Financial Data and Key Metrics Changes - For fiscal 2024, the company reported net sales of $302 million, a decrease of 15.5% compared to the previous year, primarily due to lower demand across end markets [21][22] - Gross profit margin for the year was 17.6%, within the long-term target range of 17% to 19% [22] - Adjusted EBITDA for the year was $33.8 million, representing an adjusted EBITDA margin of 11.2% [22] - The company generated record cash flow from operations of $35 million, translating to free cash flow of $23.6 million for the year [23][29] - The fourth quarter saw net sales of $62.5 million, down 15.3% from the prior year, with a gross margin of 15.8% [23][24] Business Line Data and Key Metrics Changes - The company won $45 million in new business in 2024, with nearly all of it launching in 2025 [19] - The replacement business secured in 2024 indicates customer trust in the company's performance and ability to deliver [19] - The company reported an 8% sales growth from new business wins on top of 2024 product sales [19] Market Data and Key Metrics Changes - The truck market is currently experiencing a cyclical downturn, with expectations for a cyclical upturn in the second half of 2025 and throughout 2026 due to upcoming environmental regulation changes [21][22] - Demand in end markets such as industrials, utility, and building products grew compared to the prior year quarter, with expectations for continued rebound in 2025 [24] Company Strategy and Development Direction - The company aims to drive growth both organically and through acquisitions, with a focus on investor growth as a key initiative for 2025 [12][30] - The strategy includes investing in top coat paint capabilities at the Matamoros facility to enhance service offerings in growing markets like construction and agriculture [13] - The company is actively pursuing acquisitions to diversify its business and expand into new sales channels [45][47] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment, with customers exhibiting caution in decision-making due to tariff discussions [64][65] - The company remains confident in its ability to maintain gross margins between 17% and 19% despite changes in revenue mix [33][79] - Management expects the Volvo transition to reduce revenues by approximately $30 million in 2025, but anticipates offsetting this through higher tooling sales and new program launches [32][33] Other Important Information - The company repurchased approximately 172,000 shares at an average price of $17.09 per share [32] - Total outstanding liquidity as of December 31, 2024, was $91.8 million, including $41.8 million in cash [29] Q&A Session Summary Question: What is the current visibility from customers regarding the full-year outlook? - Management noted that there is a lot of waiting from customers for decisions on large programs due to macroeconomic uncertainties and tariff discussions [64][65] Question: How is the company managing the impact of tariffs? - The company has set up a process to communicate and pass through costs to customers, ensuring transparency in pricing adjustments related to tariffs [70][71] Question: What is the expected impact of the Volvo transition on revenues? - Management expects the Volvo transition to reduce revenues by approximately $30 million in 2025, but anticipates offsetting this through increased tooling sales [32][33] Question: How does the company view share repurchases versus acquisitions? - Management believes in a balanced approach, allocating capital to both share repurchases and acquisitions to support long-term growth [93][95] Question: What is the anticipated revenue mix from new business and truck business in the second half of the year? - Management indicated that the revenue increase will be a combination of truck business recovery and new business launches, with tooling sales expected to ramp up significantly [105][111]