Financial Data and Key Metrics Changes - Total revenue for the third quarter of fiscal 2025 increased by 16% to $5.9 million compared to $5.1 million in the prior year [14] - GAAP net income rose from $1.6 million to $2 million, reflecting a 27% increase [16] - Earnings per share increased to $0.10 from $0.08, marking a 25% rise [17] - For the fiscal year to date, total revenue increased by 10.3% to $16.8 million [18] Business Line Data and Key Metrics Changes - Recurring revenue increased by 15% to $5.8 million, although the percentage of recurring revenue to total revenue declined from 99% to 98% due to accelerated customer onboarding [15] - Income from operations increased by 43% from $1.3 million to $1.8 million [16] - The company is experiencing growth across all lines of business, including traceability, compliance, and supply chain [11][28] Market Data and Key Metrics Changes - The FDA extended the enforcement deadline for compliance by 30 months, allowing more time for smaller distributors and producers to meet requirements [21] - Major retailers are prioritizing food safety and investing in food traceability, which is driving market adoption [23] Company Strategy and Development Direction - The company aims to grow annual revenue at a double-digit pace of 10% to 20% while increasing profitability even faster [6][28] - The strategy includes exceptional customer care, flawless execution, and balancing costs with opportunities [13][20] - The company is focused on cross-selling initiatives, leveraging a single technology platform to enhance operational efficiencies [25][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and cash generation, with expectations to return about 50% of annual cash from operations to shareholders [30] - The company is optimistic about its ability to grow revenue and earnings, with a focus on maintaining customer service quality [29][31] Other Important Information - The company has over $28 million in cash as of March 31, 2025, after returning more than $25 million to shareholders through dividends and stock buybacks [17][20] - The company plans to continue its capital allocation strategy, focusing on returning capital to shareholders while building cash reserves [20][59] Q&A Session Summary Question: Impact of tariffs on the business - Management indicated that tariffs introduce uncertainty but have not significantly impacted business operations [33][34] Question: Changes in cost structure and profitability - Management stated that while they will continue to invest in awareness and automation, the cost structure is not expected to change significantly [35][36] Question: Contribution margin on incremental revenue - Current contribution margin is approximately 50%, with a goal to increase it to 70-80% as onboarding costs flatten [40] Question: Growth of other initiatives and cross-selling - Management highlighted that cross-selling is becoming more effective, with growth across various business lines [41][49] Question: Capital allocation plans and M&A strategy - The company prefers building applications in-house rather than acquiring technologies, focusing on domain knowledge and customer acquisition [51][52]

Financial Data and Key Metrics Changes - AMERISAFE reported a net income of $13.2 million or $0.69 per diluted share for Q4 2024, down from $19.2 million or $1 per diluted share in Q4 2023 [13] - For the full year, net income was $55.4 million compared to $62.1 million in 2023, while net operating income decreased to $48.4 million from $55.9 million [14] - Gross premiums written increased by 3.9% in Q4 and 3.1% for the full year, with net premiums earned growing by 1.2% in Q4 and 1.3% for the year [6][14] - The combined ratio was reported at 88.7% with a return on equity (ROE) of 20.2% [8] Business Line Data and Key Metrics Changes - Voluntary premiums on policies written rose by 8.5% in Q4 and 4.6% for the year compared to 2023, with enforced policy count growing by 9.6% [6][7] - The accident year loss ratio remained steady at 71% for the full year, consistent with the prior year [10] Market Data and Key Metrics Changes - The company experienced strong premium retention with a policy retention rate of 94.1% on a policy basis and 88% on a premium basis for the quarter [37] - The investment portfolio had a net investment income decrease of 14.4% to $6.9 million for Q4 and 6.8% to $29.2 million for the full year [17] Company Strategy and Development Direction - AMERISAFE is focused on top-line growth while maintaining consistent underwriting margins, emphasizing profitable growth in a competitive landscape [6][11] - The company aims to improve agent relationships and enhance its sales-driven culture to capitalize on profitable opportunities [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitable growth despite industry-wide challenges, including rate reductions [7][11] - The company anticipates favorable development from prior accident years and aims to continue identifying profitable high-risk opportunities [10][11] Other Important Information - The Board of Directors approved a 5.4% increase in the regular dividend to $0.39 per share [11] - The investment portfolio is high quality with an average AA- credit rating and a duration of 4.4 years [19] Q&A Session Summary Question: Can you provide context on the policy count growth of 9.6%? - Management clarified that the 9.6% growth was for the entire year, with a 2.6% growth in the fourth quarter [24][28] Question: How has the average size per policy trended? - The average policy size for 2024 was slightly lower than in 2023, with a noted slowdown in average wages in Q4 [34] Question: What impact did renewal rates have on the top line? - Renewal rates were strong, with a policy retention rate of 94.1% and premium retention at 88% [37] Question: How are the claims from 2021 and 2022 shaping up? - Management indicated that 2021 and 2022 are expected to be good accident years, with favorable development from these years [39] Question: What is the outlook for the construction industry? - Management believes the construction industry remains strong, with continued payroll growth and opportunities for business [74][79] Question: Any updates on large claims for the year? - The company ended the year with 18 claims over a million dollars, which is consistent with the five-year average [81] Question: How is medical inflation affecting costs? - There have been no significant developments regarding medical inflation, but home health costs are being monitored closely [86] Question: What is the outlook for audit premiums? - Management expects audit premiums to remain positive in 2025, despite potential deceleration in year-over-year comparisons [100][102] Question: Have competitors become more aggressive in the workers' comp market? - The market remains competitive, but AMERISAFE is prepared for competitors entering the high hazard space [104]

Financial Data and Key Metrics Changes - Consolidated revenue growth of 12.8% in Q4 2024, with operating income rising by 31.5% compared to the previous year [21] - Net consolidated income increased by 78.3% to nearly MXN 11 billion, driven by a non-cash change gain of MXN 2.7 billion and higher net income from discontinued operations of MXN 3.3 billion [21][22] - Gross margin expanded by 230 basis points to 47.7%, with operating margin increasing by 50 basis points to 11.7% of sales [25][26] Business Line Data and Key Metrics Changes - Proximity Americas division saw total revenues grow by 13.2%, with same-store sales growth of 3.8% despite a 2.8% decline in average traffic [24] - Health division revenues grew by 13.3%, with same-store sales increasing by 9.4% and operating income rising by 109.7% [29] - OXXO Gas reported a 9.7% increase in same-station sales and an 8% increase in total revenues [32] Market Data and Key Metrics Changes - Proximity Europe revenues increased by 21.5% in pesos, driven by retail revenue growth across countries [27] - Coca-Cola FEMSA recorded double-digit increases across their income statement, with income from operations rising by 25% [36] Company Strategy and Development Direction - FEMSA Forward initiative is nearing completion of planned divestitures, having monetized approximately $10.7 billion to focus on core business units [11][39] - Plans for 2025 include deploying nearly MXN 66 billion or $3.2 billion in capital returns, including ordinary and extraordinary dividends and share buybacks [14][15] - The company aims to maintain a disciplined approach to capital allocation, focusing on long-term intrinsic value per share [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties and a softer consumer environment in Mexico, emphasizing the urgency to drive growth and profitability [46] - The company remains optimistic about growth opportunities across its business units, leveraging digital capabilities and operational efficiencies [10][46] Other Important Information - The succession process for the CEO position is underway, with a special committee formed to oversee the process [16][18] - The digital ecosystem has been rebranded as Spin, with significant growth in active users and sales linked to the loyalty program [34][35] Q&A Session Summary Question: Insights on shareholder remuneration and buybacks - Management plans to execute a mix of local buybacks in Mexico and accelerated share repurchases in the US, similar to previous years [55][56] Question: OXXO store expansion versus same-store sales trends - Management is confident in the ongoing expansion of OXXO stores, monitoring performance closely to ensure value creation [62][63] Question: Traffic decline attribution and operating leverage - Traffic decline is attributed to various factors, including weather and cannibalization, but management is confident in the store performance metrics [72][76] Question: Growth strategy in the US - The focus will be on organic growth through OXXO standalone stores and small bolt-on acquisitions, with an emphasis on profitability [90][91] Question: Financial services growth and potential banking license - The company is expanding financial services and plans to apply for a banking license, focusing on responsible growth in this area [100][101]