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    Brendan McCarthy • Sidoti & Company

    Brendan McCarthy's questions to Federal Agricultural Mortgage Corp (AGM) leadership

    Brendan McCarthy's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q2 2025

    Question

    Brendan McCarthy from Sidoti & Company sought details on the renewable energy tax credit phase-out and its potential impact on future credit purchases. He requested specifics on the loans contributing to the quarterly credit provision, including the charge-offs and downgrades. He also asked about the strategic priority of the newly expanded share repurchase program.

    Answer

    President & CEO Bradford Nordholm explained that tax credit purchases are opportunistic and not a core part of their P&L strategy, while project finance will continue due to a large addressable market. Senior VP & Chief Credit Officer Marc Crady provided details on the charge-offs, identifying them as a permanent crop loan and a crop loan in the Southwest, noting a significant recovery on one loan post-quarter. He also described the two downgraded infrastructure loans as a solar project and a broadband provider in the Southeast facing operational and liquidity challenges. Bradford Nordholm positioned the share repurchase as one of several capital management tools, to be used opportunistically when the stock price is attractive.

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    Brendan McCarthy's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q1 2025

    Question

    Brendan McCarthy asked about renewable energy tax credit activity in Q1, the drivers behind the net effective spread revenue increase in the Farm & Ranch segment, and the dynamics causing momentum in the Treasury segment's net effective spread.

    Answer

    President and CEO Bradford Nordholm stated there was no tax credit activity in Q1 but it remains an opportunity. CFO Aparna Ramesh added that OpEx benefited from lower legal fees related to Q4's tax credit activity. Regarding Farm & Ranch, Bradford Nordholm and Executive Zachary Carpenter attributed the NES strength to nonaccrual loan resolutions and strong new loan purchase volume driven by a tightening ag economy. For the Treasury segment, Aparna Ramesh explained the momentum came from opportunistically issuing debt at narrower SOFR spreads and calling some issuances as the yield curve steepened.

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    Brendan McCarthy's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q3 2024

    Question

    Brendan McCarthy of Sidoti & Company inquired about the future growth pace for the Renewable Energy portfolio, the prudence of the 30% operating efficiency target post-major tech investments, and the potential impact of lower interest rates on Farm & Ranch loan volume.

    Answer

    Executive Zachary Carpenter stated that the company sees no slowdown in Renewable Energy and will invest to meet demand. President and CEO Bradford Nordholm affirmed the 30% efficiency target remains prudent to support growth and ensure safety. Zachary Carpenter also confirmed that a combination of factors, including lower rates and lender liquidity needs, is expected to boost Farm & Ranch volume.

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    Brendan McCarthy's questions to Oportun Financial Corp (OPRT) leadership

    Brendan McCarthy's questions to Oportun Financial Corp (OPRT) leadership • Q2 2025

    Question

    Brendan McCarthy of Sidoti & Company asked about the reason for the sharp decline in the net charge-off (NCO) rate on the legacy 'back book' of loans. He also inquired about macro risks that could push the full-year NCO rate above 12% and the long-term OpEx outlook for 2026.

    Answer

    CEO Raul Vazquez attributed the back book's improved NCO rate to the portfolio nearing its end-of-life and strong recovery efforts. He cited a significant economic slowdown or rising inflation from tariffs as potential macro risks. For 2026, he noted it was too early for guidance but reiterated the long-term goal of achieving a 12.5% OpEx ratio through continued efficiencies and portfolio growth.

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    Brendan McCarthy's questions to Oportun Financial Corp (OPRT) leadership • Q1 2025

    Question

    Brendan McCarthy from Sidoti questioned the decision to taper the originations outlook, the factors that could influence operating expenses for the rest of the year, and the reasoning behind the recent decision to reduce the size of the Board of Directors.

    Answer

    CEO Raul Vazquez clarified that tapering the originations growth outlook to approximately 10% is a prudent measure due to macroeconomic uncertainty, not a reaction to current performance. He mentioned that Q1 operating expenses were below the quarterly average because some marketing spend was deferred to the second half of the year, creating 'dry powder' if the macro environment improves. Regarding the board, Vazquez stated the reduction aims to create a more efficient and conventional size, reflecting shareholder feedback and a commitment to thoughtful board evolution.

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    Brendan McCarthy's questions to Geo Group Inc (GEO) leadership

    Brendan McCarthy's questions to Geo Group Inc (GEO) leadership • Q2 2025

    Question

    Brendan McCarthy of Sidoti & Company asked if the 100,000-bed detention target includes the impact of the Lake and Riley Act and requested an update on the verbiage in the fiscal year 2026 Homeland Security Appropriations bill regarding detention and its alternatives.

    Answer

    Executive Chairman George Zoley clarified that the 100,000-bed objective existed prior to the act and reaching it involves patching together capacity from private and state partners. He explained that the appropriations bill provided a large, bundled sum of money for broad service categories like detention, giving the agency flexibility to reprogram funds as needed, rather than including specific text about programs like ISAP. He also highlighted ICE's priority of hiring 10,000 new officers.

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    Brendan McCarthy's questions to Geo Group Inc (GEO) leadership • Q4 2024

    Question

    Brendan Michael McCarthy asked about the reason for the increased incremental revenue forecast for detention bed reactivation (from $400M to $500-600M) and whether the administration would prioritize maximizing detention capacity before ramping up alternatives to detention (ATD).

    Answer

    Executive Chairman George Zoley explained the revised revenue forecast resulted from more detailed modeling and greater clarity on facility capacities. Regarding prioritization, Zoley stated that while the existing U.S. facility market is limited, the ISAP program operates with a separate team and is expected to ramp up significantly and simultaneously with detention. He stressed that the solution to program compliance is continuous monitoring until an individual's immigration case is resolved.

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    Brendan McCarthy's questions to Geo Group Inc (GEO) leadership • Q3 2024

    Question

    Brendan McCarthy of Sidoti & Company inquired about the potential ramp-up cadence for the ISAP contract under increased funding. He also asked about expected differences in the 2025 Homeland Security appropriations bills between the House and Senate and how GEO's market share in the Alternatives to Detention (ATD) program might trend with a material expansion.

    Answer

    Executive Chairman George Zoley projected a potential doubling or tripling of the ISAP program, noting a prior House bill required monitoring for all 7 million individuals on the non-detained docket, subject to funding. He anticipates new appropriations bills could fund 70,000 to 100,000 detention beds. Zoley and CEO Brian Evans affirmed they expect to retain their market share as the exclusive provider under the ISAP program, highlighting their extensive, fully integrated national infrastructure.

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    Brendan McCarthy's questions to FreightCar America Inc (RAIL) leadership

    Brendan McCarthy's questions to FreightCar America Inc (RAIL) leadership • Q2 2025

    Question

    Brendan McCarthy of Sidoti & Company questioned the long-term sustainability of the 15% gross margin level, asking for a breakdown of how much recent gains were from manufacturing efficiency versus product mix. He also inquired about the customer pipeline for the tank car conversion program.

    Answer

    President, CEO & Director Nicholas Randall explained that long-term margins are highly dependent on product mix, making them difficult to predict, though underlying productivity improvements are ongoing. He noted it's hard to separate the two drivers as they are intertwined. Regarding the tank car pipeline, Randall highlighted a federally mandated conversion deadline by 2029 for a significant number of industry cars, and confirmed FreightCar America is in continuous conversations with customers to provide either conversion or new car solutions.

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    Brendan McCarthy's questions to GATX Corp (GATX) leadership

    Brendan McCarthy's questions to GATX Corp (GATX) leadership • Q2 2025

    Question

    Brendan McCarthy asked for details on the engine leasing business, including the profit mix between operating income and remarketing gains, expectations for the rest of the year, and the outlook for investment volume in the wholly-owned portfolio.

    Answer

    EVP & CFO Tom Ellman detailed that for Q2, operating income was 85% of the engine leasing profit mix, with remarketing at 15%. He noted strong performance in this segment is the key driver for the increased full-year guidance. President & CEO Bob Lyons added that while remarketing gains are lumpy due to high asset values, overall investment activity remains strong, with the RRPF joint venture's investment volume expected to be north of the initially forecasted $800 million for the year.

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    Brendan McCarthy's questions to GATX Corp (GATX) leadership • Q1 2025

    Question

    Brendan McCarthy of Sidoti & Company asked if macro uncertainty might cause GATX to reconsider its $1.4 billion investment guidance for 2025, particularly for the engine leasing business. He also inquired about the balance sheet, interest rate assumptions in the guidance, and the renewal outlook for the Rail Europe segment.

    Answer

    President and CEO Robert Lyons confirmed that the full-year investment target of $1.4 billion remains on track, supported by a strong pipeline in the RRPF engine leasing joint venture. He stated the company's interest expense forecast for 2025 is unchanged and that the balance sheet remains very strong. Regarding Europe, Lyons noted that while the intermodal market faces challenges, the overall renewal success rate is high, consistent with the market's typical shorter lease terms.

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    Brendan McCarthy's questions to GATX Corp (GATX) leadership • Q4 2024

    Question

    Brendan McCarthy asked for insights on the favorable remarketing income outlook for 2025, particularly how the interest rate environment might affect secondary market demand. He also inquired about the sources for additions to the Rail North American fleet.

    Answer

    President and CEO Robert Lyons noted that despite higher interest rates, demand for railcar assets has remained robust, supporting the strong 2025 outlook. Paul Titterton, EVP and President of Rail North America, added that disciplined new car production funnels investors to the secondary market. Lyons confirmed 2025 fleet additions will come from their existing supply agreement and continued, though less robust, secondary market purchases. CFO Thomas Ellman highlighted that lease repricing is the key driver of financial performance.

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    Brendan McCarthy's questions to GATX Corp (GATX) leadership • Q3 2024

    Question

    Brendan Michael McCarthy of Sidoti & Company followed up on remarketing income, asking about the rationale for expecting a modest Q4. He also inquired about the drivers of strong RRPF earnings, the income mix for that segment, and the extent of the North American fleet's repricing.

    Answer

    President and CEO Bob Lyons explained that the forecast for modest Q4 remarketing income is due to already achieving the full-year target and a typical seasonal slowdown as buyers' capital programs wind down. EVP and CFO Tom Ellman stated that the strong RRPF results were driven by a larger engine portfolio and higher lease rates, consistent with expectations. Ellman provided the RRPF income mix as roughly 50/50 operating vs. remarketing for the quarter. Lyons confirmed that about half of the North American fleet has been repriced at current higher rates.

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    Brendan McCarthy's questions to Scholastic Corp (SCHL) leadership

    Brendan McCarthy's questions to Scholastic Corp (SCHL) leadership • Q4 2025

    Question

    Brendan McCarthy of Sidoti & Company inquired about the sources of fiscal 2026 cost savings, the revenue outlook for the Education Solutions segment, the impact of the 'science of reading' trend, the pipeline for state-sponsored programs, feedback on the integration of trade and school channels, the profitability outlook for the Entertainment business, and the timing and use of proceeds from potential real estate monetization.

    Answer

    EVP & CFO Haji Glover explained that cost savings are focused on non-revenue generating, discretionary functions and that the company is exploring real estate monetization with a potential update in 90-120 days. He projected flat profitability for the Entertainment segment in fiscal 2026. President & CEO Peter Warwick noted that while the district school market remains cyclically challenged, growth in state-sponsored programs and operational efficiencies support a flat revenue outlook for the Education segment. Warwick also described the internal integration of publishing and distribution channels as having a 'tremendous' positive impact, with benefits expected in fiscal 2026 and beyond.

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    Brendan McCarthy's questions to Scholastic Corp (SCHL) leadership • Q1 2025

    Question

    Brendan Michael McCarthy of Sidoti & Company, LLC inquired about several key areas, including the drivers behind gross margin improvement, the persistence of consumer spending pressure on the Book Fairs business, and the early performance of School Reading Events. He also sought details on new go-to-market strategies for the Book Clubs channel, the outlook for the state-sponsored business within Education Solutions, and the company's comfort with its new net debt position following the 9 Story acquisition.

    Answer

    CFO Haji Glover attributed gross margin gains to a favorable business mix and noted this was factored into the full-year outlook. He also expressed confidence in the current leverage, stating the company is exploring balance sheet opportunities but has no immediate plans to aggressively pay down debt. President and CEO Peter Warwick reported that Book Fairs are performing as expected, with strategic adjustments and a higher fair count mitigating consumer pressures. He highlighted positive early signs in the Book Clubs business, where redesigned, teacher-centric flyers are boosting sponsor engagement. For Education Solutions, Warwick noted a growing trend of state and partner programs focused on getting books into homes, which Scholastic is leveraging to rebalance the segment amid near-term headwinds in direct-to-school sales.

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    Brendan McCarthy's questions to Alexander & Baldwin Inc (Hawaii) (ALEX) leadership

    Brendan McCarthy's questions to Alexander & Baldwin Inc (Hawaii) (ALEX) leadership • Q4 2024

    Question

    Brendan McCarthy asked about the drivers behind the strong 14% Q4 rent spread, the outlook for 2025 spreads, the long-term strategy for the non-core office portfolio, and requested more detail on the $0.01 FFO from acquisitions included in guidance.

    Answer

    CEO Lance Parker explained the strong Q4 spread was driven by solid baseline activity plus a significant lift from a CVS/Longs anchor renewal. While not providing specific guidance, he expressed confidence in continued strong leasing interest for 2025. He characterized the small office portfolio as non-strategic and a candidate for capital recycling. Both Lance Parker and CFO Clayton Chun clarified the $0.01 FFO in guidance is for unspecified growth, reflecting confidence in their ability to deploy capital rather than a specific, pending transaction.

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    Brendan McCarthy's questions to Alexander & Baldwin Inc (Hawaii) (ALEX) leadership • Q3 2024

    Question

    Brendan Michael McCarthy requested details on a legacy joint venture, the drivers of G&A savings, and the rationale for using the revolver to pay off the Pearl Highlands mortgage.

    Answer

    CFO Clayton Chun explained the joint venture is a passive, pre-REIT investment that is not a major cash flow contributor and that Q4 guidance assumes a breakeven contribution from Land Operations. He attributed G&A reductions to process improvements and overall company simplification. Chun stated the decision to use the revolver for the Pearl Highlands mortgage was a strategic move to pair it with an existing forward-starting interest rate swap, locking in a fixed rate of 4.73%.

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