Algorhythm Holdings (RIME) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Gary Atkinson - CEOAlex Andre - CFO & General Counsel Conference Call Participants Edward Woo - Director of Research & Senior AnalystNone - Analyst Operator Good day, everyone, and welcome to Algorithm Holdings First Quarter twenty twenty five Financial Results Earnings Call. My name is Paul, and I will be your operator. As a reminder, today's call is being recorded. We have a brief safe harbor, and then we'll get ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $8,600,000, representing a 9% increase from the same period last year [5][12] - Net loss for Q1 2025 was $4,200,000 or $0.47 per share, compared to a net loss of $10,400,000 or $2.88 per share for the prior year [15] - Adjusted EBITDA decreased from $4,600,000 in Q1 2024 to $4,400,000 in Q1 2025 [15][16] Business Line Data and Key Metrics Changes - Ameluz sales increased by $500,000 due to a higher unit price and the launch of the RotoLED XL lamp, which generated $200,000 in sales [12] - Total operating expenses decreased to $13,100,000 in Q1 2025 from $13,400,000 in Q1 2024 [12][13] - Cost of revenues decreased by $900,000 or 22.1% compared to last year, attributed to a reduced cost structure under the Ameluz license [13] Market Data and Key Metrics Changes - The company achieved a significant milestone with the granting of a patent for a new formulation of Ameluz, providing protection until December 2043 [6][7] - The enrollment of the final patient in the Phase three clinical trial for Ameluz was announced, aiming to extend the label for treatment beyond the face and scalp [8] Company Strategy and Development Direction - The company aims to achieve record revenues in 2025 without increasing costs, supported by past investments and sales force effectiveness [5] - Future goals include expanding Ameluz's applications to treat superficial basal cell carcinoma and moderate to severe acne, addressing significant medical needs [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving breakeven as quickly as possible, highlighting improved gross profit and reduced operating expenses [11] - The company is committed to exploring additional applications for Ameluz beyond actinic keratosis, indicating a proactive approach to growth [9] Other Important Information - Cash and cash equivalents as of March 31, 2025, were $1,800,000, down from $5,900,000 as of December 31, 2024 [16] - Inventory on hand was $6,500,000 compared to $6,600,000 as of December 31, 2024 [16] Q&A Session Summary Question: How many LAMP units were sold in Q1 2025? - The company placed 18 XL lamps in Q1 2025 [19][20] Question: Is there any sales force attrition affecting expenses? - There has been some turnover, but the company is committed to reorganizing the team for efficiency [24] Question: What is the status of reimbursement for the three-tube indication? - The company has ensured that Medicare covers the three-tube indication, with no reported refusals from doctors [29]

BIO-key International (BKYI) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants William Jones - Senior VPMichael DePasquale - Chairman & CEOCecilia Welch - CFO Conference Call Participants Jack Vander Aarde - SVP & Senior Research AnalystNone - Analyst Operator Good morning, everyone. Thank you for standing by, and welcome to BIO key International's First Quarter twenty twenty five Conference Call. During management's prepared remarks, all participants will be in listen only mode. Afterward ...

SWK Holdings (SWKH) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Susan Xu - Director - Investor RelationsJody Staggs - CEO & PresidentAdam Rice - CFO Conference Call Participants None - Analyst Operator Day, everyone. Welcome to the SWK Holdings First Quarter twenty twenty five Conference Call. At this time, all participants have been placed on a listen only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over ...

Stran & Company (SWAG) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Alexandra Schilt - Vice PresidentAndy Shape - Co-Founder, President & CEODavid Browner - Chief Financial OfficerRukun Duggal - Investment Partners Conference Call Participants None - Analyst Operator Greetings. Welcome to the Strand and Company First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Ple ...

Bit Digital (BTBT) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Cameron Schnier - Head of Investor RelationsSamir Tabar - Chief Executive OfficerErke Huang - CFO & DirectorBenjamin Lamson - Head of RevenueBilly Krassakopoulos - CEOMike Grondahl - Head of Equities & Director of Research Conference Call Participants George Sutton - Partner & Senior Research AnalystBrian Dobson - Managing Director & Senior Research AnalystNick Giles - Senior Research AnalystJoe Gomes - Senior Generalist ...

Financial Data and Key Metrics Changes - For Q1 2025, the company achieved a 52.4% year-over-year revenue increase, reaching approximately $28.7 million, up from $18.8 million in Q1 2024 [4][12] - Gross profit rose 51.1% to $8.5 million, representing 29.6% of sales, compared to $5.6 million or 29.8% of sales in Q1 2024 [5][13] - The net loss for Q1 2025 was approximately $400,000, an improvement from a loss of $500,000 in Q1 2024 [17] Business Line Data and Key Metrics Changes - The core Strand segment saw an 11.2% organic revenue growth, with sales increasing to approximately $20.9 million for Q1 2025 from $18.8 million in Q1 2024 [12][13] - The SLS segment, which includes the former Gander Group business, generated approximately $7.8 million in sales for Q1 2025, up from zero in Q1 2024 due to the acquisition [12][14] - Gross profit margin for the Strand segment increased to 32.4% in Q1 2025 from 29.8% in Q1 2024, while the SLS segment had a gross profit margin of 21.8% [14] Market Data and Key Metrics Changes - The company is expanding its global manufacturing footprint to mitigate tariff uncertainties, including partnerships in Vietnam, Cambodia, Taiwan, India, and Bangladesh [9] - The company is addressing global trade dynamics and tariff risks, which have been fluctuating significantly [10][36] Company Strategy and Development Direction - The company aims to accelerate organic growth, expand margins, and drive sustained profitability in 2025 [9][20] - The integration of Gander Group assets is expected to enhance customer services and create new revenue channels [7][10] - The successful launch of the NetSuite ERP system is enhancing operational efficiency and scalability [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth and operational excellence in 2025 [10][20] - The company is proactively managing tariff risks and maintaining strong relationships with customers and vendors [36][40] Other Important Information - The company ended Q1 2025 with approximately $12.2 million in cash and no long-term debt, reflecting a strong liquidity position [18] - Operating expenses increased 43.6% to approximately $9 million, but as a percentage of sales, they decreased to 31.4% [15][16] Q&A Session Summary Question: Will accounting and compliance costs decrease in 2025? - Management indicated that significant expenses related to the re-audit process should decrease in 2025, with Q1 costs around $800,000 [22][23][24] Question: Are there plans to restart a share buyback? - Management confirmed plans to reestablish a share buyback program, with approximately $6 million remaining from an initial $10 million authorization [25] Question: Can you explain the drop in cash related to the rewards program? - The drop in cash was attributed to the execution of a loyalty rewards program, where $5 million worth of prepaid debit cards were issued [26][27] Question: Will the company report ongoing versus one-time expenses? - Management confirmed plans to report adjusted EBITDA that separates ongoing public expenses from one-time costs related to audits and acquisitions [32][33] Question: Is the increase in inventory related to tariffs? - Management clarified that the increase in inventory is a natural business cadence, with most inventory purchased on behalf of customers [34][36]

Financial Data and Key Metrics Changes - The company reported a normalized EBITDA of $266 million for the first quarter of 2025, demonstrating a solid financial start to the year [4] - The company reaffirmed its normalized EBITDA guidance for 2025 at $1.01 billion, indicating confidence in its financial resilience despite market volatility [8][13] Business Line Data and Key Metrics Changes - Approximately 90% of the company's EBITDA is contracted over the next seven years, which mitigates commodity price and volumetric risks [7] - The company successfully completed the pipeline scope of the Blackrod Connection project, contributing to its operational capabilities [5] Market Data and Key Metrics Changes - The company expects to maintain its contractual commitments of 585,000 barrels per day despite operational pressure restrictions due to the Milepost 171 incident [10][71] - The company has observed headwinds against uncontracted volumes due to increased pipeline egress capacity and tariff uncertainties [43][46] Company Strategy and Development Direction - The company is focused on maintaining a risk-managed approach to capital allocation while pursuing growth opportunities that leverage existing infrastructure [17] - The management emphasized the importance of pipeline integrity and safety, committing to ongoing investments in integrity programs [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash flows due to highly contracted business, despite challenges from the Milepost 171 incident [22] - The company is committed to providing transparent updates to stakeholders as it learns more about the incident and its implications [16] Other Important Information - The company has mobilized over 300 resources in response to the Milepost 171 incident, successfully containing environmental impacts and restoring operations [9][10] - The management highlighted that insurance policies are expected to cover most costs associated with the incident [10][40] Q&A Session Summary Question: Can you elaborate on the range of outcomes post-incident? - Management emphasized that 90% of EBITDA is contracted, reducing risk on the base business, and they are working closely with regulators to assess maintenance activities [21][22] Question: What are the learnings from the incident for future prevention? - Management stated that pipeline integrity and safety are top priorities, with significant investments made in inline inspections and integrity programs [24][25] Question: What is the expected duration of pressure restrictions? - Management indicated it is too early to speculate on the timeframe for pressure restrictions, as investigations are ongoing [30][32] Question: How will the incident impact leverage and costs? - Management expects all costs related to the incident to be covered by insurance or variable tolls, maintaining the debt to EBITDA ratio [39][40] Question: What is the outlook for uncommitted volumes? - Management noted that while there are headwinds against uncontracted barrels, the base business remains stable due to high contract commitments [43][46] Question: What is the long-term growth outlook? - Management highlighted the Blackrod project as a key contributor to future EBITDA growth, with expectations for tightening egress volumes in 2026 [49][50] Question: What is the company's stance on potential asset sales? - Management confirmed that all assets are core and there are no current plans for asset sales, but they remain open to future opportunities [57][58] Question: How is the company responding to market conditions post-election? - Management expressed optimism about the regulatory environment and its impact on capital allocation decisions [53][54]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, reflecting the impact of the April 2024 halving event and increased network difficulty [20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark to market loss on digital asset holdings [23] - GAAP net loss per share was $0.32, compared to earnings of $0.43 per share in Q1 2024 [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year and 26% sequentially, with production declining 80% year over year to 83 bitcoins [5][20] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [21] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [6] - The market value of digital asset positions appreciated on a mark to market basis, with Bitcoin and Ethereum prices increasing by 25% and 40% respectively since the quarter end [24] Company Strategy and Development Direction - The company is focused on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [11][12] - The company aims to pursue nondilutive financing structures to support the expansion of its HPC platform [26] - The acquisition of a 95-acre property in North Carolina is intended for data center development, with a robust pipeline of over 500 megawatts of potential capacity under evaluation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to market conditions but expressed confidence in the growth of cloud services and colocation segments [5][19] - The company remains optimistic about securing large contracts with annualized revenue potential above $100 million [11] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and execute growth strategies [28] Other Important Information - The company raised approximately $10 million through its ATM program during the first quarter and an additional $48 million subsequent to the quarter end [27] - The company sold approximately $32 million worth of Bitcoin holdings during the quarter to help fund growth [28] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebrand has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [32][33] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from hyperscalers and medium-sized NeoClouds for capacity, with updates expected in the coming months [40] Question: Reason for customer contract start date shift - The shift in start date was due to internal product development schedule changes, and the company is prepared to utilize the GPUs for other contracts if necessary [44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity across both Canada and the US, focusing on retrofitting existing sites for efficiency [52][54] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [60][62] Question: Gross margin profile changes and GPU procurement strategy - The company aims to increase margins by spreading operating lease costs over a larger revenue base and continues to minimize speculative procurement risks [71][78]

Financial Data and Key Metrics Changes - For FY 2024, the company achieved net sales of $22.3 billion, with a comparable sales decline of 0.9% versus 2023, an improvement of 510 basis points [15] - GAAP diluted earnings per share were $2.07, while adjusted diluted earnings per share were $2.64 [15] - Operating cash flow reached nearly $1.3 billion, and the company ended the year with $1.3 billion in cash, an increase of $272 million from the prior year [15] Business Line Data and Key Metrics Changes - Macy's saw four consecutive quarters of positive growth at its first 50 reimagined locations, with initiatives including improved staffing and visual merchandising [16][17] - Bloomingdale's returned to positive annual comparable sales growth, achieving the highest fourth quarter in the company's history [18] - Blue Mercury experienced its fourth consecutive year of positive comparable sales, opening 17 new locations and remodeling seven stores [20] Market Data and Key Metrics Changes - The company closed 64 underperforming Macy's stores and one Bloomingdale's location as part of its strategy to rationalize its store portfolio [27] - The company reported a return to positive digital sales growth in the fourth quarter, indicating a recovery in online shopping performance [17] Company Strategy and Development Direction - The "Bolder Chapter" strategy aims to enhance customer experience and create a more agile business, focusing on improving shopping experiences and operational efficiency [16][21] - The company is committed to ongoing board refreshment, with an average board tenure reduced to 4.2 years, down from 5.3 years last year [29] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the current volatility in the market but expressed confidence in the company's strategy and leadership to navigate these challenges [24] - The company remains committed to enhancing customer experience while strategically investing in growth initiatives [24] Other Important Information - The company returned $192 million to shareholders through quarterly cash dividends, reflecting a 5% increase per share from 2023 [15] - The leadership team is evolving, with Tom Edwards set to join as COO and CFO, indicating a focus on strengthening the company's financial position [22] Q&A Session Summary Question: Plans to sell more of Macy's real estate? - The company is rationalizing and monetizing underperforming store locations as part of its strategy, having closed 64 Macy's and one Bloomingdale's location in 2024 [26][27] Question: Approach to board refreshment? - The company is committed to board refreshment, with a focus on having the right mix of skills and reducing average board tenure [29][30] Question: Dynamic of Macy's vendor relationships? - The company maintains strong vendor relationships and has attracted new vendors as part of its transformation strategy [31][32] Commentary: Appreciation for leadership and store updates? - The management expressed pride in the State Street store and its historical significance, emphasizing ongoing efforts to maintain its legacy [35][36]