Financial Data and Key Metrics Changes - The first quarter adjusted EBITDA was $57 million, and adjusted FFO was $0.21 per diluted share, reflecting a 17% increase from the prior year [25] - Comparable rooms RevPAR increased by 3.8% in the first quarter, while total RevPAR grew by 4.3%, contributing to an 80 basis point expansion in hotel margins [24] - The company repurchased $21 million of stock at a blended repurchase price of $8.9 per share, equating to a compelling multiple on earnings [15][16] Business Line Data and Key Metrics Changes - The Andaz Miami Beach opened on May 3, 2025, and is expected to contribute significantly to earnings growth in the coming years [6][7] - The recently renovated Marriott Long Beach Downtown posted a solid 145% increase in RevPAR [12] - Group production at Wailea was up nearly 20% in the first quarter relative to the prior year, indicating optimism for future growth [12] Market Data and Key Metrics Changes - Washington DC saw a 24% increase in RevPAR due to the inauguration, while New Orleans hotels grew RevPAR by 25% driven by the Super Bowl [8][9] - San Francisco generated RevPAR growth of 9% due to increased commercial activity [9] - The company noted softer performance in Wailea, but expects recovery as the Kaanapali submarket normalizes [11][12] Company Strategy and Development Direction - The company is focused on a balanced and nimble approach to capital allocation, utilizing a strong balance sheet and future asset recycling to drive growth in FFO and NAV per share [7][17] - Capital investment activity for the year is expected to be in the range of $80 to $100 million, with ongoing renovations and upgrades across various properties [21] - The company aims to recycle capital and return value to shareholders through share repurchases and potential asset sales [16][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic uncertainty and declining business and consumer confidence, leading to a more cautious outlook for the year [14] - The updated outlook reflects expectations of total portfolio RevPAR growth ranging from 4% to 7% compared to 2024, with adjusted EBITDAre estimated between $235 million to $260 million [27][28] - Management remains optimistic about the long-term recovery in markets like San Francisco and Wailea, despite short-term challenges [10][56] Other Important Information - The company has nearly $150 million in total cash and cash equivalents, equating to approximately $650 million in total liquidity [26] - The Board of Directors authorized a $0.09 per share common dividend for the second quarter [29] Q&A Session Summary Question: Can you discuss the underwriting trajectory for the Andaz Miami Beach? - Management expressed confidence in the Andaz's market positioning and expected EBITDA of $6 to $7 million for the resort this year, primarily in the fourth quarter [34][37] Question: Can you elaborate on the updated outlook and changes in Wailea? - The revised expectation for Andaz is $6 million to $7 million, with a $4 million forecast revision for Wailea due to a challenging operating environment [43][44] Question: What held back performance in Maui and how does it compare to peers? - Management noted that Wailea's luxury market is recovering, and as Kaanapali normalizes, they expect to benefit from increased demand [50][52] Question: What is the strategy regarding non-core assets and potential sales? - Management indicated a focus on recycling capital and remains open to divesting non-core assets when appropriate, with a current inclination to repurchase shares [62][66] Question: What are the expectations for luxury assets in the current market? - Management highlighted ongoing conversations regarding luxury assets, noting that while transaction volumes are slower, they remain focused on capital recycling [74][75]

Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% over 2024, while total RevPAR increased by 1.6% [4] - Hotel adjusted EBITDA margins increased by 54 basis points, with hotel adjusted EBITDA in Q1 at $61.3 million, reflecting a 2.2% growth over 2024 [9] - Adjusted FFO was $0.19 per share, an increase of $0.01 or 5.6% over 2024 [10] - Free cash flow per share increased by 10% to $0.63 per share over the prior four-quarter period [10] Business Line Data and Key Metrics Changes - Urban portfolio RevPAR grew by 5%, driven by group and business transient segments, with room revenues up 3.1% in January, 2.6% in February, and 5.4% in March [4] - Food and beverage revenue at urban hotels declined by 3.3% year over year, but excluding the Chicago Marriott, it increased by 5.5% [5] - Resort portfolio comparable RevPAR declined by 2.1% over 2024, with total revenues slightly up in January and February but down 4.3% in March [6][7] - Group room revenues increased by 10.4% over last year on a 5.2% increase in room nights [8] Market Data and Key Metrics Changes - Florida assets saw mid-single-digit revenue declines, with RevPAR down 5.9% and total RevPAR down 4% [7] - Outside of Florida, RevPAR increased by 1.7% and total RevPAR increased by 2.9% [7] - Preliminary April RevPAR showed better than 2% growth [30] Company Strategy and Development Direction - The company is focused on adding groups to resorts to preserve pricing and improve profitability [8] - Plans to refinance maturing loans through a combination of corporate debt issuance and recasting the corporate credit facility [12] - The company is pursuing opportunities to dispose of non-strategic assets while recycling proceeds into attractive investment alternatives [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the unsettled macroeconomic environment has led to softer closure rates for group bookings [9] - The long-term secular drivers for US resorts remain strong, but near-term performance could be soft [20] - The company expects economic anxiety to settle as 2025 progresses, with a focus on increasing earnings per share [27] - Revised full-year 2025 RevPAR outlook to a range of -1% to +1% growth, reflecting a cautious stance on group bookings [23] Other Important Information - The company intends to continue paying a quarterly dividend of $0.08 per share in 2025 [10] - Share repurchases totaled approximately $16 million or 2.1 million shares at an average price of $7.85 [11] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Preliminary April is showing a little better than 2% growth [30] Question: Renovation project costs and tariffs - Costs depend on the type of renovations; efforts are being made to secure materials before tariffs are reinstated [31][32] Question: Group conversion profile and average group size - The average hotel is about 200 to 250 rooms, with groups running the gamut from associations to corporate [36][37] Question: Group pacing in specific markets - Denver and Salt Lake are showing significant strength in group bookings [41] Question: Holes in group bookings for the rest of the year - The biggest holes are due to difficult comps in Chicago and Boston [48] Question: Average booking window for groups - Smaller groups tend to book 4 to 6 months out, while larger groups book 8 to 12 months out [53] Question: Competitive supply growth and developer behavior - Approximately 40% to 50% of markets have little to no supply growth due to anti-development stances [82]

Financial Data and Key Metrics Changes - The company reported total revenue of $326.6 million for Q1 2025, marking a 4.9% increase compared to Q1 2024, and the highest quarterly revenue on record [15][16] - Operating margin for the quarter was 17.2%, with an adjusted operating margin of 18.3%, expected to be among the highest in the industry [15][16] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15][16] Business Line Data and Key Metrics Changes - Revenue for the passenger segment, including scheduled service and charter businesses, grew by 4.1% year over year [16] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [17] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours [18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [16] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 [10][17] - Close-in fares accelerated into April, indicating positive demand for the summer season [10][11] Company Strategy and Development Direction - The company aims to leverage its diversified business model to deliver industry-leading profitability throughout all cycles [5][8] - Execution on cargo expansion is ongoing, with plans to have all eight additional aircraft in service by the end of summer 2025 [9] - The company plans to allocate pilot resources to support cargo growth, temporarily reducing scheduled service capacity [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming during industry stress due to the strength of the diversified model and reliable demand in the home market [8] - The company anticipates a doubling of cargo revenue by September 2025, driven by the addition of new aircraft and increased unit revenue [9][66] - Management noted that the leisure market needs to shrink in the U.S. to regain pricing power, potentially through reorganizations or M&A activity [29] Other Important Information - The company has a total liquidity of $227.1 million at the end of Q1 2025 and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20][21] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization from the board [21][22] - The company was awarded Air Transport World's airline leader of the year for 2025 [13] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% annually, but total system block hour growth will be below that as the focus shifts to cargo [25] Question: What do you think other carriers will need to do regarding peak versus off-peak flying? - Management believes the leisure space needs to shrink in the U.S. to regain pricing power, potentially through reorganizations or M&A [29] Question: Can you elaborate on demand trends through the quarter and into April? - Management reported strong performance in January, but load factor was missed in February and March due to high fares [36] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, not specifically for opportunistic purposes [41][44] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-brand partnership, which is expected to improve revenue share starting in 2026 [52][54] Question: How should we think about the cargo revenue ramp this year and next? - Management expects a doubling of cargo revenue by September, with a gradual ramp-up as new aircraft are delivered [66] Question: Have you seen any share shift due to changes in product offerings from low-cost carriers? - Management believes their product is well-positioned and does not anticipate significant share shifts [93] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management emphasized the importance of maintaining operational flexibility and noted that liquidity is not as sensitive due to contracted revenue [99][100]

Financial Data and Key Metrics Changes - The company reported total revenue of $326.6 million for Q1 2025, marking a 4.9% increase compared to Q1 2024, and the highest quarterly revenue on record [15][16] - Operating margin for the quarter was 17.2%, with an adjusted operating margin of 18.3%, expected to be among the highest in the industry [15][16] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15][16] Business Line Data and Key Metrics Changes - Revenue for the passenger segment, including scheduled service and charter businesses, grew by 4.1% year over year [16] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [17] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours [18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [16] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 [17] - Close-in fares accelerated into April, indicating positive demand for the summer season [10][11] Company Strategy and Development Direction - The company aims to leverage its diversified business model to deliver industry-leading profitability throughout all cycles [5][6] - Execution on cargo expansion is ongoing, with plans to have all eight additional aircraft in service by the end of summer 2025 [9] - The company is focusing on reallocating resources to maximize profitability and minimize earnings volatility [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming during times of stress due to the strength of the diversified model and reliable demand in the home market [8] - The company anticipates a temporary drawdown in scheduled service to absorb cargo growth, which is expected to provide a tailwind for scheduled service unit revenues [10] - Management noted that the leisure space in the U.S. may need to shrink for pricing power to return, potentially through reorganizations or M&A activity [29] Other Important Information - The company has a total liquidity of $227.1 million at the end of Q1 2025 and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20][21] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization from the board [21][22] - The company was awarded Air Transport World's airline leader of the year for 2025 [13] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% a year, but total system block hour growth will be below that as they expand into cargo [25] Question: What do you think other carriers will need to do regarding peak versus off-peak flying? - Management believes the leisure space needs to shrink in the U.S. for pricing power to return, potentially through reorganizations or M&A activity [29] Question: Can you elaborate on demand through the quarter and into April? - Management reported strong performance in January, but load factor missed expectations in February and March due to high fares [36] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, not specifically for opportunistic purposes [41][46] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-brand partnership, which is expected to improve revenue share, but benefits will not hit the P&L until 2026 [52][54] Question: How should we think about the cargo revenue ramp this year and next? - Management expects cargo revenue to double by September, with a significant increase in revenue per block hour [66][68] Question: Have you seen any share shift due to changes in product offerings from low-cost carriers? - Management believes they have a strong product and brand presence, which positions them well against competitors [95] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management stated that they are comfortable with their current liquidity position and have significant headroom on the balance sheet for potential opportunities [100][102]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $326.6 million, marking a 4.9% increase compared to Q1 2024, and is the highest quarterly revenue on record for the company [14][15] - Operating margin for the quarter was 17.2%, with adjusted operating margin at 18.3%, expected to be among the highest in the industry [15] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15] - Total operating expenses grew by 5.5% on a 5.8% increase in total block hours, with adjusted CASM increasing by 3.5% year-over-year [18][20] Business Line Data and Key Metrics Changes - Passenger segment revenue, including scheduled service and charter businesses, grew by 4.1% year-over-year [15] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [15] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours, with revenue per block hour up by 18.9% [17][18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [15] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 as resources are allocated to cargo growth [15][19] Company Strategy and Development Direction - The company aims to leverage its diversified business model to maintain industry-leading profitability through various cycles [4][7] - Plans to expand the cargo fleet with eight additional aircraft, with three already inducted into service [7][8] - The company anticipates cargo revenue to double by September 2025, with two-thirds of flights under committed contracts [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming competitors due to the strength of the diversified model and reliable demand in the home market [7] - There is an expectation of margin expansion in the latter half of the year as cargo growth is absorbed and passenger fleet utilization is improved [102] - Management noted that the leisure market may need to consolidate to regain pricing power [27] Other Important Information - The company has a total liquidity of $227.1 million and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization [20][21] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% annually, but total system block hour growth will be below that as cargo expands [23][24] Question: What do you think other carriers will need to do regarding off-peak flying? - Management suggested that the leisure space in the US needs to shrink to regain pricing power, potentially through reorganizations or M&A activity [27] Question: Can you elaborate on demand trends through the quarter? - Management reported strong performance in January, but load factors were missed in February and March due to high fares and slight demand weakening [30][32] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, with the previous revolver being insufficient for current revenue levels [39][41] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-branding agreement, which is expected to improve revenue share, although significant benefits will not be realized until 2026 [49][51] Question: How should we think about the cargo revenue ramp this year and next? - Management expects cargo revenue to double by September, with a gradual ramp-up as additional aircraft are inducted [63][65] Question: Have you seen any share shift due to changes in low-cost carriers' offerings? - Management believes their product remains strong and well-positioned, with no immediate changes planned [91][92] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management emphasized the importance of maintaining operational flexibility and protecting the unique business model, with current liquidity levels being comfortable [96][98]

Core Viewpoint - Alphabet's first-quarter earnings report revealed better-than-expected results, providing a positive outlook for the remainder of the year despite concerns over tariffs [1][5]. Group 1: Financial Performance - The company announced a $70 billion share repurchase authorization, which is significant and will differ from previous repurchase plans due to current market conditions [2]. - Alphabet's stock is currently priced at 17.9 times trailing earnings and 16.8 times forward earnings, making it attractive compared to the S&P 500's 22.1 times trailing and 20.5 times forward earnings [9]. Group 2: Advertising Revenue Concerns - Alphabet's primary revenue source is advertising, which is vulnerable during economic downturns, leading to investor pessimism [3][10]. - There are concerns regarding the impact of tariffs on Alphabet's business, particularly with discount Chinese retailers, although management indicated it would only be a "slight" headwind [4]. Group 3: Market Sentiment and Stock Dynamics - Following the earnings release, the stock initially rose but then experienced a slight decline, indicating mixed market sentiment regarding Alphabet's future performance [5]. - The $70 billion share repurchase program is seen as a potential catalyst for stock price improvement, especially given the current low stock price [6][11]. Group 4: Legal Challenges - Ongoing legal challenges from the Department of Justice regarding an alleged illegal monopoly could impact investor sentiment and stock performance, with potential resolutions still years away [10][11]. - The legal situation contributes to the current low stock price, which may enhance the effectiveness of the share repurchase program [11]. Group 5: Future Outlook - Despite potential headwinds, the market has already priced in significant pessimism, suggesting that now may be a strong buying opportunity for long-term investors willing to endure short-term volatility [12][13].

Core Viewpoint - The Company has successfully redeemed $20.0 million of high-cost subordinated notes, which is expected to enhance its net interest margin and create opportunities for future share repurchases [1][2]. Financial Summary - The subordinated notes were originally issued on September 20, 2018, with a fixed-to-floating rate of 5.95%, and prior to redemption, they yielded 7.66% [1]. - The Bank funded the redemption through a $19.0 million dividend, supported by short-term wholesale borrowings at a rate of 4.48% [1]. - As of March 31, 2025, the Bank maintained leverage and total risk-based capital ratios above 9.0% and 12.0%, respectively, which continued post-redemption as of April 30, 2025 [1]. Strategic Initiatives - The redemption of the subordinated notes is part of the Company's strategic initiatives aimed at reducing high-cost debt and potentially repurchasing common shares in the future [2]. - The Company anticipates building excess capital, which would support the share repurchase strategy if deemed accretive to earnings per share [2]. Company Overview - The Bank operates as a community bank in Jeffersonville, Indiana, with fifteen depository branches in Southern Indiana and two national lending programs [2]. - The Bank is recognized for its lending programs and aims to be the best community bank, contributing to its success [2].

Financial Data and Key Metrics Changes - The first quarter total sales were $200 million, up nearly 9% year-over-year, with Eco Services and Advanced Silicas each up 1%, and sales for the Zeolyst joint venture up 60% [23][30] - Adjusted EBITDA for the first quarter was $39 million, primarily driven by higher volume in the Zeolyst joint venture, but lower earnings in Eco Services due to higher planned turnaround costs [23][26] - Adjusted free cash flow for the first quarter was a use of $13 million, with expectations to generate adjusted free cash flow of $60 million to $80 million for the full year [28][30] Business Line Data and Key Metrics Changes - Eco Services sales were $143 million, up 1% compared to the prior year, with adjusted EBITDA of $29 million, down from $42 million due to higher manufacturing costs and lower sales volume related to turnaround activity [26][27] - Advanced Silicas sales were $19 million, with higher sales of niche custom catalysts offset by lower sales of advanced silicas used in polyethylene production [27] - The Zeolyst joint venture saw a significant increase in sales, contributing to the overall sales growth for the quarter [23][27] Market Data and Key Metrics Changes - The Ecoservices segment accounts for approximately 75% of total sales, with less than 5% representing sales to Mexico and Canada, indicating a U.S.-centric business model [10][11] - The company anticipates higher sales of virgin sulfuric acid in the second half of the year due to increased mining demand driven by high global copper demand [15][16] - The company expects stable gasoline demand and high refinery utilization to support regeneration services [14] Company Strategy and Development Direction - The company is focused on opportunistic share repurchases, believing that the current valuation does not reflect the intrinsic value of the business [8][9] - The acquisition of Cornerstone sulfuric acid assets is expected to enhance the Ecoservices network and provide significant capacity additions [39][40] - The company is maintaining a flexible capital allocation strategy while prioritizing leverage reduction [9][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential weaker demand in industrial end uses due to macroeconomic conditions and tariff impacts [30][38] - The company maintains a positive long-term outlook for demand fundamentals across most end uses, despite short-term uncertainties [36][38] - The guidance for full-year adjusted EBITDA remains unchanged, expected to be in the range of $238 million to $258 million [31][38] Other Important Information - The company expects to close the acquisition of Cornerstone in the second quarter, with incremental adjusted EBITDA contributions expected to be more material beginning in 2026 [33][40] - The company has observed strong demand for hydrocracking catalysts, which may offset any softer sales in advanced silicas [20][38] Q&A Session Summary Question: Have you seen a slowdown tied to tariffs in polyethylene catalysts? - Management indicated that there has been no observed slowdown related to tariffs or macroeconomic confusion to date [45][46] Question: What are the expectations for sulfuric pricing going forward? - Management noted that sulfur prices are being driven by U.S. refining turnaround work, and the Eco Services business is largely contracted, allowing for price pass-throughs [53][54] Question: What are the synergy potentials from the Cornerstone acquisition? - Management highlighted networking synergies and operational expertise that would enhance the sulfuric acid network, expecting to capture these synergies quickly [67][68] Question: Are there revenue synergies expected from the acquisition? - Management stated that while there are no direct revenue synergies, there will be marketing and networking synergies that could enhance service to existing customers [71][72]

Financial Data and Key Metrics Changes - The first quarter total sales were $200 million, up nearly 9% year-over-year, with Eco Services and Advanced Silicas each up 1%, and sales for the Zeolyst joint venture up 60% [22][24][30] - Adjusted EBITDA for the first quarter was $39 million, primarily driven by higher volume in the Zeolyst joint venture, but lower earnings in Eco Services due to higher planned turnaround costs [22][24] - Adjusted free cash flow for the first quarter was a use of $13 million, with expectations to generate adjusted free cash flow of $60 million to $80 million for the full year [27][30] Business Line Data and Key Metrics Changes - Eco Services sales were $143 million, up 1% compared to the prior year, with adjusted EBITDA of $29 million, down from $42 million due to higher manufacturing costs and lower sales volume related to turnaround activity [24][25] - Advanced Silicas sales were $19 million, with higher sales of niche custom catalysts offset by lower sales of advanced silicas used in polyethylene production [25][30] - The Zeolyst joint venture saw a significant increase in sales, contributing to the overall sales growth for the company [22][25] Market Data and Key Metrics Changes - The Ecoservices segment accounts for approximately 75% of total sales, with minimal exposure to tariffs due to its U.S.-centric and service-oriented nature [10][12] - The company anticipates higher sales of virgin sulfuric acid in the second half of the year driven by increased mining demand [15][30] - The outlook for polyethylene catalyst sales remains cautious due to potential tariff impacts and macroeconomic conditions [19][30] Company Strategy and Development Direction - The company is focused on opportunistic share repurchases, believing that its current valuation does not reflect the intrinsic value of the business [7][9] - The acquisition of Cornerstone sulfuric acid assets is expected to enhance the Ecoservices network and provide additional capacity [37][56] - The strategic review of the Advanced Materials and Catalysts segment is ongoing, with expectations to run through midyear [38] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential weaker demand in industrial end uses due to macroeconomic conditions and tariff impacts [29][35] - The company maintains its full-year guidance for adjusted EBITDA in the range of $238 million to $258 million, despite the challenges [30][36] - There is confidence in the long-term demand fundamentals for the majority of end uses served by the company [35][36] Other Important Information - The company expects to close the acquisition of Cornerstone in the second quarter, with incremental adjusted EBITDA contributions anticipated to be more material beginning in 2026 [31][37] - The company has a strong order book for hydrocracking catalyst sales, which may offset any softer sales in advanced silicas [20][36] Q&A Session Summary Question: Has there been a slowdown in polyethylene catalyst sales due to tariffs? - Management indicated that there has not been any observed slowdown related to tariffs, but they are monitoring the situation closely [43][44] Question: What are the expectations for sulfuric acid pricing? - Management noted that sulfur prices have increased due to U.S. refining turnaround work, and they expect to pass these costs through to customers [51][53] Question: What are the synergy potentials from the Cornerstone acquisition? - Management highlighted that the acquisition would enhance the sulfuric acid network, providing operational efficiencies and the ability to service customers more reliably [55][66] Question: How does the company view the demand outlook for 2025? - Management expects the demand to be back-end loaded for 2025, with strong fundamentals in their end markets despite macroeconomic uncertainties [60][62]

Core Insights - Civeo Corporation reported a negative free cash flow of ($13.5M) in Q1 2025, a decline from $7.2M in the same period last year, primarily due to negative operating cash flow of ($8.4M) and capital expenditures of $5.3M [1][5] - The company reaffirmed its long-term free cash flow generation confidence, supported by a capital-light model and a high mix of recurring asset-light services revenue [1] - Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of free cash flow to complete the program, having repurchased 153,000 shares for approximately $3.3M in the quarter [1][5] Financial Performance - Civeo reported revenues of $144.0M and a net loss of $9.8M, with an Adjusted EBITDA of $12.7M [5] - The company revised its 2025 guidance, projecting revenues between $620M and $650M and Adjusted EBITDA of $75M to $85M [5] - Net debt increased by $20.9M quarter-over-quarter to $59.0M, resulting in a net leverage ratio of 0.8x [1]