Core Insights - PetMed Express, Inc. has appointed Peter Batushansky to its Board of Directors, effective April 09, 2025, marking the third independent director added since 2024 [1][2] - Dr. Gian Fulgoni, a longtime board member and former Chairman, will retire at the 2025 annual shareholders' meeting [1][2] - The company is undergoing a leadership transformation, with recent appointments including Leslie C. G. Campbell as Chairman and Sandra Campos as CEO [2][3] Company Strategy and Leadership - The addition of Mr. Batushansky is part of the company's strategy to enhance board composition and support its transformation plan aimed at driving shareholder value [2][3] - The board will consist of seven directors, six of whom are independent, with three new members added since 2024 [2] - Mr. Batushansky's experience in retail, pet, and healthcare sectors is expected to align with the company's ambitions to expand its business in the pet wellness ecosystem [3][4] Background of New Board Member - Mr. Batushansky has over 20 years of experience in various industries, including roles as CEO of Allivet and WebEyeCare [4][5] - Currently, he is a Partner at L2 Capital Partners, contributing to his extensive background in private equity [5][6] Company Overview - PetMed Express, founded in 1996, is a leader in the consumer pet healthcare sector, operating as a national online retailer [7] - The company offers a range of pet health products, including pharmaceuticals and supplements, through its websites [7]

Financial Data and Key Metrics Changes - The company reported a fourth quarter comparable RevPAR of $305, reflecting a 1.9% increase over the prior year quarter, and a comparable total hotel revenue increase of 5.3% [10][11] - For the full year, the company reported a net loss attributable to common stockholders of $50.9 million or $0.77 per diluted share, and AFFO per diluted share of $0.21 [27][28] - Adjusted EBITDAre for the quarter was $30.2 million and for the full year was $157.6 million [27] Business Line Data and Key Metrics Changes - Group revenue increased by 7% in the fourth quarter, indicating a resurgence in group bookings and events [11] - The luxury resort portfolio achieved a comparable RevPAR of $515, a 1.3% increase over the prior year period, with combined comparable hotel EBITDA of $31 million, a 4.1% increase [13] - Urban hotels achieved comparable RevPAR growth of 3.3% in the fourth quarter, with strong performance across all demand segments [13][14] Market Data and Key Metrics Changes - The company noted that January RevPAR was impressive, with growth over the prior year, and excluding the Capital Hilton, portfolio RevPAR growth was still over 9% [14] - The company experienced fluctuations in the Los Angeles market due to recent events, but February saw a return to stable group bookings [24][25] Company Strategy and Development Direction - The company is in active discussions for refinancing a $193 million loan maturing in June, which will eliminate remaining debt maturities in 2025 [10] - The company plans to invest between $75 million and $95 million in capital expenditures in 2025 to enhance its luxury portfolio [51] - The company is focusing on optimizing revenue opportunities and enhancing guest experiences through strategic renovations and operational efficiencies [16][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of steady growth in resort markets, driven by historically low supply growth [71][72] - The company is encouraged by the positive performance in January and anticipates continued strength in group bookings and overall demand [68][69] - Management highlighted the favorable environment for hotel debt capital markets, which is becoming more attractive for borrowers [35] Other Important Information - The company redeemed approximately $80 million of non-traded preferred stock, representing about 17% of the original capital raise [22] - The company announced a quarterly stock dividend of $0.05 per share, equating to an annual yield of approximately 7.7% [33] Q&A Session Summary Question: Can you provide an update on capital expenditures in Tahoe and spending plans for 2025? - Management confirmed that Tahoe renovations are complete, with a small project planned for under $2 million in 2025 [58] Question: Is the company still restricted from repurchasing common stock? - Management confirmed that they are currently restricted from repurchasing common stock [61] Question: Can you elaborate on the RevPAR strength in January and its sustainability? - Management noted that January performance benefited from calendar shifts and capital investments, leading to broad-based demand [67][69] Question: What is the outlook for the transaction market regarding high-quality assets? - Management indicated strong interest from buyers and a positive reception for hotel sales, suggesting higher transaction volumes in the future [78][80]

Financial Data and Key Metrics Changes - In 2024, net revenues grew by 1.3% to a record $7 billion, driven by acquisitions and strong organic growth in inspection, service, and monitoring revenues [12][10] - Adjusted EBITDA margins expanded by 140 basis points to 12.7%, with adjusted free cash flow conversion improving from 69% in 2023 to 75% in 2024 [11][14] - Adjusted diluted earnings per share for Q4 2024 was $0.51, a 16% increase compared to the prior year [23] Business Line Data and Key Metrics Changes - Safety Services reported revenues increased by 13% to $1.40 billion, with organic growth of 4.7% driven by double-digit inspection revenue growth in the U.S. Life Safety business [24][25] - Specialty Services revenues decreased by 11.8% to $463 million, impacted by divestitures and project delays [27] - Adjusted gross margin for Safety Services was 35.7%, while Specialty Services saw a decrease to 17.3% [25][28] Market Data and Key Metrics Changes - The company achieved double-digit growth in inspection revenues in the U.S. Life Safety business for the year, marking the 18th consecutive quarter of growth in this area [13] - The international business has improved significantly, with less than 5 loss-making branches at the start of 2025, down from over 50 at the time of acquisition [20] Company Strategy and Development Direction - The company aims to increase the mix of inspection, service, and monitoring revenues from 54% in 2024 to a long-term target of 60% [11] - The focus remains on disciplined customer and project selection, pricing improvements, and strategic M&A, particularly in the fire, life safety, and elevator services sectors [16][17] - The company plans to build a $1 billion-plus elevator and escalator services platform through organic growth and M&A [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to traditional rates of organic growth in 2025, driven by strong inspection, service, and monitoring revenues [18][36] - The company is prepared to manage economic fluctuations due to its variable cost model, which is approximately 70-75% variable [52] - Management noted that project delays experienced in 2024 are mostly behind them, with improved planning and resource deployment for 2025 [56][60] Other Important Information - The company has approximately $400 million remaining on its share repurchase program, reflecting its strong free cash flow generation [15] - The company successfully remediated all prior year material weaknesses in internal controls over financial reporting as of December 31, 2024 [30] Q&A Session Summary Question: Key variables driving EBITDA margin expansion - Management highlighted disciplined customer and project selection, improved revenue mix, pricing, procurement opportunities, and Chubb value capture as key drivers for EBITDA margin expansion [39][40][41][42] Question: Managing business through economic downturns - Management emphasized building resilience through a focus on inspection, service, and monitoring, allowing for better project selection and cost management [47][49][50] Question: Status of project delays - Management indicated that most project delays from the previous year are resolved, with ongoing work progressing as planned [60][62] Question: M&A expectations for the year - The company plans to spend approximately $250 million on bolt-on M&A, focusing on fire, life safety, and elevator services, while remaining disciplined in its approach [82][84][86] Question: Revenue guidance drivers - Management noted that mid- to upper single-digit growth in service revenue and low to mid-single-digit project revenue growth are foundational for achieving revenue guidance [99][100][101]

Financial Data and Key Metrics Changes - Hanesbrands reported a 4% year-over-year growth in sales for the fourth quarter, with net sales increasing 4.5% to $888 million [34][14] - Gross margin improved by 580 basis points to 41.4%, while operating margin expanded by 390 basis points to 11.8% [14][15] - Earnings per share (EPS) increased by 670% [15] - The company paid down over $1 billion in debt, reducing leverage by nearly 2 turns [15][40] Business Line Data and Key Metrics Changes - In the U.S., net sales increased by 3% year-over-year, driven by innovation and increased brand investments [34][35] - The International segment saw a 6% increase in net sales on a constant currency basis, with growth in each region [35] - The Champion Japan business has been reclassified to discontinued operations, affecting comparability with previous guidance [4][5] Market Data and Key Metrics Changes - The Australian business experienced growth driven by better inventory management and strong innovation [35][106] - The company noted no significant shifts in ordering patterns among major retail accounts, maintaining strong relationships across channels [78][123] Company Strategy and Development Direction - Hanesbrands is transitioning from a global holding company to a global operating company, focusing on consumer-centric innovation and streamlined operations [16][18] - The company aims to expand margins to over 15% and generate more than $400 million in annual operating cash flow [21][23] - The strategy includes leveraging competitive strengths and focusing on new revenue streams, particularly in the Printwear channel [22][111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive organic constant currency sales growth in 2025, despite a challenging consumer environment [50][51] - The company anticipates further margin expansion in 2025, driven by cost savings and improved operational efficiencies [22][39] - Management highlighted a strong foundation and momentum entering 2025, with a commitment to shareholder value creation [13][24] Other Important Information - The company has initiated a leadership succession plan, with the current CEO planning to step down after five years [24][66] - Management emphasized the importance of transparency during the transition and the strength of the current leadership team [66][67] Q&A Session Summary Question: Confidence in driving positive sales in 2025 and revenue opportunities - Management expressed confidence in achieving 1% organic constant currency growth, supported by innovation and brand investments [50][51] Question: Visibility and control over future margin expansion - Management indicated strong visibility to cost and savings, expecting another step up in operating margins in 2025 [54][59] Question: Elimination of stranded costs associated with Champion - Management stated that stranded costs would be largely eliminated by the end of 2025, contributing to margin expansion [72][73] Question: Guidance breakdown for U.S. vs. international business - Management expects flat growth in the U.S. and low-single-digit growth internationally, with no major shifts in ordering patterns [77][78] Question: Gross margin cadence throughout the year - Management anticipates a stronger gross margin in the first half of the year, with some stabilization expected in the back half [81][84] Question: Cash flow build for the year - Management outlined factors contributing to the expected $350 million in operating cash flow, including profit growth and lower cash interest [95][100] Question: International revenue outlook and inventory position - Management clarified that growth in Australia is driven by volume rather than inventory fill, with a focus on consumer engagement and innovation [105][106] Question: Impact of potential retaliatory tariffs on sales into Mexico and Canada - Management confirmed no impact from tariffs, as products are not sold from the U.S. into those countries [115][117] Question: Consumer trends and channel shifts - Management noted that the business follows macro channel trends closely, with strong relationships across various retail channels [123]