage facility by Xatśūll First Nation [2]. - The court has adjourned the application until June 24, 2025, when both the underlying petition and the injunction will be decided [2]. - Mount Polley Mining Corporation, a wholly-owned subsidiary of Imperial, stated that it does not expect to utilize the four-metre raise until at least July 1, 2025, and has agreed to provide an undertaking to the court regarding this timeline [2]. Group 2: Company Overview - Imperial Metals Corporation is based in Vancouver and is involved in exploration, mine development, and operations, with holdings including the Mount Polley mine (100%), Huckleberry mine (100%), and Red Chris mine (30%) [4]. - The company also holds a portfolio of 23 greenfield exploration properties in British Columbia [4].

[Part I - Financial Information](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Information Services Group achieved a **$1.5 million net income** in Q1 2025, reversing a **$3.4 million net loss** from Q1 2024, primarily due to reduced operating expenses despite a **7% revenue decrease** [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $20,116 | $23,075 | | Total current assets | $90,101 | $91,281 | | **Total assets** | **$202,365** | **$204,515** | | Total current liabilities | $37,247 | $38,420 | | Long-term debt, net | $59,175 | $59,175 | | **Total liabilities** | **$107,329** | **$108,229** | | **Total stockholders' equity** | **$95,036** | **$96,286** | Condensed Consolidated Income Statement Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $59,583 | $64,269 | | Operating income (loss) | $3,396 | $(2,370) | | **Net income (loss)** | **$1,488** | **$(3,389)** | | **Diluted earnings (loss) per share** | **$0.03** | **$(0.07)** | Condensed Consolidated Cash Flow Highlights (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $978 | $2,333 | | Net cash used in investing activities | $(837) | $(1,022) | | Net cash used in financing activities | $(3,473) | $(9,718) | | **Net decrease in cash** | **$(2,956)** | **$(8,684)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company is a **global AI-centered technology research and advisory firm**, serving over **900 clients**, including **75 of the world's top 100 enterprises**[18](index=18&type=chunk) - In Q1 2025, the company received an additional **$2.0 million in cash proceeds** from the previous sale of its Automation business line based on the achievement of contractual requirements[22](index=22&type=chunk) - As of March 31, 2025, the company had **$120.5 million in remaining performance obligations**, the majority of which are expected to be satisfied within the next twelve months[38](index=38&type=chunk) - The company is pursuing legal action against a former client regarding a **$4.8 million allowance for doubtful accounts** and is in litigation with another client over a disputed **$4.7 million receivable** for which no reserve has been recorded[39](index=39&type=chunk)[40](index=40&type=chunk) - The company operates as a **single reportable segment**, providing fact-based sourcing advisory services[49](index=49&type=chunk) - On May 6, 2025, the Board of Directors approved a **second-quarter dividend of $0.045 per share**[58](index=58&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the **7% revenue decline** to weakness in Europe and Asia Pacific, while a **16% reduction in operating expenses** significantly improved profitability, with Adjusted EBITDA rising to **$7.4 million** [Business Overview](index=15&type=section&id=Business%20Overview) - ISG is a **global AI-centered technology research and advisory firm** with a strategy focused on growing its existing service model, expanding geographically, developing new industry sectors, and pursuing acquisitions[61](index=61&type=chunk)[62](index=62&type=chunk) - Revenues are derived from project-based fees (time and materials, fixed-fee) and recurring revenue streams from offerings like ISG GovernX and ISG Research Lens[63](index=63&type=chunk)[65](index=65&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Revenues by Geographic Area (in thousands) | Geographic Area | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Americas | $41,002 | $40,840 | 0% | | Europe | $13,794 | $17,796 | (22)% | | Asia Pacific | $4,787 | $5,633 | (15)% | | **Total revenues** | **$59,583** | **$64,269** | **(7)%** | Operating Expenses (in thousands) | Operating Expenses | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Direct costs and expenses for advisors | $33,927 | $41,047 | (17)% | | Selling, general and administrative | $21,155 | $24,087 | (12)% | | Depreciation and amortization | $1,105 | $1,505 | (27)% | | **Total operating expenses** | **$56,187** | **$66,639** | **(16)%** | - The **$10.5 million decrease in operating expenses** was primarily due to lower automation license fees (**$3.7 million**), restructuring costs (**$2.6 million**), and compensation expense (**$2.4 million**)[69](index=69&type=chunk) - The effective tax rate for Q1 2025 was **37.9%**, compared to **6.4%** for Q1 2024, with the increase primarily due to higher pre-tax earnings[78](index=78&type=chunk) [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $1,488 | $(3,389) | | Interest expense (net) | $1,001 | $1,243 | | Income taxes expense (benefit) | $910 | $(231) | | Depreciation and amortization | $1,105 | $1,505 | | Other adjustments | $2,892 | $5,286 | | **Adjusted EBITDA** | **$7,396** | **$4,414** | Reconciliation of Net Income (Loss) to Adjusted Net Income (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $1,488 | $(3,389) | | Non-cash & other adjustments | $3,210 | $6,041 | | Tax effect | $(1,027) | $(1,933) | | **Adjusted net income** | **$3,671** | **$719** | - Adjusted net income per diluted share was **$0.07** in Q1 2025, compared to **$0.01** in Q1 2024[82](index=82&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, cash, cash equivalents, and restricted cash totaled **$20.2 million**, a net decrease of **$3.0 million** from year-end 2024[85](index=85&type=chunk) - The decrease in cash was primarily driven by **$2.2 million in dividend payments** and **$2.6 million in share repurchases**, partially offset by **$1.0 million in cash from operations** and **$2.0 million from the sale of the automation business**[85](index=85&type=chunk)[88](index=88&type=chunk) - The company has a **$140 million revolving credit facility** maturing in 2028, with **$59.2 million in borrowings outstanding** as of March 31, 2025[86](index=86&type=chunk)[87](index=87&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces interest rate risk from its **$59.2 million floating-rate debt** and foreign currency risk from international operations, with a **$0.4 million positive translation impact** in Q1 2025 - The company is exposed to interest rate risk due to its **$59.2 million in outstanding debt** based on a floating rate (SOFR)[94](index=94&type=chunk)[95](index=95&type=chunk) - A significant portion of revenues are derived from sales outside the U.S., creating exposure to foreign currency translation risk, mainly from the Euro, British Pound, and Australian dollar[96](index=96&type=chunk) - For the three months ended March 31, 2025, the impact of foreign currency translation on stockholders' equity was a **positive $0.4 million**[97](index=97&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective as of March 31, 2025**[101](index=101&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[102](index=102&type=chunk) [Part II - Other Information](index=24&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1 & 1A. Legal Proceedings and Risk Factors](index=24&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no material legal proceedings but identifies risks from changes in international trade policies, tariffs, and employment-related claims - The company and its subsidiaries are not currently subject to any material legal proceedings[104](index=104&type=chunk) - The company identifies changes in U.S. or international trade policies, including new tariffs and regulations, as a risk that could adversely affect its business[106](index=106&type=chunk) - The company is exposed to risks from employment-related claims (e.g., wage and hour violations) and may have to indemnify clients for certain acts of its consultants[108](index=108&type=chunk)[109](index=109&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q1 2025, the company repurchased **1.012 million shares** for **$3.4 million**, with **$14.9 million** remaining in the program, and approved a **$0.045 per share** Q2 dividend - On May 6, 2025, the Board approved a **second-quarter dividend of $0.045 per share**[110](index=110&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 208 | $3.22 | | February 2025 | 263 | $3.17 | | March 2025 | 541 | $3.55 | - As of March 31, 2025, the company had approximately **$14.9 million of capacity available** under its current share repurchase program[111](index=111&type=chunk)[113](index=113&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $60 million, up 5% year-over-year, excluding results from the divested automation unit [7][24] - Adjusted EBITDA increased by 68% to $7.4 million, with an adjusted EBITDA margin of 12.4%, up more than 554 basis points year-over-year [8][25] - Net income for the quarter was $1.5 million, or $0.03 per fully diluted share, compared to a net loss of $3.4 million, or $0.07 per fully diluted share in the prior year [25] Business Line Data and Key Metrics Changes - Recurring revenues reached $26 million, representing 44% of overall revenue, showing slight growth from Q4 [9] - The Americas region saw a revenue increase of 17% to $41 million, driven by growth in technology advisory and various industry verticals [12][24] - Europe revenue decreased by 13% to $13.8 million, while Asia Pacific revenue fell by 15% to $4.8 million [24] Market Data and Key Metrics Changes - The Americas experienced the largest year-over-year growth in two years, while Europe is expected to show improvement later in the year [8][15] - Asia Pacific revenues were impacted by sluggish government spending, but growth is anticipated post-elections [17] Company Strategy and Development Direction - The company is focusing on AI integration across all services, with over 200 clients served with AI-focused research and advisory services [9][60] - The company aims to leverage technology for cost optimization and competitive advantage, particularly in the context of market disruptions [11][30] - The company is actively looking for M&A opportunities to enhance recurring revenue streams and digital capabilities [50][51] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand in the U.S. for technology services, particularly in cloud, AI, and data analytics [22] - There is cautious optimism regarding the macroeconomic environment, with expectations for continued demand despite uncertainties [21][30] - Management anticipates a rebound in Europe in the latter half of the year, contingent on resolving tariff uncertainties [39][66] Other Important Information - The company ended the quarter with cash of $20.1 million and a gross debt to EBITDA ratio of 2.1 times, indicating a solid balance sheet [26][28] - The company has a share repurchase authorization of approximately $15 million remaining [28] Q&A Session Summary Question: How would you characterize the growth in The Americas? - Management expects double-digit growth in Q2 for The Americas, driven by strong demand for transformation and optimization services [34] Question: Are there any end markets in Europe showing signs of recovery? - Management indicated that uncertainty remains in Europe, but there is an increase in the pipeline for advisory services, particularly around cost optimization and AI [39] Question: What is the outlook for utilization and hiring? - Utilization is at a high level, and while hiring will be prudent, it will align with demand in the pipeline [46] Question: How is the company addressing the rapid interest in AI? - The company is focusing on training and hiring for AI-related roles, with a significant portion of client work now incorporating AI components [60] Question: What is the strategy regarding share repurchases and M&A? - The company is evaluating cash allocation opportunities, including share buybacks and potential acquisitions to enhance growth [49][50]