Pat McCann

Pat McCann from Noble Capital inquired about the specific metrics Conduent's CEO, Harsha Agadi, would use to evaluate business units for the 'fix, sell, or grow' framework, such as margin profile and capital intensity. He also asked about the company's philosophy on retaining business units that offer overlap or efficiencies versus maintaining a more disparate portfolio.

Answer

CEO Harsha Agadi explained that multiple variables would be considered, including capital allocation, rate of return, growth metrics of the sector (e.g., healthcare), predictable EBITDA margins, required capital allocation, free cash flow generation, and the presence of a sustainable 'moat' around the business, especially concerning technology and AI disruption. He emphasized moving away from being 'everything to everybody' and focusing on core strengths, even partnering for additional services while leveraging deep client relationships.

Pat McCann from Noble Capital inquired about the specific metrics Conduent would use to evaluate business units for its 'fix, sell, or grow' framework, focusing on factors like margin profile and capital intensity. He also asked about the company's philosophy on maintaining a portfolio of related versus disparate business units to achieve efficiency and scale.

Answer

CEO Harsha Agadi outlined multiple variables for evaluation, including capital allocation, rate of return, sector growth metrics (e.g., healthcare), predictable EBITDA margins, free cash flow generation, and the presence of a sustainable 'moat' against technology disruption, particularly AI. He emphasized moving away from being 'everything to everybody,' focusing on core strengths, leveraging deep client relationships, and being disciplined to generate scale and efficiency, even declining business outside core expertise in past roles.

Pat McCann inquired about how SelectRx's current scale has impacted its negotiating position in recent PBM discussions compared to prior agreements. He also asked about the Kansas facility's capacity for incremental volume before requiring significant new capital investment.

Answer

President Bob Grant affirmed that SelectRx's scale, with over 100,000 complex members and proven adherence benefits (e.g., 20% reduction in hospital days), provides significant negotiating leverage and fosters deeper partnerships, leading to a successful PBM negotiation. Regarding the Kansas facility, Bob Grant stated it has very high capacity due to automation and efficient machinery, allowing for substantial customer volume with less staff, and new technology initiatives are being trialed to further enhance efficiency without immediate significant capital investment.

Pat McCann, Equity Research Analyst at Noble Capital Markets, asked about Bit Digital's current ranking in its goal to become the largest public ETH treasury and sought clarification on the G&A expenses for the quarter and their future trajectory.

Answer

CEO Sam Tabar clarified that Bit Digital's goal is to be the 'best' ETH treasury, emphasizing responsible and prudent ETH acquisition methods, such as unsecured converts, and strategic positioning with assets like White Fiber, rather than solely focusing on size. Head of Investor Relations Cameron Schnier and CFO Eric Huang explained that the elevated G&A expenses for the quarter included non-recurring costs related to the White Fiber IPO and discretionary marketing. They anticipate G&A to be materially lower and the standalone Bit Digital cost structure to become significantly leaner and more flexible on a normalized forward basis.

Pat McCann asked about Bit Digital's current ranking in its goal to become the largest public ETH treasury and for comments on the G&A expenses this quarter and their future outlook.

Answer

CEO Sam Tabar clarified that Bit Digital's goal is to be the 'best' rather than just the 'largest,' emphasizing their responsible and prudent approach to acquiring Ethereum through unsecured converts and their unique positioning with WhiteFiber. Head of Investor Relations Cameron Schnier and CFO Eric Huang explained that the elevated G&A included non-recurring items and discretionary marketing spend, noting that Bit Digital's standalone cost structure is flexible and expected to become significantly leaner and materially lower on a forward basis.

Pat McCann from Noble Capital asked for an outlook on the revenue mix for 2026, specifically concerning the balance between consumer sales through websites and the anticipated growth from builder partnerships (B2B segment).

Answer

Rani Kohen, Founder and Executive Chairman of SKYX Platforms Corp, indicated that current revenues are primarily retail, but significant B2B growth is anticipated starting in 2026. He noted that while B2B is expected to become a much larger component, retail partnerships with big box stores like Home Depot could also generate substantial numbers, making the exact future mix dynamic.

Pat McCann inquired about the visibility of Q4 billings for the upcoming ceiling heater fan launch and its potential impact on achieving adjusted EBITDA break-even, asking if expectations are based on current visibility or future availability. Pat also asked about the anticipated revenue mix for 2026 between consumer sales (websites) and builder partnerships.

Answer

Rani Kohen, Founder and Executive Chairman, stated that SKYX Platforms Corp has some visibility for the ceiling heater fan and other ceiling fans launching in November, but emphasized the need to land products first to get a clearer picture, noting some anticipation. Kohen also responded that current revenues are mainly retail, but significant B2B growth is expected in 2026, potentially surpassing retail, while also acknowledging the impact of big box partnerships like Home Depot.

Pat McCann of Noble Capital Markets inquired about the company's long-term financing strategy for new campuses and the role of Private Activity Bonds (PABs) relative to the new warehouse facility.

Answer

CFO Francisco Gonzalez explained the long-term strategy is to ultimately use the programmatic bond market. He detailed that the current warehouse facility is a tactical choice to reduce negative arbitrage, benefit from floating rates, and transfer construction risk away from the permanent bond program. The company plans to refinance the warehouse facility with a long-term PAB offering in three to four years, which will strengthen the credit profile for existing bondholders.

Pat McCann questioned the company's strategy regarding hedging currency risk for the Mexican peso and its plans for the upcoming license renewal in Colombia.

Answer

CFO Oscar Iglesias explained that while currency hedging has not been implemented due to the natural hedge of a peso-denominated cost structure, it is something the company might consider in the medium-to-long term as profitability in Mexico increases. CEO Aviv Sher affirmed that the company views its licenses as assets and intends to renew the Colombian license, noting that the market is generating slightly positive EBITDA and may be a focus for future growth.