Financial Data and Key Metrics Changes - For Q4 2024, global system-wide restaurant sales were $1.23 billion, down approximately 8% in constant currency, primarily due to an additional week of operations in the prior year [19] - North America comparable sales decreased by 4% in Q4, showing a 120 basis points sequential improvement from Q3 [19] - Adjusted operating income for Q4 was $37 million, down $10 million from the previous year, with an adjusted operating income margin of 7%, down from 8.3% in 2023 [24][25] Business Line Data and Key Metrics Changes - Company-owned restaurant revenue decreased by $18 million in Q4 compared to the prior year, driven by a decline in international and domestic comparable sales [23] - International comparable sales increased by 2% year-over-year in Q4, with strong performance in key markets like the Middle East [22][48] Market Data and Key Metrics Changes - North America average unit sales were approximately $1.1 million in 2024, with a focus on increasing market share through strategic new restaurant development [14] - Internationally, nearly 200 new restaurants were opened in 2024, with expectations to open a similar amount in 2025 [15] Company Strategy and Development Direction - The company is focusing on core product innovation, enhancing marketing messages, and investing in technology to improve customer experience and operational efficiency [6][7] - Strategic priorities include franchisee profitability and operational excellence, with a goal to increase market share through new restaurant development [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2025, highlighting sequential improvement in sales trends and opportunities for growth despite ongoing challenges [5][6] - For 2025, the company expects system-wide sales to increase by 25% compared to 2024, with North America comparable sales anticipated to be flat to up 2% [27] Other Important Information - The company plans to invest up to $25 million in marketing in 2025, focusing on both corporate and franchise markets [12][58] - The loyalty program has been revamped, with approximately 50% of loyalty orders now redeeming rewards, up from 21% a year ago [13][90] Q&A Session Summary Question: Industry expectations for 2025 and performance relative to the industry - Management acknowledged a value-focused environment and expects the pizza category to be flat to slightly down, but believes initiatives in loyalty and marketing will help gain market share [37][38] Question: International growth and market penetration - Management emphasized a focus on nine key international markets, indicating that they are not near saturation and see significant growth potential [44][48] Question: EBITDA guidance and investment breakdown - Management outlined that the EBITDA guidance for 2025 includes significant investments in marketing and franchisee support, with a focus on balancing value perception and franchisee profitability [54][58] Question: Ticket improvement expectations - Management expects ticket improvement driven by a return to a traditional pricing strategy and new product innovations [71][72] Question: Operations and menu simplification - Management reported progress in simplifying operations by removing low-performing SKUs and focusing on core menu items to enhance pizza quality [80][81]

Financial Data and Key Metrics Changes - The company reported record quarterly net sales, adjusted net income, and adjusted EBITDA for Q4 2024, with adjusted EBITDA of $47.9 million, a 47% increase year-over-year [8][13][26] - Full year net sales were relatively flat at $1.3 billion, with adjusted EBITDA for the year at $111.8 million, a 1.6% increase [11][13][27] - Adjusted EBITDA margin increased by 360 basis points to 13.3% in Q4, while full year adjusted EBITDA margins increased by 40 basis points to 8.6% [13][27] Business Line Data and Key Metrics Changes - The Infrastructure Solutions segment saw strong net sales driven by capital equipment and aftermarket parts, with a 4.6% increase in net sales for the year [28] - The Material Solutions segment faced challenges with lower capital equipment sales due to high interest rates and dealer destocking, although aftermarket parts sales remained stable [9][30] - Adjusted EBITDA margins for the Infrastructure Solutions segment reached a record 21.3% in Q4, while the Material Solutions segment's performance was negatively impacted by lower sales volumes [28][30] Market Data and Key Metrics Changes - Domestic funding for infrastructure projects remains strong, with states committing over $180 billion in highway and bridge formula funds for new projects [20] - The total value of state and local government highway and bridge contract awards increased to nearly $121 billion in 2024, up from $114.6 billion in 2023 [20] - The company sees international markets as opportunities for growth, with strong brand recognition but modest market share [22][23] Company Strategy and Development Direction - The company is focused on operational excellence, procurement efforts, and exploring inorganic growth opportunities as part of its capital allocation priorities [14][33] - New product launches and advanced digital integrations are planned for 2025, with a strong emphasis on customer engagement and satisfaction [18][36] - The company aims to leverage its strong balance sheet to fund growth and capitalize on multiyear federal and state funding for infrastructure [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer expectations for 2025, with expectations of second-half tailwinds [36] - Concerns over interest rate reductions persist, but there are positive signs of inventory reductions and order intake in early 2025 [37][50] - The company anticipates adjusted EBITDA in the range of $105 million to $125 million for 2025, with a seasonal distribution of earnings expected [33] Other Important Information - The company generated positive free cash flow of $32.1 million in Q4 due to profitable sales and effective working capital management [32] - Approximately 80% of net sales are domestic, with less than 15% of purchases sourced from China, mitigating some tariff risks [15] Q&A Session Summary Question: Progress on manufacturing inefficiencies - Management noted steady improvement in manufacturing efficiencies, with Q4 showing one of the lowest inefficiencies in recent times [44][46] Question: Normalized backlog levels for Infrastructure Solutions - Management indicated strong order intake for asphalt and concrete plant equipment, expressing confidence in the Infrastructure Solutions segment [51][52] Question: Importance of bonus depreciation for orders and backlog - Management acknowledged that reinstating bonus depreciation would significantly benefit smaller customers and potentially improve order and backlog levels [56] Question: Impact of interest rates on the mobile market - Management highlighted that while elevated interest rates have posed challenges, there are signs that customers are adapting and beginning to replace aging equipment [59][60]

Rogers (ROG) Q4 2024 Earnings Call February 19, 2025 05:00 PM ET Company Participants Steve Haymore - Director, Investor RelationsColin Gouveia - President and CEOLaura Russell - SVP & CFOJeremy Routh - Equity Research AssociateBryan Maher - Managing DirectorNone - Executive Operator Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Rogers Corporation Fourth Quarter Year End twenty twenty four Earnings Conference Call. I'll now tu ...

ALWAYS INNOVATING FOR A BETTER FUTURE 2024 INVESTOR PRESENTATION CAUTIONARY STATEMENT This document contains forward-looking statements regarding future events and our future results within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "seek," "goal," "expect," "forecast," "intend," "continue," "outlook," "plan," "project," "target," "strive," "can," "could," "may," "should," "will," "would," variations of such words, and similar expr ...