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]