Financial Data and Key Metrics Changes - Consolidated gross profit for Q4 2024 was $21.6 million, flat compared to Q4 2023. For fiscal 2024, gross profit was $79.8 million, up from $76.7 million in fiscal 2023 [30] - Adjusted EBITDA for Q4 2024 was $6.3 million, down from $8.9 million in Q4 2023. For fiscal 2024, adjusted EBITDA was $25.9 million, compared to $26.6 million in fiscal 2023 [31] - Adjusted EPS for fiscal 2024 was $2.03, slightly down from $2.04 in fiscal 2023 [31] Business Line Data and Key Metrics Changes - In Engineering, Q4 2024 gross profit was $5.2 million, down from $6.1 million in Q4 2023. Fiscal 2024 gross profit was $22.5 million, up from $20.6 million in fiscal 2023 [35] - In IT, Life Sciences, and Data Solutions, Q4 2024 gross profit was $3.9 million, down from $4.5 million in Q4 2023. Fiscal 2024 gross profit was $14.7 million, down from $16.2 million in fiscal 2023 [36] - In Health Care, Q4 2024 gross profit was $12.5 million, up from $11.0 million in Q4 2023. Fiscal 2024 gross profit was $42.5 million, compared to $39.9 million in fiscal 2023 [37] Market Data and Key Metrics Changes - School revenue for Q4 2024 was $34.9 million, compared to $29.8 million in Q4 2023. Non-School revenue for Q4 2024 was $6.2 million, down from $6.9 million in Q4 2023 [38] - Days Sales Outstanding (DSOs) improved from 114 in Q3 2023 to 92 in Q4 2024 [39] Company Strategy and Development Direction - The company aims for smart growth, operational excellence, and delivering unparalleled service to clients as it moves into 2025 [11] - The focus on behavioral health services in schools is a key growth driver, addressing the mental health crisis among students [9] - The company is transitioning to AI and ML tools in its IT services, indicating a shift in primary markets [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a strong employee base and strategic positioning for success despite macroeconomic uncertainties [6] - The company aims for double-digit growth in adjusted EBITDA for each quarter in 2025, viewing any failure to meet this as a disappointing outcome [73] Other Important Information - The company faced several material expenses in Q4 2024, including a canceled industrial process equipment order and high medical costs, which negatively impacted gross profit [32][33] - A class action lawsuit settlement added approximately $450,000 in SG&A expenses [33] Q&A Session Summary Question: Was any of the extra costs realized in the tax rate? - The tax rate for Q4 was influenced by the overall effective tax rate for the year, which was 34.0%, considered high and abnormal [45][46] Question: What is the normal tax rate range? - The normal tax rate range is expected to be between 26% to 29% [48][49] Question: Can you elaborate on the specific costs in Engineering? - The $900,000 reduction in gross profit was due to a canceled order and significant rework on a project, both resulting in lower revenue [52][56] Question: Did the canceled order relate to any political factors? - No, the canceled order was due to nuances with a particular client, not political factors [62] Question: Is there any impact from DOGE or related headlines? - There is no direct impact from DOGE on the company, although general IT environment changes could occur [66][70] Question: What is the growth expectation for adjusted EBITDA? - The company aims for low double-digit growth in adjusted EBITDA every quarter in 2025 [73]