Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 increased 18% year over year to $35.3 million, driven primarily by volume gains and new customer expansions [20][21] - Gross profit rose 23.1% to $9.2 million, with gross margin improving to 26.1% from 25% in the same quarter last year [21][22] - Net income increased 123% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in the prior year [22][23] - Cash and cash equivalents grew to $12 million from $7.2 million, driven by $6 million in cash flow from operations [23][24] Business Line Data and Key Metrics Changes - The company achieved significant operational efficiency improvements, particularly in chicken operations, with capacity more than doubling year over year [11][12] - Trade promotion investments increased to a record 6% of gross revenue, up from 2% in the previous quarter, reflecting a strategic focus on brand building [15][20] - The company reported that in-house trimming processes are running 35% ahead of plan, contributing to margin enhancements [12][14] Market Data and Key Metrics Changes - The company is benefiting from a shift towards deli prepared foods as consumers opt for supermarket prepared meals due to rising restaurant prices [9][10] - Recent data indicates that over two-thirds of shoppers have purchased deli prepared meals recently, with millennials and Gen Z driving growth [10] Company Strategy and Development Direction - The company is focused on its foundational four Cs strategy: cost, controls, culture, and catapult, aiming for operational excellence and market share gains [10][11] - Strategic investments in production capabilities and automation are expected to deliver meaningful returns and support sustainable growth [25] - The company is actively evaluating potential M&A opportunities to enhance category leadership and expand capabilities [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining double-digit growth rates despite macroeconomic challenges, citing strong demand from retailers [28][30] - The company is optimistic about gross margin improvements, supported by hedging strategies and operational efficiencies [32][34] - Management highlighted the importance of profitable growth and the need to balance trade promotion investments with margin targets [30][38] Other Important Information - The company has refined its acquisition criteria, focusing on targets that enhance capabilities and scale operations [54][56] - The company is seeing increased inbound interest for potential acquisitions, indicating a strong pipeline of opportunities [54][56] Q&A Session Summary Question: Growth rate expectations for the rest of the year - Management remains confident in achieving double-digit growth rates, supported by strong retailer demand and consumer trends [28][30] Question: Gross margin outlook amidst chicken price volatility - Management believes that operational efficiencies and hedging strategies will help maintain gross margins despite commodity volatility [32][34] Question: In-house chicken trimming capabilities - Management confirmed that achieving 100% in-house trimming is feasible within the year, with operational capabilities already in place [42][45] Question: Future capital expenditures - Management indicated that while there are no major capital projects planned, smaller investments will continue to support operational needs [46][48] Question: M&A criteria changes - Management clarified that the focus remains on acquiring deli companies with manufacturing capabilities, with a strong pipeline of opportunities [54][56] Question: Costco promotions and opportunities - Management confirmed ongoing discussions for additional promotions with Costco and expressed optimism about the club channel's growth potential [60][62] Question: Pricing strategy and implementation - Management refrained from providing specific quantification on pricing changes but emphasized collaborative efforts with customers to maintain margins [66][68] Question: Update on Walmart, Kroger, and Target rollouts - Management reported positive progress with Walmart and ongoing discussions with Kroger and Target, highlighting the importance of diversifying customer relationships [74][76]

Financial Data and Key Metrics Changes - The company reported record first quarter revenue of $15,600,000, an increase of 184% compared to $5,500,000 in the same quarter last year [6][17] - Adjusted EBITDA was negative $5,100,000 for the first quarter of 2025, an improvement from negative $6,900,000 in the first quarter of 2024 [19] - The net loss for the first quarter of 2025 was $15,500,000 or $0.41 per diluted share, compared to a net loss of $20,100,000 or $0.55 per diluted share in the first quarter of 2024 [19] - Total cash and cash equivalents at the end of the first quarter of 2025 were $22,300,000, up from $6,800,000 at the end of the first quarter of 2024 [20] Business Line Data and Key Metrics Changes - Revenue from ongoing operations, including FMS, more than doubled to approximately $9,700,000 compared to approximately $4,500,000 in the first quarter of 2024 [18] - The company added two exclusive use contracts, including a five-year $20.1 million contract with the U.S. Department of the Interior [9][10] Market Data and Key Metrics Changes - Wildfire activity in 2025 has been above average, with nearly 22,000 fires and close to 1,000,000 acres burned to date [6][7] - The company anticipates above-normal temperatures and dryer conditions across much of the U.S. through August, which may drive increased demand for firefighting services [7] Company Strategy and Development Direction - The company is focusing on year-round readiness and has deployed its MMA fleet for enhanced wildfire response effectiveness [5] - There is a strategic emphasis on securing exclusive use contracts to increase revenue stability and reduce volatility [9][25] - The company is exploring opportunities in Europe, specifically with Turkey and Portugal, to expand its firefighting assets [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about beneficial changes at the federal and state levels that could enhance wildfire response capabilities [8][9] - The company expects to generate another year of positive cash from operating activities in 2025, with a projected revenue growth of 20% in adjusted EBITDA [22][24] - The management highlighted the importance of maximizing exclusive use commitments to ensure fleet dedication to wildfire response efforts [25] Other Important Information - The company is actively working on integrating advanced sensor systems with its Ignis Technologies platform to enhance operational effectiveness [13] - The partnership with MAB Funding LLC for the Spanish Scoopers is progressing, with plans to deploy them in Europe for the 2025 wildfire season [14][15] - The company announced a memorandum of understanding with Positive Aviation to become the exclusive North American launch customer for the FF72 aircraft [15][16] Q&A Session Summary Question: Regarding the President's budget request and DHS funding - Management confirmed that the PC-12s are currently on contract with high utilization and are looking at new contract opportunities as the budget progresses [29][30] Question: About negotiations with European countries - Management indicated ongoing discussions with Turkey and Portugal, with interest in expanding contracts for firefighting aircraft [33][34]