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Executive Donald Patrick and CFO Ryan Perfit responded that economic uncertainty is accelerating the sales pipeline. They described the Commerce Media model as moving towards predictable, long-term contracts with significant operating leverage and contribution margin positivity expected in 2025. Patrick detailed the Rebuy partnership as a seamless integration for merchants, representing a larger ecosystem than Fluent's current one and pure upside to guidance. Perfit addressed capital, stating the goal is positive free cash flow, but they have supportive investors and will raise funds as needed.

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The executive explained that Q3 Commerce Media performance met expectations while the Owned & Operated segment was negatively impacted by election-related media costs. He confirmed adding 15 new partners in Q3 and 5 in Q4, and expects continued strong growth in Commerce Media. For 2025, the company anticipates double-digit year-over-year growth, with the growth rate accelerating quarterly. The new loyalty business is differentiated by turning a traditional cost center into a profit center for partners by serving non-endemic ads to fund rewards.

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CEO Richard Kelley explained that cost-cutting is strategic and focused on optimizing business units rather than targeting a specific breakeven level. He noted the Mariner contract represents a new customer partnership with future growth potential. Kelley expressed optimism about the border security business, citing a government-wide focus that could benefit their technology. Regarding PRM, he stated that discussions are with national oil companies whose long-term strategic views are less affected by short-term price volatility. Kelley also detailed the success of the Hydroconn connectors, which are now in a mainstream adoption phase after years of growth, while positioning the Aquana smart valve as being in an earlier adoption cycle with a significant long-term addressable market.

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B. Martz (executive) stated that while no formal decisions have been made for 2026, the external quota share could be lowered from its new 15% level, contingent on reinsurance costs and availability. He also noted the internal quota share with the company's captive is increasing from 30% to 45% to enhance capital flexibility. Regarding the AmRisc fee, Martz explained that a profit-sharing component was added and the total fee increased by 1% of written premium, with most of the increase passed on to producers to maintain revenue levels in a softening market.

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Executive B. Martz stated that while no formal decisions have been made for 2026, the external quota share could be lowered from its new 15% level depending on market conditions and the company's strategic partnership with Arch. Martz also revealed a significant increase in the internal quota share ceded to its captive, from 30% to 45%, to protect the regulated entity and build capital. Regarding the AmRisc fee, he explained it was increased by 1% of written premium, with most of the increase being passed on to producers to maintain stable commission revenues in a softening market. A new profit-sharing component was also added to the agreement.

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B. Martz (executive) clarified the $200-$300 million apartment market opportunity compares to the current $646 million in-force condo premium. He described the launch as a 'heavy lift' involving developing and filing rates, building new policy administration systems, and establishing distribution. Martz noted that while there are some opex efficiencies, the profitability goal is a combined ratio comparable to the mature condo book, emphasizing that risk selection is paramount. He opined that the California fires would have minimal impact on ACIC's renewal. Finally, he explained the new cascading catastrophe bond provides superior protection for high-frequency hurricane seasons by dropping down to cover second and third events.

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CEO Beth Garvey explained that customer behavior is sector-dependent, with manufacturing clients being more cautious while others, like education, are moving forward. She attributed the Professional segment's Q1 strength to fewer project completions than is typical for the period. Both Garvey and Executive Keith Schroeder attributed the Property Management rebound to a combination of internal strategic initiatives, including sales team restructuring, new service agreements, and expanded sales territories, rather than just market improvement alone.

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President and CEO Brett Larsen detailed the five wins: a $12M telecom program, a $6M pest control project, a $7M energy program, a $2-5M consumer product, and a $1M design contract with potential to become a $5-15M production program. Larsen noted that wins with Fortune 500 companies open doors for future business. He confirmed the $60M program is proceeding, will start generating revenue in Q1 fiscal 2026, and is expected to take 12-18 months to fully ramp.

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President and CEO Brett Larsen explained that the new aerospace program is valued at $5 million and will ramp in late calendar 2025. He clarified the component shortage was an isolated issue driven by a customer's specific part that saw a sudden spike in industry demand, which is now resolved. Larsen noted that the threat of Mexico tariffs has unsettled customers, validating Key Tronic's strategy to expand capacity in the U.S. and Vietnam. He expressed high confidence in the new $60M+ energy win, citing that the customer is well-financed, the product is a market disruptor, and it is already successfully in the market.

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The program ramp-up is affected by component lead times, staffing, and holidays. The delays were customer-side design issues. The capitalized variance is a temporary gross margin headwind from selling through higher-cost inventory produced before recent cost-cutting measures in Mexico were fully realized. Q2 guidance is lower due to holiday shutdowns. The China facility wins local business with its technical expertise. Macro demand is mixed but showing signs of recovery. The company is highly focused on return on invested capital for all new and existing programs.

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The executive confirmed that most of the $10 million in savings will be realized in fiscal '25 and was the primary driver for the Q4 gross margin improvement. They detailed four new wins totaling over $35 million, expected to ramp within a year. The cybersecurity costs were primarily in COGS, and recovering the associated $15 million in revenue will likely take most of fiscal '25. Legacy customer demand is strengthening, with forecasts suggesting a return to 2023 levels within six months.

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Chairman and Interim CEO David King explained that customers are not fundamentally changing their generation plans, such as substituting with natural gas. Since battery storage is often not the major part of a project, clients are primarily managing the timing of their battery purchases to optimize economics rather than altering the project's core design.

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CEO Aaron Schapper clarified that the weaker Vehicle group outlook stems from broad economic uncertainty, tariff ambiguity, and high interest rates impacting RV and marine sales, describing it as a customer 'pause' rather than active destocking. Regarding the Distribution business, Schapper stated he is still in a learning phase and is focused on meeting with customers to ensure Myers' services align with their needs and create value, indicating a detailed turnaround plan is still under development.

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EVP & CFO Grant Fitz stated his belief that Myers is in a 'very good position' relative to competitors on tariffs, due to its primarily U.S.-based manufacturing and supply chain. On the RV and marine markets, Fitz clarified that while the industry is in a trough, there are signs of stabilization and channel inventories appear to be declining from 2023 highs. CEO Aaron Schapper added that new vehicle designs present ongoing opportunities for Myers to secure new business with improved margin profiles, and Fitz noted they are actively working with marine customers on beneficial design changes.

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Interim CEO Dave Basque confirmed the new Distribution team has industry relationships and is actively recruiting to fill identified sales territory gaps. CFO Grant Fitz added that the team quickly launched a promotional program for the SEMA conference. Regarding the cost savings, Fitz explained the original tranche's implementation would continue through 2025, similar to the new $15 million plan, but would be more front-loaded and likely completed earlier.

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Executive Scott Wylie explained that while Q1 payoffs were lower at $70 million, a more typical rate is $100 million per quarter. He expressed optimism that momentum from March could lead to net loan growth in Q2 despite higher expected payoffs. Wylie confirmed that recent high-profile hires, including market presidents and new wealth management leaders, are a significant factor contributing to the positive outlook and balance sheet growth.

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Executive Scott Wylie confirmed that the loan pipeline has increased significantly, with a focus on good quality C&I and owner-occupied CRE loans, attributing this to improved client confidence. He explained that the year-over-year decline in the C&I book was partly due to the resolution of a large problem loan and normal business fluctuations. He affirmed that the current strong C&I pipeline is a result of both concerted strategic efforts coming to fruition and a more confident economic backdrop for customers.

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CEO Scott Wylie and COO Julie Courkamp attributed the mortgage strength, particularly a strong September, to both pent-up market demand and the successful onboarding of new talent. Julie Courkamp specified that 7 new MLOs had been hired during the year on a base of around 15-17, representing a nearly 50% increase in the team. She added that they plan to hire 2 more in Q4, with all recent hires focused on Colorado's Front Range. They acknowledged Phoenix as a key growth market where they are actively recruiting.

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CEO George Maxwell responded that the new H2S processing capability does unlock additional drilling locations. He confirmed that an additional well is planned for the Ebouri field in the 2025-2026 program, which could potentially de-risk further opportunities on the other side of a fault line and in other isolated areas between the Ebouri and Etame fields.

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George Maxwell (executive) and Ronald Bain (executive) explained the Cote d'Ivoire production increase was due to a full quarter of production in Q3 versus two months in Q2, plus strong well performance. For the new Gabon blocks, production is not expected until late 2027. Regarding the Egyptian receivable, management is pushing for a single U.S. dollar payment and hopes for movement by Q1 2025.

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Executive David Duvall identified the customer for the mats as rental companies like Sunbelt. Executive John Zimmer explained the H2 revenue increase will be a combination of a truck market rebound, new business launches, and significant tooling revenue. He confirmed that the high tooling sales, along with an expected truck market peak, are a strong positive indicator for a 'really good year' in 2026, positioning 2025 as a transition year.

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The new structure aligns sales and execution teams into focused 'solutions' and 'partner' units to better serve distinct customer needs, a change from the previous functional approach. The recent business wins are attributed to an accumulation of actions, including hiring experienced salespeople and marketing efforts, which the new focused structure should accelerate. Customer incentives are confirmed to come primarily from local utilities, not the federal government.

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CFO Per Brodin detailed the restructuring, which involved reducing technician headcount and vacating a leased facility, with about half the $300K Q2 charge being a lease breakage fee. CEO Mike Jenkins clarified that strong second-half LED growth does not imply EV weakness; he expects the EV segment to continue its 40%+ growth pace. Regarding forecasting, Jenkins provided an example of a large customer delaying a project due to their own internal capital project scheduling, which is difficult for Orion to predict precisely.

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CFO David Lee explained that operational efficiency improved sequentially, driving margin expansion. Chairman, President and CEO Selwyn Joffe elaborated that it was the result of 'a 1,000 little things,' including production efficiencies and manufacturing volume for new business that is not always tied directly to quarterly sales. Regarding brakes, Joffe noted that while the business is ramping up and contributing, the facility's ultimate capacity appears greater than first anticipated, offering further growth potential.

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CFO David Lee clarified that the operating income guidance was not an increase but a consolidation of previous guidance with disclosed noncash items. Chairman, President and CEO Selwyn Joffe attributed strong ordering momentum in rotating electrical and brake calipers to key customers, despite a soft market. Joffe explained that transition costs related to relocating wheel hub and special order operations, while onboarding costs were for a new rotating electrical contract with an existing customer. He confirmed that engineering, testing, and corporate functions remain in Torrance, a price increase is planned for January, and the professional installer initiative is gaining traction.

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It was confirmed that the working capital true-up will be a cash receipt in the low-teens millions within the next couple of quarters. The October surge was driven by a resumption of normal activity in the South after a Q3 lull, plus some hurricane-related work. Unplanned plant CapEx was less than $1 million, but higher demand also drove spending on new mats. The strong Q4 EBITDA margin is due to a favorable mix with high-margin rental revenue. Regional expansion is a multi-step process starting with sales force deployment to build relationships before committing significant assets.

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The company confirmed the ~$30 million mat sale was primarily to one customer historically using wood mats. Regarding fluid margins, the adjusted EBITDA margin actually declined sequentially and year-over-year, but the year-over-year decline was partially offset by improved international pricing and U.S. cost actions. No specific new pricing actions are planned, but the company is benefiting as more work rolls onto contracts with better pricing.

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The pipeline has larger projects due to both market trends and the company's increased capability and reputation. The strong Q1 exit was due to project timing. The company did not comment on the specifics of the Fluids sale process but noted improved profitability in that segment was due to a favorable business mix, pricing power, and cost reductions.

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Executives confirmed that approximately 75% of 2024 CapEx will be for fleet expansion, with a focus on the Midwest and Northwest regions due to high project activity. They clarified they already cover the entire country but are establishing more permanent presences in these growth areas. Revenue potential is tied to project activity (like renewable tie-ins and grid hardening) more than geography. Grid hardening is needed nationwide, especially in the Southeast and Southwest. The increased quote rate refers to a 15-19% year-over-year increase in quote volume, signaling strong underlying demand.

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Executive Thomas Stanton detailed several major deployments set for 2025, including large multinational carriers in Europe and South America, and two recapitalized Tier 2 carriers in the U.S. upgrading their networks. He agreed with the sentiment that the company has never had so many won opportunities waiting to come online simultaneously. While hesitant to use the term 'monsoon,' he confirmed the underlying premise of a significant upcoming ramp in activity is correct.

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CEO Robert Beck explained that the significant yield increase was driven by a strategic mix shift toward originating higher-rate, higher-risk small loans, not just repricing existing ones. He affirmed that the customer graduation strategy remains a core part of their model, as top-performing customers in this segment can still graduate to larger loans at lower rates. Beck also confirmed that accelerating growth in ending net receivables creates a near-term drag on earnings due to the upfront provisioning required by CECL, providing a specific mathematical example based on their growth guidance.

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The main restraint on clinic growth is the supply of the pharmaceutical-grade NIAGEN material, which has a complex manufacturing and testing process. The early patient response, mostly from those converting from traditional NAD IV, has been extremely positive due to shorter session times and fewer side effects. The company declined to provide a 2025 forecast, stating it was too early to assess the market.

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Executives clarified that acquisition costs were for professional services. They emphasized their M&A strategy focuses on cultural fit and retaining talent, which they see as a competitive advantage. They expect a seasonally strong Q4, consistent with historical patterns, and view the macro environment for their software and security offerings as very strong, with potential upside from any hardware refresh cycle.

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CFO Andrew Clark clarified that recent acquisition costs were primarily for professional services. CEO Dale Foster explained their M&A strategy focuses on cultural fit and retaining personnel, which he views as a competitive advantage for attracting targets. Foster also confirmed expectations for a historically strong Q4, driven by budget cycles and renewals, and described the current macro environment from their software-focused perspective as 'very strong' with no signs of a downturn.

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CFO Andrew Clark clarified that recent acquisition costs were primarily for professional services related to the DSS and DataSolutions deals. CEO Dale Foster explained Climb's M&A strategy prioritizes cultural fit and retaining personnel, avoiding large severance actions, which he believes is an advantage in closing deals. Foster confirmed Q4 is expected to remain seasonally strong due to budget cycles and license renewals, despite ongoing ERP system integration challenges. He characterized the macro environment as very strong from Climb's perspective, driven by resilient software and security demand, with a potential upside from a future hardware refresh cycle.

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The company confirmed the ID Verification product is a door-opener to universities that are not current disbursement clients and that there are synergies. The product roadmap includes more offerings for universities. The new AI technology is initially viewed as a tool for operational expense reduction rather than direct revenue generation. The rewards engine has seen strong early adoption (30% of active users) and a transaction lift (1.4 more per month) that is slightly ahead of plan, with a frictionless sign-up process.

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CEO Robert Lisy affirmed the view that European consumers, including migrants, have better access to banking, making them more receptive to digital services. Regarding competitor failures, Lisy attributed Small World's demise to a lack of focus and Sigue's to poor technology and unwise investments. He contrasted this with Intermex's metrically-driven strategy, strong focus on core profitable corridors, and superior technology, which have built a resilient and profitable business.

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CEO Robert Lisy confirmed that higher bank account penetration in Europe makes the market more receptive to digital services. He cited a recent U.K. acquisition where over 85% of retail transactions use a debit card. Regarding competitor failures, he opined that Small World was too diluted and lacked focus, while Sigue suffered from poor technology and unprofitable investments, contrasting their approaches with Intermex's metrically-driven strategy focused on core, profitable corridors.

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