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5f251ca8bc23398b9785ca73823783bc
I guess then on to Ipswich a little bit. I guess what does Ipswich, it sounds like it's probably a flattish mature business. What's their motivation for selling at this point? And maybe as a follow on to that, are you seeing the tide turn a little bit in terms of converting more of your M&A pipeline to transactions? Do...
Yes. So, Matt, I think that why the folks at Ipswitch wanted to sell is probably a question better answered by them. It is a mature business. It is a founder-owned and founder-led business, and so I think at some point people go, you know, it's been awhile and maybe I ought to do something else. So I think there are lo...
intermediate
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B
d87b36024753954e20aa2d0d41bb2eda
So, I want to ask you about the book position for '23. I understand your book position is still, you know, just 26% ahead of where you were in 2019. But I guess that actually slowed a little bit from your last update back in May. So, trying to understand, you know, what drove that sequential slowdown? Or is there anyth...
Sure. Thanks, Steve. So, a couple of reasons for the booking trends that you're seeing. So, I think it's important to note that the booking trends, the actual bookings coming in the door, when you look at it really since the middle part of January has been really strong when you compare it to 2019. In most weeks, it's ...
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c19d263b1c5018558270c8411f04d737
Second question would actually be about your liquidity position. I know, Craig, you noted the -- I think in your prepared remarks you referenced is being strong. And you guys don't really have any near-term maturities, I guess, that would, you know, that would be concerning. You know, I guess I'm wondering, you know, h...
Sure. So, when I think about the liquidity position of the company, given that we have $176 million of cash, given that we're seeing substantial deposits and funnel payments for future travel, given that all the ships are back in the water and operating, I feel pretty good about where we are from a cash perspective tod...
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7983da15bf6cf8df2c4fb6d80b54137b
First one for me, I wanted to follow up on the future bookings commentary. And look, obviously you can't give guidance, but is it reasonable for us to assume that the future book position could possibly flow next quarter? And would it be a surprise if it goes from 26% to 24%, for example, just from the normal ebbs and ...
It's obviously a hard question to answer because it really depends on what happens in the broader world right now. But if I looked at the last several weeks versus where the trends were going, it should improve from there, from where we are today. So -- but that's -- you know, two weeks is not a trend mix, obviously. B...
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3c31847b4f440924ec2978e2916aa1b5
And then as you look at that future bookings position, is there any noticeable changes in terms of demographics or the number of repeat guests compared to pre-COVID or maybe more recent COVID times? Anything worth calling out there?
Yeah. The only real change that we're seeing right now, more than anything else, is I would say there's a little bit more direct business versus the travel agent business. Not much to really call out, but a little bit more direct, a little bit more domestic today than it traditionally would be. We're always very high o...
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ee4bed1e7a34d4aa2ad5d1f0b4383480
And then last one for me, if I could. The recent addition to the offered itineraries, I believe they're called Epic Voyages. Are those new voyages the result of a greater comfortability around longer cruise time now that we're moving further out from COVID fears? Or is it kind of a return to normal and just going to wh...
I think it's a -- this is Dolf. It's a combination of the capability of these great new ships that are so comfortable and all the accommodations that they provide. And also, I think, a real interest in the way that we've marketed to the to consumers around these Epic Voyages that cross, you know, so many more latitudes...
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f850e4904f3395066ed9d97d233d6e4e
You know, I wanted to ask about the commentary, Craig, about being profitable in the third quarter. Is it your expectation that now that you're kind of close to getting over that profitability hump, that Lindblad would be profitable on a quarterly basis from this point going forward? I know it's hard to give, you know,...
Sure. So, let's kind of walk forward where we are today. So, Q3, we mentioned that we certainly expect to be profitable. That would only change if there was a significant amount of cancellations for whatever reason over the next several months. Obviously, July has already happened. We didn't see that. So, it would have...
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4b14939394136d7f8eba6b3ced083a05
On the land-based side, Dolf, you mentioned the potential could be amassed from cross marketing and insurance services there. Just given the strength we saw this quarter, do you feel like that's already starting to happen? And then within land, was there any variation among the acquired businesses that stands out?
Well, first of all, I would say that there is some effect because what we've done is we've taken our marketing experts from across the businesses, shared best practices. And so, I think the effectiveness of the marketing for the land companies is the next level from where it was in their past. And so, that's been a pos...
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592a01ec6888c489e2fdf2481bbee49b
And then just, Craig, on the cost front, how should we think about some of the restart cost and the health and safety costs that you've had to incur during the first half of the year? And when do we start to see that kind of come back out at this time?
Yeah, most of that is already -- I don't want to say come out. I mean, there's still some minor costs associated with testing, there's minor costs associated with, you know, through travel and quarantines, and things of that nature. But there's not a significant amount of that cost still in the business. It was there i...
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1716de711a0e3cb6134f377374cc952b
Hey, guys. Thanks for the question. Great to hear that Hess is potentially adding a fourth rig later this year, a little earlier than expected. I'm just curious if you've had similar conversations with third-party producers and if they've been given similar commentary around potentially ramping up activity later this y...
Yes, Doug. Thanks for the question. So again, we're focused on Hess as our priority, and we're well-positioned to support Hess, if it decides to accelerate rig four, which based on the earnings call, sounds pretty -- it sounds like a good outcome for us. As far as third-party goes, we are seeing rigs increasing in the ...
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ff2585d4b0f82c4536e387b39626ccf9
OK. That's helpful. And if I could sneak in one more on capex. You mentioned that the compressor station that just came online was a bit under budget. Just curious if you see the potential for some savings on the second compressor if that could come in under budget? And then if you could just talk a little bit about th...
Sure. So yes, the first station did, it came in under budget and ahead of schedule, and we're continuing to focus on that and try and continue to deliver on that. We do see some inflationary pressure out there. So we have made the decision to pre-buy some equipment to make sure that we minimize any risk associated with...
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6059829d91931ec0f6786dabfda457a4
Hey, guys. Thank you for taking my question. Congrats to a good start of the year despite the challenging weather. Just curious, I'm going to follow up on that capital spend question. I know it's a little bit early, it's only late April. But as you're starting to think about in about four or five months from now, you'l...
Yeah. Thanks for the question, Michael. We do definitely see an opportunity to reduce capital spend into 2023 and beyond. We are going to continue -- as I mentioned, we are going to continue to develop some infrastructure in that, but the pace of that is going to slow. And so we would definitely see a reduction in capi...
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dd309f0b2cba91beefbbe9eea191a715
Got it. And when you're looking at year-end 2022 leverage metrics, so kind of trailing 12 months as you get to the end of the year based on the guidance you provided in the debt outstanding, including after the new issuance, do you think you get below kind of your leverage metrics, meaning you have leverage metrics tha...
Right. So the current plan has, as I said, meets that three times target by the end of the year, and then as we move into next year with continued growth in EBITDA and being free cash flow positive in terms of fully funding our capital and distributions. So that we would continue to delever going into 2023. So that's t...
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619c8b98b46f3b789c77733cd18c83bd
Hi. Good morning, everyone. Just a quick big picture question for you and kind of following up on Michael's last question. In January, I asked you guys about the broader financial framework and your relationship, I guess, with the parent and what you could do there. And lo and behold, you bought back or you did the $40...
Right. So if you really look at what we've really been really working on and the journey we've been on, I'll say, really since back to the simplification in 2019, it's really had two objectives. One has been to remove technical obstacles to ownership, really started with that simplification continue to last year with t...
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f0872eb15ee5b76ee6577700f714a741
First off, Henk. It's been a pleasure. Good luck moving forward, and hopefully you will stay in touch. And Jeremy, congrats on the new role. Maybe if we could start off -- the way the fourth quarter ended and your first quarter guidance is pretty strong. Can you just talk about maybe the order trends last year? What co...
Okay, thank you for the question. So there is a couple of factors to consider. So first of all, we did end the year very strong as we mentioned in our prepared remarks, with a book-to-bill of 1.1, most notably very strong book-to-bill in our Industrial Solutions segment. I think we referenced in our remarks a 1.6 times...
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73c216f8119a47814151c9731f7bee9f
Perfect. That's very helpful. Thanks. And back at the Analyst Day, it sounded like 2021 growth in each -- growth in three out of your four business with Smart Buildings still expected to kind of live the recovery. Are you still thinking about the same way? Maybe just talk about what you're seeing kind of in the sub-mar...
Yeah, absolutely. So we see our Industrial Solutions segment grow approximately 6% to 8%, that's implied in the guidance. Our Enterprise Solutions segment we expect to be down 1% to 5%, which is basically a tale of two cities. So our Broadband and 5G business we expect to continue to grow low single-digits. But we do e...
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87ea880905b2c64893f9163760ee8ff0
Great. Thanks for taking my questions. I want to offer my congrats to everyone on the good results and outlook, and especially to Henk and Jeremy. As I could first ask about shortages in related semiconductor market we're seeing shortages prevailing in that industry. And when we look at your book-to-bill, we have to co...
Yeah, we tried to. Thank you, William. We tried to anticipate some of these shortages. And as a result, you could see that our inventory levels in Q4 we're only at 5.2 turns, right, and they were 6 turns a year ago. That's not what we're used to at Belden. We made it up in other parts of the working capital, so therefo...
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c01ed2b791c3ec25310d923ffdd82818
The call now about the very short [Indecipherable] OK, great. And relatively short duration of backlog. So I think I get it. Another question you -- at the very end of your prepared remarks you talked about Belden as a compelling investment opportunity. We haven't seen buybacks in at least the quarter, may be longer, a...
Yeah. Our capital allocation priorities have not changed from how we laid them out during Investor Day. So our priority was and will remain de-levering. I think Henk explained that we have no covenant issues, but we do feel that that is the most prudent thing to do in terms of the uncertainties of the world that we liv...
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c8e041bd1bc9aed152dfb9ebd4230f1d
Hi, everyone. And Henk, thanks for all you've done over the past 20 years. And Jeremy, congrats on your new role. So, well, I was hoping if you could just comment a little bit on the R&D investments you talked this again at Investor Day, that you discussed how this is -- they are expected to pressure margins and EPS in...
Yeah, absolutely, absolutely. As a matter of fact, the investments that we're making now, we are confident we will increase our growth rates in the 2022 and then 2013. So the thesis that we outlined during our Investor Day is still very, very valid. The guidance implies a path to get us there in the first year of the t...
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8b9106d0df2cedd6943e5ea1b3203f86
Okay, great. Thank you. And then just in terms of -- you're seeing this nice strength in Industrial Solutions. Could you comment a little bit on what you're seeing in terms of discrete, oil and gas kind of some of the sub-markets within that -- within the segment?
Yeah, we're. Our Q4 results were pretty even among the verticals. We feel good about discrete. If we look at our current order rates, then we feel very strong about -- very good about the discrete. Our leading indicator as we see it, is our business in Germany. The business in Germany in Q4 was very strong. It was actu...
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d400f7c1b14db7ecc396e7fc13d20881
Hi, good morning. And congratulations and thanks for all your help over the years. I assume you're [Indecipherable] please let us know what you're going to be doing. Anyway, in terms of just the numbers, I guess, I'm a little curious about where you see your customer inventories in the channel inventories, you mentione...
So first of all, let me comment indeed to make sure there's no ambiguity. Let me comment on the customer inventory levels. So we had outlined the plan at the beginning of the year to get to $70 million out of of the system I feel. So further reduce our channel inventory partners levels with $70 million, and that's exac...
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2247eb88b1fd3c45d55489173c400cf7
That's very helpful. And then just as a follow-up, can you talk a little bit more about the Broadband business, especially; one, how you're gaining market shares? And then secondly, sort of the growth outlook, either still between the MSOs versus telecom and networking?
Yeah. So a few comments that might be helpful. We see the trend of our mix moving more toward outside the home versus inside the home connectivity. So for our full-year 2020, we had 50% of our revenue outside the home, and hence 42% inside. We had actually an exit rate of 64%. Q4, we had 64% of our revenue outside the ...
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b479eceab8bafd69ff07ba08c2e55ccf
Hey, good morning, and thanks for letting me ask a question. First, I wanted to ask a little bit on the Smart Building side and kind of how you envision that playing out for the rest of the year? Obviously, pressured with the situation. But as that improves, do you see a big rebound there? Or just kind of how you're th...
We continue to expect that business to decline in 2021. And I think during the Investor Day, we highlighted that over to three-year period. We outlined a base case and an upside case. In the base case, I think we said low single-digits over the last thee years. And on the upside case, positive low single-digits growth ...
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334748efc1b91c2e44a63dbf4dfad308
Okay. And then from our follow-up. Just on -- any comments on the ordering patterns in terms of being rational, and are you seeing much anxiety in terms of trying to pull in orders just ahead of any any shortages, I guess down at the food chain?[Phonetic]
Not at this point. I think I indicated that we feel good about the early trends that we're seeing it within the quarter, but we don't see anything out of the ordinary.
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20c7fb5a40d467a7bbac454cc554618b
Hi, thanks. And first, let me just comment. And Henk, it's been great working with you for the short time that we have, and congrats on your next endeavor. I guess the question that I have is because many might have been asked. I'm just curious how your upstream supply chain has been shifting? Is the market that you se...
So I think we touched on this earlier. We feel good about our supplier's ability to deliver our components in the products that we require. We carry, I think, I've highlighted earlier that we carry a little bit more inventory than we typically do for this specific reason, to ensure that we don't run into shortages, and...
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3f378d876892d79c5198bbde46428d58
Got it. I guess, what I was trying to ask is not whether or not there're issues, but the process. I'm assuming that your supplier base is shifting though with technology shifts, and so I just want to -- my question was more about the process of evaluation, testing, and qualification of your upstream suppliers? Is the m...
All I understand. I appreciate the question. Yeah, well, first and foremost, an increasing part of our offerings is software, so that obviously reduces the dependency on supplier lead times and supplier component availability. And secondly, because we are such a diverse enterprise, since we have so many different types...
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09d4ad8889bfa0067b58e062802f8f3f
Yeah. Good morning, and thanks for taking the questions. And Henk, please let me thank you as well for all of your help over the last several years, and wish you the best going forward. Yeah, two questions for me, if I could. Maybe first on the Cybersecurity business, going to a lot of news around increased number of h...
Our funnel currently supports our forecast for the first quarter and for the full year 2021. We continue to focus on our number one strategic priority within Cybersecurity, the industrial space, and we're pleased with the results that we've achieved within that vertical. So in 2021, in the second half, as you know our ...
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287a1c1d499bd88c4874f6bd13c1aed2
Understood. And a follow-up question. Copper pricing, shipping costs and semiconductor prices have all been rising. Can you speak to how much of a margin headwind you may be expecting in your 2021 outlook from some of these factors?
We don't. We have the ability to pass it on to our customers, oftentimes through contractual agreements or oftentimes through price increases. And since -- we're very used to fluctuations in copper prices as well as other metals. We're confident in our ability as we have proven over the last years to be able to pass th...
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039370d5f05e28263c36346e1ecd6a94
Yeah. Thank you and congrats, guys, on a great quarter and a great end to the year. I wanted to start with the seven-figure customers that you disclosed in the slide deck. It seemed like you added, I think, 20 new customers in that $1 million-plus cohort, which is more than double the adds that you had last year in thi...
Yeah, I'd like to say it's all of the above. We're offering more value. We're showing reliability and uptime. We're expanding the industry into what is effectively a larger industry. We exist at the top end of that industry. So we're differentiated from the -- from our rivals who serve the lower-priced and lower-value ...
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ec1fcc22d063833aabe80fbb94b27f50
Perfect. That's very helpful. And I know that we've been talking about this holistic platform that you're building or have built at this point with low-code, RPA and process mining. And we've talked about that value proposition quite a bit. I'm just curious where are customers in understanding what you've built by brin...
Yeah. An innovator is always doing some degree of education. This market is not entirely knowledgeable about what they could expect or should expect. But I can tell you that when they hear the message, when they see the demo, it makes sense quickly. That's the difference between an innovation that's going to be straigh...
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ec818d9727567328624e7f2100df0d84
Thanks for taking my question and congrats [inaudible] everywhere, 30% subscription growth, cloud growth, big customers. 30% seemed to be like the theme of your presentation, Matt. And so, to that end, where do you think the company is getting better at if you sort of look at when you sort of go to the narrative since ...
Yeah. Well, the one easy answer would be I think we're advancing on all fronts. But I want to speak to one transformative inflection point that we're going through right now. And the same is true for everybody else in this industry and any software industry that matures. We are transitioning from being a company that's...
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cb6f965e50ea7e6047aae9cdc88545bd
Hi. This is George on for Steve. Thanks for taking the question. Congrats on the quarter and the $100 million revenue quarter. Great to see. My question was about the Great Resignation and whether that's come up in customer conversations as a potential tailwind to demand as they're sort of grappling with these? Are the...
Yeah. I actually think there are tailwinds. I don't know that they've manifested themselves or that they're measurable. But in theory, I like to think that there's going to be tailwinds, maybe not yet. But the Great Resignation, first of all, stems from a situation, which people and assets are extremely dispersed. Ther...
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4f02e714677c11976e07120b6a2eaace
Great answer. Thank you. One quick follow-up. I wanted to ask about process mining. How has the rollout been going? I know there was a lot of customer excitement following the acquisition. I want to know if there's been any impact on top of funnel? Are you able to get into some of these engagers sort of earlier on in t...
Well, it feels great. I love the initial feedback. It's too soon to declare victory on process mining because it's only been out there for a couple of weeks. But right now, it appears to be getting a lot of applause from the customer base, a lot of understanding. A lot of people are like, well, of course, right? This i...
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02ab6b277aab043be0a7421fa5ae5669
Hey, guys. Thanks for taking my question. Just to follow up, I guess, on that line of thinking, could you just give us a little more color on the strategy of how you're feeling about selling the new process mining offering this year and driving more cross-selling uptake in 2022 and how that may impact net revenue reten...
Yeah. We will sell it to existing customers who don't have a license for it. But the main impact that it's going to have is going to be a demand generator. That's the purpose. Now, you can do other things with it. It's great for monitoring the return on investment for applications you've already deployed. And that migh...
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a991fe1dbced3c983030776581e4fce8
Great. Thanks. And Mark, you guys are guiding for a little bit higher EBITDA loss this year versus last year. I guess that you're expecting some more T&E. And then, also to call out in terms of where there's incremental investments this year versus last year. And how should we be thinking about the growth versus margin...
Yeah. I think over time, you can see that -- if you look at the customer unit economics, they're exceptional. So over time, we're going to get leverage in the model. We're just choosing to invest a little bit more this year. And it's not much more than what we did in 2021. It's based on the results that we've achieved....
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7e4703252668a1bc5a7e774f7449ab48
Hi. Thanks for taking my question. I just saw that you guys are -- the government cloud got provisional authorization the other day. Can you maybe talk about some of the federal engagements that you could be pulled into now where you couldn't before? And can this be an incremental contributor for you in 2022?
I'm so glad you mentioned the IL-5 certification, which we got two days ago. I'm pretty excited about it actually around here at the office. I think it's a big step for us. It is a frequent requirement in contracts that we feel we're very qualified to bid on, that we think that we're going to be able to deliver value i...
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efe77d7ad515f64782d977b86b1f16f9
Great. Thanks. And then, at your analyst day, you also mentioned that you are aggressively hiring sales reps for different verticals and accounts. Are you happy of your progress over the last year? And there's kind of a step-up in opex in your guide mostly relate to hiring more quota-carrying reps? Or would you say it'...
I would say that sales is one of the very central places and reps specifically that that money is going to be placed. And we're doing that out of confidence in the market, confidence in our success in the market, our win rate, our growth rate, our customer satisfaction, our leverage in an account. We see the propositio...
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05f553e8e6748d63fe7336983081b071
Hi. Thank you. Firstly, I just wanted to say thank you to the team for the additional disclosures this quarter. I think that the walk-through of the financials is quite helpful to better understand Appian's model and your business. I wanted to ask about both customer adds and also subscription revenue per customer as w...
Thanks, Fred. Our intention is to push on both of dimensions. We've been successful at increasing the value of our deployments, and I believe that we're doing a lot to increase the value of the product and the usage of the product. And monetizing that usage would lead to more dollars per customer and per deployment. We...
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c9af6f0b1bd2f7adcffc5374b63773bf
Great. Thanks for taking the question. I'd also like to thank you for the increased transparency in the slide deck, like how simple it was. So I had a question about, in lieu of getting the new customer deals you guys had, I was just wondering if you had any deals in the quarter that you were happy with in terms of may...
It's actually a really strong quarter for new deals and good logos, and we're saving those stories for next quarter. Generally, we talk a lot about our customer success stories. We detail them in the prepared remarks. And this time, we decided to break entirely away from it. Thought if you'll tune in next quarter, we'l...
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3f084969ec1fbce59faa6e4e7c1323e1
All right. Cool. I'll be here for that. So as a follow-up, I think in the past, you've said that where your customer success teams are involved in projects, the NRR is -- can be as much as 20% higher than without them. So my question is, can you quantify what vintage of projects are currently being served by Customer S...
That statistic is a powerful testament to the quality of our customer success team, and they are terrific. However, it doesn't mean that they've got to do the implementation themselves. It merely means they've got to be involved in some way. And so, our goal is to find new means by which they can work alongside our par...
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aeaac643de11a7b7fbb4e2c33fca2e5c
Hey, guys. Kristen, I think you just said that you expect transaction growth year-on-year in the fourth quarter. I just want to clarify that. And can you also just talk about the linearity that you're seeing that would put you at about 57,000, I believe, for the fourth quarter? So what's the linearity that you're seein...
Sure. Thanks, Ross. So yes, you are correct. We are expecting year-over-year transaction growth of about 20%. And as indicated in our guidance, we have seen -- we are starting to see a return to more normal seasonality following quite a different 2020 as a result of COVID. We started to see a little bit of that return ...
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8da7ffcb6d0f62633c7736049ff27463
Thanks. I'll ask two. So how do you incentivize your agents to push your Title and Escrow and mortgage versus alternatives given kind of rest rules? And then secondly, there's obviously been numerous technical factors that have weighed on the stock. As you get past the lockup, the earnings lag out, I mean, the stock ca...
Yes. So I'll answer the first question. I'll let Kristen answer the second. Yes. So of course, there are rest of rules that we follow and the entire industry follows, where you can't economically incentivize an agent for referring title and mortgage to their clients or any other product or service that's required at th...
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38eefc0f2fb5076d58053fe435d2d0c8
Hi. Good afternoon. Thanks for taking my question. Just one for me. You noted that your October market share was tracking well above what you saw in Q3. Can you quantify how much above? And was your share in October tracking above or below the 6.2% you saw in the second quarter?
The -- I think just taking it to back first, I just want to reiterate that the Q3 market share sequential is not a decline over Q2, is not part of any long-term trend. As Kristen mentioned, in October, it was up from that Q3 level. We don't share those month-to-month numbers, but it was meaningfully up. Also, I think i...
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C
dc51b30431b87e5887e2345453f9d177
Hey. I figured why not? Does it get easier to hire agents if the market slows? Just philosophically, maybe talk about that. Thanks.
Yes. No. It absolutely does. It's one of the benefits of a slowing market. When things are incredibly busy, agents don't have the time to have a conversation. They're too busy with their clients, which, of course, is their priority. So they don't have time to learn about Compass and to see what we can provide with our ...
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A
348d9831758cbbe6c679fdf49dc75333
First, just on book value. Are there unrealized losses that we should think about in terms of further book value recoveries? And also, just any comments just on book value trends quarter to date.
Yeah. I mean, clearly, first part of the question, unrealized losses, we certainly have some securities that still are underwater relative to the March 31 price which we think we will continue to recover. Those amounts are probably in the neighborhood of $0.10 to $0.15 per share. And then as it relates to the current b...
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A
f25bfa7c0140239665dea21c41dd3d78
And then just in terms of the earnings power of the portfolio, can you just talk about where do you think that currently stands and where that goes as you continue to optimize your funding?
That's right. I mean, look, our total portfolio size still has a lot of room to grow given the current capital we have on the balance sheet. So as we do continue to deploy out securitizations, we continue to think that we will drive our -- we're going to continue to try to drive the net margin in what we would consider...
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B
db9a3d359be8d1fa63ef36eebfa102f7
Lots of different business purpose loans out there. It sounds like fix-and-flip is what you're targeting. Can you give us some color on the proprietary pipeline that you mentioned? Like, where are you guys sourcing loans from? And what are you paying for them? And then on the two securitizations you expect to complete,...
Yeah. So on the first question, on business purpose loans, yes, we're focused on the fix-and-flip strategy. We like the short duration of these assets and the pickup on HPA for the contractors to convert these loans -- to pay off our loans at maturity. There have been a number of originators in the market that were sup...
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A
c90a61551bd01fc5bbffc3332a1b6de1
Can you discuss the maturity schedule of the commercial loans? And then on the scratch and dent, are those loans delinquent and subperforming? Or have they been disqualified from the agency channel for some other reason?
Yeah. The commercial loans, which were all multifamily loan originations, mezzanine or pref originations, those are typically structured -- the structure is 10 years. And in the case of scratch and dent, we are buying what we think are technically -- loans that were technically dropped off of origination warehouse faci...
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A
59f268472b63f62b02fcb5b4eb5e444e
On the dividend for 2021, given that you're a mortgage REIT, shouldn't we assume that the dividend payout will go out? Go up, I should say?
We continue to generate a large part of our earnings from unrealized, which obviously is not required distributable income. We will monitor our dividend. And as we drive the portfolio size up and look at the, what we would consider, reoccurring revenue stream, that's really what will dictate the dividend pay rate. So t...
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B
a655ec7e4e75311759ea1aee07ab7a50
OK. And then I didn't see it in the deck, but how much dry powder, balance sheet dry powder, do you think you have now?
Yeah. I mean, there's roughly $300 million of cash on our balance sheet as of -- and I'm speaking as of Q4. We have vast amounts of activity that's happened in the first two months that I won't comment on directly. But as of the end of the fourth quarter, roughly $293 million. We just spoke about a securitization of up...
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A
30c862c23d00958c3d9dc49e150b2e89
Great. And then a follow-up on Eric's question on the BPL loans. Are those loans made to the originators? Or are they sort of selling off their loan production to you guys?
Yes. So the originators are an originate-to-distribute kind of model. We're funding the loans that they're originating directly for contractors in local markets that are either flipping houses or buying up portfolios for rental purposes, which is a trend that we see increasing. So it would be for both those purposes. W...
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A
b7e6d18e0e2467d4a8c1c6fa9b846f71
Yeah. I cover a fix-and-flip originator in my coverage. And the yields on those loans are closer to 12%, plus around 4% of fees and so forth. And you're getting an average coupon roughly 6%, 7% or so?
Yeah. The market is -- there's a couple of ways fix-and-flip loan originate and a couple of different paths. Without going into very specific levels on what you're seeing at the 12% range, we can certainly structure a loan at a 15% coupon, and it would be more risk and higher risk of default. One of the things that we ...
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2c80f30a745006c5e0d733d8c469d85f
Final question. On the fix-and-flip, what sort of return does a contractor have to generate with your loan in order to make breakeven?
The contractual -- so there's two types of loans or two types of business plans that we lend to. One is a turnaround flip of the house. The other is more of a cap rate model where it's a rental play. And at times, that changes over the course of the loan, where the rental play becomes more formidable given cap rate com...
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8c9c2cef50cbefb8e5e188406dd96c03
Hey, good morning. Thank you. Steve, if we could just go back to your comments on mid-teens ROE, should we think about that split between net income spread or net spread as we do in the multifamily. It's two-third, one-third. And I want to leave the legacy investments out and sort of think about it on a go-forward basi...
So the two-thirds, one-third is asset allocation, right? And really, that's because we're putting a lot of -- we're putting more leverage, not a lot, on the residential side securitization. The majority of our multifamily assets today are mezzanine loans that we don't put financing on or secured financing on to date. S...
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B
d9dfd56a9c140cd416ea8c7b248a3352
OK. So the strategy -- asset aside, leverage aside, is there a minimum cash-on-cash return hurdle? Or is it because the duration is so short that you look at this as a total return play and there's no minimum cash-on-cash hurdle?
We don't focus on a particular IRR target for any portfolio. It's all risk-adjusted, obviously. We will look at assets that have a carry of less than 10%, but have a total growth opportunity greater than 10%. That is the RPL strategy. And there's other asset classes, such as multifamily, where it's unlevered double-dig...
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A
d235ab3ba82c299e2b6c0f86572dc499
As you think about the leverage opportunities in 2019, Bob, what do you see this year that will be different than last year for this occupancy, whether it's comp and wages? And then this next first quarter and how you're thinking about the comp guidance, what are you seeing different in the first quarter than what you ...
Two things that are really going to drive leverage in 2019, and really, the primarily -- primary one is leveraging SG&A. As we've noted throughout the year, we've made significant investments in advertising, stores payroll, wages. In addition to that, we've done a number of restructuring activities in the retail field ...
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A
0f462495c1436ef485ba2c0242a1ce20
The positive traffic was impressive. And as we look at the model traffic over the next year and quarter, what are your thoughts on traffic and merchandise margins, particularly as some of the commentary on February has been more cautious from other retailers? And lastly, just on denim, your denim leadership has been ou...
In 2019, just thinking about traffic, both brands, AE Brand and, significantly, Aerie brand, have performed much better versus the mall. We expect that trend to continue. AE has kind of leveraged traffic by 2 full basis points, at least, on average, if not more throughout the course of the year. And Aerie's traffic per...
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B
bde395d9cd7915e7d995e47a057bd4fb
We've had a lot of bankruptcies, a lot of store closures in the team space, a lot of players that I kind of wonder how they're still there. Can you think -- can you give us your thoughts on where you see Eagle going forward? Is it mall-based? Do you see opportunities to partner with other brands or other digital brands...
We still see the mall as being strong. A lot of the mall developers are doing special things to their malls. They're trying to add like some special -- you saw cyber mall has just announced that they're doing a deal with like twin CBD products in their malls right there. So we're still very optimistic. We're working wi...
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4f1151de94faac9e3aa942dad37a3b37
I guess, my question would be on the first-quarter gross margin outlook, Bob. I heard your comments on SG&A but just was wondering if you could give a bit more detail on what you're looking for on the gross margin side between IMU, markdowns, occupancy, etc., and then also just what you're seeing on the IMU side as you...
So you can think about Q1 gross margin along the lines of flat to down slightly, really driven by BOW deleverage because of some increases and buying compensation and delivery due to increased transactions in digital and a couple other things. We're seeing really strong improvement in IMU in the quarter, for sure, and ...
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bc9797cc563bbbe2800008bf3eb87322
So there's some interesting comment on gross margin, Bob. So do you look to that shipping deleverage to moderate in the second and third quarter then, allowing gross margins to improve? Or maybe you could help us understand how that shift will...
I do. We saw some slight demand shifts in February that, as Jay pointed out, spring breaks are just kicking in, in March for college. You've got an Easter shift versus last year, both pre- and post-Easter, all fall into April. So we've got a lot of the quarter ahead of us, for sure, and we're expect -- we did a great j...
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A
a97b974812d3aca9132ce212cd451600
We still want to know about international trends. Anything you're seeing differently or any color on Europe?
Yes, well, we're really not operating in Europe presently. As Jay pointed out in his opening remarks, we just signed a new franchise agreement for Europe, so that won't kick in until later on in fiscal '19. We really saw strong performance in our Canadian business and our Mexican businesses. Mexico has been performing ...
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A
b8baf54c0d5948518238161d3c4f7599
I was wondering if you could touch on Aerie and the profitability there and the improvement you saw in 2018 and then, I guess, where you guys are at on the time line of kind of narrowing the spread between Eagle. And then also, I guess, just one follow-up on the previous question on the BOW deleverage. If you could cla...
So on Aerie profitability, we don't break that out separately, but the one thing I will say, that Aerie's pretty much doubled their profitability this fiscal year from last year, which is one of the main reasons, and it supports our accelerating growth of that business and looking to open 60 to 75 stores there. On the ...
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B
928f7205874b20b2ddd6ef181cb00723
Would you catch on the promotional cadence at Aerie and how that's trending and also provide your initial thoughts around target launching its new intimates line, which seems to go after the same customer but through a lower price point?
Well, actually, in Q4, we were less promotional. We really took advantage of our momentum going into the fourth quarter, and we were really strategic about our promotions. It's a promotional time period, as you all know, and we definitely pulled back. And we actually saw our margin flow through higher than even our sal...
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B
c304e2e7cf31c6e1bf4b65fb8ef3ceb1
Curious about the -- your outlook for Aerie store openings this year. Maybe if you could break down the number of stand-alones versus side-by-side. What do you expect in terms of average store volume in year 1, just given the geographical breakdown of where you're opening, how you expect store volumes to look versus yo...
So as I pointed out, we're going to open 60 to 75 Aerie stores this year. They're going to be a little more heavily weighted to stand-alone store openings versus side-by-side, think maybe 60-, 64-ish weighting along those lines. And from a store productivity perspective, stand-alone stores do approximately 1.7 million ...
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A
efadace3c2154c83f5bcd7168ada8abf
How many stores can you add to your current base presumably for Aerie without needing to expand your distribution facilities into new buildings?
I think we've got a couple of years out in front of us before we hit capacity in the distribution network that we have, and actually, the teams have already been working on this for a while. They're way out ahead of this. So I think we're -- regardless of store counts within Aerie, I think just as a total business, rig...
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B
5e392c8511a4b63e7229f161e0364b1d
Wanted to first just talk about the loan growth outlook and obviously you've been working through some credits and it's good to see the NPAs down and dealing with those energy and leverage credits. Can you talk about maybe the pipeline where it is today maybe versus at the end of last year and at some point during the ...
So look, we're still in the middle of a pandemic and so we are not really giving guidance on what loans are going to do over the next 12 months. Our clients have done well through this period of time. We're beginning to see opportunities that we haven't seen in the past. We believe that there will be opportunities for ...
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C
f994aa708721dcde8805df00f9ab4973
Okay. That's helpful. And then secondly I think PPP loans were $715 million at the end of 3Q. What were they at the end of 4Q and then can you talk maybe about the matriculation of the fees in the first half of this year as those loans are forgiven and then just maybe any thoughts on the second round of PPP?
So I'll take the fee part and then JT can talk about balances. The fees, we would expect there still to be some impact from the fees for the next two quarters at least as those pay off. Yeah. As far as the PPP loans we had a peak of $717 million in Q2 and that's down to $617 million now, so about $100 million down. An...
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A
795141a59f81f461ecacf30f36f2fb28
Okay. And if I could sneak in one last one, was just curious on the -- if you had moved the loss factor what you realized on those net charge-offs in the energy and leveraged loans what kind of loss you took on those?
Yeah. That's not something that we usually -- that we usually give. I can tell you that the energy deals were -- energy deals they have been problems for a while. So that wouldn't really be representative of anything that would be left in the book. And then the COVID-impacted credits, those were just -- those were -- t...
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b73419c246635ecd99b48d975ead3fba
I just wanted to ask about the growth in the bond book. I know you guys signaled that you'd be adding and you did at the back half of last year. What about from here? What about into 2021? Will growth in the bond book continue at this pace or will it slow or will it be flat? How are you thinking about putting in excess...
Yeah. So I think that -- yeah, we've been pretty aggressive since the middle of the year at moving that up, because we needed to pick up the yield. I think we'll be cautious with what's going on with rates. We're going to be cautious. And then again, we're going to spend time with Rob and figure out what strategic obje...
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B
d7af775cf6a0e6eb24f2d064848a59d7
And then within the fee income, there you have the line that's the gain on the sale of loans held for sale from MCA. That line could just be all over the place and very lumpy. So any color on how we should -- I mean, I think for full year 2020 you did about $58 million. How should we think about that going forward?
So I think that it hit its peak in the second quarter. And like I said in my commentary that's where we are all taking advantage of the premium pricing. It hit the peak in the second quarter. It was a little bit less in the third and then a little bit less in the fourth. So I think that the fourth quarter is probably a...
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A
a59c183738f116a0d6bad13194df1f60
Hey, Julie. How are you doing? Just to kind of follow up on Brady's question around the bond portfolio. It looks like the yield stayed pretty stable linked quarter at around $144 million. I was thinking you maybe buying stuff in the low-ones [Phonetic], but just kind of curious kind of how that's changed and kind of wh...
Yeah. So -- yeah, I think we will slow down a little bit. I don't think that we're going to -- we're cautiously evaluating that now. I don't think you'll see much change in the rate if we do a little bit more. But again, I think we're going to -- we're going to pause on that as we kind of evaluate Rob's strategic objec...
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B
b6719aa12e7ba47229cfc5cf0b96815c
Okay. Great. And then just in terms of the warehouse. Just curious kind of what the participation number was this quarter. I know you're probably not going to give a lot of guidance for '21. But just kind of want to think about what -- maybe you could call back in to maybe offset some of the natural maybe slowdown we s...
So we have a little over $1 billion. I think it's probably $1.2 billion or $1.3 billion at the end of the year. So, yes, that would all be available to -- the commitment level is a little bit higher than that but outstanding at the end of the year was about $1.2 billion. So that's absolutely available to bring back on ...
intermediate
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B
ce3440e95e1963f69e598e8f338687e8
Okay, great. And then just one kind of final housekeeping, I apologize if I missed this in the release. But the tax rate was maybe a little higher in the fourth quarter. Was there something specific going on there or just making more money and kind of that rerated higher. Is there something else going on in the tax rat...
Yes. Well, that has to do with losing money for the first six months of the year and the rate on the permanent items. So, yeah, that was a little bit higher. I would expect 2021 goes back to a more normalized rate.
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A
ee2f485684473a8a774d9ee3adc4c867
Thank you. Good afternoon. Just wanting some more color on your expense guidance. I think you said it would be flattish this year year-over-year but you want to continue doing hiring. Can you just talk about what your hiring objectives are and kind of what the puts and takes are on the expenses for this year, Julie? Th...
Yeah. So what I said with our preliminary plan and that's preliminary free raw plan is kind of flat to down a little bit, but we will certainly be evaluating that as Rob joins us next week. So the hiring -- and that included -- the flat to down included some expected hiring of bankers. I think that's probably been -- w...
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B
1583a99982412439e937ad3a29554a9b
Okay. So you would think that you would hire at least the number of people that you hired in 2020 this year?
Well, I mean what we -- what I've said was we hired 10 C&I bankers in the last six months. Again there is a pipeline for more talent. But I think it's premature for Larry or I to tell you how many bankers we think we'll hire. We'll wait and let Rob talk to you about that.
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B
8ecb4c1ad5c9d47e59a24e35ca60163d
Thank you. Would you please discuss the $5.7 million of energy loan recovery in the fourth quarter?
Yeah, Bill. That was just related to a previous charge-off that we took where there were some recovery based on -- yeah, that's kind of all there is to say. It was a deal where there was a previous charge-off and we knew there might be some recoveries and they come through. I don't know JT anything else to add? Yeah. ...
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A
d9198b0b688f2243000635c129c8a3f6
And if we were to want to take it one step further and have the presumption or the hope that higher crude oil and natural gas prices would actually help with future recoveries and/or take some of your current non-performers in the energy arena and move them out of those buckets. So is that something that you're thinkin...
I think I would say that -- I don't think there's going to be recoveries. I don't think there -- I don't think that the current commodity pricing would affect future recovery. Certainly the overall book is more stable with prices at this level. Yeah. It certainly factors into our reasonable and supportable forecast ...
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A
c159a7b247e10f68172898aa180e0624
No worries. And then last question. You mentioned the provision going forward will be down and '21 will be down from '20. That's a little bit of an easy hurdle. Let me ask it in a slightly -- the question in a slightly different way. How do you view the provision going forward relative to the second half of 2020?
Yeah, this is JT here. The way that I would -- the way that I would describe it is the next few quarters are going to be extremely telling. Depending on the asset class the recovery is quicker or elongated. Commercial real estate being the prime example where if you look at peak to trough on commercial real estate base...
intermediate
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B
9893f7dd11e09e73de9c09b07297fcfe
Yeah. Thanks for taking the question. I wanted to circle back on the discussion around liquidity and I believe the average overnight liquidity position was down a little bit but still around 30% of earning assets. You've talked about over time kind of moderating this. How much realistic opportunity is there to bring th...
So we're focused on optimizing the funding stock and so certainly there is some actions that we will take to reduce exposures to some of the index deposits. And that's going to happen over time, Matt. That doesn't happen quickly, but definitely there are already actions in motion to reduce some of those higher beta dep...
intermediate
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B
811ca841132d826a8ac31707a31d749f
Okay. Got it. Thank you. And then on the loan yield side, the LHI loan yields were -- it was impressive in the quarter. I think you said it includes some higher fees even outside of PPP. Can you quantify what the quarter-to-quarter change was in the fourth quarter?
Yeah. I mean we don't like to -- I don't like to get into specifics about that. So there was -- I guess what I would tell is there I would expect first quarter LHI yield, there could be some compression there. We will still have some impacts from fees. And then just the pipeline for some new deals and related fees is g...
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C
cb8d60891a39c7555bedb96d82f11578
Got it, OK. And then just lastly, you mentioned the expectations for expenses kind of flattish from here, if not down a little bit. What's the starting base that we need to start from for that assumption?
Normalized for this year. The normalized for this year, which is -- yeah -- yes in 2019, yeah, normalized of about $600 million.
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A
4a228d10cf3a586a520e60bb3c893a18
Okay. So $600 million is the starting point for the -- The flat to down commentary. Okay.
Yes. Yeah, because that's pretty much in normalized for 2020.
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A
cfcf3ad5972023b7497472f051887cf7
As you think about 2021 and beyond, I know that data has been an important new game changer of what the business model is going to include to inform you. What are you looking forward to glean that will help you with data to drive the business in 2021? And then on inventory levels, what are you seeing, how you planning ...
On the data front, what I can tell you as our focus in 2021 is getting all over our internal data. It's organizing it, mining it and using it to inform how we can impact really all levels of our P&L. We see data as a great place to start in terms of understanding how we can study all our expenses, and all of our infras...
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B
354584487e1220e5fef76115a036a787
Pam, if you look at the expense structure of the business in 2021 and the opening of new stores, is there opportunity -- what are you seeing in terms of occupancy costs as compared to previously as you've opened stores? Is there opportunity on the occupancy costs, given what we hear out there?
Thanks, Dana. Thanks to our strong relationship with our landlords, last year we were able to secure abatements and deferrals and along the way we renegotiated renewals and extended options at terms that made good sense for us in the current economic landscape. So from a headwind perspective, I think we're in pretty go...
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A
75d4d56e83add41bd584959b85a2dc4a
I wanted to start by just giving a little bit more color here on quarter-to-date given the noise around store closures and so forth. You noted that through March 7 last year, I think, comps were up 3.1%, I believe you said. Wanted to see if we use that as a benchmark? It said that you're performing above expectations. ...
While I can't share any specifics, what I can share is there are lots of puts and takes in Q1. Now, I'll go through a couple. The biggest one is tax refund shifts, which prior years or earlier, as we all know, they're kind of dribbling out this year and that's changed the curvature of our sales results in Q1. And we pl...
intermediate
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B
5596c5a30fff2e9937c1a7aadadadba7
Just to hone in on that a little bit more in terms of thinking about 2019 as a benchmark kind of your -- the AUVs that you were running in Q1 of that year, it seems based on our checks like, trends have been very strong. And you've got, as you noted, Easter, you've got stimulus money that's going to be come in as well....
Quarter-to-date, well, not exactly, because again the different shifts -- '19 is not a perfect sister year for Eastern tax timing. So can't say that they were exact or above. But again, in our modeling when we kind of try to account for all those moving parts, we are trending in a direction that gives us confidence tha...
intermediate
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B
816f972911702d01486f195970c8c43c
I wanted to shift into your product optimization. You had some really successful new partnerships with the Jordan Brand, Tommy Hilfiger last year. Can we expect more of that new brand additions? Anything that you can share with us now, but how you're looking at that initiative here in 2021?
Sure. Happy to shed a little light on that. What I'd start with is our assortment is grounded in a really nice combination of private label brands, most of which are developed for our specific customer of mine. And then we do our best to enhance the assortment with the right level of brand penetration in all our catego...
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15d812e080cdd342156466c996b50eda
And if we could just hone in on the private label as kind of a percent of your mix in 2020. Can you kind of give us a range of where that is, and where you expect it to trend here over the next year or two?
Sure. Yeah. What I would tell you is, it's the bulk of our volume. I'll kind of leave it at that. Greater than 50% read into that. And it remains really the lifeblood of what we do. And so while we'll always have brands as part of the mix, it's these unique vendor relationships that we maintain with hundreds of vendors...
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B
84460b6ff5e4534e6449be6ef8ba14ed
What was your marketing spend as a percent of sales in '20? And what do you expect it to be kind of moving forward here in 2021? And then as a follow on to that, in terms of potentially looking at any type of loyalty program, or are there other ideas to potentially gather additional customer data to serve your customer...
Sure. Thanks, Jeremy. Yeah, absolutely. On the marketing front, I'll leave it at, it's pretty immaterial in 2020. In '21, it's really what I call maintenance level of marketing spending, most of it driven by store signage, and then a small smattering driven by a paid digital social media marketing. So we're -- I'd call...
intermediate
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B
837fb4054702183910c28eea2077674d
Your gross margin performance has really been exceptional. It's now kind of third straight quarter that you've seen at least 300 basis points of margin gains year-over-year. It looks like you've just seen a little bit of a step-up in that, and I know that's because of the changes you've made on turning your inventory f...
Yeah, good question. We don't give all the specifics there, but what I can share with you directionally is markdowns were in double-digit range in '19 and prior. And we certainly are now looking at single-digit range in '20, and we're -- we do everything in our power to keep them in single digits sort of the future. We...
direct
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A
83b0c7665a256d357d87a95161137696
And then is it fair to assume that based on your EPS guidance for the year, it looks like you're -- it's embedding operating margin over 4%. And my view on that is, I'm assuming that maybe your gross margins are going to be close to what you did in 2020, or possibly even a touch better? Is that a fair assumption?
Yeah, that's a fair assumption. We expect to continue our trend of high-30s, low-40s.
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A
799aa176d1dd265b1ce92b2a93b33cd0
Just dialing in a little bit following on Dana's question on basically the unit economics and looking at store growth and that type of thing. This productivity curve that you have that's work in the model basically better merchandise, less markdown, better sell through. As you look at that, and when you're in the real ...
Yeah, great question. Absolutely. I think that the line of sight we have, thanks to some amazing learnings. And the transformation in 2020 has actually changed to your point [Technical Issues] real estate meetings, and how we're going about site selection. In a couple of calls ago, we talked about enhancing the data po...
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A
6a9c8ac2e9ef4a72cd4c7541d1578d05
Have you given any information on what it cost David to do one of these remodels. And I assume when you do one of those, and you get the comp increase that probably a pretty high use of cash to do those remodels with a big high ROI on that?
Yeah. You're right on. We're looking at it from a payback curve potential and we do really the following. We figure out how we can do the right level of remodel depending on the age and condition before. We then try to negotiate with the landlords to get either renewal [Phonetic] or revised term, and do the remodel sim...
intermediate
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B
159920cbf165729b9425979a9fa00ab7
At APUS, can you talk about the strategy for how you'll continue to better serve active duty military and veterans? What do you need to do to sustain improved growth there and what dynamics have you seen in terms of the per learner engagement and courses taken within those population?
We're really excited about the active duty military segment for a couple of the things that you called out first of which is that we believe that there is room in the two reimbursement that they currently enjoy, to be able to take additional course registration down that they do today. So we see organic growth from the...
intermediate
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B
e44363ef24791ee8b94a6839161fbfea
Clearly really strong growth acceleration over the last year. I know you're only providing guidance for the first quarter. But can you maybe frame at a high level how you're thinking about growth over the remainder of the year, especially as you are facing tougher comparison starting in the second quarter for both APUS...
Yeah, we are going to stick with our one-quarter metric, but I would say -- and the comps do get more challenging. Obviously, we're going to have a more challenging comp in the second quarter. But the things that we're doing, and we just described short list for the military, have enduring value and they're going to co...
intermediate
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B
dcaef22b0ec6f7ba40359a7ad206dc10
Just real quick on Hondros, just given the momentum and it continuing into the first quarter, how should we be thinking about what is the capacity? And are you going to eventually run into some capacity constraints at Hondros in terms of, I guess -- total number of students?
Sure. Thanks for the question. I'll start and then Rick if there's anything you'd like to share. So one of the -- you hate to really say that anyone is benefiting from the impact of COVID. But one of the things that the COVID pandemic has done for Hondros is really driven a lot of operating efficiencies in the delivery...
direct
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A
36c70867d3793e3e2d6c1a6db6c72866
I just had a couple of questions on the new course registrations. Is there a sort of a break down if military did better than veterans or civilians? Any color there?
Thanks for the question, Raj, and thanks for the accolades. So I'll share perspectives on the interest level and then I'll turn it over to Rick for any kind of additional commentary. We're seeing a favorable momentum for our military affiliated in associate's degrees, bachelor's and master's degrees. And we're seeing t...
intermediate
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73eeb368b4d880b069194896fbaf77e0
And -- thank you. And then sort of is this the outlook and the rise in starts here largely you think a result of the improved marketing and sort of the micro targeting that you're talking about, Angie, or is the uncertainty in the economy playing any part here?
I think -- we think it's a combination of many factors. Certainly the marketing, we're trying to be very deliberate about the students that have the attributes that we see of high persisters an completers. Number two, we see that the -- I believe 88% of our students are working adults. And so we believe that career ad...
intermediate
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B
cbbdf94eb7c3494fa6ab9ccbf7cb9fc6
Got it. And then I may have missed the -- you were talking -- you talked -- you spoke just briefly on the 90-10 reclass -- the reclassification. So just to confirm your numbers would -- including military and veterans, would be under 90%.
That is right. Assuming [Indecipherable] remains as it is calculated today, applying the same methodology as exists today, yeah, we are under 90%.
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c368b7025388a506f981de6df316590d
Got it. And then there has been a lot of talk by the administration making community colleges free. Could you kind of touch upon a little bit what the impact of that on your starts and registrations would be?
Sure. Again I'll turn to Rick [Phonetic] for any additional commentary. Typically that community college student isn't necessarily our target market, right. Again 88% of students are adult -- learners who are working adults and oftentimes the community college structure just doesn't work now. So community college is t...
intermediate
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