Capstone Holding Corp. (CAPS) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for downloading Capstone's 2024 Q1 2025 financial results presentation. This slide is our preamble and summary of our legal disclosure. The following content is fully qualified by the legal disclosures on the next two slides. Our goal is to share with you some of the strategic thinking and financial analysis we're using to guide the growth of our business. This content aligns with our principles of being accountable and transparent with shareholders. We operate in a hyper-dynamic economic environment. That's a fancy way of saying things change quickly. What we're telling you today is based on our best estimates and assumptions. We reserve the right to revise our views as new information becomes available. Despite uncertainty, we must plan. We must make operating and investment decisions. this presentation lays out some of that thinking for your review. Let me hit a few high points, which I'll go into more detail on later. First, Capstone's 2025 target remains unchanged. $100 million in run rate revenue and $10 million in run rate adjusted EBITDA from Capstone's operating businesses. Our acquisition pipeline is building as expected. We continue to see a target rich environment with acquisitions priced in the four to six times EBITDA range. InStone had a slower start to the year, mostly due to a harsher than usual winter and politically induced economic uncertainty. Still, InStone is reaffirming full-year revenue guidance of $47.5 to $49 million. Gross margins were affected by a slower start to the year. Fixed freight and overhead costs were spread across lower volumes, but we expect margins to normalize as the year progresses. SG&A remained well-controlled thanks to cost reductions implemented in 2024. And finally, as we aim to close transactions in our acqu...