Financial Data and Key Metrics Changes - The third quarter net sales were $114 million, representing a growth of 6.3% compared to $107.2 million in the prior year quarter, marking the sixth consecutive quarter of year-over-year sales growth [29][10] - The adjusted operating margin was 7.3%, which is the second highest quarterly adjusted operating margin over the past seven years, and reflects an increase of 210 basis points from the prior year quarter [13][31] - The company generated $12.3 million in operating cash flow and ended the quarter with $22.6 million in cash [14][32] Business Line Data and Key Metrics Changes - Sales growth was driven by higher unit volumes and pricing from ocean freight surcharges, with significant success in new product introductions and share gains with large strategic accounts [10][29] - The company showcased 25 new product groups at the April Highpoint Market, expanding its Z-Clinr lineup and introducing new case goods products [12][11] Market Data and Key Metrics Changes - Vietnam production supports approximately 55% of revenue, while Mexican operations account for nearly 40% of sales, with current tariff impacts primarily affecting Vietnam [17][30] - The company has seen a slowdown in incoming orders from retailers due to tariff announcements, with a healthy backlog of $78.3 million at the start of the fourth quarter [22][34] Company Strategy and Development Direction - The company remains focused on executing growth strategies, emphasizing new product introductions and enhancing customer experience as key components of its success [41][54] - The company is actively seeking alternative sourcing options beyond Vietnam and Mexico to mitigate tariff risks and maintain competitive pricing [62][63] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the potential impact of tariffs on margins, pricing, and supply chain design, particularly in light of the proposed U.S. reciprocal tariff [15][24] - The outlook for the industry is moderately pessimistic due to external challenges to consumer spending, with management prepared to navigate multiple demand scenarios [25][24] Other Important Information - The company recorded a $14.1 million non-cash impairment charge related to its facility in Mexicali, Mexico, due to changes in U.S. furniture demand [30][31] - The company has implemented modest tariff surcharges on new orders to partially offset the impact of tariffs, although these do not completely offset the 10% tariff on Vietnam imports [20][57] Q&A Session Summary Question: Changes in order patterns during the March quarter - Management noted a typical seasonal slowdown in March, but year-over-year growth remained consistent until a significant slowdown in orders was observed following the April 2nd tariff announcement [50][52] Question: Goals for new product contributions to sales - Over half of current sales are derived from new products launched in the last couple of years, and the company remains committed to driving new product introductions regardless of external conditions [54][55] Question: Competitors' responses to tariff surcharges - Competitors have implemented varying surcharges based on their supply chains, and the company's guidance assumes the current 10% Vietnam tariff remains intact [57][58] Question: Sourcing from alternative countries - The company is actively seeking suppliers in other Southeast Asian countries and is prepared to optimize its supply chain based on trade negotiations [62][63] Question: Impact of tariffs on gross margins - Near-term tariffs are expected to be slightly dilutive to margins, with potential for greater impact if tariffs increase significantly [66][67]

Iridium Communications Inc. (NASDAQ:IRDM) Q1 2025 Results Conference Call April 22, 2025 8:30 AM ET Company Participants Ken Levy - Vice President, Investor Relations Matt Desch - Chief Executive Officer Vince O’Neill - Chief Financial Officer Conference Call Participants Ric Prentiss - Raymond James Edison Yu - Deutsche Bank Colin Canfield - Cantor Hamed Khorsand - BWS Financial Chris Quilty - Quilty Space Matthew Robillard - Barclays Louie DiPalma - William Blair Operator Good day, and welcome to the Irid ...

Financial Data and Key Metrics Changes - Wireless service revenue increased by 2.7%, reaching the high end of the guided range [9] - Adjusted EBITDA was reported at $12.6 billion, marking a 4% growth and the highest result ever [9][20] - Free cash flow improved by over $900 million compared to the previous year, totaling $3.6 billion [9][27] - Adjusted EPS for the quarter was $1.19, reflecting a year-over-year increase of 3.5% [26] Business Line Data and Key Metrics Changes - Consumer postpaid phone net losses were 356,000, primarily due to recent pricing actions [21] - Prepaid net adds reached 137,000, the best performance since the TracFone acquisition [13][24] - Broadband services saw 339,000 net adds, with continued market share growth in both Fios and fixed wireless access [24][14] Market Data and Key Metrics Changes - The company is on track to deploy C-Band to 80% to 90% of planned sites by year-end, enhancing mobility services [11] - Fios expansion is ahead of schedule, with a target of 650,000 incremental passings this year [12] - The fixed wireless access product is expected to reach 8 million to 9 million subscribers by 2028 [14] Company Strategy and Development Direction - The company aims to grow wireless service revenue, expand adjusted EBITDA, and generate strong free cash flow [17] - Focus on customer-first offerings, including myPlan, myHome, and My Biz Plan, to enhance customer experience and retention [10][34] - The pending acquisition of Frontier is expected to significantly enhance broadband offerings and market reach [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, citing the essential nature of connectivity services [7][8] - The company anticipates improved consumer postpaid phone net adds for the full year, despite recent challenges [22] - Management highlighted the importance of maintaining financial discipline and operational excellence to achieve long-term growth [18][27] Other Important Information - The company was recognized as having the best, fastest, and most reliable 5G network in the US by RootMetrics [11] - The Verizon Value Guarantee, a new three-year price lock and free phone guarantee, is expected to drive customer loyalty and growth [46][55] Q&A Session Summary Question: Impact of tariffs on handsets and telecom equipment - Management indicated that tariffs on handsets could affect consumer pricing but emphasized that they are prepared to manage these challenges without compromising capital expenditures [61][67] Question: Churn expectations with new plans and promotions - Management expects churn to improve in the second half of the year due to the introduction of the Verizon Value Guarantee and ongoing C-Band expansion [72][73] Question: March and April gross adds improvement - Management noted that the new Verizon Value Guarantee has led to double-digit growth in gross adds, indicating strong market resonance [87] Question: Sustainability of business EBITDA growth - Management confirmed that the recent EBITDA growth is supported by ongoing cost transformation efforts and a shift towards higher-margin wireless services [90][93] Question: Consumer behavior changes due to tariffs - Management reported no significant changes in consumer behavior but noted some uptick in handset upgrades attributed to new offers [100][102] Question: Postpaid phone industry growth expectations - Management maintains that the postpaid market is expected to grow between 8 million and 8.5 million, with a focus on migrating customers from prepaid to postpaid [119] Question: Marketing and pricing strategy adjustments - Management is focused on maintaining a competitive pricing strategy while ensuring that service revenue growth remains sustainable [125][135]

Calix, Inc. (NYSE:CALX) Q1 2025 Earnings Conference Call April 22, 2025 8:30 AM ET Company Participants Nancy Fazioli - VP, IR Michael Weening - President and CEO Cory Sindelar - CFO Conference Call Participants Ryan Koontz - Needham and Company Michael Genovese - Rosenblatt Securities Samik Chatterjee - JPMorgan Christian Schwab - Craig-Hallum Tim Savageaux - Northland Capital Markets Scott Searle - ROTH Capital Partners Operator Greetings, and welcome to the Calix First Quarter 2025 Earnings Conference Ca ...

Financial Data and Key Metrics Changes - Core deposits increased by $1.3 billion year-over-year, with deposit teams growing their portfolios to $1.9 billion [5][6] - Cost of deposits reduced to 2.09% in Q1 2025, while net interest margin (NIM) increased to approximately 2.9% for the fourth consecutive quarter [6][15] - Core pre-tax provision income rose to $46 million in Q1 2025 from $28 million a year ago, resulting in a core return on assets (ROA) of 77 basis points [10][14] - Adjusted EPS was $0.57 per share, reflecting a 36% linked-quarter increase and a 50% year-over-year increase [14] Business Line Data and Key Metrics Changes - Business loans grew by over $60 million in Q1 2025 and over $400 million year-over-year, with a loan pipeline currently at approximately $1.1 billion and an average yield of 7.22% [8][9] - Non-brokered deposits increased by approximately $65 million compared to year-end levels, with a core deposit growth of around $250 million when excluding title company-related deposits [16][36] Market Data and Key Metrics Changes - The company has a strong capital position, with a common equity Tier 1 ratio of 11.1% and a total capital ratio of 15.7% [18] - The company is managing expenses prudently, with core cash operating expenses for Q1 at $57.9 million, excluding non-core items [17] Company Strategy and Development Direction - The company plans to expand into the Lakewood, New Jersey market, indicating a strategic move to tap into new customer bases [12][85] - Hiring efforts are focused on both sides of the balance sheet, with a significant emphasis on growing business loans and core deposits [11][72] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about NIM improvement despite the uncertain rate environment, citing significant back book loan repricing opportunities [7][22] - The company expects net loans to remain relatively flat in Q2 2025, with growth anticipated in the latter half of the year [23][80] Other Important Information - The company has made several new hires to enhance its loan and deposit capabilities, with a focus on maintaining profitability and growth [11][72] - The company is cautious about the current economic environment, particularly regarding potential impacts from tariffs and competition [105][92] Q&A Session Summary Question: Inquiry about loan pipeline mix - The loan pipeline consists of approximately $350 million in commercial and industrial (C&I) loans, $185 million in owner-occupied commercial real estate (CRE), and $250 million in healthcare loans [31] Question: Update on deposit growth and costs - The cost of deposits is around 2.10%, with a healthy mix of demand deposits [34] Question: Credit front and reserve build guidance - The reserve build was less than expected, with a target provision of 90 basis points to 1% over time [40] Question: Cash balance and margin opportunities - The company is managing its cash balance strategically, aiming to maintain a balance between floating rate assets and cash [48] Question: Non-owner-occupied CRE uptick - The uptick was due to one specific credit exit, with no systemic issues identified [58] Question: Fee income guidance for the year - The fee income guidance remains at $40 million to $42 million for the full year [111]

Financial Data and Key Metrics Changes - AGNC reported total comprehensive income of $0.12 per common share for Q1 2025, with an economic return on tangible common equity of 2.4% [15] - The net interest rate spread increased by 21 basis points to 2.12%, driven by higher asset yields and lower funding costs [17] - Quarter-end leverage increased to 7.5 times tangible equity, up from 7.2 times at year-end [15][16] Business Line Data and Key Metrics Changes - Net spread and dollar roll income increased by $0.07 to $0.44 per common share, attributed to a higher net interest rate spread and a larger asset base [16] - The average projected life CPR in the portfolio increased to 8.3% from 7.7% at year-end, while actual CPRs averaged 7% for the quarter, down from 9.6% in the previous quarter [18] Market Data and Key Metrics Changes - The agency MBS market experienced significant pressure, with the current coupon spread to a blend of 5- and 10-year treasury rates widening to 160 basis points [10] - The asset portfolio totaled $79 billion at quarter-end, up about $5 billion from the prior quarter, with 77% of assets having favorable prepayment characteristics [21][22] Company Strategy and Development Direction - The company believes that agency MBS provide compelling return opportunities, especially in light of the deteriorating economic outlook [13] - Regulatory relief is expected to lead to greater demand for agency MBS from banks, which could benefit the treasury and swap markets [23] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is likely to remain elevated in the near term, but the outlook for agency MBS is favorable [14][23] - The management emphasized the importance of maintaining a strong liquidity position to navigate market volatility [45] Other Important Information - The company raised $509 million of common equity through its at-the-market offering program at a premium to tangible net book value, generating meaningful accretion for shareholders [16] - The weighted average coupon of the portfolio remained steady at just over 5% [22] Q&A Session Summary Question: Update on book value - Management indicated that the book value was down in the range of 7.5% to 8% as of the end of last week due to further mortgage spread widening [29] Question: Comfort level with the dividend - Management stated that the total cost of capital has increased, but expected returns still align well with that cost [36][39] Question: Managing extreme rate volatility - Management highlighted that a strong liquidity position allowed them to navigate the volatility without changing asset composition [44][46] Question: Outlook on leverage and hedge ratio - Management expressed comfort with current leverage levels and indicated that spreads at current levels allow for attractive returns without excessive leverage [52][54] Question: Changes to hedge portfolio - Management confirmed that there have not been any substantial changes to the hedge portfolio post-quarter end [100] Question: Prepayment environment and convexity risk - Management noted that the portfolio has more call risk than extension risk, with a significant portion having embedded prepayment protection [120][123] Question: Impact of levered investors on mortgage spreads - Management did not see any force deleveraging impacting the current repricing in the mortgage market, attributing it to bond fund redemptions instead [126][129]

Financial Data and Key Metrics Changes - In Q1 2025, rental revenue increased by 2.8%, while adjusted EBITDA remained flat at $339 million [48] - Equipment rental revenue grew by 4.9% year-over-year, driven by increases in both rate and OEC fleet on rent [49] - Adjusted EBITDA margin was impacted by higher revenue from sales of used equipment, which generate lower margins than rental revenue [51] Business Line Data and Key Metrics Changes - Local accounts represented 53% of rental revenue in Q1, down from 55% a year ago, indicating a shift in revenue sources [34] - The company executed a merger agreement to acquire H&E Equipment Services, which will expand scale and geographic coverage [14] - The fleet composition as of March 31, 2025, was valued at $6.9 billion, with specialty fleet representing about 24% of the total [39] Market Data and Key Metrics Changes - Industrial spending is projected to reach $503 billion in 2025, with non-residential construction starts estimated to increase by 8% to $482 billion [40][41] - The company anticipates capturing 10% to 15% of the megaproject opportunities, with a significant pipeline of projects valued over $2 trillion [44] Company Strategy and Development Direction - The company is focusing on integrating the H&E acquisition while pausing other M&A initiatives [14] - A strategy to increase specialty fleet CapEx is in place to support demand from megaprojects and cross-sell expert solutions [16] - The diversification into new end markets and products has reduced reliance on a single industry, enhancing resilience [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating landscape is characterized by growth in national accounts driven by large construction projects, while local markets face challenges due to high interest rates [22] - There are no emerging cancellation trends for 2025 projects, and the company remains optimistic about the stability of large national accounts [20] - Management expressed confidence in achieving revenue synergies from the H&E acquisition, targeting 20% in year one and ramping up to 60% in year two [58] Other Important Information - The company generated $49 million of free cash flow in Q1, with a current leverage ratio of 2.5 times [53] - A quarterly dividend of $0.70 was declared, representing a 5% increase in the annual dividend to $2.80 per share [54] Q&A Session Summary Question: April results and dollar utilization - Management confirmed that dollar utilization improved in March and continued through early April, aligning with expectations for the full year [63] Question: Industry pricing discipline - Management indicated that pricing remains stable and disciplined, despite general cost inflation in the industry [67] Question: Rebuttal margin performance - Management explained that margin decline was influenced by seasonal factors and one less calendar day in February compared to the previous year [72] Question: Local market activity and recession scenarios - Management stated that the current guidance does not embed a recession scenario, focusing instead on growth in infrastructure and mega projects [77] Question: Customer attrition in synergy targets - Management acknowledged a 10% dis-synergy customer churn assumption in their synergy targets, which is slightly above the normal attrition rate [79] Question: Megaprojects supporting growth outlook - Management confirmed that the current pipeline of megaprojects is sufficient to support the 5% growth outlook for the enterprise [88] Question: Core end markets and tariff impacts - Management noted that larger national accounts are experiencing robust demand, while local markets have slowed down, with limited impact from tariffs observed so far [95]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenues were $2.65 billion, up 12.1% year-over-year, with organic revenues growing by 2.4% [28] - Reported operating income was $346 million, representing 13% of revenues, compared to $300 million or 12.7% of revenues last year [31] - Reported EPS was $1.94, compared to $1.72 a year ago, while adjusted EPS was $2.21 versus $2.04 the prior year [32] Business Line Data and Key Metrics Changes - Revenues for Diagnostic Information Services increased by 12.7% year-over-year, driven by acquisitions and growth in physician and hospital channels [29] - Total volume measured by requisitions increased by 12.4% year-over-year, with organic volume down by 0.9% [29] - Revenue per requisition was up 0.3% year-over-year, with organic revenue per requisition increasing by 3.6% [30] Market Data and Key Metrics Changes - The physician channel saw revenue growth in the high teens, largely driven by acquisitions, with organic revenue growth in the mid-single digits [13] - Advanced diagnostics in key clinical areas such as cardiometabolic and autoimmune testing grew at double-digit rates [20] - The company expanded its health plan partnerships, contributing to revenue growth through access to new geographies [14] Company Strategy and Development Direction - The company’s growth strategy focuses on delivering solutions for core clinical customers and expanding into consumer-initiated testing, life sciences, and data analytics [11] - Automation, robotics, and AI are being deployed to improve quality and productivity [12] - The company aims to expand in high-growth areas and enhance its online consumer-initiated test platform [18] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed revenue and adjusted EPS guidance for the full year 2025, expecting revenues between $10.7 billion and $10.85 billion [33] - The company anticipates approximately 3% organic revenue growth, with the remainder from acquisitions [35] - Management expressed optimism regarding the impact of recent regulatory changes and ongoing investments in quality management processes [10][36] Other Important Information - The company is collaborating with Google Cloud to streamline data management and enhance customer and employee experiences through GenAI [26] - The recent court ruling vacating the FDA rule on laboratory developed tests is expected to reduce regulatory costs and improve access to innovative testing services [9][10] Q&A Session Summary Question: Organic volume trends and expectations for the rest of the year - Management noted that organic volume was down 90 basis points but would have increased by 160 basis points when adjusting for leap year and weather impacts [42][43] Question: Exposure to tariffs and supply costs - Management indicated that less than 1% of their $2 billion supply spend is sourced directly from China, with most supplies manufactured in the U.S. [48][50] Question: Impact of strikes at LifeLabs - Management clarified that the strike is limited to British Columbia and is being managed effectively, with progress expected in the next 30 to 45 days [56][57] Question: Margin expectations for Q2 - Management expects Q2 to be the strongest quarter, with operating margins anticipated to grow compared to the previous year [60][62] Question: Opportunities in hospital lab management due to tariffs - Management indicated that the funnel of opportunities in collaborative lab services remains robust, with ongoing negotiations with several institutions [72] Question: Updates on Haystack and reimbursement submissions - Management reported positive progress with Haystack, with ongoing efforts to establish reimbursement processes [95][96] Question: Financial benefits from collaboration with Google Cloud - Management highlighted that moving data to the cloud will improve efficiency in data analytics and enhance customer and employee experiences [102][104] Question: Regulatory updates and potential cuts to Medicare and Medicaid - Management expressed optimism regarding Medicare Advantage rate increases and is closely monitoring potential Medicaid cuts, which represent about 8% of their business [107][110]

Financial Data and Key Metrics Changes - Total company revenue for Q1 2025 was $5.4 billion, a decrease of 7% compared to Q1 2024 [28] - Adjusted operating margin was 14.5% [28] - Cash flow from operations was $377 million, and free cash flow was $124 million [7][35] - Reported net income per diluted share was $0.24, while adjusted net income per diluted share was $0.60 [27] Business Line Data and Key Metrics Changes - Completion and Production (C&P) division revenue was $3.1 billion, down 8% year-over-year, with operating income of $531 million, a decrease of 23% [29] - Drilling and Evaluation (D&E) division revenue was $2.3 billion, down 6% year-over-year, with operating income of $352 million, a decrease of 12% [30] - International revenue was $3.2 billion, a decrease of 2% year-over-year, while North America revenue was $2.2 billion, a decrease of 12% year-over-year [6][32] Market Data and Key Metrics Changes - Europe Africa revenue increased by 6% year-over-year to $775 million, driven by improved activity in Norway and Namibia [31] - Middle East Asia revenue also increased by 6% year-over-year to $1.5 billion, attributed to higher activity in Kuwait and Saudi Arabia [32] - Latin America revenue decreased by 19% year-over-year to $896 million, primarily due to lower activity in Mexico [32] Company Strategy and Development Direction - The company emphasizes technology, collaboration, and service quality as core to its competitive advantage [10][14] - Halliburton aims to maximize value in North America while driving growth engines internationally, particularly in unconventional, artificial lift, intervention, and directional drilling [15][19] - The company is focused on maintaining a strong position in the offshore market, leveraging advanced technologies for integrated projects [128][130] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty in the market due to trade dynamics and OPEC production, but remains confident in the fundamental role of oil and gas in global economic growth [8][11] - The outlook for international revenue is expected to be flat to slightly down, with strong tender activity and contract awards providing visibility [12][39] - Management anticipates solid free cash flow generation in 2025, with plans to return at least $1.6 billion to shareholders through buybacks and dividends [25] Other Important Information - The company recognized a pre-tax charge of $356 million related to severance costs and asset impairments [28] - Capital expenditures for Q1 were $302 million, with expectations of approximately 6% of revenue for the full year [35] Q&A Session Summary Question: North American activity outlook amidst commodity price volatility - Management indicated that customers are currently evaluating their activity scenarios, with a focus on production impacts from any potential declines in activity [45][48] Question: Trajectory of operations in Mexico - Management expressed that recovery in Mexico is uncertain, with expectations of a tough environment for the foreseeable future [51][52] Question: Growth prospects in Saudi Arabia - Management expects growth in Saudi Arabia, particularly in the Jafurah area, and highlighted opportunities in unconventional and artificial lift markets [57][58] Question: Margin progression expectations - Management provided guidance for Q2 margins, indicating specific impacts from tariffs and mobilization costs, with expectations for improvement in the second half of the year [60][66] Question: Impact of tariffs on business - Management noted a $0.02 to $0.03 impact per share from tariffs, with ongoing efforts to mitigate these effects through a diversified supply chain [94][96] Question: International spending outlook - Management highlighted solid growth in Norway and Brazil, with expectations for increased activity in Europe and Africa in the second half of the year [75][102]

Financial Data and Key Metrics Changes - In Q1 2025, GAAP diluted earnings per share was $9.61, and adjusted diluted earnings per share was $11.97, reflecting year-over-year growth of more than 10% [25] - Operating revenue for the quarter was $48.8 billion, an increase of over 15%, driven by higher premium yields in the health benefits segment and growth in Medicare Advantage and individual ACA membership [26] - The consolidated benefit expense ratio was 86.4%, an increase of 80 basis points year over year, primarily due to higher cost trends in the Medicaid business [27] Business Line Data and Key Metrics Changes - Medicaid business is making progress on rate alignment, with April adjustments coming in as expected [16] - Medicare Advantage performance was consistent with expectations, with strong retention and targeted growth [17] - Health benefits operating gain was $2.2 billion, slightly declining due to higher Medicaid costs, while Calon's operating gain grew 34% to $1.1 billion [29] Market Data and Key Metrics Changes - Individual ACA membership grew approximately 11% sequentially, but a moderation in membership is anticipated in Q2 due to lower effectuation rates [25][56] - The company is expanding into three new states to support broader strategy for coordinated ACA and Medicaid coverage [19] Company Strategy and Development Direction - The company is focused on transforming healthcare experiences to be simpler, more affordable, and more human, with sustained investments in patient advocacy solutions and digital platforms [9][10] - Expansion of value-based oncology care model to Medicare Advantage is planned, following success in the commercial sector [12] - Carillon continues to be a strategic growth engine, significantly expanding relationships with external payers [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for Medicare Advantage, emphasizing strong retention and disciplined growth [17] - Elevated Medicare costs are manageable, with consistent tracking of claims data to identify emerging patterns [39][41] - The company remains disciplined in its approach to benefit design and risk management, ensuring alignment with healthcare needs [129] Other Important Information - The company was named to Fortune's 100 Best Companies to Work For and recognized as one of America's most innovative companies [22] - Operating cash flow totaled $1 billion, with expectations for approximately $8 billion for the year remaining unchanged [32] Q&A Session Summary Question: Medicare Advantage trends and IRA impact - Management indicated that Medicare costs remain elevated but manageable, with no material changes in expectations [39][41] Question: Carillon Services growth and cross-sales - Carillon Services experienced over 60% growth, with strong internal and external expansion [47] Question: Effectuation rates and membership attrition - Membership attrition is projected in the mid-single digit percent range in early Q2, with stabilization expected thereafter [56] Question: Medicaid MLR margin trends - Medicaid trends remain elevated but decelerated as expected, with improvements anticipated in the latter half of the year [117] Question: Part D changes and utilization behavior - Management is comfortable with the mix of Medicare Advantage membership and has not observed substantial variations in utilization [140]