Financial Data and Key Metrics Changes - The company recorded revenue of $1.5 million for research and development services in Q4 2024, compared to no revenue in Q4 2023, resulting in an operating income of $100,000 [37] - Operating expenses decreased to $17.2 million in Q4 2024 from $32.6 million in Q4 2023, driven by lower powertrain exit costs and reduced SG&A expenses [38] - The total net loss for Q4 2024 was $14.4 million, down from $29.1 million in Q4 2023 [39] - Full-year operating expenses totaled $64.4 million in 2024, significantly lower than $136.3 million in 2023 [40] Business Line Data and Key Metrics Changes - The company has delivered its first early adopter customer unit, with plans to deliver ten units through mid-2025 [8][21] - Contracts and nonbinding LOIs have been executed for over 100 Carnot units, indicating strong customer interest across various sectors [10][25] - The company expects to generate revenues between $10 million and $15 million in 2025 from generator sales and R&D activities [21][45] Market Data and Key Metrics Changes - The company is seeing increasing demand for the Carnot generator, with LOIs spanning multiple market segments including EV charging, waste gas applications, oil and gas, and data centers [25] - A significant LOI was signed with a leading data center core for a deployment of two two-megawatt systems, targeting up to 70 megawatts of Carnot generator deployment [27][30] Company Strategy and Development Direction - The company is focused on scaling manufacturing capacity and strengthening its supply base to support higher production volumes in 2026 [24] - The Carnot generator is positioned as a compact, fuel-agnostic solution with low emissions and maintenance requirements, appealing to data center customers [29] - The company aims to commercialize the Carnot generator in the second half of 2025, with revenue recognition expected from early adopter units [21][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong and growing interest from customers, particularly in the data center space [52] - The company is addressing supply chain challenges and has made progress in refining its production processes [17][106] - Management anticipates that the capital on hand will be sufficient to support the commercialization of the Carnot generator [51] Other Important Information - The company received a $6 million Department of Energy grant to support methane emissions reduction in the oil and gas sector [30] - The company has begun recognizing revenue for R&D services related to the Carnot generator, totaling $1.5 million in Q4 2024 [35] Q&A Session Summary Question: Can you tell us more about this first early adopter unit and who is it going to and where is it located - The first early adopter unit is going to the US Navy for testing and validation, with plans for deployment in military vessels and stationary applications [56][57] Question: How does Carnot fit in the competitive landscape against fuel cells and traditional natural gas gensets - The Carnot generator offers a compact footprint, fuel flexibility, and low emissions, making it competitive against both fuel cells and natural gas engines [64][68] Question: Can you talk about the visibility you have regarding additive printing and cost reduction - The new GE mLine printer significantly increases production capacity, and the company is also focused on negotiating volume commitments with suppliers to drive down costs [78][84] Question: Can you share more about the Middle East opportunity with Al Khouri - The initial gensets will be used in agricultural applications, providing a modular power solution with lower operating costs and fuel flexibility [88][90] Question: What is the business model moving forward with data centers - Initially, the company will maintain the generators, but long-term partnerships with established service providers are planned for maintenance [95]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $1.6 billion, down approximately 10% compared to the same quarter last year, primarily due to lower sales in the retail business and reduced consumer traffic [44][50] - GAAP operating income for Q4 was $20 million, down from $52 million in the prior year, with adjusted operating income at $32 million compared to $57 million [45][50] - Adjusted net income from continuing operations for Q4 was $20 million or $0.66 per diluted share, down from $43 million or $1.13 per diluted share in the prior year [47][50] - Full-year 2024 total company sales were $7 billion, down from $7.8 billion in 2023, with adjusted net income from continuing operations at $114 million or $3.30 per share, compared to $263 million or $6.61 per share in the prior year [49][51] Business Line Data and Key Metrics Changes - ODP Business Solutions revenue for Q4 was $827 million, down 9% year-over-year, influenced by a weak macroeconomic environment and reduced enterprise spending [54] - Office Depot's revenue for Q4 was $784 million, a 13% decline driven by fewer retail stores and lower consumer demand [58] - Veyor's third-party revenue increased by 150% year-over-year, reaching $20 million, while consolidated sales were $1.1 billion [63] Market Data and Key Metrics Changes - The hospitality industry represents a $16 billion market, with ODP securing a key supplier agreement, marking a significant entry into this growing sector [16][28] - The overall addressable market opportunity, including healthcare and other sectors, is estimated to exceed $60 billion [32] Company Strategy and Development Direction - The company is focusing on a B2B pivot, expanding beyond traditional office supplies into higher growth segments, including hospitality and healthcare [12][34] - An "optimized for growth" restructuring plan has been launched to accelerate revenue growth in B2B while reducing reliance on retail operations [34][36] - The company aims to leverage its supply chain and distribution capabilities to capture new business opportunities and enhance customer service [13][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 due to macroeconomic factors and competitive pressures but expressed optimism about future growth opportunities [10][38] - The company expects to see benefits from its B2B initiatives and the hospitality sector, with a focus on long-term sustainable growth [41][78] Other Important Information - The company ended the quarter with total liquidity of $644 million and total debt of $279 million, maintaining a solid balance sheet [66] - Capital expenditures in Q4 were $25 million, flat with the prior year, primarily focused on growth investments [48] Q&A Session Summary Question: Can you discuss the genesis of the hospital deal? - The deal originated from an existing relationship, with the customer recognizing the need for a reliable supply chain, leading to ODP being selected as a preferred partner [81][82] Question: How should we think about the revenue ramp from this deal? - The revenue ramp will be a combination of exclusive products and a "hunting license" approach, with joint sales efforts expected to enhance growth [90] Question: What is the timeframe for the optimize for growth plan? - The plan is a multiyear initiative, expected to take three to four years to realize the projected EBITDA uplift [94] Question: Have you considered strategic alternatives for the retail business? - The company is always exploring ways to maximize shareholder value, including potential strategic alternatives for the retail segment [97] Question: What are your assumptions for growth in the B2B office suppliers market? - The B2B segment is expected to hold steady, with ongoing challenges in the office supply sector making market share difficult to gauge [106] Question: How much exposure does ODP have to the federal government? - ODP does not have significant exposure to federal business at this moment [112]

Financial Data and Key Metrics Changes - Adjusted diluted earnings per common share decreased to $0.25 from $0.43 in the prior year quarter [8] - Core revenue increased to $386.4 million, up 5.7% year-over-year, driven by higher net premiums earned, net investment income, and commission revenue [9] - Direct premiums written rose to $470.9 million, an increase of 8.8% from the prior year quarter [9] - Net combined ratio increased to 107.9%, up 4.2 percentage points compared to the prior year quarter [11] - The loss ratio was 82.3%, up 0.4 percentage points compared to the prior year quarter [12] Business Line Data and Key Metrics Changes - Direct premiums earned were $519.3 million, up 7.7% year-over-year [10] - Net premiums earned increased to $348.4 million, up 3.9% from the prior year quarter [10] - Growth in Florida was 0.8%, while other states saw a significant growth of 38.4% [9] Market Data and Key Metrics Changes - The company experienced three hurricanes in 2024, impacting claims trends [5] - The company filed a modest rate decrease in Florida, correlated with legislative changes made in December 2022 [6] Company Strategy and Development Direction - The company is focused on profitability and writing business where it makes the most sense, with a strong emphasis on rate adequacy across all markets [19] - Growth in other states is attributed to entry into new markets over the last 12 months [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the reinsurance market, noting that 92% of the first event catastrophe tower has already been placed for 2025 [22] - The company is pleased with the interest from reinsurers and the renewal of multiyear capabilities, which alleviates pressure [23] Other Important Information - The company repurchased approximately 370,000 shares at an aggregate cost of $7.7 million [13] - A quarterly cash dividend of $0.16 per common share was declared, payable on March 14, 2025 [14] Q&A Session Summary Question: Can you discuss the size of the reserve development in the quarter and the level of cat losses? - The net retention event from Hurricane Milton was $45 million, with prior year development down significantly to $45 million from $76 million [17] Question: Can you provide more details on growth efforts and reinsurance renewals? - The company is focused on profitability and has seen growth in new markets, with a positive outlook on reinsurance renewals [19][22]

Financial Data and Key Metrics Changes - In Q4 2024, sales were $96 million with a gross profit of $22.5 million, yielding a gross margin of 23.4% [14][76] - Adjusted EBITDA for Q4 was $13.8 million, representing a margin of 14.4%, and adjusted EPS rose to $0.29, up 61% year over year [14][76] - For the full year 2024, sales totaled $362.3 million with adjusted EBITDA of $49.8 million at a 13.7% margin [16][78] - Free cash flow reached $47.7 million, benefiting from lower cash tax and working capital management [16][78] Business Line Data and Key Metrics Changes - The Electron segment saw sales rise 31.6% year over year to $47.5 million, driven by strong defense demand [17][79] - Adjusted EBITDA for Electron increased to $9.4 million, representing a 19.8% margin, marking the fourth consecutive quarter of margin expansion [19][81] - Gas Cylinders reported sales of $48.5 million, down about 6% year over year but up 14% from Q3, with adjusted EBITDA at $4.4 million [21][83] Market Data and Key Metrics Changes - Defense demand in Electron was a significant driver of revenue growth, while alternative fuel volumes in gas cylinders faced headwinds [15][76] - The Class eight truck market is expected to decline in 2025, impacting CNG cylinder sales, which are projected to be light in early 2025 [106][108] Company Strategy and Development Direction - The company is focused on selling its graphic arts business to streamline its portfolio and concentrate on higher margin opportunities, with completion expected in the first half of 2025 [8][71] - Investments in R&D and operational efficiencies are prioritized to address potential market headwinds and maintain long-term success [12][73] - The company is advancing clean energy innovation, particularly in hydrogen transportation solutions, with new products gaining certifications for commercialization [34][94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties while maintaining a focus on operational efficiency and innovation [11][88] - The outlook for 2025 anticipates relatively unchanged business performance with some near-term headwinds, particularly in clean energy [28][90] - Despite challenges, core business areas such as defense applications and SCBA remain strong contributors to growth [30][91] Other Important Information - The company reduced net debt to $41 million, marking a reduction of $28.9 million in 2024 [14][76] - The company expects free cash flow of $20 million to $25 million in 2025, reflecting the absence of one-time benefits from 2024 [87][86] Q&A Session Summary Question: Financial impact of the pull forward in Q4 - The quantified pull forwards in Q4 amounted to $3.4 million, primarily from defense-related orders [44][104] Question: Development of the CNG market - The CNG market in North America is expected to be competitive and lumpy, with initial trials by fleet operators [106][108] Question: Update on the graphic arts sale - The sale is on track for completion in the first half of 2025, with an exclusive agreement with Avaya [52][111] Question: Tariff impact on guidance - The impact of tariffs is expected to be minimal, with potential sales fluctuations of $20 to $25 million [54][114] Question: Details on elevated CapEx in 2025 - CapEx is projected to be 30% to 40% higher in 2025, focusing on growth, cost reduction, and infrastructure projects [56][116]

International Money Express Inc. (NASDAQ:IMXI) Q4 2024 Earnings Conference Call February 26, 2025 9:00 AM ET Company Participants Alex Sadowski - Investor Relations Coordinator Bob Lisy - Chairman, Chief Executive Officer and President Andras Bende - Chief Financial Officer Chris Hunt - Chief Operating Officer Conference Call Participants Gus Gala - MCH & Company David Scharf - Citizens Mike Grondahl - Northland Chris Zhang - UBS Operator Hello, and welcome to the International Money Express Inc. Fourth Qua ...

NRG Energy, Inc. (NYSE:NRG) Q4 2024 Earnings Call Transcript February 26, 2025 9:00 AM ET Company Participants Kevin Cole - Senior Vice President of Corporate Finance, Treasury & Investor Relations Larry Coben - President, CEO & Chairman of the Board Bruce Chung - EVP & CFO Rob Gaudette - Executive Vice President of NRG Business Conference Call Participants Julien Dumoulin - Jefferies Shahriar Pourreza - Guggenheim Partners Durgesh Chopra - Evercore ISI Angie Storozynski - Seaport Michael Sullivan - Wolfe R ...

Financial Data and Key Metrics Changes - In 2024, consolidated net sales grew by 10% to $1.452 billion, with adjusted earnings before impairment at $5.18 per diluted share, exceeding guidance of $5.15 [6][42] - Gross margin was 64.5% for Q4 and 63.9% for the full year, consistent with prior periods [42] - Operating income before impairment increased by 11% to $279 million, with an operating margin of 19.2% [44][45] - The effective tax rate improved to 24.2%, down from 24.8% in 2023 [45] Business Line Data and Key Metrics Changes - European-based operations saw a 10% sales increase for the year, with a 6% increase in Q4 [46] - US-based operations achieved a 12% sales increase for the year, with a 16% increase in Q4 [51] - Jimmy Choo sales increased by 7%, Guess by 13%, and Donna Karan generated over $100 million in sales [9][10][50] Market Data and Key Metrics Changes - North America sales grew by 6%, Western Europe by 21%, and Asia Pacific by 3% in 2024 compared to 2023 [19] - Travel retail sales increased by 20% from 2023 [19] - Direct sales to retailers, including travel retail, represented approximately 49% of net sales, up from 47% the previous year [20] Company Strategy and Development Direction - The company plans to introduce bold new fragrances in 2025, focusing on blockbusters and high-quality scents [26][29] - A new proprietary brand, Solferino, will launch with ten niche fragrances in an ultra-selective distribution channel [29] - The company aims to streamline its supply chain and transition to third-party logistics to enhance efficiency [31] Management's Comments on Operating Environment and Future Outlook - The fragrance market is expected to continue its positive trajectory, albeit at a slower pace, with potential headwinds from tariffs and currency fluctuations [32][35] - Management remains confident in achieving record sales and earnings in 2025, maintaining guidance of $1.51 billion in net sales and EPS of $5.35 [58] - The company anticipates a more competitive landscape, with many competitors experiencing eroding margins [68][70] Other Important Information - The company has discontinued the Dunhill brand and will phase out the Boucheron license by the end of 2025 [30][112] - Significant investments in advertising and promotion totaled $281 million, with a focus on brand awareness and growth [43][81] Q&A Session Summary Question: Can you discuss the destocking in the industry? - Management noted that destocking effects were moderate in Q4, with the gap between sell-in and sell-out reduced [62][64] Question: How is competition changing, and will market share be gained in 2025? - Management observed that competitors are experiencing eroding margins, but they believe their innovation will help gain market share [66][70] Question: When will the Ferragamo blockbuster launch? - The Ferragamo fragrance is expected to launch in Q2, with significant selling in the US, Italy, and Mexico [72][73] Question: What are the trends in specific markets? - The US market showed strong growth in Q1 and Q3, but moderated in Q4, with expectations of mid-single-digit growth moving forward [78][80] Question: How will top brands perform in 2025? - Significant growth is expected from brands like Guess, Ferragamo, and Lacoste, while larger brands may see more moderate growth [110][112]

Financial Data and Key Metrics Changes - Consolidated EBITDA grew by 11.4% organically and 12.1% excluding Argentina [21] - Normalized profit declined by 2.3% due to increased tax deductibility issues in Brazil, with nearly 60% of net value added going to taxes, up from 53% the previous year [22] - Free cash flow to equity increased by 37%, totaling nearly R$18 billion [15][25] - Gross margin expanded by 170 basis points organically and EBITDA margin expanded by 200 basis points organically [23] Business Line Data and Key Metrics Changes - Volumes excluding Argentina grew by 1.4%, with mega brands increasing by 7.6% [14] - In Brazil, beer industry volumes increased by 0.6%, with core brands growing by low teens, while Skol volumes declined [17] - Non-alcohol beer segment grew by 20%, led by Corona Cero and Budweiser Zero [18] Market Data and Key Metrics Changes - In Argentina, the beer industry declined by low 20s, but market share remained stable [19] - Dominican Republic volumes grew by mid-single digits, driven by the Presidente family of brands [19] - In Canada, total volumes declined by 3.1%, despite a positive performance in Q4 [20] Company Strategy and Development Direction - The company aims to lead and grow the beer category, digitize and monetize its ecosystem, and optimize its business for sustainable value creation [35][38] - Focus on expanding margins and improving earnings per share while continuing to invest in organic growth opportunities [27][78] - Emphasis on productivity and revenue management to overcome cost inflation challenges [75][76] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive landscape in Brazil, emphasizing that competition strengthens the category [126] - The company sees potential for growth in per capita consumption and opportunities to develop the beer category in various occasions [120][123] - Management is committed to margin expansion despite cost headwinds, particularly in Brazil [27][128] Other Important Information - The company has executed approximately 45% of its current share buyback program and approved R$2 billion in intermediary dividends to be paid in April [16][26] - Digital transformation has been a key enabler, with over 88% of gross revenues transacted through the BEES platform [11] Q&A Session Summary Question: Insights on Skol's performance and its importance - Management acknowledged Skol's decline in 2024 and emphasized its priority for 2025, highlighting its significance in the portfolio and market [41][50] Question: Regional performance differences in Brazil - Management confirmed that regions like the North and Northeast led in volume growth, consistent with overall trends [53] Question: Position of mega brands and pricing strategies - Management discussed the importance of a diverse portfolio and the need for strategic pricing to maintain competitiveness [56][112] Question: Inorganic growth opportunities - Management stated that organic growth remains the priority, but they are open to inorganic opportunities that align with strategic goals [71][78] Question: Marketing investments and distribution costs outlook - Management indicated a commitment to continue investing in marketing while managing distribution costs effectively [86][88] Question: Update on BEES marketplace and profitability - Management reported a 47% year-over-year growth in GMV for BEES, emphasizing the importance of partnerships and distribution capabilities [101][106]

Financial Data and Key Metrics Changes - In 2024, adjusted EBITDA was $239 million, with adjusted net income reported at $21 million or $0.37 per share [7][27] - Fourth-quarter adjusted EBITDA was $11 million, with a loss of $43 million or $0.79 per share [27] - The refining segment reported an adjusted EBITDA loss of $22 million in the fourth quarter compared to an adjusted EBITDA of $20 million in the third quarter [28] Business Line Data and Key Metrics Changes - The retail segment achieved adjusted EBITDA of $22 million in the fourth quarter, up from $21 million in the third quarter, driven by expanding fuel margins and lower operating costs in Hawaii [34] - The logistics segment reported a record fourth-quarter adjusted EBITDA of $33 million, attributed to higher system utilization in Hawaii and lower operating costs in Montana [34] Market Data and Key Metrics Changes - Hawaii throughput was strong at 83,000 barrels per day, with production costs at $4.42 per barrel [19] - Washington throughput was 39,000 barrels per day, with production costs at $4.34 per barrel [19] - Wyoming throughput was 14,000 barrels per day, with production costs at $11.49 per barrel [20] - Montana throughput was 52,000 barrels per day, with production costs at $10.48 per barrel [21] Company Strategy and Development Direction - The company is focused on executing key projects to enhance earnings power, including the Montana FCC and Alky turnaround and the startup of the Hawaii SAF unit in the second half of 2025 [14][15] - The company aims to maintain a strong balance sheet to support strategic objectives and invest through refining cycles, having repurchased nearly five million shares or 9% of outstanding shares [17][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the refining outlook due to tight supply and demand balances, higher European natural gas prices, and operational challenges in the industry [10][11] - The company anticipates improving clean product markets in the Northern Rockies and expects Hawaii throughput to range between 79,000 and 82,000 barrels per day in the first quarter [25][32] Other Important Information - The company experienced an operational incident at its Wyoming facility, which is expected to restore partial operations targeting 50% utilization by mid-April and full rates before Memorial Day [9][24] - The board of directors reauthorized management to purchase up to $250 million of common stock, allowing for opportunistic repurchases [38] Q&A Session Summary Question: Share repurchase authorization and balance considerations - Management indicated that the reauthorization opens additional capacity for share repurchases, with a dynamic approach to balancing repurchases versus debt reduction [41][42] Question: Confidence in the SAF project in Hawaii - Management highlighted low operating costs and logistical advantages as key factors for confidence in the SAF project, which is expected to have flexibility in monetizing the product [44][46][49] Question: Turnaround work at Wyoming and ramp-up details - Management confirmed opportunities to pull work scope forward but noted that some catalyst life issues may still necessitate a planned outage in 2026 [54][56] Question: Monetizing the Laramie asset - Management acknowledged increased interest in the gas market and emphasized the importance of maximizing unitholder value while considering the asset's non-core status [60][61] Question: Insurance coverage for the Wyoming outage - Management stated that adequate property and PI coverage is in place, with lost profits dependent on market responses [65][68] Question: Diverging trends in Hawaii and Washington capture - Management noted strong performance in Hawaii driven by clean product freight, while Washington faced challenges due to weak asphalt demand and overall market conditions [71][74] Question: M&A opportunities - Management indicated a focus on internal execution rather than acquisitions, with a high bar for any potential M&A opportunities given current market conditions [76][77] Question: West Coast supply dynamics - Management confirmed that the Washington index improved by $7 in February and discussed potential tightness in the West Coast market due to maintenance schedules [80][84]

Arhaus, Inc. (NASDAQ:ARHS) Q4 2024 Earnings Conference Call February 26, 2025 8:30 AM ET Company Participants John Reed - Co-Founder, Chairman and Chief Executive Officer Tara Atwood - Vice President, Investor Relations Jennifer Porter - Chief Marketing and eCommerce Officer Ryan Brody - Senior Vice President of Finance Conference Call Participants Julio Marquez - Guggenheim Securities Peter Keith - Piper Sandler Cristina Fernandez - Telsey Advisory Group Jonathan Matuszewski - Jefferies Philip Blee - Wil ...