Financial Data and Key Metrics Changes - First quarter net sales were $206.8 million, essentially flat year over year, with growth in material handling offset by softness in the distribution segment [24][26] - Adjusted gross margin improved by 80 basis points to 33.5%, driven largely by the acquisition of Signature and favorable product mix [25] - Adjusted operating income increased to $18.7 million, with margin improving 100 basis points to 9% of sales [25] - Diluted adjusted earnings per share were $0.22 compared to $0.21 in the previous year [26] Business Line Data and Key Metrics Changes - Material Handling net sales increased by 3.6% year over year, primarily due to the Signature acquisition [26] - Adjusted EBITDA for Material Handling rose by 11.7% to $36.3 million, resulting in a 60 basis point increase in adjusted EBITDA margin to 23% [27] - Distribution net sales decreased by 10.3% due to lower volume and pricing, with adjusted EBITDA dropping to $500,000 [27] Market Data and Key Metrics Changes - Industrial market is expected to continue moderate growth driven by global inventory replenishment for military applications [31] - The vehicle end market, including RV and marine, is projected to decline due to economic uncertainty and tariff impacts [31][56] - Consumer market sales are anticipated to remain stable, while food and beverage markets are also projected to be stable [31] Company Strategy and Development Direction - The company is focused on a transformation program aimed at delivering consistent and reliable results, with objectives including establishing a culture of execution and accountability [11][12] - Plans to optimize cash flow and support disciplined capital allocation, including a $10 million share repurchase plan [16] - The company aims to announce an updated long-term strategy for each business by the end of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts due to a predominantly domestic supply chain [10] - There are clear opportunities for improvement, and management is optimistic about the path to elevate performance [7][8] - The company is closely monitoring end market conditions for potential impacts from tariffs and other factors [30] Other Important Information - The company has achieved $12 million in synergies from the Signature acquisition, exceeding the initial target of $8 million [70] - The CFO, Grant Fitz, will be stepping down, with Dan Hoehn serving as interim CFO [22][23] Q&A Session Summary Question: Impact of tariffs on Central America facilities and price sensitivity of customers - Management indicated that Central America has a small impact on the distribution business and that customers are price sensitive but will adjust as needed [38][39] Question: Reasons for low free cash flow this quarter - Management explained that low free cash flow was due to timing of accounts receivable and proactive inventory purchases ahead of potential tariffs [40][44] Question: Uptake in orders for military products from Signature and Scepter - Management reported strong order flow and growth in both Signature and Scepter businesses, with positive customer relationships [47][49] Question: Outlook for the vehicle group and economic uncertainty - Management noted that economic uncertainty and tariff impacts have led to a cautious approach among customers in the RV and marine sectors [55][56] Question: Strategies to turn around the distribution business - Management emphasized the importance of understanding customer needs and providing value-added services to improve the distribution business [62][64] Question: Learnings from the Signature acquisition - Management highlighted successful integration and synergies achieved from the Signature acquisition, which has positively impacted operations [68][70]

Financial Data and Key Metrics Changes - First quarter net sales were $206.8 million, essentially flat year over year, with growth in material handling offset by softness in the distribution segment [24][26] - Adjusted gross margin improved by 80 basis points to 33.5%, driven by the acquisition of Signature and favorable product mix [25] - Adjusted operating income increased to $18.7 million, with a margin improvement of 100 basis points to 9% of sales [25] - Diluted adjusted earnings per share rose to $0.22 compared to $0.21 in 2024 [26] Business Line Data and Key Metrics Changes - Material Handling net sales increased by 3.6% year over year, primarily due to the Signature acquisition [26] - Adjusted EBITDA for Material Handling rose by 11.7% to $36.3 million, with a 60 basis point increase in adjusted EBITDA margin to 23% [27] - Distribution net sales decreased by 10.3% due to lower volume and pricing, with adjusted EBITDA dropping to $500,000 [27] Market Data and Key Metrics Changes - Industrial market is expected to see moderate growth driven by global inventory replenishment for military applications [31] - The vehicle end market, including RV and marine, is projected to decline due to economic uncertainty and tariff impacts [31] - Consumer market sales are anticipated to remain stable, while food and beverage markets are also projected to be stable [31] Company Strategy and Development Direction - The company is focused on a transformation program aimed at delivering consistent and reliable results, with objectives including establishing a culture of execution and accountability [12][13] - Plans to optimize cash flow and support disciplined capital allocation, including a $10 million share repurchase plan [17] - The company aims to announce an updated long-term strategy for each business by the end of the year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts due to a predominantly domestic supply chain [10][11] - There is a focus on improving performance across the portfolio, with specific strategies for high growth and lower growth markets [14][15] - Management acknowledged the challenges posed by economic uncertainty and tariffs, particularly in the RV and marine markets [54][56] Other Important Information - The company has achieved $12 million in synergies from the Signature acquisition, exceeding the initial target of $8 million [67] - The CFO announced his departure, with the corporate controller stepping in as interim CFO [22] Q&A Session Summary Question: Impact of tariffs on Central America facilities and customer price sensitivity - Management indicated that Central America has a small impact on the distribution business and that customers are price sensitive but will adjust as needed [38][39] Question: Reasons for low free cash flow this quarter - Management explained that low free cash flow was due to timing of accounts receivable and proactive inventory purchases ahead of potential tariffs [40][42] Question: Uptake in orders for military products from Signature and Scepter - Management reported strong order flow and growth in both Signature and Scepter businesses, with expectations for continued growth [45][48] Question: Details on the vehicle group's downturn - Management attributed the downturn to economic uncertainty and tariff impacts affecting RV and marine spending [52][54] Question: Needs for turning around the distribution business - Management emphasized the importance of understanding customer needs and providing value-added services to improve the distribution business [59][60] Question: Learnings from the Signature acquisition - Management highlighted successful integration and synergies achieved from the Signature acquisition, noting cultural fit and operational improvements [65][67]