Citizens (NYSE:CIA) Conference December 11, 2025 03:10 PM ET Company ParticipantsJon Stenberg - President and CEOJeff Conklin - CFOModeratorWelcome back, everyone. We have an update from Citizens, Inc. It trades on the New York Stock Exchange under the symbol CIA. It's a diversified financial services company providing life, living benefits, and final expense insurance and other financial products to individuals and small businesses in the U.S., Latin America, and Asia. Happy to welcome President CEO Jon St ...

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Cryptocurrency Market Sentiment - Increasing capital inflow into $DOG is anticipated, potentially leading to organic growth and price appreciation [1] - @beyond__tech bridge is expected to provide more value to $DOG than top-tier centralized exchange (CEX) listings [1] - Overall market sentiment towards $DOG is bullish [1]

Summary of Fifth Third Bancorp Conference Call (November 07, 2025) Company Overview - **Company**: Fifth Third Bancorp (NasdaqGS:FITB) - **Headquarters**: Cincinnati, Ohio - **Assets**: Approximately $200 billion - **Segments**: - Commercial Banking - Consumer and Small Business - Wealth and Asset Management - **Profitability Metrics**: - ROTCE: ~18% - ROA: ~1.25% - **Deposits**: Non-interest bearing deposits constitute 25% of total deposits - **Valuation**: 10.5 times next year's earnings [1][1][1] Acquisition of Comerica - **Strategic Rationale**: - Fifth Third has historically focused on organic growth but sees the acquisition of Comerica as a strategic opportunity to enhance its retail and middle market banking capabilities [4][5][6] - The acquisition aims to leverage Fifth Third's strengths in branch building and deposit growth to enhance Comerica's platform for future growth, particularly in the Texas market [6][6][6] - **Cultural Alignment**: Emphasis on ensuring cultural alignment between Fifth Third and Comerica to facilitate integration and customer service [5][5][5] - **Growth Potential**: The acquisition is expected to create a pathway for growth over the next five to ten years, shifting the growth profile from a Midwest focus to include Texas [6][6][6] Integration Lessons from Previous Acquisitions - **MBFI Transaction Insights**: - Successful early appointment of regional leadership was crucial for retention and integration [9][9][9] - The importance of a longer integration window was highlighted, with plans for a seven-month window for the Comerica integration compared to a tighter timeline in the MBFI deal [10][10][10] - Emphasis on careful management of customer data and fraud controls during integration [12][12][12] Market Expansion Plans - **Texas Market**: - Plans to invest in 150 new branches in Texas by 2029, with a focus on Dallas and Houston [22][22][22] - The goal is to achieve a top five market share in key Texas cities [23][23][23] - **Southeast Expansion**: - Continuing to open new branches in the Southeast, with 50 planned for 2026 and a total of 200 by the end of 2028 [25][25][25] - The Southeast program has shown strong performance, with new branches exceeding deposit goals [26][26][26] Financial Strategy and Capital Management - **Balance Sheet Composition**: - Fifth Third aims to maintain a balance of retail deposits, targeting around 60% of funding from insured retail deposits [19][19][19] - The acquisition of Comerica is expected to help achieve a more balanced funding mix [20][20][20] - **Capital Plans**: - No material impact on capital plans from the acquisition; share repurchases are expected to resume shortly after the deal closes [33][33][33] - Targeting a CET1 ratio of 10.5% and maintaining a marked capital ratio above 9% [34][34][34] Regulatory Environment and Innovation - **Regulatory Changes**: - The current regulatory environment is seen as more conducive to facilitating acquisitions and innovation in the banking sector [46][46][46] - Fifth Third is positioned to leverage partnerships with innovative companies in the payments space [47][47][47] Direct Express Program - **Growth Opportunities**: - The acquisition will allow Fifth Third to own the BINs for the Direct Express program, simplifying conversion for participants [49][49][49] - The program is expected to benefit from the government's push towards digital payments, creating long-term growth opportunities [50][50][50] NDFI Lending Exposure - **Portfolio Overview**: - Fifth Third's NDFI portfolio is valued at $10.2 billion, with a focus on warehouse-related facilities and traditional corporate credit [54][54][54] - The bank has maintained a strong credit performance in its primary portfolios, with no credit losses in over a decade [56][56][56] - **Cautious Approach**: - The bank remains cautious about expanding into newer asset classes within NDFI lending, focusing on established partnerships [57][57][57] Conclusion - Fifth Third Bancorp is strategically positioned for growth through the acquisition of Comerica, with a focus on enhancing its retail and middle market banking capabilities while maintaining a strong emphasis on cultural alignment and integration. The company is also well-prepared to navigate regulatory changes and leverage innovation in the financial sector.

Financial Data and Key Metrics Changes - The company achieved a record third quarter performance with a 26% year-over-year revenue growth and a 19% increase in consolidated adjusted EBITDA [8][9] - Year-to-date revenue increased by 25.6% to $637.3 million, while year-to-date consolidated adjusted EBITDA rose by 35% to $92.3 million [26][27] - Positive GAAP net income of $8.4 million was reported, marking a significant turnaround from a net loss of $10.6 million in the prior year [27][28] Business Line Data and Key Metrics Changes - The Assessment, Permitting, and Response segment saw a 75% revenue increase to $91.1 million, driven by strong demand for non-response consulting and advisory services [31] - The Measurement and Analysis segment's revenue grew by 7.5% to $63 million, with adjusted EBITDA rising to $17.3 million, reflecting a 460 basis point margin improvement [32] - The Remediation and Reuse segment's revenue increased to $70.8 million, although adjusted EBITDA declined to $9.4 million due to losses from the wind-down of the renewables business [32] Market Data and Key Metrics Changes - The company noted that state and local governments are stepping in to fill gaps left by the U.S. Federal government, creating unexpected growth opportunities [12] - Increased industrial activity, particularly in the energy and mining sectors, is driving demand for the company's services [73] Company Strategy and Development Direction - The company plans to exit its renewable service line by the end of the year, reallocating resources to higher return opportunities [20][21] - Future growth is expected to be driven by organic growth of 7 to 9% annually, with EBITDA growth anticipated to outpace revenue growth [24] - The company aims to restart acquisitions in 2026, focusing on strategic fit and potential for outsized financial returns [24][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's prospects, citing strong client demand and the resilience of the business model amid external economic factors [10][13] - The company is well-positioned to capture growth from regulatory changes and increased industrial activity, particularly in the U.S., Canada, and Australia [73] Other Important Information - The company achieved a leverage ratio of 2.7 times and reported substantial available liquidity of $198.5 million [34] - Operating cash flow for the first nine months of 2025 improved by $65.3 million compared to the prior year, representing a 60.2% conversion of consolidated adjusted EBITDA [33] Q&A Session Summary Question: What drove the strong growth in the APNR business? - The growth was largely attributed to excellent cross-selling following emergency responses, with both structural and one-time sales contributing to the performance [36][39] Question: Can you elaborate on the water treatment business's positive outlook? - The water treatment business is experiencing healthy organic growth and margin accretion, driven by advanced technology applicable across multiple contaminants, not just PFAS [41][45] Question: What is the impact of the wind-down of the renewable services business? - The wind-down is expected to significantly reduce revenue, but excluding this impact, segment margins would be up year-to-date [51][55] Question: How will the acquisition strategy evolve moving forward? - The company plans to focus on larger assets with strong cash flow generation and is evaluating opportunities in international markets [62][63]

Core Insights - Twilio Inc reported strong third-quarter results, with revenue growth of 14.7% year-on-year to $1,300 million, surpassing expectations of $1,250 million, and earnings of $1.25 per share, exceeding estimates of $1.03 per share [1][2] Revenue and Growth - The company achieved 13% organic growth in the quarter, prompting management to raise full-year organic growth guidance to 11.3%-11.5% from the previous 9%-10% [2] - Twilio added 43,000 active customer accounts in the quarter, reflecting a 12.3% sequential growth and 22.5% year-on-year growth [2] Analyst Ratings and Price Targets - Needham analyst Joshua Reilly maintained a Buy rating and increased the price target from $125 to $145, citing increasing organic growth trends and strong profitability [3][5] - Rosenblatt Securities analyst Catharine Trebnick reiterated a Buy rating with a price target of $140, describing the results as "exceptionally strong" despite gross margin headwinds [3][5] Strategic Developments - The company demonstrated effective execution on key growth drivers, including closing a record nine-figure renewal deal encompassing messaging, voice, and software add-ons [4]

Core Insights - The company reported strong financial results for Q3, with consolidated net sales of $555 million, reflecting a 17% year-over-year increase [3] - Adjusted EBITDA for the quarter was $116.2 million, up 25% compared to last year, indicating robust operational performance [3] - The company raised its full-year adjusted EPS outlook to a range of $4.09 to $4.17, up from the previous range of $3.92 to $4.10, driven by healthy demand and strong order intake [30][31] Financial Performance - ESG's net sales for the quarter were $466 million, a 17% increase year-over-year [1] - Operating income for ESG was $85.3 million, up 19% from the previous year [1] - SSG's net sales reached $90 million, an 18% increase compared to last year [5] - Consolidated operating income was $94 million, reflecting a 24% increase year-over-year [3] Order Intake and Backlog - Total orders for ESG were $371 million, a 5% increase year-over-year [1] - Order intake for the company was $467 million, a 10% increase compared to last year, marking the highest third-quarter order intake on record [2][20] - Backlog at the end of the quarter stood at $992 million, down 4% compared to Q3 last year [2] Margins and Earnings - The adjusted EBITDA margin for ESG was 22.5%, up 60 basis points year-over-year [1] - GAAP diluted EPS for the quarter was $1.11 per share, a 28% increase from the previous year [2] - Adjusted EPS was $1.14 per share, reflecting a 30% increase year-over-year [2] Strategic Initiatives and Growth Outlook - The company is focused on multiyear growth initiatives, including investments in productivity-enhancing projects and capacity expansions [15][25] - The acquisition of Hog Technologies is expected to contribute between $60 million and $65 million in net sales in 2025, up from previous estimates [24] - The company plans to continue its "Build More Parts" initiative to vertically integrate parts production, aiming for increased recurring revenue streams [28] Market Conditions and Demand - Demand for products and services remains strong, with particular strength in publicly funded safety and security products [21] - The company expects orders within the Environmental Solutions Group to increase in Q4, consistent with seasonal patterns [21] - The transition from third-party refuse trucks to New Way is anticipated to impact backlog dynamics in the coming quarters [35]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $153 million, up 7% year over year, with EPS of $0.33, an increase of 22% year over year, and cash from operations at $29 million, all exceeding the midpoint of guidance [5][13][19] - Gross margins for Q3 were 53%, flat compared to the previous year, with expectations to remain above 50% for the full year 2025 [14][19] Business Line Data and Key Metrics Changes - MedTech and Specialty Audio segment revenue was $65 million, up 2% year over year, driven by increased demand in the specialty audio market [5][13] - Precision Devices segment revenue was $88 million, up 12% year over year, with strong growth across all end markets including medtech, defense, industrial, and EV [6][14] Market Data and Key Metrics Changes - The defense market showed particularly strong performance, with design wins and bookings outpacing other end markets [8][9] - Bookings in the Precision Devices segment remained strong, particularly in defense and with distribution partners, indicating normalized channel inventories [9][44] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom engineered solutions and deliver them at scale, positioning itself well for future growth [4][10] - The strategy includes expanding specialty film production and pursuing synergistic acquisitions while maintaining manageable debt levels [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering a period of accelerated organic growth, supported by strong design wins and a healthy backlog of orders [10][12] - The company expects organic growth rates at the high end of the stated range of 4% to 6% for the total company in 2025, driven by robust secular growth trends [10][19] Other Important Information - Cash generation from operations was robust, allowing for share repurchases of $20 million and a reduction in bank borrowings by $15 million [11][16] - The company has a strong balance sheet with liquidity exceeding $350 million, and exposure to tariffs is less than 5% of revenue [17][18] Q&A Session Summary Question: Specialty film capacity and demand outlook - Management indicated that specialty film revenue is expected to be in the range of $55 million to $60 million next year, with a backlog of $25 million to $30 million [21][23] Question: Design activity and growth expectations - Management expects MedTech and Specialty Audio growth in the range of 2% to 4%, while Precision Devices may exceed the high end of the 6% to 8% growth range [25][26] Question: Specialty film applications and follow-up orders - Specialty film is focused on pulse power applications, with emerging applications in defibrillators and radiotherapy, indicating strong future demand [32][33] Question: M&A environment and strategy - The company remains focused on acquisitions but is being disciplined, ensuring any acquisition makes strategic sense [37][38] Question: Book to bill ratio and palladium prices - The book to bill ratio for the Precision Devices segment was one for the quarter, with strong bookings and a high backlog [44] - Palladium prices have increased, but the company has pre-buys in place to mitigate impact on gross margins [41][42]