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Core Insights - The E.W. Scripps Company has initiated a transformation plan aimed at enhancing operating performance and achieving annualized enterprise EBITDA growth of $125 million to $150 million by 2028 [1][2][3] Group 1: Transformation Plan - The transformation plan will focus on cost savings and revenue growth initiatives, utilizing technology such as AI and automation to improve revenue yield [1][2] - A team of 200 leaders has been assembled to implement the transformation, which aims to expand into new and profitable marketplaces [4] Group 2: Commitment to Programming - Scripps reaffirms its dedication to local and national news, sports, and entertainment programming, emphasizing the importance of connection for communities [2][4] - The company’s new vision, "We Create Connection," aligns with its founding mission and values, adapting them to modern operational principles [2][4] Group 3: Financial Outlook - Scripps anticipates that its financial performance in 2026 will be supported by significant mid-term election spending, the Winter Olympics, and World Cup competitions [2] - The company will provide further details on its transformation plan and financial expectations during its earnings call on February 26 [4]

Financial Data and Key Metrics Changes - Same property NOI grew by 4.2% for the year, with a fourth-quarter increase of 6% [9][15] - FFO for the year was at the high end of guidance at $2.25 per share, up 5.6% year-over-year [9][16] - Overall CapEx spending decreased by 14% year-over-year, the lowest since 2021 [11][19] - The expense recovery ratio reached a record 92.3% at year-end [12] Business Line Data and Key Metrics Changes - Small shop occupancy increased to a new high of 92.2%, contributing to the largest sequential overall occupancy gain in the company's history, up 100 basis points to 95.1% [10] - New lease rent growth for the year was 39%, while renewal rent growth was 15%, marking the third consecutive year of mid-teens renewal growth [11] - The company executed $70 million of new rent, fully replenishing that volume with another $70 million of net new rent [17] Market Data and Key Metrics Changes - The company acquired approximately $420 million of asset value in Houston, Southern California, and Denver, marking 2025 as the most active year for acquisitions [9] - The demand from high-quality tenants remains robust, with significant interest from grocers and retailers in the health and wellness sectors [10] Company Strategy and Development Direction - The company plans to remain disciplined but opportunistic in capital allocation, focusing on creating outsized value without relying solely on acquisitions for growth [9] - There is a strong emphasis on technology and analytics, with early initiatives in AI and automation yielding positive results [8] - The operational realignment from four to three regions continues to enhance efficiency and leasing execution [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the favorable fundamentals for open-air, grocery-anchored retail [7] - The company anticipates 4.5%-5.5% same property NOI growth for 2026, driven by expected base rent contributions [17] - The balance sheet is in the strongest position ever, supporting the business plan for consistent growth [14] Other Important Information - The company stabilized $183 million of projects in 2025 at an attractive 10% incremental yield [12] - The active pipeline at year-end totaled $336 million, with significant redevelopment projects planned [12] Q&A Session Summary Question: Guidance for bad debt this year - Management noted that the guidance of 75-100 basis points reflects improved tenant health trends and a strong underlying tenancy [23][25] Question: Acquisition environment and capital recycling - Management expressed optimism about the transaction pipeline and highlighted the importance of redeploying capital into higher-growth opportunities [30][32] Question: Same-property NOI guidance assumptions - Management explained that the guidance reflects ongoing execution and the compounding of rent commencements, with a focus on maintaining strong performance [38][40] Question: CEO initiatives and portfolio management - The new CEO emphasized the continuation of aggressive asset management and the use of technology to enhance decision-making [44][46] Question: SNO pipeline growth and tenant quality - Management indicated that the SNO pipeline remains robust, with strong demand from retailers and a focus on attracting high-quality tenants [68] Question: Ancillary income guidance for 2026 - Management highlighted the focus on maximizing revenue across properties, with a strong ancillary team driving income opportunities [71][74] Question: Disposition pipeline and market demand - Management noted strong demand for lower-growth assets, allowing for capital recycling into higher-growth opportunities [78][80]

Financial Data and Key Metrics Changes - For Q3 FY 2026, revenue was $17.5 million, slightly down from $17.6 million in the prior year period, while Adjusted EBITDA improved significantly to $2.5 million from a loss of $2 million in Q3 FY 2025, marking a notable turnaround [2][8][9] - Adjusted EBITDA margin was approximately 14.1%, reflecting a significant improvement from the previous year's negative margin [2][8] - Operating cash flow was positive for the third consecutive quarter at $2.4 million, indicating improved cash generation and stability in working capital [9][10] Business Line Data and Key Metrics Changes - The company reported strong delivery performance in India and Mexico, contributing to overall stability across its client base [2][3] - Automation initiatives have led to improved throughput and productivity, enhancing the operational efficiency across client programs [3][9] Market Data and Key Metrics Changes - The company continues to see strong engagement across the Private Equity ecosystem and multiple industry sectors, reinforcing its position and creating additional opportunities [4][5] - The nearshore presence in Mexico is scaling, with recent engagements further strengthening long-term positioning [4] Company Strategy and Development Direction - The company is focused on creating a predictable and efficient operating model, with a dual strength in its GCC delivery model and targeted AI execution [3][4] - Strategic relationships with clients are maturing into multi-year engagements across various business functions, highlighting the durability of client relations [5] - The outlook for fiscal 2027 anticipates revenue in the range of $80 million to $84 million, supported by multi-year contracts and ongoing program ramp-ups [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue and profitability profile for fiscal 2027, citing strong visibility from signed contracts and active program ramp-ups [6][10] - The company is increasing its full-year fiscal 2026 Adjusted EBITDA guidance to a range of $7 million to $8 million, reflecting strong operating performance and improved delivery utilization [9] Other Important Information - The company achieved its third Great Place to Work certification, indicating strong talent retention and engagement across core delivery locations [5] - The balance sheet remains healthy, positioning the company well for continued growth and improved profitability [11] Q&A Session Summary - The call concluded without a Q&A session, as indicated by the operator's closing remarks [12]

Add Designer Brands Inc. to the list of footwear and fashion firms conducting layoffs in early 2026. The DSW parent did a round of layoffs at the end of January, although it wasn’t immediately clear how many employees were impacted. Sources indicated that the layoffs were conducted across operations and brands. More from WWD “As we continue the progress we’ve made in advancing our strategies, last week we took actions to simplify our organizational structure, reduce complexity, and improve speed and acc ...

Core Insights - Cognizant and Ace Hardware celebrate their 25-year partnership focused on advancing innovation in hardware retail, e-commerce, and supply chain management [1][2][6] - The collaboration has significantly contributed to Ace's digital transformation, enhancing core systems and e-commerce capabilities [2][5] Partnership Achievements - Over the past 25 years, Cognizant has facilitated Ace's transition from legacy systems to SAP, improving e-commerce and supply chain tools tailored to Ace's cooperative model [2][3] - Recent initiatives include the rollout of Manhattan Warehouse Management across more than 10 distribution centers, aimed at enhancing warehouse efficiency [3] Digital Transformation - The partnership has led to the launch of a digital version of Ace's annual spring convention, showcasing the ability to deliver critical digital experiences under tight timelines [4] - Ace's e-commerce has experienced over 450% growth since 2019, highlighting the success of the partnership in driving online sales [5] Future Outlook - The collaboration is positioned to support ongoing modernization and innovation in retail, with a focus on AI and automation to meet evolving market demands [6] - Ace is already witnessing positive impacts from modernization efforts, aiming to enhance e-commerce and supply chain agility [6]

Core Insights - The company reported a GAAP earnings per share of $1.03 in Q4, reflecting a 9-cent increase year-over-year but a 1-cent decrease from the previous quarter, with expenses related to the Santander branch acquisition impacting results [1] - Operating earnings per share were $1.12, up from $1.00 a year earlier and $1.09 in the third quarter, indicating strong operational performance [1] - The company achieved record operating revenues of $215.6 million, a 4.2% increase from the third quarter and a 10% increase year-over-year, driven by net interest income growth [7] Financial Performance - Net interest income reached $133.4 million, up 4.1% from the third quarter and 11.2% year-over-year, marking the seventh consecutive quarter of NII expansion [8] - Operating non-interest revenues increased by 8% year-over-year and 4.4% from the third quarter, with non-interest revenues representing 38% of total operating revenues [9] - Total non-interest expense was $138.5 million, an 8% increase from the third quarter, primarily due to performance-based incentives and acquisition-related costs [11] Growth Strategy and Outlook - The company expects loan growth of 3.5%–6%, deposit growth of 2%–3%, and net interest income growth of 8%–12% for 2026, with plans for expansion through new branches and the ClearPoint acquisition [5][24] - Management highlighted the opening of 15 de novo branches in 2025 and aims to double deposits in these locations by the end of 2026 [15] - The acquisition of ClearPoint Federal Bank & Trust is anticipated to close in Q2 2026, which will enhance the wealth management business [17] Credit Quality and Expenses - The company recorded a provision for credit losses of $5.0 million in Q4, down from $6.2 million a year earlier, indicating stable credit quality [10] - Non-performing loans and net charge-off ratios remained consistent with the previous quarter, while the allowance for credit losses increased to $87.9 million [12] - Elevated expenses were attributed to performance-based incentives, acquisition costs, and branch consolidation activities [6][18]

Financial Data and Key Metrics Changes - The company reported a 16% growth in operating earnings for 2025, with a GAAP earnings per share of $1.03, reflecting a 9.6% increase year-over-year [3][11] - Operating earnings per share reached $1.12 in Q4, compared to $1 in the same quarter last year, and $1.09 in the previous quarter [11] - Total operating revenues for Q4 were $215.6 million, marking a 10% increase year-over-year and a 4.2% increase from the previous quarter [12][14] Business Line Data and Key Metrics Changes - The employee benefit services business saw a 10% increase in pre-tax income quarter-over-quarter, while full-year performance was in the low single digits [4][6] - Insurance services achieved 8% top-line growth and 42% operating income growth, with expectations of mid-single-digit growth into 2026 [6] - Wealth management services experienced a 15% growth in operating pre-tax income, with expectations for mid-single-digit growth in 2026 [6] Market Data and Key Metrics Changes - The banking business benefited from mid-single-digit asset growth and a 22% increase in operating income for the full year [5][6] - Loan growth was reported at 5% for the year, despite over $300 million in paydowns in the commercial business [5] - Total deposits increased by 7% year-over-year, driven by the acquisition of deposits from the Santander branch [18][19] Company Strategy and Development Direction - The company is focusing on expense management and leveraging investments in AI and automation to enhance operational efficiency [8] - A significant acquisition of ClearPoint Federal Bank & Trust is expected to expand the wealth management business and enhance revenue streams [20] - The company aims to continue deploying capital in high-return businesses while maintaining a flat share count despite inorganic growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's diversified revenue profile and strong liquidity as a foundation for continued earnings growth [21] - For 2026, the company anticipates loan balance growth of 3.5%-6%, deposit growth of 2%-3%, and net interest income growth of 8%-12% [21] - The effective tax rate is expected to be between 23% and 24%, with non-interest expenses projected to increase by 4%-7% from 2025 [22] Other Important Information - The company recorded a provision for credit losses of $5 million in Q4, down from $6.2 million in the prior year's fourth quarter [14] - The allowance for credit losses at the end of 2025 was over six times the company's net charge-offs during the year [20] Q&A Session Summary Question: Loan pricing and growth drivers for 2026 - Management noted that loan originations were in the low sixes, with expectations for a trend towards lower pricing [27][28] Question: Non-interest income growth guidance - Non-interest income is expected to grow by 4%-8% in 2026 [29] Question: Employee benefit services growth trajectory - Management indicated that retirement services grew in high single digits, while institutional trust was flat, with expectations for mid to high single-digit growth overall [33][34] Question: Fee income ratio and ROTCE implications - Management acknowledged the importance of fee income and indicated ongoing investments in both organic and inorganic opportunities [39][41] Question: ClearPoint transaction and its market - ClearPoint operates in the death care industry, providing trust and asset management services, with expectations for significant growth opportunities [48][50] Question: Q1 2026 expense expectations - Management confirmed that Q1 expenses are typically higher, with expectations for a gradual decrease throughout the year [53][55] Question: NIM expansion expectations - Management guided for a 2-4 basis points expansion in NIM for Q1, with ongoing efforts to manage loan and deposit growth effectively [59][61]

Core Insights - The investment landscape for growth stocks is increasingly focused on AI and automation, presenting both opportunities and challenges for investors as they look towards 2026 [1] Group 1: Industry Trends - The convergence of growth stocks around AI and automation indicates a significant trend in the technology sector, highlighting the importance of these themes for future investments [1] - Concerns regarding the profitability of AI and automation companies are beginning to surface, suggesting potential risks in this investment area [1] Group 2: Analyst Background - The analyst, Gary Alexander, has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing a well-rounded perspective on current industry themes [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment community [1]

Core Insights - The investment landscape for growth stocks is increasingly focused on AI and automation, presenting both opportunities and challenges for investors as they look towards 2026 [1] Group 1: Industry Trends - The convergence of growth stocks around AI and automation indicates a significant shift in market dynamics, highlighting the importance of these technologies in future investment strategies [1] - Concerns regarding the profitability of companies in the AI and automation sector are beginning to surface, suggesting potential volatility in this investment space [1] Group 2: Analyst Background - The analyst, Gary Alexander, has extensive experience in both Wall Street technology coverage and Silicon Valley, providing a well-rounded perspective on current industry themes [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment analysis community [1]