Financial Data and Key Metrics Changes - Revenue increased by 34% to over $150 million in 2024, with net income growing by 139% compared to 2023 [8][17] - Fourth quarter revenue rose by 29% to $41 million compared to Q4 2023, with gross margin increasing from 19.7% in 2023 to 21.7% in 2024 [8][15] - Adjusted EBITDA margin improved from 9.7% in 2023 to 12.2% in 2024, with earnings per share on a fully diluted basis increasing by 658% to $0.32 in Q4 2024 [8][16] Business Line Data and Key Metrics Changes - Heat exchangers revenue increased from $13.3 million in Q4 2023 to $16.6 million in Q4 2024 [21] - APU segment revenue surged from $9.2 million in Q4 2023 to $30 million in Q4 2024, marking a 42% increase [21] - Trading and leasing revenue rose from $2.2 million in Q4 2023 to $3.3 million in Q4 2024 [22] Market Data and Key Metrics Changes - North America accounted for 70% of total revenues, with Europe contributing 11% [27] - The backlog increased to $429 million at the end of 2024, up from $406 million at the end of 2023, indicating strong future growth potential [11][28] Company Strategy and Development Direction - The company is focusing on improving profitability and expanding margins while launching new capabilities, particularly in APUs [9][14] - Strategic sourcing plans have been implemented to address supply chain challenges and ensure inventory availability for future growth [12][13] - The company aims to enhance trading and leasing capabilities, leveraging in-house MRO to gain a competitive advantage [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand in the MRO market, despite ongoing supply chain challenges [31][52] - The company anticipates continued growth in 2025, driven by new contracts and increased orders [33][91] - Management highlighted the importance of focusing on annual growth rather than quarterly fluctuations due to the unpredictable nature of the MRO business [88][90] Other Important Information - Interest expenses are projected to be around $2 million for 2024, with tax expenses expected to rise in 2025 [25][26] - The company is primarily focused on the commercial aviation sector, with military revenues constituting only 18% of total revenue in 2024 [26] Q&A Session Summary Question: Can you highlight what you're seeing from suppliers regarding the ongoing unstable supply chain? - Management noted that while some product lines have stabilized, challenges remain with parts delivery and long lead times, necessitating strategic inventory investments [38][40] Question: What is the demand side for the new APU capabilities in 2025? - Management indicated strong demand with many RFPs in progress, focusing on small to medium-sized airlines for new contracts [46][48] Question: What is the current book-to-bill ratio and backlog conversion time? - The book-to-bill ratio is over one, with a significant portion of backlog expected to convert to revenue within 12 to 18 months [58][60] Question: What are the pricing trends for services? - Pricing for contractual customers is tied to predetermined indexes, while non-contractual pricing is more variable based on market conditions [82][84]