Financial Data and Key Metrics Changes - For the full year 2024, group revenue increased by 6.7% to $8.5 billion, and adjusted EBITDA increased by 6.7% to $392 million, exceeding adjusted EBITDA guidance by $12 million [11][7] - Adjusted net income for the full year was $120.9 million, with adjusted diluted EPS increasing by 2.4% to $1.27 per share [11][27] - Net debt at the end of 2024 was $637 million, with net leverage at 1.6 times, indicating a strong financial position [12][10] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $214.8 million for the full year, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains [12][13] - Diversified EMEA segment achieved adjusted EBITDA of $131.5 million for the full year, with like-for-like revenue growth of 4.4% [16][17] - Diversified Fresh Produce Americas segment reported a like-for-like revenue increase of 16.1%, with adjusted EBITDA increasing by 52.3% for the full year [32][33] Market Data and Key Metrics Changes - In North America, the Fresh Fruit segment saw good volume growth in bananas and plantains, while European markets benefited from high volumes and lower shipping costs [13][14] - The EMEA segment faced headwinds due to supply challenges and weather events, but anticipates continued revenue growth in 2025 [17][18] - The Diversified Americas segment performed well, particularly in the export business, with strong growth in cherries and grapes [19][33] Company Strategy and Development Direction - The company is focused on capital allocation and managing invested capital, with strategic investments in expanding shipping capacity and improving operational performance [8][10] - There is an ongoing process to determine the best strategic alternative for the Fresh Vegetables business, which is expected to enhance long-term outcomes for stakeholders [20][21] - The company plans to maintain a baseline level of capital expenditure in 2025, while exploring development opportunities to drive further growth [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025, including the impact of Tropical Storm Sara and geopolitical uncertainties affecting sourcing costs and supply chains [40][41] - The company aims for adjusted EBITDA in the range of $370 million to $380 million for 2025, reflecting a more normalized year compared to 2024 [41][38] - Management remains optimistic about the underlying fundamentals of the business and is focused on addressing challenges while capitalizing on growth opportunities [15][38] Other Important Information - The company declared a dividend of $0.08 for the fourth quarter, to be paid on April 3, 2025 [37] - Free cash flow from continuing operations was $180.3 million for the full year, benefiting from strong adjusted EBITDA performance and good working capital management [36] Q&A Session Summary Question: Could you unpack the EBITDA guidance and the factors affecting it? - Management indicated that the guidance reflects known headwinds, including the impact from Tropical Storm Sara and macroeconomic uncertainties, with expectations for a slower start to 2025 [45][49][54] Question: What mitigation strategies are in place regarding potential tariffs? - Management believes that the demand for fresh produce will remain strong, and they are prepared to adjust pricing and sourcing strategies if tariffs are implemented [56][58][60] Question: What is the company's approach to capital allocation moving forward? - Management emphasized a focus on leveraging while also considering targeted M&A opportunities, with ongoing internal development projects to enhance growth [65][67][71] Question: Can you provide insights on the profit weakness in the EMEA segment? - Management noted that while there are ups and downs across different markets, they see more opportunities than challenges in the EMEA segment [75][77] Question: Is there a risk of elasticity in pricing for high-value products like avocados? - Management expressed confidence that demand for avocados and other products will remain stable, despite potential tariff impacts [78][80]

Financial Data and Key Metrics Changes - In 2024, Group revenue increased by 6.7% to $8.5 billion, and adjusted EBITDA also increased by 6.7% to $392 million, exceeding adjusted EBITDA guidance by $12 million [11][7][10] - Adjusted net income for the full year was $120.9 million, with adjusted diluted EPS increasing by 2.4% to $1.27 per share [11][27] - Net debt at the end of 2024 was $637 million, with net leverage at 1.6 times, indicating a strong financial position [12][10] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $214.8 million for the full year, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains [12][13] - Diversified EMEA segment achieved adjusted EBITDA of $131.5 million for the full year, with a like-for-like revenue growth of 4.4% [16][17] - Diversified Fresh Produce Americas segment reported a like-for-like revenue increase of 16.1%, with adjusted EBITDA increasing by 52.3% for the full year [32][33] Market Data and Key Metrics Changes - North America saw good volume growth in bananas and plantains, while the European market experienced high volumes in bananas and lower shipping costs [13][14] - The EMEA segment faced headwinds due to supply challenges and weather events, but anticipates continued revenue growth in 2025 [17][16] - The Fresh Vegetables business showed positive cash flow for the full year, indicating a turnaround despite accounting adjustments [21] Company Strategy and Development Direction - The company is focused on capital allocation and managing invested capital, with strategic investments in expanding shipping capacity and improving operational performance [8][10] - There is an ongoing process to determine the best strategic alternative for the vegetables business, which remains a priority [20][21] - The company plans to maintain a baseline level of capital expenditure in line with depreciation expenses, while exploring development opportunities for future growth [41][70] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025, including the impact of Tropical Storm Sara and geopolitical uncertainties affecting sourcing costs and supply chains [40][41] - The company aims for adjusted EBITDA in the range of $370 million to $380 million for 2025, reflecting a more normalized year compared to 2024 [41][38] - Management remains optimistic about the underlying fundamentals of the business and is focused on navigating challenges while capitalizing on growth opportunities [15][38] Other Important Information - The company declared a dividend of $0.08 for the fourth quarter, to be paid on April 3, 2025 [37] - Free cash flow from continuing operations was $180.3 million for the full year, benefiting from strong adjusted EBITDA performance [36] Q&A Session Summary Question: Can you unpack the EBITDA guidance for 2025? - Management indicated that the guidance reflects known headwinds, including the impact from Tropical Storm Sara and macroeconomic uncertainties, with expectations for a slower start to the year [45][49][54] Question: What mitigation strategies are in place regarding potential tariffs? - Management believes that the demand for fresh produce will remain strong, and they are prepared to adjust pricing and sourcing strategies if tariffs are implemented [56][58][60] Question: What is the focus on capital allocation moving forward? - The company is prioritizing leveraging while also considering targeted M&A opportunities, with ongoing internal development projects aimed at enhancing growth [65][70][72] Question: What are the expectations for the Diversified EMEA segment? - Management noted that while there are some profit weaknesses in certain regions, they see more opportunities than challenges and expect continued growth [75][76] Question: Is there a risk of elasticity in pricing for high-value products like avocados? - Management expressed confidence that the U.S. market will continue to demand these products, despite potential tariff impacts, due to limited domestic production capabilities [78][80]

Financial Data and Key Metrics Changes - For the full year of 2024, the company reported consolidated same-store net revenues of $11.2 billion and EBITDA of $3.7 billion, achieving an EBITDA margin of 33.2% [9][12][41] - In Q4, consolidated EBITDA was flat year-over-year, with same-store net revenues of $1.1 billion and adjusted EBITDA of $478 million, down 1% compared to the previous year [10][11][12] - The company utilized proceeds from non-core asset sales to repay $500 million in debt and repurchase $190 million worth of stock [20][41] Business Line Data and Key Metrics Changes - The Las Vegas segment reported same-store net revenues of $1.1 billion and adjusted EBITDA of $478 million, with margins at 44.4% [10][11] - The regional segment saw a 1% decline in net revenues and a 5% decline in adjusted EBITDA, although the rate of decline improved sequentially [11][12] - The digital segment achieved record net revenues of $1.2 billion, up 20% year-over-year, with adjusted EBITDA of $117 million compared to $38 million a year ago [15][16] Market Data and Key Metrics Changes - In Las Vegas, occupancy for the full quarter was 96%, slightly down from the previous year [11] - The iGaming segment experienced a 65% net revenue growth in Q4, driven by improved product offerings [16] - The sports betting segment saw a decline in net revenue due to customer-friendly outcomes, although the overall volume declined slightly as the company limited activity in unprofitable segments [17][18] Company Strategy and Development Direction - The company concluded a significant capital investment cycle that began with the merger in July 2020, with expectations of increased free cash flow in 2025 and 2026 [13][14] - The company plans to continue focusing on improving both brick-and-mortar properties and digital offerings to drive growth [14][40] - There is a strategic consideration to explore ways to unlock value within the digital segment, potentially allowing for a pure-play investment opportunity [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance of newly opened properties in New Orleans and Virginia, expecting strong results in 2025 [12][30] - The company anticipates that competitive pressures in regional markets will lessen, leading to improved performance [25][35] - Management noted that the Las Vegas market is expected to remain stable, with group business increasing significantly in 2025 and 2026 [37][68] Other Important Information - The company is focused on reducing leverage while also engaging in stock buybacks, with a target of reaching lease-adjusted leverage toward four times [57][58] - Management highlighted the importance of maintaining a strong customer base and improving customer experience across both digital and physical platforms [75][100] Q&A Session Summary Question: Guidance for 2025 expenses in Las Vegas and regionals - Management indicated a smaller increase in labor costs for 2025 and emphasized efficiency in operations [46][47] Question: Monetization of the digital segment - Management acknowledged the need to build the business value and explore strategic options to unlock value for shareholders [50][52] Question: Stock buybacks and leverage reduction - Management confirmed that the majority of free cash flow would be directed towards debt pay down, with stock buybacks occurring in asset sale transactions [58][60] Question: Las Vegas market growth drivers - Management noted that increased yield from room products and new food and beverage offerings would drive growth in Las Vegas [67][68] Question: iGaming growth drivers - Management highlighted that growth in iGaming is primarily driven by the standalone apps and customer acquisition strategies [73][75] Question: Regulatory landscape for digital gaming - Management described the current regulatory environment as a headline cycle, with potential for more iCasino jurisdictions in the future [82][84] Question: Changes in sports betting handle - Management explained that the decline in sports betting handle was due to strategic changes in customer reinvestment and targeting [115][116] Question: Trends in high-limit slot play - Management observed growth in high-limit slot play, attributing it to improved customer engagement and property enhancements [120][123]

Financial Data and Key Metrics Changes - Q4 consolidated revenues reached $924 million, a 3% year-over-year increase, driven by growth in Golf Equipment and slight increases in Active Lifestyle, while Topgolf revenue remained consistent with the prior year [60] - Adjusted EBITDA for Q4 was $101 million, reflecting a 45% increase due to improved operating results across all segments [60] - Full year consolidated adjusted free cash flow was $203 million, exceeding previous guidance [69] Business Line Data and Key Metrics Changes - Golf Equipment revenue increased by 13% year-over-year to $225 million, attributed to strong sales of golf clubs and the Chrome family of golf balls [63] - Topgolf generated adjusted EBITDA of $337 million, an 11% increase compared to 2024, despite same venue sales declining by 8% [19][60] - Active Lifestyle segment revenue increased by 1% year-over-year, primarily driven by TravisMathew's apparel sales [64] Market Data and Key Metrics Changes - U.S. on-course golf participation rose by 1.5 million to 28.1 million, with rounds played growing 2% year-over-year [43] - The macro environment for premium out-of-home entertainment is facing headwinds, impacting same venue sales at Topgolf [20][41] Company Strategy and Development Direction - The company is focused on the separation of Topgolf, evaluating options for a spin-off or potential sale [16] - Initiatives to improve same venue sales include new experiences, value offerings, and operational efficiencies [41][39] - The company anticipates growing Golf Equipment revenues slightly faster than the overall golf market, with expected gross margin improvements [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged year-over-year headwinds from foreign exchange and incentive compensation, projecting a $75 million negative impact on core business EBITDA [11] - Despite challenges, management remains optimistic about the future, expecting to mitigate headwinds through operational improvements [12][56] - The company is committed to returning to growth in same venue sales and improving profitability [41] Other Important Information - The company recorded a non-cash accounting charge of $1.45 billion related to the impairment of Topgolf goodwill and intangible assets [58] - Available liquidity increased to $797 million as of December 31, 2024, due to better cash flow generation [66] Q&A Session Summary Question: Could you elaborate on same venue sales trends when the weather has been neutral at Topgolf? - Management indicated that neutral weather markets are currently running down low to mid-single digits, with expectations for improvement in 2025 due to easier comparisons and positive consumer response to value messaging [78][79] Question: Can you talk about the key drivers behind the acceleration in corporate events comp? - Management noted that increased flexibility in product design and local market learnings contributed to the acceleration in corporate events comp, with expectations for walk-in sales to perform better than events in 2025 [89][92] Question: What drives the core business down year-over-year? - The primary driver for the decline in the core business is foreign exchange impacts, with additional challenges from competitive launches and reduced product launches planned for the second half of the year [96][97] Question: Is there anything structurally changed in the core business affecting profitability? - Management confirmed that there are no structural changes affecting profitability, with foreign exchange being the main driver of the decline [102][104] Question: Can you provide an update on expectations for pro forma leverage of the core business? - Management expressed confidence in achieving a leverage ratio of 3x or under within 12 months of the spin, emphasizing strong cash flow generation and operational flexibility [120][122]

Financial Data and Key Metrics Changes - The company reported a combined revenue increase of 8% in Q4 2024, with adjusted EBITDA growing by 4% from $111.8 million to $116 million [10] - For the full year, revenue from continuing operations grew by 7%, and adjusted EBITDA increased by 14%, reaching $510.4 million with a 9.8% adjusted EBITDA margin compared to 9.2% in 2023 [10][15] - The diluted loss per common share from continuing operations was $0.19 for Q4, compared to earnings of $0.12 in the same quarter last year [14] Business Line Data and Key Metrics Changes - The Critical Illness Recovery Hospital division saw a 6% increase in revenue and a 10% increase in adjusted EBITDA, with an adjusted EBITDA margin of 10.5% for Q4 [11] - The Inpatient Rehab Hospital division experienced a 13% revenue increase, but adjusted EBITDA declined by 6%, resulting in a margin of 21.2% [12] - The Outpatient Rehab division reported a 7% revenue increase and an 18% rise in adjusted EBITDA, with the adjusted EBITDA margin improving from 7.5% to 8.3% [13][14] Market Data and Key Metrics Changes - The company added 94 inpatient rehabilitation beds in Q4, with plans to add 481 additional beds in 2025 and 2026 [6][8] - The average daily census for the entire rehab division increased by 3%, while the occupancy rate was 81%, down from 85% in the prior year [12] Company Strategy and Development Direction - The company completed the spin-off of Concentra, focusing on its remaining three lines of business [3][4] - The company plans to open multiple new facilities, including a 45-bed rehab hospital in Temple, Texas, and a 63-bed rehab hospital in Ozark, Missouri, among others [7][8] - The company aims to optimize resources and serve targeted demographics through strategic closures and acquisitions in the outpatient division [9] Management Comments on Operating Environment and Future Outlook - Management noted that nursing agency rates have stabilized and utilization has returned to pre-COVID levels, with expectations for continued improvement in labor costs [11][17] - The company anticipates revenue for 2025 to be in the range of $5.4 billion to $5.6 billion, with adjusted EBITDA expected between $520 million and $540 million [22] - Management acknowledged confusion in the market regarding the impact of the Concentra spin-off on financial metrics [25][26] Other Important Information - The company refinanced $1.6 billion of outstanding debt, extending the maturity of its revolving credit facility to 2029 and increasing availability [4][5] - The company declared a cash dividend of $0.0625 per share payable on March 13, 2025 [16] Q&A Session Summary Question: Clarification on 2025 metrics - Analyst Justin Bowers inquired about revenue growth, EBITDA growth, and net leverage metrics for 2025, to which Martin Jackson confirmed the calculations and acknowledged market confusion regarding Concentra [25][26] Question: Development activity and startup costs - Bowers asked about the maturation of new facilities and associated startup costs, with Jackson indicating that the new beds would have a dampening effect on inpatient rehab margins for 2025 but expect significant growth in 2026 and 2027 [30][31] Question: Inpatient rehab margins and headwinds - Ben Hendrix questioned the lower margins in the inpatient rehab segment, with Robert Ortenzio explaining that hurricane impacts and startup losses contributed to the decrease [45][46] Question: 2025 outlook for IRF margins - Joanna Gajuk asked about the expected decline in IRF margins for 2025, with Jackson confirming that startup losses were the primary driver [50][51] Question: Outpatient rehab growth drivers - Gajuk also inquired about the expected growth in outpatient rehab EBITDA, with Jackson attributing it to increased rates from commercial contracts and improved clinical productivity [58][59]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $56.1 million or $0.55 per share, a 26% year-over-year increase [11] - Consolidated revenue for Q4 2024 was $713 million, a 9% increase compared to the same period last year, with operating income rising 64% to $77.9 million [11][12] - Adjusted EBITDA for Q4 2024 reached $102 million, representing a 35% increase year-over-year [11][12] - For the full year 2024, consolidated revenue increased 10% to $2.7 billion, with operating income improving by 36% to $246 million [21][22] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) operating income for Q4 2024 was $63.5 million, a 26% increase year-over-year, with an EBITDA margin improvement to 36% from 32% [13][14] - Manufactured Products segment revenue for Q4 2024 was $143 million, an 8% increase year-over-year, but operating income margin declined to 3% due to reserves taken on a project [15][16] - Offshore Projects Group (OPG) achieved record revenue and operating income in Q4 2024, with operating income improving to $39.3 million and revenue increasing 14% to $184 million [17][18] - Integrity Management and Digital Solutions (IMDS) saw a decrease in operating income despite a revenue increase, primarily due to acquisition-related costs [18][19] Market Data and Key Metrics Changes - The company ended 2024 with a cash balance of $498 million and a free cash flow of $94.5 million [12][13] - The year-end backlog was $604 million, a decrease of $17 million compared to the previous year [16] - The book-to-bill ratio for 2024 was 0.7, down from 1.31 in 2023, indicating a slowdown in order intake [16] Company Strategy and Development Direction - The company is focused on leveraging market dynamics in 2025, with expectations for mid to high single-digit revenue growth across all segments [28][29] - Continued pricing progression and favorable project mix are expected to drive revenue growth [29][30] - The company is actively pursuing M&A opportunities, particularly in disruptive technologies, and has seen an increase in potential targets [87][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of defense-related markets and the overall outlook for 2025, despite potential geopolitical risks [27][28] - The forecast for 2025 includes expectations for EBITDA in the range of $380 million to $430 million, representing a 17% increase over 2024 [30][31] - The company anticipates generating positive free cash flow of $110 million in 2025, with capital expenditures projected between $130 million and $140 million [31][32] Other Important Information - The company achieved a 56% reduction in high potential incidents, with a total recordable incident rate of 0.29% for the year [9][10] - The acquisition of Global Design Innovation Limited (GDI) is expected to enhance the company's digital and software capabilities [8][10] Q&A Session Summary Question: Pricing increase in ROVs - Management indicated that the pricing increase in ROVs has been driven by both drilling support and vessel-based work, with expectations for continued upward pricing progression despite flat activity levels [46][49] Question: Guidance on orders and book-to-bill - Management did not provide specific guidance on orders or book-to-bill but noted a healthy sales pipeline [50][52] Question: ROV utilization assumptions - Management expects rig activity to remain flattish, with a focus on higher quality assets and increased market share in Brazil [58][61] Question: Update on outsourced manufacturing - Management expressed confidence in the quality of outsourced manufacturing and noted ongoing discussions with customers for larger volume orders [62][64] Question: Margin improvement in manufactured products - Management highlighted that margin improvement is driven by better pricing in backlog and operational efficiencies [67][69] Question: Strength in offshore projects - Management discussed the growth in light well intervention and rework of infrastructure as key drivers for OPG's performance [78][80] Question: Visibility in the vessel class ROV market - Management noted strong utilization in the vessel class and ongoing demand for ROVs in various projects [82][85] Question: M&A opportunities - Management indicated an increase in M&A opportunities and expressed excitement about potential targets that align with the company's strategic goals [87][89]

Financial Data and Key Metrics Changes - For the full year 2024, same store net operating revenues increased by 5.5% and adjusted EBITDA improved by 6% [9][17] - Adjusted EBITDA for the fourth quarter was $428 million, compared to $386 million in the prior year period, with a margin of 13.1%, up from 12.1% [16][17] - Cash flows from operations were $216 million for the fourth quarter, up from $90 million in the fourth quarter of 2023, and $480 million for the full year of 2024, consistent with guidance [19][20] Business Line Data and Key Metrics Changes - Same store admissions increased by 3.2%, adjusted admissions by 2.7%, and surgeries by 1.3% for the full year 2024 [7] - Same store emergency department visits were up 1% and surgeries were up 0.9% in the fourth quarter [16] - Same store ambulatory surgery center cases increased by 14% last year [8] Market Data and Key Metrics Changes - The company completed divestitures in Cleveland, Tennessee, and Statesboro, North Carolina, with plans for additional divestitures expected to generate over $1 billion in total proceeds [10][22] - The net debt to trailing adjusted EBITDA improved to 7.4 times, down from 7.9 times at the end of 2023 [22] Company Strategy and Development Direction - The company is focused on expanding outpatient access, including primary care, specialty practices, and urgent care centers, with significant capital investments [7][15] - The implementation of a new ERP system is expected to drive efficiencies and reduce costs, with estimated savings of $40 million to $60 million in 2025 [23] - The company anticipates further expansion of internally managed hospital-based provider services in 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in payer downgrades and denials, which had been a troubling trend for healthcare providers [11][17] - The company expects organic growth of $75 million to $100 million in 2025, with net revenue guidance of $12.2 billion to $12.6 billion [23] - Management expressed confidence in the approval of directed payment programs in New Mexico and Tennessee, which could add an incremental $100 million to $125 million to annual EBITDA [24][50] Other Important Information - The company experienced a $10 million impact from a hurricane in Q4, with one hospital still shut down as a result [74] - The company is in discussions for additional strategic divestitures expected to be announced soon [22] Q&A Session Summary Question: Can you help bridge 2024 to 2025 guidance? - Management provided a high-level bridge starting with 2024 EBITDA of $1.54 billion, accounting for reductions from divestitures and adding organic growth to reach the midpoint of 2025 guidance [27][28] Question: What are the strategic moves expected moving forward? - Management highlighted ongoing investments in core portfolio growth, including outpatient and procedural capacity expansions, and noted that there are still investable opportunities in the pipeline [30][33] Question: Can you quantify the continued hurricane impact in Q4? - The hurricane impact was as expected at $10 million, with one hospital shut down for the entire quarter [74]

Financial Data and Key Metrics Changes - In 2024, net sales totaled $1.473 billion, slightly down from 2023, impacted by a nearly 6% decline in foot traffic and existing home sales at 30-year lows [17][55] - Adjusted EBITDA for 2024 increased 10.2% to $241.8 million, with a margin of 16.4%, compared to 14.9% a year ago [59][70] - Adjusted gross margins improved by 390 basis points to 48.1% for 2024, driven by operating efficiencies and a higher margin product mix [19][55] Business Line Data and Key Metrics Changes - The Hardware and Protective Solutions (HPS) segment saw a 23% increase in adjusted EBITDA with flat top-line results, demonstrating strong customer value [21] - Robotics and Digital Solutions (RDS) is expected to return to growth in 2025, with new strategies and machine rollouts enhancing revenue potential [45][111] Market Data and Key Metrics Changes - Existing home sales fell to 30-year lows, contributing to a 5-point reduction in market volume for Hillman in 2024 [18] - The company anticipates a return to 2% to 3% volume growth in the market, which is crucial for achieving organic top-line growth of 5% to 6% [27][69] Company Strategy and Development Direction - The company aims to grow to $2 billion in net sales over the next three to five years, focusing on core business growth and strategic acquisitions [26][29] - Investments in technology, including cloud migration and AI, are prioritized to enhance operational efficiency and customer service [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in 2025, despite current market pressures, and emphasized readiness for future market improvements [40][76] - The company is confident in its ability to navigate macroeconomic challenges and maintain profitability through strategic initiatives [39][41] Other Important Information - Hillman made two acquisitions in 2024, Koch Industries and Intex DIY, which are expected to provide organic growth opportunities [14][15] - The company has paid down over $900 million of debt in the past four years, improving its balance sheet [24][63] Q&A Session Summary Question: Can you break out organic growth in Q4 by price and volume? - Management indicated that price was down just over 1%, with volume making up the remainder of the growth calculation [80] Question: Why should MinuteKey 3.5% drive sustainable growth in RDS? - Management highlighted the expansion into new markets and improved machine capabilities as key drivers for growth [84][87] Question: How did December trends look, and what is expected in Q1? - December was pressured, but Q1 has stabilized, aligning with expectations from Q4 [96] Question: How are tariffs being managed? - Management plans to handle tariffs similarly to past experiences, ensuring pricing adjustments are made as necessary [98][102] Question: What is the outlook for the Canadian business? - The Canadian market is facing pressures, but new business wins are helping to offset these challenges [127][130]

Financial Data and Key Metrics Changes - Free cash flow in Q4 2024 fell short of expectations, primarily due to significant receivables in Mexico and accelerated milestone payments in Saudi Arabia [7][30] - Adjusted EBITDA for the fourth quarter totaled $221 million, a slight decrease from $222 million in the previous quarter [45] - Revenue from operations for Q4 was $730 million, a sequential reduction of $2 million [42] Business Line Data and Key Metrics Changes - U.S. drilling segment revenue declined by $13 million sequentially, or 5.2%, driven by a reduced rig count in the Lower 48 market [42] - Rig Technologies segment revenue reached $56.2 million, up $10.4 million or 22.6%, driven by increased deliveries of capital equipment and parts sales in the Middle East [45] - Technology-focused businesses, NDS and RigTech, generated combined EBITDA of over $43 million, with NDS's gross margin exceeding 54% in the quarter [28][49] Market Data and Key Metrics Changes - The average rig count in the Lower 48 averaged 66, a decrease of two rigs [42] - International drilling revenue was $371 million, an increase of $2.8 million, despite suspensions in Saudi Arabia [44] - The average daily gross margin for international operations was approximately $16,700, a decrease of $400 from the previous quarter [48] Company Strategy and Development Direction - The company aims to grow contributions from CapEx light segments, with NDS's contribution increasing to 19.5% of consolidated EBITDA [13] - The strategy includes a focus on international markets, with a strong pipeline of additional tenders and rig deployments expected in 2025 [10][11] - The merger with Parker Wellbore is anticipated to provide significant strategic and financial benefits, with expected annualized cost synergies of at least $35 million in 2025 [34][60] Management's Comments on Operating Environment and Future Outlook - Management expressed a bullish outlook for international markets, particularly in Saudi Arabia, where natural gas activity is expected to expand [36][75] - The U.S. market remains sluggish, with limited indications of a near-term recovery in the Lower 48 drilling rig market [39] - The company anticipates a flat year in U.S. markets but growth in international markets and drilling solutions [52] Other Important Information - Capital expenditures for Q4 were $241 million, with a forecast of $710 million to $720 million for 2025 [51][54] - The company expects to generate approximately $150 million of free cash flow outside SANAD, which will be used to reduce gross debt [67][68] Q&A Session Summary Question: Clarification on free cash flow and debt reduction - Management indicated that free cash flow generation outside SANAD is expected to be around $150 million, which will be allocated to reducing gross debt [67][68] Question: Outlook on international rig count and releases - Management believes that rig count reductions in Saudi Arabia may be complete, with continued investment in new builds [70][76] Question: Working capital and cash taxes outlook - Management expects collections from Mexico to be sorted out in the first half of 2025, with working capital remaining under control [85][88] Question: Business climate in Argentina - The company has implemented a new operating model in Argentina to improve cash extraction, which has been well received by customers [89][90] Question: Full year 2025 guidance and G&A outlook - Management is working to reduce G&A costs and expects operational improvements to lead to higher EBITDA than in 2024 [97][98]