International Seaways (INSW) Q4 2024 Earnings Call February 27, 2025 11:19 PM ET Company Participants James Small - Chief Administrative Officer, Senior VP, General Counsel & SecretaryLois Zabrocky - President and Chief Executive OfficerJeffrey Pribor - CFO, Senior VP & TreasurerBenjamin Nolan - Managing DirectorDerek Solon - Senior VP & Chief Commercial OfficerOmar Nokta - Managing DirectorLiam Burke - Managing DirectorSherif Elmaghrabi - Equity Research AssociateWilliam Nugent - Senior VP & Chief Technica ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $4 million, a decrease of 10% compared to $4.4 million in Q4 2023, primarily due to lower instrument sales and no grant revenue recognized in the quarter [34] - Full-year 2024 total revenue was $14.2 million, representing a decrease of 15% compared to $16.7 million in 2023 [39] - Net loss for Q4 2024 was $21.7 million compared to $17.8 million in Q4 2023, while the full-year net loss was $86.6 million compared to $86.3 million in 2023 [39][46] - Gross profit for Q4 2024 was $2 million with a gross margin of 51%, compared to $2 million and a gross margin of 45% in Q4 2023 [37] Business Line Data and Key Metrics Changes - Product revenue for Q4 2024 was $2.4 million, including $36,000 of related party revenue, consisting of sales of SP100 instruments and consumable kits [34] - Service revenue for Q4 2024 was $1.6 million, primarily related to STAC service projects [36] - Full-year product revenue was $10.2 million, including $1.5 million of related party revenue, while service revenue was $3.8 million for the full year [41] Market Data and Key Metrics Changes - The company served over 135 customers across 20 countries, with significant demand from large biopharma companies [10][22] - Approximately 12% of total revenue in 2024 came from government entities, with an additional 18% from academic groups [80] Company Strategy and Development Direction - The company aims to transition from a pioneer of deep unbiased proteomics to a trusted partner for discovery and translational studies [11] - Strategic initiatives include validating the platform, enhancing access to the Proteograph product suite, and driving innovation through technology enhancements [12] - The company plans to continue investing in direct sales and support throughout 2025 to capitalize on increasing demand [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite ongoing macroeconomic challenges, expecting revenue in the range of $17 million to $18 million for 2025, representing a 24% growth at the midpoint over 2024 [51] - The NIH and government funding environment remains uncertain, which may impact revenue from government and academic customers [52][84] Other Important Information - The company repurchased approximately 6.5 million shares during 2024, reducing total shares outstanding by approximately 10% [47] - Free cash flow loss was approximately $49.4 million for 2024, significantly less than the loss of $66.4 million in 2023 [49] Q&A Session Summary Question: Guidance for 2025 and instrument placement - Management indicated that instrument placements in 2025 are expected to be significantly different from 2024, with a stronger pipeline anticipated [58][60] Question: STAC program performance and revenue trajectory - Management noted that STAC revenue is expected to increase as technology validation improves, but capacity will remain consistent [66][68] Question: NIH funding risks and customer hesitance - Management acknowledged uncertainty among customers regarding NIH funding, but expressed optimism that science and innovation will prevail [84][86] Question: Publication pipeline for 2025 - Management expects the pace of publications to continue accelerating in 2025, driven by successful customer projects [90][92] Question: Co-marketing agreement with Thermo Fisher - Management is modest in expectations for the Thermo Fisher collaboration in 2025 but remains excited about its potential [101][102]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $86.3 million, a 31% increase year-over-year, and total revenue for the full year 2024 reached $332.1 million, reflecting a 51% increase compared to 2023 [10][31] - The company achieved a gross margin of 76.2% in Q4 2024, down from 77.8% in Q4 2023, while the full year gross margin improved to 78.5% from 75.4% in 2023 [33] - Net income for Q4 2024 was $9.6 million compared to a net loss of $2.6 million in Q4 2023, and for the full year, net income was $18.2 million compared to a net loss of $57.5 million in 2023 [38][39] Business Line Data and Key Metrics Changes - The dermatology business, including DecisionDx-Melanoma and DecisionDx-SCC, grew by 17% in 2024 compared to 2023, with DecisionDx-Melanoma reporting 36,008 test reports, an 8% increase [12][21] - DecisionDx-SCC saw a significant increase in test report volume, delivering 16,348 reports in 2024, a 43% increase from 2023 [21] - TissueCypher test reports surged to 20,956 in 2024, representing a 130% growth compared to 9,100 in 2023 [26] Market Data and Key Metrics Changes - The addressable market for DecisionDx-Melanoma is estimated at approximately 130,000 patients, with the company achieving about 28% market penetration by the end of 2024 [13] - For DecisionDx-SCC, the addressable market is around 200,000 patients, with an 8% market penetration [22] - The addressable market for TissueCypher is estimated at 415,000 patients per year in the U.S., with a 5% market penetration by the end of 2024 [28] Company Strategy and Development Direction - The company plans to focus on strong execution and sound capital allocation strategies, including exploring strategic opportunities for growth [42][43] - There is an emphasis on expanding the commercial team and increasing awareness and education regarding the company's tests, particularly TissueCypher [28] - The company is also considering reallocating resources towards the DecisionDx-Melanoma test in response to potential reimbursement challenges for DecisionDx-SCC [60][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2025 with financial and operational strength, driven by a commitment to innovation and improving patient outcomes [44] - The anticipated loss of Medicare coverage for DecisionDx-SCC is expected to impact revenue, with guidance for 2025 total revenue projected between $280 million to $295 million [32] - Management noted that while they expect some volume growth for DecisionDx-Melanoma in 2025, the first quarter may see flat or slightly down volumes due to typical seasonality [21] Other Important Information - The company ended 2024 with cash, cash equivalents, and marketable securities totaling $293.1 million, which is expected to support long-term growth initiatives [11][42] - Adjusted EBITDA for the full year 2024 was $75 million, a significant improvement from a negative $4.4 million in 2023 [40] Q&A Session Summary Question: Concerns about DecisionDx-Melanoma adoption in academic centers - Management noted that despite some hesitance in academic centers, there was substantial growth in new first-time ordering clinicians for the melanoma test [46][47] Question: Update on atopic dermatitis gene expression profile test - Management indicated that they expect to launch the test in late 2025, pending successful validation study results, and will provide clarity on reimbursement strategies in the coming months [49][52] Question: Commercial strategy for DecisionDx-SCC amid reimbursement issues - Management stated that they would likely continue offering the test to patients and clinicians while exploring options to regain Medicare coverage [58][60] Question: Strategic opportunities for capital allocation - Management is considering both existing and new verticals for investment, focusing on enhancing current commercial efforts and exploring external opportunities [63][65] Question: Adjusted EBITDA expectations for 2025 - Management reiterated that they expect to be adjusted EBITDA positive for the year but did not provide specific guidance [66] Question: Residual payments from non-Medicare payers for DecisionDx-SCC - Management indicated that there are not significant commercial payments for DecisionDx-SCC at this time [71] Question: M&A market in diagnostics - Management acknowledged that while there are many assets in the diagnostic space, they maintain a disciplined approach to acquisitions [73] Question: SG&A modeling for 2025 - Management confirmed that there would be some expansions to the TissueCypher salesforce, but no sweeping changes to the overall salesforce structure [75] Question: Impact of hurricanes and holidays on Q4 performance - Management noted that it is difficult to predict when patients will be rescheduled, but they expect typical seasonality for Q1 [78][79]

Financial Data and Key Metrics Changes - For the year ended December 31, 2024, revenue totaled $1 million, an increase from $0 in 2023, due to an upfront license fee related to a collaboration agreement [15] - Operating expenses decreased to $23.4 million in 2024 from $25.7 million in 2023, representing a reduction of $2.3 million or 8.9% [15] - Net losses were $20 million in 2024 compared to $20.8 million in 2023, indicating a slight improvement in financial performance [17] - Cash, cash equivalents, and marketable securities as of December 31, 2024, were approximately $31.2 million, expected to support operations into the second quarter of 2026 [18] Business Line Data and Key Metrics Changes - Research and development expenses were approximately $11.3 million in 2024, down from $12.7 million in 2023, a decrease of approximately $1.4 million or 11% [15] - General and administrative expenses decreased to approximately $12.1 million in 2024 from $13 million in 2023, a reduction of approximately $0.9 million or 6.9% [16] Market Data and Key Metrics Changes - The company is actively evaluating the potential of certepetide in various therapeutic areas, including oncology and endometriosis, indicating a broadening of market focus [11][40] Company Strategy and Development Direction - The company is focused on advancing its development portfolio centered around certepetide for treating advanced solid tumors and exploring additional anticancer combinations [9] - Certepetide has received several regulatory designations, including orphan drug and fast track designations, which support its strategic clinical development plan [25] - The company aims to progress certepetide into a Phase 3 study in pancreatic cancer, contingent on data from ongoing trials [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025 being a data-rich year with several key milestones on the horizon [11][46] - The company is committed to prudent capital management while advancing its R&D and business activities [17] Other Important Information - The company received $0.9 million in non-dilutive funding through a tax certificate transfer program, enhancing its financial position [19] - The collaboration with Kuva Labs aims to explore the synergistic potential of certepetide in imaging technology for solid tumors [41][42] Q&A Session Summary Question: Insights on ASCEND trial data from Cohort B - Management expects data from Cohort B to be similar to Cohort A, focusing on progression-free survival and overall survival [50][51] Question: Timing for ASCEND Cohort B data release - Data is anticipated to be available between the second and third quarter of 2025, potentially aligning with major oncology meetings [56][58] Question: Market reaction to Cohort A results - Management noted that the market may have misinterpreted the significance of the results, emphasizing the importance of complete trial data [60][62] Question: Future diagnostics from Kuva deal - The intention is to develop diagnostics that could enhance patient selection for treatment with certepetide [66][68] Question: Expectations from pharmaceutical partners - Partners are looking for complete trial results and consistent therapeutic effects to inform Phase 3 trial design [77][78] Question: Alternative approaches for the FORTIFIDE trial - The company is exploring imaging techniques as a potential alternative to traditional endpoints for the trial [86][87]

Cactus Inc. (NYSE:WHD) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants Alan Boyd - Director of Corporate Development & Investor Relations Scott Bender - Chief Executive Officer & Chairman of the Board Jay Nutt - Executive Vice President, Chief Financial Officer and Treasurer Steven Bender - Chief Operating Officer Conference Call Participants Stephen Gengaro - Stifel Arun Jayaram - J.P. Morgan Securities Scott Gruber - Citigroup Operator Good day, and thank you for standi ...

Financial Data and Key Metrics Changes - Full year 2024 adjusted net investment income was $1.52 per share, down from $1.84 per share in 2023, with an annualized net investment income ROE of 14.5% [10] - Fourth quarter adjusted net investment income per share was flat at $0.36 compared to the previous quarter, with NAV per share decreasing to $9.23 from $10.11 [11][10] - Non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter [11] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 154 companies, with 91.2% in senior secured loans [30] - The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% in the previous quarter [31] - New investments had a weighted average yield of 10.8%, while exited investments had a yield of 14% [32] Market Data and Key Metrics Changes - The overall M&A volumes remained below expectations, but there was a healthy flow of new investment opportunities [33][39] - The weighted average interest rate on debt outstanding decreased to 5.2% from 5.4% in the prior quarter [50] Company Strategy and Development Direction - The company plans to focus on the core middle market with a proactive approach to sourcing and underwriting, while also opportunistically investing in lower and upper middle market companies [24] - A highly diversified portfolio will be maintained, limiting exposure to specific industry subsectors [26] - The company will prioritize investing in first lien loans and deepen connections with the broader BlackRock platform for competitive advantage [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future and confidence in their strategic plan to navigate challenges in 2024 [10] - The company acknowledged the impact of lower base rates and increased non-accruals on performance, emphasizing a focus on resolving credit issues [12][10] - Management highlighted the importance of thoughtful solutions for resolving credit issues, which may take time [13] Other Important Information - The Board decided to reduce the regular dividend to $0.25 per share for the first quarter, while also declaring a $0.04 special dividend [20][21] - The advisor agreed to waive one-third of the base management fee for three quarters beginning January 1, 2025 [22] Q&A Session Summary Question: Can you provide details on the spillover and target level for dividends? - The company has about $0.10 of carryover from the prior quarter and aims for a sustainable regular dividend level based on current earnings power [54][55] Question: Will there be any strategic changes due to the BlackRock HPS acquisition? - Management does not expect meaningful changes and emphasizes a focus on business as usual, while highlighting expanded resources from the acquisition [58][60] Question: What level of confidence is there regarding future markdowns? - Management is focused on managing existing non-accruals and believes most markdowns have been centered around known assets [67][70] Question: What are the risks associated with new non-accruals like Renovo? - Management believes Renovo's issues are primarily operational and less exposed to external factors like tariffs due to its focus on smaller projects [74][76] Question: Is the management fee waiver related to the HPS acquisition? - Management clarified that the fee waiver is a thoughtful approach to acknowledge NAV decline and is not specifically timed with the HPS acquisition [79] Question: What steps are being taken to maintain investment grade rating? - The company is focused on maintaining its investment grade rating and plans to access capital markets closer to the maturity date of its notes [85][88] Question: What has changed regarding NAV per share? - The decrease in NAV is attributed to broader factors including rapid rate increases and a slower growth environment impacting borrowers [90][92]

LENSAR (LNSR) Q4 2024 Earnings Call February 27, 2025 10:36 PM ET Company Participants Cameron Radinovic - Vice President, Investor RelationsNicholas Curtis - CEOThomas Staab - CFO Conference Call Participants Frank Takkinen - Senior Research AnalystNone - Analyst Operator Good morning and thank you for your participation. At this time, all participants are in listen only mode. Later, we will conduct a question and answer session. As a reminder, this conference is being recorded. I would now like to turn th ...

Financial Data and Key Metrics Changes - Consolidated operating income and net sales in Q1 2025 increased by 26% and 15% respectively compared to Q1 2024, reaching record levels [10] - Consolidated net income rose 46% to a record $168 million or $1.20 per diluted share, up from $114.7 million or $0.82 per diluted share in Q1 2024 [10] - Cash flow from operating activities increased by 82% to $203 million in Q1 2025, compared to $111.7 million in Q1 2024 [12] - Consolidated EBITDA increased by 22% to $273.9 million in Q1 2025, up from $224.4 million in Q1 2024 [13] Business Line Data and Key Metrics Changes - Flight Support Group (FSG) achieved record operating income and net sales, increasing by 22% and 15% respectively over Q1 2024, with net sales reaching $713.2 million [11][18] - Electronic Technologies Group (ETG) saw operating income and net sales improve by 38% and 16% respectively, with net sales reaching $330.3 million [27][28] Market Data and Key Metrics Changes - The FSG's organic net sales growth was 13%, driven by increased demand for aftermarket replacement parts and repair services [11][18] - The ETG's organic net sales growth was 11%, primarily due to increased deliveries in defense, space, and aerospace products [27] Company Strategy and Development Direction - The company is strategically focused on key markets such as defense, space, and commercial aviation, positioning itself to capitalize on new opportunities [9] - The company continues to seek complementary acquisitions that align with its strategic and financial goals, maintaining a disciplined approach to M&A [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment, citing a pro-business agenda from the current U.S. administration that aligns with the company's long-term goals [9] - The company anticipates continued net sales growth in both FSG and ETG divisions, driven by strong organic growth and increased demand for products [32] Other Important Information - The company completed several key acquisitions in Q1 2025, including a 90% interest in Millennium International, enhancing its avionics repair capabilities [15][16] - The company paid its regular semiannual cash dividend of $0.11 per share, marking its 93rd consecutive semiannual cash dividend since 1979 [14] Q&A Session Summary Question: Flight Support Group's sales growth drivers - Most growth is attributed to expansion with existing customers, indicating deeper market penetration [38] Question: Future margin expectations - Management is cautious about predicting higher margins but acknowledges a trend of gradual improvement over the years [45][47] Question: Margin expansion in both segments - ETG aims for EBITDA margins in the 26% to 28% range, while FSG's margins are expected to remain strong due to operational efficiencies [52][53] Question: Pricing strategy and its impact on margins - The company has not significantly increased prices, focusing instead on covering cost increases while maintaining customer satisfaction [76][78] Question: Defense market opportunities - Management sees potential in missile defense programs and cost-saving solutions for customers, although significant revenue may not materialize until later years [120][121] Question: Supply chain performance - Supply chain issues have improved, but some challenges remain, particularly with labor shortages affecting supplier performance [102][105]

Financial Data and Key Metrics Changes - Total company revenue for Q4 2024 increased by 20% year over year to $871 million, driven primarily by political advertising revenue [29] - For the full year, total company revenue grew by 7% to $3.1 billion, resulting in $931 million of adjusted EBITDA [30] - Subscription revenue for Q4 was $357 million, up 5% year over year, with full year subscription revenue totaling $1.5 billion [34] Business Line Data and Key Metrics Changes - Advertising and marketing services revenue faced pressure in Q4, finishing 11% below last year due to political displacement and softness from national accounts [31] - Digital revenue grew year over year, with TEGNA's owned and operated digital products offsetting a slight decline in premium revenue [32] - The company achieved approximately $50 million in annualized savings by the end of 2024, representing roughly 50% of the goal to generate $90 million to $100 million in core non-programming annualized savings [37] Market Data and Key Metrics Changes - Political advertising revenue for the full year reached $373 million, nearly matching 2020 results despite fewer competitive races [30] - Automotive advertising remains challenged, with slight improvements noted in Q4 but still down across the board [62] Company Strategy and Development Direction - The company has identified five key areas of opportunity: building a world-class team, leveraging strengths across stations, deploying technology and AI, growing digital revenue, and scrutinizing expenses [8][9] - TEGNA is focused on transforming operations to improve efficiency and effectiveness, including centralizing marketing operations and deploying modern technology [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deregulation and M&A opportunities, emphasizing the importance of being disciplined capital allocators [48][49] - The company is committed to returning 40% to 60% of adjusted free cash flow to shareholders while exploring strategic growth opportunities [82] Other Important Information - TEGNA's cash and cash equivalents totaled $693 million at year-end, with a net leverage of 2.7 times, comfortably below the three times annual guidance [39][40] - The company congratulated KXTV in Sacramento for receiving the prestigious 2025 Alfred DuPont Columbia University Award for excellence in journalism [23] Q&A Session Summary Question: TEGNA's position as a buyer or seller in the context of deregulation - Management indicated that they are disciplined capital allocators and will evaluate opportunities based on value creation for shareholders [48][49] Question: Details on Q1 expense guidance - Management noted that programming expenses are expected to be higher due to sports rights, while core operational reductions are showing sequential improvement [50][51] Question: Trends in core advertising for Q1 - Advertising and marketing services started sluggish but improved throughout the quarter, with a notable impact from the Super Bowl programming change [60] Question: Status of automotive advertising - Automotive advertising remains challenged but showed slight improvement in Q4, with tier three holding up better than tier one and two [62] Question: Renewal of retransmission subscribers - The majority of retransmission subscribers are up for renewal at the end of the year, with one renewal occurring during the year [65] Question: FCC's role in ownership rules - Management clarified that the FCC has authority over in-market regulation, while the national cap's authority is less clear [67] Question: Challenges within premium advertising - Premium continues to grow locally but faces challenges nationally due to shifts in large national holding companies [72] Question: Addressing the 2026 bond - Management confirmed they have the cash to pay off the 2026 bonds and are looking at all options for disciplined capital deployment [82][84]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $145 million, an improvement of $7 million compared to the prior year quarter [28] - Adjusted EPS for the quarter was $0.39, lower than the prior year primarily due to a non-recurrence of a one-time tax benefit of $48 million and $14 million of higher interest expense [28] - Adjusted free cash flow was a net use of $62 million, slightly higher than the prior year due to increased interest expense [29] Business Line Data and Key Metrics Changes - Polymers segment saw a volume increase of 2.7%, driven by demand in small containers and IBC in the ag and food sectors, particularly in EMEA [20] - Integrated Solutions experienced low double-digit growth in both caps and closures and paints, linings, and adhesives [20] - Fiber volumes were slightly up, with operating rates in both paper grades in line with the industry [21] - Metals segment continued to be impacted by a soft industrial economy, particularly in bulk chemicals and petrochemicals [21] Market Data and Key Metrics Changes - EMEA demonstrated the highest level of resilience, followed by APAC, while LATAM showed a slight downward trend and North America had the most bearish demand sentiment [24] - The overall demand in boxboard remained flat year-on-year, with specific subsegments showing declines [84] Company Strategy and Development Direction - The company announced a $100 million cost optimization initiative and a commitment to achieve $1 billion in EBITDA and $500 million in free cash flow by 2027 [7][10] - The organizational realignment into seven Strategic Business Units (SBUs) aims to enhance growth and streamline operations [16] - The decision to sell the timber portfolio is part of a strategy to reduce debt and focus on core business areas [17][91] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future volume growth, particularly in polymer markets, but noted uncertainty in the overall demand environment [54][100] - The company is well-positioned for growth despite current industrial economic challenges, with expectations of significant EBITDA lift once the industrial economy recovers [103] Other Important Information - The company has identified $5 million in run rate savings as part of its cost optimization efforts, with expectations to achieve at least $15 million to $25 million by the end of fiscal 2025 [13] - The planned closure of two facilities will reduce containerboard mill capacity by 100,000 tons and URB capacity by 90,000 tons, expected to be EBITDA positive by 2027 [26][27] Q&A Session Summary Question: Fiber segment performance relative to expectations - Management indicated that fiber performance was in line with expectations, but SG&A allocation impacted perceived profitability [45][46] Question: Differences in demand between EMEA and North America - Management explained that EMEA's resilience is due to targeted growth in GDP plus markets, while North America faces more bearish sentiment [50][51] Question: SG&A margin expectations for Q2 - Management expects steady improvement in EBITDA margins through the year, with volume lift leveraging fixed costs [63] Question: Timberland sale details - Management stated that the timberland sale is aimed at reducing debt and maximizing value, with ongoing interest from potential buyers [66][91] Question: Competitive landscape in polymers and metals - Management noted that they focus on value over volume, maintaining market position despite competition [94] Question: End markets with the greatest confidence - Management expressed excitement about growth in agrochemical and food and beverage markets, while noting the long runway for pharma [100][102]