Financial Data and Key Metrics Changes - Fourth quarter sales reached $152.4 million, with adjusted EBITDA attributable to DMC at $10.4 million, both exceeding guidance [3][4] - Adjusted EBITDA margin was 7.8%, up from 4.6% in the third quarter but down from 13.4% in the prior year [10] - Adjusted net income attributable to DMC was $1.8 million, with adjusted EPS at $0.09 [12] Business Line Data and Key Metrics Changes - Arcadia's fourth quarter sales were $60.3 million, up 4% sequentially but down 11% year-over-year, primarily due to soft demand for luxury custom residential windows and doors [4][10] - DynaEnergetics reported fourth quarter sales of $63.7 million, down 9% sequentially due to seasonal slowdowns [4] - NobelClad achieved fourth quarter sales of $28.4 million, marking its second strongest performance in over ten years, despite a sequential decline in order backlog [7] Market Data and Key Metrics Changes - The energy products market is experiencing a seasonal slowdown, impacting DynaEnergetics' performance [4] - Arcadia is refocusing on its core commercial operations, which represent the majority of its sales and EBITDA [4][8] Company Strategy and Development Direction - The company is implementing a "back to basics" approach, focusing on rightsizing cost structures and enhancing commercial operations [4][15] - An agreement was reached to extend the maturity of the Arcadia put call arrangement until September 2026, providing flexibility to reduce debt and improve cash flow [8][14] - The company is prioritizing free cash flow generation and absolute EBITDA improvement in its incentive programs [14][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but highlighted significant progress in stabilizing the business [14] - The company is closely monitoring tariff impacts and their effects on demand, particularly in the U.S. market [12][36] - Management expressed confidence in the ability to maintain momentum in NobelClad despite a decrease in backlog [24] Other Important Information - The company ended the fourth quarter with approximately $14 million in cash and cash equivalents, and total debt of about $71 million [12] - The debt to adjusted EBITDA leverage ratio was 1.35, well below the covenant threshold of 3.0 [12] Q&A Session Summary Question: Supply chain sourcing initiatives and improvements - Management discussed the back to basics approach focusing on rightsizing the cost structure and enhancing commercial culture [18][19] Question: Transition to commercial efforts and LA rebuild - Management noted that 75% of the business is commercial, and rebuilding efforts in LA will provide opportunities for growth [20][21] Question: Confidence in NobelClad's momentum - Management expressed confidence in maintaining momentum despite a decrease in backlog, while acknowledging potential tariff impacts [23][24] Question: Performance in a flat U.S. pressure pumping business - Management indicated that margin improvements will come from self-help initiatives, with high single-digit margins expected until market conditions improve [28] Question: Mid-cycle EBITDA margin expectations - Management suggested mid-teens EBITDA margins for Arcadia and low double-digit margins for DynaEnergetics at mid-cycle [30][32] Question: Rightsizing at Arcadia - Management confirmed that the issues related to high-end retail were largely behind them, with significant downsizing already completed [43][44] Question: Working capital opportunities - Management highlighted a focus on improving working capital efficiency across all businesses, particularly in Arcadia [48]