PresentationRyan MacDonaldNeedham & Company, LLC, Research Division Good afternoon, everyone. My name is Ryan MacDonald. I lead Needham's EdTech research efforts here at the firm. Thank you all for joining us today for this virtual fireside chat between myself and Coursera's CEO, Greg Hart. We've got about 40 minutes to go through a wide variety of topics around the business and outlook and product strategy and all the good stuff. And so we'll be jumping into that. But if you do have questions for Greg, you ...

Core Insights - Winnebago Industries reported solid financial results for Q4 and full year Fiscal 2025, driven by a favorable product mix and targeted price increases, despite facing challenges in the operating environment [2][4][6] - The company achieved a net revenue of $777.3 million in Q4, marking a 7.8% increase from $720.9 million in Q4 Fiscal 2024 [6][11] - For the full year, net revenues totaled $2.8 billion, a decrease of 5.9% compared to $3.0 billion in Fiscal 2024, primarily due to a reduction in average selling price per unit [13][15] Financial Performance - Q4 gross profit was $99.2 million, with a gross margin of 12.8%, a slight decrease from 13.1% in Q4 Fiscal 2024 [7][8] - Net income for Q4 was $13.7 million, or $0.49 per diluted share, compared to a net loss of $29.1 million in the same quarter last year [11][12] - Adjusted EBITDA for Q4 increased by 33.1% year-over-year to $38.2 million [12] Operational Efficiency - Operating expenses decreased by 29.5% to $79.1 million in Q4, primarily due to prior year goodwill impairment and cost reduction initiatives [9][10] - The company reported a net cash flow from operations of $181.4 million in Q4, reflecting improved operational efficiency [26] Market Position and Share Expansion - Winnebago's brands, including Barletta and Grand Design RV, expanded their market share in key segments, particularly in the U.S. aluminum pontoon and motorhome markets [4][5] - The company showcased new products at the RV Open House, receiving positive feedback from dealers and customers [5] Balance Sheet Strength - Cash and cash equivalents at the end of Q4 totaled $174.0 million, a significant increase from $10.5 million at the end of Q3 [26] - The net leverage ratio improved to 3.1x at the end of Q4, down from 4.8x at the end of Q3 [26] Future Outlook - For Fiscal 2026, Winnebago anticipates consolidated net revenues in the range of $2.75 billion to $2.95 billion, with North American RV wholesale shipments expected between 315,000 to 345,000 units [28][32] - The company aims to strengthen margins and enhance operational efficiency while navigating the current competitive landscape [33]

Business Outlook - A survey of over 500 business leaders reveals a generally pessimistic view regarding the ability to thrive in New York State [1]

Core Insights - Microbix Biosystems Inc. reported disappointing financial results for Q3 and YTD 2025, with significant declines in revenue and net loss compared to the previous year [1][2][6] Financial Performance - Q3 revenue was $3.5 million, a 31% decrease from $5.1 million in Q3 2024, driven by a 44% drop in antigen sales and a 9% decline in QAPs sales [3][11] - Year-to-date (YTD) revenue was $14.8 million, down 22% from $19.1 million in YTD 2024, with antigen revenues up 11% but QAPs revenues down 25% [7][11] - Gross margin for Q3 was 41%, down from 54% in the previous year, primarily due to a less favorable product mix [4][11] - YTD gross margin was 56%, down from 63% in YTD 2024, affected by lower sales of higher-margin products [8][11] Operating Expenses - Operating expenses in Q3 increased by 22% compared to Q3 2024, influenced by lower investment income and the absence of grant income [5][11] - YTD operating expenses rose slightly due to increased investment in R&D and sales and marketing activities [8][11] Net Loss and Cash Flow - The company reported a net loss of $1.6 million for Q3, compared to a net income of $246,746 in Q3 2024 [6][11] - YTD net loss was $765,150, a significant decline from a net income of $3.1 million in YTD 2024 [9][11] - Cash used in operating activities was $1.9 million for Q3, compared to cash provided of $604,064 in Q3 2024 [6][11] Financial Position - As of June 30, 2025, the company had strong cash and equivalents of $12.1 million, with a current ratio of 9.73 and a debt to equity ratio of 0.30, both improved from the previous year [10][11] Corporate Outlook - Management remains cautious about the outlook for the remainder of fiscal 2025, particularly due to reduced sales into China [2][12] - The company aims to drive sales growth across all business lines while improving gross margins and bottom-line results [12]

Financial Data and Key Metrics Changes - The company's consolidated revenue increased by over 2% while adjusted EBITDA declined by 9% from $165.8 million to $151.4 million [9] - Earnings per common share from continuing operations increased by 33% to $0.44 compared to $0.33 in the same quarter of the prior year [9] - The company ended the quarter with $1.8 billion of debt outstanding and $53.2 million of cash on the balance sheet [15] Business Line Data and Key Metrics Changes - The inpatient rehab division saw a revenue increase of 16%, adjusted EBITDA increase of 15%, and a 6% increase in average daily census compared to the first quarter of last year [9] - The outpatient division faced challenges due to severe weather events and a 3% reduction in Medicare reimbursement, but had a strong finish to the quarter [4][11] - The critical illness recovery hospital division experienced a revenue decrease of 3% driven by a 2% decline in rate per patient day and a 1% decline in patient days [12] Market Data and Key Metrics Changes - The outpatient division's net revenue per visit increased from $99 to $102, while total visits declined by 1% due to one less workday [11] - The critical illness recovery hospitals' occupancy rate increased from 71% to 73%, but adjusted EBITDA declined by 25% from the prior year [13] Company Strategy and Development Direction - The company plans to open several new rehab hospitals and units, including a 45-bed rehab hospital in Temple, Texas, and a 63-bed rehab hospital in Ozark, Missouri, among others [7][8] - The outpatient division added 10 de novo clinics while strategically closing or consolidating 13 locations to optimize resources [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outpatient division's outlook despite recent challenges, focusing on improving patient access and investing in technology [4] - The company is adjusting its business outlook for 2025, expecting revenue in the range of $5.3 billion to $5.5 billion and adjusted EBITDA between $510 million and $530 million [19] Other Important Information - The company repurchased almost 650,000 shares at an average price of $17.52, totaling $11.4 million [14] - A cash dividend of $6.625 per share was declared, payable on May 29, 2025 [14] Q&A Session Summary Question: How should occupancy be thought about for the rest of the year with new capacity coming online? - Management expects occupancy to stay around 85% plus even with new business coming online [21] Question: Was the miss in LTACH related to internal expectations or consensus? - The impact from high cost outlier was higher than anticipated, with a 100% increase compared to the previous year [22][23] Question: Any updates on mitigation strategies regarding high cost outlier and transmittal rule? - Management is in ongoing conversations with regulatory bodies to address these issues and mitigate impacts [34] Question: What do startup costs look like this year versus last year? - Startup losses are relatively the same from last year to this year [38] Question: Any initiatives in outpatient rehab to improve margins? - The company is implementing technology changes and seeing benefits, with expected increases in commercial rates [42][44] Question: Plans to accelerate growth in rehab to diversify away from LTACH? - There are plans to accelerate growth in rehab, with several projects already signed and under construction [49]

Financial Data and Key Metrics Changes - Consolidated sales for Q3 FY 2023 reached ¥3,747.5 billion, a significant increase of 22% year-on-year, marking a record high for the quarter [5] - Consolidated operating income increased by ¥41.8 billion year-on-year to ¥463.3 billion, the second highest quarterly level [5] - Net income rose by ¥42.4 billion year-on-year to ¥363.9 billion, while adjusted EBITDA increased by ¥75.5 billion to ¥605 billion [5][6] - The nine-month cumulative consolidated operating cash flow, excluding the Financial Services segment, was ¥618.5 billion [6] Business Segment Data and Key Metrics Changes Game & Network Services (G&NS) - Q3 sales increased by 16% year-on-year to ¥1,444.4 billion, driven by higher third-party software sales and favorable foreign exchange rates [8] - Operating income decreased by ¥30.1 billion year-on-year to ¥86.1 billion due to lower profitability of PlayStation 5 hardware [10] - PS5 hardware unit sales reached 8.2 million units in the quarter, falling short of the annual target of 25 million units but achieving record quarterly sales [12] Music Segment - Q3 sales increased by 16% year-on-year to ¥422.1 billion, with operating income rising by ¥13.1 billion to ¥76.1 billion [20] - Streaming revenue grew by 12% for Recorded Music and 17% for Music Publishing [21] Pictures Segment - Q3 sales increased by 10% year-on-year to ¥366.3 billion, with operating income rising significantly by ¥16.2 billion to ¥41.6 billion [26] - The impact of Hollywood strikes is expected to peak next fiscal year, affecting profits [29] Entertainment, Technology & Services Segment - Q3 sales decreased by 2% year-on-year to ¥735.7 billion, with operating income down by ¥3.9 billion to ¥77.2 billion [32] Imaging & Sensing Solutions Segment - Q3 sales increased by 21% year-on-year to ¥505.2 billion, with operating income rising by ¥14.9 billion to ¥99.7 billion, both record highs for the segment [37] Financial Services Segment - Q3 revenue increased by ¥287.3 billion year-on-year to ¥311.7 billion, with operating income rising by ¥30.2 billion to ¥77.3 billion [44] Market Data and Key Metrics Changes - Monthly active users (MAU) for gaming reached a record high of 120 million accounts, with total gameplay time increasing by 13% year-on-year [13] - The cumulative sales of Marvel's Spider-Man 2 exceeded 10 million copies, contributing significantly to profits [14] Company Strategy and Development Direction - The company aims to optimize sales of PS5 hardware while balancing profitability, anticipating a gradual decline in unit sales from the next fiscal year [16] - Focus on producing high-quality first-party software and developing live service games, with no major franchise titles planned for next fiscal year [18] - The company plans to expand opportunities in the music business through strategic acquisitions and collaborations [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving stable revenue growth in the Music segment due to the expansion of the streaming market [22] - The company expects operating income for the next fiscal year to slightly increase in the G&NS segment, despite anticipated declines in first-party software profits [48] - The impact of Hollywood strikes on profits is expected to peak next fiscal year, but the company aims for operating income to exceed the current fiscal year [49] Other Important Information - The company is preparing for a spinoff and listing of shares for Sony Financial Group, Inc. in October 2025 [51] Q&A Session Summary Question: Strategic investment and CapEx for the current mid-range plan - The cumulative CapEx for FY '21 to FY '23 is expected to be about ¥1.9 trillion, with M&A and strategic investments at ¥1.8 trillion [56] Question: Spin-off purpose and relationship with business improvement - The spin-off aims to streamline capital allocation and allow both companies to grow independently [62] Question: Market trends for cameras in different regions - Sales in North America and Europe are performing relatively well, with no significant inventory issues reported [79] Question: Expectations for MAU growth and profitability - MAU growth is attributed to seasonality and successful free-to-play titles, with a profit shift of approximately ¥30 billion expected to the fourth quarter [94] Question: Future profitability and margin improvement strategies - The company aims to balance hardware pricing and profitability while focusing on strong first-party content to enhance margins [109]