New normal declared and staffed: management says the company's recent level of business has become its new baseline, and
The model's full reasoning — Q3 2022 call → NOWe need to determine if management conveys that the level of business has become the new normal, and that they are operating to that level now. The transcript shows VITAS and Roto-Rooter results. For VITAS, they mention expansion of staff, hiring and retention program, and that they are seeing growth in admissions and census. They say "This is the most encouraging set of emerging green shoot growth metrics we've seen since the start of the pandemic." They talk about expanding clinical staffing and capacity. They also mention that the retention program is a bridge to normalcy. However, they also note that the pandemic disruption persists, and they are still recovering. They don't explicitly say that the current level is the new normal; they are still recovering from pandemic lows. For Roto-Rooter, they mention strong demand and cost control, but they also note that Q3 is typically the most difficult quarter and they expect sequential seasonality. They don't frame it as a new normal. The question asks if management conveys that the level of business has become the new normal and that they are operating to that level now. The transcript shows they are still in recovery mode, with staffing shortages and pandemic disruption. They are not saying that the current level is above their recent norm and is now the baseline. They are still trying to get back to pre-pandemic levels. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
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| GRBK | Green Brick Partners, Inc. | Q3 2023 | 2023-11-01 | B |
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| CME | CME Group Inc. | Q2 2022 | 2022-07-27 | B |
| OGI | OrganiGram Holdings Inc. | Q3 2022 | 2022-07-14 | B+ |
| KFY | Korn Ferry | Q4 2022 | 2022-06-22 | B |
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| EVBN | Evans Bancorp, Inc. | Q4 2016 | 2017-02-06 | B+ |
UAL · Q4 2022 → YESThe question is: Does management convey that the LEVEL OF BUSINESS THE COMPANY IS NOW DOING HAS BECOME ITS NEW NORMAL — that activity which would recently have been exceptional is now the company's cu...YES The transcript shows management framing the post-pandemic operating environment—higher margins, sustained demand recovery, capacity constraints, and investments in staffing/technology—as the new baseline for United's business. Scott Kirby explicitly states that structural changes have set the industry (and United) up for higher margins than pre-pandemic levels, with United achieving 9% adjusted pre-tax margin in H2 2022 ahead of schedule and expecting to hit it again in 2023. They describe current activity (e.g.
CRL · Q2 2022 → YESThe question is whether management conveys that the current level of business has become the new normal, meaning activity that would recently have been exceptional is now ordinary, and they're doing r...YES The transcript shows management framing the elevated activity in Safety Assessment (DSA segment) as the new baseline: backlog "well above the prior year level," "significantly above prior year levels," "unprecedented demand," "never seen this sort of commitment that far out with better pricing," and "large portion of 2023 revenue already booked.
DAL · Q2 2023 → YESThe question is: Does management convey that the LEVEL OF BUSINESS THE COMPANY IS NOW DOING HAS BECOME ITS NEW NORMAL — that activity which would recently have been exceptional is now the company's cu...YES The transcript shows management framing the current performance as the new baseline: record revenue and earnings, "highest quarterly earnings result in our history," "moves Delta beyond recovery and firmly on a great path forward," and executing ahead of the three-year plan with raised full-year guidance.