Financial Data and Key Metrics Changes - Fully diluted FFO per share excluding non-recurring items grew to $0.65 from $0.64 [6] - Fully diluted FAD per share excluding non-recurring items increased to $0.70 from $0.67 [6] - Total liquidity is approximately $681 million [7] - Debt to annualized adjusted EBITDA for real estate is 4.3 times [7] - Annualized adjusted fixed charge coverage ratio improved to 5.0 times from 4.7 times [7] - Full year 2025 guidance for core FFO per share is between $2.65 and $2.69 [8] Business Line Data and Key Metrics Changes - SHOP portfolio now totals $176 million in gross book value through the conversion of 13 properties from triple net leases [3] - SHOP NOI for 2025 is projected in the range of $9.4 million to $10.3 million [10] - Revenue from market-based rent resets is expected to be $5.1 million, up from guidance of $4.4 million [11][12] - The company expects to collect approximately $8.3 million of GAAP rent from properties currently under sale [12] Market Data and Key Metrics Changes - The Anthem portfolio is currently 81% occupied [9] - The company expects occupancy to improve as it enters the key selling season [46] - The occupancy for the SHOP portfolio is projected at 85% for 2025 [25] Company Strategy and Development Direction - The company is focused on growth through the RIDEA strategy and expanding its SHOP portfolio [13] - The investment pipeline stands at $300 million, with approximately 50% representing RIDEA opportunities [4] - The company aims to complement its RIDEA strategy with investments in traditional and structured finance transactions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, emphasizing a strong investment pipeline and strategic partnerships [5][14] - The company is optimistic about occupancy recovery in the Anthem portfolio and expects continued improvement [46] - Management highlighted the importance of operator diversification and maintaining a balanced portfolio [30] Other Important Information - The company appointed a new Chief Investment Officer, enhancing its leadership team [4] - The company has no plans to convert any properties in its triple net portfolio at this time, focusing instead on organic growth [36] Q&A Session Summary Question: Guidance regarding ALG's asset purchase option and financing - Management indicated that ALG is still working on financing in a volatile rate environment, but guidance assumes they will continue to pay full rent [17] Question: Details on the lease termination payment to New Perspective - The lease termination payment was made to reward New Perspective for value creation and to facilitate growth in the SHOP portfolio [20] Question: Future SHOP conversions from triple net leases - Management noted that while there may be opportunities for some conversions, the focus is primarily on external growth through SHOP [21] Question: SHOP asset NOI projections and growth - The projected SHOP NOI for 2025 is $15.2 million, reflecting growth from occupancy improvements [26] Question: Performance of the Anthem portfolio - Management acknowledged a dip in occupancy due to clinical discharges but expects recovery as the key selling season begins [46] Question: Financial performance of ALG and rent deferrals - No rent deferrals were given this quarter, and ALG's occupancy has increased due to improved lead generation [57] Question: Other leases with market-based resets - Management confirmed that there are 14 properties with market-based resets, which are expected to increase as occupancy improves [60]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $417 million, a decrease of 2.4% compared to $427 million in the same period last year, primarily driven by unfavorable foreign exchange and lower volumes [16][26] - Adjusted EBITDA was $82 million, or 19.6%, compared to $80 million, or 18.8% in the prior period, excluding $9 million of one-time standalone costs [17][28] - Adjusted earnings per share was $0.63 in Q1 2025, up from $0.60 last year [29] - Adjusted free cash flow was $20 million, compared to an outflow of $13 million in the prior year [29] Business Line Data and Key Metrics Changes - The company continues to focus on aftermarket sales, which account for over 80% of revenue, demonstrating resilience despite market challenges [11] - The first fit market is expected to decline, with heavy-duty market projections down 5% to 15% and medium-duty down 10% to 20% [23][24] Market Data and Key Metrics Changes - The overall impact on end markets remains unclear due to economic uncertainty and tariff implications [18] - The company expects total revenue for 2025 to remain flat to up 4% compared to the prior year, with global sales projected between $1.67 billion and $1.735 billion [24][25] Company Strategy and Development Direction - The company is executing a four-pillar growth strategy focusing on first fit growth, aftermarket expansion, supply chain transformation, and industrial filtration market expansion [11][12][15] - The company is actively pursuing inorganic growth opportunities in the industrial filtration sector, although M&A activity is currently soft due to economic uncertainty [15][38] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving tariff environment and adapting quickly, although visibility remains limited [19][20] - The company anticipates pricing actions to offset input costs and expects a revenue increase of approximately 3.2% year-over-year from pricing adjustments [21][22] Other Important Information - The company has repurchased $10 million of stock in Q1 2025, totaling $30 million since the program's announcement [6] - The effective tax rate for Q1 2025 was 21.3%, down from 22% last year due to a change in the mix of earnings among tax jurisdictions [30] Q&A Session Summary Question: Potential manufacturing transitions due to tariffs - Management indicated that while they are monitoring the tariff situation closely, no long-term manufacturing changes are currently planned [34][35] Question: M&A pipeline activity in a challenging environment - Management acknowledged that while the market is fragmented, the degree of difficulty in finding targets has increased due to uncertainty, but they remain focused on building a strong M&A pipeline [38] Question: Revenue outlook amidst currency and market changes - Management confirmed that the revenue outlook remains near the midpoint of their guidance, despite softening market conditions [42][44] Question: Pricing expectations for the year - Management expects pricing to ramp up throughout the year, with a gradual increase leading to the anticipated 3.2% for the full year [49][50] Question: Impact of potential EPA regulation rollbacks - Management is closely monitoring the EPA's review of regulations and believes they are well-positioned to support customers regardless of regulatory changes [73][75] Question: Shipping route reconfigurations to mitigate tariffs - Management confirmed that they have already enacted some shipping route adjustments to mitigate tariff impacts and will continue to explore further options [81][82]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $417 million, a decrease of 2.4% compared to $427 million in the same period last year, primarily due to unfavorable foreign exchange and lower volumes [15][24] - Adjusted EBITDA was $82 million, or 19.6%, compared to $80 million, or 18.8% in the prior period, reflecting improved operational efficiency [16][25] - Adjusted earnings per share increased to $0.63 from $0.60 last year, while adjusted free cash flow improved to $20 million from an outflow of $13 million in the prior year [26] Business Line Data and Key Metrics Changes - The company continues to focus on aftermarket sales, which account for over 80% of revenue, demonstrating resilience despite market challenges [9] - The first fit market is expected to decline, with heavy-duty market projections down 5% to 15% and medium-duty down 10% to 20% [21][22] Market Data and Key Metrics Changes - The overall market outlook remains uncertain, with expectations for total company revenue in 2025 to be flat to up 4% compared to the prior year, with global sales projected between $1.67 billion and $1.735 billion [22] - The impact of tariffs is estimated to contribute approximately 1.5% to pricing, with additional pricing actions expected to offset input costs [19][20] Company Strategy and Development Direction - The company is executing a four-pillar growth strategy focused on growing share in first fit, accelerating aftermarket growth, transforming the supply chain, and expanding into industrial filtration through acquisitions [10][12][14] - The operational separation from Cummins is progressing, with expectations to complete remaining activities in 2025 [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving tariff environment, although the overall impact on end markets remains unclear [16][17] - The company anticipates a flat year-over-year performance in aftermarket revenue, with pricing expected to provide a 3.2% increase [19][20] Other Important Information - The company has repurchased $10 million of stock in Q1 2025, totaling $30 million since the program's announcement, with $120 million remaining under board authorization [5] - The effective tax rate for Q1 2025 was 21.3%, a decrease from 22% in the previous year, driven by a change in the mix of earnings among tax jurisdictions [27] Q&A Session Summary Question: Potential manufacturing transitions due to tariffs - Management indicated that while they are monitoring the tariff situation closely, no long-term manufacturing changes are currently planned [33][34] Question: M&A opportunities in the industrial filtration market - Management acknowledged that while the market is challenging, they remain focused on evaluating M&A targets as part of their growth strategy [36] Question: Revenue outlook amidst market changes - Management confirmed that the revenue outlook remains near the midpoint of their guidance, despite softening market conditions [41][42] Question: Pricing expectations for the year - Management expects pricing to ramp up throughout the year, with a gradual increase leading to the anticipated 3.2% for the full year [48] Question: Impact of potential regulatory changes on emissions - Management is closely monitoring EPA reviews and believes they are well-positioned to support customers regardless of regulatory outcomes [70][71]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $417 million, a decrease of 2.4% compared to $427 million in the same period last year, primarily due to unfavorable foreign exchange and lower volumes [16][26] - Adjusted EBITDA was $82 million, or 19.6%, compared to $80 million, or 18.8%, in the prior period [17][28] - Adjusted earnings per share was $0.63 in Q1 2025, up from $0.60 last year [29] - Adjusted free cash flow was $20 million, compared to an outflow of $13 million in the prior year [29] Business Line Data and Key Metrics Changes - The company reported a gross margin of $111 million for Q1 2025, slightly down from $112 million in Q1 2024 [26] - Selling, administrative, and research expenses increased to $55 million, up by $2 million from the same period last year [27] - Joint venture income was $9 million, down $1 million from the previous year [27] Market Data and Key Metrics Changes - The company expects the heavy-duty market in the U.S. to decline by 5% to 15% and medium-duty production to decrease by 10% to 20% [23][24] - The overall expected total company revenue for 2025 remains in a range of flat to up 4% compared to the prior year, with global sales expected between $1.67 billion and $1.735 billion [24] Company Strategy and Development Direction - The company is executing a four-pillar growth strategy focused on growing share in first fit, accelerating profitable growth in the aftermarket, transforming the supply chain, and expanding into the industrial filtration market [11][12][15] - The company is actively pursuing inorganic growth opportunities in industrial filtration, although economic uncertainty is softening M&A activity [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving tariff environment, although the overall impact on end markets remains unclear [18][19] - The company anticipates a flat year-over-year performance in aftermarket revenue, with pricing expected to contribute approximately 3.2% to revenue growth [20][21] - The management is closely monitoring regulatory changes and their potential impacts on the business, particularly regarding emissions standards [75][76] Other Important Information - The company has repurchased $10 million of stock in Q1 2025, bringing the total repurchased since the program announcement to $30 million [6] - The effective tax rate for Q1 2025 was 21.3%, down from 22% the previous year [30] - The company ended the quarter with $183 million in cash and $583 million in available liquidity [31] Q&A Session Summary Question: Potential manufacturing transitions due to tariffs - Management indicated that they are not planning long-term manufacturing changes but are focused on short-term mitigation actions such as utilizing USMCA certifications and adjusting delivery routes [35][36] Question: M&A opportunities in the current environment - Management acknowledged that while the market has made M&A activity more challenging, they remain focused on building a strong pipeline of potential targets [39] Question: Revenue outlook amidst currency and market changes - Management confirmed that the revenue outlook remains near the midpoint of their guidance, despite market softness and changes in freight activity expectations [44][45] Question: Pricing expectations for the year - Management expects pricing to ramp up throughout the year, with a gradual increase leading to an overall expectation of 3.2% for the full year [50] Question: Impact of potential rollback of emission standards - Management is monitoring the regulatory review closely and believes they are well-positioned to support customers regardless of the outcome [76][78] Question: Shipping route reconfigurations to mitigate tariffs - Management confirmed that they have already enacted some shipping route adjustments and are continuously looking for additional mitigation strategies [85]

Core Insights - Titan International, Inc. has expanded its production rights for the Goodyear brand across various segments, including light construction, ATV, lawn and garden, and golf tires, while renewing its licensing rights for Goodyear Farm Tires, showcasing its commitment to the agricultural sector [1][2][3] Group 1: Expansion and Strategic Initiatives - The expansion into new segments positions Titan to better serve customers and capitalize on emerging market opportunities, with ongoing research and development for innovative tire designs in the lawn and garden segment [2] - The renewal of the Goodyear brand licensing agreement aligns with Titan's growth strategy, reinforcing its commitment to enhancing product offerings and supporting end-users, customers, and distributors across multiple regions [3] Group 2: Product Portfolio and Market Position - Titan International's product portfolio includes a wide range of offerings for sectors such as forestry, powersports, outdoor power equipment, agriculture, earthmoving, and light construction, emphasizing innovation, quality, and performance [2] - The company's strategic initiatives aim to strengthen its position as a leader in the tire industry, enhancing its comprehensive "one-stop shop" solution for tire and wheel needs [3]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1,680,000,000, representing a 6.6% decline compared to the previous year, primarily due to a comparison against a 53-week fiscal year [7][36] - Comparable sales decreased by 3%, with a sequential improvement from Q3 and the first half of the year [8][36] - Gross margin for Q4 was 32.2%, down 110 basis points from the previous year, driven by higher freight and distribution costs [13][37] - Net income for Q4 was $133,600,000, with diluted earnings per share of $1.89 [36] Business Line Data and Key Metrics Changes - The outdoor category was the best performer, with total net sales growth of 2% [11] - The mineral category saw a 1% decline in net sales, rebounding during the holiday season due to strong youth apparel sales [12] - Sports and Recreation net sales improved, finishing down 1% compared to the previous year [12] - Footwear net sales were down 2%, with strong performances from brands like ASICS and New Balance [13] Market Data and Key Metrics Changes - The company gained approximately 40 basis points of store traffic share among households earning over $100,000 annually in December [40] - Traffic growth accelerated by 700 basis points in December compared to October, indicating a positive response to value offerings [40] Company Strategy and Development Direction - The company plans to open 20 to 25 new stores in 2025, having already opened three in Pennsylvania and Maryland [20] - A focus on enhancing the e-commerce experience and expanding fulfillment options is part of the growth strategy [23] - The introduction of the Jordan brand in 145 stores is expected to significantly impact sales and brand presence [26][80] - The company aims to maintain its position as a value leader, especially for lower to middle-income consumers [28] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment, with expectations of continued softness in the lower-income demographic [60] - The company anticipates Q1 to be the most challenging quarter, with Q2 expected to show stronger performance due to new initiatives [49][60] - Management expressed optimism about the impact of new store openings and brand launches on future growth [51] Other Important Information - The company generated $528,000,000 in cash from operations in 2024 and returned over $396,000,000 to shareholders through dividends and share repurchases [42][43] - An 18% increase in dividends was approved, resulting in $0.13 per share payable in April 2025 [44] Q&A Session Summary Question: What are the expected drivers of gross margin expansion in 2025? - Management indicated that recapturing supply chain headwinds and a higher penetration of soft lines, supported by Jordan and Nike, are expected to drive gross margin expansion [54][55] Question: How does the company view the impact of weather versus consumer uncertainty? - Management acknowledged a softening in business due to weather but noted a rebound as temperatures warmed, indicating a cautious but stabilizing consumer environment [60][61] Question: What is the expected contribution of new stores to comps in 2025? - Management expects new stores to contribute positively to comps, with a significant number of stores from previous vintages entering the comp base [66] Question: Can you provide more details on the Jordan brand launch? - The Jordan brand will be launched in 145 stores and online, marking the first time Academy will sell Jordan products, with a focus on sport-related items [78][80] Question: What is the company's strategy regarding tariffs and pricing? - Management emphasized a diversified sourcing base to mitigate tariff impacts and a commitment to maintaining competitive pricing on key items [86][87]