Financial Data and Key Metrics Changes - The first quarter results showed a 4% constant currency revenue decline year over year, primarily due to the loss of exclusivity of Atozed in Europe [21] - Adjusted gross margin was 61.7%, down from 62.1% in the same quarter last year, reflecting unfavorable pricing impacts [25] - Adjusted EBITDA margin for the first quarter was 32%, about 150 basis points better than expected [27] - Free cash flow before one-time costs was $146 million, an improvement from the prior year [28] Business Line Data and Key Metrics Changes - The women's health franchise grew 12% excluding exchange, driven by Nexplanon, which was up 14% [10] - Fertility business grew nearly 26% globally, with U.S. growth of 70% [12] - Jada grew 20% in the quarter, with significant adoption in U.S. birthing hospitals [13] - Biosimilars showed mixed results, with HEDLEMA growing 57% while Ontrazont and REMFLEXIS continued to decline [14] Market Data and Key Metrics Changes - Revenue composition: approximately 75% from outside the U.S., with Europe and Canada contributing about 25% and China about 13% [7] - The U.S. market is primarily supplied by European manufacturing, with limited exposure to current tariff policies [6][9] Company Strategy and Development Direction - The company is focusing on deleveraging, aiming for a net leverage ratio below four by year-end 2025 [5][31] - A shift in capital allocation priorities has been made to increase retention ratio and support business development opportunities [39] - The company plans to continue pursuing compelling business development opportunities while maintaining lower leverage [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets for VITAMA, citing strong market feedback and access initiatives [43] - The macroeconomic environment remains uncertain, but the company has limited exposure to current tariff policies [6][64] - Management emphasized the importance of deleveraging in response to investor concerns about leverage in a volatile market [72] Other Important Information - The company has reset its dividend payout to redirect funds towards debt reduction, allowing for nearly $200 million in prospective dividend payments to be used for deleveraging [5] - The restructuring initiatives are expected to yield approximately $200 million in annual savings [4] Q&A Session Summary Question: Confidence in VITAMA sales target and access issues - Management is confident in achieving the sales target due to strong market signals and effective access strategies [43][44] Question: Priorities regarding deleveraging and business development - The focus is currently on deleveraging, with business development opportunities being considered as leverage improves [46] Question: Capital allocation and share buybacks - Share buybacks are a lower priority compared to managing leverage and growth, especially while leverage remains above four times [66] Question: Nexplanon generic threat and FDA status - Management is confident in the strength of Nexplanon's patent and the regulatory challenges faced by potential generics [82][87] Question: Breakdown of anticipated one-time costs for 2025 - Estimated one-time costs include $150 million for manufacturing separation and $200 million for restructuring initiatives [80]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $1.25 and non-GAAP diluted EPS of $1.22 for Q1 2025, compared to $1.06 in Q1 2024, reflecting a solid earnings improvement driven by rate recovery and colder weather [6][9][10] - The company affirmed its long-term rate base and earnings per share growth rate targets of 4% to 6% [6][20] - A dividend of $0.66 per share was declared, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [6] Business Line Data and Key Metrics Changes - The Electric and Gas segments contributed strong margins, with new rates driving a $0.20 margin improvement across all jurisdictions [10][12] - Favorable loads contributed an additional $0.13 to margins due to colder weather, customer growth, and increased usage [10] - Transition revenues added approximately $0.05 to the quarter's earnings [10] Market Data and Key Metrics Changes - The Montana rate review is nearing completion, with a full natural gas settlement and a partial electric settlement reached [7][19] - The average bill impact from the gas case is approximately 9%, maintaining rates below the national average [19] Company Strategy and Development Direction - The company aims to achieve greater than 6% EPS growth through opportunities with data centers and new large load customers, alongside FERC regional transmission and incremental generating capacity [8][20] - Legislative successes include a wildfire bill providing legal protections and a transmission bill facilitating the approval process for large transmission projects [23][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on earnings and rate-based growth commitments over the long term, despite not providing specific 2025 earnings guidance until the conclusion of the Montana rate review [20][72] - The company anticipates a lower contribution to overall earnings in Q2 2025, estimating it to be approximately 10% of the full year due to the timing of rate implementations [21] Other Important Information - The company successfully priced $500 million of long-term debt in March 2025, addressing its financing needs for the year [14][15] - The company is focused on maintaining reliability and affordability for customers while supporting long-term growth [20][22] Q&A Session Summary Question: How long do you think the tariff proceeding could go for? - Management indicated that there are five levels of process for data centers, with various parties at different stages, and they expect to finalize contracts with two parties by the end of Q2 or early July [40][43] Question: Do you still see yourself within the 4% to 6% EPS range for 2025? - Management acknowledged the question regarding 2025 guidance, indicating they expect to stay within the 4% to 6% range long-term, but noted that it may not be entirely linear [50] Question: Did you change the electric average customer counts? - Management confirmed that the change was due to the way street lighting districts were counted, but overall customer growth remained around 1.5% [54] Question: Is there adequate space at Colstrip for replacement capacity? - Management stated that there is adequate land for potential gas or nuclear plants near Colstrip, with ongoing discussions about nuclear options [61][63]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported core FFO of $0.19 per diluted share, with same store property cash NOI up 0.4% excluding nonrecurring revenue items from Q1 2024 [27] - Expenses increased approximately 5% year over year, driven by real estate taxes, payroll costs, and repair and maintenance costs, partially offset by higher tenant reimbursement income and growth in rental revenue [27][28] - The company maintains its guidance for core FFO of $0.86 to $0.89 for 2025, with unchanged NOI guidance for the Observatory at $97 million to $102 million [28][29] Business Line Data and Key Metrics Changes - The commercial portfolio leased a total of 231,000 square feet in Q1 2025, including significant renewals and expansions with notable tenants [13][14] - The Manhattan office portfolio is 93% leased, with a slight decrease from 94.2% in the previous quarter, but the company expects occupancy gains by year-end 2025 [13][19] - The multifamily portfolio achieved 99% occupancy with 8% year-over-year rent growth in Q1 2025 [16] Market Data and Key Metrics Changes - The leasing environment in New York City remains active, particularly for modernized buildings near mass transit, with the company achieving its fifteenth consecutive year of positive mark to market rent spreads [9][16] - The Observatory generated NOI of approximately $15 million, with visitation down 0.6% year over year, attributed to weather conditions and the timing of the Easter holiday [9][28] - Approximately 50% of Observatory visitors are domestic, with no single region contributing more than 10% of total visitation, indicating a broad international exposure [11] Company Strategy and Development Direction - The company focuses on five priorities: leasing space, selling tickets to the Observatory, managing the balance sheet, identifying growth opportunities, and achieving sustainability goals [12][72] - The company is well-positioned to navigate economic uncertainties due to its diversified income streams and strong balance sheet, allowing for flexibility in leasing and maintenance [7][22] - The company actively underwrites deals across retail, multifamily, and office sectors, with a focus on New York City, and is prepared to act on opportunities to enhance growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges potential macroeconomic risks but remains optimistic about the company's strong position due to long-term leases and a diverse tenant base [6][7] - The company is focused on maintaining operational excellence and controlling costs while monitoring external factors that could impact tourism and economic growth [21][22] - Management emphasizes the importance of transparency and adaptability in the current uncertain environment, particularly regarding tourism and consumer behavior [21][22] Other Important Information - The company repaid $100 million in Series A unsecured notes and $120 million in revolving credit facility balance during the quarter, maintaining a proactive approach to managing its balance sheet [23] - The company has the lowest leverage among New York City-focused REITs at 5.2 times net debt to EBITDA as of quarter-end [23] Q&A Session Summary Question: How are leasing conversations unfolding with different tenant categories? - Management noted no change in lease negotiations across various tenant categories in the last sixty days, indicating strong activity and interest [33][34] Question: What is the expected trend for CapEx in the coming years? - Management provided insights on CapEx, indicating a reduction in leasing commissions and building improvements as the portfolio stabilizes, with a good run rate expected moving forward [35][38] Question: How is the Williamsburg leasing progressing? - Management reported strong activity in Williamsburg, with high interest from recognizable brand names and a 94% lease rate across the retail portfolio [40][43] Question: How does the company prioritize capital allocation opportunities? - Management emphasized a balanced approach to capital allocation, focusing on operating runway and potential investment opportunities while being measured in share buybacks [44][45] Question: What is the company's perspective on tourism and potential impacts from geopolitical tensions? - Management has not detected significant shifts in demand and remains focused on operational discipline and marketing strategies to mitigate any potential declines in tourism [56][57]

Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q1 2024 to $30.1 million in Q1 2025, representing a 2.5% year-over-year growth [12] - Quarter-over-quarter, total revenue grew by 2.7% from $29.3 million in Q4 2024 to $30.1 million in Q1 2025 [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter, remaining at $12.7 million in Q1 2025 [14] - Adjusted funds from operations (AFFO) totaled $14.7 million in Q1 2025, approximately $100,000 higher than Q4 2024, with a per diluted common share basis remaining at $0.55 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained flat at 90.9% and 6.7 years, respectively [6] - The company acquired a behavioral residential treatment facility for approximately $9.7 million, with anticipated tenant improvements of $1.4 million [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169.5 million, with expected returns ranging from 9.1% to 9.75% [8] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of approximately $600,000 [9] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3.2 million, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions and is evaluating capital recycling opportunities to fund near-term acquisitions [10][22] - The company aims to maintain modest leverage levels while exploring various capital options, including potential asset sales and draws on the revolver [10][22] - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169 million [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of tenants and the overall health care sector, indicating no immediate negative impacts from macroeconomic factors [44] - The company is actively monitoring the geriatric psychiatric hospital operator's sale process and expects more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices and is focused on selected capital recycling [22][25] Other Important Information - The company declared a dividend of $0.47 per common share for Q1 2025, marking a continuous increase since its IPO [10] - The company is not currently issuing shares under its ATM program due to low share prices [10] Q&A Session Summary Question: Update on the geriatric psychiatric hospital operator's sale process - Management indicated that the operator is in an active sale process with potential buyers, and more clarity is expected by the end of Q2 or early Q3 [18][19] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline of acquisitions but noted a cautious approach to raising equity at current prices, focusing on selected asset sales and revolver draws [20][22] Question: Concerns about smaller tenants - Management reported stability among tenants and no significant issues arising in Q1, with a positive macro outlook for health care providers [44] Question: Conditions for the $169 million pipeline - Management clarified that the pipeline is solid and expected to close over three years, with flexibility in decision-making based on project evaluations [49] Question: Position of notes in the event of asset sales by the psychiatric operator - Management explained the company's second lien position on accounts receivable and first lien on other assets, indicating a structured approach to creditor relationships [51]

Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q1 2024 to $30.1 million in Q1 2025, representing a 2.5% year-over-year growth [12] - Compared to Q4 2024, total revenue grew by 2.7% from $29.3 million, driven by acquisitions and seasonal increases in operating expense reimbursements [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter but remained at $12.7 million, with FFO per diluted share at $0.47 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained stable at 90.9% and 6.7 years, respectively [6] - The company acquired a behavioral residential treatment facility for approximately $9.7 million, with anticipated tenant improvements of $1.4 million [7] - The company signed definitive agreements for seven properties with an expected investment of $169.5 million, with anticipated returns ranging from 9.1% to 9.75% [8] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, resulting in net proceeds of about $600,000 [9] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3.2 million, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company is focused on selective acquisitions and capital recycling opportunities, maintaining modest leverage levels [10][22] - The management is evaluating the potential for share buybacks but prioritizes capital allocation for growth and acquisitions [25][26] - The company aims to close on two inpatient rehab facilities in the near term, with a healthy pipeline of acquisitions expected [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of tenants and the healthcare sector's resilience amid economic challenges [44] - The company is monitoring the geriatric psychiatric hospital operator's sale process, expecting more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices, preferring to utilize selected asset sales and revolver draws for funding [22][23] Other Important Information - The company declared a dividend of $0.47 per common share for Q1 2025, marking a continuous increase since its IPO [10] - The company has an active watch list for tenants, indicating ongoing monitoring of tenant performance [43] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline but noted less activity in Q1, with plans to utilize selected asset sales and revolver draws for funding [20][22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3.2 million is solely rent, with additional notes payments of approximately $2.5 million [30][31] Question: Concerns about smaller tenants in the portfolio - Management reported stability among tenants, with no significant issues arising in Q1 [43] Question: Conditions under which the company might not proceed with the $169 million pipeline - Management clarified that while there are obligations to acquire, they can opt out if the opportunity is not right [49] Question: Position of the company's notes in the event of asset sales by the psychiatric hospital operator - Management stated they hold a second lien on accounts receivable and a first lien on other assets [51]

Financial Data and Key Metrics Changes - Total revenue increased from $29,300,000 in Q1 2024 to $30,100,000 in Q1 2025, representing a 2.5% annual growth [11] - Compared to Q4 2024, total revenue grew by 2.7% quarter over quarter, attributed to incremental revenue from acquisitions and seasonal increases in operating expense reimbursements [12] - Funds from operations (FFO) decreased slightly by $77,000 quarter over quarter, remaining at $12,700,000, with FFO per diluted share at $0.47 [13] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained flat at 90.9% and 6.7 years, respectively [6] - The company acquired a behavioral residential treatment facility for approximately $9,700,000, with anticipated tenant improvements of $1,400,000, expecting an annual return of 9.5% [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169,500,000, with returns ranging from 9.1% to 9.75% [7] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of about $600,000, resulting in a gain on the property sale [8] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3,200,000, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions while focusing on property operating costs and tenant relationships [6] - Management is evaluating capital recycling opportunities and anticipates sufficient capital from selected asset sales and increased revolver capacity for near-term acquisitions [10] - The company raised its dividend to $0.47 per common share, marking a continuous increase since its IPO [10] Management's Comments on Operating Environment and Future Outlook - Management expects to have more clarity on the status of the geriatric psychiatric hospital operator's sale process by the end of Q2 or early Q3 [18] - The company is cautious about raising equity at current share prices and plans to utilize selected asset sales and revolver draws for funding acquisitions [22] - Overall, management sees stability among tenants and does not anticipate significant negative impacts from the macroeconomic environment on tenants' ability to pay rent [43] Other Important Information - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169,000,000 [49] - Management is open to evaluating various capital options, including preferred stock, but maintains a bias towards a simple capital structure [35] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect to have more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed that they are seeing attractive property acquisitions and are evaluating them, but are cautious about raising equity at current prices [22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3,200,000 is just the rent, with additional payments on notes amounting to approximately $2,500,000 [30][31] Question: Patience regarding the geriatric tenant's lease default - Management stated they are monitoring the situation and will make decisions based on buyer interest, emphasizing that patience is not unlimited [40] Question: Concerns about smaller tenants in the portfolio - Management reported stability across the portfolio and no significant issues with smaller tenants, indicating a positive macroeconomic outlook for healthcare providers [43]

Financial Data and Key Metrics Changes - The company reported a 20% year-over-year improvement in cash gross profit per ton, leading to a 27% increase in adjusted EBITDA and a 420 basis points expansion in adjusted EBITDA margin [6][7] - Free cash flow generated over the last twelve months was $869 million, representing a 93% conversion of net earnings [14] - The net debt to adjusted EBITDA leverage ratio was 2.2 times, with over $190 million in cash on hand [15] Business Line Data and Key Metrics Changes - Aggregates shipments were 1% lower than the prior year, but the freight adjusted price improved by 7% year-over-year [8][9] - Cash unit profitability in asphalt and concrete expanded by 19% and 77% respectively, contributing to a total cash gross profit improvement of over 50% [10] - The aggregates cash gross profit grew to $10.99 per ton, nearing the company's goal of $11 to $12 per ton [9] Market Data and Key Metrics Changes - Private demand is expected to face challenges, while public demand remains strong, particularly in highway and non-highway infrastructure [11][12] - Capital plans in nine of the top ten states are increasing, with $45 billion in transportation spending initiatives passed in key states [13] - The company noted that warehouse activity appears to be stabilizing, and data center activity continues to accelerate [12] Company Strategy and Development Direction - The company is focused on compounding profitability through organic growth and strategic acquisitions, maintaining a disciplined approach to capital allocation [6][14] - The Vulcan Way of selling and operating is emphasized as a key driver for performance, allowing the company to navigate macroeconomic volatility [18] - The company expects to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute despite increasing macroeconomic volatility driven by trade policy uncertainty and interest rate trajectories [10][11] - The company anticipates that the timing of interest rate reductions will influence the return of residential construction activity [11] - Management noted that while private non-residential demand is varied, public construction is poised for steady demand growth [12] Other Important Information - Capital expenditures for the quarter were $105 million, with expectations to spend between $750 million and $800 million for the full year [16] - The company is closely monitoring the impacts of tariffs but does not anticipate a material effect on earnings [16] Q&A Session Summary Question: Thoughts on mid-year price increases and cost cadence - Management indicated strong momentum with prices up 7% and mix adjusted up 8.5%, maintaining guidance of 5% to 7% for mid-year price increases [22][23] Question: Update on organic rock volumes - Management expects a guidance of 3% to 5% for organic volumes, with challenges on the private side but healthy growth on the public side [30] Question: Impact of administrative policy on project starts - Management reported no significant impact from administrative policy changes, with highway funding flowing as expected [38] Question: Outlook on costs for the rest of the year - Management noted a 3% decrease in costs for the quarter, attributing it to improved operating efficiencies and controlled spending [41][42] Question: Insights on project delays or cancellations - Management stated that projects that have started are not being canceled or put on hold, indicating a healthy backlog [50] Question: Impact of tariffs on the business - Management does not foresee a significant impact from tariffs on the business, emphasizing their ability to offset cost volatility [86][88] Question: Update on plant automation initiatives - Management indicated that instrumentation has been implemented in top plants, with full efficiencies expected to be realized over the next year [131]

Financial Data and Key Metrics Changes - Consolidated earnings for the first quarter were reported at $0.31 per diluted share, an increase from $0.09 per share in the same period of 2024 [17] - The electric company achieved net income of $71 million or $0.35 per diluted share, compared to $25 million or $0.12 per share in the same period of 2024 [17] - The holding company reported a loss of $8 million or $0.04 per diluted share, compared to a loss of $7 million or $0.03 per share in the same period of 2024 [17] - The company affirmed its 2025 earnings per share guidance of $2.27 within a range of $2.21 to $2.33 per share [17][25] Business Line Data and Key Metrics Changes - Customer growth was at 1% year-over-year, with residential and commercial sectors leading the demand growth of 8% [7][18] - Residential load growth was strong at 3%, while commercial load growth was even higher at 28% [19] - Industrial and oilfield classes experienced some softness due to planned and unplanned outages [19] Market Data and Key Metrics Changes - The company reported an average reliability of 99.975% despite facing extreme weather conditions [9] - The rates for the company are among the lowest in the nation, with the lowest rates in both Oklahoma and Arkansas [10] Company Strategy and Development Direction - The company is focused on delivering safe, reliable, and affordable electric service to over 900,000 customers [6] - Future growth is anticipated from diverse industries, including defense, tribal development, and hospitality, particularly with Oklahoma City hosting events for the 2028 Olympics [8] - The company plans to request a rate review midyear in Oklahoma and a general rate review in Arkansas towards the end of the year [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and operational excellence, which supports future growth [14] - The company is proactive in managing supply chain risks and has secured key components through 2026 [13] - Management acknowledged the uncertainty in the macroeconomic environment but remains committed to delivering on stakeholder expectations [13] Other Important Information - The company completed a planned external financing of $350 million, contributing to low refinancing risk [21] - The balance sheet is considered one of the strongest in the industry, with a forecasted FFO to debt ratio of approximately 17% [22] Q&A Session Summary Question: Are there any disruptive or inflationary impacts on the current CapEx plan? - Management feels confident about the current CapEx plan and expects little to no disruption in the coming years [30] Question: What is the outlook for industrial load growth? - Management indicated that the lower growth in the industrial segment is due to transitory events like outages, with no external factors impacting that class [32] Question: Are there discussions around utility regulatory improvements in Oklahoma? - Management confirmed ongoing discussions about pursuing formula rates but indicated that significant changes are not expected this year [36] Question: How would the generation rider and PISA recovery impact the current plan? - Management stated that the generation rider would provide cash flow during the construction phase, enhancing credit and facilitating financing [44] Question: Is there any impact from the Oklahoma Supreme Court ruling on service extensions? - Management confirmed that the ruling does not affect the ability to serve large load customers [52] Question: How is the tone in customer exchanges regarding data center electricity demand? - Management reported ongoing discussions with several data center companies, indicating strong demand [59] Question: What is the company's strategy regarding Moody's negative outlook? - Management expressed confidence in maintaining a strong balance sheet and believes that upcoming regulatory events could positively influence Moody's assessment [62]

Financial Data and Key Metrics Changes - The company reaffirmed its full-year guidance, indicating a strong start to 2025 with Q1 results ahead of expectations [7][14] - Adjusted EPS guidance for the year is approximately $16.25, with an expected insurance segment benefit ratio of 90.1% to 90.5% [15][14] - G&A costs for the quarter were slightly better than expectations, attributed to the timing of costs expected to be incurred in the second and third quarters [11][14] Business Line Data and Key Metrics Changes - No changes to membership guidance for 2025, with strong performance in the Open Enrollment Period (OEP) and a positive outlook for the rest of the year [9] - Significant progress in closing care gaps, with expectations to reduce gaps in care by 25% year over year and medication adherence campaigns showing a 30% to 50% reduction in members with weight refills [10][11] - CenterWell and Medicaid businesses are experiencing robust patient and membership growth, with 30 new centers added through acquisition and partnership [12][14] Market Data and Key Metrics Changes - The company is seeing strong year-to-date performance in markets with high concentrations of members, particularly in Florida, Illinois, and Texas [41] - Medicaid is performing in line with expectations, with approximately 100,000 growth year-to-date, aligning with the anticipated growth of 175,000 to 250,000 for the year [74][75] Company Strategy and Development Direction - The company is focused on operational efficiencies, increasing flexibility, and improving member outcomes while positioning for long-term success [14] - Emphasis on capital allocation and growth in CenterWell and Medicaid, with a focus on unlocking substantial value over the mid to long term [16][12] - The integration between the insurance segment and CenterWell is aimed at delivering better health outcomes and improving STARS performance [59][60] Management's Comments on Operating Environment and Future Outlook - Management noted that while challenges remain, there are no surprises in the external environment, and they are executing against controllable factors [7][8] - The company is optimistic about the underlying progress of the business, despite external regulatory headwinds [49][51] - Management expressed confidence in the ability to manage medical costs and G&A effectively while focusing on STARS outcomes [51][92] Other Important Information - The company is actively monitoring changes in consumer behavior due to the Inflation Reduction Act (IRA) [7] - Management highlighted the importance of the upcoming investor conference to provide clarity on earnings power and progress tracking [8][16] Q&A Session Summary Question: How much of your investments moved out of Q1? - Management indicated that most of the impact of incremental investments flowed through the MLR in Q1, with expectations for higher levels in the second through fourth quarters [19][20] Question: Update on the path to the 3% MA margin target? - Management reiterated focus on achieving a 3% margin, with timing tied to STARS outcomes, but no significant changes from previous communications [22][23] Question: Update on STARS initiatives and bids? - Management expressed confidence in progress made on STARS initiatives and ongoing bid processes, emphasizing a balanced approach to membership and margins [25][30] Question: Experience in Part D relative to expectations? - Trends in Part D are consistent with expectations, with mid-single-digit growth on the medical side and low double-digit growth on the pharmacy side [34][35] Question: Visibility on risk adjustment and Group MA? - Management reported strong membership changes and performance in Group MA, with no significant changes in behavior due to recent repricing activity [40][42] Question: Comments on Medicaid visibility and utilization? - Medicaid is performing in line with expectations, with strong growth and modest margin improvements anticipated [72][75] Question: Clarification on GAAP EPS and valuation adjustments? - Management clarified that the adjustment in GAAP EPS guidance is unrelated to structural impairment and is a complex calculation [88][94]

Financial Data and Key Metrics Changes - Consolidated net revenues for Q1 2025 were $2.8 billion, an increase of 2% year-over-year [6] - Total adjusted EBITDAR for the quarter was $884 million, up 4% year-over-year [6] - Same store adjusted EBITDAR in Las Vegas was $433 million, essentially flat compared to the prior year [6][8] - Las Vegas EBITDA margins improved to 43.2%, up 50 basis points year-over-year [8] Business Line Data and Key Metrics Changes - The Regional segment delivered adjusted EBITDAR of $440 million, up 2% year-over-year [10] - Caesars Digital reported net revenue of $335 million, a 19% increase year-over-year, with adjusted EBITDA of $43 million, up $38 million year-over-year [12] - Sports Betting net revenue increased by 9%, while iCasino net revenue grew by 53% year-over-year [12][13] Market Data and Key Metrics Changes - Convention room nights accounted for 20% of the Las Vegas mix, with the Forum Convention Center achieving a Q1 EBITDA record [8] - The New Orleans and Danville projects contributed positively to the Regional segment despite weather disruptions [10][19] Company Strategy and Development Direction - The company is focused on capital projects in Las Vegas, which are yielding better-than-expected returns [9] - There is a commitment to enhancing guest experiences through significant capital investments over the past four years [10] - The company is in a free cash flow harvesting mode, with plans to use operating free cash flow primarily for debt paydown [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Las Vegas market outlook despite economic uncertainties [9][22] - Forward bookings remain strong, with expectations for continued growth in digital segments [22] - Management noted that they have not observed any significant consumer softness, with rated play showing mid-single-digit growth [44][46] Other Important Information - The company repurchased $100 million of its stock at an average price of $23.84 [16] - Full-year CapEx for 2025 is expected to be approximately $600 million, with interest expenses projected to decrease significantly [16] Q&A Session Summary Question: Las Vegas outlook and group-related bookings - Management indicated that group bookings were about 20% of the first quarter room base and expect 2025 to be a record year for group bookings [29][30] Question: Clarification on last year's revenue piece - Management confirmed a $6 million headwind on EBITDA due to skin revenues and World Series of Poker revenues declining [32] Question: Impact of weather and leap year on regional performance - Management estimated the net impact of weather and leap year to be in excess of $10 million [37] Question: Changes in customer behavior among different segments - Management noted that unrated play has been softer than rated play, but rated play is up mid-single digits [44] Question: Digital segment performance and future expectations - Management confirmed that iCasino is performing well, with a 70% increase in revenue in April compared to the previous year [21][84] Question: International customer exposure and trends - Management stated that they primarily operate as a domestic business, with some international high-end play continuing without significant changes [91] Question: Regional margins and future expectations - Management expects regional margins to improve as competitive pressures ease and new properties ramp up [97] Question: Buyback strategy and market conditions - Management indicated they would remain active in stock buybacks if the stock dislocates as it did in early April [100]