Financial Data and Key Metrics Changes - Operating revenue for Q2 2025 was $115.5 million, up 21.4% from the previous quarter and 8.4% higher than Q2 2024 [14] - Units delivered reached 631,426, representing a 28% increase compared to the previous quarter and a 24% increase from Q2 2024 [14] - Adjusted operating income for Q2 was greater than the prior three quarters combined, indicating operational improvements [8] Business Line Data and Key Metrics Changes - The OEM contract business generated approximately 93% of total transportation revenue in the quarter, up from 91% in the previous quarter [15] - Revenue from dedicated fleet service was $3.8 million, down from $4.3 million in Q1 and $7.3 million in Q2 2024 [16] - Revenue from spot opportunities comprised only 2.7% of total revenue, continuing a trend from the last four quarters [17] Market Data and Key Metrics Changes - The market strength experienced at the end of Q1 continued into April, with revenue and unit volumes up 1325% year over year [7] - The auto SAAR slowed to an average of around 15,500,000 units in May and June, but July saw a stronger performance with a SAAR of 16,400,000 [8][10] - For the combined May and June months, volume finished up 24% year over year, while revenue was up nearly 14% compared to the same period in 2024 [7] Company Strategy and Development Direction - The company remains focused on long-term objectives, including increasing market share and effective integration of merged operating companies [10] - The integration of Brothers Auto Transport has gone smoothly, with all operating companies now using a common accounting platform [12] - The company aims to control costs in a weaker market and is advancing targeted cost savings initiatives [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic impacts of tariffs and policy changes, viewing the resolution of policy uncertainty as a positive for the near term [10] - The company expects a sequential revenue decline of 25% in August compared to the previous quarter, but anticipates maintaining adjusted operating ratios [19] - For the full year, the company expects top-line growth year over year between 5% and 10% [19] Other Important Information - The company had approximately $13.6 million in cash and equivalents at the end of Q2, up from $10.9 million at the end of the previous quarter [17] - Aggregate debt balances at quarter end were approximately $90.2 million, with net debt of $76.6 million [18] - Total common shares outstanding increased to 27.7 million, up from 27.1 million at the end of the previous quarter [19] Q&A Session Summary Question: Cost Control Measures - Management indicated that there are incremental opportunities for cost reduction focused on procurement, facility consolidation, and personnel synergies [22][23] Question: Market Share Opportunities - Management noted that there is meaningful opportunity for margin improvements through organic growth and cost reduction initiatives [26] Question: Price and Yield Concerns - Management clarified that the sequential deterioration in yields per VIN was primarily due to customer mix rather than core rate weakness [34][35] Question: Bid Market Dynamics - Management confirmed that there is potential for market share gains as OEMs are looking to optimize their transportation supply chains [38][39] Question: Free Cash Flow Projections - Management stated that expected free cash flow from operations will be between $30 million and $35 million after CapEx, representing a 20% cash return on the current market cap [18][41] Question: Additional M&A Opportunities - Management is continuously exploring M&A opportunities but indicated that there are no imminent deals [52][54]

Financial Data and Key Metrics Changes - The company reported siding revenue growth of 11% year-over-year, resulting in $755 million in sales and $142 million in EBITDA for the quarter [6][10][15] - Adjusted earnings per share for the quarter were $0.99, despite a negative impact of $102 million from lower OSB prices [6][10] - Operating cash flow was $162 million, supported by $142 million of EBITDA and seasonal reductions in working capital [15] Business Segment Data and Key Metrics Changes - The Siding segment achieved record volume, revenue, and EBITDA, with an EBITDA margin of 27% [6][12] - OSB segment EBITDA was $19 million, outperforming guidance due to exceptional cost control measures [14][15] - Siding OEE reached 78%, while OSB OEE hit 79%, indicating improved operational efficiency [6][10] Market Data and Key Metrics Changes - U.S. housing starts remain below long-term average demand levels, contributing to falling commodity OSB prices [5][14] - The demand environment for OSB is described as unusually difficult, with prices at multiyear lows [17][18] - The company anticipates a flat volume for Siding in Q3 compared to the previous year, with a slight price increase expected [17] Company Strategy and Development Direction - The company aims to capture market share through its SmartSide product, which is expected to outperform other siding substrates [7][19] - Continued investment in sales and marketing is planned to drive growth, particularly in the Siding segment [76][78] - The company is focused on cost containment and operational efficiency in the OSB segment to navigate the current market challenges [14][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Siding segment despite current market challenges [7][19] - The company is prepared to manage capacity and costs in response to fluctuating demand and pricing in the OSB market [14][18] - Management noted that while the demand environment is weakening, the Siding segment's growth driven by material conversion and product innovation remains strong [19] Other Important Information - The company was recognized as the safest company in 2024 by APA, marking the third consecutive year of this honor [8][9] - The company has $1.1 billion in liquidity, including $333 million in cash, positioning it well for future investments [15] Q&A Session Summary Question: Insights on Siding margin decrement in Q3 - Management indicated that Q3 might not reach the peak of Q2, suggesting a balanced approach to revenue and a cautious outlook on EBITDA [24][26] Question: Early trends in Q3 and CapEx implications - Management noted a strong carryover from Q1 into Q2 but observed some weakening in the order file as the quarter progressed [30] Question: Cost control measures in OSB - Management highlighted outstanding operational efficiency and aggressive cost containment as key drivers for better-than-expected EBITDA in OSB [38][39] Question: Impact of shrinking home sizes on Siding - Management acknowledged that while shrinking home sizes present a slight headwind, the overall market share opportunities in repair and remodel will outweigh this factor [40][41] Question: Siding guidance for the back half of the year - Management expects healthy volume growth in Q4, with a seasonal pattern indicating a shift between Q2 and Q3 [44] Question: OSB operating rates and production strategy - Management reported mid-eighty percent operating rates for OSB and emphasized matching production with demand to avoid inventory buildup [45][47] Question: Siding sell-through and channel inventories - Management expressed confidence in good sell-through in Q2 and reasonable channel inventories, supporting growth expectations for the fourth quarter [51][52] Question: Competitive dynamics in new residential market - Management noted opportunities for market share gains among smaller and medium-sized builders, despite exclusivity agreements with larger peers [100][102]

Financial Data and Key Metrics Changes - In Q2 2025, Atlas generated $70.5 million of adjusted EBITDA on $288.7 million of sales, resulting in a 24% adjusted EBITDA margin, which was at the low end of the guidance range of $70 million to $80 million [6][23] - The company experienced a slight sequential decline in volumes due to a slowdown in Permian Basin completion activity, primarily driven by customer pauses and delays rather than outright crew reductions [6][7] - Operating cash flow improved significantly to $88.6 million, driven by better working capital intensity and customer collections [27] Business Line Data and Key Metrics Changes - Proppant sales totaled $126.3 million, logistics contributed $146.4 million, and power rentals added $16 million in Q2 2025 [25] - Proppant volumes were 5.4 million tons, down approximately 4% from Q1 levels, with an average revenue per ton of $23.29, boosted by shortfall revenue [25] - The average sales price is expected to decline to approximately $20.5 in Q3 2025, reflecting ongoing market challenges [26] Market Data and Key Metrics Changes - The Permian frac crew count has declined from approximately 95 crews in Q1 2025 to around 80, the lowest since 2017, excluding the COVID downturn [7][8] - Atlas has expanded its market share from 15% at the time of its IPO to approximately 35% of all sand sold today, bolstered by the Hi Crush acquisition [8][9] - Spot prices for West Texas sand remain in the mid to high teens, insufficient for continued reinvestment by many in the industry [10] Company Strategy and Development Direction - Atlas aims to be the primary provider of sand and logistics in the Permian Basin, focusing on integration and operational efficiency to outperform competitors [19][20] - The company is strategically positioned to capitalize on pricing recovery when completion activity rebounds, with the Dune Express fully operational [10][11] - The acquisition of Mosier Energy Systems and PropFlo is part of a strategy to enhance market position and earnings potential through innovative solutions [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges in the West Texas oilfield services market but believes these conditions will create significant opportunities for Atlas [14][31] - The company expects third-quarter volumes to increase sequentially, driven by recent customer wins and new Dune Express trials, despite a forecasted decline in average proppant sales price [24] - Management is optimistic about the growth potential of the Power business, with a focus on longer-term contracts that stabilize cash flows [13][15] Other Important Information - The Dune Express has significantly reduced public road traffic and admissions in the area, enhancing operational efficiencies [11] - The company is maintaining its dividend of $0.25 per share, representing a 7.9% yield as of the last close [27] Q&A Session Summary Question: What is driving the share gains in the Permian market? - Management attributes share gains to a strong reputation as a reliable sand provider, operational efficiencies, and strategic investments in logistics and technology [35][39] Question: How does the company prioritize capital allocation in a soft market? - The company focuses on maintaining a low-cost structure while continuing to invest in logistics and technology, balancing capital returns to shareholders with necessary investments [45][48] Question: Can you elaborate on the opportunities in the power business outside of oil and gas? - Management highlights the potential for growth in commercial and industrial sectors, with a focus on long-term contracts that provide stable cash flows [53][56] Question: What evidence is there of supply contraction in the sand market? - Management confirms that some major mines have shut down, indicating a tangible reduction in supply capacity [60][63] Question: How is the operator mindset changing in the current market? - Operators are generally more cautious but are beginning to stabilize their strategies as they approach budget season [91]

Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $1,278 million, reflecting a year-over-year growth of 3% [14] - Excluding the impact of the Envista recall, total company revenue grew by 6% in the quarter [15] - Adjusted gross margin for Q2 was 60.6%, representing a 130 basis points decrease year-over-year [26] - Adjusted EBITDA for Q2, excluding acquired IPR&D, was $192 million, absorbing a one-time impact of $19 million from the investor recall [27] Business Line Data and Key Metrics Changes - Vision Care segment revenue for Q2 was $753 million, increasing by 6%, driven by growth in both consumer and contact lenses [16] - The consumer business grew by 6% in Q2, with Lumify growing by 27% and the dry eye portfolio delivering $115 million in revenue, representing 19% growth [18][19] - Surgical segment revenue was $216 million, an increase of 1%, but would have been 15% growth excluding the recall impact [21] - Pharma segment revenue was $309 million in Q2, representing a decline of 1%, with U.S. branded Rx business up 8% [23] Market Data and Key Metrics Changes - U.S. contact lens revenue grew by 11%, EMEA by 11%, LATAM by 25%, Japan by 3%, and China by 7% [20] - The dry eye portfolio saw a 16% constant currency revenue growth, with Blink eye drops growing by 13% and Artilac by 39% [34] Company Strategy and Development Direction - The company is focused on innovation and has a robust pipeline aimed at transforming the company and accelerating sales growth [6][9] - The strategic roadmap emphasizes operational excellence and a commitment to recapturing market share post-recall [10][11] - The company plans to showcase promising candidates at the upcoming Investor Day, indicating a focus on category disruption [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to overcome challenges and transform the company, highlighting the resilience shown in Q2 [44][45] - The company anticipates steady improvement in the U.S. generics business in the second half of the year [25] - Management expects the fourth quarter to be the strongest due to seasonality and the ramp-up of Envista [29] Other Important Information - The company raised its full-year revenue guidance to a range of $5,050 million to $5,150 million, reflecting constant currency growth of approximately 5% to 7% [28] - Adjusted EBITDA guidance was raised to a range of $860 million to $910 million [29] - The company successfully refinanced $3,100 million of its debt, extending maturities to 2031 [28] Q&A Session Summary Question: Highlights informing the decision to recommit to the company - Management expressed deep confidence in the team, products, and R&D pipeline, emphasizing the opportunity to transform the company [44][46] Question: Quantifying tariff impact and strategy in pharma - Management noted that the tariff impact is now estimated at 40 basis points for 2025, which is absorbed in the guidance [58][59] - The focus in pharma is on driving prescription and demand, with expectations for profitability to improve in 2026 and beyond [50][51] Question: Update on the contact lens market - Management sees the contact lens market as healthy, with strong performance from both new and legacy products [75][76] Question: Pipeline updates and approval timelines - The company expects to submit the ILIUS file this year, with approval anticipated in early second half of next year [93] - The launch of Envista Beyond may experience a couple of months delay due to recruitment issues [97]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were reported at $3.6 billion, with diluted earnings per share at $0.75, an increase of $0.05 compared to Q2 2024 [25] - Adjusted diluted earnings per share decreased by $0.11 to $0.87, primarily due to lower operating results [25] - Free cash flow for the quarter was $243 million, despite a nearly $35 million headwind from tariffs, bringing year-to-date cash flows to $186 million [25][26] Business Line Data and Key Metrics Changes - North America's organic revenue fell by 2.2% per day, which is an improvement compared to the last five quarters, with aftermarket collision parts showing slight growth [11] - Europe's organic revenue decreased by 4.9%, primarily due to difficult economic conditions and increased competition [12] - Specialty's organic revenue was largely flat year over year, marking the best quarterly performance since Q4 2021 [18] - Self-service's organic revenue was soft due to lower part volumes but maintained a 10% EBITDA margin [18] Market Data and Key Metrics Changes - North America experienced a 100 basis point decline in gross margins, with segment EBITDA margin at 15.8%, a decrease of 150 basis points year over year [27] - Europe reported a segment EBITDA margin of 9.4%, a decrease of 120 basis points from last year [27] - The overall market for repairable claims is expected to remain weak, with auto insurance prices projected to rise by an average of 7.5% this year [32] Company Strategy and Development Direction - The company is focused on a multiyear transformation strategy to simplify its portfolio and operations, enhance margins, and pursue disciplined capital allocation [6][37] - Immediate actions include additional cost-cutting measures, primarily in Europe, aiming to cut another $75 million in costs [7] - The company is also reviewing business units for potential asset sales to accelerate its simplification strategy [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges and operational obstacles but emphasized a commitment to executing their strategic plan [5][9] - The outlook for North America has been revised downward due to delayed recovery in repairable claims and ongoing tariff disruptions [31] - In Europe, persistent economic softness and geopolitical unrest are expected to continue impacting performance [32] Other Important Information - The company has made significant leadership changes, refreshing over 25% of VP-level roles to drive transformation [20] - A new executive position focused on global talent development has been created to support overall business growth [19] Q&A Session Summary Question: Discussion on increased competition in North America and used car pricing - Management noted that while used car pricing showed some improvement earlier in the quarter, it has not grown fast enough to significantly impact repairable claims [42][44] Question: Competitive dynamics in Europe - Management indicated that while competition remains strong, they are maintaining market share and have renegotiated several national account agreements [48] Question: Impact of tariffs on financials - Management confirmed that the $35 million headwind from tariffs was related to inventory at the end of Q2, with minimal impact on the P&L [110] Question: Production flexibility of suppliers - Management stated that many suppliers are considering relocating production to mitigate tariff impacts, but no major movements have been observed yet [94] Question: Breakdown of collision versus non-collision organic revenue growth - Management highlighted that aftermarket parts volume was up, while paint and some mechanicals were down due to market conditions [99]

Valvoline (VVV) 2025 Conference Summary Company Overview - Valvoline is a leading automotive services platform offering oil changes and preventative maintenance services with approximately 2,100 locations, over half of which are franchised [1][2] Core Industry Insights - The automotive services industry is resilient with positive tailwinds such as increasing miles driven, vehicle complexity, and vehicle age, which are expected to drive growth in ticket and transaction volumes [4][5] - Valvoline's market penetration is low, with only 20% to 25% of oil changes occurring in their channel, indicating significant growth potential [5] Company Strengths - Valvoline has a strong brand presence, nearly 60 years old, which denotes quality and customer loyalty [5] - The company boasts a customer experience rating of 4.7 out of 5 across its stores, serving over a million customers in the past year [6] - Valvoline has developed robust data analytics capabilities for customer and real estate, enhancing marketing efficiency and location selection [6][7] Market Share and Growth Potential - Valvoline currently holds a 5% market share, with some mature markets approaching 20%, indicating substantial upside potential [7][13] - The company aims to grow its network significantly, targeting 3,500+ units by 2027, with a focus on accelerating franchise growth from 50 to 150 new units annually [14][15] Financial Metrics and Investment Returns - New units typically mature in 3 to 5 years, with a projected 30% cash-on-cash return for franchise partners [17][18] - The company is focused on refranchising to enhance shareholder value, leveraging existing franchise partners and developing new ones [19][20] Recent Acquisition - Valvoline announced the acquisition of Breeze, adding 200 locations, which is expected to create synergistic value and enhance market presence [28][30] - The acquisition is under review by the FTC, which is not uncommon for the industry, and Valvoline is optimistic about the outcome [31][32] Same Store Sales and Growth Drivers - Same store sales have compounded close to 10% over the last decade, with a guidance of 5% to 7% for the current year due to more normalized inflationary levels [34][36] - Key drivers for growth include transaction growth from maturing stores, fleet sales, and non-oil change revenue services [38][39] Consumer Behavior Insights - Despite economic uncertainty, consumers are maintaining their vehicles longer and are not trading down in service quality [45][46] - Valvoline is adapting to evolving vehicle maintenance needs, including the rise of electric vehicles, by ensuring convenience and trust in service delivery [58][60] Margin and Cost Management - Valvoline is investing in technology to drive margin expansion, with a long-term goal of increasing margins from 26% to 29% [47][48] - The company anticipates returning to a growth trajectory where profit outpaces sales as it laps previous investments and refranchising impacts [52][53] Conclusion - Valvoline is well-positioned for growth with a strong brand, significant market opportunities, and a focus on enhancing customer experience and operational efficiency. The company is optimistic about its future prospects, driven by strategic growth initiatives and market dynamics.

Financial Data and Key Metrics Changes - Revenues increased by 15% year over year to a record $222.3 million in Q1 2025, driven by strong organic growth in both residential and multifamily commercial businesses [6][20] - Adjusted EBITDA for Q1 2025 was $70.2 million, representing a margin of 31.6%, compared to $51 million and a margin of 26.5% in the prior year [21] - Gross profit was $97.5 million with a gross margin of 43.9%, up from $74.7 million and a margin of 38.8% in the prior year [21] Business Line Data and Key Metrics Changes - Single-family residential revenues grew by 21.6% year over year to $88.9 million, reflecting strength in Florida operations and geographic expansion [6][13] - Multifamily and commercial revenues increased by 11.6% year over year to $133.4 million, supported by a growing backlog [7][15] - The company ended the quarter with a record backlog of $1.14 billion, approximately 2.2 times the last twelve months' multifamily and commercial revenues [15][16] Market Data and Key Metrics Changes - The company reported strong order traction and market share growth across various U.S. regions, including Florida, Texas, and California [11][64] - Residential orders were up 17% year over year, indicating continued demand in the market [65] Company Strategy and Development Direction - The acquisition of Continental Glass Systems enhances production capabilities in the U.S. and diversifies the company's manufacturing footprint [10][32] - The company plans to develop a fully automated and vertically integrated operation in the U.S. over the next five to seven years [25][61] - Strategic pricing adjustments and supply chain modifications are being implemented to mitigate tariff impacts [22][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, despite macroeconomic uncertainties, citing strong performance and a robust project backlog [11][29] - The company anticipates that strategic actions will offset the projected $25 million tariff impact for the year [26][30] - Management highlighted the importance of geographic diversification in mitigating regional market risks [17] Other Important Information - The company achieved record cash of $157.3 million at the end of Q1 2025, reflecting strong cash generation and working capital management [11][27] - Total liquidity was approximately $330 million, providing financial flexibility for growth initiatives and shareholder returns [28] Q&A Session Summary Question: Insights on the architectural glass industry and imports - Management noted that U.S. manufacturers import a significant portion of raw materials, presenting opportunities for growth [36][37] Question: Breakdown of residential growth and vinyl expectations - The legacy Florida business grew by approximately 15%, with other regions starting to contribute more significantly [41] Question: Details on the Continental acquisition and its benefits - The acquisition provides manufacturing capabilities in the U.S. and access to the growing replacement market for condominiums [45][46] Question: Plans for U.S. manufacturing development - The company plans to establish a foundry and eventually a fully integrated facility in the U.S. to enhance production efficiency [60][61] Question: Trends in commercial orders and geographic diversification - Management reported booming business with increasing orders from various regions, indicating a diversified order pipeline [64][68]

Financial Data and Key Metrics Changes - Revenues increased by 15% year over year to a record $222.3 million in Q1 2025, driven by strong organic growth in both residential and multifamily commercial businesses [6][20] - Adjusted EBITDA for Q1 2025 was $70.2 million, representing an adjusted EBITDA margin of 31.6%, compared to $51 million or 26.5% margin in the prior year [21] - Gross profit was $97.5 million with a gross margin of 43.9%, up from $74.7 million and 38.8% gross margin in the prior year [21] Business Line Data and Key Metrics Changes - Single-family residential revenues grew 21.6% year over year to $88.9 million, reflecting strength in Florida operations and geographic expansion [6][13] - Multifamily and commercial revenues increased by 11.6% year over year to $133.4 million, supported by an expanding backlog [7][15] - The company ended the quarter with a record multiyear backlog of $1.14 billion, representing approximately 2.2 times the last twelve months (LTM) multifamily and commercial revenues [15][16] Market Data and Key Metrics Changes - The company reported strong order traction and ongoing market share growth in various U.S. regions, despite macroeconomic uncertainties [11][12] - The book-to-bill ratio remained healthy at 1.2 times, maintaining a track record above 1.1 times for seventeen consecutive quarters [16] Company Strategy and Development Direction - The acquisition of Continental Glass Systems enhances production capabilities in the U.S. and diversifies the company's manufacturing footprint [8][9] - The company plans to develop a fully automated and vertically integrated operation in the U.S. over the next five to seven years to improve logistics and lead time efficiencies [25][62] - Strategic pricing adjustments and supply chain modifications are being implemented to mitigate tariff impacts [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, citing strong performance in single-family residential orders and a robust project backlog [11][30] - The company anticipates that strategic actions will offset the projected $25 million tariff impact for the year, assuming similar volumes to original projections [26][30] - Management remains optimistic about the ability to navigate macroeconomic challenges while maintaining industry-leading profitability [12][32] Other Important Information - The company generated operating cash flow of $51.2 million in Q1 2025, resulting in record quarterly free cash flow of $28.8 million [27][28] - Total liquidity at quarter end was approximately $330 million, providing financial flexibility for growth initiatives and shareholder returns [29] Q&A Session Summary Question: Understanding the architectural glass industry imports - Management noted that while they do not have specific import numbers, their raw materials are sourced from the U.S., providing a competitive advantage [37][38] Question: Residential growth breakdown - The legacy Florida business contributed approximately 15% growth, with the remainder coming from new markets [41] Question: Continental acquisition benefits - The acquisition provides manufacturing capabilities in the U.S. and access to the growing replacement market for condominiums [45][46] Question: Future U.S. manufacturing plans - The company plans to establish a foundry and eventually a fully integrated facility in the U.S. over the next five to seven years [54][62] Question: Order trends in commercial business - Management reported strong order trends and a growing backlog across various U.S. regions, indicating robust demand [65][68]

Financial Data and Key Metrics Changes - Total net sales grew by 10.5% in Q3 2025, driven by acquisitions and volume growth [24] - Adjusted EBITDA increased by 20.1% to $385.1 million, with net income reported at $58.3 million [27] - Total company cost inflation was approximately 4.9%, with foodservice product cost inflation at 3.7% [25][26] Business Line Data and Key Metrics Changes - Foodservice segment saw organic independent case growth of 3.4% for the full third quarter, with a rebound to 6% in April [13][24] - Chain restaurant business grew cases by 1.5%, supported by new business onboarding [14] - Convenience segment volume grew by approximately 1%, outperforming the industry, while Specialty segment net sales were roughly flat [18][19] Market Data and Key Metrics Changes - The macroeconomic environment remains challenging, with consumer performance described as muted [5][10] - Despite challenges, the company gained market share across all three segments [20] - Inflation rates in foodservice are considered manageable, with ongoing monitoring of commodity prices [15][25] Company Strategy and Development Direction - The company aims to capture growth through a diversified food distribution strategy, focusing on both top and bottom line growth [7] - Strategic priorities include leveraging proprietary brands and procurement synergies to expand gross margins [12] - The company plans to discuss its long-term strategy at the upcoming Investor Day [7][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic landscape and capture market share [10][31] - The company remains cautious about the macro environment but optimistic about recent sales trends [49][50] - Future guidance reflects a conservative approach due to competitive pressures and economic uncertainty [30][31] Other Important Information - The Specialty segment was renamed to align with the company's naming conventions, with no operational changes [21] - The company has a robust M&A pipeline and continues to evaluate strategic acquisition opportunities [30][29] Q&A Session Summary Question: Insights on consumer demand and behavior - Management noted that independent case volume was strong at the beginning of the quarter but faced setbacks in February due to weather and economic uncertainty [36][39] Question: Outlook on food inflation - Management indicated that food inflation is expected to remain in the mid-single digits, with minimal impact from tariffs [41][44] Question: Trends in organic independent case growth - Management acknowledged a robust recovery in April but emphasized caution due to calendar differences and market conditions [48][50] Question: Changes in competition and market share - Management observed increased competition in the industry, particularly among smaller competitors, but noted that larger distributors are gaining market share [81] Question: Margin expectations for Q4 - Management expects minimal EBITDA margin expansion in Q4, influenced by strong prior year comparisons and ongoing productivity measures [98][100]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.4 billion for the first quarter, representing a 4% increase year-over-year, primarily driven by a 30% increase in used unit sales [13] - Adjusted EBITDA rose to $31.1 million compared to $8.2 million in the previous year, indicating significant operational improvement [14] - The company ended the quarter with approximately $179 million in cash, including about $158 million in the floorplan offset account [15] Business Line Data and Key Metrics Changes - Used vehicle gross margins improved to 18.6%, reflecting year-over-year growth as fresh inventory was aggressively brought back into the system [13] - The company opened nine new dealerships during the quarter, with five Lazydays locations becoming profitable in March, contrasting with previous cumulative EBITDA losses [11][12] Market Data and Key Metrics Changes - The company achieved a combined new and used unit market share of over 14% through February, indicating strong competitive positioning [10] - Used same-store unit sales were up in the high teens in April, while new unit sales increased in the high single digits [10] Company Strategy and Development Direction - The company aims to improve SG&A as a percentage of gross profit by 600 to 700 basis points, focusing on cost reduction and operational efficiency [5][14] - The management emphasized a commitment to selling more RVs, improving margins, and reducing costs, with a focus on profitability and market share growth [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in excess of low double digits in used units and low single digits in new units, despite some pressure on average selling prices (ASP) [9] - The company does not foresee significant fallout from tariff impacts on the RV industry, maintaining a positive outlook for demand and pricing stability [28][29] Other Important Information - The company has made strategic investments in its roadside assistance business to stabilize margins and drive earnings growth later in 2025 [13] - Management highlighted the importance of understanding consumer affordability and the potential for RV ownership as a cost-effective alternative for family vacations [41] Q&A Session Summary Question: ASP softness and promotional support from OEM partners - Management noted that ASP softness was not driven by excessive promotions and emphasized responsible inventory planning and collaboration with manufacturers [18][19] Question: Acceleration in same-store sales in April - Management attributed the acceleration to improved weather conditions and easier comparisons from the previous year, with confidence in maintaining low single-digit growth for the year [23][24] Question: Impact of tariffs on pricing - Management does not anticipate significant price increases before the model year changeover and believes any increases will benefit the used business [28][29] Question: Durability of balance sheet amid economic slowdown - Management reassured investors of a healthy balance sheet with significant cash reserves and plans to continue paying down debt [34][36] Question: Strength in business despite consumer confidence softness - Management highlighted the stable foundation of the RV market and the appeal of RV ownership as an affordable alternative for families [41] Question: Used business outperformance - Management credited effective sourcing strategies and record procurement efforts for the strong performance in the used segment [46] Question: Cost reduction actions and their impact - Management detailed the $35 million annualized cost reduction plan, emphasizing that most of the cuts have been implemented and will positively impact the bottom line [52][54] Question: Market consolidation and M&A outlook - Management indicated that consolidations are accretive to the bottom line and expressed a willingness to pursue opportunistic acquisitions while focusing on cash generation and deleveraging [72][78]