[Music] [Applause] Today I have a confession and I wonder if you've ever done this too. Picture this. You're out at a cool restaurant and by cool I mean loud.Your friend says something and you don't quite catch it. So you ask them to repeat it and then again but never a third time because by then your mind is scrambling. Was that a question.Should I laugh. Should I smile. So you go with the universal backup plan, the smile and nod.And you just hope it wasn't a question. You know it, right. It's the thing we ...

Company and Industry Summary Company Overview - The company reported net sales of **$20.97 billion** for the month, representing an increase of **6.8%** from **$19.64 billion** in the same period last year [3] Sales Performance - Comparable sales results for the month were as follows: - **U.S.**: **4.1%** - **Canada**: **3.3%** - **Other International**: **6.6%** - **Total Company**: **4.3%** - **E-commerce**: **11.6%** [3] - When excluding impacts from changes in gasoline prices and foreign exchange, comparable sales were: - **U.S.**: **5.5%** - **Canada**: **6.3%** - **Other International**: **8.4%** - **Total Company**: **6%** - **E-commerce**: **12%** [4] Traffic and Transaction Insights - Comparable traffic or frequency increased by **3.4%** worldwide and **2.8%** in the U.S. [4] - The average worldwide selling price per gallon of gas decreased by approximately **10.4%** year-over-year [5] - Average transaction value increased by **0.9%**, and when excluding gas deflation and foreign exchange, it was up **2.5%** [5] Regional Performance - Strongest comparable sales in the U.S. were observed in the **Northwest**, **Midwest**, and **Los Angeles** regions [6] - Internationally, the best results were in **Mexico**, **Taiwan**, and **Korea** [6] Merchandising Highlights - Foods and sundries showed positive mid to high single-digit growth, with strong performance in: - **Cooler** - **Candy** - **Frozen Foods** - Fresh foods increased by high single digits, particularly in: - **Meat** - **Bakery** - Non-foods also performed well with mid single-digit growth, especially in: - **Jewelry** - **Majors** - **Gift Cards** - Ancillary business sales declined by low to mid single digits, while pharmacy, optical, and hearing aid departments were top performers [7][8] Challenges and Risks - The negative impact of foreign currencies on total and comparable sales was approximately: - **Canada**: **-1.6%** - **Other International**: **-1.0%** - **Total Company**: **-0.4%** [5] - Gas price deflation negatively impacted total reported comparable sales by approximately **-1.3%** [5] - The negative impact of cannibalization was approximately **-70 basis points** for the company in May [6] Future Outlook - The upcoming June reporting period will include five weeks, starting from June 2 and ending July 6, compared to the previous year's five weeks from June 3 to July 7 [8]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $132 million, which is at the high end of the guided range, and EPS of $0.18, also at the midpoint of guidance [15][26] - Gross margins for Q1 were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins and unfavorable customer mix [27] - Cash from operations exceeded the high end of guidance, driven by higher than expected customer prepayments, with $1 million generated in Q1 [30][32] Business Line Data and Key Metrics Changes - Medtech and specialty audio revenue was $60 million in Q1, slightly up year-over-year but seasonally down from Q4 [16][26] - Precision Device segment revenue was $73 million, flat compared to Q4, with expectations for growth as production challenges are addressed [19][20] - The company anticipates year-over-year revenue growth accelerating in Q2, supported by a strong backlog in medtech and specialty audio [18][24] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [9][10] - Inventory levels at distributors are normalizing, leading to increased order activity, particularly in the industrial market [48][75] - The medtech market is expected to remain resilient, with historical data showing modest impacts during economic downturns [12][17] Company Strategy and Development Direction - The company is focused on maintaining growth in earnings and revenue despite tariff challenges, leveraging its proximity manufacturing strategy [7][8] - There is a strong emphasis on innovation and partnerships in the medtech sector, with expectations for continued growth in 2025 [18][24] - The company is exploring acquisition opportunities and plans to maintain a manageable debt level while generating robust cash flow [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current tariff environment with minimal impact on business [50] - The outlook for Q2 is positive, with expectations for revenue between $135 million and $145 million and EPS projected between $0.21 and $0.25 [33][34] - Management noted strong design wins and increasing backlog, indicating a solid foundation for growth in 2025 [24][78] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million during Q1 [22][31] - The upcoming Investor Day on May 13 will provide further insights into future growth plans and competitive advantages [24][85] Q&A Session Summary Question: How is the company addressing customer exposure in uncertain times? - Management indicated that there has been no change in demand, with expectations for Q2 being higher than previously anticipated [42][44] Question: Any updates on the $75 million capacitor order for the energy market? - The company received a substantial prepayment for this order, indicating strong customer commitment and no expected delivery impacts [51][52] Question: What is the expected trajectory for gross margins in Q2 and Q4? - Management expects significant sequential improvement in gross margins, driven by increased capacity utilization and better customer mix [60][64] Question: Is there potential for gaining market share from competitors? - Management noted an increase in inquiries from customers looking for reliable supply sources, particularly in the industrial space [66][69] Question: Can you comment on bookings and receivables? - Bookings were strong, with a book-to-bill ratio above 1.15, and receivables were up due to timing of customer collections, not indicating any collection issues [73][79]

Knowles (KN) Q1 2025 Earnings Call April 24, 2025 04:30 PM ET Company Participants Sarah Cook - Vice President, Investor RelationsJeffrey Niew - President and Chief Executive OfficerJohn Anderson - SVP & CFOBob Labick - President Conference Call Participants Anthony Stoss - AnalystChristopher Rolland - Senior Equity Analyst Operator Well, good day, everyone, and welcome to the Q1 twenty twenty five Knowles Corporation Earnings Call. This call is being recorded. At this time, I would like to hand things over ...

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $132 million, at the high end of the guided range, with EPS of $0.18, also at the midpoint of guidance [11][19] - Gross margins for the MedTech and Specialty Audio segment were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins [19] - Precision Devices segment revenues were $73 million, flat compared to Q4, with gross margins at 35.7%, unchanged from the previous year [13][20] Business Line Data and Key Metrics Changes - MedTech and Specialty Audio revenue was $60 million, slightly up year-over-year but seasonally down from Q4 [11][19] - Precision Devices segment saw a flat revenue performance, with production challenges in the specialty film line being addressed [13][20] - The company expects year-over-year revenue growth to accelerate in Q2 2025, driven by strong demand in MedTech and Specialty Audio [12][17] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [7][8] - Inventory levels at distributors have normalized to 3-3.5 months, indicating increased order activity [34][52] - The company is seeing strong bookings trends across most end markets, particularly in Precision Devices [15][52] Company Strategy and Development Direction - The company is focused on growth in 2025, with strong design wins and increasing backlog across its product portfolio [17] - There is an emphasis on exploring acquisition opportunities while maintaining manageable debt levels [16][22] - The upcoming Investor Day will detail future growth plans and competitive advantages [17][60] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the tariff environment but believes the company is well-positioned for growth despite potential impacts [5][10] - The outlook for the MedTech and defense sectors remains strong, with essential devices expected to maintain demand [32][33] - Management anticipates a stronger second half of 2025, driven by improved capacity utilization and demand recovery [41][42] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million in Q1 2025 [16][22] - Capital spending is projected to be $7 million in Q2, with full-year capital spending expected to be 5% of revenues [24] Q&A Session Summary Question: Overall end market customer exposure and outlook - Management indicated no change in demand and higher expectations for Q2, particularly in essential devices like pacemakers and hearing aids [31][32] Question: Updates on the $75 million capacitor order - A substantial prepayment was received, indicating strong customer commitment with no expected delivery impacts [37] Question: Gross margin trajectory for Q2 and Q4 - Management expects significant sequential improvement in gross margins, projecting an exit range of 45% to 47% by year-end [40][44] Question: Potential for gaining market share from competitors - Management noted increased inquiries from customers considering switching suppliers due to tariff impacts, particularly in the industrial space [46][47] Question: Commentary on bookings and receivables - Bookings were strong, with inventory levels at distributors decreasing, indicating rising demand [52][56]