Core Viewpoint - Apogee Therapeutics is initiating a new capital-raising effort aiming to generate approximately $300 million through a secondary stock offering, which has positively impacted its stock price, increasing nearly 13% in value [1][2]. Group 1: Capital-Raising Details - The company plans to offer over 6.95 million shares at a price of $41 each, along with pre-funded warrants for certain investors, allowing them to purchase up to 365,853 additional shares at a price slightly below $41 [3]. - Underwriters have the option to buy up to nearly 1.1 million additional shares, enhancing the total potential capital raised [3]. Group 2: Use of Proceeds - Apogee intends to utilize the proceeds from this capital raise, along with existing cash and liquid assets, to fund preclinical studies, clinical trials, manufacturing, and commercial readiness activities for its antibody programs [4]. - Increased research and development spending is also highlighted as a potential target for the incoming funds [4].

Financial Data and Key Metrics Changes - Fiscal 2025 was a record year for the company, with net income from continuing operations reaching $15.7 million in the fourth quarter, a significant improvement from a net loss of $0.6 million in the prior year period [20][4] - Book value per share increased by approximately 24% year over year to $2.65 as of June 30, with a pro forma book value of $2.58 after recent capital raises [7][21] - Revenue for the fourth quarter was $5.6 million, compared to $8.9 million in the prior year, but excluding a one-time property sale, revenue grew over 140% year over year [19][7] Business Line Data and Key Metrics Changes - The credit business, GECC, generated record investment income and incentive fees, with net investment income exceeding quarterly distributions, supporting a 6% increase in dividends to $0.37 per share [10][4] - Monomoy Construction Services (MCS) launched in February and contributed nearly $1 million in revenue in its initial months, with expectations to more than double its revenue in fiscal 2026 [12][5] - The Great Elm Credit Income Fund posted net returns of 21% for the six months ended June 30, driven by unrealized appreciation in CoreWeave-related investments [11][20] Market Data and Key Metrics Changes - Assets under management in fee-paying AUM totaled approximately $759 million, up 4% from the prior year [19] - The company closed the year with $31 million in cash, which is expected to exceed $40 million on a pro forma basis after recent capital raises [8][21] Company Strategy and Development Direction - The company entered a strategic partnership with Kennedy Lewis Investment Management, which includes a $100 million term loan to Monomoy REIT and a commitment of up to $150 million to accelerate real estate platform growth [15][16] - The launch of MCS is part of a broader strategy to create a fully integrated real estate platform, enhancing development timelines and tenant relationships [12][5] - The company aims to scale its real estate revenues significantly, targeting $1 billion in assets and a potential future IPO for Monomoy REIT [16] Management's Comments on Operating Environment and Future Outlook - Management views fiscal 2025 as an inflection point, with record results and new capital and partnerships positioning the company for continued growth [5][18] - The company expressed confidence in its ability to deliver sustained long-term value to shareholders, supported by a strong balance sheet and strategic initiatives [18][24] Other Important Information - The board expanded the stock purchase program by $5 million, bringing the total program size to $25 million, with $15.7 million remaining in capacity [8] - The company repurchased 5.1 million shares for $9.3 million at an average of $1.85 per share, contributing to the increase in book value [8][21] Q&A Session Summary Question: Are there any questions from participants? - There were no questions from participants during the Q&A session [23]

Core Insights - The company reported a net income of $11.0 million, or $0.71 per share, representing a 56% increase year-over-year and an $847,000 increase over the prior quarter [5][17] - A follow-on capital raise generated $76.3 million net, which will be used to reduce overnight borrowings and fund new loans over time [8][22] - The company announced the acquisition of Farmers Savings Bank, expected to close in the fourth quarter, which will enhance core deposit funding and improve capital ratios [8][20] Financial Performance - Net interest income increased to $34.8 million, up $2.0 million or 6.2% sequentially, driven by a rise in earning asset yields [6][18] - Pre-provision net revenue rose by $3.3 million, or 37.5%, year-over-year, and by $770,000, or 6.7%, over the linked quarter [5][17] - Noninterest income decreased by $1.3 million, or 16.2%, from the previous quarter, primarily due to reduced leasing and residential fee revenues [3][22] Loan and Deposit Metrics - The loan-to-deposit ratio increased to 98.6%, higher than desired, with expectations for reduction following deposit initiatives and the Farmers acquisition [4][31] - Total loans and leases grew by $47.1 million, representing an annualized growth rate of 6.1%, with residential loans being the largest segment increase [6][26] - Total deposits declined by $42.7 million, or 1.3%, mainly due to the exit of a single municipal customer [7][29] Capital and Credit Quality - Pro forma capital ratios are projected to improve, with the tangible common equity ratio rising to 8.6% and the tier one leverage ratio to 10.6% post-capital raise and acquisition [9][33] - The allowance for credit losses to total loans was 1.28%, with an allowance for credit losses to nonperforming loans at 175%, up from 122% at the end of 2024 [9][35] - Criticized credits decreased by $2 million, indicating stable credit quality metrics [9][34] Strategic Initiatives - The company launched a new digital account opening platform aimed at attracting customers outside current branch locations [10][30] - Management aims to reduce the loan-to-deposit ratio to a target range of 90-95% through various deposit initiatives [31] - The acquisition of Farmers Savings Bank is seen as a strategic move to leverage their low-cost core deposits and enhance loan growth opportunities [20][21]

Core Viewpoint - AeroVironment's recent capital-raising efforts have negatively impacted investor sentiment, leading to a stock price decline of over 11% [1]. Group 1: Capital-Raising Activities - AeroVironment announced a secondary share offering and an issue of convertible senior notes [2]. - The company plans to sell just over 3.5 million shares at $248 per share, with underwriters having a 30-day option to purchase an additional 29,234 shares [4]. - The convertible senior notes will total $650 million at a 0% interest rate, convertible under certain conditions at an initial rate of over 3.1 shares per $1,000 principal, equating to $322.40 per share [5]. Group 2: Financial Expectations and Use of Proceeds - The company expects to close both issues on July 3, with net proceeds around $1.47 billion, using over $965 million to retire debt and the remainder for general corporate purposes, including increasing manufacturing capacity [6]. Group 3: Shareholder Concerns - With approximately 45.6 million shares outstanding, high conversion rates from the notes could lead to shareholder dilution, which is a significant concern for investors [7]. Group 4: Company Fundamentals - Despite the capital-raising activities, AeroVironment remains a strong investment due to its performance in meeting the growing demand for combat drones, as evidenced by its impressive fourth-quarter results and increasing backlog [8].

Financial Data and Key Metrics Changes - The company reported a net loss of $33.5 million or $0.58 per share for the first quarter of 2025, compared to a net loss of $31.4 million or $0.54 per share in the fourth quarter of the previous year [5][18] - As of March 31, 2025, the company had $52.5 million in cash and investments on hand [5][18] - The company has reduced its total debt by $10 million and lowered near-term repayment obligations from approximately $118 million to $17 million [6][19] Business Line Data and Key Metrics Changes - Research and development expenses in the first quarter were heavily focused on narsoplimab and zaltanibart [20] - OMIDRIA royalties for the first quarter totaled $6.7 million based on net sales of $22.3 million, a decrease from $10.1 million in royalties on net sales of $33.6 million in the previous quarter [22][23] Market Data and Key Metrics Changes - The market opportunity for narsoplimab is estimated at nearly $1 billion annually, with expectations for it to become a cornerstone asset for transplant experts [11] - The global market for paroxysmal nocturnal hemoglobinuria (PNH) is projected to grow about 11% annually to over $10 billion by 2032 [12] Company Strategy and Development Direction - The company is focused on the anticipated approval and launch of narsoplimab for the treatment of TATMA, with a target FDA action date of September 25 [8] - The company is also working on a marketing authorization application for narsoplimab in Europe, targeting completion later this quarter [9] - Development spending on other programs, including the long-acting MASP-two inhibitor OMS1029, remains limited as the company prioritizes core development initiatives [12][16] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining financial flexibility and managing costs while advancing key initiatives [7] - The company is actively pursuing partnerships for non-dilutive funding to support operations [6] - Management expressed confidence in the successful launch of narsoplimab, highlighting the compelling data and the unique market position of the product [36] Other Important Information - The company has suspended its expanded access program for narsoplimab to prioritize resources for the anticipated launch [9][10] - The company is committed to supporting patients currently treated under the EAP despite the program's discontinuation [10] Q&A Session Summary Question: Can you provide details on launch plans and patient access? - Management indicated they are well-prepared for the launch, focusing on key transplant centers and engaging with payers for product information exchanges [31][34] Question: Can you elaborate on the patients affected by TATMA and the associated costs? - Management explained that TATMA is a complication of stem cell transplants that can arise unpredictably, leading to significant healthcare costs due to the severity of the condition [42][44]