PresentationDay 2 of our London Healthcare Conference. Great to see everyone. Always really appreciative of the attendance. My name is Akash Tewari. I'm a pharma and biotech analyst here at Jefferies. I have the pleasure of hosting the BioMarin management team.Alexander HardyPresident, CEO & Director Great. Excellent. Thank you very much. Can folks hear me okay? Good. So thanks very much for joining us. Thank you for your interest in BioMarin. So actually, at the beginning of next month will be my 2-year an ...

Core Insights - Verizon is planning to cut approximately 15,000 jobs, representing about 15% of its workforce, as part of a restructuring under new CEO Dan Schulman [2][4] - The layoffs are expected to primarily affect non-union management ranks, with over 20% of that workforce impacted [4] - Verizon's shares rose by about 1.4% following the announcement, although the stock has stagnated over the past three years, gaining only 8% compared to the S&P 500's nearly 70% increase [3] Company Strategy - The restructuring aims to address rising competition and slowing subscriber growth in the U.S. wireless market, where Verizon faces pressure from rivals AT&T and T-Mobile US [5] - Schulman emphasized the need for aggressive change, including cost transformation and restructuring the expense base, to create a simpler and leaner business [6] - The company plans to transition around 180 corporate-owned retail stores to franchised operations as part of its strategy [4] Financial Context - Verizon had about 100,000 U.S. employees at the end of 2024, having cut nearly 20,000 employees over the past three years [7] - The company has previously announced significant layoffs, including a reduction of 4,800 employees through a voluntary program last year, which incurred a nearly $2 billion charge [7] - Verizon has invested heavily in acquiring wireless spectrum and companies, spending $52 billion on C-band spectrum in a 2021 auction and $20 billion on Frontier Communications [9]

Core Viewpoint - Avantor Inc. reported worse-than-expected second-quarter 2025 adjusted EPS, leading to a decline in stock price, with shares nearing their 52-week low [1]. Financial Performance - The company reported adjusted EPS of 24 cents, slightly below the consensus estimate of 25 cents [1]. - Sales for the quarter were $1.68 billion, nearly in line with the consensus of $1.675 billion, but fell 1% compared to the second quarter of 2024 [1][2]. - Net income decreased to $64.7 million from $92.9 million a year ago, while adjusted net income was $161.2 million compared to $168 million [5]. - Adjusted EBITDA was $279.8 million, down from $305.6 million, with a margin of 16.6% [5]. - Adjusted operating income fell from $277.2 million to $252.2 million, with a margin of 15.0% [6]. Segment Performance - Laboratory Solutions sales were $1.12 billion, a reported decrease of 3%, with a 1% organic decline [2]. - Bioscience Production sales were $561.3 million, also a reported decrease of 3%, but showed a 2% increase on an organic basis [3]. - The bioprocessing performance did not meet expectations due to planned maintenance at a manufacturing facility, despite strong demand for the monoclonal antibody platform [4]. Strategic Developments - The company announced significant actions to accelerate growth and enhance its cost structure, targeting $400 million in gross run-rate savings by the end of 2027 [6]. - A five-year contract extension with BIO Business Solutions was executed, positioning the company to benefit from future funding levels in the biotech industry [7]. Market Position - Avantor stock trades at approximately 10.8 times the 2025 EBITDA estimate, compared to peers at 15.4 times and its own average of 15.9 times as a public company [8]. - The company's growth and margin profile are considered below peer levels, justifying the current discount to peers [8].

Summary of AT&T (T) 2025 Conference Call Company Overview - **Company**: AT&T Inc. (T) - **Date of Conference**: June 10, 2025 - **Key Speaker**: Pascal, Senior EVP and CFO of AT&T since February 2021 Key Points Industry and Market Position - AT&T is recognized as the largest player in the telecommunications industry, particularly in fiber and wireless services [1][2] - The company has achieved a leverage target of 2.5 times, allowing for capital allocation towards share buybacks and strategic acquisitions [3][31] Strategic Transactions - AT&T announced a significant transaction with Lumen, acquiring 4 million additional fiber passings, aiming to reach 60 million homes passed with fiber by 2030 [4][11] - The acquisition is viewed as both a defensive and offensive strategy to expand AT&T's footprint in 11 states where it previously had no broadband infrastructure [7][8] - The penetration rate of the acquired fiber footprint is currently at 25%, with expectations to increase it to 40% through AT&T's distribution network [9][10] Financial Strategy - AT&T plans to maintain a capital expenditure of $22 billion annually through 2027, which is among the highest in the industry [21] - The company is exploring partnerships with private capital to finance the Lumen acquisition, which is valued at approximately $5.75 billion [33] - AT&T aims to balance capital allocation while delivering attractive returns to shareholders [22][36] Wireless and Fiber Integration - The company emphasizes the importance of integrating fiber and wireless services to enhance customer experience and drive revenue growth [45][50] - AT&T's strategy includes offering guarantees to customers, ensuring technical issues are addressed promptly, and providing competitive pricing [45][46] - The company believes that having both wired and wireless networks allows for better service delivery and customer retention [49][50] Competitive Landscape - The telecommunications market is described as highly competitive, with cable companies gaining market share in recent years [51][60] - AT&T is confident in its ability to compete effectively against cable providers, citing the superior quality and pricing of its fiber products [63][64] - The company acknowledges the need for more spectrum but currently does not see an immediate requirement for additional spectrum acquisition [39][42] Economic Outlook - AT&T has not observed significant negative impacts from tariffs, as most of its capital spending is labor-related [70][73] - Consumer demand remains strong, with higher activity levels noted in Q1 and Q2 of 2025 [76][78] - The company anticipates a robust growth profile by the end of the decade, with a focus on fiber and modern wireless networks [81][85] Future Vision - By the end of the decade, AT&T expects to have completed its fiber build and modernized its wireless network, positioning itself as a leader in both sectors [81][85] - The company aims to eliminate legacy systems, such as copper and DSL, which currently incur significant costs [84] Additional Insights - AT&T is open to exploring satellite connectivity solutions, such as Starlink, to serve underserved populations, while maintaining a focus on its fiber and wireless networks [88][90] - The company views the current competitive landscape as an opportunity to enhance its service offerings and customer loyalty [60][63]

Financial Data and Key Metrics Changes - The company reaffirmed its full year EBITDA guidance of $570 million to $590 million despite a challenging macro environment [8][40] - Total company net sales for the quarter were $1.42 billion, down 7% from $1.53 billion a year ago [41] - U.S. Consumer net sales decreased 5% to $1.31 billion, reflecting a slower start to the lawn and garden season [41][44] - Year-to-date total net sales were $1.84 billion, down 5% from $1.94 billion a year ago [43] - Adjusted EBITDA improved from $396 million to $403 million in the second quarter [51] Business Line Data and Key Metrics Changes - The Garden business saw a 16% increase in POS units, while the Mulch business increased by 46% [13] - Hawthorne net sales declined 51% from $66 million to $33 million due to market softness and strategic exit from third-party distribution [43] - POS units exceeded prior year by 12.1%, driven by strong performance in mulch, soils, fertilizer, grass seed, and controls [45] Market Data and Key Metrics Changes - The company reported that 75% of consumers perceive lawn and garden care as essential, with 25% planning to shift to DIY this year [26] - Retailers are heavily promoting the company's products, which has positively impacted market share [22][65] Company Strategy and Development Direction - The company is focusing on a transformation strategy aimed at cost savings and productivity improvements, targeting $150 million in supply chain cost outs by fiscal 2027 [28][30] - The divestiture of the Hawthorne business is intended to improve gross margin and reduce volatility [28][33] - The company plans to roll out changes in product packaging and formulations to better meet consumer needs [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the consumer base, noting that the core consumer remains relatively healthy [10][25] - The company anticipates strong retailer replenishment in Q3 as weather conditions improve [42] - Management highlighted the importance of promotions and brand support in driving consumer engagement [23][24] Other Important Information - The company achieved a nearly 500 basis point recovery in gross margin and a $36 million EBITDA increase year-to-date [12][51] - The GAAP gross margin rate was 38.6% for the second quarter, compared to 30.4% in the prior year [49] Q&A Session Summary Question: Can you explain the difference between the 12% growth in units and the low single-digit growth in dollars? - Management indicated that the difference is largely due to a mix of product types and heavy retailer promotions driving unit sales [59][67] Question: What is the impact of consumers trading down to DIY? - Management views this as a potential opportunity rather than a negative, as many consumers take pride in DIY gardening [74][76] Question: What is the pricing gap between the company's products and private label? - Management noted that the pricing gap remains within the historical range of 20% to 30%, but promotional activities have helped close this gap [80][86] Question: Is there a risk of pantry loading among consumers? - Management expressed confidence that pantry loading is not a significant concern, as they are attracting new consumers to the category [89][94] Question: What is the outlook for Hawthorne's EBITDA guidance? - Management confirmed that while Hawthorne's revenue guidance has been withdrawn, the overall EBITDA guidance for the company remains unchanged [95][98]

Financial Data and Key Metrics Changes - Total company net sales for Q2 2025 were $1.42 billion, down 7% from $1.53 billion a year ago [40] - U.S. Consumer net sales decreased 5% to $1.31 billion from $1.38 billion, attributed to a slower start to the lawn and garden season and non-repeating sales from the previous year [40] - Year-to-date total net sales were $1.84 billion, down 5% from $1.94 billion [41] - Adjusted EBITDA for Q2 improved to $403 million from $396 million, with a year-to-date increase of $36 million to $407 million [49] - GAAP net income for Q2 was $217.5 million or $3.72 per share, compared to $157.5 million or $2.74 per share a year ago [50] Business Line Data and Key Metrics Changes - The Garden business saw a 16% increase in POS units, while the Mulch business experienced a 46% increase [12] - POS units overall increased by 12.1%, with notable growth in mulch, soils, fertilizer, grass seed, and controls [42] - Hawthorne net sales declined 51% to $33 million, reflecting market softness and strategic exit from low-margin distribution [41] Market Data and Key Metrics Changes - The company reported that 75% of consumers view lawn and garden care as essential, with 25% planning to shift to DIY this year [25] - Retailers are heavily promoting the company's products, which has positively impacted market share [21] Company Strategy and Development Direction - The company is focused on transforming its cost structure and improving productivity, aiming for $150 million in supply chain cost savings by fiscal 2027 [29] - A strategic divestiture of the Hawthorne business is underway to reduce volatility and improve gross margins [27] - The company plans to roll out changes in product packaging and formulations in fiscal 2026 and 2027 to better meet consumer needs [18] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year EBITDA guidance of $570 million to $590 million, citing strong consumer takeaway and market share gains [7] - The company remains confident in its ability to navigate the current macroeconomic environment, with minimal exposure to tariffs [23] - Management expressed optimism about the resilience of the consumer base, noting that homeowners have more disposable income [25] Other Important Information - The company has achieved a nearly 500 basis point recovery in gross margin, with a target of 30% gross margin rate by fiscal year-end [46] - The company has reduced debt and interest expenses, with total debt down $270 million year-over-year [49] Q&A Session Summary Question: Can you explain the difference between the 12% growth in units and the low single-digit growth in dollars? - Management indicated that the difference is largely due to a mix of product types and heavy retailer promotions driving unit sales, while dollar growth is slower due to pricing strategies [56][60][62] Question: What is the impact of consumers trading down to DIY? - Management views this as a potential positive, as many consumers take pride in gardening and may find DIY solutions more cost-effective [72][74] Question: What is the pricing gap between the company's products and private labels? - Management noted that the pricing gap remains around the historical 20% to 30%, but promotional activities have helped close this gap [78][82] Question: Is there a risk of pantry loading among consumers? - Management does not see significant risk of pantry loading, citing strong early season performance and new consumer engagement [85][89] Question: What is the outlook for Hawthorne's EBITDA guidance? - Management did not adjust the total company EBITDA guidance despite Hawthorne's underperformance, citing strong gross margin improvements and cost-saving measures [90][92]