Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $2.6 million or $0.19 per diluted share on net sales of $55.5 million, with gross margins increasing to 26.7% from 25% in the prior year period, reflecting a 161 basis point improvement driven by lower operational costs [19][20] - Selling, general, and administrative expenses decreased by 1.2% or $100,000 compared to the prior year, totaling $10.6 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $500,000 to $4.9 million [19][20] - Total cash provided by operations for Q1 2025 was $3.8 million, a significant increase from $7,000 in the prior year period [20] Business Line Data and Key Metrics Changes - Despite a 3% year-over-year decline in net sales, the company experienced growth in key categories such as archery, safety, darting, and outdoor games, which outperformed the prior year [6][7] - Inventory levels rose modestly as the company built stock ahead of the spring selling season for archery, basketball, and playground categories [7] Market Data and Key Metrics Changes - The company noted ongoing softness in discretionary spending and declining consumer sentiment, yet maintained a diversified portfolio that resonated with consumers [6][11] - The company is actively analyzing and planning for expanded sourcing scenarios due to trade uncertainties, particularly concerning China [12][30] Company Strategy and Development Direction - The company is focused on operational discipline, innovation, and customer centricity, with a strategy that includes optimizing supply chains and expanding domestic manufacturing capacity [10][11] - The company is investing in direct-to-consumer and e-commerce initiatives to deepen consumer engagement and build loyalty [14][17] - The company remains open to strategic acquisitions that enhance its brand portfolio and expand addressable markets, maintaining financial discipline in its approach [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a dynamic macroeconomic and geopolitical landscape but expressed confidence in the company's ability to navigate uncertainties through a diversified portfolio and strong margin structure [11][30] - The company is taking proactive steps to mitigate tariff impacts and is evaluating various scenarios to adapt to changing market conditions [12][31] Other Important Information - The company reduced bank debt by $1.8 million during the quarter and returned capital to shareholders through dividends and share repurchases [8] - The company completed remediation of material weaknesses in its internal financial reporting controls, which were initially disclosed in March 2024 [20][21] Q&A Session Summary Question: Follow-up on proactive steps to address the tariff situation - Management recognized high uncertainty in the marketplace but emphasized their diversified portfolio and agile supply position to navigate challenges [27][30] Question: Quantification of tariff impact in Q1 - The company indicated a little over 100 basis points negative impact from tariffs in Q1, despite achieving a 161 basis point improvement in gross margins [33] Question: Inventory levels and their implications - Management confirmed that inventory levels were strategically reduced, and existing inventory is valuable as it does not incur tariffs, contributing to lower costs [34][35]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $2.6 million or $0.19 per diluted share on net sales of $55.5 million, with gross margins increasing to 26.7% from 25% in the prior year period, reflecting a 161 basis point improvement due to lower operational costs [17][18] - Selling, general and administrative expenses decreased by 1.2% or $100,000 to $10.6 million compared to the prior year [17] - Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $500,000 to $4.9 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - Net sales declined approximately 3% year over year, but gross margins expanded by more than 160 basis points, driven by lower manufacturing and logistics costs [5][17] - The company saw growth in key categories such as archery, safety, darting, and outdoor games, which outperformed the prior year period despite overall softness in discretionary spending [5] Market Data and Key Metrics Changes - Inventory levels rose modestly during the quarter as the company built inventory ahead of the spring selling season for archery, basketball, and playground categories [6] - The company maintained a strong focus on working capital efficiency, generating nearly $4 million in operating cash flow [6] Company Strategy and Development Direction - The company is focused on operational discipline, innovation, and customer centricity, with a strategy to strengthen direct-to-consumer and e-commerce presence [9][13] - Plans include expanding domestic manufacturing capacity and diversifying global sourcing to mitigate tariff impacts and enhance supply chain resilience [11][12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing softness in consumer sentiment and discretionary spending but expressed confidence in the company's diversified portfolio and operational improvements [10][12] - The company is actively analyzing and planning for various sourcing scenarios in response to trade uncertainties, particularly regarding China [11][30] Other Important Information - The company reduced bank debt by $1.8 million and paid a quarterly dividend of $2.1 million during the quarter [7] - Total debt outstanding as of March 31, 2025, was $23.8 million, with a net leverage ratio of 0.8 times trailing twelve months EBITDA [18] Q&A Session Summary Question: Follow-up on proactive steps to address the tariff situation - Management highlighted the importance of a diversified category portfolio and agile supply position to navigate uncertainties, mentioning ongoing optimization of the supply chain and potential pricing actions [25][30] Question: Quantification of tariff impact in Q1 - Management indicated that there was a little over 100 basis points negative impact from tariffs in Q1, but still achieved a 161 basis point improvement in gross margins [32] Question: Inventory levels and their implications - Management explained that inventory levels were strategically reduced over the past few years, resulting in a more right-sized inventory that contributed to lower costs [33]

Financial Data and Key Metrics Changes - For the first quarter, total revenue was reported at $107.1 million, an increase of $3.6 million or 3.5% compared to the same quarter last year [9] - GAAP net income for the first quarter was $20.9 million, an increase of $13.9 million or 200.1% [22] - Adjusted diluted EPS for the first quarter was $0.96 per share, an increase of $0.21 or 28% compared to the prior year quarter [13] - Adjusted consolidated EBITDA was $32.9 million, a decrease of $653,000 or 1.9% [12] Business Line Data and Key Metrics Changes - Total funeral operating revenue was $69.1 million, an increase of $3 million or 4.6% year-over-year, driven by a 1.8% increase in average revenue per contract and a 2.4% increase in admin volume [9] - Total cemetery revenue reached $27.9 million, an increase of $1.5 million or 5.8% [11] - Financial revenue was $7.4 million, an increase of $613,000 or 9.1%, primarily from preneed insurance funeral sales [12] Market Data and Key Metrics Changes - The company observed a shift in flu season, impacting volume expectations, with a positive variance of 7.7% compared to the first quarter of the previous year [10] - The preneed cemetery growth rate is expected to be between 10% to 20% for the year [11] Company Strategy and Development Direction - The company is maintaining its current guidance while monitoring economic conditions, with plans to potentially raise guidance if momentum continues [14][15] - The Trinity system is in Phase one of implementation, focusing on back office systems, with Phase two expected to begin in the third quarter [16] - The company is excited about the rollout of its express funeral funding partnership, aimed at improving family financial flexibility and unlocking new sales potential [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the strength of its financial strategy, despite broader economic uncertainties [14][19] - The company is focused on operational excellence and innovation to create lasting value for shareholders [20] Other Important Information - Cash provided by operating activities for the quarter was $13.8 million, down from $19.7 million in the prior year [23] - The company ended the quarter with a maintained leverage ratio of 4.2 times, down from 5 times [24] Q&A Session Summary Question: How was March and April performance? - Management indicated that momentum has continued strongly from January through April, primarily due to volume increases [30][31] Question: What is the outlook for preneed and terming rates sold? - Management noted that while there was a decline in preneed property rights sold, they expect a return to normal growth rates starting in the second quarter [34][35] Question: What are the expected proceeds from property monetization in Q2? - Management estimated around $6 million in proceeds from property sales in Q2, which is factored into guidance [56] Question: How does the company plan to react in a recessionary environment? - Management expressed confidence in the resilience of the industry, noting that demand remains stable even during economic downturns [51][52] Question: What cost-saving measures are currently in place? - Management highlighted ongoing supply chain initiatives and fleet management as key areas for cost savings [47][48]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew by 10.5% year over year to $320.9 million, marking the highest first quarter total revenue on record [18][19] - Restaurant level profit margin increased by 120 basis points year over year to 20.7%, the highest first quarter margin since 2019 [6][19] - Adjusted EBITDA grew by approximately 13.5% year over year to $40.7 million, representing 12.7% of total revenue [27] Business Line Data and Key Metrics Changes - Company-operated Shack sales increased by 10.4% year over year to $309.8 million, with four new Shack openings [19] - License business revenue grew by 11.1% year over year to $11.1 million, with sales increasing by 10.4% year over year to $179.6 million and seven new license Shack openings [19][14] Market Data and Key Metrics Changes - Nearly two-thirds of markets experienced same Shack sales growth, although major markets like Los Angeles and New York City faced significant weather-related challenges [20] - Traffic was down 4.6% in the quarter due to unfavorable weather and broader industry pressures, with an estimated 400 basis points of traffic pressure attributed to these factors [20][22] Company Strategy and Development Direction - The company aims to grow to at least 1,500 company-operated Shacks, with a focus on innovative thinking and operational improvements [4][5] - Strategic priorities include building a culture of leaders, improving restaurant operations, driving comp sales, and expanding the license business [8][14] - The company is committed to investing in long-term strategic capabilities and accelerating innovation across various operational areas [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds impacting transaction growth but emphasized the opportunity to improve guest experience and operational efficiency [4][6] - The company expects low single-digit same Shack sales growth for 2025, with a focus on maintaining competitive pricing and operational improvements [30][31] Other Important Information - The company plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class on record [30] - Menu pricing is expected to increase modestly, with in-Shack prices up approximately 2% year over year [30] Q&A Session Summary Question: Store margins and near-term opportunities - Management highlighted operational improvements and a new labor model as key factors driving margin expansion and confidence in future performance [36][37] Question: Drive-thru strategy and early learnings - The company reported significant improvements in ordering time and guest satisfaction from testing new digital menu boards and combo offerings in drive-thrus [42][45] Question: Q2 comp outlook and underlying assumptions - Management expects low single-digit comps for Q2, driven by new menu innovations and improved weather conditions [90][92] Question: Long-term targets and pricing assumptions - Management confirmed that operational improvements and supply chain efficiencies are expected to support margin expansion without relying heavily on price increases [63][64] Question: Innovation and LTO strategy - The company is focused on maintaining a quarterly cadence for new product innovations while ensuring operational efficiency [72][75]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew by 10.5% year over year to $320.9 million, marking the highest first quarter total revenue on record [18][19] - Restaurant level profit margin improved by 120 basis points year over year to 20.7%, the highest first quarter margin since 2019 [7][18] - Adjusted EBITDA increased by approximately 13.5% year over year to $40.7 million, representing 12.7% of total revenue [27] Business Line Data and Key Metrics Changes - In the company-operated business, Shack sales grew by 10.4% year over year to $309.8 million, with four Shack openings including two drive-throughs [19] - The licensing business saw revenue growth of 11.1% year over year to $11.1 million, with sales increasing by 10.4% year over year to $179.6 million and seven new license Shack openings [19][15] Market Data and Key Metrics Changes - Nearly two-thirds of markets experienced same Shack sales growth, although major markets like Los Angeles and New York City faced significant weather-related challenges [20][22] - Traffic was down 4.6% in the quarter due to unfavorable weather and broader industry pressures, with an estimated 400 basis points of traffic pressure attributed to these factors [20][21] Company Strategy and Development Direction - The company aims to grow to at least 1,500 company-operated Shacks, with a focus on innovative thinking and operational improvements [5][6] - Strategic priorities include building a culture of leaders, improving restaurant operations, driving comp sales, and expanding the licensing business [9][15] - The company is committed to investing in long-term strategic capabilities and accelerating innovation across various operational areas [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro headwinds impacting transaction growth but emphasized the opportunity to improve guest experience and reduce costs [5][6] - The company expects to achieve low single-digit same Shack sales growth for 2025, with a focus on menu innovation and culinary strategy to drive traffic [31][54] Other Important Information - The company plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class on record [31] - The balance sheet remains solid with $312.9 million in cash and cash equivalents at the end of the quarter [27] Q&A Session Summary Question: Can you elaborate on the near-term opportunities for margin expansion? - Management highlighted operational improvements and a new labor model as key factors driving productivity and margin growth [37][38] Question: What are the early learnings from the drive-through strategy tests? - Management reported significant improvements in ordering time and guest satisfaction from the new digital menu boards and combo offerings [43][45] Question: What are the underlying assumptions for the Q2 comp outlook? - Management expects low single-digit comps based on current macro trends and new menu innovations, including a summer barbecue menu [93] Question: How does the company plan to balance menu innovation with operational efficiency? - Management emphasized the importance of ensuring that new innovations do not disrupt operational efficiency and are manageable for staff [58][60] Question: What is the company's strategy for driving mix without increasing prices? - Management plans to introduce premium items and combos to enhance mix while minimizing price increases on core items [80][82]

Core Insights - Wabash has partnered with Echo Global Logistics to enhance Echo's drop trailer program and service offerings, leveraging Wabash's Trailers as a Service (TaaS) solution [1][4] - The partnership aims to meet the growing demand for flexible freight options, allowing Echo to access trailer capacity on demand without the complexities of fleet ownership [2][3] - Wabash's TaaS provides a comprehensive solution that includes trailer capacity, maintenance, repair, and telematics, streamlining operations for Echo and enabling them to focus on tech-enabled freight solutions [3][4] Company Overview - Wabash is a leading provider of solutions that optimize supply chains across transportation, logistics, and infrastructure markets, headquartered in Lafayette, Indiana [6] - The company designs, manufactures, and services a wide range of products, including van trailers, flatbed trailers, and tank trailers, supporting first-to-final mile operations [6] - Echo Global Logistics is a prominent provider of technology-enabled transportation and supply chain management services, headquartered in Chicago, with over 30 offices in North America [7] - Echo offers freight brokerage and managed transportation solutions across various modes, utilizing advanced technology to analyze data from a network of over 50,000 transportation providers [7]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $10,700,000, a 2% decrease compared to $11,000,000 in the first quarter of 2024, attributed to the timing of incentive calendars [5][8] - Gross profit margin increased slightly to 73.6% from 73.4% in the first quarter last year [9] - Net income for the first quarter was $122,000 or $0.01 per diluted share, compared to $188,000 or $0.02 per diluted share in the first quarter of 2024 [10] Business Line Data and Key Metrics Changes - Active member base decreased slightly to 30,180 at March 31 from 30,870 at December 31, down 5% from 31,620 at March [8] - Commissions expense as a percent of total revenue for the first quarter was 41.8% compared with 41% a year ago, primarily due to higher weekly commissions earned by members [10] Market Data and Key Metrics Changes - In China and Hong Kong, a Night City Roadshow was completed, marketing wellness products with expert insights, and new products in the Twin Slim weight management line received strong feedback [6] Company Strategy and Development Direction - The company is actively working to streamline its supply chain and bring manufacturing closer to primary markets in Asia to weather international trade uncertainties and improve long-term efficiency [7][11] - The opening of a new office in Bogota, Colombia, will serve as a central hub for customer services and showcasing brands and products [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need to assess the potential impact of tariffs on operations and respond with strategic actions to optimize the supply chain [11] - The focus remains on executing strategic initiatives and providing exceptional support to members [11] Other Important Information - Total cash, cash equivalents, and marketable securities were $41,900,000 at March 31, down from $43,900,000 at December 31, 2024, due to quarterly dividend payments [11] - A quarterly cash dividend of $0.20 per share was declared, payable on May 23 to stockholders of record as of May 13 [11] Q&A Session Summary - No specific questions or answers were recorded in the provided content.

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $10.7 million, a 2% decrease from $11 million in Q1 2024, attributed to the timing of incentive calendars [4][7] - Active member base decreased to 30,180 as of March 31, down from 30,870 at December 31, and down 5% from 31,620 in March 2024 [7] - Gross profit margin increased slightly to 73.6% from 73.4% in the same quarter last year [7] - Net income for Q1 2025 was $122,000 or $0.01 per diluted share, compared to $188,000 or $0.02 per diluted share in Q1 2024 [9] Business Line Data and Key Metrics Changes - Orders taken increased by 9% sequentially over Q4 2024, indicating sustained interest in products [4] - New products introduced in the Twin Slim weight management line received strong customer feedback [5] Market Data and Key Metrics Changes - The company completed a Night City Roadshow in China and Hong Kong, promoting wellness products [5] - A new office was opened in Bogota, Colombia, serving as a central hub for customer services and brand showcasing [6] Company Strategy and Development Direction - The company is actively working to streamline its supply chain and bring manufacturing closer to primary markets in Asia to improve long-term efficiency [6][10] - Immediate priorities include assessing the potential impact of tariffs on operations and optimizing logistics [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the international trade environment changed significantly after Q1, making it difficult to gauge impacts [6] - The focus remains on executing strategic initiatives and providing exceptional support to members [10] Other Important Information - Commissions expense as a percentage of total revenue increased to 41.8% from 41% a year ago due to higher weekly commissions [8] - Total cash, cash equivalents, and marketable securities were $41.9 million at March 31, down from $43.9 million at December 31, 2024, due to quarterly dividend payments [10] - A quarterly cash dividend of $0.20 per share was declared, payable on May 23 to stockholders of record as of May 13 [10] Q&A Session Summary - No specific Q&A session content was provided in the transcript.

Financial Data and Key Metrics Changes - The company reported net revenues of $818 million for Q1 2025, with retail revenues of $767 million, reflecting a decrease of $28 million compared to Q1 2024 due to retailer destocking and declines in the foam category [13][14] - Adjusted EBITDA was $117 million, down from $122 million in the prior year, primarily driven by lower retail sales [14] - Adjusted earnings per share (EPS) remained unchanged at $0.23 compared to Q1 2024 [14] - The company expects 2025 net revenues to decline low single digits compared to 2024 and adjusted EBITDA in the range of $650 million to $670 million [14][15] Business Line Data and Key Metrics Changes - The company outperformed its categories by two points at retail, capturing share in household foil, waste bags, food bags, and non-foam disposable tableware [7] - Non-retail revenues increased by $12 million [14] - The company introduced new products, including hefty compostable cutlery and Reynolds Kitchen air fryer cups, to drive innovation and connect with younger consumers [7][12] Market Data and Key Metrics Changes - Retail volumes are expected to be down 2% to 5% in Q2 2025 compared to Q2 2024, driven by lower volumes and partially offset by pricing [17] - The company anticipates more pressure on its categories, with lower consumer confidence and retailers managing inventory levels contributing to the challenges [15][31] Company Strategy and Development Direction - The company is focused on driving growth at or above its categories, expanding margins, and investing in a more stable earnings growth model [6][7] - Strategic initiatives include targeted distribution gains, prioritizing larger scale innovation, and reallocating promotional spend to higher return opportunities [11][12] - The company is adapting to a dynamic macro environment by investing in high return programs and leveraging competitive advantages [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that retailer destocking is expected to be a permanent change rather than a temporary adjustment [23][24] - The company is not altering its strategic direction despite recent tariff announcements and a challenging retail environment, emphasizing the need to control its own destiny through innovation and distribution gains [12] - Management expressed confidence in the innovation pipeline, highlighting new product launches and the potential for growth [62] Other Important Information - The company successfully refinanced its term loan facility, enhancing financial flexibility [19] - The updated segment reporting now reflects the international business based on product category alignment [18] Q&A Session Summary Question: Can you discuss the retailer destocking piece? - Management indicated that retailer destocking is expected to be a permanent change and will flow through the balance of the year [23][24] Question: Can you clarify the strategic expenses related to revenue growth management? - Management explained that strategic investments focus on evaluating revenue growth management, cost out work, and supply chain efficiency [25][26] Question: What is the guidance for category growth? - The guidance now contemplates a greater quantum of pricing due to lower expectations of retail volumes, with retailer destocking being a significant factor [30][31] Question: Can you elaborate on the tariff pressure? - Management noted that direct tariff exposure is a single-digit percentage of overall COGS, with significant indirect impacts from commodities like aluminum [38][39] Question: How has consumption performed exiting the quarter? - Management reported that retail business performed as expected, with destocking impacting the P&L, but March showed better performance than January and February [49][50] Question: How is the innovation pipeline looking for this year? - Management expressed confidence in the innovation pipeline, highlighting new product launches and the potential for growth [62]

Financial Data and Key Metrics Changes - The company reported net revenues of $818 million for Q1 2025, with retail revenues of $767 million, reflecting a decrease of $28 million compared to Q1 2024, primarily due to retailer destocking and declines in the foam category [13][14] - Adjusted EBITDA for the quarter was $117 million, down from $122 million in the prior year, driven by lower retail sales [14] - Adjusted earnings per share (EPS) remained unchanged at $0.23 compared to Q1 2024 [14] Business Line Data and Key Metrics Changes - The company outperformed its categories by two points at retail, capturing market share in household foil, waste bags, food bags, and non-foam disposable tableware [7][8] - Non-retail revenues increased by $12 million, indicating growth in segments outside traditional retail channels [14] Market Data and Key Metrics Changes - The company anticipates net revenues for 2025 to decline by low single digits compared to 2024, with adjusted EBITDA expected in the range of $650 million to $670 million [15][16] - The impact of tariffs is estimated to create cost headwinds of $100 million to $200 million annually, with pricing strategies expected to offset these costs [16][38] Company Strategy and Development Direction - The company is focused on driving growth above category levels, expanding margins, and investing in a stable earnings growth model [6][7] - Strategic initiatives include targeted distribution gains, prioritizing larger-scale innovations, and optimizing supply chain efficiencies [11][12] - The company has updated its segment reporting to better align international business with product categories, reflecting a shift in strategy to enhance growth [18][40] Management's Comments on Operating Environment and Future Outlook - Management noted that retailer destocking is expected to persist throughout the year, impacting revenue expectations [23][24] - The company remains committed to innovation and distribution gains, despite challenges from tariffs and a dynamic retail environment [12][20] - Management expressed confidence in the underlying health of the business and the ability to recover gross profit through pricing and productivity measures [9][10] Other Important Information - The company successfully refinanced its term loan facility, enhancing financial flexibility and supporting strategic priorities [19] - Capital spending is expected to increase by $20 million to $40 million in 2025 to drive growth and margin expansion [19] Q&A Session Summary Question: Can you discuss the retailer destocking impact? - Management indicated that retailer destocking is expected to be a permanent adjustment rather than a temporary phenomenon, affecting the full year outlook [23][24] Question: What is the guidance for category growth? - The guidance reflects lower expectations for retail volumes due to destocking and consumer pressure, with pricing adjustments factored in [30][31] Question: Can you elaborate on tariff pressures? - Direct tariff exposure is a single-digit percentage of overall COGS, with significant indirect impacts from commodities like aluminum [36][38] Question: How is the innovation pipeline looking? - The company is optimistic about its innovation pipeline, with new product launches such as hefty compostable cutlery and additional scents in existing product lines [63][64] Question: What are the pricing mechanics and impact of destocking? - Pricing adjustments typically take two to six months to reflect in retail, and destocking has altered the usual timeline for pricing realization [67][71]