Core Insights - Major companies are increasing dividends to provide stability and reliable returns to investors amid market volatility [1] Johnson & Johnson - Announced a 4.8% increase in its quarterly dividend, resulting in an annual dividend of $5.20 and a dividend yield of 3.35% [2][4] - Has a strong track record with 64 years of consecutive dividend increases and a 3-year annualized dividend growth rate of 5.43% [2][4] - Faces challenges from tariffs estimated to cost $400 million this year, primarily affecting its medical technology business [4] - Engaged in share buybacks, spending nearly $3.1 billion over the last 12 months, representing about 0.8% of its market capitalization [5] Costco Wholesale - Increased its quarterly dividend from $1.16 to $1.30 per share, marking a notable 12% increase [7] - The indicated annual dividend is $5.20, but the dividend yield is low at 0.53%, significantly below the average yield of 3.3% for the largest consumer staples stocks [8] - Focuses on share buybacks as its primary method of returning capital, having spent nearly $3.8 billion on buybacks in the last 12 months, resulting in a buyback yield of nearly 6.5% [8][9] NASDAQ - Announced a 13% increase in its quarterly dividend, bringing the new dividend to $0.27, with an indicated yield of approximately 1.42% [10][11][12] - The company has spent $260 million on share buybacks since the beginning of 2024, which is about 0.6% of its market capitalization, with additional buyback capacity of $1.6 billion [13] - Achieved a debt paydown yield of nearly 2% over the last 12 months, indicating effective debt management [13]

Financial Data and Key Metrics Changes - The first quarter net income was $12.4 million, essentially flat compared to the fourth quarter of 2024, resulting in a return on assets (ROA) of 1.17% and a return on equity (ROE) of 12.4% [11] - Net interest income grew by 12.4% year-over-year but declined slightly from the previous quarter due to a decrease in Fed funds sold and other interest-earning assets [12] - Non-interest expenses increased by 3.2% or $878,000 in the first quarter, and were up 8.5% or $2.2 million compared to the same quarter last year [12] - The net interest margin improved by nine basis points to 3.8% [9][12] Business Line Data and Key Metrics Changes - The bank successfully executed a significant commercial real estate loan securitization, enhancing balance sheet management and generating fee income that will positively impact the net interest margin in the second quarter [7][8] - Loan growth in April was reported at over $50 million, with a quarterly average growth of $42.5 million [13] - Nonperforming loans declined by $9.3 million, improving the nonperforming loans to total loans ratio by 23 basis points from the prior quarter [15] Market Data and Key Metrics Changes - Deposits declined by $62 million for the quarter, resulting in a loan to deposit ratio of 93.9% [12] - The bank's investment securities increased by $13.4 million to $397 million, with an accumulated other comprehensive income (AOCI) gain of $10.3 million [12] Company Strategy and Development Direction - The company is focused on disciplined loan growth, robust credit management, and improving operational efficiencies while increasing shareholder value [6][9] - The management emphasized the importance of maintaining a healthy balance sheet and promoting long-term sustainable growth through proactive asset management strategies [8][20] - The bank is evaluating additional securitizations as a tool for managing concentrations and supporting sustainable profitable growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's credit risk strategies and the overall economic outlook, noting that borrowers remain cautious but optimistic [27][29] - The company anticipates achieving $325 million in loan growth for the year, translating to an 8% annual run rate compared to the prior year [19][49] - Management acknowledged the potential for rate cuts and their impact on loan growth and customer behavior [48][49] Other Important Information - The bank's book value and tangible book value grew by 4.4% and 4.7% respectively over the prior quarter, and by 14.3% and 15.2% compared to the same period last year [9] - The company is considering a share buyback program due to capital accretion and stock price levels [13][51] Q&A Session Summary Question: Impact of securitization on net interest margin - Management confirmed that the securitization will primarily impact the margin, providing a five basis point benefit for the next quarter [23] Question: Loan growth confidence amid macro uncertainty - Management indicated that the loan growth in April was primarily due to fundings on revolving lines rather than new deals, and expressed optimism about the pipeline [25][26] Question: Fee income increase drivers - The increase in fee income was attributed to the treasury management division, which has seen significant growth in recent years [32][33] Question: Expectations for non-interest expenses - Management expects non-interest expenses to remain flat in the second quarter, around $28 million [36] Question: Outlook on loan production yields and margin - Management anticipates a stable margin around 3.75% to 3.8%, with the potential for improvement depending on interest rate movements [40][42] Question: Consideration of share buybacks - Management is seriously considering a buyback program due to attractive stock levels and capital accretion [51][52]

"The company had another quarter of consistent operational execution resulting in the 21st consecutive quarter of free cash flow generation," commented Nick Deiuliis, president and CEO. "Utilizing this free cash flow, the company bought back shares at what we believe is a discount to our intrinsic value. Since the inception of the buyback program in 2020, we have retired approximately 38% of our outstanding shares." | Q1 2025 RESULTS SNAPSHOT AND 2025E | (1) | | --- | --- | | $100MM Q1 Free Cash Flow | 13% ...

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved double-digit sales growth and increased adjusted EBITDA by more than 30% [10] - Consolidated net sales for Q4 were $620.3 million, representing a 13.8% increase year-over-year [36] - Adjusted EBITDA in Q4 was $118 million, a 29% increase compared to the same period in 2023 [38] Business Line Data and Key Metrics Changes - The consumer vertical saw pro forma revenues grow double digits, with adjusted EBITDA increasing by over 27% [25] - Lugano reported annual sales growth of more than 50% and adjusted EBITDA of $195 million, a 76.4% increase year-over-year [26] - The industrial segment experienced flat sales and a modest decline in adjusted EBITDA as the company focused on long-term repositioning [29] Market Data and Key Metrics Changes - The CODI Momentum Index, a gauge of economic activity, currently reads 1.06%, indicating a stable outlook despite a slight decline from year-end levels [18] - Consumer spending remains steady, particularly among higher-income consumers, which is expected to benefit the company's portfolio [19] Company Strategy and Development Direction - The company is shifting focus to more innovative and disruptive businesses to drive long-term value creation [11] - Strategic acquisitions included the purchase of Honey Pot and Lifoam, while divesting Ergobaby and the Crosman airgun business to optimize long-term focus [12] - The company aims to identify and support strong businesses with innovative and sustainable models, guided by a buy, build, and grow philosophy [21] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about prospects for 2025, expecting resilience and growth in the economy [17] - The company is monitoring geopolitical uncertainties and believes its subsidiaries are well-positioned to navigate the evolving tariff landscape [20] - The outlook for 2025 includes expected adjusted EBITDA between $570 million and $610 million, with a focus on growth investments [43] Other Important Information - The company raised over $115 million in preferred equity in 2024 to improve its capital structure [13] - A revised management services agreement aims to reduce long-term costs for shareholders and align management compensation with shareholder interests [15] Q&A Session Summary Question: Guidance on branded and industrial growth - Management indicated that growth from Lugano is expected to continue, but they have a more modest overall growth forecast [53][54] Question: Impact of PFAS charge on 5.11% - The $11 million charge related to PFAS regulations was noted, and management confirmed that adjusted EBITDA would have been significantly higher without this charge [57][58] Question: Tariff exposure and portfolio positioning - Management discussed the proactive steps taken to diversify supply chains and mitigate tariff impacts, feeling well-positioned compared to competitors [66][70] Question: M&A activity outlook for 2025 - Management expressed optimism about the M&A environment improving slightly in 2025, with a focus on acquiring innovative and disruptive businesses [72][74] Question: Performance of Lugano and EBITDA margins - Management attributed strong EBITDA margins at Lugano to operational leverage and effective buying strategies, while also noting potential margin dilution from new salon openings [86][88]

Financial Data and Key Metrics Changes - The company reported net gaming revenues of €53 million for Q4 2024, a 5% increase compared to Q4 2023. In constant currency terms, this would have been €57 million, reflecting a 15% increase year-on-year [10][14][20] - Adjusted EBITDA for Q4 2024 was €1.9 million, with a total of €6.4 million for the full year, marking positive adjusted EBITDA in each quarter throughout 2024 [15][16] - The average cost per acquisition (CPA) decreased to €211, the lowest since Q4 2023, indicating improved efficiency in customer acquisition [12][48] Business Line Data and Key Metrics Changes - The casino segment contributed 62% of total net gaming revenue in Q4 2024, driven by a seasonal decline in sports betting [10] - In Spain, net gaming revenue grew by 10% to €23 million, while in Mexico, it remained flat at €25 million due to currency and sports betting margin headwinds [14][20] - The number of average monthly active customers increased by 6%, reaching nearly 70,000, which is 16% higher than Q4 2023 [21] Market Data and Key Metrics Changes - The Mexican peso devalued by 14% in Q4 2024, impacting net gaming revenue by approximately €3.4 million [20][22] - Despite the challenges in Mexico, the company remains optimistic about growth opportunities in the market, citing a strong customer base and retention strategies [21] Company Strategy and Development Direction - The company has approved a one-year share buyback plan for up to $5 million, reflecting confidence in its cash position and future cash flow generation [12] - The focus remains on core markets like Spain and Mexico, with cautious exploration of new markets such as Brazil, Peru, and Chile, where significant investments are not yet justified [80][81] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations and new taxes in Colombia, which could impact future investments [24][40] - The outlook for 2025 anticipates net gaming revenue between €220 million and €230 million, representing a 6% increase at the midpoint compared to 2024 [23][24] Other Important Information - The company successfully transitioned to a new auditor, MaloneBailey, after the unexpected resignation of its former auditor, which allowed it to meet compliance deadlines with NASDAQ [7][9] - The company ended Q4 2024 with €40 million in total cash, of which approximately €35 million was available [22] Q&A Session Summary Question: Can you share the Euro assumption embedded in the 2025 guidance? - The CFO indicated that specific FX forecasts for 2025 would be provided post-call [33] Question: Is the implied flow-through to EBITDA a function of conservatism around user acquisition investment? - The CFO noted that upcoming events like the Club World Cup could influence marketing strategies and investments [36] Question: Have competitors shifted focus to Brazil, impacting competitive intensity in Mexico? - Management suggested that some competitors may have temporarily reduced their focus on Mexico, providing an opportunity for the company [58] Question: What are the growth investment plans outside of Mexico? - The company is currently prioritizing investments in core markets where ROI is well understood, while exploring partnerships in Brazil [80][81] Question: Can you provide an update on Argentina? - Management expressed challenges in entering key provinces in Argentina, limiting growth potential in that market [83][84]