Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $57.5 million, up 12% year over year [5][10] - Adjusted net income for the quarter was $19.3 million, or $0.84 per diluted share, representing a 32% increase compared to $14.7 million, or $0.64 per diluted share, in the prior year [7][9] - Cash from operations was $6.9 million, while free cash flow was negative at $25.8 million, down $37.2 million year over year [10][16] Business Line Data and Key Metrics Changes - Surfactants and specialty products delivered double-digit adjusted EBITDA growth, while polymers adjusted EBITDA decreased slightly year over year [6][12] - Surfactant net sales were $430.3 million for the quarter, a 10% increase year over year, with sales volume growing 3% [12][13] - Polymer net sales were flat at $146.1 million, with a 7% increase in sales volume but a 7% decrease in selling prices [14][15] - Specialty product net sales increased by 11% to $16.8 million, primarily due to higher selling prices [15] Market Data and Key Metrics Changes - The company experienced double-digit volume growth in agricultural and oilfield end markets, while North American and European rigid polyol volume grew in low single digits [6][19] - Foreign currency translation negatively impacted net sales by 5% [13] Company Strategy and Development Direction - The company remains focused on customer acquisition, particularly in Tier two and Tier three markets, with over 400 new customers added in the first quarter [18][19] - The company is committed to developing next-generation rigid polyol technologies to enhance energy efficiency and cost performance [20] - The new Pasadena, Texas site is now operational, with expectations for full contribution in the second half of 2025 [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about delivering adjusted EBITDA and adjusted net income growth, as well as positive free cash flow in 2025 despite market uncertainties [22][23] - The company noted that the high interest rate environment continues to restrain growth in rigid polyol markets [6][19] Other Important Information - The effective tax rate was 20%, lower than the normal range of 24% to 26%, primarily due to favorable discrete items from a tax audit settlement [10][11] - The company paid $8.7 million in dividends during the first quarter and has increased its dividend for 57 consecutive years [8] Q&A Session Summary Question: Contribution of Pasadena facility - Management confirmed that the Pasadena facility is currently producing six products, with plans to produce over 60 products, and full contribution expected in 2026 [27][28] Question: Earnings contribution from Pasadena - Management indicated that Q2 is expected to show improvement but will still be negative, with positive contributions anticipated in Q3 and Q4 [32] Question: Decline in commodity consumer products - Management clarified that the decline is not due to intentional shifts but rather sluggish demand from consumer product customers [34][35] Question: Polymer business inventory costs - Management stated that high inventory costs were a drag on margins but are expected to improve in Q2 as those costs are cleared [36][37] Question: Down channel inventory levels - Management reported no significant overstocking in Q1 and noted strong volume growth continuing into April [43][44] Question: Customer mix and growth - Management confirmed that growth is coming from both Tier two and Tier three customers, as well as end market diversification [47][48] Question: Tariff impacts - Management indicated that while tariffs are a concern, most products are sourced and sold within regions, mitigating direct impacts [65][66] Question: Collaboration with customers - Management affirmed that collaborative work with customers continues without significant changes due to tariff announcements [68][70]