Financial Data and Key Metrics Changes - Total consolidated net sales in Q4 2024 were $352.8 million, an increase of 6.1% compared to $332.5 million in the same quarter last year [41] - Gross margin increased by 120 basis points to 28.9% in Q4 2024, compared to 27.7% in the same quarter last year [42] - Net loss in Q4 2024 was $0.1 million, compared to net income of $4.1 million in the same quarter last year [44] - Adjusted EBITDA increased to $40.4 million for Q4 2024, compared to $38.8 million in the same quarter last year [45] Business Line Data and Key Metrics Changes - In the Powered Vehicle Group (PVG), net sales were $116 million, slightly down from $118 million in the prior year but up 5% sequentially [16] - In the Aftermarket Applications Group (AAG), net sales were $112 million, down from $121 million in the prior year quarter but up 11% sequentially [22] - In the Sports Segment Group (SSG), net sales were $125 million compared to $93 million last year, reflecting a 41.5% increase from a full quarter of Marucci [29] Market Data and Key Metrics Changes - The automotive sector continues to face headwinds from ongoing OEM production issues, with expectations for flat-to-down, low single-digit retail sales in 2025 [19] - The bike business is experiencing varied recovery rates across different geographies, with a cautious outlook for 2025 [30] - The European market showed strength in early 2024, but purchasing habits weakened in Q4 due to inventory concerns [32] Company Strategy and Development Direction - The company is focused on operational excellence and strategic positioning across segments, with a comprehensive cost reduction program aimed at improving margins [56][58] - The company is diversifying across segments, products, markets, and geographies, with a focus on product development initiatives to create new customer engagements [15] - The company is strategically repositioning its business to operate more efficiently, with a goal to restore best-in-class EBITDA margins as market conditions normalize [15] Management's Comments on Operating Environment and Future Outlook - Management expects continued market pressures in 2025 but remains committed to operational efficiency and cost management to protect margins [21] - The company anticipates net sales for fiscal year 2025 in the range of $1.385 billion to $1.485 billion, with adjusted earnings per diluted share between $1.60 and $2.60 [52] - Management acknowledges the complexity of the regulatory environment, including tariffs, and is actively analyzing potential impacts [37][38] Other Important Information - The company has identified $25 million in savings across COGS and SG&A as part of its cost optimization plan [13] - The company is expanding its product portfolio, including the launch of the AGwagon, designed for agricultural use [26] - The company is focused on debt paydown as a priority for capital allocation, having paid down $63 million in debt during Q4 [51] Q&A Session Summary Question: Update on Taiwan facilities consolidation and capacity - Capacity in Taiwan is in line with pre-COVID levels, with increased efficiency within the same footprint [62] Question: Update on the upfitting business and dealership dialogue - The company is cultivating strong relationships with dealers and repositioning inventory effectively [66] Question: Insights on the bike business and revenue expectations - The company is being conservative in its revenue expectations for the bike business, despite positive signals [72] Question: Impact of the new MLB partnership on Marucci - Growth from the MLB partnership is expected to materialize in Q2 and Q3, with ongoing preparations [76] Question: Conversations with OEM partners regarding tariffs - The company feels relatively insulated from tariff impacts due to its focus on premium products and U.S.-produced chassis [83]