StealthGas (GASS) Q2 2025 Earnings Call August 25, 2025 10:00 AM ET Company ParticipantsMichael Jolliffe - Chair of the BoardKonstantinos Sistovaris - Interim CFOHarry Vafias - President, CEO, CFO & Non-Independent DirectorOperatorGood day, and thank you for standing by. Welcome to the StealthGas Q2 twenty twenty five Results Webcast and Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mr. Michael Jolliffe ...

Financial Data and Key Metrics Changes - The company reported revenues of $47.2 million for Q2 2025, a 13% increase year-on-year from $41.8 million in Q2 2024 [3][16] - Adjusted net income for Q2 2025 was $21.7 million, a 35% increase from the previous quarter but a 20% decrease from the same quarter last year [4][19] - Earnings per share on an adjusted basis were $0.59 for the quarter, marking the second most profitable quarter in the company's history [4][20] Business Line Data and Key Metrics Changes - The company maintained a high period coverage of over 70% of fleet days for 2025, securing approximately $150 million in future revenues [5][11] - Operating expenses for Q2 were €12.7 million, reflecting a mere 1.5% increase from last year [16] - The income from operations reached a record $19.7 million, a substantial 22% increase compared to last year [17] Market Data and Key Metrics Changes - Global LPG exports grew by 6.6% in the first half of 2025, with U.S. exports continuing to increase year-on-year [23] - China's LPG imports in May 2025 climbed to 3.4 million tons, registering a 6.7% increase [25] - The shipping market remains stable, with firm rates in Europe, although there was a slight drop in activity typical of seasonality [28] Company Strategy and Development Direction - The company has completed its strategic objective of deleveraging, repaying $86 million in debt this year and achieving zero debt for its fully owned fleet [5][21][32] - The company is focusing on maintaining a visible revenue stream and is adjusting its fleet positioning to capitalize on higher rates in Europe [12][13] - The company plans to continue looking for opportunities to sell older vessels and replace them with newer tonnage [6] Management's Comments on Operating Environment and Future Outlook - Management noted that trade frictions have created uncertainty, but improvements have been observed since Q1 2025 [32] - The company is optimistic about the fundamentals for LPG shipping, expecting chartering activity to pick up in the fourth quarter [32] - The situation regarding the Echo Wizard incident is being addressed, and the company is committed to a swift resolution [31] Other Important Information - The company completed the sale of one vessel in Q2 and has entered into an agreement to sell another vessel later in the year [6] - The Echo Wizard vessel was involved in an incident that will keep it out of service for a considerable time, impacting revenue generation [31] Q&A Session Summary Question: What is the outlook for the LPG market? - Management indicated that despite trade upheaval, global LPG exports continue to show strong growth, particularly from the U.S. [23] Question: How is the company addressing the incident with the Echo Wizard? - Management is working on a swift resolution to the situation and will provide updates as it progresses [31]

Financial Data and Key Metrics Changes - CAE reported record revenue of $4.7 billion, an increase of 10% from the previous year [31] - Adjusted segment operating income reached $732 million, up 33% from $550 million in fiscal 2024 [31] - Free cash flow was $814 million, reflecting disciplined capital management [31] - Adjusted backlog increased to $20.1 billion, up 66%, indicating strong visibility and long-term stability [31] Business Line Data and Key Metrics Changes - Civil aviation revenue was $2.7 billion, up 11%, with adjusted segment operating income of $581.5 million, an increase of 6% [32] - Civil adjusted backlog reached a record $8.8 billion, reinforcing CAE's position as a leading training provider [32] - Defense and security segment revenue was $2 billion, up 8%, with significant improvements in adjusted segment operating income [35] Market Data and Key Metrics Changes - The global fleet is expected to nearly double over the next two decades, with a demand for 300,000 new pilots in the next ten years [32] - Canada is set to reach 2% of GDP on defense spending this year, five years ahead of schedule, with a commitment to 5% by 2030 [34] - NATO is discussing targets as high as 5% in response to increased security concerns, indicating a growing defense market [34] Company Strategy and Development Direction - CAE aims to focus on long-term strategy, disciplined capital allocation, and creating sustainable value for shareholders [4] - The company plans to leverage advanced defense technologies across its portfolio, including commercial aviation [50] - CAE will prioritize operational efficiency and capital allocation to generate strong cash flow and support strategic investments [50] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong fundamentals in both civil aviation and defense, with enduring demand and growth opportunities [40] - The company is well-positioned to deliver integrated training solutions that support modernization across multiple domains [40] - Management expressed confidence in achieving deleveraging targets and improving credit ratings in the future [81] Other Important Information - The leadership transition to Matthew Bromberg as the new CEO is expected to bring fresh perspectives and continued growth [6][46] - The company has a strong commitment to customer satisfaction and maintaining high standards of quality and safety [42] Q&A Session Summary Question: What is the role of the Executive Chair and collaboration with the new CEO? - The Executive Chair will focus on long-term strategy and capital allocation while the CEO manages daily operations, ensuring a strong partnership [56][58] Question: How will American tariffs on Canada impact CAE? - CAE is well-positioned as approximately 70% of its work is domestic and key products are exempt under USMCA [61][62] Question: When will defense opportunities translate into revenue for CAE? - Revenue from defense contracts is already being realized, although the procurement process can take time [64][66] Question: Why is defense profitability lower compared to civil? - Defense contracts often have profit limitations due to government regulations, but they provide stable long-term revenue streams [72][74] Question: Why is CAE's credit rating not stronger despite stable business? - The company is focused on achieving deleveraging targets, which should positively influence credit ratings in the future [81][82]

Cogent Communications (CCOI) Conference Summary Company Overview - **Company**: Cogent Communications (CCOI) - **Date of Conference**: August 12, 2025 - **Speaker**: Dave Schafer, CEO of Cogent Communications Key Points Company and Financial Situation - Cogent's shares have seen a significant decline recently, attributed to tax situations rather than commercial real estate concerns [3][12] - The CEO's equity position in Cogent was reduced from 23% to 0.7% during the telecom crash, but he has since rebuilt it to 11% through stock compensation [4][5] - The CEO has injected $152.34 million into his real estate portfolio, which has seen a decline in value, leading to increased loan-to-value (LTV) ratios [10] - The company has returned nearly $2 billion to shareholders, primarily through dividends and stock buybacks [13][65] Earnings and Growth - The company experienced an EBITDA miss and a decline in revenue, but the CEO emphasized that revenue decline was anticipated due to the Sprint acquisition [12][14] - Cogent has a historical compounded growth rate of over 10% for 17 years prior to the Sprint acquisition, which was a declining business [15] - The company reported a 27% sequential revenue growth in its Waves business and a 149.8% year-over-year growth [24] Competitive Landscape - Competitors like Lumen and Zayo are active in the market, but Cogent believes its network architecture provides a competitive advantage [34][35] - The company has a pricing strategy that generally offers a 20% discount compared to competitors, aiming to capture market share without destroying market pricing [46] Data Center Sales - Cogent is in the process of selling non-strategic data centers, with a targeted valuation of $10 million per megawatt [51][56] - The company has received interest from over 160 parties, with ongoing tours and negotiations [57][58] - The CEO emphasized the importance of not negotiating against themselves and the need for buyers to prove their ability to perform [53][60] Future Outlook - The company aims to grow its EBITDA and return capital to shareholders without needing to monetize non-core assets [65][66] - The CEO expressed confidence in achieving a $20 million revenue run rate for the Waves business by year-end [31][32] - The company is focused on building recurring free cash flow and is not reliant on one-time asset sales for value creation [86][87] Market Trends - The internet traffic growth has slowed to 9% year-over-year, contrasting with previous higher growth rates, attributed to market saturation and the company's significant market share [92][94] - Cogent is expanding into new markets, including India, which is expected to provide additional growth opportunities [101][102] Capital Expenditure and Strategy - The company has slowed the rate of new building additions and is focusing on optimizing existing assets [105][106] - Future capital deployment will prioritize areas with a return on invested capital (ROIC) significantly above the cost of capital [106] Additional Insights - The CEO highlighted the importance of quality in service delivery as a key competitive advantage [41][42] - The company is cautious about pricing strategies and market dynamics, particularly in the context of larger deals and RFPs [47][48] This summary encapsulates the key discussions and insights from the Cogent Communications conference, providing a comprehensive overview of the company's current status, challenges, and future strategies.

Financial Data and Key Metrics Changes - Subscription revenue reached $1,340 million, a 16% increase compared to the same period in 2024 [6][14] - Net revenue for the 2025 cycle to date reached $1.488 billion, a 14% increase compared to the same period in 2024 [7][14] - Adjusted EBITDA reached $462 million with a margin of 31.1%, reflecting an 8.1% increase compared to the previous cycle [15][18] - Free cash flow totaled $223 million, an increase of 147% from 2024 [18][19] - Adjusted net losses totaled $29 million, an improvement from the adjusted net loss of $37 million in the same quarter of 2024 [18] Business Line Data and Key Metrics Changes - The complementary solutions business grew by 24%, supported by an expanded student base and market penetration [7] - In the B2G segment, revenue from new customers totaled $9 million, contributing to $14 million from new customers over the last two quarters [7][13] - Non-subscription revenues increased by 98% to $29 million due to seasonal effects [13] Market Data and Key Metrics Changes - The average payment terms for accounts receivable was 153 days, one day higher than the comparable quarter [22] - The net debt position decreased to $917 million, down $46 million from the previous quarter [22][23] Company Strategy and Development Direction - The company is committed to innovation and inclusion, with plans to introduce new tools focusing on equity and personalized learning in 2026 [11] - The strategy includes diversifying the B2G portfolio into states and municipalities, with a positive outlook for new contracts [30] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the commercial cycle and expects continued growth in complementary products [28][30] - The company anticipates a strong performance in the second half of the year, particularly in B2G contracts [36][38] Other Important Information - The company has implemented operational discipline measures, including automation in collection processes and centralized payment scheduling [19] - The net debt to last twelve months adjusted EBITDA ratio decreased to 1.9 times, down from 2.28 times in Q2 2024 [10][23] Q&A Session Summary Question: Comments on the commercial cycle and competitive environment - Management noted a positive outlook for complementary products and a strong portfolio supporting growth despite market competition [28][30] Question: Outlook for B2G contracts in an election year - Management indicated that while there is uncertainty, new governors and mayors may be open to new contracts, maintaining a positive outlook [32] Question: Impact of premium schools on EBITDA margin - Management confirmed that premium products and growth have positively influenced margins, with expectations for Q4 to exceed 30% [36] Question: Expectations for B2G in the second half of the year - Management expects growth in B2G contracts, particularly with the recognition of the Para contract and new customer acquisitions [36][38] Question: Start Anglo operations and non-subscription revenue - Management expects new contracts for Start Anglo to begin operations in 2026, with non-subscription revenue driven by tuition from flagship schools [43][44]

Summary of Key Points from Conference Call Industry Overview - The macroeconomic environment is characterized by all-time highs in global markets, but underlying issues are emerging, particularly in the U.S. and Europe [1][2] - The divergence between headline index performance and investor performance is notable, with market-neutral and systematic quant strategies facing challenges [3][4] Macro Insights - Upcoming Federal Reserve decisions and employment data are expected to influence interest rates, consumer behavior, and inflation trends [5][6] - Inflation is becoming a pressing concern, with recent CPI data indicating rising prices in various consumer sectors, including household goods and clothing [19][20] Micro Insights - Major tech companies like Microsoft, Meta, Apple, and Amazon are set to report earnings, which will significantly impact market sentiment and AI capital expenditure expectations [5][6] - The recent profit warning from Novo Nordisk, resulting in a ~25% stock drop, highlights the volatility in crowded stocks [5][6] Trade and Tariff Developments - Trade deals, particularly with Japan and Europe, have had mixed responses, revealing structural pain points in industries like automotive [9][10] - The removal of uncertainty regarding tariffs has shifted focus from fear of rates to the actual costs of tariffs, affecting prices, margins, and earnings [9][10] Currency and FX Impacts - The U.S. dollar is experiencing its weakest start to a year in 50 years, impacting earnings for both U.S. and European companies [11][12] - Currency fluctuations are expected to be a significant factor in the upcoming earnings season, alongside tariff impacts [11][12] M&A and Market Activity - There is a potential resurgence in M&A activity as geopolitical concerns and macroeconomic headwinds ease, with a focus on scale, geographical exposure, and diversification [15][16] - Recent IPOs, such as Galderma, have shown strong performance post-listing, indicating a healthy appetite for quality assets [16][17][18] Valuation Trends - The return of unicorns and AI-related startups is noted, with significant value creation in private markets [18] - Recent IPOs have created substantial value for investors, with some companies seeing stock price increases of 100% to 300% since listing [18] Risks and Concerns - There are concerns about retail euphoria and the potential for a market correction, particularly if inflation continues to rise and long-term bond yields break out [7][8] - The social and employment impacts of AI advancements are less discussed but pose significant risks for workforce transitions [7][8] Conclusion - The market is navigating a complex landscape of macroeconomic indicators, corporate earnings, and geopolitical developments, with a cautious outlook on inflation and potential market corrections ahead.

Company Overview - DMC Global (BOOM) shares increased by 12.4% in the last trading session, closing at $8.16, with notable trading volume compared to typical sessions, and a 6.9% gain over the past four weeks [1] - James O'Leary has been appointed as the permanent president and CEO, having served as interim since November 29, 2024, with a focus on deleveraging the balance sheet and restoring capital structure [2] Financial Performance - DMC Global is expected to report quarterly earnings of $0.05 per share, reflecting a year-over-year decline of 82.8%, with revenues projected at $150.8 million, down 11.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - DMC Global is part of the Zacks Industrial Services industry, where another company, Fastenal (FAST), saw a 1.6% increase in its stock price, closing at $41.96, with a 0.2% return over the past month [4] - Fastenal's consensus EPS estimate has increased by 0.6% over the past month to $0.28, representing a 12% change compared to the previous year's EPS [5]

Core Viewpoint - Wells Fargo has issued an "overweight" rating for Dell Technologies (DELL.US) with a target price of $150, representing a 30% upside from the current stock price, despite recent concerns regarding potential cost-cutting measures by the U.S. federal government [1][2] Group 1: Financial Performance and Projections - Dell's projected total revenue from federal contracts in 2024 is approximately $3.04 billion, with 56% from defense contracts and 44% from civilian contracts, reflecting a 15% year-over-year increase from $1.82 billion in 2022 [1] - For the fiscal year 2025, Dell's commercial revenue is estimated at $43.89 billion, with about 70% derived from the U.S., and approximately 10% of U.S. commercial revenue related to federal government contracts, indicating a risk exposure of around $3 billion in personal computer business related to the federal government [1] Group 2: Market Position and Strategic Outlook - Wells Fargo's positive outlook on Dell is based on the company's execution of deleveraging and its shift towards capital return initiatives, including share buybacks and dividends [2] - The bank also views Dell's ability to leverage its supply chain economies of scale favorably, highlighting the attractiveness of its long-term risk/reward profile due to its diverse investment portfolio and depth in hardware and software [2]

Core Viewpoint - Fund managers are in a dilemma after the strongest May performance in over 30 years for the US stock market, facing the decision to chase gains or wait for a pullback [1][2] Market Performance - The Nasdaq rose by 9% and the S&P 500 increased by 6% in May, marking the best performance for the month in over 30 years [5] - The IPO market is experiencing a resurgence, with notable gains from companies like Coreweave and Circle [5] Economic Indicators - Despite a lack of fear factors in the market, economic data appears weak, and the probability of recession has not surged [4][6] - The upcoming CPI report is anticipated to show a 0.3% month-over-month increase, raising the year-over-year core reading to 2.9%, above the Federal Reserve's 2% target [5][6] Investor Sentiment - There is a prevailing sense of complacency among investors, but underlying risks remain, including geopolitical tensions and trade uncertainties [7][10] - The S&P 500 has lagged behind the MSCI global index (excluding the US) by nearly 12 percentage points, indicating a poor relative performance [8] Political and Trade Risks - Political risks are resurfacing, particularly related to Trump's policies and potential retaliatory tariffs from the 899th clause, which could impact various countries and sectors [10] - The dollar's weakening is becoming a significant variable, with the S&P 500's performance affected by currency adjustments [10] Market Dynamics - Despite a vibrant market, trading volume has hit a low for the year, revealing deep-seated divergences among investors [12] - Fund managers who missed the recent rally face a critical decision on whether to reallocate now or wait for a minor correction, which could significantly impact their annual performance [12]

Core Viewpoint - Fund managers are in a dilemma after the strongest May performance in over 30 years for the US stock market, facing a critical decision that could determine their annual performance: whether to chase the rally or wait for a pullback [1][2] Market Performance - The S&P 500 index is currently 2.3% away from its historical high, facing short-term resistance around 6000 points, with a notable calm period where the index's daily fluctuations did not exceed 0.6% for seven consecutive trading days [2][4] - In May, the Nasdaq rose by 9% and the S&P 500 increased by 6%, marking the best May performance in over 30 years [4] Economic Indicators - Despite a lack of fear factors in the market, economic data appears weak, and the probability of recession has not surged, with US companies continuing to report solid earnings [2][3] - The upcoming Consumer Price Index (CPI) report is anticipated to show a 0.3% month-over-month increase in core readings, raising the year-over-year figure to 2.9%, exceeding the Federal Reserve's 2% target [4][5] Investor Sentiment - There is a prevailing sense of complacency among investors, with concerns about potential risks being overshadowed by a belief that trade and tariff risks are under control [6][7] - The market is experiencing a divergence in trading volume, with the lowest trading volume of the year occurring recently, indicating underlying market disagreements [10] Political and Trade Risks - Political risks are resurfacing, particularly with the breakdown of relations between Trump and Musk, which led to a sell-off in the S&P 500 and an 18% drop in Tesla's stock [8] - The introduction of the 899th clause, which could impose retaliatory taxes on countries deemed to have "unfair foreign tax practices," is raising concerns among investors regarding its potential impact on various sectors [8] Global Market Comparison - The S&P 500 has underperformed the MSCI global index (excluding the US) by nearly 12 percentage points in 2025, marking the worst relative performance since 1993 [6] - The gap in absolute returns between the S&P 500 and the German DAX index is about 20%, which widens to approximately 30% when adjusted for currency fluctuations [8]