Financial Data and Key Metrics Changes - North American system-wide sales reached $467 million, an 18% increase year over year [6][17] - Quarterly run rate average unit volumes increased to $659,000, up 8% year over year [6][17] - Total members increased to 865,000, a 12% rise year over year, with same-store sales up 4% [7][17] - Consolidated revenue for the quarter was $76.9 million, down 4% from $79.7 million in the prior year [17] - Adjusted net loss for the quarter was $7.7 million, translating to a loss of $0.20 per basic share [28] Business Line Data and Key Metrics Changes - Franchise revenue increased to $43.9 million, up 5% year over year, driven by higher royalty revenue [19] - Equipment revenue declined by 20% year over year to $11.1 million, primarily due to a 22% decrease in North American installations [20] - Merchandise revenue fell 25% year over year to $6.3 million, attributed to lower sales volumes and price discounts [20] - Franchise marketing fund revenue rose 18% year over year to $9.3 million, reflecting growth in system-wide sales [21] Market Data and Key Metrics Changes - The company opened 116 new studios globally during Q1, with 93 in North America and 23 internationally [14] - The total number of global open studios reached 3,298, with a closure rate of approximately 1.5% [14] - The company anticipates global net new studio openings to range from 160 to 180, a 29% decrease at the midpoint from the prior year [31] Company Strategy and Development Direction - The company is focusing on transforming its operations to enhance efficiency and effectiveness, particularly in franchisee support [36][39] - A new field operations function is being launched, with plans to have 12 field managers in place across North America [10] - The company is actively working to support its master franchisee base internationally, with a focus on markets like Spain, Portugal, France, Japan, and Australia [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for stabilization in 2025, with expectations for flat revenue and EBITDA compared to 2024 [39] - The company is confident in its operational health and believes that improvements will lead to growth in the future [40] - Management is closely monitoring consumer behavior and has not seen any significant shifts, maintaining expectations for same-store sales growth in the mid-single digits [92][95] Other Important Information - The company has entered into lease settlement agreements totaling approximately $30.7 million, with most liabilities expected to be settled in 2025 [24] - The anticipated interest expense for 2025 is approximately $49 million, with a tax rate expected to be in the mid to high single digits [33] Q&A Session Summary Question: What are the overarching themes for the next few months? - The company is undergoing a transformation to build a foundation of efficiency and effectiveness, focusing on franchisee support and operational audits [36][38] Question: How many of the new openings will be from Club Pilates? - Club Pilates will account for over half of the new openings and license sales this year [46] Question: What is the expected closure rate for the year? - The company expects a closure rate of 6% to 8%, primarily from Cycle Bar and StretchLab [50] Question: How will the field operations team impact the business? - The field operations team will focus on supporting struggling franchisees and ensuring adherence to operational standards [58][60] Question: What is the company's approach to marketing for StretchLab? - The company has doubled local marketing spend for StretchLab and is considering additional investments to drive leads [69] Question: What factors are impacting the revised unit outlook for the year? - The lack of license sales in Q4 and Q1 has created a bottleneck, along with higher closures than anticipated [76][77]

Financial Data and Key Metrics Changes - Revenue for Q1 was $61 million, down 21.4% year-over-year, primarily due to lower demand in the medium and heavy-duty truck vertical and powersports [13][21] - Gross margin expanded to 19.2%, up 220 basis points year-over-year and 340 basis points sequentially [12][14] - Adjusted EBITDA margin was 11.7%, an improvement from 11.2% in the previous year [18] - Net income for Q1 was $2.2 million, or diluted EPS of $0.25, compared to $3.8 million or diluted EPS of $0.43 in the same period last year [17] - Cash flow from operations exceeded $6 million, up from $5.1 million a year ago [18] Business Line Data and Key Metrics Changes - The building products sector secured $10 million in new business, while the electric vehicle battery sector contributed $5 million [10] - The company achieved 99.3% on-time delivery and maintained a quality level under 100 ppm, both industry-leading metrics [9] Market Data and Key Metrics Changes - The company expects revenues to decline between 10-15% for the first half of 2025, revised from a previous guidance of down 5-10% [21] - The decline is attributed to tooling sales shifting to the second half of the year and lower than expected product sales in the heavy and medium-duty truck market [21][22] Company Strategy and Development Direction - The company's focus for 2025 is on investing for growth, with plans to utilize restructuring savings to enhance sales resources and market analysis [15][20] - The strategy includes prioritizing high-value parts in sectors where technical differentiation provides a competitive advantage, such as construction, energy, industrial, and medical markets [26] - The company remains active in M&A discussions, with a robust pipeline aligned with strategic priorities [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining gross margins in the 17% to 19% range for the full year despite macroeconomic uncertainties [25] - The company is closely monitoring global trade dynamics and potential regulatory changes that may impact demand [25][22] - Management highlighted the importance of adapting quickly to customer needs and production levels in response to market conditions [23] Other Important Information - The company repurchased approximately 63,000 shares at an average price of $14.5 during the first quarter [20] - As of March 31, 2025, the company had a strong liquidity position of $94.5 million, including $44.5 million in cash [18] Q&A Session Summary Question: Insights on growth and SMC capacity - Management expressed excitement about SMC and its potential for revenue growth, highlighting shorter quote-to-cash cycles and existing capacity for production [29][30] Question: Advantages of US and Mexico footprint - Management confirmed that having production capacity in both the US and Mexico positions the company well to capitalize on opportunities as businesses consider reshoring [36][37] Question: Updates on newer markets like medical and turf protection - Management reported ongoing production in turf protection and opportunities in the medical sector, emphasizing the company's technical capabilities [38][39] Question: Details on large press upgrades - Management discussed evaluating upgrades to older presses to enhance operational speed and efficiency [41][42] Question: Thoughts on acquisition valuations - Management noted that acquisition multiples are between six and seven for companies being considered, with competitive pricing strategies in place [50]

Financial Data and Key Metrics Changes - Total revenue for the second quarter was $663 million, an increase of approximately 3% when adjusting for the unwinding of BES and the sale of U.S. Loans in the prior year [13][14] - Adjusted EBITDA for the second quarter reached a record $73.5 million, an increase of $8.6 million or 13% compared to the prior year [18] - Adjusted EBITDA margins expanded by 150 basis points to 11.1%, marking consecutive quarters of year-over-year margin expansion [18][19] - Net leverage at the end of the second quarter was 2.1 times, down from 2.4 times in the prior year, driven by lower debt levels and improved profitability [21] Business Line Data and Key Metrics Changes - Core snow revenue increased by $22 million or 15%, primarily due to increased snowfall in East Coast markets [15] - Development business revenue increased by 5% due to ongoing conversion of a high-quality backlog [16] - Adjusted EBITDA for the Development segment was $17.1 million, representing a record Q2 for this segment [18] Market Data and Key Metrics Changes - Approximately 60% of revenue is derived from recurring contract revenue, providing a resilient and predictable revenue base [16] - Customer retention rates improved by 170 basis points on a trailing twelve-month basis, indicating positive momentum [12][62] Company Strategy and Development Direction - The company is focused on transforming its business model and has raised its full-year guidance on adjusted EBITDA, margins, and free cash flow [5][25] - Initiatives include prioritizing employee satisfaction, enhancing service quality, and leveraging size and scale as the leading player in the commercial landscape industry [8][9] - The company is committed to a fleet refresh strategy and has ordered over 1,000 core production vehicles [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against macroeconomic uncertainties, citing a diversified customer base and a strong backlog [9][10] - The company anticipates continued healthy cash flow generation and has raised its adjusted EBITDA guidance to $355 million, up from $345 million [25] - Management acknowledged potential impacts from tariffs and trade but emphasized minimal current effects on the business [84] Other Important Information - The company launched a $100 million share repurchase program, reflecting confidence in its valuation and commitment to returning capital to shareholders [22][23] - The company is actively managing its M&A pipeline and is well-positioned to execute against its strategy when opportunities arise [24] Q&A Session Summary Question: Impact of snow on revenue and core land - Management confirmed that increased snow revenue positively impacted results but noted it limited core land revenue by approximately $6 million [34][37] Question: Stock buyback strategy versus M&A - Management indicated a willingness to be aggressive in stock repurchases if the stock remains undervalued while also being open to M&A opportunities [38][40] Question: Labor availability and costs - Management reported improved employee turnover and a stable labor cost environment, with annual increases normalizing to 2% to 3% [51][57] Question: Customer retention differences among branches - Management highlighted that customer retention improvements are driven by strong branch leadership and engagement with customers [61][62] Question: Guidance increase and drivers - Management clarified that the increase in EBITDA guidance was primarily due to overall margin expansion rather than snow revenue [72][76] Question: Inflationary pressures and mitigation efforts - Management noted that labor cost increases are currently at or below historical ranges and that commodity prices have shown some deflation [96][97] Question: Confidence in achieving growth targets - Management expressed confidence in achieving mid-single-digit organic growth despite macro uncertainties, emphasizing a focus on long-term strategies [101][104]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $2.22, a 6% increase from Q1 2024 [8] - Adjusted gross margin for Q1 2025 was approximately $182 million, up 11% from Q1 2024 [25] - Adjusted net income increased by 9% to approximately $51 million for the quarter [25] Business Line Data and Key Metrics Changes - Regulated segment adjusted gross margin was approximately $128 million, an 8% increase from the previous year [28] - Unregulated energy segment adjusted gross margin rose 18% to approximately $54 million [28] Market Data and Key Metrics Changes - Delmarva customer growth was up nearly 4%, while Florida saw a 3% increase compared to the same period last year [10] - Increased demand for natural gas was noted across service areas, driven by population growth and new residential communities [10] Company Strategy and Development Direction - The growth strategy focuses on three pillars: prudent capital deployment, proactive regulatory management, and continuous business transformation [11] - The company plans to invest between $325 million and $375 million in capital growth for 2025, with $113 million already invested in Q1 [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year 2025 adjusted EPS guidance of $6.15 to $6.35, despite the delay in the WRU project [33][76] - The company remains optimistic about its capital program and the demand for gas, indicating no significant impacts from the broader economic environment [76] Other Important Information - The company received a $20 million increase in capital investment for the WRU project, raising the total expected cost to approximately $100 million [16] - The Board approved an $8 increase in the annualized dividend, reflecting a 7% growth [32] Q&A Session Summary Question: Any updates on natural gas infrastructure for the space industry in Florida? - Management reported no substantive updates but mentioned ongoing interest and potential for liquefied natural gas to support space launch facilities [38][39] Question: Is there any expansion planned for Marlin? - Management indicated ongoing capital investment in Marlin but no large-scale expansion announcements at this time [40][41] Question: Thoughts on tariffs and their impact on the business? - Management noted minimal issues related to tariffs so far but acknowledged potential cost increases for specific projects like WRU due to market uncertainties [47][48] Question: How will the delay in WRU affect margins? - Management stated they can manage the $3 million margin drop from WRU and have operational capabilities to provide peaking services temporarily [51][52] Question: Concerns about foreign tourism or housing starts affecting business? - Management has not seen significant impacts on tourism but noted a strong backlog of contracted housing starts [55][56] Question: Will the company revert to a normal seasonality pattern in 2027? - Management believes that seasonality will return to a more typical pattern in 2027, influenced by regulatory activity and capital projects [57] Question: What are the thresholds for potential credit rating downgrades? - Management indicated that a downgrade could be considered around a 4.8 FFO to debt ratio, with upgrades around 3.8 [65][66]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 was $2.22, a 6% increase from Q1 2024 [7] - Adjusted gross margin for Q1 2025 was approximately $182 million, up 11% from Q1 2024 [22] - Adjusted net income for Q1 2025 was approximately $51 million, a 9% increase from the previous year [22] Business Line Data and Key Metrics Changes - Regulated segment adjusted gross margin was approximately $128 million, an 8% increase from the previous year [25] - Unregulated energy segment adjusted gross margin increased by 18% to approximately $54 million in Q1 2025 [26] - The Marlin Gas Services business contributed $3.6 million of additional gross margin in Q1 2025 [26] Market Data and Key Metrics Changes - Delmarva customer growth was up nearly 4% and Florida customer growth increased by 3% compared to the same period last year [8] - Increased demand for natural gas was noted across service areas, driven by population growth and new residential communities [8] Company Strategy and Development Direction - The company focuses on three pillars for growth: capital deployment for customer demand, proactive regulatory management, and continuous business transformation [9] - A five-year capital investment plan of $1.5 billion to $1.8 billion has been initiated, with $356 million invested in 2024 and $113 million in Q1 2025 [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about achieving the full year 2025 adjusted EPS guidance of $6.15 to $6.35 despite the delay in the WRU project [30] - The company is monitoring macroeconomic impacts but has not seen significant adverse effects on its operations [72] Other Important Information - The company received a $20 million increase in capital investment for the WRU project, raising total expected costs to approximately $100 million [14] - An $8 increase in the annualized dividend was approved, reflecting a 7% growth [29] Q&A Session Summary Question: Any updates on natural gas infrastructure for the space industry in Florida? - Management reported no substantive updates but mentioned ongoing interest and a $6.5 million grant for infrastructure expansion in Virginia [37][38] Question: Thoughts on tariffs and their impact on the business? - Management indicated minimal issues related to tariffs but acknowledged some cost increases for specific projects due to market uncertainty [43][45] Question: How will the company manage the margin loss from the WRU project delay? - Management expressed confidence in managing the margin loss through operational capabilities and ongoing projects [48][50] Question: Concerns regarding foreign tourism or housing starts affecting business? - Management noted no significant impacts on tourism and a strong backlog of contracted housing starts, although multifamily markets in Florida face challenges [52][53] Question: Will the company revert to a normal seasonality pattern in 2027? - Management believes that seasonality will return to a more typical pattern, influenced by regulatory activity and capital projects [54]

Financial Performance & Guidance - NN's Q1 2025 net sales were $105.7 million, flat year-over-year on a pro forma basis, but down $15.5 million as reported[14, 40] - Adjusted EBITDA for Q1 2025 was $10.6 million, with an adjusted EBITDA margin of 10.0%, reconfirming FY 2025 guidance of $53-$63 million[14] - The company is lowering its 2025 net sales guidance to $430-$460 million due to GDP uncertainties, but reiterating adjusted EBITDA guidance of $53-$63 million and new business awards guidance of $60-$70 million[12] - NN initiates 2025 guidance for free cash flow at $14 to $16 million[12] Business Transformation & New Business - NN is launching 120 new programs in 2025, expected to add approximately $55 million in peak annual sales[11] - The company's new business program has secured $160 million of new business from January 2023 to May YTD 2025[16, 18, 21] - NN Europe achieved $6.7 million in new wins in Q1 2025, with an estimated total program value of over $50 million[25] - The company's working capital has been reduced by 20%, or $21.6 million, over the last two years, from $106.4 million in Q1 2023 to $84.8 million in Q1 2025[37, 38] Cost Reduction & Operational Efficiency - NN has reduced its global staff by 16%, or 525 people, over two years, with further reductions planned for 2025[29, 33] - The company is implementing a $6.5 million payroll reduction plan in 2025[33] - NN is advancing its organic transition into non-auto areas by leveraging $340 million of installed assets and investing $10-$14 million additional cash capex per year[12]

Financial Performance - The company reported net sales of $96.978 million for Q1 2025, a decrease of 1.9% compared to $98.906 million in Q1 2024 [3][5] - Gross profit for the quarter was $67.356 million, down 5.6% from $71.343 million in the same period last year [3][5] - Net income significantly declined to $0.465 million, a 94% drop from $7.746 million in Q1 2024, resulting in diluted EPS of $0.00 compared to $0.01 in the prior year [3][5][26] Operational Highlights - Specialty Retail sales increased by 12.0% to $38.6 million, while Professional and Direct-To-Consumer channels saw declines of 10.9% and 7.2%, respectively [5] - The company had $580.9 million in cash and cash equivalents as of March 31, 2025, slightly down from $586.0 million at the end of 2024 [4] Debt Management - On May 1, 2025, the company voluntarily repaid $300 million of long-term debt using available cash, with no prepayment penalties incurred [6] Guidance for Fiscal Year 2025 - The company reiterated its guidance for fiscal year 2025, expecting net sales between $410 million and $431 million, adjusted gross profit margin of 70.5% to 71.5%, and adjusted EBITDA margin of 20% to 22% [7][8] - The guidance reflects management's expectations regarding investments in demand generation, innovation, and execution capabilities [7] Strategic Focus - The CEO emphasized the company's commitment to navigating a dynamic environment and investing in strategic priorities to drive growth [2]

Financial Performance - BrightView reported a ~3% increase in total revenue excluding non-core business[27] - The company's total revenue was $662.6 million compared to $672.9 million in the same quarter last year[27] - Adjusted EBITDA increased by ~13% to $73.5 million, with a margin expansion of +150bps[30] - Development Services revenue increased by ~4.6% driven by backlog conversion[27] Guidance and Outlook - BrightView raised its FY25 Adjusted EBITDA guidance to $345 million to $365 million[44] - The company also raised its Adjusted EBITDA margin guidance to +80bps to +110bps[44] - Adjusted Free Cash Flow guidance was raised to $50 million to $70 million[44] - Snow Revenue is expected to be ~$205 million[44] Strategic Initiatives - BrightView is focused on strategic capital allocation, including a $100 million share repurchase program[42] - The company is accelerating its fleet strategy with increased capital investment[36, 42] - BrightView is prioritizing investments in its workforce and customer service[33]

Core Insights - NN, Inc. reaffirms its full-year adjusted EBITDA outlook for 2025 and sets a free cash flow guidance of $14-$16 million [1][15] - The company reported a net sales decrease of 12.8% year-over-year for Q1 2025, totaling $105.7 million, primarily due to business rationalization and unfavorable foreign exchange effects [5][6] - Adjusted EBITDA for Q1 2025 was $10.6 million, maintaining a margin of 10%, an increase from 9.3% in the prior year [5][8] Financial Performance - Q1 2025 net sales were $105.7 million, down from $121.2 million in Q1 2024, with pro forma net sales decreasing by 1.3% after adjustments [5][7] - The company reported a GAAP loss per share of $(0.23) compared to $(0.34) in Q1 2024, while adjusted net loss per share improved to $(0.03) from $(0.08) [9][33] - Free cash flow for Q1 2025 was a use of cash of $7.1 million, compared to a generation of cash of $0.3 million in the same period last year [9][34] Business Segments - Power Solutions segment net sales for Q1 2025 were $43.5 million, down from $48.2 million in Q1 2024, primarily due to the sale of Lubbock operations and lower volumes [10][11] - Mobile Solutions segment net sales decreased to $62.2 million from $73.1 million in Q1 2024, with losses from operations increasing to $2.7 million [12][13] Strategic Initiatives - The company secured $16.4 million in new business wins during the quarter, contributing to a robust commercial pipeline exceeding $740 million [4][21] - NN, Inc. aims for a $15 million cost reduction in 2025 as part of its operational efficiency initiatives [4][5] - The adjusted EBITDA margin target has been raised to 13-14% over the next five years [5][6] Outlook - For 2025, NN, Inc. expects net sales to range between $430 million and $460 million, with adjusted EBITDA projected between $53 million and $63 million [14][15] - The company anticipates that macroeconomic uncertainties will not significantly impact its operations, maintaining a positive outlook for organic growth and cash flow generation [4][15]

Financial Data and Key Metrics Changes - IFF generated approximately $2.8 billion in sales for Q1 2025, representing a 3% comparable currency neutral growth [10] - Adjusted operating EBITDA totaled $578 million for the quarter, a strong 9% increase on a comparable currency neutral basis [10] - Comparable currency neutral adjusted operating EBITDA margin increased more than 120 basis points to 20.3% [10] Business Line Data and Key Metrics Changes - Pharma Solutions delivered $266 million in sales, an 8% year-over-year increase on a comparable currency neutral basis [11] - Taste segment sales were $627 million, a 7% year-over-year increase on a comparable currency neutral basis [13] - Food Ingredients had sales of $796 million, a 4% comparable currency neutral decrease from the prior year [13] - Health and Biosciences segment delivered a 5% increase in comparable currency neutral sales [14] - Scent achieved net sales of $614 million, up 4% year-over-year on a comparable currency neutral basis [14] Market Data and Key Metrics Changes - The company noted that broader macroeconomic dynamics remain challenging, but IFF's portfolio is grounded in resilient essential end markets [20] - The company expects approximately 2% adverse impact on revenue from foreign exchange, down from 4% previously [22] Company Strategy and Development Direction - IFF is focused on strengthening its business through consistent reinvestment in core growth drivers: R&D, commercial, digital, and capacity [20] - The company is maintaining its full-year guidance ranges despite macroeconomic uncertainties [21] - IFF completed the divestiture of Pharma Solutions, which strengthens its capital structure and helps achieve a net debt to credit adjusted EBITDA ratio of below three times [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the order book remaining consistent with guidance despite macroeconomic uncertainties [28] - The company is actively working with customers to mitigate impacts of tariff actions and remains disciplined in response to macroeconomic uncertainty [9] - Management acknowledged concerns about potential recessionary pressures but emphasized the resilience of 80% of its portfolio in essential products [29] Other Important Information - Cash flow from operations totaled $127 million year-to-date, with CapEx at $179 million, approximately 6% of sales [15] - Gross debt was approximately $9.3 billion, a decrease of more than $1 billion compared to the year-ago period [17] Q&A Session All Questions and Answers Question: Can you talk us through which areas of the portfolio could potentially be at risk and which parts could be more resilient in a recessionary scenario? - Management indicated that 80% of the portfolio is in essential products, which are resilient, while discretionary areas like fine fragrances may be at risk [29] Question: Can you disclose what you think the gross impact today is on your costs from tariffs? - Management noted a gross exposure of over $100 million for 2025 related to tariffs, primarily from China, but emphasized successful supply chain optimization efforts [35] Question: What were the year-ago comps for flavors and food ingredients? - Management reported that Taste grew 11% last year in Q1, while Food Ingredients declined 4% last year [40] Question: Can you elaborate on the strategic rationale for the joint venture with Chimera? - The joint venture aims to scale enzymatic biomaterials and is expected to start operations by the end of 2027, targeting high-value biodegradable polymers [44][46] Question: What drove volumes lower in protein solutions? - Management indicated that volumes were down due to weaker performance in lower-value areas and production issues in higher-value areas, which are being resolved [55] Question: How do you see the inventory cycle affecting IFF? - Management expressed that they do not believe inventory levels are elevated enough to cause a significant downtick, given the recent destocking period [88]