Financial Data and Key Metrics Changes - Consolidated net revenue for Q4 2025 was approximately $97.8 million, down 16.5% year-over-year [8] - Adjusted EBITDA for the fourth quarter was $15.6 million, a decrease of 41.8% [14] - Net loss for Q4 2025 was approximately $54.4 million or $12.24 per share, compared to a net loss of $35.7 million or $7.81 per share for Q4 2024 [19][20] Business Line Data and Key Metrics Changes - Net revenue for the radio broadcasting segment was $35.1 million, a decrease of 26.5% year-over-year [8] - Reach Media segment net revenue was $13.8 million, up 43.9% from the prior year, primarily due to event revenue from the Fantastic Voyage cruise [10] - Digital segment net revenues were down 19.6% to $14.7 million, driven by decreased direct revenue streams [10] - Cable television segment revenue was approximately $34.9 million, down 16.8%, with advertising revenue down 21.8% [11] Market Data and Key Metrics Changes - Local ad sales were down 19% against markets that were down 12.6%, while national ad sales were down 40.1% against a market decline of 29.2% [9] - The largest ad category for the quarter was services, which increased by 18.1%, primarily due to legal services [9] Company Strategy and Development Direction - The company completed a significant capital markets transaction, repurchasing a substantial amount of its 2028 notes at a discount and extending maturities to 2031 [6] - Focus remains on deleveraging the business and taking advantage of opportunities related to deregulation in the radio business [6][7] Management's Comments on Operating Environment and Future Outlook - The first quarter of 2026 started slower than expected, with current radio pacings down about 5% [5] - Management remains positive about operational changes and upcoming political events that may impact revenue [5] Other Important Information - The company recorded $55.3 million in non-cash impairment charges, with significant amounts attributed to the cable television segment [18] - Capital expenditures for the quarter were approximately $3.2 million [19] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without further inquiries [21][22]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenues of approximately $157 million, consistent with guidance, but decreased due to seasonality and budget exhaustion [10] - Adjusted EBITDA for Q4 was approximately $23 million, the highest quarterly adjusted EBITDA of the year, with an adjusted EBITDA margin of about 14% [10][11] - For the full year, corporate adjusted EBITDA loss was around $26 million, reflecting a structural rightsizing of G&A and a 12% decline in total headcount year-over-year [12] Business Line Data and Key Metrics Changes - Northeast MidCon revenue was essentially flat at $69.6 million, with an adjusted EBITDA margin expansion to 25.3% driven by gas-directed activity [11] - Dry gas revenue in the Northeast MidCon increased 5.3% quarter-over-quarter and 44% year-over-year [7][11] - Rockies revenue declined to $46.3 million, down approximately 9% sequentially, primarily due to weather and customer budget exhaustion [11] - Southwest revenue decreased about 10% to $50.9 million, attributed to budget exhaustion and reduced oil-directed activity [11] Market Data and Key Metrics Changes - The company noted a growing share of gas-levered revenue, with dry gas exposure increasing as a share of the portfolio [6][7] - The overall market environment remains challenging, with the Northeast MidCon and gas-focused basins showing momentum, while oil-directed basins like the Permian are experiencing a downturn [18][19] Company Strategy and Development Direction - The company continues to focus on higher margin, technically differentiated work while maintaining cost discipline and strategically deploying capital [6] - The capital allocation strategy for 2026 includes gross capital expenditures of approximately $40 million, down from $49 million in 2025, with a focus on maintenance CapEx [12][20] - The company is positioned to benefit from industry consolidation and capacity rationalization, as smaller competitors exit the market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive but measured outlook for 2026, expecting Q1 to be the low point for the year, with gradual improvement anticipated in gas-directed basins [18][19] - The company is monitoring the impact of the Middle East conflict on market conditions and rig counts, noting that operators are currently taking a wait-and-see approach [42][46] Other Important Information - The company ended Q4 with total debt of $258.3 million and available liquidity of approximately $56 million [13] - A proactive amendment to the indenture was made to provide covenant relief, allowing for a net leverage ratio of 4.5 times through March 31, 2027 [16] Q&A Session Summary Question: Strength in Northeast MidCon - Management noted a 6% increase in rig count across the Northeast MidCon segment and attributed the strength to sustained completion programs and robust demand [24][26] Question: Margin Improvement Factors - The margin improvement was attributed to a combination of product line mix, efficiencies, and cost reductions, with a focus on absorbing fixed costs [28][30] Question: CapEx and Cash Flow Outlook - The company is targeting gross capital spending of $40 million for 2026, reflecting a prudent approach given current market conditions [34][35] Question: Impact of Middle East Conflict - Management indicated that historical patterns suggest a 60-90 day lag in activity changes post-commodity price movements, and they are closely monitoring the situation [42][46] Question: U.S. Coiled Tubing Market - Management acknowledged attrition in the coiled tubing market and noted that while some players have exited, the market is currently balanced with sufficient supply [66][67]

Financial Data and Key Metrics Changes - Retail volume declined by 22.1% year-over-year, attributed to capital structure constraints rather than demand [7][25] - Total revenue decreased to $286.8 million, down 12% year-over-year, while average retail sales price increased by 7.1% to $20,634 [26] - Interest income rose to $64.2 million, up 3.1% year-over-year, despite lower sales volume [27] - Loss per share for the quarter was $9.25 on a GAAP basis, with an adjusted loss per share of $1.53 [56] Business Line Data and Key Metrics Changes - Retail units sold decreased to 10,275 units, driven by lower inventory availability, a smaller footprint, and Winter Storm Fern [25][26] - Gross profit per retail unit sold increased by 8.8%, indicating improved cost discipline [27] - SG&A expenses totaled $51.5 million, or 23.1% of reported sales, with adjusted SG&A at $48.7 million or 21.9% of sales [36] Market Data and Key Metrics Changes - Website traffic increased by 4% year-over-year, indicating sustained customer interest [9] - The subprime auto capital markets have been operating in a more measured environment since last fall, following disruptions in the industry [10][11] Company Strategy and Development Direction - The company is focused on completing its capital structure transformation, including securing a revolving warehouse facility to enhance inventory purchasing capabilities [18][19] - Operational improvements include executing a cost control plan that resulted in the consolidation of 18 locations, aimed at concentrating resources in stronger performing areas [20][21] - The company is committed to maintaining a leaner cost structure and aligning expenses with revenue [38][64] Management's Comments on Operating Environment and Future Outlook - Management emphasized that the volume decline was due to capital structure issues, not a lack of demand, and expressed confidence in the recovery of sales as inventory levels improve [57][64] - The impact of Winter Storm Fern was significant, affecting operations and customer payment behaviors, but management noted a recovery in collections post-storm [22][44] - The company is preparing for tax season demand, with early indicators showing improved deal structures and collections [78][106] Other Important Information - The company completed a $161.3 million asset-backed securitization transaction, which was a significant milestone in a challenging market [12][15] - The allowance for credit losses increased to 25.53% of finance receivables, reflecting portfolio dynamics and macroeconomic pressures [47] Q&A Session Summary Question: What are the sticking points in the warehouse negotiations? - Management indicated that the timing is structural and requires alignment across multiple stakeholders, which is complicated by the current market environment [74][75] Question: Are you seeing effects from tax refunds this year? - Early indicators show improved deal structures and collections, with tax seasonal payments being collected at a high rate [78] Question: How would you allocate the 22% unit decline among the factors? - The inventory levels were the largest driver of the decline, followed by the impact of Winter Storm Fern [85][88] Question: How have delinquencies trended absent the storm? - By mid-February, delinquencies had significantly decreased, indicating a return to expected ranges [91] Question: What is the expected run rate for SG&A going forward? - The company expects to see savings from recent store consolidations reflected in the fourth quarter, with a target SG&A of around $45-$46 million [96]

Financial Performance - In 2025, gold production increased by 22% year-over-year, with gold revenue reaching $909 million, up 82% from $499 million in 2024 [3][6] - Adjusted EBITDA was $464 million, a 185% increase from $163 million in 2024, reflecting strong leverage to higher gold prices [3][6] - Adjusted net earnings were $241 million or $1.28 per share, up from $56 million or $0.35 per share in 2024, marking a 265% increase [3][6] - The company generated $127 million in free cash flow, with a cash balance of $392 million at year-end, up from $252 million in 2024 [7][9] Business Line Performance - Segovia produced 228,000 ounces of gold in 2025, a 21% increase from 188,000 ounces in 2024, driven by improved milling rates and higher gold grades [10][14] - Marmato's development is ahead of schedule, with significant progress in the bulk mining zone and construction of the CIP plant [17][20] - Segovia's all-in sustaining cost (AISC) was $1,534 per ounce, up 3% year-over-year, while total AISC was $1,705 per ounce, reflecting a 13% increase [14][15] Market Data - Gold prices increased by 48% in 2025, significantly impacting revenue and margins [3][15] - The company expects production guidance for 2026 to be between 300,000 and 350,000 ounces, representing over 25% growth year-over-year [4][26] Company Strategy and Industry Competition - The company aims to grow production to 500,000 ounces in the near term, with a long-term goal of reaching 1 million ounces annually [26] - The transition to the main board of the New York Stock Exchange is expected to enhance visibility among institutional investors and improve trading liquidity [23][25] Management Commentary - Management expressed confidence in the operational ramp-up and the successful execution of growth projects, including the Segovia and Marmato expansions [3][26] - The company highlighted its strong balance sheet and cash flow position, which supports its growth strategy [25] Other Important Information - The company completed the acquisition of the remaining 49% interest in Soto Norte for $80 million and reached an arbitration settlement with the Colombian government [26] - The construction of the Marmato CIP plant is on track for first gold production in Q4 2026, with a staged ramp-up expected [20][26] Q&A Session Summary Question: Update on Segovia ramp-up and throughput expectations - Management indicated that the ramp-up is going well, with expectations to reach a steady state of 3,000 tons per day by Q4 2026 [29][30] Question: Guidance on Q1 production - The company expects to maintain throughput around 2,600 tons per day in Q1 [31] Question: Growth capital for Marmato and other projects - The estimated total cost for Marmato is approximately $400 million, with a 2026 budget of $220 million [35][43] Question: Optimism about ramp-up of the CIP plant - Management expressed confidence in achieving the ramp-up milestones and believes they are realistic and achievable [45]

Financial Data and Key Metrics Changes - Fourth quarter revenues were $22 million, a 9.4% decline compared to the prior year, driven by lower billable hours and weak demand due to cost pressures on property management companies [10] - Gross profit in the fourth quarter was $7.7 million, down from $8.7 million in the prior year, with a gross profit margin of 35% [10] - SG&A expenses for the fourth quarter were $9.3 million, down from $10.5 million in the prior year [11] - Fourth quarter adjusted EBITDA was a loss of $947 thousand, an improvement from a loss of $1.6 million in the prior year [11] - The company reported a fourth quarter GAAP net loss from continuing operations of $0.11 per diluted share [12] Business Line Data and Key Metrics Changes - The company is now solely focused on property management staffing after the sale of the professional division, which has allowed for a debt-free status and a strong cash position [4] - Ongoing G&A costs are estimated to be around $12 million, with public company costs at approximately $2 million [5] Market Data and Key Metrics Changes - Customer feedback indicates a more optimistic sentiment this year compared to the previous year, with a willingness to spend on staffing and PropTech support services [27] - Top-line sales through the first two months of the current year are slightly ahead of 2025, indicating a positive start [32] Company Strategy and Development Direction - The company is transitioning its website to BGStaffing.com to improve SEO performance and brand positioning [7] - A key strategic initiative includes expanding into the PropTech support market through a partnership with Yardi, enhancing the company's positioning in multifamily and commercial property management staffing [8] - The company is focused on optimizing AI investments to improve client and candidate experiences [9] Management Comments on Operating Environment and Future Outlook - Management expressed that the current market environment is more favorable than a year ago, with customers showing increased interest in spending on services [27] - There is an expectation of mid-single-digit growth in full-year sales for 2026 compared to 2025 [34] Other Important Information - The company has implemented significant cost-cutting measures, resulting in improved EBITDA loss despite lower sales [11] - The company plans to finalize the settlement of a $5.2 million escrow receivable from the sale of the professional division during Q2 [12] Q&A Session Summary Question: Can you walk us through the Yardi relationship and its implications for the business? - The Yardi partnership allows the company to fill gaps in implementation and training for property management customers, serving as a referral base for independent consultants [17][18] Question: What is the potential size of the Yardi business? - The potential is significant as Yardi is widely used in the property management space, with opportunities at both corporate and on-site levels [19][20] Question: How do you characterize the overall market environment today? - There is a more optimistic sentiment among customers, with plans to leverage staffing and PropTech support services [27] Question: What are the ongoing SG&A costs expected to be? - Ongoing G&A costs are estimated at around $12 million, with the fourth quarter SG&A number being higher due to transitional costs [23][24] Question: How do you expect growth to unfold in 2026? - The company expects growth in every quarter of 2026, driven by both market conditions and improved execution [59][62]

Financial Data and Key Metrics Changes - Gold production increased by 22% year-over-year, with gold prices rising by 48%, resulting in gold revenue of $909 million, up 82% from $499 million in 2024 [3][6] - Adjusted EBITDA reached $464 million, a 185% increase from $163 million in 2024, demonstrating significant leverage to higher gold prices [6][3] - Adjusted net earnings were $241 million or $1.28 per share, up from $56 million or $0.35 per share in 2024, reflecting a 265% increase [3][6] - The company generated $127 million in free cash flow, transitioning to generating free cash flow while funding growth initiatives [8][9] Business Line Data and Key Metrics Changes - Segovia produced 228,000 ounces of gold, a 21% increase from 188,000 ounces in 2024, driven by a 17% increase in milling rates [10][11] - Marmato exceeded guidance with steady performance, and the development of the bulk mining zone is ahead of schedule [4][16] - Segovia's all-in sustaining cost (AISC) was $1,534 per ounce, up just 3% year-over-year, while total AISC was $1,705 per ounce, up 13% from 2024 [13][14] Market Data and Key Metrics Changes - The company expects production guidance for 2026 to be between 300,000 and 350,000 ounces, representing over 25% growth year-over-year [4][3] - At $4,400 gold, Segovia is projected to generate $650 million in all-in sustaining margin this year [5] Company Strategy and Development Direction - The company aims to grow production to 500,000 ounces in the near term, with plans to advance Toroparu and Soto Norte to create a pathway to one million ounces per year [24] - The uplisting to the main board of the New York Stock Exchange is expected to enhance visibility among institutional investors and improve trading liquidity [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production milestones and highlighted the strong operational performance and financial results [24][44] - The company remains well-positioned to generate robust cash flows to fund growth initiatives organically, supported by a strong balance sheet and liquidity [23][9] Other Important Information - The company completed the Segovia processing plant expansion on time and on budget, and reached an amicable arbitration settlement with the Colombian government [24] - The construction of the CIP plant at Marmato is progressing well, with the first gold pour expected in Q4 2026 [19][18] Q&A Session Summary Question: Update on Segovia ramp-up and throughput expectations - Management indicated that the ramp-up is going well, with expectations to reach a steady-state of 3,000 tons per day by Q4 2026 [27][28] Question: Guidance for Q1 production - The company is running around 2,600 tons per day, consistent with the end of Q4 [29] Question: Growth capital expectations for Marmato and other projects - The total cost for Marmato is projected to be around $400 million, with a current budget of $220 million for 2026 [33][42] Question: Optimism about ramp-up of the CIP plant - Management believes the milestones for ramp-up are realistic and achievable [44]

Financial Data and Key Metrics Changes - The headline EBITDA for Q4 2025 was CAD 78 million, impacted by a CAD 13 million retroactive adjustment for the Fargo project [3] - Combined revenue for the quarter was CAD 344 million, with a target of CAD 1.6 billion for 2026, which would be a company record [4] - Adjusted earnings per share for the quarter was a loss of CAD 0.14, reflecting the EBIT generated by the business net of interest and taxes [8] - Free cash flow for Q4 was CAD 57 million, contributing to a total of CAD 103 million in the second half of 2025 [9] - Net debt levels ended at CAD 878 million, a decrease of CAD 26 million in the quarter [9] Business Line Data and Key Metrics Changes - Australia revenue for Q4 was AUD 176 million, a record for the region despite adverse weather conditions [3] - The oil sands region also reported solid top-line numbers for the quarter [3] - Employee exposure hours increased from 6.3 million in 2024 to 7.1 million in 2025, indicating a growing workforce of 3,300 employees [4] Market Data and Key Metrics Changes - Australia and Canada combined revenue increased by 10% in 2025, with Australia up 17% and Canada up 4% [4] - The company is tracking a total bid pipeline of approximately CAD 12.6 billion, with CAD 4.6 billion currently in active tender [18] Company Strategy and Development Direction - The company plans to close the acquisition of Iron Mine Contracting (IMC) in Q2 2026, which is expected to enhance its capabilities in Australia [11][12] - Operational priorities for 2026 include safety, optimizing workforce mix, and completing the Fargo Moorhead Diversion project [13] - The company aims to scale into a tier one contractor platform in Australia and expand mining services across Canada and the U.S. [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated cost estimates for the Fargo project, expecting completion in 2026 [6] - The company anticipates another year of growth in 2026, with a stable first half performance and meaningful improvements expected in the second half [18] - Management highlighted the importance of operational efficiencies and improved equipment availability for margin improvements [33] Other Important Information - The company has a backlog of approximately CAD 3.9 billion, with CAD 1.2 billion already secured for 2026 [18] - The company is focused on maintaining a net debt leverage target of 2.0x, with a long-term goal of 1.5x [76] Q&A Session Summary Question: Can you provide more color on the total bid pipeline and active tender value? - The total bid pipeline is CAD 12.6 billion, spread across various projects including defense spending and water projects in the U.S. [24] Question: Is there any risk to additional costs for the Fargo job? - Management sees limited risk in the remaining 15% of the project, with only CAD 5 million contemplated from Fargo at reduced margins [25] Question: Can you comment on the strategic review in the oil sands and outlook for margins? - The oil sands market remains strong, with opportunities for additional revenue and margin improvements through better equipment utilization [33] Question: Can you provide an update on the IMC acquisition timeline? - The delay in closing is due to regulatory review, but there is no risk associated with it [38] Question: What are the expected savings from workforce optimization initiatives? - The company is targeting a 3%-5% savings through reducing subcontractors and optimizing the workforce [51] Question: How does the company plan to manage risks in infrastructure projects? - The company will focus on projects where it has control over risks and will consider subcontracting for work outside its expertise [59] Question: What is the expected contribution from nation-building projects in Canada? - Any contributions from these projects are expected to be realized in 2027 and beyond [92]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $21.5 million, a 20% increase year-over-year from $17.9 million in Q4 2024 [7][21] - Full-year revenue for 2025 reached $86.1 million, growing 12.5% compared to the previous year, exceeding high single-digit guidance [21] - Gross margin in Q4 2025 increased to 50.4% from 41.2% in Q4 2024, reflecting a favorable product mix [9][22] - Adjusted EBITDA for Q4 2025 was $4.7 million, a 78% increase year-over-year, with an adjusted EBITDA margin of 22% [10][30] - Non-GAAP fully diluted adjusted EPS for Q4 2025 was $1.17, up from $0.61 in Q4 2024 [11][29] - The company ended 2025 with a record cash position of $22.8 million, significantly up from $7.1 million at year-end 2024 [11][34] Business Line Data and Key Metrics Changes - The BKR Series radios drove revenue growth, particularly the BKR9000, which saw a 2.5 times increase in shipments in 2025 compared to 2024 [18] - Operating income for Q4 2025 was $4.2 million, with an operating margin expansion from 12.3% in the previous year to 19.7% [24] - Full-year operating income more than doubled to $16 million from $7.8 million in 2024, with operating margin expanding to 18.6% [25] Market Data and Key Metrics Changes - The company experienced strong order volumes from state and local agencies, particularly in Tier 2 and Tier 3 markets [8] - The BKR9000 multiband radio's adoption contributed to gross margin improvements and overall revenue growth [16] Company Strategy and Development Direction - The company is transitioning from Vision 2025 to Vision 2030, aiming to double revenue to $170 million and achieve a gross margin of 60% by 2030 [43] - The upcoming BKR9500 radio is expected to enhance existing agency relationships and expand the customer base [39] - The company plans to prioritize investments in its core portfolio and consider acquisitions that align with its strategic goals [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to achieve Vision 2030 objectives, emphasizing the importance of customer satisfaction and shareholder value [36] - The company anticipates continued revenue growth and margin expansion, with guidance for 2026 set at a minimum of $90 million in revenue and a gross margin of 50% or greater [37][38] Other Important Information - The company has established a stock repurchase program and repurchased approximately 19,000 shares during the quarter [34] - The effective tax rate for 2025 was 16%, with expectations for normalization in 2026 [27] Q&A Session Summary Question: Sales cycle length and customer pushback on BKR9000 - Management noted that expansion is primarily from new orders, with positive feedback on the BKR9000's quality and ergonomics, and no pushback reported [50][51] Question: Contribution of BKR9500 to revenue - Management expects substantial revenue from the BKR9500, but also significant contributions from continued sales of the BKR9000 [52] Question: Capital allocation plans - The priority is to invest in core products, with potential acquisitions to drive further adoption of radios, and returning capital to shareholders if no better opportunities arise [55][56] Question: R&D expenses for BKR9500 - Management indicated that R&D expenses will continue, focusing on both development and sustaining the BKR9500 [60] Question: Long-term pricing strategy - Management aims to increase market share before considering price increases, with a focus on maintaining competitive pricing [63][64]

Financial Data and Key Metrics Changes - Net sales increased by 5.9% to $10.9 billion in Q4 compared to $10.3 billion in the previous year [6] - Same-store sales rose by 4.3% during the quarter, driven by increased customer traffic and average basket size [6][7] - Gross profit as a percentage of sales was 30.4%, an increase of 105 basis points, attributed to reduced shrink and higher inventory markups [11] - Operating profit for Q4 increased by 106% to $606 million, with an operating margin increase of 270 basis points to 5.6% [12] - EPS for the quarter increased by 122% to $0.93, exceeding expectations [13] Business Line Data and Key Metrics Changes - Positive comp sales growth was observed across all categories: consumables, seasonal, home, and apparel [7] - Non-consumable sales outpaced consumable sales for the fourth consecutive quarter, indicating strong performance in this area [7][9] - The Value Valley offering, consisting of over 500 items priced at $1, saw a comp sales increase of 17.6% [9] Market Data and Key Metrics Changes - The company grew market share in both consumable and non-consumable product sales [6] - Customer traffic increased for three consecutive quarters, reflecting the company's essential role in providing value [7][10] - The company serves approximately 75% of the U.S. population with nearly 21,000 stores located within five miles [10] Company Strategy and Development Direction - The company focuses on four strategic growth pillars: enhancing customer experience, elevating the brand, driving enterprise-wide efficiencies, and extending reach [23] - Plans include introducing a new store format and expanding non-consumable offerings, aiming for a 20% penetration in non-consumables by 2029 [25] - The company aims to open 450 new stores in 2026, continuing to serve rural communities [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic pressures and consumer behavior uncertainties [17][19] - For 2026, the company expects net sales growth of 3.7%-4.2% and same-store sales growth of 2.2%-2.7% [17] - Management highlighted the importance of value for consumers, particularly in the current economic climate [46] Other Important Information - The company generated significant cash flow from operations of $3.6 billion in 2025, an increase of 21.3% [14] - Capital spending for 2026 is expected to be in the range of $1.4 billion-$1.5 billion [18] - The company plans to continue its dividend payment of 59 cents per share for Q1 2026 [18] Q&A Session Summary Question: Can you speak to the consistency of comps in Q4 and trends in Q1? - Management noted strong comp performance in Q4, with November and January being particularly strong, and indicated that value was a key driver for both consumables and non-consumables [42][45] Question: What are the margin drivers for 2026? - Management expects continued gross margin expansion, albeit at a lesser extent than in 2025, with improvements in shrink and damages contributing positively [49][53] Question: How much inflation impacted Q4 and expectations for 2026? - Inflation was noted to be in low single digits for both consumables and non-consumables, with a LIFO provision impact of $45 million in Q4 [67] Question: What benefits have come from SKU reductions? - Over 1,500 SKUs have been removed, leading to improved inventory optimization and better in-store conditions, with plans for further reductions in 2026 [70][72]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenues of $153 million, unchanged from the previous quarter and up 6% year-over-year, driven by an 8% increase in charter time charter equivalent rates, partially offset by lower utilization [3][12] - Adjusted EBITDA for Q4 was $73 million, down from $77 million in Q3, but similar to the same period last year [3][12] - The company reported a record annual net income of $100.2 million for 2025, with basic earnings per share of $0.28 and adjusted basic earnings per share of $0.32 [17] Business Line Data and Key Metrics Changes - Average time charter rates in Q4 were $30,647 per day, about $300 less than the ten-year high achieved in Q3, but 8% above the same period last year [4][12] - Utilization was 90% in Q4, slightly up by 0.7% compared to Q3 but down 2.2% year-over-year [12][13] - Throughput at the joint venture ethylene export terminal was approximately 192,000 tons in Q4, down from 270,000 tons in Q3 but up 20% year-over-year [5][16] Market Data and Key Metrics Changes - The company noted that European demand is driving U.S. ethylene exports, with signs of emerging demand from Asia [5] - The geopolitical situation in the Middle East has created uncertainty but also commercial opportunities, with expectations for both TC rates and utilization to remain strong [6][40] Company Strategy and Development Direction - The company has increased its capital return to 30% of net income and raised the fixed dividend from $0.05 to $0.07 per share, reflecting a commitment to returning capital to shareholders [3][41] - The company is focusing on fleet renewal by selling older vessels and acquiring new ones, with plans to continue engaging buyers for older tonnage [6][45] - The company is also exploring opportunities in emerging markets, such as Venezuela, and expects to see increased demand for U.S. ethylene due to geopolitical disruptions [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position, with ample liquidity and a well-managed interest rate risk [47] - The ongoing war in the Middle East is seen as a source of uncertainty but also as an opportunity for increased demand for U.S. exports [47][48] - The company anticipates that growth in U.S.-based NGL production will likely exceed global vessel supply growth, supporting a positive demand outlook [48] Other Important Information - The company achieved attractive financing for two of its new buildings at margins of 150 basis points, the lowest ever for Navigator [4] - The company has a strong liquidity position of $246 million, despite significant capital expenditures and loan repayments [18][19] Q&A Session Summary Question: What might be the impact from the larger segments here regarding the Middle East situation? - Management indicated that while VLGCs may ballast to the U.S. due to disruptions, Navigator's operations are not directly impacted as they do not compete in the same trades [50][51] Question: How is the chartering strategy being adjusted in light of Middle East volatility? - Management stated that they aim to maintain a balance between term and spot charters, typically covering 30%-50% of their fleet [58][59] Question: Have you seen increased interest from potential customers for the ethylene export terminal since the war in Iran started? - Management confirmed increased interest for U.S. ethylene, with both contract and spot sales occurring in March [76][77]