PresentationAlistair HargreavesChief Executive Officer of UK Insurance Business Welcome, everyone. Thank you for coming this morning. This is Admiral Group's Household -- U.K. Household and Beyond Motor deep dive. I'm introducing today's session, and then our top team will take you through the deep dive. And after that, we've got plenty of time for Q&A. So why are we doing this session today? Well, these businesses have established a track record of top line growth, reaching profitable scale, and we've jus ...

Core Insights - The company has undergone leadership changes, with Mick Beekhuizen transitioning from CFO to CEO over the past six months, bringing a wealth of experience from various roles within the organization [2][3] - The company is focused on navigating an evolving market environment to achieve sustainable profitable growth, leveraging its strong portfolio of brands [3] Leadership Transition - Mick Beekhuizen has been with the company for six years, holding key positions that have provided him with a deep understanding of the organization [2] - The transition to CEO has not revealed any major surprises, indicating a strong familiarity with the company's operations and challenges [2] Market Environment - The current market environment is described as continuously evolving, which presents both challenges and opportunities for the company [2] - The emphasis is on adapting strategies to ensure the company can return to a path of sustainable profitable growth [3]

Metallus (MTUS) FY Conference Summary Company Overview - Metallus is a specialty metals manufacturing company based in Canton, Ohio, with over 100 years of operation, previously a division of Timken Company until its spinout in 2014 as Timken Steel, and rebranded to Metallus in 2024 [4][5] - The company employs approximately 1,900 people, including 1,200 United Steel workers [5] Financial Performance - In the last fiscal year, Metallus shipped approximately 555,000 tons with a 60% melt utilization, resulting in $1.1 billion in sales [7] - The first half of the current year saw a 28% increase in shipments compared to the second half of the previous year [7] - The second quarter of the current year reported net sales exceeding $300 million, a sequential increase of $24 million (9%) driven by higher shipments across all end markets [23] - Adjusted EBITDA for the second quarter represented the highest quarterly profits in over a year, with operating cash flow at 1.3x EBITDA [23] Market Position and Product Offerings - Metallus has a 12% share of the U.S. Special Bar Quality (SBQ) steel consumption and a 40% share in seamless mechanical tubing [8][9] - The company serves diverse end markets, including automotive, industrial, energy, and aerospace/defense [10][12] - Notably, Metallus is the sole domestic producer of specialized high fragmentation steel for the U.S. Army, with a $100 million contract to increase capacity for 155mm shells [13] Growth Initiatives - The company is targeting $250 million in sales to the defense market by 2026, more than double historical sales levels [15] - Metallus is also focusing on vacuum arc remelt steel, aiming for $30 million in sales in this market in 2025 [18] - Investments in production capacity and operational efficiencies are expected to yield annual savings of approximately $10 million starting in 2026 [28] Challenges and Cost Management - Planned annual shutdown costs are expected to be around $15 million in the second half of the year, with $3 million to $5 million in non-recurring labor agreement costs anticipated [25][27] - Higher electricity costs are projected to add $2 million to $3 million in quarterly expenses [26] Strategic Outlook - Metallus maintains a disciplined capital allocation strategy, targeting $250 million to $300 million in liquidity and focusing on organic and inorganic growth opportunities [31][32] - The company has reduced its pension liability from over $1 billion in 2021 to less than $500 million today, with a funded position of about 84% [34] - Metallus has a share buyback authorization with over $93 million remaining, having reduced diluted shares by over 25% since early 2022 [35] Investment Rationale - Metallus presents an attractive entry point for investors, with a strong balance sheet, liquidity, and a focus on operational efficiencies [36] - The company is positioned to benefit from domestic production trends and government investments in national defense [37] Additional Opportunities - The company is exploring additional funding opportunities, including a potential $10 million bill from Congress for expanding capabilities [39]

Financial Data and Key Metrics Changes - In Q2 2025, Citi Trends reported sales of $190.8 million, an 8% increase compared to Q2 2024, with comparable store sales growth of 9.2%, marking the fourth consecutive quarter of mid to high single-digit comp sales growth [19][25] - The gross margin rate for Q2 was 40%, the highest since fiscal 2021, with an 890 basis point expansion year-over-year [20] - Adjusted EBITDA for the quarter was a loss of $2.6 million, but an increase of $14.6 million compared to Q2 2024 [22] Business Line Data and Key Metrics Changes - The product performance was broad-based across categories, with strong sales in women's plus and big men's apparel, as well as children's categories [10][11] - Transaction growth accounted for the majority of sales gains, with improvements in units per transaction while maintaining stable average unit retails [8][10] Market Data and Key Metrics Changes - The company experienced consistent results across climate zones, regions, and store volume deciles, indicating broad-based improvement [8][19] - Year-to-date comparable store sales growth was reported at 9.6%, with a two-year comp stack of 10.3% [23] Company Strategy and Development Direction - Citi Trends is focused on a three-phase transformation strategy: Repair, Execute, and Optimize, aimed at delivering sustainable profitable growth [5] - The company plans to remodel approximately 50 stores per year and expand square footage in the mid-single-digit range, with a goal of achieving $40 million or more in EBITDA by 2027 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround plan, noting that the macroeconomic environment remains uncertain but sales momentum has continued into Q3 [25][31] - The company is navigating the changing tariff landscape successfully and is focused on maintaining flexibility and liquidity [17] Other Important Information - Total inventory dollars at quarter-end decreased by 12.9% compared to last year, with average in-store inventory down 5.7% [24] - The company has no debt and maintains a strong balance sheet with $50 million in cash [25] Q&A Session Summary Question: Discussion on expenses and incentive compensation - Management confirmed that SG&A expenses are expected to average around $78 million per quarter in the back half of the year, with a slight increase in Q4 due to holiday sales [34][35] Question: Incremental margin flow-through on sales - The goal is to achieve a 20% to 25% EBITDA flow-through on incremental sales, with expectations of around 25% in the back half of 2025 [36] Question: Insights from the new trend director - The trend director has focused on interpreting consumer voice and translating it into tangible styles and trends, leading to better product curation [37][38] Question: Sustained momentum in Q3 - Management indicated that sustained momentum is driven by refined preseason planning, thoughtful category reviews, and improved execution in stores [42][45] Question: Store remodels and new store economics - The average remodel cost is between $85,000 and $130,000, with expected sales lifts varying by market [56][59]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $1.1 billion, a 25% increase compared to Q4 2023, with 2,822 homes sold [16] - Full-year revenue for 2024 was $5.2 billion, down from $6.9 billion in 2023, primarily due to a lower starting inventory balance [17] - Contribution profit for Q4 was $38 million, up from $30 million in Q4 2023, resulting in a contribution margin of 3.5% [18] - For the full year, contribution profit improved to $242 million from a loss of $258 million in 2023, with a contribution margin of 4.7% compared to negative 3.7% the previous year [19] - Adjusted EBITDA loss for Q4 was $49 million, a $20 million improvement year-over-year, while the full-year adjusted EBITDA loss was $142 million, down from $627 million in 2023 [19][20] Business Line Data and Key Metrics Changes - The company acquired 2,951 homes in Q4 2024, compared to 3,683 in the same quarter last year, but full-year acquisitions increased by 31% to 14,684 homes [17][18] - The company is focusing on optimizing contribution profit dollars and exploring new revenue opportunities, particularly in its cash offer business [9][10] Market Data and Key Metrics Changes - The spring selling season in 2025 is expected to start slower, with clearance rates down 25% compared to the previous year [8] - Active listings increased by nearly 20%, indicating a slowing market, while new listings are down 20% to 25% [9] - The company anticipates continued macro pressures affecting performance in the near term [21] Company Strategy and Development Direction - The company aims for profitable, sustainable growth by refining its approach to home acquisitions and enhancing customer experience [9][10] - Key strategies include optimizing spreads, improving pricing models, aligning marketing strategies with seasonal patterns, and expanding offerings to serve more sellers [10][12][13] - The company is also focused on expanding its marketplace and list with Opendoor offerings to provide more choices for sellers [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges persistent macro headwinds, including high interest rates and low mortgage rates for sellers, which are expected to continue impacting performance [21] - The outlook for Q1 2025 includes expected revenue between $1 billion and $1.075 billion, with a contribution profit of $40 million to $50 million [21] - The company is committed to reducing adjusted net losses and improving operational efficiencies throughout 2025 [22] Other Important Information - The company ended 2024 with 6,417 homes in inventory, valued at $2.2 billion, a 22% increase from the prior year [20] - The company has successfully renewed credit facilities, increasing borrowing capacity and extending terms through 2027, demonstrating strong support from capital partners [20] Q&A Session Summary Question: Can you elaborate on cost savings and efficiency opportunities? - Management discussed significant actions taken to reduce fixed costs, including a workforce reduction and the disposition of Mainstay, expecting $85 million in cost savings [27] Question: What updates can you provide on the marketplace in Charlotte and Raleigh? - Management noted high customer acceptance and clearance rates in these markets, indicating confidence in expanding the offering [30] Question: What is the opportunity for "list with Opendoor" and how does it fit into the overall strategy? - Management highlighted that this offering allows sellers to test the market while having the assurance of a cash offer, which is appealing in the current market [36] Question: How does the company plan to manage operating expenses throughout the year? - Management indicated that while Q1 operating expenses are expected to rise slightly, they anticipate costs to decrease over the year as cost-saving initiatives take effect [64] Question: How is the company balancing expansion with current market challenges? - Management stated that they are not pulling back on market expansion but are focusing on improving pricing effectiveness and contribution margins [40]