Summary of Collegium Pharmaceutical Conference Call Company Overview - **Company**: Collegium Pharmaceutical (NasdaqGS:COLL) - **Focus**: Chronic pain management and ADHD with five marketed products - **Revenue**: Expected to reach $780 million in 2025, representing a 24% year-over-year growth [1][3][11] Core Business Insights - **Flagship Products**: - Xtampza: Extended-release oxycodone with abuse-deterrent technology - Belbuca: Long-acting opioid using buprenorphine buccal film technology - Nucynta: Treats severe and persistent pain, including diabetic neuropathy - Jornay PM: Unique evening-dosed ADHD medication [2][3][11] - **Recent Acquisition**: IronSure in 2024, adding Jornay PM to the portfolio [2] Financial Performance - **Q3 2025 Results**: - Revenues: $209.4 million, up 31% year-over-year - Adjusted EBITDA: $133 million, up 27% year-over-year - Cash from operations: Nearly $80 million, total cash balance of $286 million [6][11] - **Debt Management**: - Net debt to adjusted EBITDA ratio down to 1.2 times, expected to be below 1 by year-end [7][12] Growth Strategy - **Three Core Pillars**: 1. Grow Jornay through strategic investments in sales and marketing 2. Maximize the value of the pain portfolio 3. Strategically deploy capital for business development, debt repayment, and share repurchases [4][12] - **Market Position**: - Jornay PM is the fastest-growing stimulant for ADHD, with a 20% growth in prescriptions [8][9] - Pain portfolio revenue growth: 10% for Belbuca and 2% for Xtampza in Q3 [11] Market Dynamics - **ADHD Market**: - Approximately 100 million prescriptions annually, with 90% being stimulant medications - Jornay PM has a unique evening dosing, leading to high differentiation and prescriber intent [7][8] - **Pain Management Market**: - Collegium's pain portfolio represents about half of the branded extended-release market - Minimal regulatory or clinical risks compared to peers [11][12] Shareholder Value - **Share Repurchases**: Over $220 million repurchased since 2021, with an authorization for an additional $150 million through 2026 [1][12] - **Future Outlook**: Confident in the strength and durability of the business, with robust revenue growth and strong cash flow generation expected [11][13]

Core Viewpoint - The company emphasizes its commitment to creating long-term value for shareholders and enhancing cash dividend levels and frequency [1] Summary by Relevant Sections Cash Dividends - The company has cumulatively distributed cash dividends of 614 million over the past three years, which accounts for 112.57% of the average annual net profit achieved during the same period [1] Stock Valuation - The company's stock price-to-book (PB) ratio has consistently remained at a favorable level compared to the industry [1] Stock Price Influences - The stock price performance is influenced by multiple factors, and investors are advised to invest rationally and manage investment risks appropriately [1]

Robert Buck, President & CEO Rob Kuhns, CFO THIRD QUARTER 2025 Published November 4, 2025 SAFE HARBOR Statements contained herein reflect our views about future periods, including our future plans and performance, constitute "forward- looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "will," "would," "anticipate," "expect," "believe," "designed," "plan," or "intend," the negative of these terms, and similar reference ...

Core Insights - The 2024 FCF Top 99 list was released on October 28, highlighting the free cash flow generation capabilities of A-share listed companies in China [1] - The report series, including CVA Top 50 and EVA Top 99, aims to reveal the shareholder value creation abilities of these companies [1] - The focus on free cash flow generation has led to the introduction of various index products linked to free cash flow by index companies [1] FCF Top 99 Summary - Guizhou Moutai (600519) and Focus Media (002027) share the highest net asset free cash flow return rate (FCFOE) at 0.361, up from 0.277 in 2023 [3] - Among the 16 companies listed continuously from 2016 to 2024, five are in the liquor sector, and two are in home appliances [3] - Gree Electric (000651) has seen a decline in ranking from a three-time champion to 8th place [3] Company Ownership Structure - The 2024 list includes 35 state-controlled companies, a decrease of 11 from the previous year, while non-state-controlled companies increased to 64, surpassing 60% [4] - The pharmaceutical manufacturing industry leads with 15 companies, followed by the beverage and refined tea manufacturing, and electrical machinery and equipment manufacturing with 12 each [4] CVA Top 50 Summary - The CVA Top 50 report indicates that only companies generating net profits or free cash flow exceeding the cost of equity capital create true shareholder value [5] - Among the 11 companies consistently listed from 2016 to 2024, five are in the liquor sector [5] - The number of state-controlled companies on the list decreased to 18, while non-state-controlled companies rose to 32, making up 64% [5] EVA Top 99 Summary - The EVA Top 99 list emphasizes that economic value added (EVA) reflects the true shareholder value creation by accounting for the cost of equity capital [6] - Chongqing Beer (600132) topped the list with an EVA return rate (EVAOE) of 0.297, while Guizhou Moutai ranked second at 0.235 [8] - The liquor industry dominates the top three positions in the EVA rankings [8] Long-term Trends - From 2016 to 2024, the liquor sector maintained a strong presence with six companies consistently listed, while the number of state-controlled companies decreased to 27 [9] - Non-state-controlled companies increased to 72, representing 72% of the total [9]

Financial Data and Key Metrics Changes - In Q3 2025, the company closed 1,217 homes at an average sales price of $672,000, generating $817 million in home sales revenue, exceeding delivery guidance [4][11] - Adjusted homebuilding gross margin was 21.6%, excluding $8 million of inventory-related charges, while adjusted net income was $62 million or $0.71 per diluted share [4][11] - The company ended the quarter with $1.6 billion in total liquidity, including $792 million in cash, and a debt-to-capital ratio of 25.1% [6][14] Business Line Data and Key Metrics Changes - Net new home orders in Q3 were 995, with an absorption pace of 2.2 homes per community per month [11][12] - The absorption pace varied regionally, with the West at 2.3, Central at 1.8, and East at 2.8, indicating stronger performance in the DC Metro and Raleigh divisions [12] Market Data and Key Metrics Changes - Market conditions remained soft, with homebuyer interest muted due to slow job growth and economic uncertainty [6][10] - The company anticipates that home shoppers will re-engage when conditions stabilize, leading to normalized absorption rates [6][10] Company Strategy and Development Direction - The company is focused on inventory management, disciplined cost control, and increasing the mix of to-be-built homes over time [7][9] - It aims to grow community count by 10% - 15% by the end of 2026, with significant expansion in central and eastern regions [8][9] - The strategy includes investing in well-located land positions near employment centers and amenities, with over 32,000 lots controlled [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite near-term uncertainties, emphasizing a disciplined approach to capital allocation and shareholder returns [10][16] - The company expects to deliver between 4,800 and 5,000 homes for the full year 2025, with an average sales price of approximately $680,000 [15] Other Important Information - The company repurchased 1.5 million shares for $51 million in Q3, totaling $226 million year-to-date, reducing share count by 7% [4][5] - The company was recognized as one of Fortune's 100 Best Companies to Work For in 2025, reflecting its strong corporate culture [16] Q&A Session Summary Question: Monthly cadence of orders and incentives - The monthly cadence was consistent, with September performing slightly better than August, and incentives on deliveries were 8.2% for the quarter [18][19] Question: Sales pace floor and incentives - The company is focused on maintaining a sales pace between two and two and a half homes per community, with strong community count growth anticipated for 2026 [20] Question: Financial incentives breakdown - About a third of the 8.2% incentives were financing-related, including closing costs [24] Question: Average order ASP and future closings - The average order ASP decreased to approximately $654,000, and it is reasonable to expect closings ASP to align with this level [27] Question: SG&A guidance for Q4 - The SG&A guidance reflects better leverage due to higher revenue from increased deliveries, with no significant one-time items [30] Question: Gross margin expectations - The gross margin guidance is better than expected due to a favorable mix from strong margin divisions [31] Question: Spec inventory strategy - The company reduced total spec inventory by 17% quarter-over-quarter, focusing on a balanced approach moving forward [41] Question: Community count growth and pricing strategy - The company intends to maintain its premium brand positioning without significant initial pricing adjustments, focusing on value [44] Question: Affordable housing push - The company supports the administration's goal of increasing housing supply and is prepared to contribute through its community count growth [47] Question: Q4 starts and inventory management - Q4 starts are expected to be similar to Q3, with a focus on moving through existing inventory before normalizing strategies [59]

Financial Data and Key Metrics Changes - In Q3 2025, the company closed 1,217 homes at an average sales price of $672,000, generating $817 million in home sales revenue, exceeding delivery guidance [4][11] - Adjusted homebuilding gross margin was 21.6%, excluding $8 million of inventory-related charges, while adjusted net income was $62 million or $0.71 per diluted share [4][11] - The company ended the quarter with $1.6 billion in total liquidity, including $792 million in cash, and a debt-to-capital ratio of 25.1% [6][14] Business Line Data and Key Metrics Changes - Net new home orders in Q3 were 995, with an absorption pace of 2.2 homes per community per month [11] - The absorption pace varied regionally, with the East at 2.8, the West at 2.3, and the Central region at 1.8 [12] - The company invested approximately $260 million in land and land development during the quarter, ending with over 32,000 total lots [13] Market Data and Key Metrics Changes - Market conditions remained soft, with homebuyer interest muted due to slow job growth and economic uncertainty [6] - The company anticipates that home shoppers will re-engage when conditions stabilize, leading to normalized absorptions [7] Company Strategy and Development Direction - The company is focused on inventory management, disciplined cost control, and increasing the mix of to-be-built homes over time [7] - Long-term goals include scaling operations, growing community count, and increasing book value per share [8] - The company plans to end 2025 with approximately 155 communities and expects to grow community count by 10 to 15% by the end of 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating housing cycles and emphasized a focus on long-term growth despite near-term uncertainties [7][16] - The company is encouraged by new market expansions in Utah, Florida, and Coastal Carolinas, expecting meaningful growth beginning in 2027 [8][10] Other Important Information - The company repurchased 1.5 million shares for $51 million in Q3, totaling $226 million year-to-date, reducing share count by 7% [4][5] - The company was recognized as one of Fortune's 100 Best Companies to Work For in 2025, reflecting its culture and values [16] Q&A Session Summary Question: Monthly cadence of orders and incentives through the quarter - The monthly cadence was consistent, with September performing slightly better than August, and incentives on deliveries were 8.2% for the quarter [18][19] Question: Absolute floor for sales pace and incentives - Management indicated that the industry is landing between two and two and a half homes per community per month, with strong community count growth expected in 2026 [20] Question: Breakdown of financial incentives - About a third of the 8.2% incentives were financing-related, including closing costs [24] Question: SG&A guidance for Q4 - The SG&A guidance reflects better leverage due to higher revenue from increased deliveries, with no specific one-time items impacting it [30] Question: Gross margin guidance - The gross margin guidance is better than expected due to a mix of strong-performing divisions and increased incentives [31] Question: Spec inventory strategy - Approximately three-quarters of orders are running as specs, with a focus on balancing inventory and demand [40][41] Question: Community count growth and pricing strategy - The company aims for community count growth of 10% to 15% next year, maintaining a premium brand proposition without significant pricing changes [44]

Financial Data and Key Metrics Changes - In Q3 2025, the company closed 1,217 homes at an average sales price of $672,000, generating $817 million in home sales revenue [4][12] - Adjusted homebuilding gross margin was 21.6%, excluding $8 million of inventory-related charges, while adjusted net income was $62 million or $0.71 per diluted share [4][12] - The company ended the quarter with $1.6 billion in total liquidity, including $792 million in cash, and a debt to capital ratio of 25.1% [6][14] Business Line Data and Key Metrics Changes - Home orders in Q3 were 995 with an absorption pace of 2.2 homes per community per month [13] - The absorption pace varied regionally, with the West at 2.3, Central at 1.8, and East at 2.8, indicating stronger performance in the DC Metro and Raleigh divisions [13] Market Data and Key Metrics Changes - Market conditions remained soft, with homebuyer interest muted due to slow job growth and economic uncertainty [6][10] - The company anticipates that home shoppers will reengage when conditions stabilize, leading to more normalized absorption rates [6][10] Company Strategy and Development Direction - The company is focused on inventory management, disciplined cost control, and increasing the mix of to-be-built homes over time [7][10] - TRI Pointe is investing in core and expansion markets, aiming for a community count growth of 10% to 15% by 2026, primarily in Central and East Regions [10][12] - The company targets premium move-up buyers, emphasizing strong income profiles and financial stability among its customer base [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook despite near-term uncertainties, highlighting the company's operational discipline and financial strength [12][18] - The company is optimistic about community count growth and expects modest contributions from new market expansions in Utah, Florida, and Coastal Carolinas starting in 2027 [9][10] Other Important Information - The company repurchased $51 million worth of shares in Q3, totaling $226 million year-to-date, reducing the share count by 7% [5][12] - The company was recognized as one of the Fortune 100 Best Companies to Work For in 2025, reflecting its strong corporate culture [18] Q&A Session Summary Question: Can you provide some color on the monthly cadence of your orders and incentives through the quarter? - The monthly cadence was consistent, with September performing slightly better than August, and incentives on deliveries were 8.2% for the quarter [20][21] Question: Is there an absolute floor that you want to maintain on your sales pace? - The company is aiming for an absorption pace between 2 and 2.5 homes per community per month, with expectations for strong community count growth in 2026 [21][22] Question: How much of the 8.2% incentives were financial incentives? - About a third of the incentives were financing-related, including closing costs [26][27] Question: What is your strategy regarding spec homes? - Approximately 75% of orders are running as specs, with a focus on burning through excess inventory before moving to a more balanced approach [44][45] Question: How do you think about pricing strategy for new communities? - The company maintains a premium brand proposition and will price products appropriately based on market value, without significant material pricing changes [50][52]

Company Overview - CSX has undergone a significant leadership change with the replacement of Joe Henrik, who was seen as performing well, by Steve Angel, who is 70 years old and previously built Lindy [1][4][6]. Leadership Performance - Joe Henrik was recognized for his strong performance, including a notable Total Shareholder Return (TSR), and his departure was viewed as unjust by some stakeholders [2][4]. - The board's decision to fire Henrik is perceived as a panic response due to the lack of deals, despite Henrik's successful management [5][6]. Market Dynamics - There is speculation that the board was under pressure to initiate a deal, but the only potential buyer, Berkshire, is not interested in acquiring CSX [3][7]. - The current leadership transition raises questions about whether Steve Angel can maintain or improve the operational performance of CSX [5][6].

Core Insights - The investment approach focuses on identifying businesses with potential for long-term growth and significant terminal value generation [1] - Emphasis is placed on understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The analyst aims to provide accessible and analytical insights to help readers identify high-quality, long-term investment opportunities [1] Investment Strategy - The investment strategy is fundamentally driven, concentrating on sectors with strong secular growth trends [1] - The focus is on long-term free cash flow generation and shareholder value creation as key metrics for evaluating businesses [1] - The analyst has a decade of self-education in investment, currently managing personal funds sourced from friends and family [1]

Core Viewpoint - The event focuses on Babcock Marine's naval build and support capabilities, highlighting its significant contribution to the company's overall revenue and strategic importance in the defense sector [2]. Group Overview - Babcock Group is conducting a series of investor teach-ins to showcase its specialized capabilities and growth drivers, aimed at creating shareholder value [2]. - The naval build and support segment currently generates nearly GBP 1 billion in revenue, accounting for approximately 20% of the group's total revenue [2]. - The Devonport Royal Dockyard is identified as a national critical asset, providing unique technical support to the UK's nuclear submarine fleet [2].