Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $45.0 million, a 20% increase year-over-year, with international revenue up by 280%, Canada up by 20%, and the U.S. up by 18% [21][22] - For the full year 2024, revenues reached $162.6 million, a 14% increase compared to 2023, with adjusted gross margin improving to 41% from 39% [23] - Adjusted EBITDA for Q4 2024 was $8.2 million, up from $2.5 million in Q4 2023, while full-year adjusted EBITDA was $22.3 million, significantly higher than $11.9 million in 2023 [26][27] Business Line Data and Key Metrics Changes - The company achieved its highest ever revenue outside of North America in 2024, with international revenue doubling from 5% to 10% of total revenue [12] - Adjusted gross profit for Q4 2024 was $19.4 million, with an adjusted gross margin of 43%, up from 37% in Q4 2023, driven by higher margin international revenues [22] Market Data and Key Metrics Changes - The company reported a significant increase in international revenue, which reached an all-time high of $16.5 million in 2024 [23] - The U.S. revenue for Q1 2025 is expected to be between $8 million and $9 million, while Canadian revenue is projected to be between $32 million and $34 million [28] Company Strategy and Development Direction - The company aims to grow revenue in excess of underlying market activity in 2025, focusing on international markets and new technology introductions [18] - Strategic objectives include enhancing operational efficiency, improving employee engagement, and generating free cash flow [19] - The company is actively looking for M&A opportunities to integrate small tech-related businesses that align with its strategic goals [56] Management's Comments on Operating Environment and Future Outlook - Management expects customer activity in 2025 to be flat to down in the U.S., with slight increases in Canada and core international markets [30] - The strengthening of the U.S. dollar is anticipated to negatively impact revenue and adjusted EBITDA for 2025 [31] - The company is monitoring potential trade actions and has plans to mitigate impacts from increased tariffs [33] Other Important Information - The company ended 2024 with a cash balance of nearly $26 million and expects to generate positive free cash flow in 2025 [36][37] - Capital expenditures for 2025 are expected to be between $1.5 million and $2 million, with free cash flow after distributions projected at $7 million to $10 million [34] Q&A Session Summary Question: Insights on the cadence for the year and spring breakup in Canada - Management expects 2025 seasonality to mimic 2024, with typical activity patterns anticipated [43][44] Question: Factors driving margin expansion - Margin expansion was driven by international growth, operating leverage, and cost reduction actions taken in 2023 [48][50] Question: Interest in small tech-related businesses for M&A - The company is actively looking for M&A opportunities that align strategically and operationally [56][58] Question: R&D developments and upcoming market introductions - Exciting technologies are in development, with some nearing prototype stage and potential market introduction [60][61]

Financial Data and Key Metrics Changes - Consolidated sales for Q4 2024 were $477 million, down from $513 million in the prior year, reflecting a 7% decrease [12][24] - Adjusted EBITDA for Q4 2024 was $55 million with an adjusted EBITDA margin of 11.6%, compared to $53.9 million and 10.5% in the prior year [12][15] - Full-year 2024 consolidated sales totaled $2.09 billion, a decrease of 3% from $2.15 billion in 2023 [14][24] - Full-year adjusted EBITDA was a record $261.6 million, with a margin of 12.5%, up from 11.9% in the prior year [15][16] - Diluted earnings per share for 2024 were $2.46, down from $4.14 in the prior year [16] - Operating cash flow for 2024 was $119.4 million, compared to $146.1 million in the prior year [16] Business Line Data and Key Metrics Changes - Railroad Utility Products and Services (RUPT) sales were flat year-over-year at $216 million, with adjusted EBITDA of $18 million and an 8% margin [24][25] - Performance Chemicals (PC) sales decreased to $148 million from $164 million, with adjusted EBITDA remaining flat at $29 million [28][29] - Carbon Materials and Chemicals (CMC) sales were $114 million, down from $132 million, with adjusted EBITDA increasing to $9 million from $4 million in the prior year [31][32] Market Data and Key Metrics Changes - RUPT achieved record sales for the year, increasing by $45 million or 5%, while PC sales decreased by $20 million or 3% [24][25] - CMC sales decreased by $87 million or 15% compared to the prior year [24][25] - The average pricing of major products was down 13%, and average coal tar costs were down 18% [33][34] Company Strategy and Development Direction - The company plans to focus on cost control and efficiency gains across all business segments in response to market share loss and economic uncertainty [49] - A virtual investor day is scheduled for September 18, 2025, to unveil the details of the 2030 strategic plan [17][71] - The company aims for a net leverage ratio of 2 to 3 times, with expectations to end 2025 at or below 3 times leverage [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in falling short of financial expectations for Q4 and full year 2024, citing volume slowdowns and market share loss as key factors [8][9] - The outlook for 2025 includes expectations of earnings improvement driven by top-line growth and cost containment measures [10][11] - Management remains cautiously optimistic about customer sentiment and market conditions, particularly in the North American market [46][47] Other Important Information - The company reported a 5% reduction in its global workforce, expected to result in over $10 million in savings for 2025 [10] - The board authorized a new $100 million stock repurchase program and increased the quarterly dividend to $0.08 per share [36][41] - The company was recognized by Newsweek as one of America's most responsible companies for the fifth consecutive year [20] Q&A Session Summary Question: What is your competitor strategy regarding market share loss in Performance Chemicals? - Management indicated that the market share loss was anticipated and attributed to competitors diversifying their supply chains and investing in capacity [78][80] Question: Are there immediate plans for investment in Utility and Industrial Products? - Management stated that previous investments are expected to provide growth opportunities, but no immediate capital needs are foreseen [84][88] Question: What is the expected impact of the Stickney plant closure on sales? - The closure is expected to result in a loss of approximately $30 million to $35 million in sales, but it will not impact creosote production [97][99] Question: How will free cash flow be allocated in 2025? - Management plans to allocate free cash flow towards share repurchases and debt paydown, aiming to reduce leverage significantly [107][110] Question: What improvements are expected in the RUPS segment regarding crosstie volumes? - Management projected an 8% increase in crosstie volumes for 2025, with expectations for higher pricing as well [111][112]