Financial Data and Key Metrics Changes - The company reported revenue of $5.6 billion for the first quarter of 2025, with core operating earnings of $270 million and operating margins improving to 4.9% [6][32] - Adjusted earnings per share were $3.12, down from $3.18 a year ago, while operating cash flow was a use of $128 million in the first quarter [6][32] Business Line Data and Key Metrics Changes - In the Seating segment, sales were $4.2 billion, a decrease of 7% year-over-year, with adjusted operating margins at 6.7% [33] - The E Systems segment reported sales of $1.4 billion, also down 7% year-over-year, with adjusted earnings of $74 million and operating margins at 5.2% [34] Market Data and Key Metrics Changes - Global vehicle production increased by 1% year-over-year, but Lear's sales-weighted production declined by 5%, with North America down 5% and Europe down 7% [28][30] - In China, production volumes increased by 12%, but Lear's business lagged industry growth estimates by 5% [30] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and support sustainable value creation through disciplined capital allocation [7][8] - The company is focusing on operational excellence and innovation, particularly through its ComfortFlex modules, which have received positive recognition [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing international trade negotiations have introduced significant uncertainty, particularly regarding tariffs and production volumes [35][36] - The company remains confident in recovering the costs associated with tariffs and is adjusting its capital spending in response to the weaker industry production outlook [38][39] Other Important Information - The company has paused share repurchase activities to maintain liquidity during uncertain times, with plans to resume once visibility improves [40][41] - The company has reduced its global hourly headcount by nearly 19,000 since the end of 2023, contributing to operational efficiency [17][18] Q&A Session Summary Question: Have you seen any meaningful changes to production schedules? - Management acknowledged that changes have been announced but noted the environment remains dynamic, leading to the decision to withdraw guidance due to uncertainty [48][49] Question: Is there a way to get your customers to be the importer of record for tariff reimbursements? - Management confirmed they are discussing options with customers regarding who will be the importer of record and are considering moving production around [55][56] Question: What is the lower end of your outlook contemplating as far as LVP by region? - Management indicated that the February guidance anticipated a 1% global production decline, with significant uncertainty remaining, particularly in North America [69][70] Question: What drove the better-than-expected margin performance? - Management attributed the improved margins to better-than-expected production and a strong finish in March, along with strong operating performance across both business segments [96][97] Question: Are you pausing the buyback while figuring out the outlook for free cash flow? - Management confirmed they are pausing share repurchases temporarily until there is more visibility on production plans [91][92]

Financial Data and Key Metrics Changes - The company reported revenue of $5.6 billion for Q1 2025, with core operating earnings of $270 million and operating margins improving to 4.9% [6][12][31] - Adjusted earnings per share were $3.12, down from $3.18 a year ago, and operating cash flow was a use of $128 million in the first quarter [6][31] Business Line Data and Key Metrics Changes - In the Seating segment, sales decreased by 7% year-over-year to $4.2 billion, with adjusted operating margins at 6.7% [31][32] - The E Systems segment also saw a 7% decline in sales to $1.4 billion, with adjusted earnings of $74 million, reflecting a slight increase in operating margins to 5.2% [32][33] Market Data and Key Metrics Changes - Global vehicle production increased by 1% year-over-year, but Lear's sales-weighted production was down 5%, with North America and Europe seeing declines of 5% and 7% respectively, while China experienced a 12% increase [26][27] - Lear's sales growth in Europe outperformed industry production by 2 percentage points, while North America lagged by 2 percentage points [27][28] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and support sustainable value creation through disciplined capital allocation [7][12] - Recent awards in Seating and E Systems, including significant contracts with major automakers, highlight the company's focus on innovation and operational excellence [8][11][41] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the automotive industry due to international trade negotiations and tariff impacts, leading to a withdrawal of full-year guidance [34][35] - Despite challenges, the company remains confident in recovering tariff costs and achieving operational performance improvements [35][36] Other Important Information - The company has paused share repurchases to maintain liquidity during uncertain times, with plans to resume once visibility improves [39][86] - A strong balance sheet with no near-term debt maturities and $2.8 billion in available liquidity positions the company well for future challenges [38][39] Q&A Session Summary Question: Have you seen any meaningful changes to production schedules? - Management acknowledged some changes in production schedules but noted the environment remains dynamic, leading to the decision to withdraw guidance due to uncertainty [46][48] Question: Is there a way to get customers to be the importer of record for tariff reimbursements? - Management confirmed they are discussing options with customers regarding who will be the importer of record to maximize tariff reimbursement opportunities [52][53] Question: What is the lower end of your outlook contemplating as far as LVP by region? - Management indicated that the original guidance anticipated a 1% global production decline, with potential adjustments based on foreign exchange rates and market conditions [64][66] Question: How are you starting to see performance separate from competitors? - Management highlighted strong operational performance and innovation as key factors in gaining market share, particularly in E Systems [72][75] Question: Will you be able to offset indirect tariff impacts with accelerated restructuring benefits? - Management expressed confidence in achieving additional net performance from increased restructuring investments, despite dialing back capital spending [78][79]

Financial Data and Key Metrics Changes - Worldwide revenue for Q1 2025 reached $47.3 million, representing approximately 25% growth compared to the prior year [6][26] - U.S. revenue was $44.8 million, reflecting approximately 27% growth, driven by a 27.3% increase in procedure volume [7][26] - Gross profit was $37.7 million, an increase of $7.8 million or 26.2%, with a gross margin rate of 79.7% [27] - Net loss narrowed to $6.5 million or $0.15 per diluted share, compared to a net loss of $10.9 million or $0.27 per diluted share in the prior year [28] - Positive adjusted EBITDA of approximately $5 million compared to an adjusted EBITDA loss of $4 million in Q1 2024 [29] Business Line Data and Key Metrics Changes - The company experienced broad-based demand for existing technologies and rapid adoption of new solutions launched in 2024 [7][39] - The number of physicians performing procedures using the company's products grew by 27%, with over 1,400 U.S. physicians engaged [19] - The number of four implant Granite cases grew approximately 69% compared to the prior year period [13] Market Data and Key Metrics Changes - The total addressable market has increased to over $3.5 billion, with a cumulative procedure volume growth of 25% over the last three years [9][10] - The company is targeting nearly 100,000 degenerative procedures annually with its Granite product, which became eligible for transitional pass-through payment starting January 1, 2025 [13][14] Company Strategy and Development Direction - The company focuses on innovation, engagement, commercial execution, and operational excellence as key priorities [9] - The strategy includes diversifying the product platform with unique yet complementary technologies to expand the target modalities and physician footprint [9][10] - The company aims to reach 100 territories over the next 12 to 15 months, leveraging a hybrid commercial model combining territory managers and third-party agents [24][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results over the long term, supported by resilient business trends and favorable reimbursement conditions [8][9] - The updated full-year revenue guidance is between $193.5 million to $197.5 million, implying year-over-year growth of approximately 16% to 18% [32] - Management noted that the company is well-positioned to achieve free cash flow in 2026, with a focus on maintaining operational discipline [30][32] Other Important Information - The company has a strong pipeline of novel technologies under development, with plans to launch new products over the next 12 to 18 months [16][18] - The company does not anticipate any material impact on gross margins or supply chain from proposed tariffs, as most manufacturing is domestic [30][31] Q&A Session Summary Question: Contribution from new products and channels to growth - Management noted broad-based growth and strong demand for current solutions, with impressive adoption of new products launched in 2024 [39] Question: Drivers of gross margin and future expectations - Management highlighted better-than-expected average selling price (ASP) and efficiency initiatives as key drivers of gross margin improvement [42][44] Question: Long-term growth expectations - Management expressed confidence in sustained growth potential, driven by technology leadership and expanding physician engagement [53][56] Question: Expected cadence of new guidance and sequential growth - Management indicated that while they do not think about the business in quarters, they expect to manage seasonality effectively with new product rollouts [66] Question: Operating expenses guidance - Management explained that elevated R&D investments and higher commissions linked to revenue growth are driving the expected increase in operating expenses [70][72] Question: Update on surgeon base and engagement - Management reported a record increase in the physician base, with broad engagement across various specialties [76][78] Question: Updates on reimbursement proposals - Management provided insights on CMS proposals and the potential for increased reimbursement rates, which could accelerate adoption of products [80][81] Question: Traction and adoption of TNT product - Management noted that TNT is seeing rapid adoption and is expected to benefit from upcoming reimbursement changes [97]

Financial Data and Key Metrics Changes - In Q1 2025, Zimmer Biomet reported net sales of $1.909 billion, reflecting a 1.1% increase on a reported basis and a 2.3% increase excluding foreign currency impact [27] - Adjusted earnings per share (EPS) for the quarter was $1.81, down from $1.94 in the prior year, attributed to higher costs and investments [32] - The company generated $279 million in free cash flow, demonstrating robust growth compared to the previous year [26] Business Line Data and Key Metrics Changes - U.S. hips sales grew nearly 4%, while U.S. knees saw a modest growth of 0.2% [29] - The S.E.T. segment grew by 4.9%, with notable growth in CMFT and Sports categories [30] - International sales grew by 3.7%, driven by mid-single digit growth in knees and high-single digit growth in S.E.T. [28] Market Data and Key Metrics Changes - The U.S. market showed a 1.3% growth overall, with hips and S.E.T. driving performance [27] - Internationally, hips grew by 2.4%, with U.S. hips growing at 3.7% and international hips at 1% [29] - The company anticipates a full-year organic constant currency revenue growth of 3% to 5% for 2025 [10] Company Strategy and Development Direction - Zimmer Biomet is focusing on three strategic priorities: people and culture, operational excellence, and innovation and diversification [12] - The company aims to enhance its U.S. market performance through leadership changes and optimizing sales channels [14] - The recent acquisition of Paragon 28 is expected to contribute approximately 270 basis points to sales growth in 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance despite challenges such as tariffs and foreign exchange impacts [34] - The company is optimistic about new product launches and expects second-half growth to be higher than the first half due to favorable comparisons and new product uptake [35] - Management acknowledged the need for improved performance in the U.S. knee segment and is implementing strategies to enhance competitiveness [81] Other Important Information - The company reported a reduction in days on hand inventory from over 400 days in early 2024 to approximately 370 days [15] - The Paragon 28 acquisition was successfully integrated with minimal disruption, retaining key leadership and sales teams [110] Q&A Session Summary Question: Impact of tariffs on EPS and mitigation efforts - Management detailed steps taken to mitigate tariff impacts, including optimizing country of origin and sourcing adjustments, expecting a $60 million to $80 million headwind for 2025 [45][46] Question: Growth expectations and new product impacts - Management indicated confidence in achieving mid-single digit growth in the second half of 2025, driven by new product launches and improved execution [56][57] Question: Performance in ASC versus hospital channels - The company noted that over 20% of U.S. sales now come from the ASC environment, with expectations for continued growth in this area [94] Question: Pricing trends and future expectations - Management expects pricing to remain flat for 2025, with a stable environment compared to historical norms, despite previous fluctuations [68][69] Question: Clarification on the Paragon acquisition integration - The integration of Paragon 28 is progressing well, with all key personnel retained and ongoing product innovations maintained [110]

Financial Data and Key Metrics Changes - Revenues totaled $548 million, down approximately 4% on an organic basis after adjusting for FX translation and business divestitures [20] - Adjusted EBITDA was $67 million, with year-over-year comparisons affected by negative FX and divestiture impacts of $7 million [21] - Adjusted diluted loss per share was $0.18, excluding the impact of special items [21] Business Line Data and Key Metrics Changes - Harsco Environmental segment revenues totaled $243 million, with adjusted EBITDA of $39 million, impacted by lower volumes due to site exits and closures [23] - Clean Earth achieved revenues of $235 million and adjusted EBITDA of $38 million, with EBITDA increasing by 12% supported by revenue growth of 4% [25] - Rail revenues totaled $70 million, with an adjusted EBITDA loss of $2 million, in line with expectations [26] Market Data and Key Metrics Changes - Steel production at customer locations declined less than 1% compared to the prior year, with production weakest in Asia, the Middle East, and Latin America [23] - The U.S. dollar strength has negatively impacted Harsco Environmental's revenues and EBITDA by approximately $100 million and $25 million over the past three years [13] - Recent dollar weakness is seen as a potential tailwind for Harsco Environmental, which generates roughly 80% of its revenues outside the U.S. [13] Company Strategy and Development Direction - The company is focused on expanding service capabilities and business growth, particularly in Clean Earth, which is expected to outpace other segments [10][11] - Harsco Environmental is managing through a difficult period in the global steel industry, with expectations for stable performance on a like-for-like basis [17] - The company anticipates earnings growth and completion of ETO contracts in Rail, aiming for annual free cash flow of $150 million in the future [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant macroeconomic uncertainty due to ongoing global trade issues but does not expect a material direct impact from tariffs [9][19] - The outlook for Clean Earth's earnings, margins, and free cash flow is positive, tracking ahead of financial targets established previously [11] - Management expects a stronger second half for Harsco Environmental, driven by new site ramp-ups and operational improvements [58] Other Important Information - Cash flow was ahead of expectations, supporting full-year cash flow guidance of $30 million to $50 million [7] - The company completed the rebuild of the Rail leadership team with new appointments [8] Q&A Session Summary Question: Thoughts on steel production and the economy going forward - Management expects a little bit of volume growth for Harsco Environmental, with efficiency and cost reduction programs mitigating impacts from site shutdowns [35] Question: Clean Earth's performance and volume assumptions - Management sees volume as a larger contributor to earnings growth this year, with no signs of economic slowdown yet [38][40] Question: Status of Rail ETO contract renegotiation - The amendment recognizes cost inflation and includes a new delivery schedule, reducing future penalty risks [46] Question: Sustainability of Clean Earth margin expansion - Management expects margins in Clean Earth to exceed previously projected levels, with ongoing efficiency initiatives contributing to margin growth [48][49] Question: Pressure in the steel industry and underlying market changes - Management notes that excess capacity in the steel industry remains a factor, but there are encouraging signs in the EU that may improve customer profitability [55]

OneSpan Inc. (NASDAQ:OSPN) Q4 2024 Results Conference Call February 27, 2025 4:30 PM ET Company Participants Joe Maxa - Vice President, Investor Relations Victor Limongelli - Chief Executive Officer Jorge Martell - Chief Financial Officer Conference Call Participants Gray Powell - BTIG Catharine Trebnick - Rosenblatt Securities Anja Soderstrom - Sidoti Operator Good day, and thank you for standing by. Welcome to the Q4 2024 OneSpan Earnings Conference Call. At this time, all participants are in a listen-onl ...

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $93.5 million, exceeding the midpoint of guidance and down 5% year-over-year [7][23] - Non-GAAP gross margin was 57.4%, an increase of over 600 basis points year-over-year [7][24] - Non-GAAP operating expenses were $39.9 million, below the targeted range and down $1.4 million from the previous year [8][24] - Non-GAAP EPS was $0.5, representing a $0.25 improvement year-over-year [8][26] - Adjusted EBITDA was $16.8 million, approximately 18% of sales, compared to $11.9 million in the same quarter last year [25] Business Line Data and Key Metrics Changes - Hardware revenue was $62.3 million, down 7% year-over-year [23] - Software revenue was $11.6 million, down 5% [23] - Service revenue decreased by 2% to $19.7 million [23] - Recurring revenue was $17.1 million, representing 18% of sales, and declined by 2% year-over-year [23] Market Data and Key Metrics Changes - The Americas and European regions saw a decline of 5% and 52% respectively, while Asia Pacific experienced a decline of over 11% primarily due to weakness in China [23] - Stable demand was noted in sectors like 3D metrology, while challenges persisted in commercial construction and specific regions [10] Company Strategy and Development Direction - The company is focused on a multi-year strategy categorized into three phases: operational excellence, organic growth initiatives, and strategic investments [11][12] - The first phase has been successful in improving cash flow generation and gross margins, while the second phase will focus on organic growth initiatives [12][13] - New product launches and strategic partnerships are key components of the growth strategy, including the introduction of the FARO LEAP ST handheld scanner and partnerships with Topcon [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the market outlook beyond the next quarter, citing ongoing economic challenges and FX headwinds [10][28] - The company anticipates continued headwinds in Q1 2025, with revenue guidance between $77 million and $85 million [28] - Despite challenges, management remains optimistic about the potential of growth initiatives to offset market softness [28][22] Other Important Information - The company achieved a record year in 2024, with significant improvements in gross margin and cash flow [10][27] - The updated long-term aspirational goals include a gross margin of 59% and an EBITDA margin of 20% [27] Q&A Session Summary Question: Differences in the OEM distribution agreement with Topcon compared to previous agreements - Management highlighted a comprehensive growth plan with Topcon, expecting significant contributions to revenue [31][32] Question: Timeline for the full ramp of the Topcon agreement - Management indicated a cautious approach, focusing on delivering growth for both companies [34] Question: Impact of the digital metrology agreement - The agreement is expected to enhance global reach and customer base, with initial focus on one metrology product [35][36] Question: Market conditions and growth initiatives - Management noted that Q1 conditions are similar to Q4, with expectations for growth initiatives to help outpace market trends [43][44] Question: Competitive landscape and tariff impacts - Management discussed the potential for tariff impacts but emphasized the ability to adapt production strategies [49][50] Question: Customer caution regarding tariff impacts - Management acknowledged that uncertainty leads to cautious spending among customers, particularly in certain regions [56][57] Question: Pricing strategy and competitor actions - Management confirmed recent price increases were well received, with no significant pushback noted from customers [61][62]