Stellus Capital Investment (SCM) Q1 2025 Earnings Call May 13, 2025 12:00 PM ET Speaker0 Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's conference call to report financial results for its first fiscal quarter ended 03/31/2025. This conference is being recorded today, 05/13/2025. It is now my pleasure to turn the call over Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporatio ...

Financial Data and Key Metrics Changes - Realty Income achieved an AFFO per share growth of 4.8% in 2024, marking the fourteenth consecutive year of growth [21] - The company reported a total operational return of 10.2% for investors who held its stock in 2024, supported by a 5.4% dividend yield [21] - The net debt to annualized pro forma adjusted EBITDAR was 5.4 times at the end of Q1 2025 [26] Business Line Data and Key Metrics Changes - Realty Income's portfolio includes over 15,600 properties across 91 industries, with a high occupancy rate of 98.5% at the end of Q1 2025 [18][23] - The company invested $2 billion in the US at a 6.9% weighted average initial cash yield and $1.9 billion in Europe at an 8% weighted average initial cash yield in 2024 [21] - The company completed 15 transactions in 2024 with total consideration exceeding $50 million, including a $770 million sale-leaseback transaction with 7-Eleven [22] Market Data and Key Metrics Changes - In 2025, 60% of total investment volume came from Europe, highlighting the company's global reach [22] - Realty Income has expanded into new verticals, including industrial, gaming, and data centers, increasing its total addressable market [24] Company Strategy and Development Direction - The company aims to maintain a conservative capital structure while expanding into new verticals to bolster growth [25] - Realty Income's strategy focuses on acquiring high-quality real estate leased to leading operators in economically resilient industries [18] - The company anticipates approximately $4 billion in investment volume for 2025, supported by a strong balance sheet and liquidity [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive results despite external volatility, emphasizing the stability of its business model [27] - The company remains focused on creating durable long-term value and consistently returning capital to shareholders through monthly dividends [27] Other Important Information - Realty Income celebrated 30 years of being listed on the New York Stock Exchange in 2024, achieving a 13.6% compound annual total shareholder return since listing [19] - The company is one of only 69 companies in the S&P 500 Dividend Aristocrat Index, having increased its dividend for over 30 consecutive years [20] Q&A Session Summary Question: How can there be more access to information for retail shareholders? - The company posts its 10-Q and 10-K reports quarterly and annually, along with an annual shareholder proxy statement and investor presentations available on its website [28][29] Question: What are the company's values? - Management reassured that Realty Income is a value-driven organization with a clear purpose, mission, and values, supported by engagement surveys conducted every eighteen months [30]

Financial Data and Key Metrics Changes - For the quarter ended March 31, GAAP and core net investment income was 18¢ per share, with total distributions of 24¢ per share [14][18] - As of March 31, the adjusted NAV was $7.48 per share, down 1.2% from $7.57 per share in the prior quarter [18] - The debt to equity ratio was 1.28 times, indicating a diversified capital structure across multiple funding sources [19] Business Line Data and Key Metrics Changes - During the quarter, the company invested $177 million in three new and 52 existing portfolio companies at a weighted average yield of 10.7% [15] - The joint venture (JV) portfolio grew to $1.4 billion, with the JV investing $170 million at a weighted average yield of 10.1% [15][16] - The portfolio consisted of 46% first lien secured debt, 2% second lien secured debt, 13% subordinated notes, 7% other subordinated debt, 7% equity in PSLF, and 25% in other preferred and common equity [20] Market Data and Key Metrics Changes - Approximately 80% of originations came from existing borrowers, with 20% from new platform investments [6] - The weighted average debt to EBITDA for new portfolio company investments was 3.9 times, with a weighted average interest coverage of 2.3 times [8] - The market yield on first lien term loans stabilized in the range of plus 500 to 550 basis points for high-quality assets [8] Company Strategy and Development Direction - The company aims to generate attractive risk-adjusted returns through income while preserving capital, focusing on growing middle market companies with high free cash flow conversion [17] - The strategy includes rotating out of larger equity positions and redeploying that capital into interest-paying debt investments to increase core net investment income [14] - The company remains selective in pursuing new investments, emphasizing rigorous underwriting and maintaining a conservative orientation [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company had a solid quarter and expects originations to remain concentrated among existing portfolio companies [6][7] - The management expressed optimism about the upcoming vintage of loans, indicating that market volatility creates opportunities [8] - The company is closely monitoring the potential impact of tariffs across the portfolio, reporting limited exposure [9] Other Important Information - The company has a significant balance of spillover income, amounting to $58 million or 88¢ per share, which will be used to cover any shortfall in core net investment income versus dividends [15] - The credit quality of the portfolio remains strong, with three nonaccruals representing 1.6% of the portfolio at cost and 0.4% at market value as of March 31 [19] Q&A Session Summary Question: How would you characterize the current pipeline for new investments? - Management indicated that M&A deals impacted by tariffs were delayed, but there has been modest activity since April, with a growing pipeline expected for the rest of the year [24][25] Question: How much of the lower level of new deals was due to stricter underwriting? - Management stated that tariff-impacted deals are not being pursued, while the majority of their focus remains on existing borrowers in sectors not significantly affected by tariffs [28][50] Question: Can you discuss the exposure to government reimbursement and health care? - Management highlighted that the defense budget is expected to increase significantly, aligning well with their portfolio, and noted that their health care investments are performing well due to lower leverage compared to peers [39][44]

Consolidated Water (CWCO) Q1 2025 Earnings Call May 13, 2025 11:00 AM ET Company Participants Frederick McTaggart - CEO, President & DirectorDavid Sasnett - Executive VP & CFOJohn H. Bair - President Conference Call Participants Gerry Sweeney - Managing Director, Senior Research Analyst Operator Good morning. Thank you for joining us today to discuss Consolidated Water Company's first quarter twenty twenty five operating and financial results. Hosting the call today is the Chief Executive Officer of Consoli ...

Ark Restaurants (ARKR) Q2 2025 Earnings Call May 13, 2025 11:00 AM ET Company Participants Christopher Love - SecretaryMichael Weinstein - Founder, Chairman & CEOAnthony Sirica - CFO, President,Treasurer & Director Operator Greetings, and welcome to the Arc Restaurant second quarter twenty twenty five results conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. It is now my pleasure to introduce your host, Chris Love, o ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $5.3 million for the first quarter of 2025, with a gross margin of 23% [12][13] - Adjusted net loss for the quarter was $14.9 million, which was essentially flat compared to the first quarter of 2024 [12][13] - Selling, general, and administrative expenses decreased by approximately $2 million year-over-year [7] Business Line Data and Key Metrics Changes - Revenue from the Inspection and Heat Treating segment increased by 6.8% year-over-year, with core operations growing by 8.8% [6] - The Mechanical Service segment experienced lower callout revenue and project delays, impacting overall revenue growth [6] - Overall revenues were flat year-over-year, attributed to seasonal factors and adverse weather conditions in January [6] Market Data and Key Metrics Changes - The company reported nearly 15% revenue growth from midstream end markets during the quarter [5] - Strong activity levels were noted at the start of the second quarter, with expectations for top-line growth across both segments [9] Company Strategy and Development Direction - The company is focused on simplifying its business, expanding margins, and improving its capital structure [4] - A series of actions targeting cost improvements and operational efficiency are expected to yield annualized cost savings of around $10 million [8][13] - The company aims for at least 15% year-over-year growth in adjusted EBITDA and to achieve a target margin of at least 10% [15] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to navigate macroeconomic uncertainties, including tariff policies [9] - The company expects to see improvements in Canadian operations and overall revenue growth for the full year 2025 [15][16] - Continuous improvement in margin, cost discipline, and cash flow generation are key focuses for the future [16] Other Important Information - The company completed a refinancing transaction in March 2025, lowering its blended interest rate by over 100 basis points and extending term loan maturities to 2030 [11] - The refinancing provided financial flexibility and addressed near-term maturities [11] Q&A Session Summary - No specific questions or answers were documented in the provided content.

Broadwind (BWEN) Q1 2025 Earnings Call May 13, 2025 11:00 AM ET Company Participants Thomas Ciccone - VP & CFOEric Blashford - CEO, President & Director Conference Call Participants Justin Clare - MD & Research AnalystSameer Joshi - Senior Equity Research AnalystEric Stine - Senior Research Analyst Operator Greetings and welcome to Broadwind's First Quarter and Full Year twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will f ...

VerifyMe (VRME) Q1 2025 Earnings Call May 13, 2025 11:00 AM ET Company Participants Nancy Meyers - CFOAdam Stedham - CEO Conference Call Participants Michael Petusky - Managing Director & Senior Research AnalystJack Vander Aarde - SVP & Senior Research Analyst Operator Good day, and welcome to Verifamy's First Quarter twenty twenty five Financial Results Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $5.3 million for the first quarter of 2025, with a gross margin of 23% [12][13] - Adjusted net loss for the quarter was $14.9 million, which was essentially flat compared to the first quarter of 2024 [12][13] - Selling, general, and administrative expenses decreased by approximately $2 million year over year [7] Business Line Data and Key Metrics Changes - Revenue from the Inspection and Heat Treating segment increased by 6.8% year over year, with core operations growing by 8.8% [6] - The Mechanical Service segment experienced lower callout revenue and project delays, impacting overall revenue growth [6] - Overall revenues were flat year over year, affected by seasonal factors and adverse weather conditions in January [6] Market Data and Key Metrics Changes - The company achieved nearly 15% revenue growth in midstream end markets during the quarter [5] - The company expects to see year-over-year activity increases for the full year 2025, despite seasonal slowdowns [6][9] Company Strategy and Development Direction - The company is focused on simplifying its business, expanding margins, and improving its capital structure [4] - A refinancing transaction was completed in March 2025, lowering the blended interest rate by over 100 basis points and extending loan maturities to 2030 [11] - The company aims for at least 15% year-over-year growth in adjusted EBITDA and to achieve a target margin of at least 10% [15] Management's Comments on Operating Environment and Future Outlook - Management remains confident about future growth, citing strong activity levels at the start of the second quarter [9] - The company is closely monitoring potential impacts from tariff policies but believes its diversified service offerings will help navigate macroeconomic uncertainties [9] - Continuous improvement in margin, cost discipline, and cash flow generation are key focuses for the management team [16] Other Important Information - The company has initiated actions targeting annualized cost savings of around $10 million [8] - The management emphasizes the importance of safety culture and continuous improvement as vital to the company's success [16] Q&A Session Summary - No specific questions or answers were documented in the provided content.

HighPeak Energy (HPK) Q1 2025 Earnings Call May 13, 2025 11:00 AM ET Company Participants Steven Tholen - Chief Financial OfficerMichael Hollis - President & DirectorRyan Hightower - Vice President of Business DevelopmentNoah Hungness - Equity Research AssociateJeffrey Robertson - Managing Director Operator Hello, and welcome to High Peak Energy twenty twenty five First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be ...