Capstone Holding Corp. (CAPS) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for downloading Capstone's 2024 year-end financial results presentation. The following content is completely qualified by the legal disclosures on the following two slides. Our goal is to share with you some of our strategic thinking and financial analysis we are using to guide the growth of our business. The content is in line with our principles of being accountable and transparent with shareholders. We operate in a hyperdynamic economic environment. That's a fancy way of saying things change quickly. What we are telling you here is based on our estimates and assumptions, which are our best guesses. We reserve the right to revise our point of view based on new information and changes in the business environment. Due to an uncertain dynamic environment, we must plan and make operating and investment decisions. This presentation lays out some of that for your review. Starting off, let's review Capstone's goals for 2025. Our goal is to come out of this year with our operating subsidiaries having run rate revenue of $100 million and adjusted EBITDA of $10 million. We expect to achieve this through InStone's focus on organic revenue growth, margin expansion and cost control, as well as through a series of strategic acquisitions. We are having discussions with potential acquisition candidates, and based on what I know as of now, this is an achievable target for the year. As we have discussed, we will focus on three types of acquisitions, tuck-ins, sister companies, and platforms. I will elaborate more about this on the next page. From my experience, This is a favorable market for acquisitions. We believe that we can negotiate fair but attractive purchase multiples and structures. We are targeting purchase multiples between 4 to 6 times EBITDA and purchase struc...