Miscellaneous Earnings Call Notes 3.4.16

Splunk (SPLK) Douglas Merritt on Q4 2016 Results

Amount of data will double ever two years through 2020

“Analysts estimate that between 2013 and 2020, the amount of data generated globally will increase tenfold, doubling every two years. That is why we firmly believe that by any measure of penetration, we are just getting started. ”


Clear Channel Outdoor’s (CCO) CEO Fred Davidson on Q4 2015

TV now reaches only 85% of US adults

“The other major trend is the much-publicized decline of TV usage as measured by Nielsen. According to Nielsen’s Q3 comparable metrics report TVs weekly reach continues to decline, now reaching only 85% of U.S. adult 18-plus and it’s particularly losing ground with the key millennial audience. By contrast, radio continues to reach 93% of all U.S. adults 18-plus.”

Only 3 in 10 millenials watch TV and 50% of 18-24 year olds don’t watch in prime time

“TVs weekly reach among millennials is only 73%, dropping into third, below broadcast radio at 92% and smartphones at 84%. In other words, today roughly 3 in 10 millennials don’t watch television. An incredible statistic. The picture is even bleaker with a younger audience. Only 50% of people aged 18 to 24 watch broadcast TV in prime time.”


Del Frisco’s Restaurant Group’s (DFRG) CEO Mark Mednansky on Q4 2015 Results

The upscale guest is spending more money

“contrary to popular belief, the upscale guest is spending more money. We see that at the Del Frisco’s brand, we see at the Sullivan’s brand. ”


Mitt Romney Donald Trump takedown speech

“If Donald Trump’s plans were ever implemented, the country would sink into a prolonged recession…His proposed 35% tariff-like penalties would instigate a trade war that would raise prices for consumers, kill export jobs, and lead entrepreneurs and businesses to flee America. His tax plan, in combination with his refusal to reform entitlements and to honestly address spending would balloon the deficit and the national debt. So even as Donald Trump has offered very few specific economic plans, what little he has said is enough to know that he would be very bad for American workers and for American families.”


Tutor Perini’ (TPC) CEO Ronald Tutor on Q4 2015 Results

Building markets stronger than ever in CA NY and FL

“Our Civil markets are continuing to grow as evidenced by the increased volume of bidding opportunities and we continue to maintain a significant part of that growth as we deliver the profits we expect. We believe the new highway bill will be realized in the near future and that should only add to the growth we expect. The building markets are stronger than ever in California, New York and Florida which are our primary building markets where several major projects are pending and we believe some significant announcements we will make in the next 60 to 90 days particularly in Florida.”


Dollar Tree’s (DLTR) CEO Bob Sasser on Q4 2015 Results

On track for a good first quarter

“As far as current trends, obviously we’ve finished one period out of the three so we still got two period to go on the quarter, but I’m pleased with where we are. It’s always — you usually get a weather report sometime in February and when weather was adverse, it wasn’t as good as we thought but overall we ended up with a good first period and on-track for a very good quarter. And frankly, I’m looking forward to a period of time when we don’t have those disruptions like we had last year from the port strike, and I think you can see in our inventory, we have the inventory that we should have had last year. We have that inventory this year, so my expectation is that we’re going to have a, we’re on track for a good first quarter. Easter’s a little early, the early Easters at Dollar Tree aren’t usually good, so we’ve said that’s a $10 million head wind. But at the end of the day, we’ve given you our first quarter guidance and any color on that is we’re on track.”


Medtronic’s (MDT) CEO Omar Ishrak on Q3 2016 Results

There were no economy related issue, but the anniversarying of the affordable care act did slow us down a bit

“Like I had mentioned in the last call, the three things that we look at in the U.S, one is one which we knew was going to slow things out a little bit was the anniversarying of the Affordable Care Act and that probably had a little bit of an impact. The overall procedure volumes based on the economy I think were more or less steady. I think in the Surgical Solutions maybe a slight drop in procedure volumes, but essentially it was steady. There was no economy related issues.”


Miscellaneous Company Notes 10.15.15

PrivateBancorp’s (PVTB) CEO Larry Richman on Q3 2015 Results

We see our clients remaining appropriately cautious

“Certainly our clients are mindful of geopolitical and other macroeconomic events and we see them remaining appropriately cautious. We are seeing our clients performing well and seeking new ways to build their businesses and this provides opportunities for us. The banking environment remains competitive in pricing and structure. It is important that we remain selective and disciplined. ”

Pressure points not manifesting in credit deterioration

“it’s really tough right now, Steve, to see where there is the next pressure point. You can point to various issues that all of us read about on the first page of the paper week-to-week that props up, whether it be energy, leverage loans, state of Illinois, all kinds of things that are out there, but we are just not seeing any of that at this stage really manifest into any systemic issues for us.”

LIBOR curves are not fun to look at

“I looked at the futures this morning for the 30-day LIBOR as they go out the end of 2016, the end of 2017 and they are not fun to look at.”

Credit quality is business as usual

“So we are at a very good place. I am very pleased with what I am seeing. I think the movement here is largely business as usual.”


Del Frisco’s Restaurant Group’s (DFRG) CEO Mark Mednansky on Q3 2015 Results

Restaurants affected by slowdown in energy economies

“comparable sales decreased 1.4% during the quarter, driven by lower guest count. The slowdown was partially related to the ongoing energy related issues affecting Texas and to a lesser extent Colorado, which together comprise a third of the brand’s comparable restaurant feed. ”

Lower cost of sales not enough to offset higher labor, operating and occupancy

“Lower cost of sales due to favorable prime beef costs and solid controls, was not offset enough for the higher labor, operating and occupancy expenses. ”

People want things a little quicker today

“today’s dining guests, unless they’re celebrating an occasion, or they want to linger a business meeting to have more time to discuss business, people want things a little quicker today and that’s one of the reasons we built the Grille brand…New cooking technology in the new stores has helped. We are starting to move some of that into the core group”


Colfax’s (CFX) CEO Matt Trerotola on Q3 2015 Results

Need to presume that markets would recover in 2017 at the earliest

‘ we’re seeing tough trends in the market and we think we need to presume that 2017 would be the earliest market base recovery. We’re going to be working hard also on our relative performance in those markets and trying to make sure that we perform as strongly as possible against that market backdrop.”

We’ve seen some more challenging trends on the oil and gas front

” recently we’ve seen some more challenging trends that are on the oil and gas front. And so we’re trying to — that’s one of the number of things that have taken some of the proactive cost actions to make sure they we’re prepared for whatever might be coming in the future. But I can’t say more than that in terms of where things might go in that sector.”

Oil and Gas and Marine are two of the highest users of welding

“the highest users have welding having some significant cyclical downturn, the oil and gas and marine being two of the key ones there. And so that combination of factors on the external and the currency challenges really stacks up to be a significant portion of our challenges this year.”


First Republic Bank’s (FRC) CEO Jim Herbert on Q3 2015 Results

Big banks are getting more aggressive in mortgage lending

“Yes, Erika, they are getting more aggressive. They are cutting both pricing and to a modest extent, standards. Their loan-to-value advanced ratios up to $2 million or $3 million have climbed into the 80% range. We are not following them. And that’s the cause for us losing some business. But as you can see, the volume has held up pretty well in the quarter, we’re happy with them. So we’ll compete on price, but we will not follow a change in terms or conditions.”


KeyCorp’s (KEY) CEO Beth Mooney on Q3 2015 Results

We’ve called rates wrong

“In the past and we’ve called this wrong, we continue to expect that interest rates would be going up, say 12 months down the road and we haven’t seen that yet. And so we’ll continue to reassess and we have the flexibility to manage that overall rate risk position fairly quickly with the change in interest rate swap position.”

Achieved a lot of loan growth simply because we have more bankers than we did at this point last year

“On the Community Bank side, we have achieved a lot of loan growth simply because we have more bankers than we did at this point last year. We have made a significant investment in commercial bankers, putting more feet on the street and we’re starting to see dividends coming from those investments”

Capital markets deals got pushed out a bit

“clearly the disruption in the market in the last part of the third quarter caused some of our deals and probably everybody else’s deals to be pushed out a bit. So there’s no question.”


UnitedHealthcare Group’s (UNH) CEO Stephen Hemsley on Q3 2015 Results

Risk pool served by exchanges would require more medical services than originally expected, so raising prices

“Like others we observe market-wide data this past spring that suggested the risk pool served by public exchanges would require more medical services than original expectations. Rather than wait for our own experience with our new members to fully developed, we increased rates and repositioned certain products market by market for 2016, and we expect improved performance next year.”

Raising prices double digits

“Average increases across the country are in the double-digits, and we also took steps to eliminate some products and reposition other products.”