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 — Q2 2022 call → NOWe need to determine if management conveys that the level of business has become the new normal, with both halves: (1) higher level already real, framed as new baseline, and (2) company operating to that level now. Let's examine the transcript. Management discusses loan growth, deposits, etc. Paul Perrault says: "I can't wait for people to stop buying our customers. This has been going on now. It feels like for over two years the originations were strong continue to be strong and I expect, it'll be that way into the future." That suggests strong originations are ongoing, but is it framed as a new baseline? He says "we are making some gain nonetheless" and mentions private banking capability. But does he say that what used to be exceptional is now routine? He says "We like to have at least $100 million a quarter of gain and this quarter we just came up slightly short" - that indicates a target, not necessarily a new normal. Also, he mentions "one company sale fit in there" - so the shortfall is due to a sale. That doesn't clearly indicate a step-up in the company's own recent experience. Carl Carlson discusses deposit declines, but that's not about higher level. He mentions expense growth due to talent competition, but that's not about business level. The question is about whether management conveys that the level of business is now the new normal. The transcript doesn't show management explicitly saying that what was exceptional is now routine. They talk about strong originations, but they also mention that they expected stronger growth. They don't frame it as a step-up from recent norm. They also don't describe present-tense work to serve a higher level beyond normal operations. There's no mention of adding capacity, etc. So answer NO. Thus, the answer is 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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| SPT | Sprout Social, Inc. | Q2 2023 | 2023-08-04 | B+ |
| IMAX | IMAX Corporation | Q2 2023 | 2023-07-26 | 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+ |
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| UAL | United Airlines Holdings, Inc. | Q4 2022 | 2023-01-18 | B |
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| EXFY | Expensify, Inc. | Q2 2022 | 2022-08-12 | D |
| CRL | Charles River Laboratories International | Q2 2022 | 2022-08-03 | C |
| 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 |
| HLIO | Helios Technologies, Inc. | Q1 2022 | 2022-05-10 | C |
| CCRN | Cross Country Healthcare, Inc. | Q1 2022 | 2022-05-04 | B |
| GTES | Gates Industrial Corporation plc | Q4 2021 | 2022-02-07 | C+ |
| LC | LendingClub Corporation | Q4 2021 | 2022-01-26 | A |
| LOW | Lowe's Companies, Inc. | Q3 2021 | 2021-11-17 | B+ |
| HNRG | Hallador Energy Company | Q3 2021 | 2021-11-09 | C+ |
| KTB | Kontoor Brands, Inc. | Q3 2021 | 2021-11-04 | A |
| 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.