Financial Performance - Revenue increased by 100% to $156,000 for the six months ended June 30, 2025, compared to the same period in 2024 [3] - Other operating income decreased by 8.5% year on year, from $422,000 in H1 2024 to $386,000 in H1 2025 [5] - Net loss reported was $2,050,000 in 2025, which could be reduced to $1,440,000 when excluding certain costs [3][7] - Loss per share was $0.19 for the six months ended June 30, 2025 [4] - Cash and bank balances decreased from $4,970,000 as of December 31, 2024, to $2,860,000 as of June 30, 2025 [7] Business Line Performance - Revenue of $156,000 was generated from private banking services after acquiring a license and certain assets under IPSE depository in Malaysia [4] - Research expenses increased by 19.3% from $974,000 in H1 2024 to $1,160,000 in H1 2025, driven by higher employee benefits and clinical trial expenses [6] Market Data - The company reported a net loss in currency exchange of $402,000 and a net loss of $227,000 in fair value changes on warrant liability [5] - As of June 30, 2025, there were 72,371 warrants outstanding, with fair value changes of $76,000 recorded in the profit and loss account [8] Company Strategy and Industry Competition - The company is focusing on clinical trials and collaborations, with ongoing projects including CTM and iPSC GDNKT [9][10] - A new ATM agreement was signed with Levity to raise up to $4.3 million, indicating a strategy to enhance funding [11] - The corporate banking business is being rebranded as Longevity Bank, reflecting a strategic shift [11] Management Commentary on Operating Environment and Future Outlook - Management highlighted the completion of dose level one in a clinical trial and plans to complete Phase one trials in 2026 [9] - The company aims to apply for GDT trials in Malaysia and other locations, indicating a focus on expanding its market presence [10] Other Important Information - The company’s manufacturing facility has been audited by the Ministry of Health of Malaysia, ensuring compliance and operational readiness [11] Q&A Session Summary - The earnings call concluded without any questions from participants, indicating a lack of immediate inquiries regarding the financial performance or strategic direction [12]

Financial Data and Key Metrics Changes - The meeting discussed the approval of a reverse stock split proposal and an increase in authorized common stock, indicating a strategic move to enhance shareholder value [12][22]. Business Line Data and Key Metrics Changes - Specific financial performance metrics for different business lines were not disclosed during the meeting, as management indicated they could not answer questions related to third-quarter performance [10]. Market Data and Key Metrics Changes - The company acknowledged a significant disconnect between its asset value and public market valuation, prompting discussions about exploring strategic alternatives [12]. Company Strategy and Development Direction - The Board and management are actively pursuing all options to maximize shareholder value, including the potential sale of the company [12]. - The decision to seek a reverse stock split was strategically aligned with ensuring compliance with NASDAQ requirements, reflecting a focus on long-term shareholder value [13]. Management Comments on Operating Environment and Future Outlook - Management emphasized that forward-looking statements made during the meeting are based on current expectations and are subject to risks and uncertainties that could lead to actual results differing materially from projections [11]. Other Important Information - The meeting was conducted virtually, and shareholders were encouraged to submit questions via an online platform, with a commitment to address as many as possible within the allotted time [3][10]. Q&A Session Summary Question: Has the Board engaged advisors to explore strategic alternatives to maximize value for shareholders? - The Board and management are pursuing all options to maximize shareholder value [12]. Question: Can the Board explain the strategic rationale behind the reverse stock split decision and its timing? - The decision was based on ensuring compliance with NASDAQ processes and timelines, allowing for the option of a reverse stock split within the grace period [13].

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [16] - Adjusted net loss for Q1 FY26 was $4.2 million, an improvement from a loss of $4.4 million in the same quarter last year [18] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [14] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [15] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategic shift towards med-tech [13] - International adoption of Auryon following CE mark approval contributed approximately $500,000 in revenue during the quarter [14] Company Strategy and Development Direction - The company is focused on expanding its product portfolio to compete in large, fast-growing markets, particularly in med-tech [5] - Continued investment in Auryon and plans to enter the coronary market are part of the long-term growth strategy [6] - The company aims to increase its market share in the hospital segment, driving both top-line growth and higher margins [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly in mechanical thrombectomy and NanoKnife [26] - The company expects to be cash flow positive for the current fiscal year, with significant cash generation anticipated in Q4 [20] - Guidance for FY26 was raised, expecting net sales in the range of $308 to $313 million, reflecting growth of 5% to 7% over the previous year [21] Other Important Information - The company continues to face tariff expenses, with an estimated impact of $4 to $6 million for the full fiscal year [17] - R&D expenses were $6.4 million, or 8.5% of sales, as the company remains committed to investing in long-term growth initiatives [18] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued solid contributions from Auryon [26] Question: NanoKnife disposable revenue specifics - The growth in NanoKnife disposable revenue is largely driven by prostate initiatives, with no significant one-time stocking effects noted [30] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert accounts into value analysis committee approvals [33] Question: Sales force updates in mechanical thrombectomy - The sales force for mechanical thrombectomy has increased to 50 dedicated reps, with plans for further investments in the NanoKnife urology sales force [38] Question: Revenue growth attribution to price increases - Revenue growth in mechanical thrombectomy is attributed to a combination of price increases, new customer acquisitions, and increased utilization [42] Question: Update on ongoing clinical trials - The Ambition BTK study is progressing well, with positive expectations for Auryon's role in atherectomy treatments [44]

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [16] - Adjusted net loss for Q1 FY26 was $4.2 million, improving from a loss of $4.4 million in the same quarter last year [18] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [14] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [15] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategic shift towards med-tech [13] - International adoption of Auryon following CE mark approval contributed approximately $500,000 in revenue [14] Company Strategy and Development Direction - The company is focused on expanding its product portfolio into large, fast-growing markets, particularly in med-tech [5] - Continued investment in Auryon and mechanical thrombectomy products is expected to drive long-term growth [6][10] - The company aims to increase its market share and expand access to new opportunities, particularly in the hospital market [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly Auryon and NanoKnife, as key drivers for future revenue [21][27] - The company anticipates continued strong performance in mechanical thrombectomy and NanoKnife, with expectations for growth in the urology market [27][28] Other Important Information - The company expects to incur between $4 million and $6 million in tariff expenses for the full fiscal year 2026 [17] - Cash utilization was better than expected, with a cash balance of $38.8 million at the end of Q1 FY26 [20] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued solid contributions from Auryon [25][26] Question: NanoKnife disposable revenue specifics - The strong growth in NanoKnife disposable revenue is largely driven by prostate initiatives, with no significant one-time stocking effects noted [29][30] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert interest into approvals for product usage [32][33] Question: Sales force updates - The company has increased its sales force for mechanical thrombectomy by 25%, now totaling 50 dedicated sales reps [37][38] Question: Revenue growth attribution - Revenue growth in mechanical thrombectomy is attributed to a combination of price increases, new customer acquisitions, and increased utilization [41][42] Question: Clinical trials update - The Ambition BTK study is progressing well, with positive expectations for its impact on the Auryon business [43][44]

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [17] - Adjusted net loss for Q1 FY26 was $4.2 million, improving from a loss of $4.4 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [15] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [16] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategy to increase revenue from this segment [14] - The annual revenue of the med-tech segment grew from $41 million in 2020 to $127 million in 2025, representing a compound annual growth rate of 25% [15] Company Strategy and Development Direction - The company is focused on growing its med-tech segment, particularly through innovative products like Auryon and NanoKnife, which are expected to drive future growth [5][7] - Continued investment in R&D initiatives is planned to support long-term growth, targeting approximately 10% of sales [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly in mechanical thrombectomy and NanoKnife, with expectations for continued strong performance [26][27] - The company anticipates being cash flow positive for the current fiscal year, with significant cash generation expected in Q4 [20] Other Important Information - The company expects net sales for FY26 to be in the range of $308 to $313 million, an increase from previous guidance [21] - Tariff expenses for FY26 are estimated to be between $4 and $6 million [18] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued growth in these areas [25][26] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert accounts into value analysis committee approvals [31][32] Question: Revenue growth attributable to price increases - Revenue growth is driven by a combination of price increases, new customer acquisitions, and increased utilization [38][39] Question: Update on clinical trials for Ambition BTK - The Ambition BTK study is progressing well, with enrollment in both RCT and registry segments, expected to significantly impact the Auryon business [40][41]

Financial Data and Key Metrics Changes - The company reported a loss attributable to shareholders of HKD 16.3 billion for FY 2025, with a second-half loss of approximately HKD 9.7 billion, which exceeded the first half's loss of HKD 6.6 billion, primarily due to noncash provisions and one-off losses [18][19][71] - Core operating profit decreased by 13% year on year, while segment results declined by 4% year on year [17] - Total debt decreased by HKD 5.7 billion from HKD 151.6 billion in June 2024 to HKD 146 billion in June 2025, and net debt fell by HKD 4.5 billion [22][26] Business Line Data and Key Metrics Changes - The property business achieved annual sales of HKD 26 billion, meeting its target despite market uncertainties [6] - The investment properties segment recorded a 24% year-on-year growth in overall segment results, with K11 segment results also growing by 24% [45] - In Hong Kong, attributable contracted sales for FY 2025 reached HKD 11 billion, with strong performance from multiple projects [28] Market Data and Key Metrics Changes - The company noted improvements in market sentiment and transaction volume for Hong Kong real estate in the latter half of FY 2025, although property prices remained weak [19] - In Mainland China, the group’s contracted sales reached RMB 14 billion, exceeding adjusted annual targets [41] Company Strategy and Development Direction - The company will continue to focus on its core business, actively manage finances, and enhance operational efficiency [8] - Plans include advancing asset disposal, enhancing rental returns, and unlocking the value of farmland holdings [13][14] - The company aims to leverage market improvements and maintain prudent operations amid ongoing uncertainties [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized the importance of cash flow recovery and debt reduction [9][60] - The company acknowledged the impact of interest rate cuts on financing costs, projecting significant savings with further rate reductions [87] Other Important Information - The company has temporarily suspended dividend payments to preserve cash [15][54] - A significant refinancing of HKD 88.2 billion was completed, enhancing liquidity and extending loan maturities [24][55] Q&A Session All Questions and Answers Question: What are the company's concrete goals for debt reduction and timetable? - The company aims for steady progress in reducing total debt and net debt, having already achieved initial success in FY 2025 [58][59] Question: When will the company resume payments for deferred perpetual bonds? - The company will adhere to contractual terms and make announcements at appropriate times regarding coupon payments [61][62] Question: How does the new bank loan align with the goal of reducing indebtedness? - The new bank loan will be used to meet debt-related needs, and the company has successfully controlled net debt, indicating improved cash flow [65][66] Question: Will the majority shareholder consider injecting capital? - There are currently no plans for capital injection from the majority shareholder [68] Question: What is the company's outlook on achieving profitability? - Management indicated that profitability improvements depend on market conditions and ongoing operational efficiency enhancements [71][72] Question: How will recent rate cuts affect interest expenses? - A 1% decrease in interest rates could save the company around HKD 800 million in annual interest expenses [87]

Financial Data and Key Metrics Changes - NOVAGOLD reported a net loss of $15.6 million in Q3 2025, an increase of $4.9 million from the prior year due to higher field expenses at Donlin Gold and increased general and administrative expenses [34] - The company's treasury decreased to $125 million at the end of Q3, primarily due to the acquisition of an additional 10% of Donlin Gold, with total consideration and transaction costs amounting to $210.1 million [35][36] Business Line Data and Key Metrics Changes - The company holds a 60% interest in Donlin Gold following the acquisition of an additional 10% at the beginning of Q3 2025, leading to increased site activity and expenses compared to the previous year [34] - Donlin Gold's budget for 2025 remains at $43 million, with NOVAGOLD's pro-rata share increasing to $24 million due to the new funding obligation [37] Market Data and Key Metrics Changes - The gold market is experiencing a historic bull market, with the potential for gold prices to reach between $3,000 and $5,000, driven by increasing demand and limited supply [12][14] Company Strategy and Development Direction - The company aims to build America's largest gold mine, with a target to begin construction in 2027 and production expected by 2031 [30][60] - NOVAGOLD is focused on advancing the bankable feasibility study and enhancing stakeholder relationships, with a commitment to environmental stewardship [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic asset of Donlin Gold, highlighting its high-grade deposits and the supportive regulatory environment in Alaska [42][45] - The company anticipates a steady stream of positive news as it progresses towards construction and production, with expectations of significant value creation for shareholders [30][46] Other Important Information - The drilling program at Donlin confirmed consistent mineralization across multiple zones, with grades ranging from about 4 g to 23 g per ton, indicating potential upside in the resource model [40][49] - The company has a strong institutional shareholder base, with over 60% of shares held by top investors who understand the opportunity presented by NOVAGOLD [46] Q&A Session Summary Question: Can you provide more color on how the exploration drill results compare to your resource model expectations? - Management noted that the drilling encountered mineralization in previously modeled waste areas, demonstrating the potential for further resource enhancement [49][50] Question: Are there plans to update the resource and incorporate these drill results before the bankable feasibility study? - Management confirmed that the results from this year's drill program will be incorporated into the geologic model supporting the bankable feasibility study [51] Question: Can you elaborate on the interest in royalty companies for financing the project? - Management indicated that royalty companies are likely to show interest in financing options, given the common sense approach they typically exhibit [55] Question: Have you explored using mini nuclear reactors instead of natural gas for power at Donlin? - Management stated that while they have considered various power options, natural gas remains the most viable and immediate solution for the project [56] Question: Any updates on the tailings dam permit and expected opposition? - Management provided an update that the tailings dam permit is the last remaining state permit, with expectations to receive it well before the bankable feasibility study is completed [61]

Financial Data and Key Metrics Changes - NOVAGOLD reported a net loss of $15.6 million in Q3 2025, an increase of $4.9 million from the prior year, primarily due to higher field expenses at Donlin Gold and increased general and administrative expenses [36] - The company's treasury decreased by $193.5 million to $125.2 million at the end of Q3, mainly due to the acquisition of an additional 10% of Donlin Gold [37][38] Business Line Data and Key Metrics Changes - The increase in Donlin Gold expenses in Q3 and the first nine months of 2025 was attributed to heightened site activity compared to the prior year when field activities were minimal [36] - NOVAGOLD's pro-rata share of Donlin Gold's budget increased to $24 million due to the company's incremental funding obligation starting in Q3 [38] Market Data and Key Metrics Changes - The company noted a significant revaluation of NOVAGOLD's stock, with a price increase from a low of around $2 earlier in the year to close to double digits [5][7] - The company anticipates that U.S. assets will be valued with 0% discount rates due to jurisdictional safety, which could lead to a premium rating in the gold space [26] Company Strategy and Development Direction - The company aims to build America's largest gold mine, with a target to begin construction in 2027 and production by 2030 [32][34] - The focus is on advancing the bankable feasibility study and enhancing stakeholder relationships, with a commitment to environmental stewardship [44][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gold market, highlighting the increasing importance of gold as a monetary asset amid global economic uncertainties [16][23] - The company is optimistic about the exploration potential at Donlin, with only 5% of the district explored, indicating significant upside potential [31][46] Other Important Information - The company has completed a drill program with initial results confirming consistent mineralization across multiple zones, with grades ranging from about 4 grams to 23 grams per ton [41] - The Donlin project is on private land owned by two Alaska Native corporations, with life-of-mine agreements in place [47] Q&A Session Summary Question: Can you provide more color on how the exploration drill results compare to your resource model expectations? - Management indicated that the drilling encountered mineralization in areas previously modeled as waste, demonstrating potential in and around known ore bodies [51][53] Question: Are there plans to update the resource and incorporate these drill results before the bankable feasibility study? - Management confirmed that the results from this year's drill program will be incorporated into the geologic model supporting the bankable feasibility study [54] Question: Can you elaborate on the interest in royalty companies for financing the project? - Management noted that royalty companies are likely to show interest in financing options, indicating a positive outlook for potential partnerships [58] Question: Have you explored using mini nuclear reactors instead of natural gas for power for Donlin? - Management stated that while they have considered various options, natural gas remains the best power source for the project at this time [59] Question: Any updates on the tailings dam permit? Do you expect any opposition? - Management explained that the tailings dam permit is the last remaining state permit, and they anticipate receiving it well before the bankable feasibility study is completed [65]

Financial Data and Key Metrics Changes - NovaGold reported a net loss of $15.6 million in Q3 2025, an increase of $4.9 million from the prior year due to higher field expenses at Donlin Gold and increased general and administrative expenses [33] - The company's treasury decreased by $193.5 million to $125.2 million at the end of Q3, primarily due to the acquisition of an additional 10% of Donlin Gold [34] Business Line Data and Key Metrics Changes - The company’s 60% interest in Donlin Gold resulted in higher expenses due to increased site activity compared to the previous year when field activities were minimal [33] - NovaGold's share of Donlin Gold's $43 million budget for 2025 increased to $24 million due to the company's incremental funding obligation starting in Q3 [35] Market Data and Key Metrics Changes - The stock price has seen a significant increase, moving from a low of around $2 earlier in the year to close to double digits, indicating a revaluation of NovaGold [5][6] Company Strategy and Development Direction - The company aims to build what will be the largest gold mine in the United States, with a target to begin construction in 2027 and production by 2030 [30] - NovaGold is focused on advancing the bankable feasibility study and has engaged top-tier firms for this purpose [30][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gold market, highlighting the strategic importance of Donlin Gold as a high-grade, low-cost producer in a safe jurisdiction [41][42] - The company anticipates a steady stream of positive news as it progresses towards building America's largest gold mine [30] Other Important Information - The Donlin project is expected to average over 1.4 million ounces of gold production annually in its first decade, with cash costs well below industry averages [41] - The project has strong support from local communities and stakeholders, with ongoing efforts in environmental stewardship and community engagement [38][45] Q&A Session Summary Question: Can you provide more color on how the exploration drill results compare to your resource model expectations? - Management indicated that the drill results were impressive, with mineralization found in areas previously modeled as waste, demonstrating potential upside in the ore bodies [49][50] Question: Are there plans to update the resource and incorporate these drill results before the bankable feasibility study? - Yes, the results from this year's drill program will be incorporated into the geologic model supporting the bankable feasibility study [51] Question: Can you elaborate on the interest in royalty companies for financing the project? - Management noted that royalty companies are likely to show interest in financing options, given the common sense in their business model [53] Question: Have you explored using mini nuclear reactors instead of natural gas for power for Donlin? - Management stated that while they have considered all options, natural gas remains the best current power source for the project [54] Question: Any updates on the tailings dam permit? Do you expect any opposition? - The tailings dam permit is the last remaining state permit, and management anticipates receiving it well before the bankable feasibility study is completed [57]

Financial Data and Key Metrics Changes - Consolidated sales increased by 7.4% to a record level, with a balance between organic and M&A growth [11] - Adjusted EBIT increased by 2.9% to a record, driven by volume growth and MAP 2025 initiatives, despite headwinds from higher raw material costs [11] - First quarter adjusted EPS reached a record $1.88, influenced by adjusted EBIT improvement, partially offset by increased interest expense from acquisition financing [11] Business Line Data and Key Metrics Changes - Construction Products Group sales increased to a record, driven by systems and turnkey roofing solutions, although offset by softness in Europe and disaster restoration business [12][13] - Performance Coatings Group achieved record sales with broad-based strength in turnkey flooring and protective coatings, with adjusted EBIT also reaching a record [14] - Consumer Group sales increased to a record due to successful integration of acquisitions, although DIY demand remained soft [14] Market Data and Key Metrics Changes - Growth was led by Europe, benefiting from acquisitions and favorable effects, while North America grew by 5.9% [12] - Emerging markets showed mixed performance, with strength in Africa and the Middle East driven by infrastructure projects [12] Company Strategy and Development Direction - The company is focused on a pivot to growth, investing in sales associates and support staff, while competitors are cutting costs [9][10] - Strategic M&A activities are being rebuilt, with a focus on core and adjacent markets [16] - The company is expanding its presence in new retail channels, including grocery and dollar stores, to capture additional market share [80] Management's Comments on Operating Environment and Future Outlook - Management expects another quarter of record sales and adjusted EBIT, driven by systems and turnkey solutions and a focus on repair and maintenance [19][20] - The company anticipates continued challenges from economic uncertainty and inflation, but remains optimistic about growth investments [21][22] - Management highlighted the importance of maintaining benefit programs and investing in growth despite a challenging environment [10][16] Other Important Information - The company returned $82 million to shareholders through dividends and share repurchases during the first quarter [16] - Inventory increases were driven by strategic purchases to mitigate future tariffs and ensure high service levels during plant consolidations [17] Q&A Session Summary Question: Outlook for the year and impact of investments - Management indicated that investments for growth are delivering higher organic growth levels than the market, with deliberate spending on new hires and advertising [25][26] Question: Industry demand for the Consumer Group - Management believes the Consumer Group is outperforming the broader industry, with new product introductions helping to gain market share [29][30] Question: Details on increased marketing spend - The increase in marketing spend is primarily in advertising, focusing on social media and e-commerce, particularly in the cleaners category [34][35] Question: Impact of manufacturing inefficiencies - Management noted about $10 million of unfavorable conversion costs due to plant consolidations, which are expected to continue into the second quarter [37] Question: Backlog and growth in Construction Products and Performance Coatings - Management highlighted strong backlogs in reroofing and institutional projects, with aggressive expansion in sales forces contributing to growth [44][48] Question: Changes in guidance and challenges - Management cited challenging dynamics in gross profit margins and unexpected healthcare cost increases as reasons for adjusting guidance to the lower end of the range [55][56] Question: Pricing strategies in response to tariffs - Management acknowledged the difficulty in raising prices earlier due to the unpredictable nature of tariffs, but expects to implement higher prices in the upcoming quarters [59][60] Question: Working capital management and inventory purchases - Management indicated strategic inventory purchases were made to mitigate tariff impacts and ensure service levels during transitions [66] Question: Future growth expectations - Management does not view the current year as normal due to ongoing uncertainties, but anticipates that in a more stable environment, revenue growth should lead to higher earnings growth [108]