Summary of BetMGM Second Quarter Business Update Call Company Overview - **Company**: BetMGM - **Industry**: Online Gaming and Sports Betting Key Financial Performance - **Second Quarter Revenue**: $692 million, up 36% year-over-year [3] - **First Half Revenue**: $1.349 billion, up 35% year-over-year [3] - **EBITDA for First Half**: $109 million, with $86 million in the second quarter [3][26] - **iGaming Growth**: 28% year-over-year in the first half, with a strong player acquisition strategy [4] - **Online Sports Betting (OSB) Growth**: 61% year-over-year in the first half [5][10] Strategic Insights - **Increased Guidance**: Full-year net revenue guidance upgraded to at least $2.7 billion, representing at least 28% growth year-over-year [5][28] - **EBITDA Guidance**: Upgraded to at least $150 million, a year-on-year improvement of nearly $400 million [5][30] - **Player Engagement**: Monthly active players grew by 38%, with players engaging 34% more days each month [7][8] Marketing and Player Management - **Efficient Marketing Spend**: Marketing efficiency improved, leading to a 66% flow-through of incremental revenue growth [4][31] - **Player Retention**: Enhanced player management strategies have improved retention and engagement metrics [12][13] - **Omnichannel Strategy**: Leveraging MGM Resorts' customer base to enhance player acquisition and retention [16][17] Product Development and Innovations - **New Game Launches**: Continued investment in exclusive content and partnerships, including new titles from popular franchises [8][9] - **App Improvements**: Significant enhancements in app speed and user experience, with a 40% improvement in app performance [71] Market Dynamics and Future Outlook - **Tax Impacts**: Anticipated tax increases in states like New Jersey and Illinois, with strategies in place to mitigate impacts [30][61] - **Legislative Environment**: Increased momentum for iGaming legislation, with expectations for more states to legalize in the future [89] - **Competitive Landscape**: Monitoring adjacent markets and potential risks from unregulated gaming activities [44][45] Conclusion - **Overall Health**: The business is performing strongly, with sustainable and profitable growth demonstrated through improved EBITDA and revenue metrics [34] - **Future Confidence**: High confidence in achieving $500 million EBITDA in the medium term, supported by operational efficiencies and market expansion [32][34]

Financial Data and Key Metrics Changes - The company reported an EBITDA of $768 million for Marina Bay Sands (MBS), with a forecast of potentially reaching $2.5 billion annually this year, marking a significant performance milestone [5][10] - Mass gaming and slot win reached $843 million, reflecting a 97% growth compared to 2019 and a 40% increase year-over-year [5][10] - Macau's EBITDA was $566 million for the quarter, indicating underperformance in that market [6][9] Business Line Data and Key Metrics Changes - MBS achieved an EBITDA margin of 55.3%, while Macau's EBITDA margin for the portfolio properties was 31.3%, down 80 basis points year-over-year [9][10] - The Londoner is on track to achieve an annualized EBITDA of $1 billion, with a new approach aimed at increasing market share and EBITDA [8][11] Market Data and Key Metrics Changes - Macau's GGR accelerated this quarter, indicating a positive trend despite previous underperformance [8][9] - The VIP segment in Macau saw a year-on-year increase of 26%, while non-rolling and slot win also improved, indicating a healthy market recovery [24][52] Company Strategy and Development Direction - The company is focusing on aggressive customer reinvestment strategies to regain market share in Macau, with a goal of improving EBITDA through targeted reinvestment [7][14] - There is an emphasis on enhancing the customer experience and product offerings, particularly in Singapore, to capitalize on high-value tourism [10][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for improved customer reinvestment in Macau and expressed optimism about future growth potential [17][38] - The company is confident in the long-term prospects of Singapore, citing strong visitation and high customer spending as key drivers [40][45] Other Important Information - The company repurchased $800 million of LVS stock during the quarter and paid a recurring dividend of $0.25 per share [11] - The company is exploring new development opportunities in jurisdictions like Thailand, contingent on regulatory frameworks [92] Q&A Session Summary Question: How is the company planning to turn around its performance in Macau? - Management has implemented a more aggressive customer reinvestment program since late April, with initial positive results observed [14][15] Question: What is driving the recent improvement in Macau's market? - The market saw acceleration from May, driven by increased customer density and a favorable events calendar [24][60] Question: Can the company sustain the high EBITDA levels seen in Singapore? - While the recent performance is impressive, management cautioned against overestimating future results, emphasizing the unpredictable nature of the market [27][29] Question: What is the company's strategy regarding capital allocation in Macau? - The focus remains on returning capital to shareholders, with plans to increase dividends as cash flow improves [20][21] Question: How is the competitive environment in Macau evolving? - The market remains highly competitive, with all operators increasing promotional activities to capture market share [97][100]

Targa's Value Proposition and Growth - Targa is the largest gatherer and processor in the Permian Basin, driving integrated returns through NGL pipeline transportation, fractionation, and LPG exports[9] - The company has experienced significant volume growth, with a +24% CAGR in fractionation volumes and +12% CAGR in LPG export volumes from FY 2019 to YTD 3Q24[12] - Permian natural gas inlet volumes have grown at a +25% CAGR from Q4 2019 to YTD 3Q24[16] - Targa's adjusted EBITDA has grown by +182% since 2019, driven by its integrated NGL business and strong business fundamentals[19] Financial Performance and Shareholder Returns - Management expects to recommend to Targa's Board of Directors an increase to the 2025 quarterly cash common dividend to $4.00 per share annualized for the first quarter of 2025, representing a +33% YoY increase[9, 10] - Targa has repurchased over 202 million shares since October 2020 at a weighted average price of ~$7069[19] - The company's 2024E fee-based volumes in G&P are approximately ~90%[9, 66] - Targa expects to return 40-50% of adjusted cash flow from operations across a multi-year horizon[75] Permian Basin and Infrastructure - Targa has a premier Permian asset footprint with ~88 Bcf/d gross processing capacity across 43 plants[26, 27, 80] - The company is expanding its Permian G&P footprint, with several new plants scheduled to come online between 1Q25 and 3Q26[32, 94] - Targa's Daytona NGL Pipeline has a capacity of 400 MBbl/d and was expected to be in service in 3Q24[95]

Core Insights - BrightSpring Health Services (BTSG) reported strong financial results for Q1 2025, with total revenues increasing by 26% year over year to $2.9 billion and adjusted EBITDA rising by 28% to $131 million, despite facing operational and macroeconomic challenges [3][8] - The company raised its full-year guidance, expecting total revenues between $12 billion and $12.5 billion, which represents a year-over-year growth of 19.1% to 24.1%, and adjusted EBITDA guidance increased to $570 million to $585 million, marking a growth of 23.9% to 27.2% [4][8] Financial Performance - Total revenues for Q1 2025 were $2.9 billion, with Pharmacy Solutions and Provider Services segments growing by 28% and 12% respectively [3][8] - Adjusted EBITDA for the same period was $131 million, supported by operational efficiency initiatives and volume leverage [3][8] Operational Challenges - The company faced a negative impact of $3.7 million on EBITDA due to fewer business days in Q1 2025 compared to Q1 2024 [2] - 10% of the company's revenues are derived from Medicaid, which poses reimbursement risks due to potential federal or state-level cuts [2] - The gross margin was modestly impacted by a revenue mix shift towards the lower-margin specialty pharmacy segment [2] Market Position and Valuation - BrightSpring's shares have gained 114.8% over the past year, significantly outperforming the industry, which saw a decline of 16.2% [7] - The company currently trades at a 12-month forward price-to-earnings ratio of 20.36, compared to the industry's 14.25 [9] Peer Comparison - Option Care Health (OPCH) and Amedisys (AMED) also reported strong financial performances in Q1 2025, with OPCH seeing revenue and margin growth driven by infusion therapy demand, and AMED experiencing consistent growth in hospice and home health services [5][6]

Financial Data and Key Metrics Changes - Fiscal year 2025 saw diluted earnings per share reach $14.64, a 9% increase from the prior year [9] - The company generated a record $547 million in net income and $1.2 billion in EBITDA, marking a 13% increase from the previous year [9] - Total inside sales grew by 10.9% during the year, with inside same-store sales up 2.6% [10] - Total operating expenses increased by 14.5% or $84 million in the fourth quarter, with approximately 12% attributed to unit growth [19] Business Line Data and Key Metrics Changes - Total prepared food and dispensed beverage sales grew by 10.3%, with same-store sales up 3.5% [10] - Total grocery and general merchandise sales increased by 11.2%, with same-store sales up 2.3% [10] - Fuel gross profit rose by 11%, with total fuel gallons sold up 13% [11] Market Data and Key Metrics Changes - Same-store fuel gallons sold increased by 0.1% with a fuel margin of 37.6¢ per gallon [17] - Retail fuel sales rose by $162 million in the fourth quarter, primarily due to a 17.8% increase in total gallons sold [19] Company Strategy and Development Direction - The company aims to open at least 80 stores in fiscal year 2026, contributing to a total of approximately 500 stores over a three-year strategic plan [24] - The strategic plan focuses on accelerating the food business, growing the number of units, and enhancing operational efficiency [27] - The company is committed to improving operating expense management and generating more free cash flow [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's strength and durability, indicating the ability to succeed in various economic climates [12] - The company expects EBITDA to increase between 10% to 12% in fiscal year 2026, with inside same-store sales projected to rise by 2% to 5% [23] - Management acknowledged the impact of external factors, including inflation and consumer behavior, on sales outlook [46][62] Other Important Information - The effective tax rate for the quarter was 23%, compared to 22.4% in the prior year [21] - The company plans to allocate approximately $125 million for share repurchases in fiscal year 2026 [23][88] Q&A Session Summary Question: Fuel margins performance and expectations - Management noted that fuel margins exceeded expectations due to effective pricing management and improved procurement capabilities [34] Question: Guidance and synergies from acquisitions - Management discussed the expected headwinds from acquisitions and the anticipated synergies, particularly in fuel pricing and overhead rationalization [36] Question: Inside sales performance and drivers - Management acknowledged that inside sales fell slightly short of expectations due to a softer start in the fiscal year and adverse weather conditions [54] Question: Impact of illicit vape on sales - Management confirmed that illicit vape has negatively impacted the vape category, but noted growth in nicotine alternatives [59] Question: Consumer behavior and promotional strategies - Management indicated that consumer traffic remains stable, with targeted promotions aimed at different income cohorts [61][63] Question: Operating expenses guidance - Management provided insights into the expected cadence of operating expenses, highlighting the impact of acquisitions on the first half of fiscal year 2026 [66] Question: Share buyback strategy - Management clarified that the planned share buybacks would be funded through operating cash flow, with no additional debt drawn [88]

Summary of BrightSpring Health Services (BTSG) Conference Call Company Overview - **Company**: BrightSpring Health Services (BTSG) - **Industry**: Healthcare, specifically home and community health care and pharmacy services Key Points and Arguments Financial Performance - **Q1 Performance**: The company reported a strong Q1, beating expectations and raising guidance, primarily driven by specialty pharmacy performance [2][4] - **Historical Growth**: The company has achieved a mid-teens CAGR in EBITDA and revenue over nearly a decade, with broad-based growth across service lines [4][5] - **Volume Growth**: Volume growth is supported by quality service across all lines, operational efficiencies, and accretive mergers and acquisitions (M&A) [5][6] Specialty Pharmacy Growth - **Oncology and Rare Diseases**: Specialty pharmacy, particularly in oncology and rare diseases, has seen significant growth, with a reported 30% growth year-over-year for the last three years [9][10] - **Innovation in Therapies**: Continuous innovation in therapies is driving demand, with expectations of 12 to 18 new products entering the market in the next 18 months [13] Service Lines and Market Dynamics - **Home and Community Focus**: BrightSpring aims to be a leading provider in home and community health care, with strong demand for services [6][17] - **Provider Business Growth**: The provider business experienced around 10% year-over-year growth, even with fewer days in the quarter compared to the previous year [7] - **Pharmacy Services**: The pharmacy business is expected to grow in the mid-single digits, with potential for double-digit growth in specific areas like infusion and specialty oncology [25][26] M&A Strategy - **Acquisition Focus**: The company has executed several smaller tuck-in acquisitions and plans to continue this strategy, particularly in home health, hospice, and rehab [15][58] - **Community Living Divestiture**: The divestiture of the community living business is expected to close by the end of the year, which will help improve leverage ratios [54][55] Regulatory Environment - **Impact of Inflation Reduction Act (IRA)**: The IRA has both positive and negative implications for the company, particularly concerning drug pricing and access to medications [35][38] - **Tariffs on Drugs**: Potential tariffs on drugs are being monitored, with the company confident in its supply chain resilience due to a significant portion of drugs being sourced domestically [42][46] Operational Efficiency - **EBITDA Margin Target**: The company targets a 6% EBITDA margin, focusing on lean operations and technology to enhance efficiency across business lines [34] - **Integrated Care Opportunities**: The company is exploring integrated care models that combine various services to improve patient outcomes and reduce hospitalizations [31][33] Future Outlook - **Leverage Reduction**: The company aims to reduce leverage to around three times by the end of the year, supported by cash generation and growth [55][56] - **Market Positioning**: BrightSpring is positioned to leverage its scale and operational capabilities to navigate regulatory changes and market dynamics effectively [50][51] Additional Important Insights - **Quality and Compliance**: The company emphasizes its commitment to quality and compliance, which has resulted in better performance metrics compared to industry averages [22] - **Patient-Centric Approach**: The focus on delivering high-quality, patient-centered services is seen as a key driver for growth and market share [20][21]

Financial Data and Key Metrics Changes - The group-wide adjusted property EBITDA for Q1 2025 was approximately $341 million, with VIP hold adjustments bringing it to approximately $313 million [10] - Operating expenses (OpEx) were reduced to $3.1 million per day in Q1 2025, down from $3.2 million in Q4 2024, with a target to exit Q2 2025 at $3 million per day [10][11] - Available liquidity stood at $3.3 billion, with consolidated cash on hand of approximately $1.2 billion at the end of Q1 2025 [11] Business Line Data and Key Metrics Changes - Mass drop in Macau grew each month during the quarter, reaching record highs at City of Dreams and Studio City, with market share increasing from 14.7% in Q4 2024 to 15.7% in Q1 2025 [5][6] - Studio City property EBITDA increased by 20% quarter-over-quarter, demonstrating the positive impact of recent renovations [7] - City of Dreams Mediterranean and Cyprus achieved a 10% year-over-year growth in property EBITDA for Q1 2025 [8] Market Data and Key Metrics Changes - Property visitation in Macau grew by 30% year-on-year during the May Golden Week [5] - Golden Week visitation was up 40% year-over-year, indicating strong demand and recovery in the market [57] Company Strategy and Development Direction - The company is focused on driving business momentum through high-quality product offerings and strategic marketing [8] - There is an ongoing strategic review of City of Dreams Manila, with potential buyers currently engaged in the process [22] - The company aims to balance capital allocation between share buybacks and debt reduction, with a focus on maximizing shareholder value [12][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum, citing strong performance in April and May, and the successful reopening of House of Dancing Water [5][29] - The management noted that the competitive environment in the Philippines has impacted performance, prompting adjustments in cost structure and marketing [8] - Chinese policy is viewed as a critical factor, with current policies supporting domestic consumption and travel, which are favorable for the company's operations [29] Other Important Information - The company has repurchased approximately $165 million in MLCO ADSs in 2025, taking advantage of low valuations in the equity markets [12] - Full-year CapEx guidance remains unchanged at $415 million, with the completion of Sri Lanka highlighted as a major project [34] Q&A Session Summary Question: Impact of London Legrand opening on City of Dreams - Management reported no significant impact on market share or business from the opening of London Legrand, with strong performance maintained [15][19] Question: Update on strategic review of City of Dreams Manila - The strategic review is ongoing, with potential buyers signing NDAs and working through questions [22] Question: Signs of weakness on the gaming floor - Management indicated no signs of weakness post-Golden Week, with continued strong performance observed [26][32] Question: CapEx guidance for the year - Full-year CapEx guidance remains at $415 million, with the completion of Sri Lanka noted as a key project [34] Question: Clarification on OpEx and its components - OpEx guidance excludes costs related to House of Dancing Water and residency concerts, with a target to reduce to $3 million per day [36][37] Question: Non-gaming spend insights during Golden Week - Retail performance varied, with Studio City performing better in the current environment compared to City of Dreams, which continues to face challenges in high-end luxury retail [59][60]

Financial Data and Key Metrics Changes - The partnership reported adjusted EBITDA of $458 million and distributable cash flow as adjusted of $310 million for Q1 2025, with a strong balance sheet and liquidity [6][9] - The leverage ratio at the end of the quarter was 4.1 times, aligning with the long-term target [7] - A distribution of $0.08 per common unit was declared, representing an increase of just over 1.25% compared to the previous quarter, with a trailing twelve-month coverage ratio of 1.9 times [8][9] Business Line Data and Key Metrics Changes - Fuel Distribution segment adjusted EBITDA was $220 million, with volumes at 2.1 billion gallons, down 3% from the previous quarter but flat year-over-year [12] - Pipeline Systems segment reported adjusted EBITDA of $172 million, with throughput at approximately 1.3 million barrels per day, down from 1.4 million barrels per day in the previous quarter [13] - Terminals segment delivered adjusted EBITDA of $66 million, with throughput increasing to 620,000 barrels per day from around 600,000 barrels per day in the previous quarter [14] Market Data and Key Metrics Changes - The company is expanding its geographic reach through acquisitions, including Parkland Corporation and Tankwit, which will enhance its presence in North America and Europe [4][8][15] - The acquisition of Tankwit, Germany's largest independent storage operator, is expected to close in the second half of 2025 and will be accretive to unitholders in the first year [7][8] Company Strategy and Development Direction - The company aims for an annual distribution growth rate of at least 5%, having increased distributions by approximately 9% since 2022 [9] - The strategy focuses on fuel profit optimization and integration with midstream assets, leveraging existing infrastructure for growth [15][18] - The company emphasizes strong operational execution, expense discipline, and profit optimization to deliver strong returns on capital [18][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 guidance despite potential challenges from inflation and recession [20][22] - The business model is designed to perform well in volatile environments, supported by pipeline and terminal assets that provide stable income [21][22] - The company is proactively managing expenses to remain below operating expense guidance, ensuring continued growth and value creation [23] Other Important Information - The company completed a $1 billion offering of senior notes to improve financial flexibility and extend debt maturity [6][7] - The acquisition of Parkland Corporation is valued at approximately $9.1 billion and is expected to close in the second half of 2025 [4][8] Q&A Session Summary Question: Future capital allocation among regions post Parkland close - Management indicated that capital allocation is evaluated across all segments and geographies, focusing on the best projects rather than specific regional targets [26][27] Question: Right mix between fuel distribution and conventional midstream assets - Management stated that while the portfolio may not always be perfectly balanced, the goal is to maintain a diversified portfolio, with a focus on long-term strength [28][29]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $99 million, reflecting a 4% increase compared to Q1 2024 [20] - Adjusted EBITDA increased approximately 1% from $17.3 million to $17.5 million in Q1 2025 [20] - Adjusted EBITDA margin was 17.7%, relatively flat compared to the previous year [21] - Gross margins decreased to 64.2% from 64.6% year over year due to lower revenue from higher margin products [22] Business Line Data and Key Metrics Changes - Strength graft revenues grew 19% on a constant currency basis in Q1 2025 [8] - On X revenue increased by 11% year over year on a constant currency basis [11] - BioGlue revenues grew 9% on a constant currency basis [12] - Tissue processing revenues declined 23% year over year due to the backlog caused by a cybersecurity incident [12] Market Data and Key Metrics Changes - Latin America and Asia Pacific saw constant currency revenue growth of 268% and 14% respectively in Q1 2025 [13] - North America revenues declined by 6% compared to Q1 2024 [21] - EMEA revenues increased by 14% year over year [21] Company Strategy and Development Direction - The company is focused on ramping up On X supply and clearing the tissue processing backlog, with expectations to be fully caught up by the end of Q3 2025 [7][13] - The ongoing launch of AMDS in the U.S. is a key growth driver, with approximately 150 facilities actively seeking approvals [10][11] - The company aims to leverage positive clinical data to expand market share for On X valves, particularly among younger patients [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth and twice that rate for EBITDA in the future [19][29] - The company raised its full-year 2025 revenue guidance to a constant currency growth range of 11% to 14% [24] - Management noted that the impact of the cybersecurity incident is being resolved, with expectations for a return to normalcy in operations [6][29] Other Important Information - The company incurred approximately $4.7 million in Q1 related to the cybersecurity incident, which is excluded from adjusted EBITDA [22] - The net leverage ratio improved to 4.0 from 4.5 year over year [24] - The company does not anticipate the need to raise additional capital to fund its operations in the foreseeable future [22] Q&A Session Summary Question: Contribution of AMDS to growth and onboarding of facilities - Management indicated that AMDS contributed to the strong growth but did not break out specific numbers. They are encouraged by the reception from the clinical community and the onboarding process is progressing well [36][38] Question: Expectations for tissue growth recovery - Management expects to return to mid-single-digit growth for tissue processing by the end of the year, with the backlog being cleared in Q2 and Q3 [40][42] Question: Cash flow expectations for the year - Management expects to be free cash flow positive for the year, despite Q1 being seasonally high in expenses [54][56] Question: Growth rates for On X and stent grafts - Management expects On X to continue double-digit growth and stent grafts to grow at a mid-teens rate, with AMDS expected to improve overall growth rates [64][66] Question: Timing for acquiring Endospan - The option to acquire Endospan will trigger upon FDA approval, expected in the second half of 2026, with a decision required within 90 days of approval [72][74] Question: Feedback on Nexus data and market opportunity - Management expressed optimism about the Nexus data and its potential market impact, noting that the mortality benefits could lead to increased adoption [80][82]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenues of approximately $169 million, a decrease of 2% compared to Q4 2023, and adjusted EBITDA of approximately $18 million, down 18% year-over-year [21] - For the full year 2024, adjusted revenues were approximately $563 million, a decrease of about 3% from 2023, with adjusted EBITDA at $42 million compared to $53 million in the prior period [22][23] Business Line Data and Key Metrics Changes - The company is focusing on improving its balance sheet, reporting inventories at approximately $180 million, which included write-downs for obsolescence and slow-moving items [22] - The average inventory turns for 2024 ended at 1.67%, with a target to push this metric towards about 2 turns by year-end 2025 [24] Market Data and Key Metrics Changes - The agricultural economy is showing signs of gradual improvement, with customers indicating a slight improvement in sentiment since the low point in summer 2024, although they remain conservative in buying patterns [16] - The company anticipates that 2025 will be better than 2024, with an adjusted EBITDA target range of $45 million to $52 million and expected sales between $565 million and $585 million [18] Company Strategy and Development Direction - The new CEO emphasized the need to improve margins, rightsize the balance sheet, and return to growth, with a focus on simplifying operations and prioritizing key tasks [9][14] - The company plans to allocate the bulk of its free cash flow towards debt repayment as part of its transformation strategy [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while the agricultural economy is improving, farmers are cautious due to high capital costs and potential tariffs, leading to a just-in-time purchasing approach [16][53] - The CEO expressed confidence that 2025 will show improvement over 2024, contingent on resolving tariff issues and improving market conditions [54] Other Important Information - The company recorded $118 million in nonrecurring charges for 2024, primarily related to asset impairments and transformation projects [27] - There is a delay in filing the audited 10-K due to complex assessments related to write-downs, with plans to file a 12b-25 with the SEC [29] Q&A Session Summary Question: Timing of the financial filing - Management indicated that the filing would occur within weeks, not months, and the delay was due to complex write-down assessments rather than any surprising issues [40][41] Question: Working capital expectations for 2025 - The focus remains on inventory as the primary area for working capital improvement, with a refreshed SIOP model to enhance efficiency [45] Question: Addressing organizational complexity - The CEO discussed steps taken to simplify the organization, including an ERP system implementation and restructuring for accountability [47][48] Question: Impact of tariffs on farmer buying patterns - Management noted that uncertainty from tariffs is causing farmers to be cautious, affecting their purchasing decisions [53] Question: Confidence in 2025 guidance - The CEO expressed confidence in the guidance, with the lower end reflecting slower industry conditions and the upper end reflecting positive influences on purchasing [69] Question: Transformation costs for 2025 - Projected transformation costs for 2025 are around $5 million, significantly lower than in 2024, with expected benefits from commercial activities and logistics [72]