Planet Fitness Inc. (NYSE:PLNT) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Colleen Keating - Chief Executive Officer Jay Stasz - Chief Financial Officer Stacey Caravella - Vice President, Investor Relations Conference Call Participants Simeon Siegel - BMO Capital Markets Randal Konik - Jefferies Sharon Zackfia - William Blair Joe Altobello - Raymond James Rahul Krotthapalli - JP Morgan John Heinbockel - Guggenheim Partners Max Rakhlenko - TD Cowen Jonathan Komp - Bair ...

Financial Data and Key Metrics Changes - In 2024, the company generated over $1 billion in consolidated cash from operations and approximately $660 million of free cash flow, with more than 80% of that free cash flow coming from lottery operations [7][31] - The revenue for the year was $2.5 billion, consistent with 2023, with EBITDA of $1.2 billion at a 47% margin [8][27] - The company reported Q4 revenue of $651 million, down from $681 million in the prior year, primarily due to lower U.S. multi-state jackpot sales [23][24] - Adjusted EBITDA for the full year was $1.17 billion, down from $1.21 billion in the prior year [27] Business Line Data and Key Metrics Changes - Instant ticket and draw game sales increased by 4% in Q4, with a 7% same-store sales growth in Italy [10][23] - U.S. multi-state jackpot sales declined by $29 million due to lower jackpot activity compared to the previous year [25] - iLottery sales rose by 28% in both Q4 and the full year, maintaining a double-digit growth pace [13][14] Market Data and Key Metrics Changes - The company achieved strong growth in Italy, driven by new game launches and special draws [11][12] - Improving trends in large jurisdictions, including California, Florida, Georgia, New York, and Texas, contributed to increased sales [12] - The company is the leading iLottery platform supplier globally, with significant growth in jurisdictions like Georgia and Kentucky [14][15] Company Strategy and Development Direction - The company concluded a strategic review resulting in the sale of its gaming and digital business for over $4 billion, allowing a singular focus on its lottery business [6][21] - Future investments will focus on new game content and technologies to fuel sales growth and strengthen industry leadership [20] - The company is identifying structural cost savings to enhance efficiency and financial profile [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core recurring business, expecting revenue growth aligned with long-term expectations [36] - The company anticipates a challenging first half of 2025 due to lower U.S. multi-stage jackpot activity impacting service revenue [37][39] - The increase in Mega Millions ticket price to $5 is expected to positively impact sales in the latter half of 2025 [88][92] Other Important Information - The company plans to allocate at least $2 billion of the proceeds from the gaming and digital sale for debt reduction [31][45] - Annual CapEx is expected to be in the range of $400 million to $450 million for 2025 and 2026, with significant investments required for the Italy Lotto contract [34][35] Q&A Session Summary Question: Can you expand on the $25 million investment into new contract extensions and growth initiatives? - Management indicated that these costs are primarily temporary and necessary for securing new contracts and technology setups [50][54] Question: What are the expected uses of proceeds from the gaming and digital business sale? - Management confirmed a commitment to $2 billion for debt repayment, with further discussions on additional allocations to occur around the closing date [59][60] Question: Can you provide an update on the Italy lotto rebid process? - The RFP was issued in early January, with bids due by March 17, and the award is expected in Q2 [74][75] Question: How significant are carriers for driving draw-based sales? - Management noted that the impact of carriers varies by jurisdiction, with minimal effect on overall sales for IGT [78][82] Question: What is the expected impact of the Mega Millions price increase? - Management believes the price increase will lead to fewer tickets sold but at a higher price point, potentially increasing overall revenue [88][92] Question: Can you discuss the new printing press and its expected returns? - The new press is expected to improve both capacity and efficiency, leading to better margins and competitive positioning [100][101] Question: What is the status of the Texas lottery renewal process? - The bid has been submitted, and feedback is expected in the first half of 2025 [121] Question: What is the situation regarding LMA incentives for the first semester? - Management indicated a combination of shortfall and lower incentives compared to the previous year, with a conservative outlook for the first half of 2025 [122][124]

The Bank of Nova Scotia (NYSE:BNS) Q1 2025 Earnings Conference Call February 25, 2025 7:15 AM ET Company Participants John McCartney - Head of Investor Relations Scott Thomson - President and Chief Executive Officer Raj Viswanathan - Group Head and Chief Financial Officer Phil Thomas - Group Head and Chief Risk Officer Aris Bogdaneris - Group Head, Canadian Banking Jacqui Allard - Group Head, Global Wealth Management Francisco Aristeguieta - Group Head, International Banking Travis Machen - CEO and Group He ...

Kontoor Brands, Inc. (NYSE:KTB) Q4 2024 Earnings Call February 25, 2025 8:30 AM ET Company Participants Michael Karapetian - VP, Corporate Development, Strategy, and IR Scott Baxter - President, CEO, and Chairman Tom Waldron - COO Joe Alkire - EVP and CFO Conference Call Participants Ike Boruchow - Wells Fargo Jim Duffy - Stifel Brooke Roach - Goldman Sachs Paul Kearney - Barclays Mauricio Serna - UBS Operator Greetings and welcome to Kontoor Brands Q4 2024 Earnings Call. At this time, all participants are ...

Financial Data and Key Metrics Changes - Total revenue excluding the US reached an all-time high of €1.66 billion, growing 18% year-over-year [8] - Adjusted EBITDA excluding the US also set a record at €391 million, a 53% year-over-year increase, with a margin of 24% [8] - For Q4, total revenue excluding the US grew 38% year-over-year to €487 million, while adjusted EBITDA grew 152% year-over-year to €129 million, achieving a margin of 26% [9] Business Line Data and Key Metrics Changes - The US business saw revenue grow by 64% year-over-year to €14 million in Q4, with total investment for the quarter at €11 million, bringing the full year total to €61 million [12][13] - The company set new customer records, including a daily record of just under 2.2 million customers and an average of 5.3 million unique monthly active customers [10] Market Data and Key Metrics Changes - Growth in existing markets was emphasized, with a focus on profitability in new markets [30] - The company is seeing good growth in several European markets, while Germany has not performed well due to regulatory issues [38] Company Strategy and Development Direction - The company aims to refine its global footprint and focus on key growth markets while enhancing product and technology [7] - A shift to an iGaming-only strategy in the US is expected to lead to reduced investment and a path to profitability [13] - The company plans to increase its minimum quarterly dividend target to $0.04 per share, reflecting confidence in its business [15] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving robust growth in 2025, with expectations for total revenue to grow above 10% year-over-year to at least €1.83 billion [17] - The company is focused on sustainable growth supported by ongoing marketing investments [18] Other Important Information - The company finished the quarter with unrestricted cash of €356 million and no debt [14] - A special cash dividend of $0.15 per share was announced, totaling over $125 million returned to shareholders [15] Q&A Session Summary Question: Marketing spend for 2025 - Management confirmed that marketing spend is budgeted at 23% of revenue for 2025, which is expected to yield good returns [22][23] Question: Dividend increase and future special dividends - Management expressed satisfaction with the increased quarterly dividend and indicated a desire to exceed last year's total dividend, contingent on business conditions [24][25] Question: Growth opportunities in key markets - Management stated that growth is primarily from existing markets, with a focus on sustained profitability and product enhancements [30][31] Question: 2025 revenue guidance and performance - Management clarified that the guidance reflects a double-digit increase in revenue and adjusted EBITDA for the ex-US business, despite a year-over-year growth step down [42][46] Question: Contribution of African assets - Management noted that the African sportsbook has been beneficial, with a focus on maintaining a high marketing budget to enhance market share [49][50] Question: Regulatory environment and potential acquisitions - Management indicated that they are assessing acquisition opportunities globally, focusing on tuck-in M&A across regulated landscapes [59]

Financial Data and Key Metrics Changes - Revenue growth accelerated in Q4 2024 to 13% year-over-year, reaching $205 million, with net dollar retention improving to 99% from 96% in Q4 2023 [10][50] - Adjusted EBITDA margins were 42% for both Q4 and the full year, maintaining cost discipline while investing for future growth [13][52] - Full year revenue for 2024 increased 13% year-over-year to $781 million, driven by strong customer acquisition and growth in AI services [55][56] Business Line Data and Key Metrics Changes - Revenue from higher spend customers, including Builders and Scalers, grew 16% year-over-year in Q4, representing 88% of total revenue [48][49] - Scalers+ customers, those with an annual run rate of over $100,000, accounted for 22% of total revenue in Q4 and grew 37% year-over-year [11][49] - The AI/ML platform contributed over 160% ARR growth in Q4, exceeding initial guidance [12][55] Market Data and Key Metrics Changes - The company reported a 37% year-over-year increase in revenue from Scalers+ customers, indicating strong wallet share opportunities [12][49] - The number of Scalers+ customers increased by 17% year-over-year, reaching over 500 for the first time [11][58] Company Strategy and Development Direction - The company aims to enhance product innovation and customer engagement, focusing on larger customers' needs and AI/ML growth [15][41] - The upcoming Atlanta data center is part of a long-term optimization strategy, providing lower costs and increased capacity for both AI and core cloud offerings [14][60] - The company is committed to democratizing AI for customers, simplifying access to AI technologies and enhancing infrastructure offerings [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the baseline growth rate heading into 2025, with expectations of continued revenue growth in the low to mid-teens [13][61] - The company anticipates adjusted EBITDA margins to remain in the range of 38% to 40% for 2025, reflecting ongoing operational efficiencies [62][64] Other Important Information - The company released 49 new products and features in Q4, significantly increasing the pace of innovation compared to the previous year [16][41] - The company hosted the Deploy Conference, enhancing its presence in the developer and AI/ML space [39][40] Q&A Session Summary Question: Customer migration from hyperscalers - Management highlighted that customers are migrating due to the complexity and total cost of ownership associated with hyperscalers, emphasizing DigitalOcean's simplicity and scalability [68][70] Question: EBITDA guidance performance - Management explained that the outperformance in EBITDA was due to resource reallocation and prioritization of key initiatives, indicating a commitment to improving gross margins and operating efficiencies [73][75] Question: AI/ML ARR base size - Management did not disclose specific ARR for AI but noted that it is intermingled with other revenue streams, indicating a healthy mix of AI revenue among existing customer cohorts [90][92] Question: Gross margin outlook with new data center - Management expects a slight dip in gross margins initially with the new Atlanta data center, but overall confidence in maintaining gross margin levels throughout the year [97][100] Question: Product investment areas for 2025 - Management outlined continued investment in core cloud capabilities and AI innovations, focusing on meeting larger customer needs and enhancing the GenAI platform [111][113]

Financial Data and Key Metrics Changes - Fourth quarter sales were $184.4 million, down 12.5% year-over-year, with comparable store sales down 13.7% [5][20] - Total sales for the year decreased 16.1% to $722.9 million, with comparable sales down 16.7% [5] - Gross margins remained strong at 61.9% for the quarter and 60.7% for the year, despite a decrease of 50 basis points from the previous year [5][21] - Pre-tax profit for the quarter was $9.6 million, resulting in a 5.2% operating margin, while the annual pre-tax profit was $26.2 million with a 3.6% operating margin [6][21] - Net income for Q4 was $8.2 million or $0.49 per diluted share, compared to $15 million or $0.90 per share in the same quarter last year [24] Business Line Data and Key Metrics Changes - The design business accounted for approximately 32% of total business, with an average ticket of over $7,200, up over 8% [8] - Upholstery continued to perform well, with notable improvements in bedroom and mattress sales during the quarter [9] Market Data and Key Metrics Changes - Traffic improved slightly year-over-year in the low single digits for the quarter, with conversion rates stabilizing [7] - The average ticket rose by approximately 4% to just under $3,400 [8] Company Strategy and Development Direction - The company plans to roll out a new point of purchase and tagging program over the next two to three years to enhance customer experience [10] - Six new stores were opened in 2024, with plans for additional openings in Houston and other markets [12][13] - The supply chain team managed inventories effectively, reducing them by over 11% for the year, with expectations to increase inventories by 5% to 10% in the coming quarters [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about the housing market due to rising mortgage rates, which could affect affordability [6][48] - The company anticipates a challenging demand environment in 2025, but hopes for improvements in the latter part of the year [51] - Management is committed to driving volume and maintaining stable margins despite potential tariff impacts [40][41] Other Important Information - The company ended the year with zero funded debt and over $120 million in cash [6][25] - Capital expenditures for 2024 were $32.1 million, with plans for $27.1 million in 2025 [25][28] Q&A Session Summary Question: Can you provide details on monthly trends for written or delivered sales? - Delivered sales were down in the low teens for October, November, and December, averaging 12.5% for the quarter, while written sales showed improvement towards the end of the quarter [32][33] Question: Has any positive momentum carried into the first quarter? - Management refrained from commenting on Q1 performance [35] Question: Were there regional differences in performance during Q4? - Florida and the central part of the country showed a bounce back, while the west and east were slightly weaker [37] Question: Can you elaborate on gross margin guidance and tariff impacts? - Management plans to mitigate tariff impacts through vendor relations and pricing adjustments, expecting stable margins in 2025 [39][40] Question: What is the demand environment expected in 2025? - Management anticipates a tough environment due to housing struggles and rising mortgage rates, but hopes for improvements later in the year [48][51] Question: What are the challenges in converting traffic to orders? - Conversion remains a key opportunity, with management testing strategies to improve this metric [52][53] Question: What is driving the increase in fixed SG&A guidance? - The increase is attributed to general inflation and occupancy costs related to new store openings [55]

Diana Shipping Inc. (NYSE:DSX) Q4 2024 - Earnings Conference Call February 25, 2025 9:00 AM ET Company Participants Edward Nebb - Investor Relations Semiramis Paliou - Chief Executive Officer Maria Dede - Co-Chief Financial Officer Anastasios Margaronis - Director and President Conference Call Participants Operator Greetings, and welcome to the Diana Shipping Incorporated 2024 Fourth Quarter Conference Call and Webcast. [Operator Instructions]. It is now my pleasure to introduce Edward Nebb of Investor Rela ...

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) Q4 2024 Earnings Conference Call February 25, 2025 8:30 AM ET Company Participants Jonathan Kirshenbaum - Investor Relations Sanj Patel - Chairman and Chief Executive Officer John Paolini - Chief Medical Officer Ross Moat - Chief Commercial Officer Mark Ragosa - Chief Financial Officer Conference Call Participants Anupam Rama - JPMorgan Eva Fortea-Verdejo - Wells Fargo Paul Choi - Goldman Sachs Operator Good day and thank you for standing by. Welcome ...

TopBuild Corp. (NYSE:BLD) Q4 2024 Earnings Conference Call February 25, 2025 9:00 AM ET Company Participants P.I. Aquino - Vice President, Investor Relations Robert Buck - Chief Executive Officer & President Robert Kuhns - Chief Financial Officer Conference Call Participants Phil Ng - Jefferies Stephen Kim - Evercore ISI Susan Maklari - Goldman Sachs Keith Hughes - Truist Securities Rafe Jadrosich - Bank of America Ken Zener - Seaport Research Partners Kurt Yinger - D.A. Davidson Operator Ladies and gentlem ...