Southwest Gas Holdings, Inc. (NYSE:SWX) Q3 2024 Earnings Conference Call November 6, 2024 11:00 AM ET Company Participants Justin Forsberg - Vice President, Investor Relations and Treasurer Karen Haller - President and CEO Rob Stefani - Chief Financial Officer Justin Brown - President, Southwest Gas Corporation Conference Call Participants Richard Sunderland – J.P. Morgan Ryan Levine - Citi Operator Welcome to Southwest Gas Holdings Third Quarter 2024 Earnings Conference Call. Today’s call is being recorded ...

Financial Data and Key Metrics - Revenue for Q4 2024 was $3.7 billion, up 4.4% YoY or 2% excluding foreign exchange impact [8] - Earnings before income taxes were $592 million, with a margin of 16.2%, up 30 basis points YoY [11] - Adjusted EBIT was $600 million, representing a margin of 16.4%, up 10 basis points YoY [12] - Net earnings were $436 million, with a margin of 11.9%, up 10 basis points YoY [15] - Diluted EPS was $1.91, an increase of 8.5% YoY [15] - Cash provided by operating activities was $629 million, representing 17.2% of total revenue [16] - Global backlog reached $28.7 billion, or 1.9 times revenue [11] Business Line Performance - IP revenue grew at 3.7% constant currency, representing 22.9% of total revenue, up 30 basis points YoY [10] - Book-to-bill ratio was 104% for Q4, with managed services at 120% and SI&C at 85% [10] - Managed services bookings were particularly strong in H2, reaching nearly $5.3 billion, up by more than $1 billion compared to H1 [35] Market Performance - Strongest growth segments: Northwest and Central East Europe (7.5% constant currency), UK and Australia (7.2%), Asia Pacific (6.2%), and US Federal (5%) [8] - Government sector showed the highest growth at 4.7% constant currency, followed by manufacturing, retail, and distribution at 3.3% [9] - Financial services in Europe and communications in North America remained challenged [9] Company Strategy and Industry Competition - The company continues to focus on a build-and-buy strategy, with recent acquisitions including Aeyon and CGI Federal to deepen digital and AI-based offerings [25] - Investments in AI and GenAI are ongoing, with a $1 billion AI investment announced previously [47] - The company is actively pursuing M&A opportunities, with a focus on accretive acquisitions that align with its growth strategy [52] Management Commentary on Operating Environment and Future Outlook - The company expects the tax rate for future quarters to be in the range of 25.5% to 26.5% [14] - The demand environment for managed services remains strong, while SI&C is expected to remain soft in the near term [78] - The company sees opportunities in AI, cybersecurity, and cloud services, with a growing pipeline of AI-related projects [48] Other Important Information - The company issued $750 million of public Canadian senior notes to repay existing debt and for general corporate purposes [17] - A cash dividend of $0.15 per share was approved, payable on December 20, 2024 [19] - Germany is now its own segment, and operations in Scandinavia are combined with the Northwest and Central East Europe segment [20] Q&A Session Summary Question: M&A Activity and AI Pipeline - The company has a full M&A pipeline and is in active discussions with multiple targets, but closing deals depends on agreement on price and strategic fit [57] - AI-related projects are increasing, with more proof-of-concepts and internal use of AI in managed services and IP [58] - The company is investing in training its workforce on AI tools, with both basic and technical training programs in place [60] Question: Bookings and US Federal Business - Bookings were slightly weak in Q4 due to lumpiness, with some contracts not closing by the end of the quarter [63] - The US Federal business is expected to pick up after the election, as new priorities will require IT services [66] Question: Microsoft Partnership and M&A Valuation - Microsoft is a key partner, and the company uses tools like CoPilot extensively, but it also works with other technologies like AWS and Google [72] - The company is disciplined in M&A, focusing on accretive deals that align with its strategy, even if it means paying more than one-time revenue [75] Question: Demand Environment and US Commercial Business - The demand environment remains stable, with managed services strong and SI&C soft, particularly in business consulting [78] - The US Commercial and State Government business is expected to bounce back, with large potential deals in the pipeline [79] Question: Discretionary Spending and Margins - Discretionary spending remains soft, particularly in the financial sector, but the company expects a bounce back as interest rates stabilize [81] - Margins are expected to improve, with opportunities in Europe and managed services driving profitability [94] Question: GenAI and Client Adoption - Clients are increasingly relying on the company for AI proof-of-concepts and data preparation, driving future growth opportunities [98] - The company is using AI internally for cost optimization and process automation, which is also benefiting clients [92] Question: M&A Strategy and Infrastructure - The company remains focused on its build-and-buy strategy, with a preference for acquisitions that align with its growth objectives and culture [102] - Pure infrastructure businesses are not a focus, but the company is open to acquisitions that include infrastructure as part of a broader offering [105] Question: Client Pipeline and New Business - The client pipeline is up 20% YoY, with strong growth in retail and financial services, driven by cost-saving initiatives and managed services [112] - The company is seeing growth in AI and cybersecurity consulting, with new opportunities in these areas [114]

National Vision Holdings, Inc. (NASDAQ:EYE) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Tamara Gonzalez - Vice President, Investor Relations Reade Fahs - Chief Executive Officer Alex Wilkes - President Melissa Rasmussen - Chief Financial Officer Conference Call Participants Michael Lasser - UBS Kate McShane - Goldman Sachs Zachary Fadem - Wells Fargo Jon Elias - BMO Capital Markets Dylan Carden - William Blair Paul Lejuez - Citi Brian Tanquilut - Jefferies Adrienne Yih ...

Financial Data and Key Metrics - Net income per diluted common share for Q3 2024 was $0.65, down from $0.68 in the same period last year [25] - NAREIT and normalized FFO per diluted common share decreased 4.6% to $1.03 compared to the prior year's third quarter [26] - FAD for the quarter increased 2.5% to $49.4 million from $48.2 million in the prior year's third quarter [26] - SHOP NOI increased 30.4% year-over-year and 2.5% sequentially to $3 million [22] - SHOP occupancy improved to 88.6% from 79% year-over-year, contributing to a 320 basis points margin expansion to 22% [23] Business Line Data and Key Metrics - Senior Living Management (SLM) ceased lease and interest payments, leading to a $1 million reduction in lease and interest payments [27] - Bickford's EBITDARM coverage improved to 1.72x, up from 1.45x in Q2 2024 [16] - Bickford's occupancy improved by 80 basis points sequentially to 86.2% [17] - The SNF portfolio reported EBITDARM coverage of 3.04x, up from 2.97x in the previous quarter [22] - The discretionary senior housing portfolio, including entrance fee properties, had EBITDARM coverage of 1.64x, up from 1.6x in the previous quarter [21] Market Data and Key Metrics - SHOP occupancy improved by 160 basis points sequentially, reaching 89.1% by the end of September [23] - Resident fees increased by 11.4% year-over-year, driven by occupancy improvements [23] - The company expects to reduce move-in incentives as occupancy approaches 90%, leading to margin improvements [24] Company Strategy and Industry Competition - The company closed $205 million in investments year-to-date at an average initial yield of 8.4%, including a $121 million acquisition of the Spring Arbor portfolio [7] - The company has a pipeline of $1.9 billion in investment opportunities, with $59.8 million in board-approved deals expected to close this year or early next year [7] - The company is pursuing large portfolios, including SHOP and skilled nursing deals, not included in the pipeline numbers [8] - The company's cost of capital has improved significantly over the last 12 months, supported by industry fundamentals and reduced portfolio optimization noise [8] - The company sees tailwinds from low inventory growth (1%) and new starts at the lowest level since 2010, along with demographic trends [9] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong financial positioning and multi-faceted growth opportunities [9] - The company expects to recapture a significant portion of lost NOI from SLM transitions by 2025 [20] - Management tightened SHOP NOI growth guidance to 28%-30%, up from 25%-30% [24] - The company is monitoring the long-term bond market in 2025, given its reliance on the revolving credit facility for liquidity [32] Other Important Information - The company completed a $189 million equity offering, with $65 million in future proceeds available [29] - The company amended its $700 million revolving credit facility, extending the maturity to October 2028 [31] - The company declared a $0.90 per share dividend for shareholders of record December 31, 2024 [34] - Chairman Andy Adams will retire effective December 31, 2024 [11] Q&A Session Summary Question: Thoughts on PACS and NHI's coverage post-transition - PACS is a smaller customer, with less than 3% of revenue, and half of that related to assisted living [38] - EBITDARM coverage for PACS properties is over 2x, based on prior operator performance [38] - The company is monitoring PACS closely but sees no immediate concerns [39] Question: Expected yields and mix in the investment pipeline - The pipeline includes debt, triple net lease, and SHOP deals, with expected yields of 8% or more [41] - SHOP yields may compress slightly as the market becomes more competitive [41] Question: Recovery expectations for SLM-related NOI - The company expects to recover normal rent levels by the second half of 2025 [47] - Two properties are cash-flowing and expected to return to full rent by early 2025 [49] - One property is expected to sell within 30-60 days, with interest accruing post-sale [50] Question: Impact of the election on healthcare and labor costs - Management is cautiously optimistic about the regulatory environment under the new administration [55] - Labor costs have stabilized, with no expected retrenchment in employment rates [60] Question: Board updates and state-level election impacts - The company is finalizing a new independent board member, to be presented in the next proxy season [63] - State-level subsidy programs for skilled nursing operators are being closely monitored [65] Question: Investment pace and overhead - The company expects to close $200-$400 million in investments annually, with potential for higher volumes if cost of capital remains attractive [69] - The company recently hired a Senior Vice President of Legal Affairs to support increased deal activity [70] Question: SHOP NOI growth and rate increases - The company expects to reduce incentives as occupancy stabilizes above 90%, leading to margin improvements [72] - Rate increases are expected to flow through to the bottom line by early to mid-2025 [72] Question: SHOP strategy and length of stay trends - The company's strategy of using pricing to drive occupancy has been successful, with nearly half of buildings reaching 90% occupancy [76] - Length of stay has stabilized but remains below pre-pandemic levels, influencing pricing decisions [79] Question: Medicare Advantage and SNF exposure - Management is cautiously optimistic about potential rate increases and a favorable regulatory environment under the new administration [81]

Amicus Therapeutics, Inc. (NASDAQ:FOLD) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Andrew Faughnan - VP, IR Bradley Campbell - President and CEO Sebastien Martel - Chief Business Officer Jeff Castelli - Chief Development Officer Simon Harford - CFO Ellen Rosenberg - Chief Legal Officer Conference Call Participants Ritu Baral - TD Cowen Anupam Rama - JP Morgan Tazeen Ahmad - Bank of America Securities Ellie Merle - UBS Joe Schwartz - Leerink Partners Dae Gon Ha - Stifel ...

SFL Corporation Ltd. (NYSE:SFL) Q3 2024 Earnings Conference Call November 6, 2024 10:00 AM ET Company Participants Espen Nilsen Gjøsund - Vice President of Investor Relations Ole Hjertaker - Chief Executive Officer Trym Sjølie - Chief Operating Officer Aksel Olesen - Chief Financial Officer Conference Call Participants Sherif Elmaghrabi - BTIG Climent Molins - Value Investor's Edge Espen Nilsen Gjøsund Hello, everyone, and welcome to SFL's Third Quarter 2024 Conference Call. My name is Espen Nilsen. I'm Vic ...

Pan American Silver Corp. (NYSE:PAAS) Q3 2024 Earnings Conference Call November 6, 2024 11:00 AM ET Company Participants Siren Fisekci - VP, IR Michael Steinmann - President and CEO Steve Busby - COO Conference Call Participants Ovais Habib - Scotiabank Don DeMarco - National Bank Financial Operator Good morning, ladies and gentlemen, and welcome to the Pan American Silver Third Quarter 2024 Unaudited Results Conference Call and Webcast. At this time, all lines are in listen-only mode. Following the present ...

International Flavors & Fragrances Inc. (NYSE:IFF) Q3 2024 Earnings Conference Call November 6, 2024 9:00 AM ET Company Participants Michael DeVeau - Senior Vice President, Corporate Finance and Investor Relations Erik Fyrwald - Chief Executive Officer Glenn Richter - Executive Vice President, Chief Financial and Business Transformation Officer Conference Call Participants Josh Spector - UBS Nicola Tang - BNP Paribas Ghansham Panjabi - Baird John Roberts - Mizuho Dan Rizzo - Jefferies Patrick Cunningham - C ...

Astec Industries, Inc. (NASDAQ:ASTE) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Steve Anderson - SVP of Administration and IR Jaco van der Merwe - President and CEO Brian Harris - CFO Heinrich Jonker - VP of Finance Conference Call Participants Joe Grabowski - Baird Steve Ferazani - Sidoti Operator Hello and welcome to the Astec Industries Third Quarter 2024 Earnings Call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, ...

Royalty Pharma plc (NASDAQ:RPRX) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants George Grofik - SVP, Head, Investor Relations and Communications Pablo Legorreta - Founder & CEO Marshall Urist - EVP, Head-Research and Investments Chris Hite - EVP, Vice Chairman Terry Coyne - EVP & CFO Conference Call Participants Hardik Parikh - JPMorgan Geoff Meacham - Citi Michael DiFiore - Evercore Terence Flynn - Morgan Stanley Michael Nedelcovych - TD Cowen Chris Shibutani - Goldman Sa ...