Financial Data and Key Metrics Changes - Third quarter net sales were $205.4 million, slightly higher year over year, driven by infrastructure and industrial growth, offset by soft demand in automotive and consumer sales [4][12] - Earnings per share were $0.19, with adjusted EPS at $0.26, reflecting a year-over-year increase [5] - Free cash flow doubled compared to last year, reaching $21.5 million, attributed to improved cash flow management [16] Business Line Data and Key Metrics Changes - Material handling net sales increased by 1.9%, driven by strong sales of military products and composite matting, despite lower demand for fuel containers [15] - Distribution net sales decreased by 4.4% due to lower volumes, with adjusted EBITDA margin falling by 260 basis points [15] - Adjusted gross margin improved by 150 basis points to 33.9%, while adjusted operating margin increased by 20 basis points to 10.2% [13] Market Data and Key Metrics Changes - Industrial market expected to see moderate growth, particularly in military products, with military sales up 119% year to date [17] - Infrastructure products are anticipated to drive strong growth due to ongoing spending on large construction projects [18] - Consumer sales are projected to decline due to a lack of storm-related activity, with no storms recorded this year [18] Company Strategy and Development Direction - The company is focused on its Focus Transformation Program, aiming to optimize its portfolio and improve margins through the divestiture of the MTS business [6][7] - A culture of execution and accountability is being established, with KPIs implemented to measure progress and align incentives with long-term objectives [7][8] - The company is targeting $20 million in annualized cost savings by the end of 2025, having already identified $19 million [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve performance and navigate the current economic environment, despite challenges in certain markets [5][20] - The outlook for the industrial sector remains positive, particularly for military products, while consumer markets face headwinds [17][18] - The company is committed to maintaining a disciplined approach to capital allocation and working capital management [16] Other Important Information - The company welcomed a new CFO, Sam Ruddy, who brings extensive financial leadership experience [10] - The company reduced debt by $10 million, bringing total debt to $369 million, with a net leverage ratio of 2.6 times [16] Q&A Session Summary Question: Growth trajectory of Signature and additional opportunities - Management is pleased with Signature's growth, driven by infrastructure construction market tailwinds and plans for new product offerings [23][24] Question: Expectations for SG&A costs in Q4 - SG&A costs are expected to decrease, with unusual items impacting Q3; transformation savings are anticipated to contribute to reductions [30] Question: Drivers of free cash flow increase - Focus on working capital management and lighter capital spending contributed to the increase in free cash flow, with expectations for a solid Q4 [32]