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    David Storms • Stonegate

    David Storms's questions to Information Services Group Inc (III) leadership

    David Storms's questions to Information Services Group Inc (III) leadership • Q1 2025

    Question

    David Storms inquired about the growth pace in the Americas for Q2 following a strong Q1, and asked which end markets in Europe are showing early signs of a rebound.

    Answer

    CEO Michael P. Connors stated that ISG expects continued double-digit growth in the Americas in Q2, driven by strong demand in both transformation and optimization. For Europe, he noted that ongoing uncertainty from tariffs, geopolitics, and election cycles is delaying a rebound. While the pipeline is increasing, he anticipates improvement in the second half of the year, specifically Q3 and Q4, rather than seeing growth in Q2.

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    David Storms's questions to Information Services Group Inc (III) leadership • Q4 2024

    Question

    David Storms of Stonegate Capital Partners questioned the outlook for recurring revenue in 2025, including the impact of contract renewals and the pipeline. He also asked which other end markets, besides banking and APAC government, investors should watch in the coming year.

    Answer

    Michael Sherrick, EVP and CFO, explained that while recurring revenue was flat quarter-over-quarter, this was due to contract timing and he expects continued year-over-year absolute growth in 2025. Michael P. Connors, Chairman and CEO, highlighted energy, utilities, health sciences, and technology as strong end markets, while cautioning that automotive and consumer sectors could face weakness.

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    David Storms's questions to Information Services Group Inc (III) leadership • Q3 2024

    Question

    David Storms questioned which pipeline segments might monetize the quickest, the future direction of headcount given high utilization, and whether any other parts of the portfolio are candidates for divestiture following the automation unit sale.

    Answer

    CEO Michael P. Connors identified the consumer and manufacturing segments as moving aggressively, with significant potential in energy/utilities and private equity channels in 2025. CFO Michael Sherrick explained that future headcount additions will be opportunistic, focusing on AI skills. Connors concluded that no other divestitures are planned, expressing satisfaction with the current asset portfolio and its growth prospects.

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    David Storms's questions to Gladstone Commercial Corp (GOOD) leadership

    David Storms's questions to Gladstone Commercial Corp (GOOD) leadership • Q1 2025

    Question

    David Storms of Stonegate Capital Partners questioned management's perspective on the portfolio's average lease term duration ahead of 2026-2027 negotiations and inquired about the competitive landscape on the leasing front.

    Answer

    President Buzz Cooper stated he feels good about the lease term, expecting it to increase back over seven years with upcoming acquisitions. He emphasized a strategy that balances long-term deals with shorter-term leases on mission-critical assets to capture rent growth. Regarding leasing competition, he noted it's primarily from end-users and that Gladstone is very competitive in its markets.

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    David Storms's questions to Gladstone Commercial Corp (GOOD) leadership • Q4 2024

    Question

    David Storms asked for the expected timing of the sales for the two assets currently held for sale. He also inquired about the spread in cap rates between the assets being sold and those in the acquisition pipeline.

    Answer

    President Arthur 'Buzz' Cooper stated that one held-for-sale asset is contracted to close on April 1, with the other expected to close in the second quarter. He noted that acquisition cap rates are in the 7.5% to 8% range, while disposition cap rates are 'somewhat a little bit higher' because they are office properties.

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    David Storms's questions to Gladstone Commercial Corp (GOOD) leadership • Q3 2024

    Question

    David Storms asked for more details on a new property under contract, including its anticipated cap rate and closing timeline, and also inquired about the broader cap rate environment and the reason for a decrease in tenant count.

    Answer

    President Arthur Cooper stated the new property acquisition is set to close in Q4 with a cap rate over 9%. He noted that while the market remains competitive, cap rates appear to be declining slightly as seller expectations adjust. He clarified that the quarter-over-quarter drop in tenant count was a direct result of property sales, not tenant departures.

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    David Storms's questions to Olympic Steel Inc (ZEUS) leadership

    David Storms's questions to Olympic Steel Inc (ZEUS) leadership • Q1 2025

    Question

    David Storms asked for the outlook for the pipe and tube segment beyond the second quarter and inquired about the company's strategy for working capital and inventory management, particularly for the 10% of its metal supply that is not domestically sourced.

    Answer

    President and COO Andrew Greiff stated that the pipe and tube segment will see continued opportunities from onshoring, especially in data centers, supported by significant investments in fabrication capabilities. CFO Richard Manson addressed working capital, noting a $37 million debt reduction in Q1 and expecting larger reductions in the second half of the year, targeting debt in the low $200 million range by year-end. Andrew Greiff added that inventory levels are appropriate and the domestic supply base is stable and sufficient for growth.

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    David Storms's questions to Olympic Steel Inc (ZEUS) leadership • Q4 2024

    Question

    David Storms asked for details on expected synergies from the Metal Works acquisition, an assessment of the company's market share across its end markets for 2025, and any early market reactions observed from recent tariff discussions.

    Answer

    CEO Rick Marabito explained that Metal Works synergies are primarily from supply chain integration, including sourcing and first-stage processing, rather than back-office cost cuts. President and COO Andrew Greiff stated that market share has grown most significantly in coated products, particularly galvanized, and that they continue to gain share in stainless and aluminum. Greiff also detailed that tariff talks have caused an immediate jump in hot-rolled futures, extended mill lead times, and prompted domestic producers to raise spot prices.

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    David Storms's questions to Olympic Steel Inc (ZEUS) leadership • Q3 2024

    Question

    David Storms inquired about the implementation timeline for new machinery, including employee training, and asked for an update on the M&A environment, specifically whether Olympic Steel is targeting more countercyclical companies.

    Answer

    President and COO Andrew Greiff explained that employee training for new equipment can occur before it arrives and that machinery will be operational very shortly after installation, with benefits expected in 2025. CEO Rick Marabito confirmed the company is actively pursuing acquisitions, aiming for about one per year, and is focused on countercyclical end-market companies, high-margin fabricators, and service centers.

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    David Storms's questions to Materion Corp (MTRN) leadership

    David Storms's questions to Materion Corp (MTRN) leadership • Q1 2025

    Question

    David Storms of Stonegate Capital Markets questioned if strong Q1 volumes were driven by customers pulling orders forward due to tariff concerns and asked if the projected Q2 EPS headwind could be recovered later in 2025 if the macro environment improves.

    Answer

    President and CEO Jugal Vijayvargiya responded that he does not attribute the Q1 strength to a net pull-forward, suggesting that any customers who accelerated orders were likely offset by others who paused. Regarding a potential recovery, he stated the company's goal would be to recapture as much of the lost business as possible within the year, but acknowledged that the outcome is dependent on the timing of any resolution.

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    David Storms's questions to Materion Corp (MTRN) leadership • Q4 2024

    Question

    David Storms from Stonegate asked for an estimate on the remaining timeline for the beryllium nickel inventory correction and the outlook for the industrial market. He also questioned whether future divestiture-related costs for facilities in Asia would be of a similar magnitude to the recent New Mexico charge.

    Answer

    President and CEO Jugal Vijayvargiya stated that the beryllium nickel inventory correction is nearly complete, with orders returning to near-normal levels and normalcy expected by mid-year. He anticipates slow growth for the broader industrial market throughout the year, with more growth in the second half. VP and CFO Shelly Chadwick confirmed that any costs related to rightsizing facilities in Asia would not be of the same magnitude as the recent $7 million charge for the Albuquerque divestiture.

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    David Storms's questions to Materion Corp (MTRN) leadership • Q3 2024

    Question

    David Storms from Stonegate inquired about the remaining runway for significant cost reductions, asked if there were any positive signs in consumer electronics beyond the precision clad product, and questioned if any unusual seasonality is expected for 2025.

    Answer

    VP and CFO Shelly Chadwick described the cost actions as a thoughtful, step-by-step process rather than a single large program, emphasizing a continued balanced approach between cost management and growth investment. President and CEO Jugal Vijayvargiya stated that the broader consumer electronics market remains choppy with no other meaningful positive indicators at this time. He confirmed that for 2025, he expects the company's typical seasonality patterns to apply, with no abnormal factors anticipated.

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    David Storms's questions to Stepan Co (SCL) leadership

    David Storms's questions to Stepan Co (SCL) leadership • Q1 2025

    Question

    David Storms of Stonegate questioned whether the Q1 volume growth was driven by customer inventory pre-buying due to macro uncertainties. He also sought clarification on the improved customer mix, asking about the nature and loyalty of new Tier 2 and Tier 3 customers.

    Answer

    President and CEO Luis Rojo stated the company does not believe there was any significant customer overstocking in Q1, noting that high interest rates discourage holding excess inventory. He added that April dynamics remained strong, particularly with an acceleration in Polymers growth, which they are monitoring for any pre-tariff build. Rojo explained the positive mix is driven by both new Tier 2/3 customers and growth in higher-margin end markets like agriculture and oilfield, which helped offset the margin drag from rising oleochemical raw material costs in Surfactants.

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    David Storms's questions to Stepan Co (SCL) leadership • Q4 2024

    Question

    David Storms inquired about the remaining growth potential for Stepan's agricultural (Ag) business through 2025 and asked for an assessment of the Polymers segment, seeking to identify any specific areas of strength or 'green shoots' within the challenged division.

    Answer

    Luis Rojo, President and CEO, explained that after 30% growth in H2 2024, he expects double-digit growth in the Ag business to continue into H1 2025. For Polymers, Rojo acknowledged the overall sluggish demand but highlighted positive performance in the specialty polymers business and strong growth in China. He also pointed to the upcoming launch into the spray foam market as a key growth initiative for 2025.

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    David Storms's questions to Stepan Co (SCL) leadership • Q3 2024

    Question

    David Storms asked about potential catalysts for a rebound in the polymers business, the remaining opportunity for improving the customer mix in surfactants, and whether to expect any significant planned plant shutdowns in the fourth quarter.

    Answer

    CEO Luis Rojo identified a moderation in interest rates in 2025 as a key catalyst for the construction-linked polymers business, citing strong long-term fundamentals like reroofing demand. In surfactants, he described a significant growth runway with Tier 2/3 customers, a market of over 40,000, through a strategy of new customer acquisition, cross-selling, and mix sweetening. Rojo also confirmed two planned turnarounds for the polymers business in Q4, which explains the inventory build-up seen in Q3.

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    David Storms's questions to Alliance Resource Partners LP (ARLP) leadership

    David Storms's questions to Alliance Resource Partners LP (ARLP) leadership • Q1 2025

    Question

    David Storms asked about Alliance Resource Partners' production capacity levels in light of strong volumes and commitments, and whether the decline in industry-wide coal inventories might lead to a catch-up buying spree from utilities.

    Answer

    Chairman, President and CEO Joseph Craft clarified that ARLP's 2025 production capacity is reflected in the current guidance, with potential for a slight increase. He projected that for 2026, capacity could grow by another 1 million tons from Tunnel Ridge and potentially 1-1.5 million tons from Riverview, market permitting. Regarding inventories, Craft stated that utilities are not looking to build stockpiles but are buying to meet current consumption, which remains strong. He sees this as a normalization of buying patterns to meet demand rather than a precursor to a buying spree.

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    David Storms's questions to Alliance Resource Partners LP (ARLP) leadership • Q1 2025

    Question

    David Storms from Stonegate inquired about Alliance Resource Partners' production capacity levels in light of strong volumes and commitments, and also asked for an outlook on industry-wide coal inventories and future utility buying patterns.

    Answer

    Joseph Craft, Chairman, President and CEO, clarified that ARLP's current production capacity is reflected in the 2025 guidance, though some upside may exist. He projected a potential capacity increase in 2026 of 1 million tons from Tunnel Ridge and 1-1.5 million tons from Riverview due to better mining conditions and new reserves. Regarding inventories, Craft stated that utilities are not looking to build stockpiles but are buying to meet strong current demand, driven by a favorable natural gas market, and are focused on filling contracts for 2026 and beyond.

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    David Storms's questions to OppFi Inc (OPFI) leadership

    David Storms's questions to OppFi Inc (OPFI) leadership • Q4 2024

    Question

    David Joseph Storms asked for more detail on the drivers behind the expected reduction in earnings seasonality for 2025 and questioned the potential upper limit for automation in the loan approval process.

    Answer

    CEO Todd Schwartz explained that the company's new model incorporates seasonal credit loss performance, which is expected to smooth out earnings throughout 2025. Regarding automation, he stated that while reaching 100% is likely impossible, they will continuously work to improve the metric due to its significant benefits for operational efficiency, funnel metrics, and customer satisfaction.

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    David Storms's questions to Valens Semiconductor Ltd (VLN) leadership

    David Storms's questions to Valens Semiconductor Ltd (VLN) leadership • Q4 2024

    Question

    David Storms asked about the expected revenue cadence for 2025 and the current environment for new customer acquisition in the cross-industry business (CIB) as inventory digestion subsides.

    Answer

    CFO Guy Nathanzon stated that while specific quarterly guidance beyond Q1 is not provided, a revenue ramp is generally expected in the second half of 2025 as new VS6320-based designs are commercialized. CEO Gideon Ben-Zvi added that the inventory crisis is largely behind them, with the market recovering and customer inventory levels normalizing, which supports new customer activity.

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    David Storms's questions to Forum Energy Technologies Inc (FET) leadership

    David Storms's questions to Forum Energy Technologies Inc (FET) leadership • Q4 2024

    Question

    David Storms asked for details on the assumptions driving the 2025 EBITDA guidance, which projects a slight decrease despite the 'Beat the Market' strategy, and inquired about any specific pockets of market strength.

    Answer

    President and CEO Neal Lux clarified that the EBITDA guidance range accounts for a potential overall market activity decline of 2% to 5%. The final result within that range will depend on how successfully the company's market share gains can offset this decline. Lux identified consumables and international markets—specifically Canada, Kuwait, Oman, and Abu Dhabi—as current bright spots.

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    David Storms's questions to Forum Energy Technologies Inc (FET) leadership • Q3 2024

    Question

    David Storms asked about the primary drivers for the increased free cash flow guidance, the profile of potential M&A targets, and the possible impact of U.S. election tariffs on international business.

    Answer

    CFO Lyle Williams explained that the raised free cash flow forecast is based on fixed cash obligations (interest, taxes, CapEx) and assumes stable EBITDA and working capital, with upside potential from growth. CEO Neal Lux added that ideal M&A targets would resemble the successful Variperm acquisition—differentiated, high-margin, niche businesses. Regarding tariffs, Lux stated the company is more focused on managing raw material supply chains, a process they have refined by diversifying suppliers since the last administration.

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