The Chefs' Warehouse (CHEF) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 Greetings, and welcome to the Chef's Warehouse First Quarter twenty twenty five Earnings Conference Call. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Alex Alders, General Counsel, Corporate Secretary and Chief Government Relations Officer. Please go ahead, sir. Speaker1 Thank you, operator. Good morning, everyone. With me on today's call are Chris Pappas, Founder, ...

Core Viewpoint - Freight Technologies, Inc. (Fr8Tech) is strategically investing in Official Trump Tokens ($TRUMP) as part of its digital asset strategy, marking it as one of the first public companies to do so [1][2]. Group 1: Financial Strategy - Fr8Tech has entered into an agreement for the issuance of convertible notes with a facility of up to USD $20 million, specifically for purchasing Official Trump Tokens [1]. - The company plans to initially issue notes amounting to USD $1 million in the first tranche, with the potential for an additional USD $19 million in subsequent drawdowns [2]. Group 2: Market Positioning - The acquisition of FET Tokens, valued at approximately USD $8 million, is part of Fr8Tech's strategy to diversify its crypto treasury alongside the purchase of $TRUMP tokens [2]. - Fr8Tech aims to promote productive commerce between the United States and Mexico, highlighting Mexico as the top trading partner for the U.S. [2]. Group 3: Company Overview - Fr8Tech is a technology company focused on optimizing and automating supply chain processes through AI and machine learning, offering a range of proprietary platform solutions [4]. - The company's portfolio includes various services such as Fr8App for cross-border shipping, Fr8Now for less-than-truckload shipping, and Fleet Rocket for transportation management [4].

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]

Financial Data and Key Metrics Changes - Subscription revenue for Q4 FY 2025 was $133 million, slightly above the guidance range of $131 to $134 million, but a year-over-year decline of 1% was noted. On a constant currency basis, the decline was only 0.5% [33] - Total revenue for Q4 FY 2025 was $152.7 million, reflecting a decline of 3.6% year-over-year. For the full fiscal year, total revenue was $607.7 million, a decrease of 4.2% compared to the previous year [34][35] - The net loss for Q4 FY 2025 was $268.5 million, which included a noncash goodwill impairment charge of $245 million. The full fiscal year net loss was $725.8 million, also impacted by goodwill impairment charges [38] Business Line Data and Key Metrics Changes - Professional services revenue in Q4 FY 2025 was $19.7 million, a year-over-year decline of 18.3%. For the full fiscal year, professional services revenue was $79.7 million, down 18.4% [34] - Subscription bookings in Q4 FY 2025 were the highest quarterly total since the end of FY 2023, indicating positive momentum in the go-to-market strategy [22][27] Market Data and Key Metrics Changes - E2Open's global trade application suite is positioned as a critical asset for clients navigating tariff volatility, with significant updates made to the global trade content database [17][18] - The company reported that its end-to-end platform reached over half a million interconnected supply chain partners, the highest number in its history [12] Company Strategy and Development Direction - The company is focused on improving client retention, enhancing the client experience, and laying the groundwork for durable growth, with a commitment to long-term value creation [6][7] - E2Open is investing in product innovation, particularly in artificial intelligence and machine learning, to enhance its software capabilities and maintain competitive advantage [14][15] - The strategic review initiated last year is ongoing, with no further comments provided during the call [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for sustainable growth, citing improvements in retention and subscription bookings momentum [43] - The company expects FY 2026 subscription revenue to range from $525 million to $535 million, indicating a potential return to positive growth [39][40] Other Important Information - The company has made significant progress in reducing customer support backlog by over 60% and improving client satisfaction metrics [6][10] - Adjusted EBITDA for Q4 FY 2025 was $56.3 million, reflecting a margin of 36.9%, with continued strong margins indicating operational efficiency [36][37] Q&A Session Summary Question: Fiscal year 2026 revenue guidance and subscription side linearity - Management indicated that subscription revenue guidance reflects a conservative approach, expecting steady improvement similar to FY 2025 [49][50] Question: Professional services growth confidence - Management noted a conservative view on professional services revenue but highlighted improvements in bookings and backlog [50] Question: Investments in product and commercial business - Management discussed targeted investments in product differentiation and client-specific data platforms to enhance service delivery [51][53] Question: Customer conversations regarding global trade - Management emphasized the importance of supporting clients through tariff complexities and the potential for future opportunities as conditions stabilize [61][64] Question: Demand environment in trucking and freight - Management reported stable conditions in both road and ocean transportation without significant shifts [66] Question: Factors driving first quarter subscription revenue guidance down - Management explained that higher churn is expected in Q1 due to elevated renewals, which is a seasonal trend [70] Question: Willingness to invest in Salesforce structure and headcount - Management confirmed a commitment to invest in client-facing organizations, including commercial and product teams [72] Question: Legacy customer satisfaction and churn normalization - Management indicated that they are in the process of addressing past issues and expect to normalize churn levels in the coming quarters [77][80]

Financial Data and Key Metrics Changes - First quarter revenue was $632 million, down 4% sequentially and 6% year over year [10][11] - Non GAAP earnings per share was $0.52, above the midpoint of guidance [6][10] - Non GAAP gross margin was 10.1%, a 30 basis point decrease quarter over quarter but a 10 basis point increase year over year [10][13] - Non GAAP operating margin was 4.6%, down 50 basis points sequentially and 30 basis points year over year [10][11] Business Line Data and Key Metrics Changes - Semi cap revenue grew 18% year over year but decreased 2% quarter over quarter [11][19] - A and D sector revenue was up 15% year over year and 4% quarter over quarter [11][22] - Industrial revenue was down 2% quarter over quarter due to demand softness [11][21] - Medical revenue decreased 12% quarter over quarter, reflecting ongoing demand softness [12][22] - AC and C revenue decreased 12% quarter over quarter due to timing-related weaknesses [12][22] Market Data and Key Metrics Changes - The company has a significant U.S. manufacturing footprint at 36% and over 55% in North America [8][25] - Demand in the semi cap sector is expected to continue growing despite tariff uncertainties [19][20] - Medical sector recovery is anticipated in the second half of 2025 as inventory levels normalize [22][64] Company Strategy and Development Direction - The company is focused on optimizing supply chains for customers amid tariff-related uncertainties [5][27] - Continued investment in strategic growth areas, including a new facility in Penang, Malaysia [20][96] - The company is evaluating M&A opportunities that align with strategic plans while maintaining a focus on organic growth [28][102] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are short-term risks due to global macroeconomic uncertainties, there are also mid to long-term opportunities [25][27] - The company expects to deliver sequential growth throughout the year, barring a recession caused by tariffs [27][28] - Management expressed confidence in returning to year-over-year growth in the second half of 2025 [16][40] Other Important Information - The company generated $27 million in free cash flow in the quarter, marking the eighth consecutive quarter of positive free cash flow [6][14] - Cash balance as of March 31 was $355 million, a year-over-year increase of $59 million [14] - The company paid cash dividends of $6.1 million and repurchased $8 million of outstanding shares during the quarter [14] Q&A Session Summary Question: Are customer pauses and pull-ins creating a net headwind? - Management indicated that the situation is balancing out, with some customers pausing and others pulling in orders, leading to uncertainty but not a significant bias in either direction [31][32] Question: What is the impact of supply chain optimization on existing customers? - Management noted that some bids are taking longer due to customers evaluating their supply chains, elongating the cycle for new bookings [33][34] Question: Where is the traction seen in the industrial sector? - Management highlighted a balance of new and existing customers, with strong follow-on business and new growth in automation solutions [36] Question: Is the expected rebound in medical driven by channel replenishment or new program launches? - Management indicated that both factors are contributing, with customers working through inventory and new competitive takeaways expected to drive growth [56][57] Question: What is the expected tax rate for the second half of the year? - Management projected a slight drop in the tax rate, estimating around 24% for the year [60] Question: How quickly can the company pivot or launch new programs? - Management stated that moving a customer to an existing facility is challenging, but new programs can ramp significantly in about six months if leveraging existing manufacturing knowledge [82] Question: Are there opportunities to acquire a customer's manufacturing facility? - Management expressed openness to discussions about taking over facilities if they align with existing operations but emphasized a preference against acquiring facilities at a premium [88][90]

Global Industrial Company (GIC) Q1 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants Mike Smargiassi - Founding PartnerAnesa Chaibi - CEOTex Clark - Senior Vice President and Chief Financial OfficerMichael Francis - Equity Research Associate Conference Call Participants Anthony Lebiedzinski - Senior Equity Research AnalystMatt Kaelberer - Research Analyst Operator Industrial Company First Quarter twenty twenty five Earnings Call. All participants will be in a listen only mode. After today's ...

Financial Data and Key Metrics Changes - The company reported sales of $964 million in Q1 2025, a decrease of 2% year-over-year, and earnings of $0.95 per share, down 5% compared to the prior period [11][12] - North America segment sales were $749 million, also a 2% decrease, with segment earnings of $185 million, down 7% year-over-year [11][12] - The overall segment margin was 24.7%, a decrease of 120 basis points year-over-year, primarily due to lower water heater volumes and continued strategic investments [11][12] Business Line Data and Key Metrics Changes - North America water heater sales declined by 4% in Q1 2025, driven by lower volumes, while boiler sales increased by 10% compared to Q1 2024 [7][9] - North America water treatment sales saw slight growth, offsetting retail declines as the company shifted focus away from that channel [9] - Rest of the world segment sales were essentially flat at $227 million, with earnings increasing by 15% due to expense management [12][13] Market Data and Key Metrics Changes - In China, third-party sales decreased by 4% in local currency, reflecting ongoing economic weakness and soft consumer demand [7][10] - The company anticipates a 5% to 8% decrease in sales in China for 2025, with a focus on maintaining premium brand positioning despite market challenges [24][25] Company Strategy and Development Direction - The company is focused on managing costs and optimizing production schedules to ensure efficiency, particularly in response to tariff-related cost increases [8][21] - A significant initiative for 2025 includes leveling production across the year to enhance plant efficiencies [8] - The company is actively pursuing acquisitions and has a robust pipeline, with a planned share repurchase of $400 million for the full year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the volatile macro environment, emphasizing the stability provided by core water heater and boiler businesses [30][31] - The company is cautious about the near-term market outlook, particularly in China, where consumer confidence remains low [25][71] - The guidance for 2025 EPS remains unchanged at $3.60 to $3.90 per share, despite uncertainties related to tariffs and input costs [15][16] Other Important Information - The company repurchased approximately $121 million worth of shares in Q1 2025, front-loading part of its annual repurchase outlook [14] - The company opened a new commercial R&D testing lab in Lebanon, Tennessee, aimed at enhancing product development and engineering capabilities [29] - A. O. Smith was recognized as one of the world's most ethical companies for the second consecutive year, highlighting its commitment to ethical business practices [30] Q&A Session Summary Question: Demand destruction around pricing actions - Management indicated that pricing actions are expected to cover costs, with a stable replacement business providing some insulation against demand destruction [35][36] Question: Clarification on tariff exposure - The 6% to 8% tariff exposure includes costs related to imports, particularly from China, and is expected to impact the cost of goods sold [38][40] Question: Sequential demand expectations - Management expects a relatively normal seasonal demand pattern, with no significant changes anticipated in order rates [45][46] Question: Pricing actions and market dynamics - Pricing actions have been communicated to customers, and the company is working closely with them to manage the implications of tariffs and pricing changes [92][93] Question: China market outlook - The company is cautious about the Chinese market, focusing on consumer confidence as a key driver for recovery, rather than solely on the housing market [71][77]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2025 was $1.39, reflecting a 7.5% core sales growth driven by Aerospace and Electronics and Process Flow Technologies [5][28] - Core orders increased by 16% in the quarter, primarily due to strength in Aerospace and Electronics [5][28] - Adjusted operating profit rose by 18%, supported by volumes, solid net pricing, and productivity [28] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $249 million, a 10% increase, with a record backlog of $960 million, up 21% year-over-year [29][30] - Total aftermarket sales in Aerospace and Electronics increased by 20%, with commercial aftermarket sales up 19% and military aftermarket up 24% [29] - Process Flow Technologies delivered sales of $309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [30][31] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][30] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% growth rate [17][30] - Process Flow Technologies is positioned to outgrow markets across cycles, focusing on higher growth end markets such as chemicals and pharmaceuticals [20][21] Company Strategy and Development Direction - The company aims to continue driving above-market growth through both organic means and acquisitions, with a strong balance sheet and $1.5 billion in M&A capacity [10][23] - The strategic focus includes investing in technology and new product development while maintaining operational excellence [21][27] - The company is actively pursuing new business opportunities and has a robust pipeline of potential acquisitions across various segments [24][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic challenges, reaffirming the full-year adjusted EPS outlook of $5.3 to $5.6 [6][27] - The company is prepared to adapt to changes in the economic environment, including inflationary pressures and supply chain dynamics [6][15] - Management highlighted the importance of maintaining a flexible and accountable operational structure to navigate uncertainties [15][27] Other Important Information - The company has not seen a slowdown in M&A activity despite macroeconomic challenges, indicating a strong pipeline of potential deals [24][87] - Recent leadership conferences focused on reinforcing best practices and driving growth initiatives across the organization [25][26] - The company expects to manage through potential demand fluctuations without losing sight of long-term goals [21][27] Q&A Session Summary Question: Can you clarify the updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [38] Question: Are there any notable items in the defense package that could drive growth? - Management sees broad exposure across defense platforms and anticipates strong demand in munitions and aircraft [44][45] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth split was roughly 50/50 between volume and price [51] Question: Are there any concerns about supply chain disruptions affecting project deliveries? - Management does not foresee significant disruptions, although some lead time extensions may occur [78] Question: How is the company managing tariff impacts on costs? - The estimated tariff impact is around $60 million for the year, which the company expects to mitigate substantially [95][96] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [98]

ArcBest (ARCB) Q1 2025 Earnings Call April 29, 2025 02:39 PM ET Speaker0 Good morning, and thank you for standing by. Welcome to the ArcBest First Quarter twenty twenty five Earnings Conference Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. As a reminder, this call is being recorded. I will now turn it over to Ms. Amy Mendenhall, Vice President, Treasury and Investor Relations. Please go ahead. Speaker1 Good morning, ...