Financial Data and Key Metrics Changes - Third quarter revenues were $92.3 million, an 11% increase compared to $83.5 million in Q3 of the previous year [10] - Subscription fees were $67.6 million, up 13% year over year, representing 73% of total revenues [10] - Net income for the third quarter was $14.6 million, or diluted earnings per share of $0.74, an increase of 7% compared to $13.7 million, or diluted earnings per share of $0.69 in the same quarter last year [11] - EBITDA was $24.6 million, 26.7% of revenues, up 6% year over year [10] Business Line Data and Key Metrics Changes - The subscriber base reached 2,588,000 at quarter end, an increase of 40,000 in the quarter, with a year-over-year growth of 219,000 [10] - Product revenues were $24.7 million, up 4% year over year [10] Market Data and Key Metrics Changes - Geographic breakdown of revenues in Q3: Israel 55%, Brazil 23%, rest of world 22% [10] - Strong demand for location-based products and telematics services in all regions, particularly in Israel due to high car theft rates [4][5] Company Strategy and Development Direction - The company is focused on expanding its subscriber base and introducing new products and services, including the Ituran Mob smart mobility platform [5][9] - Plans to scale into high-growth motorcycle markets through partnerships with local OEMs, starting with Brazil [5][29] - The company aims to explore M&A opportunities for expansion into other geographies, particularly in Europe [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting subscriber growth guidance of 220,000 to 240,000 for 2025, which would be the highest in the company's history [21] - The company is optimistic about the U.S. market potential for Ituran Mob, targeting small to medium rental companies [14][18] - Management noted that the ongoing strong profitability and cash generation support the declared dividend of $10 million for the quarter [11][8] Other Important Information - The company generated $21.3 million in operating cash flow during the quarter [7] - A dividend of $10 million was declared, reflecting a 25% increase from the previous policy [8] Q&A Session Summary Question: Can you provide more details on the U.S. launch and target market? - Management indicated that the focus is on small to medium rental companies, which represent a significant portion of the market, and highlighted the strong demand for cost-saving solutions [14][15] Question: What is driving the increase in operating expenses this quarter? - The increase in operating expenses was primarily attributed to foreign exchange effects [19] Question: How is subscriber momentum performing against original guidance? - Management confirmed that they are on track to meet the subscriber growth guidance, with contributions from various regions and initiatives [21] Question: Can you discuss the motorcycle market and partnerships? - Management emphasized the importance of the motorcycle market in Latin America and the recent partnership with BMW Motorrad to tap into this opportunity [28][29] Question: Are there concerns about manufacturers developing their own telematics systems? - Management reassured that Ituran's strength lies in its service-oriented model and strong market presence, which mitigates the risk of disintermediation [51][52] Question: Update on efforts in India? - Management mentioned a joint venture in India with a focus on commercial cars, noting that the market is still developing and requires specific deals to be profitable [55]

Zynex (NasdaqGS:ZYXI) Q3 2025 Earnings Call November 18, 2025 09:00 AM ET Company ParticipantsStephen Dyson - CEOVikram Bajaj - CFOOperatorGood morning, ladies and gentlemen, and thank you for standing by. Welcome to the Zynex third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. I would now like to turn the conference over to Vikram Bajaj, Chief Financial Officer of Zynex. Please go ahead.Vikram BajajThank yo ...

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $13.3 million, a slight decrease from $13.5 million in Q3 2024. Gross profit for the quarter was $1.6 million, down from $3.5 million in the previous year. Operating profit was $50,000 compared to $1.9 million in Q3 2024. Net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to net income of $1.7 million, or $0.25 per share in Q3 2024 [9][10]. - EBITDA for Q3 2025 amounted to $0.6 million, down from $2.3 million in the prior year period. Positive cash flow from operating activities was $2 million, compared to $1.6 million in Q3 2024 [10]. Business Line Data and Key Metrics Changes - The defense sector accounted for 63% of quarterly sales, while industrial and medical customers represented 9% and 6%, respectively. RigidFlex products made up 66% of quarterly sales and 65% of sales for the first nine months of the year [6]. Market Data and Key Metrics Changes - Demand for products remains strong, particularly in the defense sector. However, the entry of new foreign competitors is noted, which may limit price increases in certain segments. Delivery times across the industry remain extended due to strong global demand and constrained manufacturing capacity [6][7]. Company Strategy and Development Direction - The company is in a transition period, absorbing significant additional capacity and technology upgrades. A production capacity expansion program is progressing well, with the construction of a new production hall nearing completion. The RP project is also on track to go live in 2026, aiming to integrate all company platforms for improved operational efficiency [7][8]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing operational instability due to the ramp-up of new equipment and the integration of new staff. They expect improvements in production processes and financial performance as employees gain experience and new pricing models take effect [5][6][12]. The company anticipates that gross margins will improve by mid-2026 as production processes stabilize [15]. Other Important Information - The sharp depreciation of the US dollar against the Israeli shekel has negatively impacted reported expenses and gross profits, with an estimated operational profit impact of approximately $800,000 compared to Q3 2024 [4]. Q&A Session Summary Question: Clarification on operational issues and pricing impact due to USD depreciation - Management explained that current operational issues stem from engineering and manpower challenges rather than construction-related problems. They expect to see the effects of price increases from USD depreciation in six to nine months [12][13]. Question: Timeline for resolving operational difficulties - Management indicated that the timeline for resolving operational difficulties is uncertain and depends on the absorption rate of employees and engineering staff [14]. Question: Impact of new competition and price pressure - Management noted that new foreign competitors are entering the defense sector, which is limiting pricing flexibility, particularly in high-volume production. However, competition in low-volume production remains limited, allowing for greater pricing flexibility [23][24]. Question: Continued impact of currency and foreign exchange - Management confirmed that the erosion of the US dollar will continue to affect financial expenses and operating income, particularly if the exchange rate remains lower than at the end of Q3 [26][27].

Financial Data and Key Metrics Changes - For fiscal 2025, net sales reached $10.3 billion, marking a 6% increase compared to the previous year, primarily driven by the acquisition of Sovos Brands [27] - Organic net sales decreased by 1% year-over-year, attributed to lower volume and unfavorable mix and net price investment [27] - Adjusted EBIT increased by 2% compared to the prior year, while adjusted EPS decreased by 4% to $2.97 due to higher adjusted net interest expense [28][29] Business Line Data and Key Metrics Changes - Organic net sales in the meals and beverages division remained flat, while snacks saw a 3% decline [27] - The company achieved $145 million in enterprise cost savings under a $250 million cost savings program, which was later increased to $375 million by the end of fiscal 2028 [28] Market Data and Key Metrics Changes - The company generated strong operating cash flow of $1.1 billion, slightly lower than the previous year due to changes in working capital [28] - Capital expenditures for fiscal 2025 were $426 million, an 18% decline compared to the prior year [29] Company Strategy and Development Direction - The company aims to leverage category leadership and innovation capabilities to keep its brands aligned with consumer trends while focusing on efficiency and effectiveness to drive sustainable long-term growth [30] - The company intends to use cost savings as a lever to offset tariff headwinds [28] Management's Comments on Operating Environment and Future Outlook - Management expressed that fiscal 2025 results were slightly ahead of expectations, emphasizing a focus on execution in a dynamic operating environment [27] - The company remains committed to returning cash to shareholders, having paid $459 million in dividends and $62 million in share repurchases [29] Other Important Information - The board unanimously recommended against two shareholder proposals regarding simple majority voting and a report on the effectiveness of the regenerative agriculture program [25][24] Q&A Session Summary - No questions were submitted during the Q&A session regarding the formal agenda items, leading to a smooth transition to voting [24][30]

Financial Data and Key Metrics Changes - The company reported adjusted EPS for Q3 2025 of $6.75 per share, compared to $6.5 per share in Q3 2024, indicating a slight increase in profitability [9] - Adjusted net income decreased by $2.7 million to $124.1 million in Q3 2025 from $126.8 million in Q3 2024, primarily due to increased operating costs and lower dividend income [10] - Adjusted EBITDA increased by 1.5% to $181.6 million in Q3 2025 from $178.9 million in Q3 2024 [13] Business Line Data and Key Metrics Changes - Vessel operating expenses increased by $2.4 million to $52.3 million in Q3 2025, attributed to a higher average number of vessels in the fleet [11] - Daily operating costs slightly increased to $6,927 per vessel per day in Q3 2025 from $6,860 in Q3 2024 [11] - The container segment experienced a $4.3 million decrease in revenues due to lower contracted charter rates [10] Market Data and Key Metrics Changes - The charter market remains robust with an all-time low idle fleet, and demand for mid-size and larger vessels continues unabated [4][5] - The company has secured new charters for vessels extending as far out as early 2028, indicating strong future demand [5] Company Strategy and Development Direction - The company is selectively extending its new building program at below-market prices and has secured multi-year employment for new orders, enhancing its contracted revenue backlog [5] - The company is also investing in the dry bulk cape-sized market segment, expecting outsized returns due to supply constraints [8] Management's Comments on Operating Environment and Future Outlook - The management noted that the war in Ukraine and Middle East tensions continue to impact operations, but trade has resumed unhindered between the U.S. and China [4] - The management expressed optimism about the demand for mid-sized ships and the overall market dynamics, although predicting the strength of 2026 remains challenging [22][23] Other Important Information - The company completed a $500 million unsecured seven-year bond offering with a 6.85% coupon, enhancing its financial flexibility [6] - The quarterly dividend was increased to $0.90 per share, reflecting a commitment to returning value to shareholders [8][14] Q&A Session Summary Question: Insights on container shipping chartering activity and future demand - Management noted that despite lower trade and tariffs, demand for charters remains high due to global production capacity and market dynamics outside traditional Western areas [20][22] Question: Update on Cape-sized vessel investment and future plans - The company aims to grow its investment in the dry bulk market selectively, focusing on high-quality second-hand vessels rather than new builds [25] Question: Share repurchase program activity - Management confirmed that the share buyback program continues, albeit at a smaller pace, as they believe the stock is undervalued [26][27]

Financial Data and Key Metrics Changes - Total sales for the third quarter were $41.4 billion, an increase of 2.8% from the same period last year [5][20] - Comp sales increased by 0.2% year-over-year, with U.S. comps up 0.1% [5][20] - Adjusted diluted earnings per share were $3.74, down from $3.78 in the same quarter last year [5][23] - Gross margin was 33.4%, flat compared to the third quarter of 2024 [20] - Operating margin decreased to 12.9% from 13.5% in the same quarter last year [21][24] - Return on invested capital was 26.3%, down from 31.5% in the third quarter of fiscal 2024 [24] Business Line Data and Key Metrics Changes - Nine of the 16 merchandising departments posted positive comps, including kitchen, bath, outdoor garden, and appliances [14] - Comp average ticket increased by 1.8%, while comp transactions decreased by 1.6% [14] - Big ticket comp transactions (over $1,000) increased by 2.3% compared to the previous year [14] - Online comp sales increased approximately 11% year-over-year [16] Market Data and Key Metrics Changes - Comps in Canada and Mexico posted positive results in local currency [5][20] - Comp sales in the U.S. were +0.1% for the quarter, with variations of +2.2% in August, +0.3% in September, and -1.7% in October [20] Company Strategy and Development Direction - The company is focused on controlling internal factors and believes it is gaining market share [6][7] - The acquisition of GMS is expected to enhance the company's position in the building materials distribution market [7] - The company plans to continue investing in its business, targeting capital expenditures of approximately 2.5% of sales for fiscal 2025 [25] Management's Comments on Operating Environment and Future Outlook - Management revised guidance for fiscal 2025 due to softer-than-expected results and ongoing consumer uncertainty [6][24] - The lack of storm activity has significantly impacted home improvement demand [5][34] - Management noted that housing activity is at 40-year lows, affecting consumer behavior [36] - The company expects total sales growth of approximately 3% for fiscal 2025, with GMS contributing about $2 billion in incremental sales [24][25] Other Important Information - Merchandise inventories were $26.2 billion, up approximately $2.3 billion compared to the third quarter of 2024 [23] - The company opened three new stores, bringing the total store count to 2,356 [23] Q&A Session Summary Question: Impact of GMS on EBIT dollar shortfall - Management explained that the inclusion of GMS and transaction expenses contributed to a 20 basis point impact on operating margin [28][29] Question: Expectations for demand recovery - Management indicated that demand recovery is unlikely without increased housing activity or reduced interest rates [48][50] Question: Average ticket and promotional activity - Management noted that the increase in average ticket was due to customers trading up for innovation, with promotional activity remaining consistent year-over-year [40][41] Question: Margin structure improvement from acquisitions - Management discussed the potential for margin recovery through synergies and cross-selling opportunities between SRS and GMS [74][87] Question: Regional performance and consumer fatigue - Management observed no specific fatigue in upper-income customers but noted a softening in larger project backlogs [85] Question: Cross-selling opportunities post-GMS integration - Management highlighted successful account handoffs and cross-selling between Home Depot and GMS, indicating strong collaboration [91]

Financial Data and Key Metrics Changes - For fiscal 2025, the company reported net sales of $10.3 billion, a 6% increase compared to the prior year, primarily driven by the Sovos Brands acquisition [27] - Organic net sales decreased by 1% year-over-year, attributed to lower volume and unfavorable mix and net price investment [27] - Adjusted EBIT increased by 2% compared to the previous year, while adjusted EPS decreased by 4% to $2.97 due to higher adjusted net interest expense [28][29] Business Line Data and Key Metrics Changes - Organic net sales in the meals and beverages division were flat, while snacks division saw a 3% decrease [27] - The company achieved $145 million in enterprise cost savings under a $250 million cost savings program, which was later increased to $375 million by the end of fiscal 2028 [28] Market Data and Key Metrics Changes - The company generated strong operating cash flow of $1.1 billion, slightly lower than the previous year due to changes in working capital [28] - Capital expenditures for fiscal 2025 were $426 million, an 18% decline compared to the prior year [29] Company Strategy and Development Direction - The company aims to leverage category leadership and innovation capabilities to keep its brands aligned with consumer trends while focusing on efficiency and effectiveness for sustainable long-term growth [30] - The company intends to use cost savings as a lever to offset tariff headwinds [28] Management's Comments on Operating Environment and Future Outlook - Management expressed that fiscal 2025 results were slightly ahead of expectations, driven by a focus on execution in a dynamic operating environment [27] - The company remains committed to returning cash to shareholders, having paid $459 million in dividends and $62 million in share repurchases [29] Other Important Information - The board unanimously recommended against two shareholder proposals regarding simple majority voting and a report on the effectiveness of the regenerative agriculture program [15][23] - The company’s independent audit was performed by PricewaterhouseCoopers LLP, and the results of the voting on various proposals were reported [25] Q&A Session Summary - No questions were submitted regarding the formal agenda items, and the meeting proceeded to voting [24] - Management was prepared to answer questions related to the business or operations of the company, but no questions were asked during the session [30]

Financial Data and Key Metrics Changes - Total sales for the third quarter were $41.4 billion, an increase of 2.8% year-over-year [5][20] - Comparable sales increased by 0.2%, with U.S. comps up 0.1% [5][20] - Adjusted diluted earnings per share were $3.74, down from $3.78 in the same quarter last year [5][23] - Gross margin was 33.4%, flat compared to the previous year [20] - Operating margin decreased to 12.9% from 13.5% year-over-year [21][24] - Return on invested capital was 26.3%, down from 31.5% [24] Business Line Data and Key Metrics Changes - Nine out of 16 merchandising departments posted positive comps, including kitchen, bath, and outdoor garden [14] - Comp average ticket increased by 1.8%, while comp transactions decreased by 1.6% [14] - Big ticket comp transactions (over $1,000) were positive at 2.3% [14] - Online comp sales increased approximately 11% year-over-year [16] Market Data and Key Metrics Changes - Comps in Canada and Mexico were positive in local currency [5][20] - Comp sales progression showed positive results in August (2%), September (0.5%), but negative in October (-1.5%) [20] Company Strategy and Development Direction - The company is focused on controlling operational aspects and believes it is gaining market share [6][7] - The acquisition of GMS enhances the company's position as a multi-category building materials distributor [7] - The company plans to continue investing in business initiatives and customer experience [8][19] Management's Comments on Operating Environment and Future Outlook - Management revised guidance for fiscal 2025 due to softer-than-expected results and ongoing consumer uncertainty [6][24] - The lack of storm activity has significantly impacted home improvement demand [5][34] - Management expects total sales growth of approximately 3% for fiscal 2025, with GMS contributing about $2 billion [24] Other Important Information - The company opened three new stores, bringing the total to 2,356 [23] - Merchandise inventories were $26.2 billion, up approximately $2.3 billion year-over-year [23] Q&A Session Summary Question: Impact of GMS on EBIT shortfall - Management explained that the inclusion of GMS and transaction expenses contributed to a 20 basis point impact on operating margin [28][29] Question: Consumer demand recovery without housing activity - Management indicated that ongoing consumer uncertainty and housing pressure are affecting home improvement demand [34][50] Question: Average ticket and promotional activity - Management noted that the increase in average ticket was due to customers trading up for innovative products, with promotional activity remaining consistent year-over-year [40][41] Question: Margin structure improvement from acquisitions - Management discussed the potential for margin recovery through synergies and cross-selling opportunities between SRS and GMS [74][87] Question: Regional differences in consumer behavior - Management observed that storm and weather patterns were the most significant regional differences, with no specific fatigue noted in the upper-income customer base [85]

Financial Data and Key Metrics Changes - Third Quarter 2025 revenues were $1,922 million, a 12% increase from $1,718 million in the Third Quarter of 2024, with 18% growth for the nine months ended September 30 [4][10] - GAAP gross margin improved to 24.9% in the Third Quarter from 24% in the same quarter last year, while non-GAAP gross margin rose to 25.2% from 24.4% [5][8] - GAAP diluted EPS increased to $2.80 from $1.77 year-over-year, and non-GAAP diluted EPS rose to $3.35 from $2.21 [8] Business Line Data and Key Metrics Changes - Aerospace segment revenues decreased by 3% year-over-year, primarily due to lower precision-guided munitions sales in Asia-Pacific, offset by increases in Israel and Europe [8] - SIFRAE and CYBER revenues increased by 14% year-over-year, driven by sales in Europe [9] - Land segment revenues surged by 41% in the third quarter, attributed to ammunition and munitions sales in Israel and Europe [9] Market Data and Key Metrics Changes - Revenue contributions for the Third Quarter 2025 were as follows: Europe 28%, North America 21%, Asia-Pacific 14%, and Israel 33% [4] - The order backlog as of September 30, 2025, was $25.2 billion, an increase of $3.1 billion from the previous year [10] Company Strategy and Development Direction - The company aims to focus on growth outside of Israel, particularly in Europe, as indicated by a $1.4 billion increase in backlog, with $1.2 billion from international orders [22] - The company is expanding operations in Europe, opening new facilities in Sweden and Germany to enhance local delivery capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand for solutions, particularly in Europe and Israel, amidst rising global defense budgets [11] - The recent ceasefire is seen as an opportunity to regroup and focus on international business, which constitutes about 70% of the company's operations [36] Other Important Information - The company declared a dividend of $0.75 per share to be paid on January 5, 2026, reflecting strong cash generation with quarterly free cash flow of $101 million [10] - A significant international contract worth approximately $2.3 billion was signed, marking the largest contract in the company's history [12] Q&A Session Summary Question: How enduring is domestic demand with the ceasefire? - Management noted a $1.4 billion increase in backlog, with growth expected predominantly outside of Israel, especially in Europe [22] Question: What is the outlook for the air and aerospace business? - Management anticipates continued growth in the aerospace segment, driven by international sales and demand for UAVs [25][26] Question: What are the opportunities in directed energy? - Management confirmed strong interest in high-powered laser systems, with potential for significant orders following successful deployments in Israel [28][30] Question: What are the drivers behind the strong margin performance? - The margin expansion is attributed to improved backlog profitability and operational excellence initiatives, including AI utilization [34] Question: How does the company plan to leverage the US DOD's budget expansion? - Management highlighted ongoing success in the US market and plans for further acquisitions and investments to enhance their position [41][42]

Financial Data and Key Metrics Changes - For the fourth quarter ended August 31, 2025, total consolidated net sales decreased 4.4% to $22.3 million compared to the same period last year [5][14] - Fiscal 2025 consolidated net sales decreased 1.0% year-over-year [14] - NTIC reported a net loss of $1.1 million, or $0.11 per diluted share for Q4 2025, compared to net income of $1.8 million, or $0.19 per diluted share for Q4 2024 [17] - For the full fiscal year 2025, NTIC reported net income of $18,000, or $0.00 per diluted share, compared to $5.4 million, or $0.55 per diluted share for fiscal 2024 [17] - Operating expenses increased 2.2% to $9.7 million for Q4 2025, with operating expenses as a percentage of net sales rising to 43.5% from 40.7% in the prior year [14][15] Business Line Data and Key Metrics Changes - Zerust oil and gas net sales decreased by 29.4%, while Natur-Tec net sales decreased by 10%, partially offset by a 5.8% increase in Zerust industrial net sales [6][5] - Natur-Tec sales for Q4 were $5.1 million, representing a 10% year-over-year decline [11] - NTIC China sales increased by 12% to $4 million for Q4 2025, with full-year sales up 14% to $16.2 million [8] Market Data and Key Metrics Changes - Joint venture sales for Q4 2025 increased by 4.7% to $24.4 million, while full-year joint venture sales declined by 4.9% [7][14] - The oil and gas group in North America experienced a decline of nearly 46% year-over-year, while Natur-Tec North America was down about 13% [39] Company Strategy and Development Direction - The company is focused on flattening operating expenses while expanding gross margins and driving sales in higher-margin areas [5] - NTIC aims to leverage strategic investments made over the past three years to enhance global operations and support future growth [4] - The company is optimistic about growth in fiscal 2026, particularly in the oil and gas and Natur-Tec segments [57] Management's Comments on Operating Environment and Future Outlook - Management anticipates macroeconomic headwinds to persist, especially in Europe, but believes NTIC is positioned for growth and improved profitability [5] - The company expects to see significant improvement in Zerust oil and gas sales and profitability in fiscal 2026 [10] - Management remains confident in the strategic growth plan despite challenges faced in fiscal 2025 [13] Other Important Information - NTIC's effective tax rate for fiscal 2025 was unusually high at 67.5%, primarily due to increased income tax expense in foreign subsidiaries [17] - The company declared a quarterly cash dividend of $0.01 per common share payable on August 13, 2025 [20] Q&A Session Summary Question: Are the income taxes on international business higher than in the U.S.? - The effective tax rate is influenced by profitability levels in North America, which were low in Q4, leading to a high effective tax rate [23][24] Question: How much can the company cut expenses to improve profitability? - The goal is to maintain operating expenses at similar levels to fiscal 2025, with expectations of revenue growth from previous investments [26][27] Question: What is driving the oil and gas business? - The growth is attributed to general acceptance of the technology and repeat business from existing customers [31] Question: How close is the company to getting business from compostable packaging? - Trials are ongoing with several customers, and initial orders are expected to contribute to sales in fiscal 2026 [33][53] Question: Where is the weakness in North America coming from? - The main weaknesses are in the Natur-Tec and oil and gas groups, with significant declines noted [39] Question: Is the one-time customs charge a recurring issue? - It is expected to be a one-time event, with no ongoing impact on the P&L [44][45]