Financial Data and Key Metrics Changes - Company reported first quarter sales of $126 million, essentially flat compared to the first quarter of 2024 [5][20] - Adjusted diluted earnings were $0.44 per share, down from $0.47 per share in the same period last year [22][23] - Adjusted gross margin was 37%, up 77 basis points year-over-year [21] Business Line Data and Key Metrics Changes - Diversified end market sales increased by 14% year-over-year, accounting for 53% of overall revenue [5][6] - Medical end market sales rose by 13% compared to the same period in 2024, with a book to bill ratio of 1.3 [6][8] - Aerospace and Defense sales surged by 39% year-over-year, with bookings up 32% [9][10] - Industrial market sales increased by 4% year-over-year, with bookings up 19% [11][12] - Transportation sales decreased by 12% due to market dynamics in China [13][20] Market Data and Key Metrics Changes - Current bookings for the second quarter indicate an improving trend, but there is caution regarding second half demand due to tariffs and geopolitical uncertainty [4][19] - North American light vehicle market is expected to be in the 15 million to 16 million unit range, with potential impacts from tariffs [16][17] Company Strategy and Development Direction - Company is focused on diversification across medical, industrial, aerospace, and defense markets, while progressing in electrification and transportation [3][15] - The strategy includes moving from a component supplier to a supplier of sensors, transducers, and subsystems [10] - Company aims to expand its customer base and range of applications in diversified end markets [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite near-term tariffs and economic pressures [19][69] - Demand in the medical end market is expected to remain solid, driven by ultrasound and therapeutic volume growth [15] - Aerospace and Defense revenue is anticipated to remain strong due to a healthy backlog and the SideQuest acquisition [15][18] Other Important Information - The company generated $16 million in operating cash flow for the first quarter, with a cash balance of $90 million [23][24] - Long-term debt balance was $87 million, providing good liquidity for strategic acquisitions [24] Q&A Session Summary Question: Booking profile strength in non-transportation business - Management noted strong bookings in diversified markets, particularly in medical therapeutics, but did not observe broad-based pre-buying [29][32] Question: Changes in transportation market assumptions - Management continues to monitor the transportation market but has not factored in any demand drop in guidance [33] Question: Guidance on profit profile for the year - Management indicated an increasing revenue profile throughout the year, supported by SideQuest seasonality and a mix change in diversified markets [34][35] Question: Manufacturing footprint and tariffs - Company has a regional manufacturing footprint with minimal imports from Asia, and is actively discussing pricing strategies with customers [39][41] Question: Margin improvement drivers - Expected margin enhancement is driven by growth in diversified markets, operational efficiency improvements, and currency impacts [64]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $126 million, essentially flat compared to the first quarter of 2024 [4] - Adjusted diluted earnings were $0.44 per share, down from $0.47 per share in the same period last year [21] - The adjusted gross margin was 37%, up 77 basis points year-over-year [20] Business Line Data and Key Metrics Changes - Diversified end market sales increased by 14% year-over-year, accounting for 53% of overall company revenue [4][5] - Medical end market sales rose by 13% compared to the same period in 2024, with a book to bill ratio of 1.3 [5][6] - Aerospace and Defense sales surged by 39% year-over-year, with bookings up 32% [8][9] - Industrial market sales increased by 4% year-over-year, with bookings up 19% [10][11] - Transportation sales decreased by approximately 12% due to market dynamics in China [12] Market Data and Key Metrics Changes - Current bookings for the second quarter indicate an improving trend, although there is caution regarding second half demand due to tariffs and geopolitical uncertainty [3][18] - North American light vehicle market is expected to be in the 15 million to 16 million unit range, with potential impacts from tariffs [15][16] - European production is forecasted at 16 million units, showing some softness due to overcapacity from Chinese OEMs [16] Company Strategy and Development Direction - The company continues to execute on its diversification strategy across medical, industrial, aerospace, and defense markets [2] - There is a focus on moving from a component supplier to a supplier of sensors, transducers, and subsystems [9] - The company aims to expand its customer base and range of applications in diversified end markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the medical end market, driven by ultrasound and therapeutic volume growth [14] - The company is closely monitoring the impact of tariffs and geopolitical factors on demand [18] - There is an expectation of gradual recovery in the industrial market, although potential demand softening is being watched [11] Other Important Information - The company generated $16 million in operating cash flow for the first quarter, with a cash balance of $90 million at the end of the quarter [22][23] - The long-term debt balance was $87 million, providing good liquidity for strategic acquisitions [23] Q&A Session Summary Question: Booking profile strength in non-transportation business - Management noted strong bookings in diversified markets, particularly in medical therapeutics, but did not observe broad-based pre-buying [28][31] Question: Changes in transportation market assumptions - Management continues to monitor the transportation market but has not factored in any demand drop in their guidance [32] Question: Guidance on profit profile for the year - Management indicated that revenue is expected to increase throughout the year, aided by SideQuest seasonality and a favorable mix change [33][34] Question: Manufacturing footprint and tariffs - The company has a regional manufacturing footprint that mitigates tariff impacts, with a focus on adapting costs and pricing in collaboration with customers [38][40] Question: Margin improvement drivers - Expected drivers of margin improvement include growth in diversified markets and operational efficiency [64]

Financial Data and Key Metrics Changes - For the full year 2024, the company delivered revenue in line with significantly revised guidance, despite a challenging year [8] - Fourth quarter revenue was $9.1 million, a decrease of 31.9% from $41 million in the same period of 2023 [21] - Gross margin increased from 23% in the prior year to 32% in Q4 2024 due to a higher mix of buy-side revenue [16] - Operating expenses for Q4 2024 were $7.7 million, down from $18.1 million in the same period of 2023 [24] - Adjusted EBITDA for Q4 2024 was a loss of $3.4 million compared to a loss of $6.6 million in the same period of 2023 [25] Business Line Data and Key Metrics Changes - Sell-side revenue fell to $2.7 million in Q4 2024 from $33.4 million in Q4 2023, primarily due to a major customer's suspension following a defamatory article [21][22] - Buy-side revenue decreased to $6.4 million in Q4 2024 from $7.6 million in the same period of 2023, impacted by reduced spending from certain customers [23] Market Data and Key Metrics Changes - The company is seeing sequential improvement in the first quarter of 2025 compared to November and December 2024, indicating a recovery trend [20] - Political advertising represented 50% to 60% of spending in Q4, significantly higher than the historical range of 10% to 15% [34] Company Strategy and Development Direction - The company is focused on diversifying revenue sources and optimizing its business model, including the launch of Colossus Connections to enhance direct integration with demand-side platforms [12][13] - The strategy includes targeting small- and mid-size clients who are shifting advertising budgets to digital, emphasizing a high-touch client relationship [15] - The company is pursuing opportunities in the middle market, which is seen as a growth area due to its slower transition to digital [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale both buy-side and sell-side businesses, reiterating revenue guidance of $90 million to $110 million for fiscal 2025 [19][28] - The second half of 2025 is expected to deliver strong gains as new direct sell-side partners come online [19][28] - Management noted that the company is well-positioned to capture market share and strengthen its offerings in the advertising technology space [20] Other Important Information - The company ended the year with cash and cash equivalents of $1.4 million, down from $5.1 million at the end of 2023 [26] - The company is actively pursuing funding and equity financing pathways to restore NASDAQ compliance and support growth initiatives [26] Q&A Session Summary Question: Impact of post-election malaise on Q4 and client spending recovery - Management noted that political spending was significantly higher in Q4, but December was softer than anticipated, impacting overall performance [34][35] Question: Aggressiveness on direct connections and curation strategy - The company sees opportunities in the middle market and plans to focus on expanding relationships with holdco-partners while also exploring curation opportunities [42][47] Question: Cost savings and annualized basis expectations - Management indicated potential annualized cost savings of $1.5 million to $2 million for 2025, reflecting ongoing operational optimizations [71] Question: Anticipation of positive cash flow - Management expects to return to a more normal cadence of cash flow in the third and fourth quarters of 2025 [73]

Financial Data and Key Metrics Changes - For the year 2024, the company reported an annualized base rent (ABR) of approximately $197.8 million, reflecting a 14.5% increase from $172.8 million in 2023 [20][21] - The adjusted funds from operations (AFFO) per share for Q4 2024 was $0.60, a 5.3% increase from $0.57 in Q4 2023, while the full year AFFO per share was $2.34, up 4% from $2.25 in 2023 [20][21] - The company achieved a fixed charge coverage ratio of 3.8 times as of December 31, 2024, indicating strong financial health [22] Business Line Data and Key Metrics Changes - In 2024, the company invested $289 million in high-quality convenience and automotive retail assets, acquiring 71 properties and providing development funding for new industry assets [7][8] - The investment activities were diversified, with 57% focused on non-convenience and gas property types, including express tunnel car washes and auto service centers [14][16] - The company reported a trailing twelve-month tenant rent coverage ratio of 2.6 times, indicating strong rent coverage across its portfolio [13][14] Market Data and Key Metrics Changes - The company expanded its presence in top metropolitan statistical areas (MSAs), with 60% of annualized base rent coming from the top 50 MSAs and 76% from the top 100 MSAs [13] - The investment activity in 2024 was characterized by a balanced approach, with convenience stores representing 41% of transaction volume, express tunnel car washes 33%, auto service centers 21%, and drive-thru quick service restaurants 5% [16] Company Strategy and Development Direction - The company is focused on a diversification strategy that has increased total ABR by approximately 70% since the end of 2019, with rental income from non-convenience and gas properties now accounting for 28% of total ABR [11] - The management emphasized the importance of a relationship-based sale leaseback strategy to generate continued acquisition opportunities in the convenience and automotive retail sectors [10][12] - The company remains committed to executing its growth and diversification plans while creating value for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management characterized 2024 as a challenging year for transaction markets but expressed confidence in the company's ability to source attractive investment opportunities [6][17] - The company anticipates modest cap rate compression from the 8.3% yields achieved in 2024, driven by larger portfolio transactions [17] - Management revised the AFFO guidance for 2025 to a range of $2.38 to $2.41 per share, factoring in potential rent adjustments and uncollectible rents [27][28] Other Important Information - The company disposed of 31 properties for gross proceeds of approximately $13 million in 2024, including seven properties for $7.5 million in Q4 [19] - The company has a strong capital position with $17 million in cash and over $280 million of capacity on its unsecured revolving credit facility, providing ample resources for future investments [24] Q&A Session Summary Question: Can you elaborate on the Zipps situation? - Management indicated that the seven sites in question were primarily new to industry locations and expressed confidence in re-leasing them without significant capital requirements [30][31] Question: Are there concerns regarding the financial health of other operators? - Management reassured that they maintain regular communication with tenants and are comfortable with their current car wash roster, emphasizing the focus on large, experienced operators [33][34] Question: How will the capital plan be structured moving forward? - The CFO explained that the company plans to use debt proceeds to pay down the revolver first, followed by utilizing equity for acquisitions throughout the year [38] Question: What are the assumptions regarding the potential downtime for the Zipps properties? - Management acknowledged a range of outcomes regarding downtime and rent recovery, emphasizing that they are capturing this variability in their AFFO guidance [42][44] Question: Can you provide more details on the recent portfolio transaction? - Management confirmed that the recent transaction is a direct sale leaseback and expressed intentions to pursue more such transactions in the future [46][47]

Financial Data and Key Metrics Changes - The company raised $5.5 billion in 2024, exceeding its fundraising target of $5 billion, with $300 million from its advisory business and $5.2 billion contributing to its asset base [8][20] - Full year 2024 fee related earnings (FRE) reached $170 million, up 15% from 2023, with FRE per share at $1.12, up 13% [10] - Fourth quarter FRE was $55 million, up 35% from the prior quarter and 18% year-over-year, with FRE per share at $0.36, also up 35% from the third quarter [10] - The company generated $189 million of distributable earnings for the full year, and $89 million in the fourth quarter, with per share values of $1.24 and $0.58 respectively [12][44] Business Line Data and Key Metrics Changes - Performance related earnings (PRE) for the year exceeded $41 million, primarily driven by the sale of the Aguas Pacifico project [11] - The net accrued performance fee balance was $319 million, down 30% due to significant realizations in Infrastructure III and lower marks on publicly traded holdings [13] - The earning assets under management (AUM) rose 38% year-over-year to $33 billion, although it declined 3% sequentially due to dollar appreciation [15][33] Market Data and Key Metrics Changes - Net organic inflows in fee earning AUM in the fourth quarter were $380 million, with positive inflows across all investment verticals except public equities [16] - Approximately 70% of fundraising in 2024 came from local investors investing in local products, a significant increase from virtually nil in 2020 [22] - The company has seen increased demand for credit strategies in Brazil due to high interest rates, while equity-oriented strategies have softened [22][79] Company Strategy and Development Direction - The company aims to achieve a fundraising target of $6 billion in 2025, actively fundraising across various funds and strategies [21] - The strategy focuses on diversifying its business and enhancing growth profiles, with a significant portion of fundraising coming from local investors [20][22] - The company is developing local investment strategies tailored to specific countries in Latin America, including private equity and infrastructure funds [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2025 FRE target of $200 million to $225 million, with an FRE margin between 58% to 60% [42] - The company is well-positioned to thrive amid macroeconomic uncertainties, with Latin America remaining an attractive destination for long-term capital commitments [24][23] - Management highlighted the positive momentum from pension fund reforms in Chile, Colombia, and Mexico, which are expected to increase contributions to pension funds significantly [94][95] Other Important Information - The effective tax rate for 2024 was 6.5%, with expectations to trend towards 10% by 2027 [44] - The company finished the year with approximately $190 million of net debt, with plans to reduce this throughout 2025 [46][82] - A fourth quarter dividend of $0.15 per share was announced, with intentions to repurchase shares in 2025 [47] Q&A Session Summary Question: Clarification on PRE and future distributions - Management confirmed that the sale of Aguas Pacifico was completed, generating approximately $60 million in performance fees, all accounted for in the fourth quarter [56][58] Question: Redemption trends in public equities and credit strategies - Management noted that redemptions in credit strategies were minimal and expected to remain small in 2025, with positive net new money flows anticipated [66][68] Question: Breakdown of the $6 billion fundraising target for 2025 - Management indicated that while they have a well-organized plan, they prefer to maintain flexibility regarding the specific breakdown of the fundraising target [76][78] Question: Impact of Chile's pension reform on inflows - Management highlighted that pension fund reforms across Latin America are expected to significantly increase contributions, benefiting private equity and infrastructure funds [94][95] Question: Expectations on real estate inflows in Brazil - Management acknowledged that high interest rates may negatively impact brick-and-mortar strategies, while security strategies are expected to perform well [110][111]