Financial Data and Key Metrics Changes - For Q1 2025, the company reported GAAP net income of $10 million or $0.12 per common share, with a book value per common share of $11.19 and distributable earnings of $0.24 per common share, aligning with the quarterly dividend [14][15] - The company maintained a 100% performing loan portfolio and an unchanged weighted average risk rating of 3.0, with no credit migration [15][18] - The general reserve increased to $67.2 million or 199 basis points from $64 million or 187 basis points, reflecting higher interest rates and potential economic recession risks [18] Business Line Data and Key Metrics Changes - The company closed two multifamily loans totaling $131 million after the quarter end and executed term sheets on another $310 million of transactions [10][15] - The capital markets segment issued a new $1.1 billion CRE CLO, increasing the proportion of non mark-to-market non-recourse term match liabilities to 91% [15][19] - Share repurchases amounted to approximately $9 million, boosting book value per share by $0.05 [15] Market Data and Key Metrics Changes - The company noted that real estate credit is viewed as a safe haven compared to corporate credit and equity risk, with investor sentiment indicating a preference for real estate credit amid broader market disruptions [7][12] - The liquidity position was strong at $457.6 million, representing 11.6% of total assets, which supports the capital allocation strategy [20][21] Company Strategy and Development Direction - The company continues to focus on the housing sector, particularly multifamily, while also exploring transactions across various property types and geographies [8][12] - The strategic goals include deploying excess liquidity, utilizing untapped financing capacity, recycling equity in REO, and creating additional liquidity via capital markets activity [11][12] - The company is positioned to take advantage of the attractive real estate credit market, with a significant investment pipeline due to competitors slowing their activity [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the current market, highlighting the importance of downside protection and tail risks amid a protracted global trade war [6][8] - The company is well-positioned to navigate market uncertainties and capture lending opportunities, with strong liquidity and a stable risk profile [21] Other Important Information - The company redeemed FL3 and issued FL6, generating net liquidity of $260 million for future deployment [12][19] - The total leverage slightly increased to 2.2 times from 2.1 times in the previous quarter, with $2 billion of financing capacity available [20] Q&A Session Summary Question: Can you provide insights on the risk profile of current originations compared to previous years? - Management noted that the entry point for loans is more favorable now, with borrowers being more disciplined about debt levels due to market uncertainties [24][27] Question: What is the expected levered return on equity for new bridge loans? - Management indicated that gross ROEs are generally in the low to mid-teens range, benefiting from favorable timing in locking in bond spreads [28][29] Question: Why were there no originations in the first quarter? - Management explained that a combination of tighter loan spreads and longer closing times due to market dislocation contributed to the lack of originations [34][35] Question: What is the outlook for the REO portfolio reduction? - Management confirmed plans to stick to the previously described cadence for REO sales, despite increased market uncertainty [37] Question: How do the transaction prices for the two REOs compare to carrying values? - Management refrained from disclosing specific transaction prices but indicated a history of selling REOs at prices exceeding carrying values [41]

Group 1 - Engine Capital, a special situations fund, aims to elect two candidates to Lyft's board to address governance and capital allocation issues, proposing a $750 million accelerated share repurchase program, elimination of the dual class share structure, and de-staggering the board [1][2] - Engine Capital criticizes Lyft's capital structure as "completely unoptimized," highlighting that co-founders with 2.3% ownership hold 30% voting power, and the staggered board structure hinders full board turnover [2] - Lyft's management emphasizes its focus on customer satisfaction and operational strength, reporting record gross bookings, adjusted EBITDA, and free cash flow in 2024 [3][4] Group 2 - Lyft's board unanimously recommends a vote for its director nominees and urges stockholders not to support Engine Capital's proxy card [4] - Lyft CEO David Risher asserts that the company is already implementing many of Engine's suggested actions, having initiated a $500 million share repurchase program and acquired FREENOW for European expansion [5][6] - Risher notes a 56% reduction in stock-based compensation since 2022 and the addition of directors with capital allocation expertise as part of Lyft's strategic improvements [6]

Investment Rating - The report does not explicitly provide an investment rating for the sectors discussed Core Insights - The report highlights the impact of increased US tariffs on various sectors including appliances, autos, industrial tech, and solar companies, with management expressing concerns over supply chain disruptions and capital allocation strategies China Consumer Durables - Companies derive an average of 35% of revenues from China exports and 7% from exports to the US [5] - Production is shifting to overseas factories, with some companies receiving more orders from US clients as they seek to restock before the tariff reprieve period ends [6] - There is low visibility on price re-negotiation, with companies cautious about raising prices due to market share concerns [6] - Ex-US demand remains stable, particularly in Europe, which is expected to absorb US capacity [6] - CAPEX visibility is low, with Mexico considered a safer investment location due to its free trade agreement with the US [6] China Autos - Companies derive 6%-26% of total revenue from China exports and 0%-10% from exports to the US [7] - Management believes US-China trade tensions have softened recently, with expectations of higher exports to Europe due to ongoing negotiations [7] - Auto suppliers report no order cancellations and are negotiating new prices, with some passing on the full tariff burden to customers [8][10] China Industrial Tech - Companies derive 15%-45% of total revenue from exports and 2%-20% from exports to the US [11] - Orders paused initially in early April but returned to normal by the second week, with some customers continuing their overseas construction plans despite tariff uncertainties [11] - Most companies have signed FOB contracts, meaning customers bear the tariff costs [11] - Companies are maintaining existing capacity expansion plans, with some pausing expansion until tariff policies are clearer [12] China Solar - Companies involved in solar exports have 0%-15% direct exports to the US and 35%-55% to other countries [17][18] - One company has stopped shipping ESS products to the US due to high tariffs, while others are expanding inverter capacity overseas [19] - Softening demand in the US is a key challenge, with concerns over potential price hikes dampening downstream demand [20] - Companies are considering scaling back US exposure if operational risks outweigh profitability compared to other regions [20]

Financial Data and Key Metrics Changes - In the first quarter of 2025, diluted earnings per share, as adjusted, increased more than 20% year-over-year to $6.45 [9] - Adjusted EBITDA grew 11.3% over the prior year quarter, with an adjusted EBITDA margin improvement of 110 basis points [20][22] - Cash flow from operations was $1.65 billion in the quarter, impacted by working capital changes [24] Business Line Data and Key Metrics Changes - Inpatient admissions grew 2.6% year-over-year, equivalent admissions increased 2.8%, and emergency room visits rose 4% [10] - Same facilities revenue grew almost 6%, driven by volume increases and approximately 3% higher revenue per equivalent admission [11] - Surgical volumes were mixed, with inpatient surgeries slightly up and outpatient cases down [10][33] Market Data and Key Metrics Changes - Same-facility managed care equivalent admissions increased by 5.4% compared to the prior year quarter, while same-facility equivalent exchange admissions surged 22.4% [20] - Exchange volume represented about 8% of equivalent admissions and approximately 10% of revenues for the quarter [108] Company Strategy and Development Direction - The company is focused on maintaining operational discipline while continuing to invest in its strategic agenda, including increasing the number of facilities by 3.3% [12][13] - Capital allocation strategy includes $991 million in capital expenditures, $225 million in share repurchases, and $180 million in dividends [25] - The company is investing heavily in technology and digital transformation to improve operational efficiency and clinical care [132][133] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall demand for healthcare services and the company's ability to navigate through uncertain policy environments [14][18] - The company is developing plans to address potential adverse impacts from health policy changes and tariffs, drawing from experiences during the COVID-19 pandemic [17][75] - Management noted that the labor market remains stable, with initiatives in place to support workforce development [45][80] Other Important Information - The company reaffirmed its guidance ranges for the full-year 2025, indicating confidence in its operational performance [26] - The company reported an $18 million increase in net benefits related to Medicaid in the first quarter of 2025 compared to the prior year quarter [23] Q&A Session Summary Question: Any major changes in assumptions embedded in the guidance? - Management stated that the first quarter performance was solid, and guidance for 2025 remains appropriate [31][32] Question: How to achieve productivity and manage turnover? - Management highlighted that operating leverage is created by pushing more volume through the organization, and turnover rates are lower year-over-year [42][44] Question: Clarification on revenue per adjusted admission increase? - Management noted that the increase was driven by payer mix trends and outpatient revenue growth, despite a decline in outpatient surgery case volumes [53][55] Question: Changes in Medicare Advantage behavior and length of stay? - Management indicated that Medicare Advantage continues to run a bit higher on length of stay compared to traditional Medicare, but no significant changes were observed [68] Question: Impact of tariffs on supply sourcing? - Management mentioned that 70% of supply expenses are contracted with firm pricing for 2025, and 75% of supply expenses come from the U.S., Canada, or Mexico [73][75] Question: Competitive environment and CapEx priorities? - Management noted no substantial changes in competitors' behaviors, but the company is positioned to gain market share if competitors face challenges [100][101]

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.44 per diluted share for Q1 2025, representing a growth of approximately 5% compared to Q1 2024 [5] - Total revenue for the quarter was $14,200,000, including lease income of $11,800,000 and interest income from commercial loans of $2,300,000 [11] - FFO and AFFO for the quarter were both $0.44 per diluted share, representing growth of 7.3% and 8% respectively compared to the prior year [11] - The company increased its common dividend to a new quarterly rate of $0.0285, continuing its practice of annual dividend increases since its IPO [5][11] Business Line Data and Key Metrics Changes - The company acquired three properties for $39,700,000 at a weighted average initial cap rate of 8.6% [6] - Total investment activity for the quarter, including property acquisitions and structured finance investments, totaled $79,200,000 at a weighted average initial yield of 9% [6] - The average WALT (Weighted Average Lease Term) for acquisitions was 14.3 years, while the sold properties had a WALT of 4.7 years, resulting in a portfolio WALT increase to 9 years from 6.9 years [9] Market Data and Key Metrics Changes - The company noted that its tenant mix and sector diversification position it well amid recent tariff volatility and uncertainty [9] - The company has $65,000,000 of liquidity at quarter end, consisting of approximately $8,000,000 in cash and $57,000,000 available under its revolving credit facility [12] Company Strategy and Development Direction - The company is focused on a strategic approach to investing, which includes acquiring high credit tenants for stable cash flows and lesser credits for growth and diversification [8] - The company plans to continue monitoring the evolving economic environment while executing its strategy to deliver growth and stability for investors [10] - The company is balancing between share buybacks, acquisitions, and structured investments as part of its capital allocation strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite tariff-related uncertainties, noting strong tenant activity and performance [30] - The company is increasing its FFO and AFFO guidance for the full year of 2025 to a range of $1.74 to $1.77 per diluted share, driven by successful investment activity [13] - Management highlighted that the current economic environment presents an attractive pipeline of opportunities across the tenant landscape [10] Other Important Information - The company has no debt maturing until 2026, and its debt maturities are well staggered [12] - The company is actively marketing two non-income producing assets, which are expected to be sold this year [31] Q&A Session Summary Question: Factors driving the increase in AFFO guidance - Management identified three main factors: stock buybacks, a favorable SOFR swap reducing interest rates, and successful investment activity [18][19] Question: Clarification on investment guidance - Management explained that the increase in investment guidance reflects a combination of property acquisitions and loan funding [20] Question: Future capital allocation priorities - Management indicated a focus on balancing share buybacks, acquisitions, and investments, with a history of taking advantage of market dislocations [24] Question: Impact of tariffs on tenant activity - Management noted no significant disruption in tenant activity due to tariffs, with strong performance observed in restaurants and other sectors [30] Question: Details on impairment charges - Management clarified that the impairment charge was related to properties anticipated to be sold in the short term [57] Question: Insights on structured investment portfolio - Management confirmed that the structured investment program focuses on high-quality credits, with no current tenant issues [66] Question: Future NOI considerations - Management highlighted that Party City will no longer contribute to NOI starting in Q2, impacting future earnings [68]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $796 million, a decrease of 7.8% year-over-year, with a 4.1% decline when excluding foreign exchange impacts and contract manufacturing agreements from the previous year [7][19] - Adjusted EBITDA was $103 million, representing a margin of 12.9%, which is a decline of 260 basis points year-over-year [7][24] - Adjusted earnings per diluted share were $0.94, excluding non-operating items [8][20] - The net leverage ratio was 1.4 times, approaching the target of 1.5 times, with total liquidity around $900 million [8] Business Line Data and Key Metrics Changes - Aftermarket segment sales decreased by 3.9% year-over-year, primarily due to lower OEM sales [19] - Fuel Systems segment sales were down 10.2%, or 7.3% when excluding prior year contract manufacturing sales, attributed to lower OE sales across all regions [20] - Total segment adjusted operating margins were 12.2%, a decrease of 140 basis points year-over-year [8][21] Market Data and Key Metrics Changes - The macroeconomic environment in the automotive industry showed signs of slowing, similar to the second half of 2024 [6] - The company noted that over 60% of sales are generated outside of North America, which may mitigate some impacts from U.S. tariffs [27] Company Strategy and Development Direction - The company is focused on long-term profitable growth through capital investments, share repurchases, and dividends [12] - There is a commitment to expanding product offerings and deepening customer relationships, with a focus on new product development [9][12] - The company aims to navigate the current macroeconomic challenges while maintaining a strong balance sheet and pursuing accretive M&A opportunities [17][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to manage near-term uncertainties while continuing to invest in the business [16][30] - The company anticipates that the commercial vehicle market will remain soft, with no significant pre-buy expected in the second half of the year [36][94] - Management reaffirmed the 2025 guidance despite headwinds from tariffs and market uncertainties, expecting to pass through tariff costs to customers [27][73] Other Important Information - The company returned $111 million to shareholders through share buybacks and dividends in Q1 2025 [8] - The company has $264 million remaining under its current share repurchase authorization [13] Q&A Session Summary Question: What is the exposure to tariffs on USMCA compliant and non-USMCA compliant products? - Management indicated that over half of the North American business is USMCA compliant, positioning the company well to manage tariff impacts [33] Question: How has the commercial vehicle OE market changed recently? - Management acknowledged a softening in the commercial vehicle market and noted that they do not expect a pre-buy effect in the second half of the year [36] Question: How is the company addressing foreign exchange impacts? - Management noted that the FX headwind has decreased from an estimated $80 million to around $20 million, with expectations of stability for the rest of the year [42] Question: What is the outlook for share buybacks given the uncertainty? - Management stated that they will assess share buybacks each quarter based on cash flow forecasts and market conditions, with a current limitation due to a tax matters agreement [97] Question: What is the sentiment among customers regarding tariffs and trade policies? - Management reported that customer sentiment remains stable, with ongoing discussions to mitigate tariff impacts [81]

Financial Data and Key Metrics Changes - Consolidated freight revenue declined by 1.8% or approximately $4.5 million to $243.2 million, primarily due to a decrease in the managed freight segment [8] - Consolidated adjusted operating income shrank by 26.6% to $10.9 million, attributed to adverse operating conditions that reduced equipment utilization [8] - Net embeddedness increased by $5.8 million to $225.4 million, yielding an adjusted leverage ratio of approximately 1.55 times and a debt-to-capital ratio of 33.7% [10] - Return on average invested capital was 7.6% compared to 8.3% in the prior year [11] Business Line Data and Key Metrics Changes - The expedited segment had an adjusted operating ratio of 94.2%, which fell short of expectations, with average fleet size decreasing by 48 units or 5.3% to 852 tractors [11][12] - Dedicated experienced average fleet growth of 212 units or approximately 16.7%, with freight revenue increasing by $9.5 million or 13.1% compared to the prior year [13] - Managed freight exceeded profitability expectations, focusing on profitable freight and reducing insurance-related claims [15] - The warehouse segment saw a 6% decrease in freight revenue and a 42% decrease in adjusted operating profit compared to the prior year, largely due to facility-related cost increases [15][16] Market Data and Key Metrics Changes - The overall freight market faced challenges, with lower miles impacted by weather and avian influenza, leading to higher layover costs and reduced fixed cost coverage [6][7] - The LTL market showed mixed results, with some national LTLs experiencing declines while regional players performed better [44] Company Strategy and Development Direction - The company is focused on improving margins through rate increases, exiting less profitable business, and adding more profitable business [13] - There is a strategic emphasis on growing the dedicated fleet in areas that provide value-added services [14] - The company aims to continue moving towards specialized dedicated services to enhance competitiveness [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements in the second quarter, despite recognizing potential economic uncertainties that may delay recovery in the freight environment [17] - The company remains committed to disciplined capital allocation and improving operational leverage as conditions improve [18] Other Important Information - The average age of tractors slightly decreased to 20 months compared to 21 months a year ago [10] - The company anticipates a more normalized maintenance CapEx year in 2025, estimating total CapEx between $75 million to $80 million [58] Q&A Session Summary Question: Discussion on the dedicated side and competitive nature of non-poultry business - Management acknowledged the competitive environment in the non-specialized dedicated market and noted that margins are expected to improve with better weather and recovery from avian influenza [26][27] Question: Commentary on LTL market and AAT business trends - Management indicated mixed performance in the LTL market, with some stress observed, while the AAT business is performing well and looking good going into the second quarter [44][47] Question: Appetite for M&A in the current environment - Management stated that the appetite for M&A remains unchanged, with a focus on disciplined capital deployment and the potential for share repurchases [50][52] Question: Insights into the protein business and avian flu impact - Management explained the cyclical nature of avian flu and projected a return to full capacity by June, with improvements expected in results thereafter [68] Question: Details on tuck-in acquisition and revenue impacts in warehouse and managed transportation - Management provided insights into a recent tuck-in acquisition in the specialty dedicated fleet and expressed optimism for revenue growth in warehousing and managed freight moving forward [75][80]

Financial Data and Key Metrics Changes - The company reported record revenue of over $631 million for March, reflecting strong execution and digital marketing efforts [7][17] - Same store sales grew by 11%, driven by aggressive pricing and promotional initiatives [8][19] - GAAP net income for the quarter was $3.3 million, or $0.14 per diluted share, an improvement from the previous year [19] - Adjusted EBITDA for the second quarter was $30.9 million, up 5% year-over-year [20] Business Line Data and Key Metrics Changes - The company experienced historically low margins on new and used boats due to aggressive pricing strategies [9][18] - Diversification into higher margin businesses, such as marinas and superyacht services, has helped mitigate cyclical volatility [9][12] - The gross margin for the quarter was 30%, remaining flat compared to the previous fiscal year [18] Market Data and Key Metrics Changes - The company noted a decline in overall unit volume year-over-year, particularly in the pontoon and value-oriented segments [17][18] - Premium categories performed better, indicating a shift in sales mix towards higher average price point products [17][18] Company Strategy and Development Direction - The company is focused on a customer-centric approach and leveraging technology for competitive advantage [6][7] - Strategic initiatives include selectively closing, consolidating, or expanding locations to align with growth opportunities [10] - The company is committed to building relationships in iconic destinations and enhancing its global superyacht and marina presence [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic climate and its impact on retail demand, particularly due to tariffs [6][16] - The company is tempering expectations for near-term growth and recognizing a slower recovery pace in the industry [25] - Despite challenges, management remains confident in the long-term strategic position within the premium segment [25] Other Important Information - The company has been recognized as a great place to work for two consecutive years, highlighting strong team tenure and culture [13] - The balance sheet remains strong, with cash and cash equivalents exceeding $203 million [20] Q&A Session Summary Question: Can you provide details on the disaggregation of the 11% same store sales growth? - Management indicated that the growth was driven by a shift towards premium product mix, despite unit declines in key segments [27][29] Question: What are the direct tariff costs impacting the company? - Management clarified that the guidance reduction is primarily due to macro consumer concerns rather than direct tariff costs [39][40] Question: How is the promotional environment affecting inventory levels? - Management noted that the industry is making progress in clearing aged inventory, with expectations for improved conditions in the summer [48][49] Question: How is consumer demand in the superyacht division? - Management reported strong bookings for the summer season in the Mediterranean, indicating resilience in the superyacht segment [82][84] Question: How does the company view its capital allocation strategy in the current environment? - Management emphasized a prudent approach to acquisitions while focusing on synergies between higher margin businesses [87][88]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $447.7 million, an increase of 5.7% compared to the prior year [6] - Net income was reported at $17.2 million, with diluted EPS of $0.23 [11] - Cash flow from operations, excluding payroll accrual changes, was $32.1 million, an increase of $41.3 million over the prior year [6][12] - The company raised its 2025 cash flow from operations expectations from a range of $45 million to $60 million to a range of $60 million to $75 million [12] Business Line Data and Key Metrics Changes - Environmental services revenue was $196.3 million with a margin of 10.8% [10] - Dietary services revenue was $251.3 million with a margin of 7.6% [10] - Cost of services was reported at $379.7 million, representing 84.8% of revenue [11] Market Data and Key Metrics Changes - The company noted that workforce availability and occupancy continue to grow, contributing positively to the business environment [6][8] - The reimbursement environment remains stable, with a proposed 2.8% increase for Medicare rates for fiscal year 2026 [19] Company Strategy and Development Direction - The top three strategic priorities for the company include driving growth through management development, managing costs through operational execution, and optimizing cash flow [8] - The company is focused on increasing customer payment frequency and enhancing contract terms [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the industry's strength due to a multi-decade demographic tailwind [6][19] - The recent court ruling on minimum staffing rules is expected to provide clarity and stability to the provider community [20] - Management remains optimistic about the future, citing strong fundamentals and a favorable position to capitalize on upcoming opportunities [50] Other Important Information - The company completed a small tuck-in acquisition, which is expected to contribute about 1% to total revenue for 2025 [15] - The company repurchased approximately $7 million of common stock during Q1, bringing total buybacks to about $23 million since February 2023 [15] Q&A Session Summary Question: Regulatory environment and customer feedback - Management highlighted that industry fundamentals are gaining strength, with labor availability being crucial for occupancy growth [18][19] Question: Impact of potential tax changes on Medicaid reimbursement - Management expressed confidence that potential changes would likely not impact funds flowing to skilled nursing facilities [25] Question: Sustainability of gross and EBITDA margins - Management attributed strong margins to service execution and expects this trend to continue into Q2 and beyond [30][31] Question: Inflation impact on food and labor costs - Management noted that while food inflation is increasing, they have provisions to manage costs and are seeing strong job growth in the healthcare sector [33][35] Question: Revenue guidance for Q2 and cash flow expectations - Management clarified that the revenue guidance reflects various factors, including timing of new business adds and the recent acquisition [40][41] - The increase in cash flow guidance was attributed to strong Q1 performance and the receipt of CARES Act funds [44][46]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $447.7 million, an increase of 5.7% compared to the prior year [6][10] - Net income was reported at $17.2 million, with diluted EPS of $0.23 [11] - Cash flow from operations, excluding payroll accrual changes, was $32.1 million, an increase of $41.3 million over the prior year [6][12] - The company raised its 2025 cash flow from operations expectations from a range of $45 million to $60 million to a range of $60 million to $75 million [12] Business Line Data and Key Metrics Changes - Environmental services revenue was $196.3 million with a margin of 10.8% [10] - Dietary services revenue was $251.3 million with a margin of 7.6% [10] - Cost of services was reported at $379.7 million, representing 84.8% of revenue [11] Market Data and Key Metrics Changes - Days Sales Outstanding (DSO) improved to 78 days from 88 days year-over-year [13] - The skilled nursing industry added approximately 24,000 new jobs in Q1 2025, indicating a recovery trend [37] Company Strategy and Development Direction - The company’s top three strategic priorities include driving growth through management development, managing costs through operational execution, and optimizing cash flow [8] - The company is focused on organic growth drivers, with a small tuck-in acquisition contributing about 1% to total revenue [15][44] Management's Comments on Operating Environment and Future Outlook - Management noted that industry fundamentals are strengthening, supported by a multi-decade demographic tailwind [6][19] - The reimbursement environment is stable, with a proposed 2.8% increase for Medicare rates for fiscal year 2026 [19] - Management expressed confidence in sustaining positive cash collection momentum for the rest of the year [47] Other Important Information - The company opportunistically repurchased approximately $7 million of common stock during Q1 2025 [15] - The Texas federal court ruling on minimum staffing rules has provided clarity and reduced regulatory overhang for the industry [20] Q&A Session Summary Question: Regulatory environment and customer feedback - Management highlighted that industry fundamentals are gaining strength, with labor availability being crucial for occupancy growth [18][19] Question: Impact of potential tax changes on Medicaid reimbursement - Management expressed confidence that potential changes would likely not impact funds flowing to skilled nursing facilities [25][26] Question: Sustainability of gross and EBITDA margins - Management attributed strong margins to service execution and expects this trend to continue [32][34] Question: Inflation impact on food and labor costs - Management noted food inflation and stable wage growth, with a strong recovery in job additions within the healthcare sector [35][37] Question: Clarification on revenue guidance for Q2 - Management indicated that the guidance reflects variables such as timing of new business adds and the impact of the recent acquisition [42][44] Question: Cash flow guidance and collection momentum - Management confirmed that the increase in cash flow guidance was due to both the ERC funds and strong Q1 performance [46][47]