The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brian Burrows - Thompson Research Group - Analyst
: Hey, good morning, thank you for taking my question. Q1 results on it, a few more results slightly better than expected. I think notably on the gross
margin and SG&A line both slightly better than guidance. I think part of that is the success of the one interface strategy and off. You just expand
more on how those two items kind of performed in the quarter to come in ahead of expectations.
Question: Brian Burrows - Thompson Research Group - Analyst
: That sounds pretty good. I guess a good segue to my next question on guidance is. Raised a little bit on the lower end, we just wonder what the
driver of that was if it was kind of FX or if it was confidence in the visibility here given Q1 and Q2, it sounds like it's more like that, but maybe just
some comments on guidance given the strength you're seeing.
Thank you.
Question: Brian Burrows - Thompson Research Group - Analyst
: I think guidance was revenue guidance was raised on the lower end from 1.315 to 1.34.? Yes, yes.
Question: Alex Paris - Barrington Research - Analyst
: Hi, guys. Thanks for taking my questions. I wanted to ask a question about... geographic growth. So in the Americas, we were up 6.4% currency
neutral net sales. And in EAAA, we were up 1.1% on the same basis. I was wondering, can you unpack EMEA and APAC, how they did? And I'm
particularly interested in China.
Question: Alex Paris - Barrington Research - Analyst
: And were you referring to currency neutral or reported that sales?
Question: Alex Paris - Barrington Research - Analyst
: Okay, so on a currency neutral basis, sales were up double digits in EAAA or was those bookings?
Question: Alex Paris - Barrington Research - Analyst
: Gotcha. Thank you. And then I was going to ask you about government also. I know that's a small part of the business. three or four percent or so.
You're working with all types of government buildings, museums, military, et cetera, both local and at the federal level. And I'm just wondering
what the pushes and the pulls are in there, you know, return to office, layoffs, doge. There's both a risk and opportunity in there, I think.
Question: Alex Paris - Barrington Research - Analyst
: Gotcha. I asked the question only because you covered tariffs in the prepared remarks, and I thought that that could be a potential area of risk. But
as I thought about it, opportunity given the churn likelihood.
Question: Alex Paris - Barrington Research - Analyst
: Good. And then the last question for me is balance sheet. Given where debt stands today and where the leverage ratio is 1.1 times, it looks like you
paid off. The vast majority of the variable rate debt and all we have left is the 5.5% senior notes due 2028. Wondering if you are contemplating any
changes to capital allocation going forward as such.
Question: Alex Paris - Barrington Research - Analyst
: Great. And then I just want to add one back to the tariffs as I think about it. You said basically the exposure is fairly limited. Nora in Germany and
LTV from South Korea. It's about 15% of your total global cost. Is that what you said?
Question: Alex Paris - Barrington Research - Analyst
: And I think you said those plans are reflected in your guidance.
Question: Alex Paris - Barrington Research - Analyst
: Excellent thanks that'll do it for me for now.
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