Sixth Street Specialty Lending, Inc. (NYSE:TSLX) Q4 2024 Earnings Conference Call February 14, 2025 8:30 AM ET Company Participants Cami VanHorn - Head, Investor Relations Joshua Easterly - Chief Executive Officer Bo Stanley - President Ian Simmonds - Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Securities Brian McKenna - Citizens JMP Mickey Schleien - Ladenburg Ken Lee - RBC Capital Markets Melissa Wedel - JPMorgan Robert Dodd - Raymond James Maxwell Fritscher - Truist P ...

Financial Data and Key Metrics Changes - In Q4 2024, the company's operating earnings per share increased by 19.4% and gross written premium grew by 12.2% compared to Q4 2023 [7] - The combined ratio for the quarter was 73.4%, with a full year 2024 operating return on equity of 29% [7][11] - Net investment income rose by 37.8% in Q4 compared to the previous year, driven by growth in the investment portfolio and higher interest rates [13] - The expense ratio for Q4 was 21.1%, up from 19.9% the previous year, while the full year expense ratio was 20.6%, slightly better than 20.8% last year [12] Business Line Data and Key Metrics Changes - Gross written premium growth was 12.2%, with casualty underwriting divisions growing at 15% and property divisions at 6% [16] - Catastrophe losses in Q4 were modest at $8 million pretax, with a significant impact from California wildfires estimated at $25 million pretax [17][19] Market Data and Key Metrics Changes - The overall E&S market in Q4 was steady but faced increased competition [10] - New business submissions growth was 17% for the quarter, down from 23% in the previous quarter [20] Company Strategy and Development Direction - The company focuses on small E&S accounts, maintaining control over underwriting and claims processes, and investing in technology and analytics to improve efficiency and profitability [8] - A new agribusiness underwriting unit was created to expand product offerings into adjacent markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects, maintaining a guidance of 10% to 20% growth moving forward despite recent competitive pressures [39] - The company aims to balance profitability and growth, with expectations of continued strong returns and stock price appreciation [101] Other Important Information - The company repurchased $10 million in shares during Q4, with plans for modest repurchases each quarter [15] - The company is gradually increasing its allocation to common stock from 8% to 10% of cash and invested assets, with a target of 12% over the next year [14] Q&A Session Summary Question: Impact of larger shared account property on growth - Management confirmed that larger layered deals are under competitive pressure, affecting growth, but small property divisions are still growing rapidly with positive rate increases [28] Question: Sustainability of growth rates - Management believes that a growth rate of 10% to 20% is sustainable, driven by their low-cost operating model and strong customer service [37][40] Question: Capital buybacks and growth dynamics - Management indicated that the current buyback strategy is modest, with a focus on maintaining sufficient capital for operations while addressing excess capital through dividends and buybacks [46][48] Question: January results and expense ratio - Management refrained from commenting on January results but reiterated confidence in growth guidance, attributing the higher expense ratio to increased variable compensation [51][52] Question: California wildfire losses - The gross loss from the California wildfires was approximately $45 million, with a net pretax loss of $25 million expected [62] Question: Trends in loss ratios and reserves - Management stated that loss trend assumptions are in the high single digits, with a conservative approach to estimating future losses [113]

Financial Data and Key Metrics Changes - Total net sales for Q1 fiscal 2025 were $5.1 million, a 12% increase from the prior year and a 12% increase from Q4 [12] - Gross profit remained at a healthy 66% for Q1 fiscal 2025 [13] - SG&A expenses decreased to $3.4 million from $4.6 million in the prior year [13] - The company achieved positive net income of $15,000 compared to a loss of $977,000 in Q1 fiscal 2024 [14] - Non-GAAP adjusted EBITDA was $214,000, a significant improvement from a loss of $698,000 in the prior year [14] Business Line Data and Key Metrics Changes - E-commerce direct-to-consumer sales were $3.9 million, a 10% year-over-year decrease, representing 77% of total net sales [12] - Wholesale business generated $1.1 million in net sales, up 22% compared to $950,000 in the prior year [12] Market Data and Key Metrics Changes - The beverage market is identified as the fastest-growing category within the CBD and hemp sectors, with significant growth observed in 2024 and continuing into 2025 [50][52] Company Strategy and Development Direction - The company is focused on achieving profitability and resolving capital structure challenges, with a clear roadmap for sustainable profitability [11][19] - New product launches, particularly in the Oasis social tonic line, are expected to drive future revenue growth [9][10] - The company is committed to enhancing its customer experience and optimizing its business operations [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial progress and the potential for future growth, emphasizing the importance of addressing capital structure to unlock shareholder value [19][25] - The company has transformed into a leaner organization focused on long-term success despite challenges in the hemp and CBD industry [26] Other Important Information - The company is now debt-free, excluding ordinary course liabilities and accrued dividends, which allows for better cash management [17] - A proposal for a conversion ratio of one to thirteen for Series A preferred stock is aimed at improving capital structure and regaining compliance with NYSE standards [23][24] Q&A Session Summary Question: Progress on Oasis Social Tonics - Management noted that the product has been well-received, though wholesale distribution is slower than expected due to legal document iterations [33] Question: DTC Margins for Oasis - DTC margins for Oasis are tighter than other products, but the channel remains viable with potential for profitable growth [36] Question: Revenue from Oasis in December Quarter - Some revenue was booked in the December quarter, but it was limited due to the short time frame [38] Question: Total Shares Outstanding Post-Conversion - Total shares outstanding as of February post-conversion are just over 6.2 million [41] Question: Liquidity Runway - Management maintains a positive outlook on liquidity, expecting to operate a positive EBITDA business [42][43] Question: Future Working Capital Needs - Management anticipates more normal working capital relationships in upcoming quarters [44]

Financial Data and Key Metrics Changes - In 2024, the company recorded total revenue of $3.2 billion, a 53% decline from 2023, primarily due to lower product sales [23][27] - The net loss for the year was $3.6 billion, compared to a loss of $4.7 billion in 2023, with a loss per share of $9.28 compared to $12.33 in the prior period [27] - Cash, cash equivalents, and investments totaled $9.5 billion at the end of the quarter, up from $9.2 billion at the end of the third quarter [22] Business Line Data and Key Metrics Changes - For Q4 2024, net product sales were $0.9 billion, with $0.2 billion in the United States and $0.7 billion outside the United States [13] - Full-year net product sales were $3.1 billion, with U.S. sales at $1.7 billion, benefiting from a favorable adjustment related to a prior period return reserve reversal [13][14] - The majority of sales were from Spikevax, while mRESVIA generated only $25 million in sales for the full year [15] Market Data and Key Metrics Changes - International sales were lower year-over-year, reflecting the ongoing phase-out of advanced purchase agreements [16] - The company observed signs of stabilization in the COVID market, believing it will remain durable over time despite lower vaccination rates and increased competition [14] Company Strategy and Development Direction - The company announced a focus on 10 high-value programs expected to drive sales growth and diversification from COVID over the next three years [8] - The strategic resizing initiative launched in 2023 aims to optimize the manufacturing footprint and align with the transition to a seasonal endemic market [18] - The company plans to reduce cash costs to an estimated $5.5 billion in 2025 and $5 billion in 2026, aiming for breakeven on a cash-cost basis no later than 2028 [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the COVID market and the potential for growth from new product approvals [14][31] - The company anticipates total revenue in 2025 to be in the range of $1.5 billion to $2.5 billion, reflecting uncertainties in vaccination rates and market competition [31] - Management emphasized the importance of cost management and operational efficiencies to position the company for long-term success [35] Other Important Information - The company reported a significant reduction in operating expenses in 2024, with costs declining from $11.1 billion to $7.2 billion [28] - R&D expenses for the year were $4.5 billion, down 6% from 2023, primarily due to lower clinical trial and manufacturing costs [24] Q&A Session Summary Question: Can you help us understand the breakdown of the R&D spend across your program? - Management indicated there is flexibility to reduce R&D spending further, with guidance of $4.1 billion for 2025 and potential reductions by 2027 [55] Question: What would it take for the FDA to remove the clinical hold on Norovirus? - Management stated that the FDA needs time to review submitted materials, and any decision will depend on their assessment [67] Question: Should we still expect the final readout for CMV in the first half of 2025? - Management confirmed that they still expect the final results for the CMV trial in 2025, although specific timing was not provided [66] Question: Can you clarify the approval requirements for the COVID-flu combo vaccine? - Management confirmed that efficacy for the COVID component has been demonstrated, but efficacy for the flu component is still required [88] Question: What variables would affect the 2025 revenue guidance? - Management noted that vaccination rates, market share, and competitive dynamics would influence whether they land at the low or high end of their guidance [133]

Financial Data and Key Metrics Changes - Fourth quarter sales were $1.1 billion, down 5% compared to Q4 2023, primarily due to weak demand in residential markets and automotive sectors [27][29] - Full year 2024 sales decreased 7% to $4.4 billion, with EBIT down $340 million largely due to $676 million in goodwill impairment charges [29][30] - Adjusted EPS for 2024 was $1.05, a 24% decrease from 2023 adjusted EPS of $1.39 [30] - Operating cash flow was $306 million, a decrease of $191 million versus 2023 [31] Business Line Data and Key Metrics Changes - Sales in the bedding products segment decreased 6% in Q4 2024, specialized products declined 5%, and furniture, flooring, and textile products were down 4% [28] - For the full year, bedding products faced a decline primarily due to restructuring-related sales attrition and lower volume in adjustable beds [20][30] - The specialized products segment is expected to see mid-single-digit declines in 2025, influenced by automotive and hydraulic cylinder demand [22][24] Market Data and Key Metrics Changes - The U.S. mattress market was likely down low single digits in 2024, with domestic production down mid-single digits [19] - In 2025, market volume is expected to be flat, with domestic production down low to mid-single digits [20] - The automotive market is projected to face lower volume year over year due to softness in demand and challenges from Chinese EV manufacturers [22][24] Company Strategy and Development Direction - The company is focusing on balance sheet strength, operational efficiency, and margin improvement while exploring a potential sale of its aerospace business [25] - Continued product innovation and strong customer relationships are prioritized to navigate demand pressures [25] - Restructuring activities are expected to continue throughout 2025, with a focus on improving manufacturing efficiency and reducing costs [14][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for recovery in the bedding market despite ongoing demand challenges [18][43] - Concerns were raised about consumer confidence, inflation, and affordability issues impacting demand in 2025 [100][112] - The company anticipates that macroeconomic factors will continue to influence performance, with no significant improvement expected in 2025 compared to 2024 [100][112] Other Important Information - The company reduced total debt by $126 million in 2024, ending the year with total liquidity of $793 million [32][33] - Restructuring costs for 2025 are expected to be approximately $30 million, with total restructuring costs projected to range from $80 million to $90 million [35][36] - The company expects to generate $15 million to $40 million in cash proceeds from real estate sales associated with the restructuring plan [38] Q&A Session Summary Question: Can you discuss the dynamics between imports and U.S. production in the bedding market? - Management highlighted that imported innersprings are significantly impacting the market, with nearly 50% of units sold through online platforms [49][50] Question: What is driving the increased expectations for EBIT benefits from restructuring? - Management credited the hard work of teams executing the restructuring plan, with potential upside in contribution margins as manufacturing efficiency improves [55][56] Question: How should we think about margins for the segments in 2025? - Margins are expected to improve in bedding despite volume declines, while specialized products are anticipated to remain flat [58][59] Question: What are the expectations for the bedding market in 2025? - The company expects a mid-single-digit decline in bedding demand, influenced by restructuring-related sales attrition and lower volume in adjustable beds [20][22] Question: Can you elaborate on the automotive market dynamics? - Management noted that the automotive sector is facing challenges due to a shift towards Chinese EV manufacturers and a decline in multinational production [22][134] Question: How is the company addressing tariff impacts? - Management is closely monitoring tariff impacts on steel pricing and downstream products, which could affect competitiveness [77][116]

Cementos Pacasmayo S.A.A. (NYSE:CPAC) Q4 2024 Earnings Conference Call February 14, 2025 9:00 AM ET Company Participants Claudia Bustamante - IR Manager Humberto Nadal - CEO Manuel Ferreyros - CFO Conference Call Participants Marcelo Furlan - Itau Adrian Huerta - JP Morgan Francisco Suarez - Scotiabank Luis Ramos - Larrain Vial Gabriel Perez - CrediCorp Marcelo Furlan - Itau Adrian Huerta - JP Morgan Francisco Suarez - Scotiabank Luis Ramos - Larrain Vial Gabriel Perez - CrediCorp Operator Good day, ladies ...

The Goodyear Tire & Rubber Company (NASDAQ:GT) Q4 2024 Results Conference Call February 14, 2025 9:00 AM ET Company Participants Greg Shank - Senior Director, IR Mark Stewart - CEO and President Christina Zamarro - EVP and CFO Conference Call Participants James Picariello - BNP Paribas Emmanuel Rosner - Wolfe Research Doug Karson - Bank of America Edison Yu - Deutsche Bank Operator Good morning. My name is Margo, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Goody ...

Financial Data and Key Metrics Changes - Enbridge reported record EBITDA and DCF per share in 2024, with a 13% increase in EBITDA compared to 2023, reaching over $5.1 billion for the quarter [12][38] - DCF per share rose to $1.41, reflecting a 10% increase year-over-year, while adjusted earnings per share increased by 17% to $0.75 [38][41] - Total shareholder return for 2024 was 37%, highlighting strong performance [13] Business Line Data and Key Metrics Changes - Liquids segment saw strong throughput, averaging 3.1 million barrels per day, with record annual volumes on key pipelines [22][70] - Gas Transmission business experienced high utilization, with new throughput records set in January 2025 [25][73] - Gas Distribution and Storage business now delivers over 9 Bcf per day to over 7 million customers, reflecting growth from newly acquired utilities [30][78] Market Data and Key Metrics Changes - Enbridge added over $5 billion in gas and renewable projects in 2024, including significant pipeline projects and solar capacity [20][68] - The company sanctioned approximately $4 billion in new capital projects focused on U.S. Gulf Coast infrastructure [26][74] - The utility franchise has doubled in size, enhancing market presence and service capabilities [29][77] Company Strategy and Development Direction - Enbridge aims to meet increasing power generation and industrial needs through a diversified portfolio that includes long-haul gas transmission and renewable power [19][67] - The company emphasizes a low-risk business model, achieving guidance for 19 consecutive years, and plans to continue prudent capital recycling [16][62] - Future growth will focus on brownfield investments and maintaining a strong capital backlog of $26 billion [47][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's ability to generate strong returns despite macroeconomic challenges [16][18] - The company anticipates continued strong demand for its services, particularly in the Liquids and Gas Transmission segments [21][70] - Enbridge reaffirmed its 2025 guidance, expecting adjusted EBITDA between $19.4 billion and $20 billion [42][91] Other Important Information - Enbridge increased its dividend for the 30th consecutive year, reinforcing its status as a dividend aristocrat [12][59] - The company closed the acquisition of three U.S. natural gas utilities, creating the largest gas utility franchise in North America [13][60] - Enbridge's capital allocation strategy remains focused on maintaining a strong balance sheet and disciplined investment approach [45][94] Q&A Session Summary Question: WCSB production and growth opportunities - Management discussed ongoing production growth and quick-hit projects to serve markets, with more details expected at the upcoming Investor Day [106][110] Question: Impact of new D.C. policies on energy infrastructure - Management highlighted the importance of a diversified energy portfolio and expressed optimism about a more rational approach to sustainability and permitting [112][114] Question: Appetite for investing in long-haul Liquids pipelines - Management indicated that any future investment in projects like Northern Gateway would require significant changes in political and regulatory environments [120][124]

Financial Data and Key Metrics Changes - TC Energy reported a 6% increase in comparable EBITDA from continuing operations in 2024 compared to 2023, reaching over $10 billion [8][30] - The company successfully reduced net capital expenditures by 10% and identified an additional $1.3 billion in capital reductions to be realized in 2026 and 2027 [9] - Comparable earnings for the fourth quarter of 2024 were $1.1 billion, which was 8% lower than the fourth quarter of 2023 [27] Business Line Data and Key Metrics Changes - The Power and Energy Solutions business unit saw a 28% increase in quarterly EBITDA growth, driven by Bruce Power's 99% availability [25] - Canada Gas experienced a significant variance due to a $200 million incentive payment to Coastal GasLink in the fourth quarter of 2023 that was not repeated in 2024 [26] - The Mexico business posted gains primarily due to the weakening of the peso, as revenues are paid in US dollars [27] Market Data and Key Metrics Changes - The Ontario IESO projects a 69,000 megawatt shortfall in total installed capacity by 2050, driven by industrial expansion and population growth [16] - The company anticipates a threefold increase in LNG exports and strong growth in power generation due to coal retirements and data center demand [13] Company Strategy and Development Direction - TC Energy aims to maximize the value of its assets through safety and operational excellence, executing selective growth projects, and ensuring financial strength [40] - The company is focusing on filling its backlog of development projects, with a target of approximately $8 billion in capital between 2026 and 2030 [18] - The partnership with CFE on Southeast Gateway is seen as a critical component of achieving the goals outlined in Mexico's Plan 2030 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the alignment with the Mexican government's priorities and the role of natural gas deliveries [12] - The company remains focused on maintaining a debt to EBITDA ratio of 4.75 times while pursuing organic deleveraging efforts [36] - Management highlighted the importance of executing on time and on budget to improve credit ratings and maintain investor confidence [78] Other Important Information - The Board of Directors declared a first quarter 2025 dividend of $0.85 per common share, marking the 25th consecutive year of dividend growth [37] - Recent leadership changes were announced, with Tina Faraca appointed as Executive Vice President and Chief Operating Officer of Natural Gas Pipelines, and Greg Grant as Executive Vice President of Power and Energy Solutions [42][44] Q&A Session Summary Question: Update on Southeast Gateway in-service date and commercial contracts - Management confirmed the May 1 in-service date is consistent with previous guidance and discussed the status of relevant plants and potential gas supply [49][50] Question: Interest in developing integrated gas to power projects - Management indicated openness to bundled solutions but emphasized a focus on low-risk, complementary projects rather than growing an independent power generation company [56][58] Question: Next steps for Bruce C nuclear project - Management stated that while early in development, they are bullish on nuclear's role in meeting Ontario's energy demand and will not bear significant cost and schedule risk [70][72] Question: Update on leverage and balance sheet outlook - Management highlighted the importance of executing on the capital plan and maintaining a focus on organic deleveraging to improve credit ratings [78][79] Question: Update on Canadian mainline capacity and capital allocation - Management noted that spare capacity has changed due to strong demand and reiterated commitment to the $6 billion to $7 billion capital target [86][89] Question: Update on Columbia rate case - Management confirmed that rates for the Columbia gas system will go into effect in April 2025 [137]

Ingersoll Rand Inc. (NYSE:IR) Q4 2024 Earnings Conference Call February 14, 2025 8:00 AM ET Company Participants Matthew Fort - VP, IR Vicente Reynal - Chairman & CEO Vik Kini - CFO Conference Call Participants Michael Halloran - Baird Julian Mitchell - Barclays Jeff Sprague - Vertical Research Partners Rob Wertheimer - Melius Research Andy Kaplowitz - Citigroup Stephen Volkmann - Jefferies Chris Snyder - Morgan Stanley Nicole DeBlase - Deutsche Bank Nigel Coe - Wolfe Research Nathan Jones - Stifel David Ra ...