Financial Performance - Net sales increased by 2% year-over-year to $322 million in Q1 2025[11] - Value-Added Sales adjusted for FX & Deconsolidation decreased by 1% year-over-year to $171 million in Q1 2025[11] - Adjusted EBITDA was $25 million with a 15% Value-Added Sales margin in Q1 2025[11] - Content per wheel increased by 33% since 2019, reaching $49.90 in Q1 2025[11] - Total debt decreased by $113 million year-over-year to $517 million in Q1 2025[11] - Net loss was $12.9 million in Q1 2025, compared to a net loss of $32.7 million in Q1 2024[29] Strategic Actions and Outlook - The company is in advanced discussions to recapitalize its balance sheet, aiming to reduce net leverage to below 2.5x[13] - Term lenders are providing a $70 million commitment to support working capital and liquidity[13] - The company is suspending its 2025 guidance due to a challenging macro environment and recent volume losses in North America[12, 13] Tariff Impact and Quote Activity - Customers in the EU and North America are seeking localization due to China and Morocco tariffs[13] - The company has seen a record year-to-date quotation activity for > 60 million wheels, which is 2x compared to 2024[13]

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First Quarter 2025 Financial Results May 9, 2025 CAUTIONARY STATEMENTS Forward-Looking Statements This Presentation has been prepared by Calumet, Inc. (the "Company," "Calumet," "we," "our" or like terms) as of May 9, 2025. The information in this Presentation includes certain "forward- looking statements." These statements can be identified by the use of forward-looking terminology including "may," "intend," "believe," "expect," "anticipate," "estimate," "forecast," "outlook," "continue" or other similar w ...

Financial Data and Key Metrics Changes - Revenue for Q1 was $650.7 million, down 5% year over year and 2% sequentially, primarily due to known NEMT contract attrition, lower build hours in PCS, and membership churn in monitoring [20][21] - Net loss for the quarter was $50.4 million, up from $22.3 million a year ago, mainly due to higher interest expense which rose to $38.8 million [21] - Adjusted net loss was $24.5 million or negative $1.71 per share, reflecting the exclusion of restructuring-related costs and amortization of intangibles [21] - Adjusted EBITDA was $32.6 million, essentially flat year over year but down sequentially, with key drivers including an $8 million impact from net NEMT contract development [21][22] Business Line Data and Key Metrics Changes - In NEMT, revenue was $449 million, representing 69% of total revenue, declining 6% year over year due to previously disclosed contract losses [22] - Average monthly members in NEMT declined 19% year over year and 20% sequentially, while utilization from the normalization of healthcare increased to 12% [22] - PCS contributed $181.8 million in revenue or 28% of total revenue, with revenue per hour rising 1.1% while service hours declined 2.1% due to expected seasonality [24] - Monitoring contributed $18.1 million in revenue, representing just 3% of total revenue but 16% of total adjusted EBITDA, with adjusted EBITDA at $5.2 million for a 29% segment margin [25] Market Data and Key Metrics Changes - The broader opportunity in the 2026 pipeline exceeds $500 million in potential contract value, with the company securing two new Medicaid managed care contracts worth approximately $52 million [6][7] - Retention remains a key performance priority, with four strategic agreements signed in Personal Care expected to generate 90,000 monthly service hours [9] Company Strategy and Development Direction - The company is focused on five strategic objectives: growing core customer relationships, digitizing and automating the Care Access platform, optimizing the operating model, increasing capital efficiency, and delivering high-impact client-centric supportive care [4][5] - The long-term vision is to become the digital infrastructure for supportive care, unifying fragmented benefits and delivering a coordinated member experience [19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in improving cash flow generation as contracts are restructured and working capital needs decrease [38] - The company is not issuing formal guidance for 2025 but is focused on executing measurable initiatives and communicating progress through clear KPIs [28] Other Important Information - The company launched a company-wide G&A reduction initiative targeting approximately $25 million in annualized savings [13][14] - The company is in the process of restructuring the organization to build a more tech-first model, adding talent in data, AI, and agile operations [12] Q&A Session Summary Question: Can you walk us through how we should be thinking about cash flow generation throughout the rest of the year? - Management indicated that EBITDA is driving cash flow and expects meaningful improvement in cash flow generation as the year progresses, particularly with contract restructuring [32][38] Question: Why did contract receivables increase despite overall revenue decline? - Management explained that the increase in accounts receivable was due to shared risk contracts that had not yet been converted, leading to a disconnect between revenue and receivables [39][40] Question: Is there a positive cash flow possibility in Q3? - Management confirmed that while Q2 and Q4 will see negative cash flows due to large debt payments, they feel good about cash flow generation for the rest of the year [51][53] Question: Can you elaborate on the G&A savings? - Management stated that the $25 million in G&A savings primarily comes from labor reductions in corporate and shared service areas due to increased operational efficiency [56][58]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $650.7 million, down 5% year over year and 2% sequentially, primarily due to known NEMT contract attrition, lower build hours in PCS, and membership churn in monitoring [20][21] - Net loss for the quarter was $50.4 million, up from $22.3 million a year ago, mainly due to higher interest expense which rose to $38.8 million [21] - Adjusted net loss was $24.5 million or negative $1.71 per share, reflecting the exclusion of restructuring-related costs and amortization of intangibles [21] - Adjusted EBITDA was $32.6 million, essentially flat year over year but down sequentially, with key drivers including an $8 million impact from net NEMT contract development [21][22] Business Line Data and Key Metrics Changes - In NEMT, revenue was $449 million, representing 69% of total revenue, declining 6% year over year due to previously disclosed contract losses [22] - Average monthly members in NEMT declined 19% year over year and 20% sequentially, while utilization from the normalization of healthcare increased to 12% [22] - PCS contributed $181.8 million in revenue or 28% of total revenue, with revenue per hour rising 1.1% while service hours declined 2.1% due to expected seasonality [24] - Monitoring contributed $18.1 million in revenue, representing just 3% of total revenue but 16% of total adjusted EBITDA, with adjusted EBITDA at $5.2 million for a 29% segment margin [25] Market Data and Key Metrics Changes - The broader opportunity in the 2026 pipeline exceeds $500 million in potential contract value, with the company experiencing a loss of a regional contract totaling $15 million in annual revenue [6][7] - In Indiana, referral volume increased by more than 45% year over year, while new Southeastern markets delivered sequential growth [9] Company Strategy and Development Direction - The company aims to grow and retain core customer relationships, digitize and automate the Care Access platform, optimize the operating model for simplicity and scale, increase capital efficiency, and deliver high-impact client-centric supportive care [4][5] - The long-term vision is to become the digital infrastructure for supportive care, unifying fragmented benefits and delivering a coordinated member experience [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenue was expected and reflects prior year customer transitions and market dynamics that are largely behind the company [20] - The company is focused on executing against measurable initiatives and communicating progress through clear objective KPIs and milestones, without issuing formal guidance for 2025 [28] Other Important Information - The company launched a company-wide G&A reduction initiative targeting approximately $25 million in annualized savings [14] - The net contracts receivable rose to $109 million, up from $95 million in Q4, due to expected billing timing [26] Q&A Session Summary Question: How should cash flow generation be modeled for the rest of the year? - Management indicated that EBITDA is driving cash flow and expects meaningful improvement in cash flow generation as the year progresses, particularly due to contract restructuring and working capital improvements [31][38] Question: Why did contract receivables increase despite a decline in revenue? - The increase in accounts receivable was attributed to the contract mix and shared risk contracts that have not yet been converted [39][40] Question: Is there a positive cash flow possibility in Q3? - Management acknowledged that due to large debt payments in Q2 and Q4, positive cash flow from operations may not be achievable in those quarters, but they feel good about cash flow generation for the year overall [51][54] Question: Can you elaborate on the G&A savings? - The $25 million in G&A savings primarily comes from labor efficiencies within corporate and shared service areas as the company continues to streamline operations [57][59]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $782 million, a decrease of 5% from Q1 2024, but 1% above the high end of guidance [8] - Net loss was $9 million in Q1 2025 compared to net income of $88 million in Q1 2024 [10] - Adjusted EBITDA was $160 million in Q1 2025, a decrease of 19% from Q1 2024 [10] - Total operating expenses were 1% below the low end of previously announced guidance [9] Business Line Data and Key Metrics Changes - Core advertising revenue for Q1 2025 was down 8% compared to Q1 2024, primarily due to the Super Bowl airing on different channels [18] - Political advertising revenue exceeded expectations, coming in at $13 million against a guidance of $2 million to $4 million [21] - Digital advertising revenue was up double digits, indicating growth in this segment [20] Market Data and Key Metrics Changes - Automotive advertising revenue was down in high single digits, reflecting ongoing macroeconomic uncertainties [18] - Categories linked to consumer discretionary spending, such as restaurants and department stores, were soft, while essential categories like education and financial services performed better [20] Company Strategy and Development Direction - The company is focused on reducing leverage and enhancing its balance sheet, with a top capital allocation priority being debt reduction [24] - There is a commitment to enhancing local content offerings and entering new sports rights agreements to increase relevance in local markets [12][13] - The company is exploring opportunities for mergers and acquisitions, particularly in creating new duopolies [30][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for a more favorable regulatory environment that could facilitate strategic transactions [34] - There is cautious optimism regarding the second half of the year, particularly in political advertising, despite overall uncertainty in the advertising market [50] - Management noted that the recent trade deal with the UK could stabilize the advertising market, which has been affected by uncertainties [51] Other Important Information - The company declared a quarterly dividend of $0.08 per share [12] - The Assembly Studios project is progressing, with multiple productions currently shooting and plans for future developments [15][69] Q&A Session Summary Question: What are the most attractive options for market expansion? - Management is actively pursuing various opportunities and is optimistic about potential regulatory changes that could allow for new duopolies [30][34] Question: How does the new regulatory environment affect affiliate negotiations? - Management is encouraged by the changing tone from regulators regarding local news and broadcasters, which may positively impact negotiations [37][62] Question: Are there any cancellations in advertising? - There are no cancellations, but there is hesitancy in booking ads due to economic uncertainty [48] Question: What is the outlook for political advertising? - Political ad buys are currently strong, with significant orders coming in, indicating a positive trend for the upcoming election cycle [58] Question: What is the status of Assembly Studios? - Assembly Studios is currently around 75% to 80% leased, with ongoing inquiries and productions actively shooting [75][69]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of approximately $18.5 million for the first quarter, representing a growth of nearly 20% year-over-year despite some unexpected challenges [3][4] - The company successfully negotiated refinancing of existing bonds, which is expected to provide greater flexibility going forward [5][6] Business Line Data and Key Metrics Changes - The interactive business experienced significant growth, with revenue and EBITDA increasing by 497% and 979% respectively compared to Q1 2024, and margins expanded from 54% to 64% [7][8] - The leisure business was impacted by the timing of the UK Easter holiday, which shifted from Q1 to Q2, affecting performance metrics [4][21] Market Data and Key Metrics Changes - The U.S. market for the company grew by 90% in Q1 against an underlying market growth of about 20%, indicating strong performance driven by content quality and account management [8][11] - The virtual sports business showed a year-over-year decline in EBITDA but is expected to stabilize and return to growth by the second half of the year [9][10] Company Strategy and Development Direction - The company aims to reduce capital intensity by divesting the Holiday Park business and restructuring the pub business to focus on capital-light operations [6][7] - The strategy includes increasing annual CapEx to around $25 million, primarily for content-related expenses, while focusing on the rapidly growing digital business [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the need for new state revenue sources in the U.S. and the company's positioning to benefit from this trend [8][9] - The management is cautiously optimistic about achieving EBITDA margins comfortably over 40% following the sale of the Holiday Park business [30][31] Other Important Information - The company is actively expanding its digital offerings, including launching new games and entering new markets such as West Virginia and South Africa [12][19] - The company is also focusing on the lottery space, with plans to launch a lottery game in Virginia [19] Q&A Session Summary Question: Impact of tariffs in the U.S. - Management indicated that tariffs are not a significant issue, with potential benefits from selling into Canadian markets [25][26] Question: Path to achieving 40% EBITDA margin - Management believes the sale of the Holiday Park business will guarantee EBITDA margins comfortably over 40% [30][31] Question: Stabilization of virtual sports business - Management acknowledged volatility but noted stabilization trends and expressed confidence in returning to growth [36][39] Question: Details on debt refinancing terms - The new debt deal aims for flexibility and a lower interest rate, with expectations of reduced interest expenses as leverage decreases [41][42] Question: Adoption rate of virtual sports in Brazil - Management is optimistic about the Brazilian market, noting strong early performance from localized content [48][52] Question: Trends outside the U.S. - The UK market is experiencing some softness, while iGaming continues to grow; Greece and Italy markets are relatively flat [56][60] Question: Contribution of digital to EBITDA - Management expects digital contributions to be at least at previous levels or higher by year-end, driven by strong performance in the interactive segment [64][66]

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q1 2025 were $485 million, down 3% year over year, and essentially flat on an organic basis [24] - Adjusted EBITDA from continuing operations was $37.2 million, down 19% from $45.8 million in the prior year [24] - The net leverage ratio was 4.7 times, with about 0.8 times headroom versus the covenant level of 5.5 times [28] Business Line Data and Key Metrics Changes - In the Filtration and Advanced Materials (FAM) segment, net sales were $188 million, down more than 7% year over year, reflecting lower volumes and unfavorable currency translation [25] - The Sustainable and Adhesive Solutions (SaaS) segment saw net sales of $297 million, up almost 6% on an organic basis, with adjusted EBITDA performance of $33 million, up more than 3% year over year [26] Market Data and Key Metrics Changes - Demand patterns reflected in Q1 showed sales were flat organically year over year, with SaaS segment growth offset by softness in FAM results due to automotive and construction market challenges [16][18] - Less than 7% of annual sales are currently subject to tariff exposure, indicating a strong localized supply chain [20][22] Company Strategy and Development Direction - The company has established three near-term priorities: enhancing commercial execution, deleveraging the balance sheet, and conducting a strategic portfolio review [8][9] - A focus on cross-selling and moving existing products into adjacent applications is part of the strategy to stimulate top-line growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current demand environment remains suppressed and is not expected to return to pre-pandemic levels soon [31] - A significant sequential increase in adjusted EBITDA performance is anticipated, driven by volume increases and improved pricing relative to input costs [31] Other Important Information - The company plans to reduce capital expenditures to $40 million per year, down from $55 million in 2024, and aims to reduce inventory levels by $20 million to $30 million in 2025 [14][30] - A goodwill impairment analysis resulted in a pretax non-cash charge of $412 million due to sustained decline in share price [28] Q&A Session Summary Question: Insights on the portfolio review and cash flow generation - Management is evaluating the portfolio to maximize value and strengthen the balance sheet, with updates to be provided as progress is made [40] - A significant increase in cash flow is expected in Q2, driven by inventory reductions and improved EBITDA [42] Question: Margin contraction and dividend policy - Management identified that the FAM business has been the primary impact on margins, with expectations for improvement through cost reductions and pricing actions [49][53] - The board has discussed the dividend and plans to continue it for now, despite the focus on deleveraging [54] Question: Impact of tariffs and inflation - The company has minimal exposure to tariffs from China and is actively managing pricing to cover input costs, with expectations for favorable pricing contributions in Q2 [59][61] - Input costs are not expected to rise significantly, allowing for effective management of the price-cost spread [61] Question: Addressing weaknesses in automotive and construction segments - Management is building a robust pipeline in the optical, medical, and dental fields to offset weaknesses in automotive and construction, with expectations for growth in these areas [65]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $0.28 per share and distributable earnings of $0.40 per share, which were slightly below expectations [5][13] - Recurring service revenues were $45,500,000, a sequential decrease of approximately $1,800,000, primarily due to lower capital spending and declines in enterprise values of managed equity REITs [13] - The company expects recurring service revenues for the next quarter to be between $44,000,000 and $45,000,000 [13] Business Line Data and Key Metrics Changes - The company closed two joint venture acquisitions of residential communities in South Florida for an aggregate transaction value of approximately $196,000,000 [6] - A value-add community shopping center in Chicago was acquired for $21,000,000, which is currently 77% occupied, with plans to increase occupancy and rents [8] - The company anticipates the Chicago acquisition to generate EBITDA of approximately $350,000 per quarter in fiscal 2025 [13] Market Data and Key Metrics Changes - The company noted a decrease in new supply in the residential sector, which is expected to positively impact rent growth and occupancy gains heading into 2026 [6] - The company highlighted strong performance from public capital clients, with DHC's SHOP segment seeing a 49% year-over-year improvement in consolidated NOI [9] - SVC's RevPAR improved by 2.6% year-over-year, outpacing the industry despite renovation activities [10] Company Strategy and Development Direction - The company aims to take advantage of investment opportunities in the current economic volatility, particularly in the residential sector and value-add retail [5][6] - The strategy includes diversifying the client base and growing private capital assets under management (AUM), which have grown from essentially zero to over $12,000,000,000 in less than five years [9] - The company plans to leverage its expertise in retail to establish a track record in the value-add retail sector [8][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current economic volatility and its impact on capital expenditures and revenues [5] - They expressed confidence in the ability to grow private capital AUM despite a challenging fundraising environment [9] - Management believes that the current quarter represents a low point for revenue and expects improvements as AUM grows and REIT share prices recover [33] Other Important Information - The company has $137,000,000 in cash on hand and no corporate debt, positioning it well for strategic opportunities [15] - The dividend payout ratio is approximately 79%, and management feels comfortable with the current coverage [15][33] - The company published its annual sustainability report, detailing its commitment to sustainability across its portfolio [15] Q&A Session Summary Question: Can you provide more details on the strategic rationale for the value-add retail acquisition? - Management explained that this acquisition is a new direction for the company, leveraging their expertise in retail to generate high returns in community shopping centers [19][22] Question: Is the current run rate for construction fees sustainable? - Management indicated that the first calendar quarter is typically low, and the current run rate may persist due to capital constraints at REIT clients [26] Question: How do you feel about the coverage for dividends? - Management expressed confidence in the dividend coverage, noting it is currently at 79% and that this is a low point for the company [30][33] Question: What are potential partners looking for in the current environment? - Management noted that partners are seeking higher returns and that the fundraising environment is challenging but improving [36][37] Question: What is the size of the value-add shopping center portfolio? - Management stated that the current investment is $21,000,000, with plans to grow it to approximately $100,000,000 in aggregate assets [42]

Financial Data and Key Metrics Changes - Elanco reported revenue of $1,193 million, a decrease of 1% on a reported basis, but achieved organic constant currency growth of 4% compared to Q1 2024 [39][40] - Adjusted EBITDA was $276 million, a decrease of $18 million year-over-year, but increased by $8 million when excluding the impact of the Aqua divestiture and foreign exchange headwinds [44][45] - Adjusted EPS improved to $0.37, driven by a favorable discrete tax rate benefit and interest expense savings from debt reduction [45] Business Line Data and Key Metrics Changes - Total Pet Health revenue increased by 1% in constant currency, with U.S. Pet Health revenue declining by 3% due to a challenging retail environment and soft vaccine demand, while international Pet Health grew by 5% [40][41] - The U.S. Farm Animal business grew by 17%, driven by demand for Experior and the launch of Pradillac, while international Farm Animal business contributed 2% in organic constant currency [42][43] - Innovation revenue reached $198 million in Q1, leading to an increase in full-year expectations for innovation contributions to $660 million to $740 million [7][20] Market Data and Key Metrics Changes - U.S. Retail business declined by 21% in January and February due to adverse weather conditions, but rebounded to a positive 13% growth in March [14][16] - International Pet Health business saw 5% organic constant currency growth, driven by products like AdTab and Credelio [17][18] - The U.S. Farm Animal business experienced significant growth, particularly in cattle, with Experior leading the way [19][31] Company Strategy and Development Direction - Elanco's strategy focuses on innovation, cash management, and a global operating model to navigate external uncertainties [9][10] - The company is committed to maintaining a balanced profile of risks and implementing mitigating strategies to offset tariff impacts and macroeconomic challenges [11][12] - Continued investment in product launches and facility expansions is planned, with a focus on maintaining cost discipline [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on 2025 goals, citing strong Q1 performance and positive trends in March and April [49][53] - The company is closely monitoring consumer spending and macroeconomic conditions, emphasizing its resilience and execution capabilities [104][106] - Management highlighted the growth potential in the animal protein market, indicating a favorable outlook for the farm animal business [106][107] Other Important Information - Elanco raised its full-year revenue guidance due to favorable foreign exchange impacts, maintaining an organic constant currency growth outlook of 4% to 6% [8][47] - The company expects to achieve a net leverage ratio of 3.9 to 4.3 times adjusted EBITDA by year-end, reflecting strong cash generation and debt reduction efforts [37][50] Q&A Session Summary Question: Can you elaborate on the Q2 guidance and the impact of investments on EBITDA? - Management confirmed that Q2 investments are aimed at supporting product launches during the peak parasiticide season, which may dampen near-term EBITDA but are expected to drive revenue growth in the second half [59][60] Question: What is the expected impact of tariffs and the pharma exemption on EBITDA? - Management indicated a potential $25 million EBITDA tailwind from foreign exchange moves, which has not been reflected in guidance due to uncertainty surrounding the pharma exemption [62][64] Question: Can you provide insights on the innovation revenue contributions? - Management highlighted that the overall innovation portfolio, including products like ZENRELIA and Credelio Quattro, is driving growth, with a focus on expanding market share and clinic adoption [71][93] Question: How is the macro environment affecting consumer spending? - Management noted that while monitoring consumer spending is essential, the company is well-positioned to navigate fluctuations due to its diverse product offerings and strong execution capabilities [104][106]