Paragon Care (PGC) H2 2025 Earnings Call August 26, 2025 08:00 PM ET Company ParticipantsCarmen Riley - CEOMarcus Crowe - CFOStewart Oldfield - PrincipalConference Call ParticipantsTom Godfrey - Senior Analyst - HealthcareJames Tracey - Senior Research AnalystCarmen RileyGood morning, everybody. My name is Carmen Riley. I'm Chief Executive Officer of Paragon Care. I've been in the company for about fifteen years. Prior to taking over the role on the July 1, I was Chief Operating Officer, and obviously, I'm ...

For personal use only Annual Financial Investor Presentation Results Year Ended 30 June 2025 ParagonCare Limited - ASX PGC Disclaimer This document has been prepared by Paragon Care Limited ACN 064 551 426 (ASX: PGC) (ParagonCare or the Company) (Presentation). The material in this Presentation contains general background information about ParagonCare and its current activities as at the date of this Presentation. The information contained in this Presentation is in summary form only and does not purport to ...

Core Viewpoint - Air Lease Corporation (AL) reported strong first-quarter 2025 results, with earnings and revenues exceeding expectations, driven by increased rental revenues and aircraft sales, despite higher interest expenses [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $1.51, surpassing the Zacks Consensus Estimate of $1.24, marking a 15.3% year-over-year improvement [1]. - Total revenues amounted to $738.3 million, exceeding the Zacks Consensus Estimate of $710.8 million, and grew 11.3% year over year [2]. Revenue Breakdown - Revenues from the rental of flight equipment increased by 5% year over year to $645 million, attributed to fleet growth, although offset by a $12.7 million decrease in end-of-lease revenue [4]. - Revenues from aircraft sales, trading, and other sources surged by 90% year over year to $93 million, driven by heightened sales activity, including $61 million in gains from the sale of 16 aircraft [4]. Operating Expenses and Financial Position - Operating expenses rose by 13.4% year over year to $598.6 million [5]. - As of March 31, 2025, Air Lease owned 487 aircraft with a net book value of $28.6 billion, and the total fleet size was 804 [5]. - Cash and cash equivalents at the end of the first quarter were $456.62 million, down from $472.55 million in the previous quarter, while debt financing decreased to $19.8 billion from $20.2 billion [6]. Management Commentary - The CEO highlighted a strong quarter characterized by fleet expansion, significant sales gains, and insurance settlements related to aircraft in Russia, while noting no aircraft deliveries to countries with reciprocal tariffs [3]. - The company continues to benefit from robust global aircraft demand amid significant supply constraints [3].

Financial Data and Key Metrics Changes - Universal reported total operating revenue of $382.4 million for Q1 2025, a decline from $491.9 million in the same period last year [4][14] - Net income was $6 million or $0.23 per share, down from $52.5 million or $1.99 per share year-over-year [13][14] - Operating margin for the quarter was 4.1%, compared to 15.3% in Q1 2024 [14] - EBITDA decreased to $51.7 million from $96.9 million year-over-year, reflecting a significant decline [14] Business Line Data and Key Metrics Changes - **Contract Logistics**: Revenue was $255.9 million with a 9.3% operating margin, down from $313.5 million and 26% margin last year. The decline was attributed to a lack of specialty project revenue and lower auto production volumes [5][15] - **Trucking**: Revenue decreased by 20.2% to $55.6 million, with a 3.9% operating margin, down from 5.3% last year. A 31.3% drop in volumes was noted, although revenue per load excluding fuel surcharges increased by over 24% [7][17] - **Intermodal**: Revenue fell to $70.7 million, resulting in an operating loss of $10.7 million, compared to a loss of $8.3 million last year. The segment faced a 3.4% drop in volumes and an 8.7% decline in rate per load [9][17] Market Data and Key Metrics Changes - The automotive sector showed a sluggish start in January but improved significantly in February and March, with auto production volumes increasing by 29% in February and 67.1% in March compared to January [6][27] - Intermodal volumes also improved, with a 13% increase in February and a 53% increase in March from January [27] Company Strategy and Development Direction - The company is focused on transforming underperforming segments and optimizing operations while maintaining a disciplined growth strategy [10] - There is a commitment to enhancing customer relationships and expanding logistics solutions, particularly in the automotive sector [30][32] - The company is actively monitoring tariff impacts and is prepared to adapt its strategies accordingly [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the transportation and logistics landscape but expressed confidence in the company's resilience and long-term strategic direction [3] - The outlook for the second half of 2025 is expected to improve, driven by increased production and operational adjustments [10][32] - Management noted a significant reduction in automotive inventory levels, which could lead to improved production numbers in the latter half of the year [32] Other Important Information - Capital expenditures for 2025 are projected to be between $100 million and $125 million, with real estate investments between $55 million and $65 million [18] - A quarterly dividend of $1.05 per share was declared, payable on July 1, 2025 [19] Q&A Session Summary Question: Trends with auto OEMs and expectations for the rest of the year - Management noted a slow start in January with a loss, but significant improvements were seen in February and March, indicating a rebound in auto production and logistics volumes [25][27] Question: Inventory management and tariff impacts - A wait-and-see approach is observed among customers regarding inventory and sourcing strategies due to tariff uncertainties [34][35] Question: Geographical dispersion of facilities - The company has a national presence with facilities near major ports and rail networks on both coasts, enhancing its logistics capabilities [37] Question: Potential reduction in imports - Management is aware of a projected 15% reduction in imports starting mid to late May and is monitoring its impact on the intermodal business [39] Question: Impact of flatbed market tightening - The heavy haul business has seen some expansion, but overall pricing in flatbed transportation remains stable without significant upward movement [42]