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 — Q4 2022 call → NOWe need to determine if management conveys that the level of business is now the new normal, with both halves: (1) higher level already real, framed as new baseline; (2) company operating to that level now. Let's examine the transcript. Management discusses strong leasing in Q4 2022, record net effective rents, expansions, etc. They mention 2022 was a strong year, signed 1.5 million square feet of new leases, most since 2014. They talk about the portfolio being resilient. They also discuss the development pipeline, acquisitions, etc. But do they frame this as a new baseline? They say "We had a strong end to a strong year" and "solid leasing" but they also note headwinds for 2023, such as higher interest rates and lower occupancy due to Tivity move-out. They provide guidance for 2023 FFO below 2022. They don't seem to say that the current level of leasing activity is now the new normal. They mention that leasing activity is off to a good start in Q1, but they also say it's a lot of smaller deals. They don't explicitly say that what used to be exceptional is now routine. They also discuss dispositions and acquisitions, but that's not about the level of business. The question is about the level of business (orders, customers, volumes, etc.) being higher and framed as new baseline. Management does not seem to say that. They talk about strong leasing but also note that 2023 will have headwinds. They don't say "this is our new normal" or anything like that. They also don't describe present-tense work to serve a higher level beyond normal operations. They mention development pipeline, but that's ongoing. So answer is NO. We need to be careful: The question asks if management conveys that the level of business is now the new normal. They don't. They treat 2022 as a strong year but not as a step-change. They also have guidance for 2023 that is lower. So 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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| PFIE | Profire Energy, Inc. | Q1 2023 | 2023-05-13 | B |
| KE | Kimball Electronics, Inc. | Q3 2023 | 2023-05-06 | C+ |
| DKS | DICK'S Sporting Goods, Inc. | Q4 2022 | 2023-03-07 | B |
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| UAL | United Airlines Holdings, Inc. | Q4 2022 | 2023-01-18 | B |
| PKOH | Park-Ohio Holdings Corp. | Q3 2022 | 2022-11-13 | B |
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| OGI | OrganiGram Holdings Inc. | Q3 2022 | 2022-07-14 | B+ |
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| HLIO | Helios Technologies, Inc. | Q1 2022 | 2022-05-10 | C |
| CCRN | Cross Country Healthcare, Inc. | Q1 2022 | 2022-05-04 | B |
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| LC | LendingClub Corporation | Q4 2021 | 2022-01-26 | A |
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| HNRG | Hallador Energy Company | Q3 2021 | 2021-11-09 | C+ |
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| ASAN | Asana, Inc. | Q2 2022 | 2021-09-01 | B+ |
| OWL | Blue Owl Capital Inc. | Q2 2021 | 2021-08-10 | B+ |
| ANIP | ANI Pharmaceuticals, Inc. | Q4 2016 | 2017-03-02 | B+ |
| 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.