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[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. Thanks guys. For my one question, I just wanted to dive into, Keith, in your prepared remarks you made the comment that the majority of growth was driven by FortiGate, are driven by FortiGate revenue from other capabilities embedded in the operating system.
I wondered if you could kind of peel back the onion there. What does that mean? And what capabilities were you referring to that were in particular demand in the quarter?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Okay. Well, with that, thank you very much for joining us today. We look forward to having the next quarterly call in July, and we'll give you another update on QB2 then. We're very excited to have passed the halfway point, very excited with our progress in the last four weeks. We do see some improvement in the cover situation in Chile. We certainly hope that continues and that allows us to ramp back up to peak workforce toward the middle of the year. We're delighted to have Neptune in the full commissioning stage, 18 ships having already been loaded.
As I said, I was there on Monday, it's looking terrific, and it's going to be a tremendous long-term asset for our coal business and structurally lower the cost for decades to come and allow us to deliver high-quality metallurgical coal to our customers when they want it when prices are high. Once again, thank you all. Have a good day.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, when we started the year, we expected the quality headwinds to be more skewed toward the first half, given we were expecting prices to come down. But as we -- as where the prices are sitting right now, I think that commodity headwind is probably evenly spread out throughout the year, just given the commodity prices are hanging in a little bit longer, so we are expecting that to continue throughout the year.
So that is where. But it's good to see, Julian, despite that, I mean if you look at our profit guide even for balance of the year, we're expecting close to $40 million improvement in our New Equipment earnings. So we are absorbing that, you're seeing the benefit from volume. So we see continued improvement on the New Equipment profitability. The margins are higher in the second half. I mean, based on the guide that we provided, our margins for the remaining three quarters of the year, up 50 basis points year-over-year. So not only we saw very strong margin expansion in the first quarter given the volume increase, but even as we go through the rest of the year, second half compares do get tougher, just given the strong growth that we had a New Equipment segment, especially in the fourth quarter. But despite that, we are seeing a 50 basis point improvement in the margins in the remaining three quarters of the year with continued profit growth.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks, Raimo. That wraps up the Q&A portion of today's earnings call. Thank you for joining us today, and we look forward to speaking with all of you soon.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, so -- yeah, so let me see because this will be easy to understand. The -- our original plan to file PerClot was under the assumption that CryoLife could be distributing the product to our channel in the U.S. And all we needed for that was we were going to file with open surgery and what I call small scale manufacturing, which is not huge volumes, and that would have been fine for CryoLife's launch. In discussions with potential partners, they want a lot more product and they want laparoscopic, which is where a big chunk of this is.
So instead of kind of filing for a smaller indication or a lesser indication with not enough product, we said why don't we just wait a couple of quarters, go to a larger -- it's basically technical stuff, I mean, we've got to do some testing and validations to get up to the larger scale capabilities, so we can make more product and a simple way to say it, and then the laparoscopic is just we have to do an animal study. So that'll all be done by this summer and we'll submit the PMA in Q3, which will give us access to a bigger market with the ability to produce a lot more.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. So, this is Todd. The margins are -- we're seeing improvement on the Quest side, they are definitely getting a bit closer to the legacy Atkins business. So we're probably about two points below from a margin -- gross margin perspective. Some of the -- some of the synergies have kicked in from a logistics standpoint. Some of the -- we're starting to see some of those benefits. We have a number of other projects from a supply chain perspective that will kick in later in the year. So I think we'll continue to see some progress against those gross margins.
Again, it's just the business channels that it's in, some of the forms that are in long-term, it's probably always going to be a little bit less than legacy Atkins, but we're definitely making some progress.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Good morning, Michael.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, Ki Bin to speak to just interaction with all shareholders, we have and will continue to be in active dialog with our entire shareholder base and we are continuing to drive the business on many different fronts as we've talked about, we've got very unique and commanding strategies and capabilities. We are clearly focused on tapping into many of those and we'll give you the more perspective on that in our Investor Day on May 3rd.
This is not coming from one specific event or one and very distinct change in strategy, it's something that we're very focused on from an evolution, an opportunity standpoint and the management team and I are very focused on delivering strong shareholder returns through a variety of very commanding strategies that we've identified, some of which we spoken about today and more that will speak about in May. So we'll continue to be as transparent as we can be, and we welcome and continue to have very active dialog with our shareholders.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, I'm going to let -- I'm going to -- before I pass it over to Mike to answer some of this, one thing I would just say is the portfolio is very stable. And I don't know if we could have said that four years ago, it was more challenging. We have a very, very stable tenant and portfolio base. So you have to have that as a starting point and then we also have the benefit of the portfolios improving, right. Like credits are improving, so that's a really good thing. Then it's simply just acquiring and acquiring with -- acquiring assets where there is no surprises. And one thing that we did in 2020, we had no -- we had one deferral request from the acquisitions that we did in 2020 and that deferral request was ultimately retracted by the tenant. So they're all current on their obligations. And if you keep doing that and you're sort of deliberate about what you do and you finance appropriately, yeah, you can really -- this is a really powerful earnings machine.
And Mike will go into the nuance of the movie theaters, which I've told you that they will come back and we expect them to really help us as we move on through the course of the year. I don't know, Mike, do you want to add on [Speech Overlap].[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
We're not going to share the volumes, but just the dollars is approximately $125 million.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
We were a little bit up in volume in Texas, is what you'll see.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, I think it would be -- I think you'll see it in -- you're seeing some of it in the online lenders who as consumer volume comes back and they've got capacity to lend, meaning that maybe if you think about just what happened during COVID. Once any lender sees an economic shock, the sources of their capital, everybody wants to freeze and then see what happens. And then once they can readjust, then they're going to come back in. So as you see the so-called secondary investors on the lending clubs and the prospers and the traditional banks come back into the consumer businesses, then that will naturally flow forward on a slight lag basis because just like any lender or just like LendingTree, right. We're going to first close the customers who have zero marketing costs, and then we're going to venture further a field. So there's some pent-up demand. These lenders are going to do that first, but as they continue to expand and they have to come looking for us and we just have to make sure that we're their preferred partner in that.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
You're welcome.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, it did quite the answer. I'd say, we haven't gotten quite back even before if you think about, June I think was probably our best month since before the pandemic, as far as bookings goes on the sort of food service side. And again, those levels were still materially off of sort of pre pandemic levels. But it's-the food service side is a real time indicator, and as sort of events shrink, and the number of venues that are open to shrink, it will have an impact on the food service segment. So that being said, our consumer side and some of our waxes and our essential oils are a little bit of a natural hedge for that. And that when people spend more time at home, they tend to spend it purchase more of those. It doesn't quite make up for the whole impact that you're talking about, if we were to go back into a lockdown or something like that again, but it is a little bit of a hedge. Does that make sense?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, good morning. Thanks very much for taking the questions. I was hoping to start on the Advanced Safety business and what the company is seeing around Level 2, Level 2+ and Level 3 -- you're guiding for some really nice growth over market in that segment this year, but if we start thinking out to the 2022, 2023 type of time frame there has been an increased number of announcements of deployment of those sorts of ADAS capabilities. So, if you could talk a little bit more on what Aptiv is seeing out over the intermediate term for Advanced Safety and what opportunities there could be to maybe sustain this kind of nice growth over market that you're seeing in advanced safety?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Unfortunately, Alex. One of the side effects of the pandemic has been the massive backlog in the court system and in Hawaii, more so than most places given how long the island was shut down and those cases that have the most critical nature have been moved up and are getting done; in this case, unfortunately is not falling under that critical area. So, I do expect that this could take a couple of years to resolve.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Remember, the $5 million did include some PIA, right? In the first quarter, we were about 20% or something like that. So there is some PIA built into that. But it will definitely be a benefit to the overall cost per premise. And as Lutz said, we'll just be -- as we go street by street, town by town, we make those decisions in an optimal way for the overall project.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I mean, 25 stores a year. I mean, we are doing this for many, many, many years into the future. There are certainly opportunities to accelerate that if we wanted to. There's also a nice cadence that when you have got 25, you can accelerate it to 31 like we did to maintain the capital spending.
It's really helpful for our modular manufactured building partner and contractors as well to have a steady cadence. And so if we were to step up to a higher level, we would need to adjust the entire supply chain to do that. So we feel good with that cadence, but it's certainly a near-term lever we can flex. Certainly, there are some locations where we would need additional land from Walmart to be able to do that, and that could be an opportunity to accelerate those.
And certainly, we see a benefit when they make improvements to their big supercenters. And I know they see a benefit when they get a shiny new Murphy USA in front of their supercenter, as part of an overall attractive everyday low-price offer to customers. So a number of factors there that could impact that over the long run.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. So starting with G&A overall, it's really difficult from -- to your point, to look at it from a percentage of sales perspective, just given the uncertainty with what's going on. But I think if you look at it on a go-forward basis, we would expect that -- expect it not to exceed 2020. And that's probably the best information we can give you at this point in time.
As far as the rest of the cost of goods sold and impact on the overall business, we talked already a little bit about labor, and that's probably the one area we're still looking to land on what efficiencies will be there for the full year. But I can tell you from a cost of goods and food perspective, we're looking at somewhere between 1% to 1.5% on overall inflation.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, that is the question that we talk about. The answer is we're trying to grow in A&D business where the markets are more favorable and that being in our defense business. So as you mentioned on the call, we are expecting some revenue growth in the back half of the year. It's majority in the defense, space, and its majority driven by some of the wins that we had last year that are starting to ramp in the back half of this year. We are also expecting some slight early signs of recovery in the Behzad market. That being said, we do have several sites in the network that are our critical mass and we're keeping them at that level. So we don't lose capability. Still, the market does recover. But it has been dragging on our ATS segment. But again, despite that our ATS segment seems to is definitely stronger in the margin for perspective largely fueled by the other verticals we mentioned the semicap health tech industrial.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks and congrats on strong results. So the pipeline looks pretty robust. Demand looks pretty strong post pandemic. I don't know if but hopefully we're toward the end of this. And you spoke about potentially accelerating growth. Are you ready to talk a bit about the potential for that actual growth rate in the midterm? Maybe talk about where top line growth could be. What should we expect? And then can you talk a bit about wage inflation? What are we seeing there? And obviously, it's been spiking. How is that impacting the P&L? And then how do we offset that down the road? Thanks.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Great. Thank you for joining us today, everyone. We'll speak to you again next quarter.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah, the first one, let me take it, Randy. No, it doesn't. So we're completing the mergers, the cash in this merger, you know, which is wonderful. It doesn't overleverage our balance sheet.
And that would give us much more opportunity. So it's not either/or.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, it's a little different answer for the sequential quarter-to-quarter in the year. Mark do you want to answer that?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you. And I just want to thank everybody for joining today. Again, solid start to the year, really ahead of our internal expectations and the market recovery in the commercial seems to be well under way. I'm really encouraged by the investments that we made last year that has put us in a terrific position to capture whatever this market opportunity offers up, in the next coming quarters.
So, we're excited about it. And we thank you again for your interest. And we look forward to talking to you next quarter.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Tell your dogs I said hi, and...[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. I think that 57%, I would tell you, is a new high watermark. But I do think that a lot of what drove it is sustainable. And when you think about the impact on the divestiture and improved mix, the divestiture of screw and barrel business, you think about the benefits of the cost structure actions that we took last year and at these increased demand levels, this is the type of leverage you would expect with strong incremental margins. And so, you know, on any given quarter that can fluctuate up or down 100 to 200 basis point based on mix. But I think this is reflective of the profitability of this business at these sales levels.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No. I think -- so we didn't add any new lines, Joe, but we did extend Nordex in Turkey. So we would have had a net add there. But we didn't add anything new to the pipeline, so you're right. It's interesting, Joe, because as -- when we were early on in this process, we were signing 5-year deals. So we have really -- the visibility was a little bit different. As we get -- as these deals get to their maturity and we are extending them, so you're extending them for one year or two years at a time. So by definition, you have a little bit less visibility from a longer-term perspective, but you might have better visibility in that 2- or 3-year window, if you will as to what we're actually going to do, yes. So I would say we still have very good visibility a year or two out. But as you extend contracts versus sign new contracts, it's for a shorter duration. So that's why it kind of -- you would think you might have less visibility, but from an operational standpoint, we actually have as good or better visibility when we're doing kind of 2-year extensions.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
We still, I think, like the usual. To us, I think if you can see, most of our deliveries upon is paid. So most right now, yes, we accept their banking notes and we only accept banking notes, plus I think of the cash, OK, the remittance. So basically we are upon that. So we right now because of the supply and demand, so we may be in each ending quarter months, we will be asking for more remittance cash rather than the banking, I think it dropped. So I think that's what we're doing.
But basically, I think our delivery is upon the cash receipt. I think as you know that, banking notes also is very -- just like cash.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
There is a little pressure on prices. Certainly, on logistics as an example, we've seen some elevated costs around that. which will -- which impacts a portion of our business. Of course, a lot of what we sell is a software as well.
So the direct effect on the overall profitability for the company might be a little less than somebody that's more concentrated on hardware.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I can start and then others can join in. The big opportunity we've seen, I mean people have been apart, they're now coming back together whether that's officer or in their new way of working and there is a lot to get most organizations have to do to get, there is a lot to do, and particularly in building their teams and building their leaders, etc, it's been more difficult for them during this period of time. And so I think the big opportunity is as organizations take on big new opportunities of their own for execution, prices that are trying to build leaders and really get all their teams together, they tend to look for things that where we play where there's collective behavioral changes needed among leaders, building trust in the new environment and new work environment, unconscious bias overcoming that. And all these different ways of working I think is one big opportunity is a category as lots of dimensions. I think that's a big thing. Also you're trying to make a break and operational breakthrough in a new world. We've always done well coming out of a period of disruption in execution and other things and people say, Gosh, I really want to pick something narrow and achieve the big opportunity.
So in opportunity side, I'd say those, Jen or Paul and what else would you add to them.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. Throughout the range of different ways that we could recoup those costs. We do remain confident that we will recoup those costs.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
What I would share with you that we've learned about the Credit Karma base is a big portion of their customers actually use an assisted method. And that is actually what is exciting to us. Now, because they have 110 million members, you can imagine they have a strong cross-section of folks in the US, whether Latinx, Self-Employed, those that are retail investors. So that cross-section is generally consistent with the customers we serve in TurboTax today. What's different is, we've got a good majority of those customers that in the prior year used an assisted method.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Ben, this is Corey. Give you some quantitative feedback, I think, which is pretty interesting and shows the level and the size of the opportunity that's available to us at TC Energy as part of the energy transition. As you know, we had sort of two components to the RFI. One was a wind component and one is a solar plus storage component totaling about one gigawatt of requests.
We had 54 individual projects totaling 16.6 gigawatts a bit submitted for wind, which is about 27 times the request. And on the solar and storage side, we had 66 individual projects totaling about 12.4 gigawatts of bids submitted, which is about 40 times the amount of demand that we went to the market with.
We are currently at a phase where we are down selecting those projects and entering definitive negotiations with the projects that best meet the criteria for our customers, our stakeholders and our shareholders. And we expect in the coming months, we will be able to announce those projects that we have chosen to move forward with.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
So the part of the appeal of TBBK has been our investment in both our technology and product capabilities, but also our compliance in BSA envelope of processes and procedures. So we're attracting a lot of more mature programs that have been with other partners but view those two things as a real benefit to being with them -- with our company. So you know there is a -- it's a good thing, not necessarily a bad thing for a Fintech company to have one or more partners in order to ensure that they have a processing base or a banking relationship that's diversified. However, there tends to be like, many other parts of banking, a lead bank relationship and more and more we're establishing, sometimes we establish it first. But with our partnerships, we tend to even if it's not upfront to become the dominant player within the ecosystem for the partner and we build that relationship over time. And many of our partners, Current has their own strategy and plans. I don't want to speak for them, but that's how we run our business is to be a valuable partner across the spectrum of activities for each one of our partners within the ecosystem and we build that advantage over time.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks, Ed.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, yeah. I appreciate that. We look at the numbers week over week, so we compare them to the prior week. We'll probably will have to get back to with the actual math, but I'm sharing with you sort of a rolled-up average on how we completed in the month of January.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
And Micheal, I would just add on the deepwater on the well project. That pipe and a lot of the engineering thats gone into that and a lot of the specialty fabrication is already in this years capital budget. So a lot of the materials and pipe has already been paid for or is included in this years budget. So theyll pile it on to the next couple of years debt.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
So the product itself at $50 probably not matches exactly that. It's because it is a subsidy where, effectively, we subsidize the clients, and they get reimbursements through an arm of the FCC. We are very well prepared, particularly since we have a large amount in the EBB program, which is targeted very much for remote working and remote schooling to be targeting those SMB clients, which we are heavily weighted toward, and enterprise clients for Lightpath to focus on that. So typically, what we expect to happen is school districts and schools going out there and effectively saying, "We would like to allocate x amount of subscriptions to our students." And that could be up to 100% because a lot of municipalities are still heavily doing remote learning.
And then when they allocate those subscriptions, we go ahead and do those installs and then go and get the subsidy back from the federal government, right? So we are ready to go. The EBB program has not been put into place yet, but we expect it imminently. And as you may know, I think it's $3.2 billion of that, that's available from a first come, first serve. So we're very prepared on that side.
There is also, as you know -- sorry?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. On the capital allocation front, we're first prioritizing organic growth with first looking at capex spend. And we're not -- at least as of right now, we're not anticipating any acquisitions in 2021. So with that, the decisions to pay dividends or share repurchases. Those discussions are held at the Board level. So that's really pretty much all I can really say about that.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Hi, thanks, good morning guys. First question, Dave, I really appreciate your comments earlier about, over time, lumber being no less important component of BFS' story as the value-add piece of the business grows. But for the -- I think for the time being, it's still a relatively important piece of the story. So my first question is on lumber. And just given the strength of demand that we've seen from homebuilders as you're writing fixed-price contracts with the builders, are you noticing the length of time, that you're fixing lumber prices compressing in the fourth quarter and so far in '21?[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Our strategy has always been to be consistent through cycles. So while we were able to grow faster and gain better margins because of credit spreads broadening through the depths of the cycle, we were out in the marketplace deploying capital throughout the financial crisis. That hasn't changed. What's changed here is the trillions of stimulus that's been injected into the economy. So I think if we didn't have that, my belief is that FNBs credit metrics would be superior. We would be out in the marketplace originating, while others would be retrenching or returning capital because of concerns. That didn't happen this cycle because I attribute it to stimuluses, essentially providing an opportunity for companies to work through the issues without relying on a bank to provide additional capital. Essentially, we're providing the capital but it's federally guaranteed for PPP and even in the consumer segment, with these stimulus checks, which are unprecedented. That has changed the game.
So with that, we have to be very careful about what we originate, because eventually, there will be a day of reckoning. So I would say we're optimistic about the areas that we focus on, and we are continuing to deploy capital in those areas just as we have in the most robust times. And I think we will get a benefit because I think given the zero rate environment, borrowers have been more receptive to floors. When you think about their all-in rate, an additional 50 basis points doesn't change much. Or It's not even that as you get a net out to LIBOR -- one month LIBOR rate.
So I think that -- well, our loan originations in the commercial segment, we're still calling aggressively, that will turn at some point here when demand starts to pick up in what we believe the second, third and fourth quarter of this year. Sorry for the long answer, but that's the view.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes. Operating expenses should remain flat in the future quarters, because you're right that we are adding people, but they are in COGS, it's mainly technicians and the operators, engineers to support the fab production. So that in the course that's within the 50% incremental model. opex, R&D, M&A, SG&A, we are keeping them flat.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
No. So the inventory build, John, was an increase primarily coming into our TAS business. So with the operational issues that we faced in Q3, we had drained the inventory levels on both the work in progress and finished goods inventory. So that's, that normalized in Q4 as the operation has stabilized to a more normal level. So yes, it's a build from Q3, but it's at a normal level, historically, at Q4 for where we are now.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thank you.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I think the things that distinguish us are the complete solution that we supply and that's typically a complete engineered solutions. So we do quite well with building materials that are helping make those building safer and stronger and we do that by not only differentiating our products from the standpoint of its performance, its corrosion resistance, but also the availability. So, as we look to growth markets, we want to be sure that we're not looking into commodity areas, but that we are looking to be able to use that engineering, manufacturing, technology, complete solutions approach into these other markets.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I'm sorry. Say that again.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yeah. It's a great question, Andrew. And I think if you look at Q4 of '19, particularly I think on our global business that we -- it was a pretty strong quarter. So the comp is tough in that one. The other one -- and as I mentioned that in our Foodservice business, we believe there is a bit of restocking going on. We'll see how that plays out through Q4 in actuality, but that's one where maybe we're taking maybe conservative perspective on that. Does that makes sense?[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Yes, the fourth quarter did tech us some items that gives the overall level of expenses, but it does kind of present a little bit of a glide path as to what to expect in the quarters within 2021. It's actually a little on the high side, but it's that range of 32 or so million dollars is really consistent with expectations and I think our spend story is largely going to be a function of a little bit of how our core loan growth story manifests itself in 2021. So we're very well positioned to actualize on whatever growth that's out there and as we assess dynamics, ultimately that can have the resulting effect as to how forward we are on that side[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
I would say it's a little bit less pricy, David, but it's still pricing. We have to be very disciplined and very careful and understand what you're buying and you have to start with the premise that it's only in the United States that you have the tax shield provided by the REIT architecture, which everywhere else, you're a taxpayer.[/INST]
Direction (UP or DOWN): DOWN | DOWN |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Thanks.[/INST]
Direction (UP or DOWN): UP | UP |
[INST] <<SYS>>You are a financial analyst, predicting which direction the stock price will go following this answer from the Q/A section of an earnings call. Respond with UP or DOWN<</SYS>>
Well, first of all, let me just say that I really have a lot -- incredible amount of respect for these provincial operations and the management team there. I mean this is a whole new, brand-new industry. And you have to give them so much credit, along with Health Canada, to be able to gear up an industry in really such a short amount of time with a product that is very personal in its usage as a CPG product. So the fact that there's lumpiness and shortage of supply, I mean, no one should comment on what they're doing and how they're doing it.
And I think you have to give them the breadth in a year, two, three to get it going because it's a whole new industry. That said, that is the case, and our team is working with -- directly with the buyers there. In today's world, up in Canada, all of it is over the phone and Zoom, you don't have that interaction. But I think that one of the reasons without going deep into what we feel -- very confident in ramping up, doubling our capacity with Delta 2, we wouldn't be doing that if we didn't feel that the input from the provincial governments wasn't solid, giving us the confidence to go forward.
And so that's why we're gearing up our production anticipation. As I said on the phone, Ontario is going to triple the amount of stores virtually this year. So if you have a SKU that's been going well, our pricing is also tied to the illicit market. And we believe that's a winning formula and actually, I think it's proven out to be so.[/INST]
Direction (UP or DOWN): DOWN | DOWN |