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44eeb4f1f4eaab9d0e9adcc464e42df2 | Right. Understood. And you referenced to another capex related question about the upcoming IRPs. How contingent are these incremental projects on these IRPs that could take nine to 12 months to be acknowledged "approved" by regulators? Or this incremental projects seem relatively manageable. Is that -- could that just ... | Yes. Great question, Brian. What I would say, it's a combination of all the above. Certainly, some of the -- some of what the IRP is going to point out, there will be some near-term opportunity associated with that, but some of it's going to be beyond this five year plan. So a lot of this $50 million to $100 million a ... | direct | [
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2ca0c63d66968daace5ea6a1038737dd | I wanted to touch base on the bigger picture first. You guys have a $300 million EBITDA target. Can you talk about that and where that kind of stands for 2021 and how everything plays out in that? | Sure. And thanks for asking that question, Ken. We're currently working on our long-term strategy and our budgets for '21, and we'll be sharing in more detail at our Investor Day about that outlook in December. We have had in place long-term goal of $300 million EBITDA for '21 and we're encouraged by the improvement we... | intermediate | [
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dbe89ff011e3407934fe6853e45929e7 | Okay. And then on top of that, when you think about the crop being restored in the Eastern Corn Belt. How do you frame how that would actually impact The Andersons'. It seems like you -- you're talking about crops could be 20%, 25% bigger than year ago levels, demand seems strong, can you talk about what that actually ... | Yes, sure, Ken. A year ago, I mean, really a wet planting season which hurt our PN business and then going into the grain harvest it was really low volumes in the East. A lot of those crops tribute only to our Eastern assets. It was tough that '19 harvest. Coming into the current harvest here, we're just wrapping up ma... | intermediate | [
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fcd142095422a90d8dc322847b43f38d | And then my last question on cost savings. I think you mentioned that $25 million in '19 to '21. What would it be just incremental from '20 to '21? I'm assuming there is still -- that does contribute to you $300 million of EBITDA. | Yes, Ken, this is Brian. I think that's fair. I'd put it into kind of three buckets. At the beginning of the year, we talked about an incremental $10 million coming from a combination of synergies and productivity improvements. And then when we were talking COVID and some of the actions we are taking on cost containmen... | direct | [
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d3515179e9937daf4efda8d9ce835cea | I want to ask with respect to the commentary around the carry. We can see what's going on across corn, soybeans wheat carries. Historically, I know you -- when you've had outsized carry opportunities and wheat that has given you an opportunity to capture outsized storage income. When you think across those three primar... | Yes, I'm glad you brought the comment of carries, and the reason we pointed out was just because of the big change in 90 days. So, I mean 90 days ago, the markets have had a remarkable rally. So we're up $1 in corn to $4 and $1 in wheat to $6 and $2 in beans to $10.50, $10.75, so we've had a really big bull run here, o... | direct | [
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7e76458df48c24f59b976d56e61618b3 | Switching to the Ethanol business. Industry SMB is much improved. You guys have always run best-in-class assets. I'm curious, in addition to that kind of F&D on the traditional Ethanol product, co-Ethanol product improving. A number of producers have had a shot in the arm on USP grade alcohol, I don't know -- I just do... | Yes, I think you pointed out some good comments Ben. The Ethanol margins when it comes to crush with the corn market rally and soybean and soybean meal rally, DDGs have really improved as well. Also corn oil outlook, especially in the long-term is attractive with renewable biodiesel demand for corn oil. So the co-produ... | direct | [
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9c115c10362d329f6244741f9f3f5a75 | I want to just focus a few minutes on Rail. I mean that was -- I think a breakeven quarter. I think that was probably one of your poor performance if I think in that Rail division in some time. So I think, Brian you mentioned that there is going to be, I think a one-time interest charge adjusted in four -- in Q4, but y... | Yes, I think -- as we think about 2021, I think you're right thinking about it on a flattish on kind of an EBITDA basis, makes sense. I think if we think about our Rail business on the whole for the kind of the full year of this year, I would think of it in the context of a few million dollars positive, but before that... | intermediate | [
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48290074dcc1e750428606712987b41f | So when you kind of look at just the very near term. Right now, you said in Eastern Corn Belt, you've got about 20% of the harvest I think left in corn. We are having fantastic weather right now, it's just unusual. Of course, it was a pretty poor October though too, but with -- what could come to the market in a pretty... | I think they leaned it our pretty well Eric. I mean we in buying beans aggressively also harvest farmers liking the high level of flat price and beans over $10. So, and we've been putting through those beans just as fast with robust demand for export. So it's been a really good season for bean elevations. Corn, the far... | intermediate | [
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2707a0b946b3c88db19a94011769eba5 | So we talk about the sustainability of this particular Ag recovery. As you know, we've had several sort of false starts over the past several years, right? But this time around does seem a lot different, and I'm just curious how you are looking at sustainability. What could be the driving factors that have changed that... | Yes, and I think the best part about an Ag recovery is being demand led, right. So China coming in for just record uptick this year is super encouraging to everyone. To the exporters of the Gulf, the PNW, Texas cost even stuff we're doing out of Lakes, I mean the whole export program impacts everybody. So that's a real... | direct | [
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8fd88468700058b30a4765a95bea2e24 | And then you mentioned, it looks like we're going to have new sources of demand for oil. You mentioned it in your corn oil comments. We have pretty significant capacity increases coming in renewable diesel and that could be more than a one-year benefit to the Ag industry. Is that -- would that be part of your sustainab... | Yes. Yes, renewable diesel is another lift to the veg oil complex here in the US. That's a good thing for our corn oil production business, but also we trade those feedstock. So it's an opportunity that I think is going to be good for the Ag sector in general. | direct | [
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1f0c5395403a6a9edf9654eab188db73 | Really just have one question here within the Ethanol segment and the ELEMENT plant specifically. Can you just kind of give us an update here really where, where this facility stands in terms of ramping toward full production both either from utilization rate from integration of new technology perspective and kind of u... | Good question, Ben. So we'd hope pre-COVID that we were going to be a much better position than we were now, given the impact of the Ethanol plant shutdowns that happened earlier this year, right, when we are in the middle of kind of a ramp up and start of -- start-up of the ELEMENT facility, kind of delayed our prospe... | direct | [
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451486bd6416f766b3bad7c16f38ae5e | And sorry, can I ask you a clarifying question on this, the kind of the timeline here that the 90 day track record is -- has that 90-day process started yet or is that -- does that still waiting as you bring that facility back after the maintenance? | I think because I know we haven't done that, we're bringing up the new orders back online and then we'll plan to make the 90-day run submitted to CARB, we are going to get approved and we are talking about like Brian said mid-year or summer of '21 for having full approval and shipments to California, gaining the Califo... | intermediate | [
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5ebf775b64eed464e7325e90f80d6f97 | Wanted to ask about loan growth. You mentioned commercial construction pipeline with, I think you said $1.9 billion yet to be funded, so it sounds like that's a pretty nice tailwind or potential bridge to return to stronger loan growth. Is that the right way to think about that or there are some other offsets that we s... | Yeah. Thanks, Michael. So yes, certainly commercial real estate as you've seen throughout the year will continue to provide loan growth based upon the backlog we have and there is some amount of new business being done in that area as well. Our specialty areas, our utilities, the mortgage warehouse business continue to... | direct | [
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201fa229f627cebe1451dfeb326983e6 | Okay. And just maybe on a core basis, as we're thinking about the margin for next year, is really kind of loan growth, the main driving factor to upside from kind of what you've already talked about in terms of just the funding costs coming down. | So we expect our liabilities to continue to grind lower. We took the actions on the FHLB prepayment, which is a significant improvement to NII next year. We are getting these traction on imposing floors on our LIBOR-based loans, which is the bulk of our loans. We'll continue to work on that. So the combination of grind... | intermediate | [
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737af0d49093089a83bdee7abdceeda0 | Okay. And if I could just sneak in one last one, just on the commercial deferrals. I understand, obviously, both come down a good bit, but I guess are there some that have been modified, is there a large portion that's maybe paying interest only or some other modification that's been made that's maybe not captured in t... | Yeah. So we're down to 1.4% of the total commercial and commercial book that have requested some additional deferral. Pat, do you have a little more color on that for Michael?
Yeah. I would say, in the commercial book, it's really case-by-case, how we're looking at those. There is definitely a mix, where we've got cli... | intermediate | [
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aa26c13b8995bd7c6ad00da14cdde46c | Is there an amount that's just been modified, I mean would it be -- would it closely match kind of an initial $800 million or is it more like $600 million, I don't know if there's any way to kind of ballpark that? | Well, the modified loans, Pat, correct me if I'm wrong, are included in the $227 million that you see, Michael.
The bulk of both have rolled off and don't need any further assistance or modification. | intermediate | [
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4a3d8eab6a814103aa46b1844eb7adf9 | First one, hopefully, it's a pretty basic one, I'm just -- given all the moving parts, I just want to make sure I understand sort of what you guys think the run rate cost base is in the third quarter. So I'm just trying to square, I was on Slide 14 with the commentary in the tax. So if we just take the $109 million and... | That $10 million is embedded in that $109 million, so you can take it out of there too, Scott. | direct | [
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63abb2730d1df74fe1879e5f3ad1763b | Yeah. Okay, perfect. So then, we're talking about a core number of somewhere like $167 million range, is that a fair -- fair approximation. | For that quarter, yes. | direct | [
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37a6c075150a48528d63f0c6eb1d13ef | Yeah. And then, more -- more just a top-level one on how the credit cycle kind of plays out. It seems like every 90 days, we start to push out the time till we see more accelerated loss migration, I guess with the benefit of at least a bit more clarity vis-a-vis, say 90 days ago, Phil, maybe how are you thinking about ... | It's always hard to tell, you can see that our reserve build is moderating to being pretty flattish at this point. I think so much depends on, is there more stimulus, what's the economy look like as we get into next year. But there is a -- from here, there is probably putting aside, oil and gas, but from here, you're p... | direct | [
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c6346dfb8448febd663618355d575664 | On your capital slide, you typically prioritized your usage for excess capital, I didn't see it this quarter. I was wondering if you could kind of run through how you're thinking about excess capital, specifically the buyback, just given where the share price is relative to tangible book value? | Sure. So that -- leaving out the chart caused a question. We haven't changed our level of priorities, but it is more than fair to say when we're trading at a discount to book, which frankly, we don't understand why we are given all of our actions and given our outlook, but when we're trading at that type of level, shar... | intermediate | [
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e6af39b90f96a87b70950518ac00406f | Thanks. And then just as a follow-up to $1 billion plus of retail and shopping centers, how much of that is just what I'll call typical -- your typical mall, which may have been struggling pre-COVID and we just haven't seen charge-offs at all, just for the whole bank. What are your thoughts there in terms of when the d... | Sure. Pat, do you want to give some color on the mall-based.
Sure. In general, the stuff that we're seeing that continues to struggle is all going to be in closed mall kind of space, where you just with the social distancing etc., people are struggling to get into. Our -- majority of our retailers are in that, what I'... | intermediate | [
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67249e85dd6f11de96b35163ff3296ad | Hey. Can you talk a little bit about the timing of the expense reductions for the branch optimization project, we should roll that in. | Sure. So deconsolidations internal will be done this quarter the sales in Peoria and of two branches in Southwest Wisconsin will complete this quarter -- we expect them to complete this quarter. And the remaining one branch, we're selling to a third party that will close sometime in the first quarter. So you should exp... | direct | [
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d20d9766bd502ec19d4810f06d734338 | Okay. And so the message is similar to your commentary on net interest income with the $5 million, you're saying that it could be as simple as just putting an extra $10 million -- taking $10 million out of expenses for Q1, is that fair? | Well, Chris, what's the -- I think we have all the charges through in the fourth quarter, right?
Correct. Yes. So, you said 2021 should be a clean from January 1. So, Jon, I think you're thinking about it the right way. | intermediate | [
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62e0d4b6476680b907500fadaa6da103 | Okay. Okay. Good. Thank you for that. Any comments on the service charge rebound, the magnitude of what you expect or is that just, I know there's a bit of a bounce back, but any commentary there? | Yeah. So we expect to see continued growth there. As you know, at the start of the pandemic, we gave quite a bit of relief to customers that is now completely rolled off as we get into Q4, and rightly or wrongly economic activity has picked up, particularly in the Wisconsin footprint and so we're seeing more activity t... | intermediate | [
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6635fb801748ff192daff0ca71f5f6f3 | Okay. And then one more, maybe not an easy question, but you've had some really good deposit growth last few quarters and do you all think about how much of this might be permanent versus temporary if things return to normal? | Yeah. So, Jon, I think if you'd asked a couple of quarters ago, certainly we would've said, we saw it all surge, as we sit here moving into October and the balances of state through the entire third quarter, they're staying as we just said, as we move into the fourth quarter, we're starting to feel new balances are a l... | direct | [
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5b34f81518ebb5dffe7937b9086c243a | Hi. This is actually Kelly Motta in for Chris. Thanks for taking my question. I guess you've talked a lot about what you've done on the funding side with prepaying that of each healthy borrowings and you're still repricing to these lower. Just wondering if you could give us color on reinvestment yields of securities an... | Yeah. Chris, you want to handle that?
Sure. So on the reinvestment Securities, I think one thing to keep in mind is we're not aggressively growing the balances. And so what you're seeing is essentially a relatively stable level to what you'll see reported for the third quarter averages, and not a lot of net movement b... | intermediate | [
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fd0f7b514134d91f888cac7ba33194bf | Great. Thank you. And then last question for me. On tax rate with, potentially tax rates going up again and from Washington, is there any differences on how we should think about it or is kind of looking at it. What happened in 2018, so kind of a valid proxy. Thank you. | Well, your guess on what happens is as good as ours, but our best guess right now is that we've got tax rates in that 15% to 17%-ish range, but that can all change. | direct | [
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45f1e0804bf5f0c66dfc38bab3e28fdd | I guess my first one is, we know that you are moving from four, I believe, to eight codes, but this is I think the first time that you really highlighted that two different code sets. So, I guess, could you clarify like what the difference is between these two code sets, and under which circumstance, you would use one ... | Hey, Allen, it's Kevin. The only thing that's been published 9right now is that the separation of the code sets is along the lines of duration of where we've not been allowed to talk about the amount of wear times. Compared to what we have today, a single code spans three days to 21 days. And within that code set, ther... | intermediate | [
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d49673110cd4ea91fecdb58231e16529 | Got it. And then kind of like, I guess, a broader question. Hopefully, you can talk around it a bit. But regardless of what the decision is in terms of like the value of these codes. Can you walk us through kind of the rollout once we do hit January 2021, like how much time will it take for whatever price change is imp... | Sure. So, this code set change affects our payment with CMS, which is about 26% or 27% of -- 27% of our revenue. That code change would go into effect in January of 2021, unless it were delayed for some reason, or if it were appealed. Our expectation is that it would go into effect at that time frame. And so, whatever ... | intermediate | [
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4bfe73dd7bf471471f1eddb14f379e81 | I was wondering if you could talk about the underlying momentum in the business. If you look at guidance into the fourth quarter, it maybe implies a little bit weaker quarter-over-quarter growth into the fourth? And in light of the full AT launch, I was wondering if you could talk about how we should think about the in... | Sure. OK. I would start off by saying, from a momentum standpoint, I don't think we could be in a better-off position right now. We have a large number of positive growth drivers. I think everyone understands and accepts that we're really well-positioned competitively and got a very, very long runway ahead of us here. ... | intermediate | [
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62699fc541392b8fdd9ba123840a517a | As you think about the recent capital raise, how should we think about incremental investment in the commercial infrastructure, any potential adds into the fourth quarter or earlier in 2020 next year? | No, I don't think so. I think everything is -- with maybe one small caveat. I think everything is exactly the same. As we've talked about on the raise, we've -- as we just highlighted, we've already spent about $5.5 million on Verily development. Obviously, a significant portion of that was the initial milestone paymen... | direct | [
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5c16e022ada7aa90d61d5c8202c3e018 | Could you talk about sequentially your success as penetrating that particular account base, and how AT may help you in fourth quarter in 2020, not only vis-a-vis in the sale of AT but the XT pull-through? I think you alluded to it to some extent. But is that -- well, I guess, a follow-up to that question is, is that on... | I think -- yes, Jason, I think what you're going for is from our strategy of these large systems, what does that sizing, compared to the overall market. And I -- we've not done a deep dive into that number since last quarter. But based upon guidance in new-store, same-store sales, the answer is exactly the same, and th... | intermediate | [
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9be8dab4e74d308b1a7d36a02d20a61e | In the past, you've talked about not yet seeing the peak level of your productivity level. You've added more reps this year than you originally thought, perhaps, that so some of the productivity gains. I'm just curious if you, at this point, have been able to identify a peak productivity level per your increasing sales... | Yeah, Jason, I mean, good question. We weren't trying to hide that. Obviously, with a quarter that didn't -- doesn't see as much growth because of the summer, right? There was not a huge change to those numbers, and thus, we weren't calling out a higher productivity level at this time. I think the last one we've called... | direct | [
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4e08e42dca51f5bc2b85fa4cc3d86b2c | Jeremy, maybe I want to start with the broker-dealer. Just wondering if you could maybe offer a little bit more color on your outlook there. I know it's a tougher quarter. I think you've made comments in the past that you thought performance in 2021 might look a little bit more like 2019. Just kind of curious if that s... | Sure. I mean, I think we saw a very volatile quarter as we discussed in Q2, particularly in the businesses that were really outperforming in fixed income and structured finance that are the higher margin businesses as well. And we see those being rectified and improving from where they are today, but clearly not at the... | intermediate | [
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517e7a99ab97427710c7638042aaab3a | And then, just maybe moving to balance sheet, obviously cash continues to build, you'll continue to get more back with the PPP program and in last quarter you commented you know you didn't really expect to build the bond portfolio in a big way and you really didn't. Just curious if that kind of still holds or kind of w... | Hey Brad, it's Will. Couple of things to note. I do think the bond portfolio grows higher through -- probably higher into the $2.4 billion to $2.5 billion level and end of the period at $2.1 billion. As we continue to kind of work to address, as you know, they are higher cash levels, higher liquidity levels, we're also... | direct | [
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79c531cdc119eb8b0428bca1af45c52a | Great. And then just a final for me. I know you kind of addressed it there, William. But I guess your provision guide would imply that you guys would be actually taking a provision in the back half of the year. Can you just kind of talk a little bit about that? You've got a pretty large reserve. Obviously, you're not e... | Yeah. I think as we look at it and if look in the appendix, you'll see the COVID-modified loan portfolio. So we got about $76 million of deferred loans. We're actively monitoring the portfolio. I think we've consistently said, we expect charge-offs to be a little higher than second half year of the year than they are i... | direct | [
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e8550652321f638c7ead50272209ffea | Just wanted to start off, following up on Brad's question. So if I look at the ALLL, ex-PPP, it looks like you're at 112 [Phonetic] if I'm doing my math right, so that would imply a little bit of build here. Just given the outlook for credit, which is still pretty positive, I understand the comments around the COVID ex... | Yeah I think with the -- we got to put the traditional kind of caveat around that of the economic outlook to be volatile and that can move the number one way or the other, material in any given period. As it relates to kind of the other key drivers, whether it'd be credit migration, again we continue to see positive cr... | intermediate | [
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2defdf9d8262aa795f598484271b81e7 | Okay, that's helpful, Will. And then maybe as a follow-up, just on the mortgage business. I think we're all cognizant that you guys had a great run here and things are normalizing again. So spreads are normalizing, volumes are normalizing, although we did get another upward revision from the NBA the other day, which sh... | Yeah, that's a good point, Michael. And I think even though it is normalizing, it is still strong from historical pre-2020 perspective. And to your point, what we really are -- the main focus we're doing is trying to recruit profitable LOs. And today we have hired -- we've increased our LO count by 72. And in the quart... | direct | [
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fa82b6bf72cfb33faa3c55dfb52b741f | Okay. So what's the base of that off of in terms of lenders? And obviously it dovetails into the higher origination targets you've laid out for the year, moving it from $17 billion to $20 billion to $20 billion to $23 billion, which is a nice move, but just trying to get a sense for what the net add is and what it mean... | Sure. Where our LO headcount is right now, it is about 1,300. | fully_evasive | [
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136bbdba392ef3cb7c4ce1d8a8750648 | Okay, helpful. And maybe just one final one for me. You guys doubled the share buyback authorization to $150 million. I guess, the assumption would be that you would probably use most, if not all of it. And then, just given the capital levels are still elevated, is there the -- I guess, the willingness and desire to co... | Yeah, I mean, I think that really we've been trying to -- we bought $15 million year-to-date and so we had $25 million of the first authorization. And so, we didn't -- we authorized another $75 million because we didn't want to run into any pressure with that. So I think we'll take things one at a time and I think we'l... | intermediate | [
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e50f9c0f55fe010dd8f07ba63d37b6d6 | Want to go back to Michael's question around prime and the new hires that were disclosed. Is this a newer initiative for prime hiring new lenders or is this just the same hiring strategy, just finding more success recently? I'm trying to appreciate if we should assume additional hires in the future and we could see add... | Sure. I think, it's part of the business, period. However, with COVID and just overwhelming volume in 2020, there is just really not a lot of movement there. So you're always going to have churn, you're always going to have higher determinations. I would say, there is a renewed focus on hiring talented, purchase orient... | intermediate | [
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2c4b56ff2cd23cdd34e245f087f9e792 | And the second part to that Jeremy, given the new hires, should we anticipate some market share takeaways in the mortgage business? | Yeah. I mean, as we said in our comments, I think given the models and the team that we have, I do think that as refinancing wanes, we will be market share taker and that's our goal. | direct | [
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f5d98e550f719e8138e2266812389a59 | Okay. And then, sticking with prime on the expense side, you guys already disclosed some of the good data around the variable comps for that business. But as industry volumes slowed down, are there any more fixed cost you consider point down if you think mortgage volumes could be slower for a while? | We're going to obviously really pay attention to that, but in this market where you've got like, in some cases, 10 buyers for a property, we're still having to do the work like we are originating like last year. So we still had to maintain staff and we want to make sure that we're able to really deliver with exceptiona... | intermediate | [
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822230b29fdcefa60c5c56c049abdc11 | Okay. And then lastly from me on the loan growth outlook. I definitely appreciate the commentary about the increased level of single family retention. But you also dropped commentary around commercial loan growth rebounding in the back half of the year that I think you previously mentioned back in April. Any more color... | Well, I think -- well, maybe we're still at zero to 3% kind of full year average, which has been our position on kind of full year average loan growth. So I don't know that -- I don't know that we've changed our loan outlook. I do think commercial loans what we're seeing is -- for funded loans in particular is hyper-co... | intermediate | [
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3e5544dd3b85f1d5cf6bcbe4d2135ce5 | Wanted to see if I could just get sort of more of a real-time update. Maybe quarter-to-date, we've obviously seen a material drop in interest rates over the last couple of weeks compared to the prior four months and then also the removal of kind of the 50 basis point additional charge for refinance. So, have you guys s... | Yeah. I don't think we've seen anything that would cause us to change our guidance. We took the origination volume up in the range of basically $3 billion to reflect both first half performance, but also what we're seeing on a real-time basis. The fee reduction I think in principle we're seeing can pass through to the ... | direct | [
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ac9b70807b7ff2242fc1e6d134e8a029 | Okay, thanks. And maybe in addition to LO hiring, could you talk about any other strategic initiatives that you guys might pursue? I know in the past you guys have gotten a little more involved in kind of the construction or renovation market. Obviously there might be a HELOC opportunity at the core bank as market valu... | I wouldn't look for anything like product differentiation. We have our joint venture business that's in the homebuilding business. It is really strong. So we'll continue to try to grow that. However, our JV business at PrimeLending has just three affiliated partners and it represents about 8% to 10% of our overall volu... | intermediate | [
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896fc1cf35e1692bf5e85f8485e695c1 | Okay, great. And one last one if I could sneak it in, just on sort of fair value marks or adjustments that may have flown through kind of the income statement this quarter that we shouldn't necessarily forecast going forward. I know that's typically a bigger mover in the TBA business, so just any color there would be h... | Yeah, not a lot of fair value marks as it relates to pipeline mortgages [Phonetic] we've historically had in period. I think we did note in our press release, we had about $6.5 million of fair value marks related to certain HOP investments where transactions were exceeded in the period. So that was episodic, if you wil... | direct | [
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c4141b726f47d9f100e6ffae4fdae256 | Most of my questions have been answered, but I had a couple of quick follow-up. So another nice quarter on the deposit cost front. It looks like you have around $300 million of brokered deposits remaining. I was just curious when these broker deposits are set to mature and what yield do they carry? | Well, the blended is right around 30 basis points and they are going to mature between now and over the next 12 to 18 months. So there is a long window in terms of the maturity. So they kind of move, I'd say, there will be a block of CDs that continue to kind of roll off here over the next 90 days and then the more kin... | direct | [
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58d6a48a7f4c6c2f13fea4fe584972d7 | Okay, got it. And then last from me. You noted that you executed another MSR sale of $32 million, was there any material gain that came out of that sale? | We did execute the sale. We also executed a few LOIs, which will be noted as well. We did see kind of favorable pricing there relative to the mark to the tune of about $9 million. | direct | [
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c9ab2975b6415520953237191288c52b | First off, just wanted to ask for a little bit more color on what's driving the deposit inflows that you guys are seeing in your jurisdictions? And then, I think you touched on looking at some opportunities to move some of those deposits to off-balance sheet items. Maybe you can elaborate a little bit more on what that... | Sure. And you're right, Alex, we've seen a significant amount of deposit inflows over the last couple of quarters really starting in Q4. So the balance sheet's really kind of ballooned with some of the surge deposits. About 50% of the deposits are retail between Bermuda and Cayman, and it's driven by some of the fiscal... | intermediate | [
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2ccded31ba30f2992c3d59931c3fbc43 | Okay. So as you kind of look out over the second half of the year, I mean, do you have a way of sort of modeling deposits? And really what I'm getting at is that, if deposits keep growing, that TCE ratio, it's going to be hard to get that above 6%, which is going to, I would think, limit your desire, your appetite to d... | Yes. I mean I think we've said, we expect those deposits to be temporary in nature, but I think how long is temporary is the question really that we're facing at the moment. Certainly, in Q4, we were expecting the transactional flows to kind of not necessarily repeat in Q1, but actually, we had stronger flows coming in... | intermediate | [
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376e68b490ccd60a0a5b49350de4155c | Got it. And then can you -- just on the expenses this quarter, there's a couple of items that seem like maybe they are non-core or non-repeatable, including paying out the vacation days that you alluded to in the press release. Can you break out the exact amount that's associated with that? | Yes. I mean there were probably -- there was just a bunch of -- or a combination of some smaller individual items. We, I think, called out in non-core severance cost in our Mauritius office as we transferred the remaining banking operations functions to Guernsey and Halifax, and so that was the $1.4 million of non-core... | direct | [
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1d5575ed4f76bfd2ba3dd7bf434450e6 | Right. And then as we look forward into 2022, if I remember correctly, your range is a little bit below that on the last quarter. Is that $82 million to $83 million, is that kind of the right level to be using kind of permanently going forward? Or are there some other projects like the moving in the Mauritius office, I... | Yeah, yeah, there are. So as we've talked about maybe a year or two ago, we're coming up to the end of the amortization period for the core IT infrastructure, the One Butterfield system, and that's starting to abate in Q4 this year. So as we look forward into 2022, that should push the run rate down a little bit. Howev... | direct | [
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fd1dcdef0f649546da39f64f1f850356 | Maybe just following up on the last commentary, what's the total number of folks in Halifax now? | So it's roughly 150. | direct | [
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13a514c91e1f5aaaa79b779aba259f75 | 150, OK. And then I think last -- we spoke, I think the kind of capacity at Halifax was around 200. Is that, a., still the right way to think about it? And b., how aggressive or how fast are you looking to kind of fill in that Halifax capacity? | So Todd, [Phonetic] I wouldn't say there's a real upper limit on the capacity. I mean there's plenty of office space. We've got excess office space. I think our feeling is to grow it gradually because as we put -- if you put account opening in Halifax from Bermuda and Cayman, we want to make sure that's working before ... | direct | [
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cb02c4df1c2180351ee77e11b3d02250 | Okay, thanks. And then maybe going back to the deposit conversation. I think you guys have been, rightfully so, fairly conservative in modeling deposit assumptions and how fast you're willing to put those to work, and especially recently, it seems like the deposit flows have been very strong. I know the reinvestment en... | Yeah, I mean, we're a bit more aggressive this quarter as we put a little bit more than the advertised 150 to work. And obviously, given where rates are today, it seems like that was a good decision. We are sitting on a lot of cash. I do think some of it is -- a lot of it is temporary. If you think about the underlying... | direct | [
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d92704e4e786da81637c4447cd69a031 | Okay, thank you. And then just last for me, maybe for Michael Collins. Looking at the proposed international tax rule change, are there any preliminary thoughts on what that can be to some of your jurisdictions? Is it still kind of too early to see what some of the lasting impacts of that would be? And then you made it... | Sure. So all of our jurisdictions are actually doing the agreement, so we're trying to be as helpful as possible. Pillar 1, I guess, is really targeted at tech companies which we don't have, generally offshore. So that's not going to affect us. Pillar 2, in terms of the 15% minimum tax may have some impact, but we stil... | intermediate | [
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b0f2dc6bc52078ef5116fd630781580e | It's a question on compensation. Understanding that there'll be the typical seasonal payroll increased in the quarter, this quarter it looked like it was a little late just due to share-based comp, incentive comp and insurance expenses coming in from the third quarter. How much of that is a lower level to the run-rate ... | I would say that, yes in the fourth quarter we do our true-up so to speak on all our reserves and accruals. So I would not say the whole difference is run rate differential, probably about half of that. | intermediate | [
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f05cbc48f95cad63401b0dcba9510408 | And then looking specifically to the occupancy and equipment line items, in combination those two have trended up over the past year, and I'm just wondering how much of that is related to ongoing investments you have just as you continue to develop your digital strategy and new products versus how much maybe just norma... | So Jackie, this is Peter I'll answer that. It's a combination of both. The -- I think the increases that you've been seeing over the past couple of years have on the front-end of that period been predominantly what I would call infrastructure types of expenditures to get our security and our net worth postures where we... | intermediate | [
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49485bbec2b2454c23346dbc566a21bd | I wondered if some of you can clarify the tax treatment on the lease buyout that took place in the quarter. I know the original 8-K had indicated a $1.8 million tax benefit associated with that and I just wanted to see if that's the complete tax benefit with the $3.8 million or if there was some offset to that as well? | That would be the benefit. | direct | [
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543b10473c0e498c2f82d80982d809a0 | Okay. So if I look at the gain from the quarter, it would be $3.8 million plus the $1.8 million and then there is no offsetting tax on the gain? | Right. But while that would be our normal income tax rate on the $3.8 million, the $1.8 million was not a net number, it was a release of some reserves associated with it. | direct | [
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72b16b3f04911c55c70f162c3c3dac74 | I was just wondering if you could drill into the margin guidance that you gave, Dean, in terms of, it sounds like, you implied that margin should begin to expand from the 2.95% in the fourth quarter. Just, I mean -- I guess is we don't see a big change in the rate environment, like how much expansion do you think the m... | Yes, OK. So I have to caveat my guidance because of the last several days, the rates had dropped quite a bit. But we -- the guidance had assumed that we are stable on rates going forward and there is a balance sheet growth. So that's going to give us the margin as well as net interest income expansion. In terms of kind... | intermediate | [
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dfc1414532f3e4e980bc7c90aac3856e | Got it. And just in terms of on deposits, very strong year, I guess 5% year-over-year growth on period-end. Do you expect this level of strength when you think about deposit growth in 2020? | Well, we don't really see a reason why we are not to see results similar to that, I would tell you Ebrahim that 5% probably certainly is at the upper-end of what my anticipation would have been. But I think another 3%, 4%, 5% deposit growth year for us in 2020 is certainly within the realm of possibility subject to wha... | direct | [
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f310337302f65afab99b245fb19e4ede | Got it. And is there anything of the fourth quarter growth, where you see seasonally some outflows in the first quarter or not? | The deposits have held in pretty remarkably well here in the quarter, current, you're right, usually fourth quarter is a bit of a temporary spot as at year-end and probably less so that phenomenon this year then. | intermediate | [
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3c087c63b13528e3fdc9427a2bdb0aed | Got it. And just moving in terms of capital TCE at 6.95%, just talk to us Peter, Dean, in terms of how you think about capital levels like binding constraint where you're managing capital and how we think about buybacks going forward? | Yes, I mean, from my comments, we are continuing with our capital management program. So we are going to plan on paying out about 50% in dividends. Of course, as we grow the business, we're going to retain some of that capital. And then what's remaining will be for share repurchases, subject to certain minimums on our ... | direct | [
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b351064ceddc741b503ba608a1a8994e | Maybe to begin, if you could just give kind of an update on where the pipeline stands today and what your expectations are for loan growth heading into 2020? | Yes. So a great outcome I thought in 2019 given all sorts of of challenges out there, but we had good balanced growth in '19, both on the consumer front, as well as on the commercial front. It appears that construction lending is becoming constructive again versus a bit dilutive in prior periods. Would anticipate to co... | intermediate | [
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de9b175f399127e3d477a94566f2f705 | And then, Dean, going back to the margin and some of the dynamics there, I'm just curious as you're looking at where your current yields are coming on and where deposit pricing stands, any sense in terms of the timing of the expected inflection? I mean, can we maybe see the margin start trending higher right away here ... | Yeah, I would say it would take maybe a quarter or two to see the increase here. So we may be flat to maybe even. We could be slightly up in the first quarter, but second through fourth quarter, we'll see a more meaningful pickup. | direct | [
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446cc5f7d762339331ea1a2e8a8be651 | Okay. And then, Peter, from your comments it sounded like you guys are still not expecting any adjustment to the allowance based on seasonal adoption? | Let me have Mary answer that.
I think as Peter indicated, we're in the process of finalizing all our assumptions and inputs for the day one impact, but it continues to be very modest.
Likely a modest benefit. | intermediate | [
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706c2ffdb7e9b6094759cbe1eb33f876 | Hey. I just wanted to ask -- you mentioned a couple of metrics on tourism and if 2020 were to see an inflection of some of those spends in places [Phonetic] visited from international tourism, what kind of fluctuations might you expect to see in your business? | Well, I think that, what we saw on the visitor side and in particular on the international side was a moderation in a couple of markets. So the domestic market, which is call it, two-thirds of our visitor base, performed exceptionally well, kind of mid-single-digit spend as well as arrivals. International not as strong... | intermediate | [
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65e9fc66f62d782b9b54d87310d252a3 | Okay, thank you. And then I just had one quick question on the expense side, specifically related to professional fees, although one of the smaller line items there, a meaningful increase in this quarter. I was just curious if there was one-time project related activity there or what we can kind of look at the base goi... | Yeah, there is a number of items there. And I guess I would break it down into three kind of categories. One is the normal fourth quarter bump in professional fees related to audits and kind of the year-end activity. The second thing are projects. We do have a number of projects going on that involve consultants. And t... | direct | [
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4a2480f2f18a698e2d437df2d206fb87 | Yeah, hi. Thanks, good morning. Just wanted to stay on Levi's question on expenses here. So, do you maybe, if you could help us think about your expense guide of 2% to 3%, what adjusted figure were you using for full-year '19? | So that would be off the reported number. | fully_evasive | [
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be1353b6a09c9a67e28785cf7a6ffcd4 | Okay. So I mean if you had, I mean round numbers, you had $6 million, $7 million within that figure that was somewhat non-recurring. So that's a larger jump. Are you thinking in terms of, I mean you mentioned the four new branches, are there more tech and IT expenditures coming or can you talk a little bit about the ju... | Yeah, I'll jump in here Laurie. There is likely a little bump-up in depreciation. We already talked about data services coming up a little bit and those -- that certainly is as a result of the initiatives, both on the facilities front as well as on the technology front that we're pushing forward and excited about. But,... | direct | [
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13e7fad339aed4510354fd7fb14f15a2 | Okay, thanks. And then the new branches coming on, do you have roughly the timing of when those four branches come on and on average what the expense per branch is associated and how you're thinking about the break-even on those? | Yeah. So they will roll on -- the first one is coming on this quarter. Although I just drove by it yesterday and I can't believe is coming on this quarter. And then the rest of them will kind of flow out throughout the year. We're anticipating depreciation to clip up a couple of million dollars in part because of that,... | intermediate | [
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e648249af51fb9c371b2a5abc1fcc436 | Got it. Okay. And then premium am at $6.7 million. So if I'm adjusting that, then your NIM adding back the premium am is 3.11%. And I just wondered around your margin guidance, how are you thinking about premium am for 2020? In other words, what's in your model as you're guiding to reported margin, what are you, and I ... | Well, the way we model that is, we kind of leave that in sort of, I don't have the exact forecast for the premium am for the full-year. But just looking at the trend, we had been, we did come up in the fourth quarter and the portfolio is a little bit larger. So I would have to say, given the rate environment that we ma... | intermediate | [
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d5d13ef8fa96416fe70e20b9cb73dde4 | Hi guys, sorry, just one quick follow-up. The other non-interest income line if you back out the $3.8 million gain was down probably about a $1 million to $1.5 million from the run rate. And it sounds like that was derivative -- a lower derivative activity from your customers. Just wondering if you expect that to bounc... | So, Aaron, I'd say that I mentioned that the CRE book looks pretty good this year. But having said that, these are really bumpy types of revenue opportunities. And directionally I'd say it should be another good year derivative wise for us, both from a rate as well as volume standpoint. But having said that, '19 was al... | intermediate | [
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e5fa3e3a96eb6f4582a1f5c85620408a | First obviously sales pace and order growth were extremely strong. Could you comment on if any specific builders were or product lines drove this strength or it was pretty standard across the board? And also if you could comment on pricing tolerance, incentives trends that you saw during the quarter? Looking forward, d... | Okay, this is Jim. Let me take the first part of your question, Maggie. We saw really significant growth in all of our Dallas builders and brands. Southgate is the highest price point builder and that's kind of held its own, but our townhouse business is just gangbusters right now in Dallas. All of our businesses are d... | intermediate | [
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bc9a4ee27b47150c78089d2d1b2e80cc | You surpassed your goal of the 92 active communities by the end of the quarter. I was wondering if you could give us any sense of how much growth we could expect during 2020 especially given that you are expanding into the Houston market? | We don't forecast, Rick you might want to come in this too really our future community growth, but I think that one important differentiator that we really have a strategic advantage on is it and all the markets we are operating and we've been there or our partners have been there, our team partners and builders have b... | fully_evasive | [
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1355e0c7748ad222464d117c86d576e7 | Can you talk a little bit about the gross margin outlook? You've got pricing, you think it'll go overcome some input cost increases. Your mix is also shifting slightly more downstream. We know store counts coming up. So just give me a sense as to you look at your backlog now and what you're expecting to sell in '20, so... | This is Jim. I'll take that in a few parts. First of all, I think investors need to recognize we have some of the highest margins in the industry right now. We don't see degradation in the margins. Trophy Signature Homes, which is more key to an entry level builder is having consistent margins with the rest of our buil... | direct | [
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8c1d18b994b42caa026251b55e3b6eeb | To clarify, Jim, what you said before Trophy Signature is performing better than you expected. Is that a reference to sales base, your ability to open stores, pricing power? What are the drivers that better than expected for you? | It's really everything with their sales are passion, we expected. Their margins are equal or better than we expected. And really one of the most exciting things is round town we are attracting some of the best talent to join Trophy Signature Homes because everybody in town is just amazed at their rapid and successful s... | direct | [
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26620b7aa4e9296e38c10de1f6edadf4 | Can you talk little bit about the land market on a go forward basis. So we figure the option shift on Trophy and you grew lots 40% [Phonetic] over the last couple of years, but your sales pace, your orders themselves have grown a lot faster. So when you look you notice -- I noticed in the slides you mentioned a slight ... | I'm going to let Jed take a part of the question, but one of the things I want to highlight that investors really don't see because it's not very transparent when they look at Green Brick and other builders in that, we don't do any off balance sheet land banking transactions where to make our balance sheet look like an... | intermediate | [
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88c2edb9498dd9f15148d51279a063b6 | Can you give us a sense of roughly maybe what percentage of your open communities at the end of '20 Trophy Signature might be? | It was officially 10 out of the 95 at year end and growing.
Yes, absolutely. | direct | [
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fb4279f8344e40e380a454df16b064ba | Can you maybe comment over the last week or so, if you've seen any positive impact from rates or negative impact from coronavirus on just traffic through the communities? | Yeah, it's been very interesting. It's almost like we're living in an alternative universe from looking at the headlines. Obviously, I'm a builder not a doctor, but we constantly look at the data in the context of things matter. First of all, our sales and traffic we just got all of our website analytics, all of our fo... | direct | [
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1fe12e65366cc9a58c4cf6b756aa4393 | Couple questions here starting with the return on equity profile. You guys talked about peers having higher leverage and that being a benefit on that metric. I think you said you'd take your leverage up to around 35% and obviously the peers are still higher. So how did you come to that 35% level? And do you think you m... | This is Jim. No, we're taking it above 35% because I think as we grow our business we're going to get increased return on equities from SG&A leverage. We hope to get about 1% there, 1% from titled mortgage business and 1% from our increased efficiency at our builder level and 35% was picked as we started this for a lon... | direct | [
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6a3def0545df1c628e1ff6799752ed6e | And then in terms of the increased operating efficiencies at the builder level, what does that really mean or entail, any kind of clarity you can give me there? | Yeah, so obviously a lot of our builders have reached a kind of targeted growth rate as far as how many homes are produced in a year and so that SG&A is now stabilized. We're not having to hire up to produce future results. Now with Trophy growing like it is we are, but our other builders have had more modest growth ov... | direct | [
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007c145ed6cb1cf9a0525380bdc03ca5 | And no change in terms of how you finance lots or anything likes that? Change in option profile to get that ROE. It's more just ramping the size of the individual organization? | We're looking at all kinds of alternatives all the time, whether side by side even partnering to buy -- in buying land with us, but right now we're just doing what we've always done.
Aaron, I think if you looked at lots owned and controlled as a measure of that one thing that's a little quirky in our numbers right now... | direct | [
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f371ef861a7c3d9e5212e88969b3896b | I was hoping to press a little deeper into the financial services. I was curious how much room for growth and profitability contribution you see from that segment of your business you're going forward? And how long the runway is? Is there going to be -- for a real contributor to earnings growth? | This is Jed. I'll take that question. So on our title business we only started -- Dallas was -- for 2019, Dallas was on title all year. We got Atlanta started in late Q4. So you'll see a lot of title business in Atlanta flowing through to 2020 numbers that wasn't there in 2019. On the mortgage front, with same kind of ... | direct | [
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fb75f3b16d11dd3c28be585d6e59e1a2 | And does the financial services piece of the business, does that also play a role with the GHO and Challenger and is there a strategy to roll that out with those partners as well? | It doesn't in Challenger. Challenger has its own mortgage joint venture. Our results are an equity return on our income statement where it's not broken out in terms of revenues. In terms of GHO, about half of their buyers are cash buyers it is a move down or last home purchase and so a mortgage operation is not as prof... | direct | [
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188b8e41e5446bf0305937d07ae09224 | In the context of the upcoming retail license products, and then, looking historically at your Buffalo Wild Wings and Olive Garden lines, can you speak at a high level on how single-item SKUs could maybe be a key unlock for enabling broader distribution? | Yeah, absolutely. It's a great question. As you're aware, up until recently, we were limited to a multi-pack offering that was principally in Costco, Sam's, and then in Walmart. We've been able to work out an expanded license agreement with Buffalo Wild Wings, which gives us the ability to move into all of retail.
The... | direct | [
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a9dfbeb509734eaa4f821d82fe250fea | You've talked in the past few quarters about how your foodservice customers have nicely outperformed broader foodservice. As we're seeing some sequential deceleration in your growth, any change in that dynamic? It looks like foodservice restaurant traffic was slowing and picked back up in November, December.
Have you ... | Yeah. Another great question. Historically, we've said that our business probably performs 150 to 200 basis points above the sector average and what we're seeing here that caused us to sort of guide down marginally are a couple of drivers. One is one of our strategic customers, as I mentioned earlier in my transcript, ... | intermediate | [
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8b76c88f518d6d1bd8b8c39ad2d82864 | If we could maybe parse the gross margin improvement, the 200 basis points that we saw in fiscal Q2. Can we talk about maybe what's attributable to the process improvements, both supply chain and transportation management? And then, I think in Q1, you did quantify what the benefit from better commodities was, and then,... | Sure. So, this is Tom. So, the cost savings program was the largest contributor to the margin growth. There, we're tracking to about $20 million annually.
So, we're approximately in the $5 million range. Commodities contributed another $2 million of cost, and as Dave -- of favorability of savings. And as Dave mentione... | direct | [
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d0b7a25b5095d564f78b8a5f98563322 | And the back half commodity outlook, has it changed? I know you talked about things getting inflationary on the Q1 call. As you're looking out, are you expecting as much inflation, more inflation? What's inflecting within the individual line items? | Yeah. So, it turns from being favorable in this quarter to neutral, and then, more unfavorable in the fourth quarter based on our current projections.
The commodities that are driving that for us, if you just want a little bit more texture, are eggs where we've seen a pretty significant pullback over the last three qu... | direct | [
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8ea4c6a2234833d6c09caa2826f11c49 | If we look at not the license partner products at retail. But as you look at new product development in the pipeline, whether it be cheese sticks or maybe the sweet rolls, can you talk about expected new product performance from a revenue standpoint? Or what you tasked the new product development side of the house with... | Oh, it's a great question, Todd. Historically, we haven't broken out those numbers. I can tell you anecdotally some of the things that we have going on. In the last quarter, we talked about three-Cheese Cheese Sticks, which continued to do well.
We talked about the sweet items. The pumpkin spice rolls continues to per... | intermediate | [
"direct",
"intermediate",
"fully_evasive"
] | B |
05c23f5901413a73b59042ae92949e3e | And then, just a final one on the Horse Cave facility being completed at the end of January. What does that unlock for you guys going forward? Is it capacity to fulfill demand? Is it new product capabilities? Or is it more on the product cost side of production? | Great question. And really, what it did and this is the Sister Schubert's Horse Cave project, they're sort of addressing that same need. If you look over the recent past, our business has continued to grow and we were running out of roll capacity. So first and foremost, what it enabled us to do, both in retail and food... | direct | [
"direct",
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] | A |
36478cd7285d378ea1edd3f6bd17446f | One of the things we'd love a little more color on is thinking about a recovered, new development margin run rate level once we get through all of this, and not necessarily, John, looking for a specific number, but if you can help us or guide us to how to get there on our own, I think that'd be helpful. | Sure. Yes, I think I'll do it in terms of opportunities as well as potential risks, as you think about the development margin. Obviously, the two expenses, if you will, are your marketing and sales costs and your product costs. Given where our product cost is I would say that we don't have a lot of new development or c... | direct | [
"direct",
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"fully_evasive"
] | A |
b9112125230fcede95805162d6cc073f | And my follow up, thank you for that, is with Welk now closed, there's always some little surprises. Some may be good, so may not be -- May be less good. Can you talk about any that you may have come upon so far? | Yes. I mean I think from the positive side, which I guess makes sense, I mean, their recovery that we're seeing in their business is probably a little bit faster than our recovery, right? They didn't have the international exposure like we have, right? Not a big part of our business, but we are seeing their sales of si... | direct | [
"direct",
"intermediate",
"fully_evasive"
] | A |
d48065f00b2505ab18726cfd690bc430 | Apologies, if I missed this first question in your prepared remarks on that $320 million to $340 million in second quarter expected contract sales, but how much do you expect the Welk acquisition to contribute to that? | Yes, I mean, within the range. Call it plus or minus $25 million in the quarter. So about 10% of the -- 45% -- it's about roughly 10% of the growth is from Welk. The other is organic, if you will, from our existing legacy MBW. | direct | [
"direct",
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] | A |
1616fda32a4e18b6f0a3e921ee02590a | Okay. And do you see that percentage similar for the remaining quarters of the year? | In terms of the -- To be determined. Obviously we're not getting into -- But yes. I mean if anything, I would expect that if that's what we do on the second quarter, there should be some form of recovery, right? In the relative scheme of things, right? Not big numbers for all of our contract sales, but I would expect t... | intermediate | [
"direct",
"intermediate",
"fully_evasive"
] | B |
12a08e49cba385e97858dba2c5b4634b | Okay. Fair enough. And then my second question here, certainly sizable M&A of Welk, that's not your first rodeo in M&A, with the acquisition of Interval several years ago, what would you say are the top one or two most important learnings or best practices from that type of M&A that you see carrying over to the acquisi... | Patrick, this is Steve. I think first and foremost, having a well thought out plan of integrating the leadership of both the Welk organization and our organization into a seamless team so that we can keep focused on all the right things. I think the next thing that certainly comes to mind is channel mix. Looking at eac... | direct | [
"direct",
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] | A |
f46386810e0557806d2403bf0bcf4289 | Good morning, everyone. Hey, guys, thanks for all the details this morning. Just quick question on the sort of the outlook and the tone of the outlook, I mean your guidance obviously implies you're getting most of the way back to 2019 levels, even backing out the incremental contract sales from Welk. So I guess my ques... | I think that, keep in mind when we gave you the 20% increase over the fourth quarter in Q1, that included really below our expectations for both Europe and Asia Pacific. A lot's been written and I'm sure you're very well aware of some of the travel restrictions, etc, that exist in both parts of the world there. And I e... | direct | [
"direct",
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] | A |
5296bfa1b4b41374b5dab4e7d96a31d8 | Okay. That's helpful. And then a question on VPGs, obviously a really strong step up quarter over quarter. And you mentioned that was despite unfavorable mix or let's say a diluted impact of VPG from new owner sales. So I guess the question is how did that step up, right? Was it closed rate, was it location-based mix? ... | Yes I'll give you a couple of stats for what they're worth. So our contract sales in Q1 for owners was 74% and first time buyers was 26%.now the good news is that first time buyer mix in Q1 was actually four points better for first time buyers than it was. So it was 26% versus 22% in Q1. Tours, in a similar fashion, if... | direct | [
"direct",
"intermediate",
"fully_evasive"
] | A |
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