Financial Data and Key Metrics Changes - For Q1 of fiscal 2026, total revenue was $120.9 million, a slight increase of $1 million or 0.8% from $119.9 million in Q1 of fiscal 2025, primarily driven by increased DSA revenue and partially offset by decreased RMS revenue [12][19] - DSA revenue increased to $48 million from $42.8 million, representing a year-over-year growth of 12%, with discovery pharmacology service and surgical services contributing significantly [5][12] - RMS revenue decreased by $4.1 million or 5.4% to $72.9 million, primarily due to lower NHP volumes sold [14][15] - The overall operating loss increased to $16.3 million from $15.5 million, driven by a higher RMS operating loss [16][19] - Consolidated net loss totaled $28.4 million or $0.83 loss per diluted share, compared to a net loss of $27.6 million or $1.02 loss per diluted share in the prior year [18][19] Business Line Data and Key Metrics Changes - DSA business saw strong growth with net new awards of $53.6 million, a 27% increase over Q1 of fiscal 2025, and a trailing twelve-month increase of 34% [13] - DSA margins improved, with non-GAAP operating income for the DSA segment at $8.2 million or 6.8% of total revenue, up from $7.1 million or 5.9% [17] - RMS segment's non-GAAP operating income decreased to $7.2 million or 5.9% of total revenue, down from $9.4 million or 7.9% due to lower NHP volume sales [18] Market Data and Key Metrics Changes - The book-to-bill ratio for DSA in Q1 of fiscal 2026 was 1.16 to 1, with a trailing twelve-month book-to-bill of 1.08 to 1 [14] - DSA backlog increased to $145.4 million at December 31, 2025, compared to $138.2 million at September 30, 2025 [14] Company Strategy and Development Direction - The company is focused on improving revenue and margins in the DSA business while reducing costs and diversifying revenue sources in the RMS business [10] - The company is enhancing its NAM strategy to support FDA guidance and industry expectations for innovation, with recent collaborations aimed at integrating advanced machine learning tools [10][50] - The company is committed to optimizing its operational footprint and product portfolio while maintaining client satisfaction [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the DSA business's momentum and the ongoing site optimization and cost reduction initiatives in the RMS business [9] - The company is navigating macroeconomic factors affecting the RMS business and remains committed to refinancing its debt and improving its balance sheet [9][20] - Management anticipates continued improvement in margins and revenue growth in the DSA segment as pricing stabilizes and operational efficiencies are realized [26][31] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore debt refinancing alternatives [9] - Capital expenditures for Q1 of 2026 were $5.2 million, with expectations to keep annual CapEx below 4% of revenue [21][22] Q&A Session Summary Question: Can you provide more details on profitability and adjusted EBITDA trends? - Management noted that seasonality impacts the first quarter, and increased operating expenses were observed, particularly in cost of goods sold [25][26] Question: What is the outlook for DSA awards and growth? - Management highlighted that DSA growth is supported by improved customer relationships and scientific strength, with expectations for continued positive trends [28][30] Question: Can you explain the recent decline in RMS revenue and operating leverage? - Management indicated that reduced NHP volumes overshadowed operating leverage benefits, but cost reductions from facility closures are expected to yield improvements in future quarters [38][40] Question: How are recent weather conditions impacting operations and costs? - Management confirmed that weather impacts shipping and operations, but the overall cost impact is not significant [51][52]

Financial Data and Key Metrics Changes - For Q1 of fiscal 2026, total revenue was $120.9 million, a slight increase of $1 million or 0.8% from $119.9 million in Q1 of fiscal 2025, primarily driven by increased DSA revenue and partially offset by decreased RMS revenue [12][19] - DSA revenue increased to $48 million from $42.8 million, reflecting a year-over-year growth of 12%, with discovery pharmacology service and surgical services contributing significantly [5][12] - RMS revenue for Q1 of fiscal 2026 was $72.9 million, a decrease of $4.1 million or 5.4% compared to the prior year, primarily due to lower NHP volumes sold [14][15] - The overall operating loss increased to $16.3 million from $15.5 million in the prior year, driven by an increase in RMS operating loss [16][19] - Consolidated net loss totaled $28.4 million or $0.83 loss per diluted share, compared to a net loss of $27.6 million or $1.02 loss per diluted share in Q1 of fiscal 2025 [18][19] Business Line Data and Key Metrics Changes - DSA business saw strong growth with net new awards of $53.6 million, a 27% increase over Q1 of fiscal 2025, and a 34% year-over-year increase for the trailing twelve-month period [13][19] - DSA margins improved, with non-GAAP operating income for the DSA segment at $8.2 million or 6.8% of total revenue, compared to $7.1 million or 5.9% in the prior year [17] - RMS segment reported non-GAAP operating income of $7.2 million or 5.9% of total revenue, down from $9.4 million or 7.9% in the prior year, primarily due to lower NHP volume sales [18] Market Data and Key Metrics Changes - The book-to-bill ratio for DSA in Q1 of fiscal 2026 was 1.16 to 1, with a trailing twelve-month book-to-bill ratio of 1.08 to 1, indicating a healthy order intake relative to revenue [6][14] - DSA backlog increased to $145.4 million at December 31, 2025, compared to $138.2 million at September 30, 2025, and $130.4 million at December 31, 2024 [14] Company Strategy and Development Direction - The company is focused on improving revenue and margins in the DSA business while reducing costs and diversifying revenue sources in the RMS business [10][11] - The company is enhancing its NAM strategy to support FDA guidance and industry expectations for innovation, with recent collaborations aimed at integrating advanced machine learning tools [10][50] - The site optimization plan is expected to improve margins in future periods, with the current phase set to complete by Q3 of fiscal 2026 [7][9] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the DSA business's momentum and the ongoing site optimization and cost reduction initiatives in the RMS business [9][10] - The company is navigating macroeconomic factors affecting the RMS business and remains committed to refinancing its debt and improving its balance sheet [9][20] - Management noted that while the first quarter typically experiences seasonality challenges, they expect to see improvements in margins and revenue in the latter half of the fiscal year [26][28] Other Important Information - The company has received a waiver for non-compliance with financial covenant ratios under its credit agreement for Q1 of fiscal 2026 [9] - Capital expenditures in Q1 of 2026 were $5.2 million, with expectations for annual CapEx to remain below 4% of revenue [21][22] Q&A Session Summary Question: Can you provide more details on profitability and adjusted EBITDA trends? - Management acknowledged that margins in RMS impacted adjusted EBITDA, with some operational expenses higher than expected, and indicated that seasonality will likely follow previous patterns [25][26] Question: What is driving the positive trend in DSA awards? - Management attributed the growth in DSA awards to improved customer relationships, increased sales force efforts, and scientific strengths within the company [29][31] Question: What is the outlook for RMS operating leverage? - Management indicated that reduced NHP volumes overshadowed operating leverage benefits, but cost reductions from facility closures will contribute positively in future quarters [40][42] Question: How much was NHP volume down year-over-year? - Management reported that NHP volumes were down approximately 25% year-over-year [44][45] Question: Can you elaborate on new relationships in the NAM space? - Management highlighted ongoing R&D efforts and collaborations aimed at innovation, which are expected to drive incremental revenues [49][50]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $120.9 million, a slight increase of $1 million or 0.8% compared to $119.9 million in Q1 2025, primarily driven by increased DSA revenue and partially offset by decreased RMS revenue [11][18] - DSA revenue increased to $48 million from $42.8 million, reflecting a year-over-year growth of 12% [5][11] - RMS revenue decreased by 5.4% to $72.9 million, primarily due to lower NHP volumes sold [7][13] - The overall operating loss increased to $16.3 million from $15.5 million, driven by a higher RMS operating loss [14][18] - Consolidated net loss totaled $28.4 million or $0.83 loss per diluted share, compared to a net loss of $27.6 million or $1.02 loss per diluted share in Q1 2025 [17][18] Business Line Data and Key Metrics Changes - DSA business saw strong growth with discovery awards up 44% and safety assessment awards up 22% year-over-year [6] - DSA margins improved, achieving the strongest first quarter margins in three years [6][15] - RMS services revenue grew by 13% compared to Q1 2025, mainly due to higher NHP colony management services revenue [7][13] - The book-to-bill ratio for DSA was 1.16 to 1 for the quarter and 1.08 to 1 for the trailing twelve months [6][13] Market Data and Key Metrics Changes - The DSA backlog increased to $145.4 million at December 31, 2025, compared to $138.2 million at September 30, 2025 [13] - The conversion rate for DSA backlog was 33.2%, slightly up from 32.8% in the prior year [12] Company Strategy and Development Direction - The company is focused on improving revenue and margins in the DSA business while reducing costs and diversifying revenue sources in the RMS business [9] - Continued emphasis on innovation through collaborations that integrate machine learning tools and enhance data analysis capabilities [9][50] - The company is committed to optimizing its operational footprint and enhancing client satisfaction [10][57] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the RMS business due to macroeconomic factors and lower NHP sales, but expressed optimism about future improvements in margins [8][9] - The company plans to resume providing financial guidance once there is greater clarity on market demand and tariff impacts [20][21] - Management remains confident in the company's strategic direction and ongoing improvements in financial performance [57] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore debt refinancing alternatives [8] - Capital expenditures for Q1 2026 were $5.2 million, with expectations to keep annual CapEx below 4% of revenue [20] Q&A Session Questions and Answers Question: Can you provide more detail on profitability and adjusted EBITDA trends? - Management indicated that seasonality impacts the first quarter, and increased operating expenses were noted, particularly in cost of goods sold [23][25] Question: What is the outlook for DSA awards and growth? - Management highlighted that DSA growth is supported by improved customer relationships and scientific capabilities, contributing to increased recurring sales [28][30] Question: How will the recent lease exits impact operating costs? - Management confirmed that lease exits will lead to additional cost reductions in the upcoming quarters, although current volume reductions in NHPs overshadowed some operating leverage benefits [38][40]

Core Viewpoint - The company, 澳博控股 (Amax Holdings), has announced the listing of its 2026 notes on the Hong Kong Stock Exchange, with a total principal amount of $500 million still outstanding [1] Group 1: Purchase Offer - The issuer of the 2026 notes is making a cash purchase offer to buy any and all validly delivered 2026 notes at a purchase price of $1,000 per $1,000 principal amount, subject to the terms and conditions outlined in the offer [1] - The purchase offer aims to acquire the total principal amount of the issued 2026 notes as part of the refinancing of the company's existing debt [1] Group 2: Management and Advisory - Deutsche Bank's Singapore branch is acting as the exclusive dealer manager for the offer, while Kroll Issuer Services Limited is serving as the information and delivery agent for the offer [1] Group 3: New Notes Issuance - SJM International Limited, a wholly-owned subsidiary of the company, is concurrently launching a priority note issuance guaranteed by the company, referred to as "synchronized new funding issuance" [1] - The synchronized new funding issuance is not part of the purchase offer and is conducted under a separate offering memorandum [1] - The offer is subject to several conditions, including the successful completion of the synchronized new funding issuance [1]

Core Viewpoint - The company plans to issue international notes through its wholly-owned subsidiary, aimed at non-U.S. persons outside the United States, under Regulation S of the U.S. Securities Act [1] Group 1 - The company will hold a series of fixed-income investor meetings and conference calls starting on or around January 5, 2026 [1] - The notes, if issued, will be backed by an irrevocable and unconditional guarantee provided by the company [1] - The net proceeds from the proposed issuance are intended for refinancing existing debt and general corporate purposes [1]

Core Insights - DXP Enterprises successfully completed a refinancing of $848 million, which includes $643 million in existing Term Loan B borrowings and an additional $205 million, aimed at enhancing liquidity and flexibility for growth [1] - The refinancing is expected to generate approximately $3.2 million in annual interest savings, allowing for strategic reinvestment and potential acquisitions [1] - DXP's sales have increased from $1.0 billion in 2020 to $1.96 billion for the twelve months ending September 30, 2025, with adjusted EBITDA rising from $64.9 million to over $225 million during the same period [1] - The company's pro forma net debt to EBITDA ratio stands at 2.8:1 following the refinancing [1] Company Overview - DXP Enterprises, Inc. is a leading distributor of products and services, providing value-added solutions to industrial customers across the United States, Canada, Mexico, and Dubai [1] - The company specializes in innovative pumping solutions, supply chain services, and maintenance, repair, operating, and production (MROP) services, leveraging extensive product knowledge and technical expertise [1] - DXP's business segments include Service Centers, Innovative Pumping Solutions, and Supply Chain Services, which create competitive advantages for customers [1]

Financial Data and Key Metrics Changes - For Q4 fiscal 2025, total revenue was $138.1 million, an increase of $7.7 million or 5.9% compared to Q4 fiscal 2024, primarily driven by the DSA segment [9][18] - For fiscal year 2025, total revenue was $513 million, an increase of $22.3 million or 4.5% compared to $490.7 million for fiscal 2024 [9][18] - The overall operating loss for Q4 fiscal 2025 decreased to $6.8 million from $13.2 million in Q4 fiscal 2024 [22] - Consolidated net loss attributable to common shareholders for Q4 fiscal 2025 was $8.6 million or a $0.25 loss per diluted share, compared to a loss of $18.9 million or $0.73 per diluted share in Q4 fiscal 2024 [26] Business Line Data and Key Metrics Changes - DSA revenue for Q4 fiscal 2025 was $51.6 million, a 15.7% increase year-over-year, driven by discovery and translational science services [19] - RMS revenue for Q4 fiscal 2025 was $86.5 million, an increase of $700,000 or 0.8% compared to Q4 fiscal 2024 [21] - DSA backlog was $138.2 million at September 30, 2025, compared to $129.9 million at September 30, 2024 [19] Market Data and Key Metrics Changes - The DSA backlog conversion rate was 37.4% for Q4 fiscal 2025, the highest quarterly conversion rate in three years [11] - Net new DSA Awards for Q4 fiscal 2025 were $54.2 million, a 61% increase over Q4 fiscal 2024 [20] Company Strategy and Development Direction - The company aims to improve cash flow and margins while focusing on customer metrics, with specific goals to enhance DSA revenue and margins [7] - The RMS site consolidation project is on track, with plans to close a total of 13 RMS facilities, which is expected to yield annual savings of $6 million to $7 million [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from a cybersecurity incident but expressed satisfaction with the recovery and ongoing demand trends [8][33] - The company is optimistic about maintaining revenue growth and improving margins, with a focus on cost reduction in the RMS business [39][40] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore potential debt refinancing alternatives [8] - Cash balance increased to $21.7 million as of September 30, 2025, compared to $6.2 million at June 30, 2025 [16][27] Q&A Session Summary Question: What were the headwinds faced in the quarter? - Management identified a cybersecurity incident as the major headwind, leading to increased costs and operational challenges [33][34] Question: What are the quarter-to-date trends regarding ordering patterns? - Management noted that the upcoming quarter is typically weaker due to holiday seasonality but expressed optimism based on recent revenue increases [38][39] Question: How is the company positioned regarding FDA guidance on animal models? - Management indicated minimal exposure to monoclonal antibodies and does not foresee significant impacts from the FDA's guidance [44][45] Question: What are the expectations for customer budgets in 2026? - Management observed an increase in quoting activity and expressed optimism about potential revenue growth for the next year [46][48] Question: How quickly can studies start for clients? - The company typically starts smaller studies within weeks, while larger animal safety assessments may take three to nine months [52]

Financial Data and Key Metrics Changes - For Q4 fiscal 2025, total revenue was $138.1 million, an increase of $7.7 million or 5.9% compared to Q4 fiscal 2024, primarily driven by the DSA segment [9][18] - For fiscal year 2025, total revenue was $513 million, an increase of $22.3 million or 4.5% compared to $490.7 million for fiscal 2024 [9][18] - The overall operating loss for Q4 fiscal 2025 decreased to $6.8 million from $13.2 million in Q4 fiscal 2024 [21] - Consolidated net loss attributable to common shareholders in Q4 fiscal 2025 totaled $8.6 million or a $0.25 loss per diluted share, compared to a loss of $18.9 million or $0.73 per diluted share in Q4 fiscal 2024 [26] Business Line Data and Key Metrics Changes - DSA revenue for Q4 fiscal 2025 was $51.6 million, a 15.7% increase year-over-year, driven by discovery and translational science services [19][20] - RMS revenue for Q4 fiscal 2025 was $86.5 million, an increase of $700,000 or 0.8% compared to Q4 fiscal 2024 [20] - DSA backlog was $138.2 million at September 30, 2025, compared to $129.9 million at September 30, 2024 [19] Market Data and Key Metrics Changes - The book-to-bill ratio for DSA for Q4 fiscal 2025 was 1.08 to 1, indicating strong demand [19] - DSA cancellations and negative change orders in Q4 fiscal 2025 were approximately 29% lower compared to the prior year [20] Company Strategy and Development Direction - The company aims to improve DSA revenue and margins while continuing RMS site consolidation to reduce costs [6][9] - The plan includes closing 13 RMS facilities over three years to modernize operations and improve efficiency [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from a cybersecurity incident but expressed satisfaction with the recovery and ongoing demand [7][16] - The company remains optimistic about maintaining revenue growth and improving margins in the upcoming quarters [37][41] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore debt refinancing alternatives [8] - Cash from operations in Q4 fiscal 2025 was $14.3 million, increasing the cash balance to $21.7 million [16][27] Q&A Session Summary Question: What were the headwinds faced in the quarter? - The major headwind was a cybersecurity incident that caused additional expenses and operational challenges, though the company managed to achieve significant awards despite this [31][32] Question: What are the quarter-to-date trends regarding ordering patterns? - The company typically sees a slowdown during the holiday season, but recent quoting activity has been encouraging, with a focus on cost reduction in the RMS business [35][36] Question: How is the company positioned regarding FDA guidance on animal models? - The company has minimal exposure to monoclonal antibodies and does not anticipate significant impacts from the FDA's new guidance [39][40] Question: What are the expectations for customer budgets in the upcoming year? - The company is seeing an increase in quoting activity and anticipates a substantial increase in bookings, indicating a positive outlook for next year's budgets [41] Question: How quickly can studies start for clients? - The company can typically start smaller studies within weeks, while larger animal safety assessments may take three to nine months [42]

Core Viewpoint - Havila Kystruten AS has successfully completed a EUR 456 million refinancing, enhancing its financial stability and structure [1][3] Financing Details - The refinancing was executed through a 15-year financial lease facility from a subsidiary of Havila Holding AS, with all outstanding bond debt and shareholder loans fully repaid at closing [1] - The total hire under the facility is EUR 150,000 per day, with a fixed hire structure increasing from EUR 93,000 in year 1 to EUR 125,000 in year 4, and then EUR 123,500 from year 6 onwards [2] Future Outlook - The completion of the refinancing provides the company with a stable and predictable financing structure, which may be optimized or refinanced in the future [3]

Financial Data and Key Metrics Changes - Fundings for the last quarter totaled $126.6 million, with net originations at $103.1 million, while exits and prepayments declined to $23.5 million [4] - Interest income rose 14% to $23.8 million, driven by a 16.2% increase in average earning assets, although the weighted average portfolio yield declined by 30 basis points to 12.5% [4][9] - Net investment income for the period was $11.4 million, with net realized losses of $6.3 million related to the exit of FES Resources [5][9] - Total assets increased to $908 million, with net assets rising to $482 million, and NAV per share increased from $21.25 to $21.34 [10][11] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with new originations predominantly in first lien debt, which rose to 72% of the portfolio's fair value [5] - PIC income increased to $2 million, representing 8.4% of interest income, largely from two recent investments [6] Market Data and Key Metrics Changes - The company experienced a significant increase in fair value of the investment portfolio by $63 million for the fiscal year, despite challenges in fiscal 2025 [6][7] - The company maintained a conservative leverage position with net debt at 82.5% of NAV [8] Company Strategy and Development Direction - The company continues to focus on investing in growth-oriented lower middle market businesses, supporting mid-sized private equity funds [15] - The strategy includes expanding private equity sponsor relationships and positioning as the lead lender in most deals [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the lower middle market remaining insulated from spread erosion and leverage escalation [7] - The company is well-positioned to increase investments as new private equity platforms seek growth through acquisitions [7] Other Important Information - Monthly distributions for November and December will be $0.15 per common share, with an annual run rate of $1.80 per share [11] - The company is considering share repurchases due to the stock price being at a discount [33] Q&A Session Summary Question: Update on the pipeline and mix of new versus add-on opportunities - The company is tracking approximately $100 million of potential volume, with a mix of new and follow-on acquisition opportunities [20][21] Question: Decline in portfolio yield - The decline was primarily due to lower base rates, with new deals still maintaining attractive spreads [25][26] Question: Consideration of share repurchases - The company is tempted to consider share repurchases given the stock price and low leverage [33] Question: Dividend reduction reasoning - The reduction was a proactive measure to maintain financial flexibility in light of potential rate compressions [39][41] Question: Outlook for elevated repayment activity - Management believes that while some larger transactions may turn over, the overall portfolio remains stable, and they are not overly concerned about repayment activity [46][48] Question: Credit concerns in the portfolio - Management noted that while there are some challenges in certain businesses, the overall leverage position remains secure [49][51]