Margin Schedule Update - Kraken Pro upgraded margin schedule and maximum leverage for 21 perpetual futures contracts [1] - Higher limits and more leverage are available on over 20 perpetual contracts [1] Leverage Increase - Several cryptocurrencies upgraded to Class A, offering 50x leverage: SUI, ADA, AVAX, PEPE, LTC, LINK, WIF, ARB, DOT [1] - Several cryptocurrencies upgraded to Class B, offering 50x leverage: FART, ENA, FLOKI, PENGU, SEI, OP, FET, HYPE, VIRTUAL, PUMP, SPX, OM [1] Geographic Restrictions - Geographic restrictions apply to the upgraded margin schedule and leverage [1]

Financial Performance - London Stock Exchange Group's profit beat estimates [1] - London Stock Exchange Group unveils a £1 billion buyback [1] - London Stock Exchange Group raises its margin outlook [1]

Investment Advice - The industry advises against using margin to buy stocks [1]

Financial Data and Key Metrics Changes - For Q1 2025, normalized FFO per share was $0.35 and normalized AFFO per share was $0.37, compared to $0.34 and $0.35 in Q1 2024, representing a year-over-year increase of 79% for both metrics [14][15] - Cash rental income from the triple net portfolio totaled $90 million, up from $89 million in Q1 2024, despite the disposal of $115 million of real estate from the portfolio last year [15] - Cash NOI from the managed senior housing portfolio totaled $24.1 million, compared to $19.1 million in Q1 2024, driven by strong occupancy and margin gains [15][12] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached new highs at 2.19 and 1.41, respectively, with behavioral health coverage at 3.77 [5] - Skilled occupancy increased by 80 basis points sequentially, while triple net senior housing occupancy rose by 50 basis points [6] - Revenue for the same store managed senior housing portfolio grew 6.3% year-over-year, with occupancy at 85.4% compared to 82.6% in Q1 2024 [11] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [11] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [11] - The company noted a robust deal pipeline, with over $200 million in awarded deals, which is more than the total for all of 2024 [7][8] Company Strategy and Development Direction - The company is focusing on internal and external growth opportunities in senior housing, with little new supply expected in the coming years [10] - Management emphasized a commitment to maintaining a balanced portfolio between senior housing and skilled nursing, avoiding large portfolio acquisitions to keep operations predictable [78] - The company is actively using its ATM program to raise equity for funding growth, with a focus on accretive capital [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [86] - The company is cautious about the skilled nursing facility (SNF) market due to challenges in structuring leases around underperforming assets [66][68] - Management believes that the current operating environment will allow for improved coverage and revenue growth, despite potential headwinds from provider taxes [85] Other Important Information - The Board of Directors declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [19] - The company has ample liquidity of over $1 billion, consisting of unrestricted cash and available borrowings [18] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, though regulatory hurdles have delayed the process [21] Question: Trajectory of RevPOR and expense growth - Management expects occupancy to rise, which will allow for increased pricing power, while expenses are anticipated to remain stable [22][23] Question: Guidance on acquisitions and SHOP performance - Management reiterated that acquisitions are not included in current guidance until closed, and reaffirmed expectations for low to mid-teens cash NOI growth [27][28] Question: Insights on transaction market and deal flow - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [31][33] Question: Details on $200 million of awarded deals - All awarded deals are domestic, primarily in the Eastern U.S., with growth potential embedded in the assets [40][41] Question: Changes in underwriting criteria - Management stated that underwriting criteria remain unchanged, focusing on cost of capital and accretive deals [60] Question: Concerns regarding SNF acquisitions - Management highlighted challenges in acquiring SNFs due to financial instability and the difficulty in structuring leases [66][68] Question: Expectations for SHOP occupancy cadence - Management anticipates an increase in occupancy as seasonal factors improve, particularly in Canadian assets [70] Question: Interest in large portfolio acquisitions - Management confirmed a commitment to smaller, more manageable deals to maintain operational simplicity and predictability [78] Question: Medicare reimbursement impacts - Management expressed confidence that Medicare will not be significantly impacted by current government budget discussions [97]

Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 29% to $1.63, with adjusted EBITDA rising by 31% to $80 million [8][10] - Revenue grew by 7% on a pro forma basis, with gross profit margins expanding over 400 basis points to reach 22% [9][10] - Operating cash flow was strong at $85 million, and backlog totaled $2.1 billion, a 17% year-over-year increase [10][11] Business Line Data and Key Metrics Changes - E Infrastructure Solutions segment revenue grew by over 18%, driven primarily by a 60% increase in the data center market [9][14] - Transportation Solutions revenue increased by 9%, with adjusted operating profit growing by 60% due to strong market demand [14][15] - Building Solutions segment revenue declined by 14%, impacted by affordability challenges in the housing market [15][27] Market Data and Key Metrics Changes - E Infrastructure Solutions backlog reached $1.2 billion, up 27% year-over-year, with significant growth in data center projects [11][12] - Transportation Solutions backlog was $861 million, an 11% year-over-year increase [15] - Overall backlog totaled $2.23 billion, a 21% increase from year-end 2024 [16] Company Strategy and Development Direction - The company remains focused on high-return opportunities and plans to enhance long-term value through strategic acquisitions, particularly in e infrastructure [10][28] - The acquisition of Drake Concrete for $25 million is expected to contribute $55 million in revenue and $6.5 million in EBITDA in 2025 [10] - The company is optimistic about future growth in e infrastructure, anticipating mid to high teens revenue growth and adjusted operating profit margins in the mid-20% range [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong backlog and future phase opportunities, despite uncertainties in trade policies and the economy [10][22] - The company is optimistic about the ongoing strength in data center demand and anticipates continued growth in core markets [22][24] - Management noted that while the residential market is currently soft, there is significant pent-up demand that could drive future growth [52][53] Other Important Information - The company expects full-year 2025 revenue guidance to range from $2.05 billion to $2.15 billion, with adjusted diluted EPS guidance of $8.40 to $8.90 [21] - The effective income tax rate for the first quarter was 26.1%, with expectations for the full year to remain around 26% [19] Q&A Session Summary Question: Insights on the 35% of backlog not related to data centers - Management feels positive about the backlog, with steady manufacturing and increasing e-commerce activity contributing to growth [31][32] Question: Exposure to tariffs and cost perspective - Management indicated minimal exposure to tariffs due to fixed pricing in contracts and indexing mechanisms in place [34][35] Question: Drivers of margin performance in Transportation Solutions - Margin improvements are primarily due to a shift towards higher-margin services rather than the low bid strategy [46][47] Question: Comfort in bidding for new projects - Management remains optimistic about bid activity and is focusing on long-term project visibility [50][52] Question: Future infrastructure bill expectations - Management noted positive bipartisan activity in Congress regarding the next infrastructure bill, indicating a proactive approach to future funding [68][70] Question: Capacity constraints related to biopharma projects - Management expressed confidence in handling new projects and indicated readiness to expand capacity if necessary [74][76]

Financial Data and Key Metrics Changes - Operating net income declined by $1.1 million in the first quarter due to seasonal declines in noninterest income lines, particularly in SBSL [18] - Pre-provision net revenue increased by almost $1.5 million on an operating basis compared to the first quarter of 2024, indicating improvement in core earning fundamentals [19] - Net interest income increased by approximately $480,000 in the first quarter, driven by loan growth and a reduction in the cost of funds [19] - Cost of funds for the quarter was 2.07%, a decline of 12 basis points from the previous quarter and 25 basis points from the third quarter of 2024 [20] - Margin increased by 9 basis points to 2.93%, up from 2.84% in the prior quarter [20] Business Line Data and Key Metrics Changes - First quarter annualized loan growth was 17%, with expectations for future quarters to be in the range of 8% to 12% [7][8] - Operating non-interest income decreased by about $1.7 million, primarily due to decreased activity in the SBSL division [21] - Revenues in the mortgage division were slightly higher, and expenses were slightly lower, resulting in profitability for the division [22] - Non-interest expenses decreased around $1 million, attributed to lower variable expenses and advertising costs [23] Market Data and Key Metrics Changes - Total deposits increased by $54.6 million in the quarter, with a focus on a deposit-first culture [29] - The company is experiencing cooling deposit competition, which is expected to help keep cost pressures minimal [30] - Cash to assets was a little over 7% at the end of the quarter, providing room for continued funding of loan growth [31] Company Strategy and Development Direction - The company is excited about the acquisition of Ellerbee Agency, which is expected to be EPS accretive and enhance the Insurance division [10][11] - A credit card program for both consumer and commercial credit cards was launched, aimed at generating significant noninterest income over time [12] - The company is maintaining a proactive approach to monitor market volatility and its impact on customers, especially in sectors exposed to trade dynamics [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth pipeline for the rest of the year, despite seasonal fluctuations [9][28] - There are no indicators of large-scale disruptions affecting credit quality, with isolated issues in agricultural production and trucking loans [26] - Management remains optimistic about the M&A environment in banking, with ongoing discussions with potential targets [15] Other Important Information - The effective tax rate for the quarter was a little over 20%, consistent with previous guidance [24] - The company repurchased 38,000 shares at an average price of $16.45 as part of its stock repurchase program [32] - A quarterly cash dividend of $0.115 per share was declared [33] Q&A Session Summary Question: What are the trends and expectations for SBSL, loan growth, and asset quality as well as pricing for the rest of the year? - Management is vigilant about the impact of tariffs and trade policy on customers, noting that many have become more aware of their supply chains post-COVID [36][39] - There is good activity in SBSL, with expectations to return to previous levels of production [43][44] Question: What net interest margin impacts do you expect from a 25 basis point rate cut? - Management feels well-positioned for potential rate cuts, expecting improved margins from repricing of assets and reduced costs [45][46] - The loan portfolio yield is around 6%, with new weighted average rates in the mid- to high-7s, indicating favorable conditions for margin improvement [47][50]