Better business coming in than going out: management describes the quality of new intake visibly exceeding what it is re
The model's full reasoning — Q1 2022 call → NOWe need answer YES or NO based on transcript. Need determine if management conveys that business taking in right now is visibly higher quality than business finishing/replacing, and that as old rolls off and new becomes bigger share, results improve on strength of business already taken in. We need examine transcript. Management discusses leasing activity, occupancy, rent roll-ups/downs. Need see if they contrast new leases vs expiring leases in terms of quality/economics. They mention some renewals with rent down, some new leases with rent up. But question asks "business the company is TAKING IN RIGHT NOW is of visibly HIGHER QUALITY than the business it is finishing, replacing, or letting run off" - i.e., new incoming business better than old. In office REIT context, leasing new space at higher rents vs expiring lower rents, or signing better tenants, longer terms, etc. Need see if management conveys that. Transcript: Doug says "We are moving quickly and confidently to lease up our portfolio." He gives examples: 77 CityPoint recapture and release 73k sq ft, new 7.5-year lease with 15% net increase in rent. 140 Kendrick Street: 105k sq ft lease for space expiring Nov 22, plus 2 other tenants for remaining 80k, all with rent roll-ups of about 40%. 880 Winter Street signed 45k, 180 CityPoint 140k. Boston CBD small transactions: 7 deals 47k, average markup 17% cash. New York: Perella Weinberg renewal at GM 125k until 2040, mark-to-market on new lease involved relocation to lower contiguous floors, rents down about 7%. 601 Lexington extension/expansion 330k, rent on block down about 7.5%. 510 Madison renewal 70k, cash rent down 10%. San Francisco CBD: 10 leases 104k, cash rents increased by 25%. Mountain View 50k. Northern Virginia: small deals, rents held up. So there is mixed: some renewals down, some new leases up. But overall, management emphasizes strong leasing, occupancy gains, backlog. Do they convey that incoming business is higher quality than outgoing? They mention rent roll-ups in some cases, but also rent roll-downs in New York. They don't explicitly say overall new business is better than old. They talk about "flight to quality" in market, but not necessarily their own incoming vs outgoing. They mention "premium quality workspaces" and "best buildings" but that's about portfolio.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| ASB | Associated Banc-Corp | Q1 2024 | 2024-04-25 | A |
| GIII | G-III Apparel Group, Ltd. | Q4 2024 | 2024-03-14 | C |
| ALL | The Allstate Corporation | Q3 2023 | 2023-11-02 | C+ |
| SPT | Sprout Social, Inc. | Q2 2023 | 2023-08-04 | B+ |
| BRX | Brixmor Property Group Inc. | Q1 2023 | 2023-05-02 | A |
| OEC | Orion Engineered Carbons S.A. | Q4 2022 | 2023-02-17 | B+ |
| BBD | Banco Bradesco S.A. | Q3 2022 | 2022-11-09 | D |
| GFS | GLOBALFOUNDRIES Inc. | Q3 2021 | 2021-11-30 | A |
| KTB | Kontoor Brands, Inc. | Q3 2021 | 2021-11-04 | A |
| CYBR | CyberArk Software Ltd. | Q3 2021 | 2021-11-04 | B+ |
| EHTH | eHealth, Inc. | Q2 2021 | 2021-07-29 | F |
| ADSK | Autodesk, Inc. | Q3 2019 | 2018-11-20 | A |
| GECC | Great Elm Capital Corporation | Q3 2018 | 2018-11-13 | B |
| CUBI | Customers Bancorp, Inc. | Q3 2018 | 2018-10-26 | C+ |
| T | AT&T Inc. | Q3 2018 | 2018-10-24 | C+ |
| ESS | Essex Property Trust, Inc. | Q2 2018 | 2018-08-03 | B+ |
| MKC | McCormick & Company, Incorporated | Q2 2018 | 2018-06-28 | C+ |
| ALLY | Ally Financial Inc. | Q1 2018 | 2018-04-26 | B+ |
| ATI | Allegheny Technologies Incorporated | Q1 2018 | 2018-04-24 | B |
| HSTM | HealthStream, Inc. | Q3 2017 | 2017-10-24 | C |
| MTG | MGIC Investment Corporation | Q3 2017 | 2017-10-18 | B+ |
| BLKB | Blackbaud, Inc. | Q1 2017 | 2017-05-02 | B+ |
HSTM · Q3 2017 → YESThe question is about whether management conveys that the business they're taking in right now is of visibly higher quality than the business they're finishing or letting run off. YES The transcript shows management explicitly contrasting incoming business against outgoing: - Patient Experience: "Existing clients also continue to convert from a phone modality to email and SMS text surveying modality... This conversion trend to continue... expected to have a positive impact... on patient experience margins." (lower price, higher margin shift already happening) - Provider Solutions: "the move from installed software sales to software as service sales... challenge revenue growth... but not profitability growth" and "backlog of unimplemented customers... significantly reduced" - Laerdal/HeartCode: "the new product we believe is right now based on contracts.
GFS · Q3 2021 → YESThe question is about whether management conveys that the business they're taking in right now is of visibly higher quality than the business they're finishing or letting run off. YES The transcript shows management explicitly contrasting the incoming business with the outgoing: compute revenue is declining "as expected" due to customers shifting to smaller nodes, while "newer high-margin customer designs" are ramping in 2H 2022 to offset it. They tie this directly to mix improvement from "d differentiated solutions become a larger portion" and "feature-rich" platforms (FDX, RF SOI, silicon photonics) growing while feature-rich CMOS is flat or down. LTAs signed now carry "pricing improvements" baked in for 2022+, with new agreements committing future capacity at those better terms.
CYBR · Q3 2021 → YESThe question is about whether management conveys that the new business they're taking in is of higher quality than the old business they're replacing, and that as the old rolls off, results will impro...YES Management explicitly contrasts the incoming subscription business (new logos, SaaS bookings, Privileged Cloud, EPM) as higher-quality than the outgoing perpetual license business it is replacing. They describe it as delivering “faster type of value,” “higher lifetime value over time,” and “more users and more products faster ,” while noting that the current revenue and profitability headwind from the mix shift is “obscuring the P&L” and that results will improve once the transition completes.