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8:06 am KKR beats by $0.09, beats on revs (KKR) : Reports Q1 (Mar) earnings of $0.62 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.53; revenues fell 5.2% year/year to $294.4 mln vs the $262.08 mln consensus.
•"We had a good start to the year with strong returns and cash flow generation, which translated into $599 mln of economic net income and $517 mln of total distributable earnings. Additionally, our balance sheet continues to perform, resulting in a 20% cash return on equity over the twelve months ending March 31st
6:23 am Stanley Black & Decker beats by $0.12, beats on revs; reaffirms FY15 EPS guidance (SWK) : Reports Q1 (Mar) earnings of $1.07 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.95; revenues rose 0.5% year/year to $2.63 bln vs the $2.6 bln consensus, positive volume (+7%) and price (+1%) were substantially offset by currency (-7%).
Co reaffirms guidance for FY15, sees EPS of $5.65-5.85 vs. $5.75 Capital IQ Consensus. Despite $60 to $70 million ($0.30 to $0.35 per share) in new, incremental foreign currency om pressure year over year currency-related eps headwinds included in full year guidance now total $1.00 to $1.10 (19% to 20% of prior year eps) 2015 free cash flow still expected to be at least $1.0 billion.
6:23 am Stanley Black & Decker beats by $0.12, beats on revs; reaffirms FY15 EPS guidance (SWK) : Reports Q1 (Mar) earnings of $1.07 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.95; revenues rose 0.5% year/year to $2.63 bln vs the $2.6 bln consensus, positive volume (+7%) and price (+1%) were substantially offset by currency (-7%).
Co reaffirms guidance for FY15, sees EPS of $5.65-5.85 vs. $5.75 Capital IQ Consensus. Despite $60 to $70 million ($0.30 to $0.35 per share) in new, incremental foreign currency om pressure year over year currency-related eps headwinds included in full year guidance now total $1.00 to $1.10 (19% to 20% of prior year eps) 2015 free cash flow still expected to be at least $1.0 billion.
The "Street" has SWK coming in at 1.02 for the quarter that should be reported on or about April 23, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has SWK coming in at 1.02 for the quarter that should be reported on or about April 23, 2015! All post's welcome! The "Good Dr's In"!
8:04 am AZZ beats by $0.04, misses on revs; guides FY16 EPS in-line, revs in-line (AZZ) : Reports Q4 (Feb) earnings of $0.63 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 0.7% year/year to $182.3 mln vs the $187.41 mln consensus. Co issues in-line guidance for FY16, sees EPS of $2.75-3.25 vs. $2.97 Capital IQ Consensus Estimate; sees FY16 revs of $875-925 mln vs. $889.95 mln Capital IQ Consensus Estimate.
Industry Comments
"As I noted on the last call, our markets remained mixed during the fourth quarter and our Galvanizing and Energy businesses were impacted by severe weather conditions resulting in delays. Within the Energy segment, WSI was impacted by the refinery strikes that slightly reduced the amount of work completed during available turnarounds. We are seeing improvements in our quoting activity within our Energy business segment, resulting in improved backlog and we anticipate further improvements in our core markets during fiscal 2016. Although we are seeing a slight impact on a couple of our businesses due to lower oil prices and reduced rig count, we continue to see a number of opportunities for growth in most of our businesses".
It was .19
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8:04 am AZZ beats by $0.04, misses on revs; guides FY16 EPS in-line, revs in-line (AZZ) : Reports Q4 (Feb) earnings of $0.63 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.59; revenues rose 0.7% year/year to $182.3 mln vs the $187.41 mln consensus. Co issues in-line guidance for FY16, sees EPS of $2.75-3.25 vs. $2.97 Capital IQ Consensus Estimate; sees FY16 revs of $875-925 mln vs. $889.95 mln Capital IQ Consensus Estimate.
Industry Comments
"As I noted on the last call, our markets remained mixed during the fourth quarter and our Galvanizing and Energy businesses were impacted by severe weather conditions resulting in delays. Within the Energy segment, WSI was impacted by the refinery strikes that slightly reduced the amount of work completed during available turnarounds. We are seeing improvements in our quoting activity within our Energy business segment, resulting in improved backlog and we anticipate further improvements in our core markets during fiscal 2016. Although we are seeing a slight impact on a couple of our businesses due to lower oil prices and reduced rig count, we continue to see a number of opportunities for growth in most of our businesses".
They missed as reported yesterday.
4:10 pm Yahoo! misses by $0.03, misses on revs (YHOO) : Reports Q1 (Mar) earnings of $0.15 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.18; revenues fell 4.0% year/year to $1.04 bln vs the $1.05 bln consensus.
•"This quarter, we saw encouraging revenue growth of 8%, with display revenue growing a modest 2% and search growing 20% on a GAAP basis. Our mobile GAAP revenue reached $234 million in Q1, growing 61% year-over-year."
•Yahoo repurchased ~4 million shares of its common stock for $204 million and satisfied the $3.3 billion income tax liability related to the sale of Alibaba Group ADSs in 2014.
•Cash, cash equivalents, and marketable securities were $6.9 billion as of March 31, 2015
4:10 pm Yahoo! misses by $0.03, misses on revs (YHOO) : Reports Q1 (Mar) earnings of $0.15 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.18; revenues fell 4.0% year/year to $1.04 bln vs the $1.05 bln consensus.
•"This quarter, we saw encouraging revenue growth of 8%, with display revenue growing a modest 2% and search growing 20% on a GAAP basis. Our mobile GAAP revenue reached $234 million in Q1, growing 61% year-over-year."
•Yahoo repurchased ~4 million shares of its common stock for $204 million and satisfied the $3.3 billion income tax liability related to the sale of Alibaba Group ADSs in 2014.
•Cash, cash equivalents, and marketable securities were $6.9 billion as of March 31, 2015
4:10 pm Yahoo! misses by $0.03, misses on revs (YHOO) : Reports Q1 (Mar) earnings of $0.15 per share, $0.03 worse than the Capital IQ Consensus Estimate of $0.18; revenues fell 4.0% year/year to $1.04 bln vs the $1.05 bln consensus.
•"This quarter, we saw encouraging revenue growth of 8%, with display revenue growing a modest 2% and search growing 20% on a GAAP basis. Our mobile GAAP revenue reached $234 million in Q1, growing 61% year-over-year."
•Yahoo repurchased ~4 million shares of its common stock for $204 million and satisfied the $3.3 billion income tax liability related to the sale of Alibaba Group ADSs in 2014.
•Cash, cash equivalents, and marketable securities were $6.9 billion as of March 31, 2015
Jewett-Cameron Announces 2nd Quarter Financial Results
PR Newswire Jewett-Cameron Trading Company Ltd.
16 hours ago
????
NORTH PLAINS, Ore., April 13, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2015 ended February 28, 2015.
Sales for the second quarter of fiscal 2015 totaled $9.5 million compared to sales of $9.7 million for the second quarter of fiscal 2014. Income from operations was $466,704 compared to income of $408,818 for the quarter ended February 28, 2014. Net income was $283,560, or $0.11 per share, compared to net income of $237,398, or $0.08 per share, in the year-ago quarter.
For the six months ended February 28, 2015, sales totaled $17.5 million compared to sales of $17.7 million for the six months ended February 28, 2014. Net income was $611,347, or $0.23 per share, compared to net income of $569,977, or $0.18 per share, in the first six months of fiscal 2014.
"During the second quarter, we experienced delays in receiving certain products from our suppliers due to the West Coast port slowdowns", said CEO Don Boone. "These delays resulted in higher freight costs and, combined with the prolonged winter weather across much of the country, delayed many shipments to our customers."
These delays also resulted in higher inventory levels and a lower cash balance at the end of the period. As of February 28, 2015, the Company's cash position was $12 thousand, and there was $875 thousand borrowed against its $1.0 million line of credit. Subsequent to the end of the period, the Company increased the size of its line of credit to $3.0 million.
On February 17, 2015, the Company implemented a new share repurchase plan to purchase for cancellation up to 300,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. This amount represents approximately 11.6% of the 2,585,661 common shares outstanding. During the second quarter, no common shares were repurchased. Subsequent to the end of the period, during the month of March 2015, the Company repurchased 1,103 common shares under the Plan. The total cost was $11,406 at an average share price of $10.34 per share. The Plan will remain in place until August 14, 2015 but may be limited or terminated at any time without prior notice.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. Jewett-Cameron Company's business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI-PRO is an importer and distributor of pneumatic air tools, industrial clamps, and the Avenger Products line of sawblades and other products. Jewett-Cameron Seed Company is a processor and distributor of agricultural seeds. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.
Forward-looking Statements
The information in this release contains certain forward-looking statements that anticipate future trends and events. These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks, including but not limited to, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry, and other factors detailed in the Company's SEC filings. Accordingly, actual results may differ, possibly materially, from predictions contained herein.
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
February 28,
2015
August 31,
2014
ASSETS
Current assets
Cash
$ 12,193
$ 4,327,540
Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)
5,034,076
2,442,928
Inventory, net of allowance of $90,384 (August 31, 2014 - $111,756) (note 3)
11,102,996
9,154,129
Note receivable
1,700
15,000
Prepaid expenses
825,437
762,533
Prepaid income taxes
214,617
546,347
Total current assets
17,191,019
17,248,477
Property, plant and equipment, net (note 4)
2,058,754
2,147,387
Intangible assets, net (note 5)
259,603
295,956
Total assets
$ 19,509,376
$ 19,691,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Bank Indebtedness (note 7)
$ 875,386
$ -
Accounts payable
189,777
240,825
Litigation reserve (note 13(a))
104,138
117,387
Accrued liabilities
764,236
1,073,930
Total current liabilities
1,933,537
1,432,142
Deferred tax liability (note 6)
58,263
60,972
Total liabilities
1,991,800
1,493,114
Contingent liabilities and commitments (note 13)
Stockholders' equity
Capital stock (note 8)
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
2,585,661 common shares (August 31, 2014 – 2,704,630)
1,220,064
1,276,201
Additional paid-in capital
600,804
600,804
Retained earnings
15,696,708
16,321,701
Total stockholders' equity
17,517,576
18,198,706
Total liabilities and stockholders' equity
$ 19,509,376
$ 19,691,820
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended
February 28,
Six Month
Period Ended
February 28,
2015
2014
2015
2014
SALES
$ 9,483,404
$ 9,732,649
$ 17,466,021
$17,738,930
COST OF SALES
7,581,284
7,974,979
13,693,878
14,131,481
GROSS PROFIT
1,902,120
1,757,670
3,772,143
3,607,449
OPERATING EXPENSES
Selling, general and administrative expenses
511,375
446,900
972,823
838,786
Depreciation and amortization
70,600
69,531
139,683
139,550
Wages and employee benefits
853,441
832,421
1,663,034
1,676,371
1,435,416
1,348,852
2,775,540
2,654,707
Income from operations
466,704
408,818
996,603
952,742
OTHER ITEMS
Gain on sale of property, plant and equipment
-
-
-
4,109
Interest and other income
7,188
6,612
14,083
13,273
7,188
6,612
14,083
17,382
Income before income taxes
473,892
415,430
1,010,686
970,124
Income tax expense
(190,332)
(178,032)
(399,339)
(400,147)
Net income
$ 283,560
$ 237,398
$ 611,347
$ 569,977
Basic earnings per common share
$ 0.11
$ 0.08
$ 0.23
$ 0.18
Diluted earnings per common share
$ 0.11
$ 0.08
$ 0.23
$ 0.18
Weighted average number of common shares outstanding:
Basic
2,585,661
3,129,764
2,637,587
3,132,365
Diluted
2,585,661
3,129,764
2,637,587
3,132,365
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended February 28,
Six Month
Period Ended February 28,
2015
2014
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 283,560
$ 237,398
$ 611,347
$ 569,977
Items not involving an outlay of cash:
Depreciation and amortization
70,600
69,531
139,683
139,550
Gain on sale of property, plant and equipment
-
-
-
(4,109)
Deferred income taxes
(6,426)
(3,802)
(2,709)
(8,366)
Interest income on litigation
(6,588)
(6,588)
(13,249)
(13,249)
Changes in non-cash working capital items:
Increase in accounts receivable
(2,313,462)
(2,018,552)
(2,591,148)
(911,509)
(Increase) decrease in inventory
(358,245)
846,025
(1,948,867)
992,265
(Increase) decrease in note receivable
(1,700)
-
13,300
15,000
Increase in prepaid expenses
(255,461)
(1,205,662)
(62,904)
(1,501,225)
(Increase) decrease in prepaid income taxes
126,559
(448,288)
331,730
(221,609)
Increase (decrease) in accounts payable and
accrued liabilities
(373,590)
837,196
(360,742)
(908,722)
Net cash used in operating activities
(2,834,753)
(1,692,742)
(3,883,559)
(1,851,997)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(13,417)
(17,457)
(14,697)
(75,375)
Proceeds from sale of property, plant and
equipment
-
-
-
4,800
Net cash used in investing activities
(13,417)
(17,457)
(14,697)
(70,575)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness
875,386
-
875,386
-
Redemption of common stock
-
(569,019)
(1,292,477)
(569,019)
Net cash provided by (used in) financing activities
875,386
(569,019)
(417,091)
(569,019)
Net decrease in cash
(1,972,784)
(2,279,218)
(4,315,347)
(2,491,591)
Cash, beginning of period
1,984,977
8,096,072
4,327,540
8,308,445
Cash, end of period
$ 12,193
$ 5,816,854
$ 12,193
$ 5,816,854
Contact: Don Boone, President & CEO, (503) 647-0110
The "Street" has KKR coming in at .62 for the quarter that should be reported on or about April 23, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has KKR coming in at .62 for the quarter that should be reported on or about April 23, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has KKR coming in at .62 for the quarter that should be reported on or about April 23, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has WETF coming in at .11 for the quarter that should be reported on or about April 30, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has WETF coming in at .11 for the quarter that should be reported on or about April 30, 2015! All post's welcome! The "Good Dr's In"!
The "Street" has NTRS coming in at .90 for the quarter that should be reported on or about April 21, 2015! All post's welcome! The "Good Dr's In"!
TTI Reports Record Sales, Gross Margin And Profit For 2014
Driven by New Product Innovations and Growth in All Geographic Regions, Sales Increases 10.5% and Profit Increases 20.0%
PR Newswire Techtronic Industries Co. Ltd.
March 18, 2015 10:16 AM
????
HONG KONG, March 18, 2015 /PRNewswire/ -- Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. ("TTI"/ The Group) (stock code: 669, ADR symbol: TTNDY) announced its results for the financial year ended December 31, 2014, achieving record sales, gross margin and profit. Shareholders' profits grew by 20.0% to US$300 million, with earnings per share increasing by 20.0% over 2013 to US 16.41 cents. Driven by new product innovations and growth in all geographic regions, sales rose by 10.5% over 2013 to a record US$4.8 billion.
TTI's largest business unit, Power Equipment, grew in sales by 13.0% to US$3.6 billion, accounting for 74.7% of total sales, and improved operating profit by 16.7% compared to 2013. The Floor Care and Appliance business grew 3.8% to US$1.2 billion in sales with operating profit expanding 15.4% from last year. Gross profit margin improved for the sixth consecutive year to 35.2% from 34.2% in 2013 driven by the introduction of new products along with our global cost improvement initiatives in purchasing, supply chain, value engineering and manufacturing. 2014 earnings before interest and tax increased by 15.4% to US$351 million, with the margin improving by 30 basis points to 7.4%. The Board is recommending a final dividend of HK19.00 cents (approximately US2.45 cents) per share, which will result in a full-year dividend 32.6% higher than last year.
Mr. Horst Pudwill, Chairman of TTI, said, "TTI had an outstanding year in 2014, and I am delighted to report record sales, gross margin and profit. Our focus on product innovation and execution allows us to deliver consistently strong results, and will continue to drive our future success."
Mr. Joseph Galli, CEO of TTI, commented, "We enter 2015 with our strongest product lineup ever and are at the forefront of the shift to lithium cordless products across the industrial and consumer tool, outdoor products and floor care segments. Superior products, a disciplined operational approach, and a passionately committed team are central to our identity, and will continue to propel our growth."
Highlights
2014
US$
million
2013
US$
million
Changes
Turnover
4,753
4,300
+10.5%
Gross profit margin
35.2%
34.2%
+100 bpt
EBIT
351
304
+15.4%
Profit attributable to Owners of the Company
300
250
+20.0%
Basic earnings per share (US cents)
16.41
13.68
+20.0%
Dividend per share (approx. US cents)
4.05
3.06
+32.6%
Sales increased 10.5% to a record US$4.8 billion
Our high margin Milwaukee Industrial Tool business grew 22.2% globally, delivering a 3 year CAGR +20%
Growth in all geographic regions
Gross profit margin expanded 100 basis points
Net profit increased 20.0% for the year, delivering double digit growth for seven consecutive years
Efficient working capital management at 14.6% of sales
About TTI
Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world-class leader in quality consumer, professional and industrial products marketed to the home improvement, hardware, and construction industries. An unrelenting strategic focus on Powerful Brands, Innovative Products, Exceptional People and Operational Excellence drives our success. TTI's powerful brand portfolio includes MILWAUKEE, AEG® and RYOBI® power tools, accessories and hand tools, RYOBI® and HOMELITE outdoor products, EMPIRE layout and measurement products, and HOOVER, ORECK , VAX and DIRT DEVIL Floor Care and Appliances.
TTI is one of the constituent stocks of the MSCI Hong Kong Index (Mid Cap security) under MSCI Global Standard Index. The Company is also one of the constituents on the Hang Seng Consumer Goods Index under the Hang Seng Composite Industry Index, Hang Seng Composite MidCap Index under the Hang Seng Composite Size Index, Hang Seng Global Composite Index, Hang Seng Broad Consumption Index, Hang Seng HK 35, FTSE Multinationals Index, classified as a Hong Kong Stock, FTSE RAFI All-World 3000 Index and FTSE Hong Kong Index and classified as a Large Cap stock in FTSE Global All Cap Index. For more information, please visit www.ttigroup.com.
MILWAUKEE, HOMELITE, EMPIRE, HOOVER, ORECK, VAX and DIRT DEVIL are trademarks of the TTI Group. AEG® is a registered trademark of AB Electrolux (publ) and is used by the TTI Group pursuant to a license granted by AB Electrolux (publ). RYOBI® is a registered trademark of Ryobi Limited and is used by the TTI Group pursuant to a license granted by Ryobi Limited.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tti-reports-record-sales-gross-margin-and-profit-for-2014-300052397.html
You have been paying a premium for it for over 18 months. You just have to continue to be patient with it and it will will come back into buying range.
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RCI Hospitality Announces Record Quarterly Club & Restaurant Sales for 2Q15
- Total Club & Restaurant Sales of $36.7 Million - Up 12.7% vs. 2Q14
- Same Store Sales of $29.1 Million - Up 2.1% vs. 2Q14
PR Newswire RCI Hospitality Holdings, Inc.
April 9, 2015 9:00 AM
????
HOUSTON, April 9, 2015 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (RICK) today announced total sales at adult clubs and restaurant/bars for the second fiscal quarter ended March 31, 2015. RCI expects to announce 2Q15 results on May 11, 2015.
View photo
.RCI HOSPITALITY HOLDINGS INC
Total club and restaurant sales reached $36.7 million – a quarterly record – compared to $32.6 million in the year ago quarter.
Same store sales were $29.1 million compared to $28.5 million in the year ago quarter.
There were 44 units in 2Q15 (39 adult clubs and nightclubs and 5 restaurants) versus 43 in 2Q14 (41 adult clubs and nightclubs and 2 restaurants).
Nightclub segment sales (includes adult clubs and nightclubs) totaled $31.9 million compared to $31.2 million in 2Q14.
Bombshells segment sales totaled $4.8 million compared to $1.4 million in 2Q14.
CEO Comment
Eric Langan, President and CEO, commented, "We are very pleased Fiscal 2015 continues to perform well, in line with our plans. Average revenue per unit increased 10.2% year over year. This reflected the closing of four older, under-performing units and the addition of five with higher revenues.
"Units opened less than a year benefited from new adult clubs – Rick's Cabaret in Odessa, TX and the recently acquired Down in Texas Saloon in Austin, TX. New store sales also benefited from Bombshells in Austin, Spring and Houston, TX.
"Same store sales reflected growth at many clubs. This was partially offset by adverse weather in March, especially in the Dallas-Fort Worth market, where the company has 11 locations. New York City units had difficult comparisons to the year ago quarter, when the pro football championship was played locally."
About RCI Hospitality Holdings, Inc. (RICK)
With 44 units, RCI Hospitality Holdings, Inc., through its subsidiaries is the country's leading company in adult gentlemen clubs and restaurant/bars. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Restaurant/bars operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/
Forward-Looking Statements
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to the operational and financial results of our Web sites, conditions relevant to real estate transactions, and numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
*All references to, the "company," "we," "our," and similar terms include RCI Hospitality Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.
Logo - http://photos.prnewswire.com/prnh/20140805/133696
Sonic Doubles Earnings Per Share for Second Fiscal Quarter of 2015
Same-Store Sales Increase 11.5%
Business Wire Sonic Corp.
March 24, 2015 4:01 PM
????
OKLAHOMA CITY--(BUSINESS WIRE)--
Sonic Corp. (SONC), the nation’s largest chain of drive-in restaurants, today announced results for the second fiscal quarter ended February 28, 2015.
Key highlights of the company’s second quarter of fiscal year 2015 included:
Net income per diluted share was $0.14 compared with net income per diluted share of $0.07 in the prior-year period; excluding items outlined below, net income per diluted share was $0.13 in the second fiscal quarter of 2015, resulting in an 86% increase, on an adjusted basis;
System same-store sales increased 11.5%, consisting of an 11.5% same-store sales increase at franchise drive-ins and an increase of 11.2% at company drive-ins;
Company drive-in margins improved by 110 basis points; and
The company repurchased $75 million of stock through accelerated stock repurchase transactions representing approximately 4% of its outstanding stock.
“Successful company initiatives combined with an improving macro environment resulted in an exceptionally strong second fiscal quarter with 11.5% same-store sales growth. We are particularly pleased that traffic drove two-thirds of our same-store sales increase,” said Cliff Hudson, Sonic Corp. CEO. “This increase is primarily a result of growth in our core menu items and product innovation, complemented by our national media strategy. As we move into the second half of fiscal 2015 we expect our business momentum to continue. In addition, we expect technology initiatives to provide an additional layer of growth to build sales and profits over the next several years.
“We also executed accelerated share repurchase agreements during the second quarter to purchase $75 million of stock. Our fiscal year-to-date share repurchases now total $95 million, representing approximately 5% of our outstanding shares as of the beginning of the fiscal year. Since our current repurchase program began in fiscal 2012, we have repurchased nearly $242 million of stock representing 23% of our outstanding shares. We have completed these repurchases while strengthening our balance sheet, which reflects the stability of our franchise business model.
"We will continue to focus on our multi-layered growth strategy, which incorporates same-store sales growth, leverage from higher sales, deployment of free cash flow1, increasing royalty revenues and new drive-in development, to build shareholder value. We believe all of these initiatives will enable us to continue to achieve double-digit earnings per share growth for the next several years," concluded Mr. Hudson.
Same-Store Sales
For the second fiscal quarter ended February 28, 2015, system same-store sales increased 11.5%, which was comprised of an 11.5% same-store sales increase at franchise drive-ins and an increase of 11.2% at company drive-ins.
Financial Overview
For the second fiscal quarter of 2015, the company’s net income increased to $7.7 million or $0.14 per diluted share compared with net income of $4.1 million or $0.07 per diluted share in the same period in the prior year. Excluding a $0.7 million tax benefit representing the retroactive reinstatement of the Work Opportunity Tax Credit (WOTC) for fiscal 2014, earnings per share increased 86%.
The following non-GAAP adjustment is intended to supplement the presentation of the company’s financial results in accordance with GAAP. The company believes that the presentation of this item provides useful information to investors and management regarding the underlying business trends and the performance of the company’s ongoing operations and is helpful for period-to-period and company-to-company comparisons, which management believes will assist investors in analyzing the financial results of the company and predicting future performance.
Three months ended Three months ended
February 28, 2015 February 28, 2014
Net Diluted Net Diluted Net Income Diluted EPS
Income EPS Income EPS $ Change % Change $ Change % Change
Reported – GAAP $ 7,662 $ 0.14 $ 4,107 $ 0.07 $ 3,555 87 % $ 0.07 100 %
Retroactive tax benefit of WOTC
and resolution of tax matters
(666 ) (0.01 ) - -
Adjusted - Non-GAAP
$ 6,996 $ 0.13 $ 4,107 $ 0.07 $ 2,889 70 % $ 0.06 86 %
For the first six months of fiscal 2015, net income totaled $17.7 million or $0.32 per diluted share compared with net income of $12.3 million or $0.21 per diluted share for the same period in 2014. Excluding the items outlined below, net income and net income per diluted share increased 44% and 55%, respectively.
Six months ended Six months ended
February 28, 2015 February 28, 2014
Net Diluted Net Diluted Net Income Diluted EPS
Income EPS Income EPS $ Change % Change $ Change % Change
Reported – GAAP $ 17,747 $ 0.32 $ 12,315 $ 0.21 $ 5,432 44 % $ 0.11 52 %
Tax benefit from the IRS'
acceptance of a federal tax method
change
- - (484 ) (0.01 )
Retroactive tax benefit of WOTC
and resolution of tax matters
(666 ) (0.01 ) - -
Adjusted - Non-GAAP $ 17,081 $ 0.31 $ 11,831 $ 0.20 $ 5,250 44 % $ 0.11 55 %
Fiscal Year 2015 Outlook
The company expects its initiatives to drive 25% to 27% earnings per share growth, on an adjusted basis, in fiscal 2015 as compared to the adjusted non-GAAP earnings per share for fiscal 2014. The macroeconomic environment may impact results. The outlook for the second half of fiscal 2015 anticipates the following elements:
Positive same-store sales in the low to mid-single digit range for the system for the third and fourth fiscal quarters;
Company drive-in same-store sales growth expected to outperform franchisees as a result of the recent implementation of new digital menu boards and point-of-sale systems;
Incremental royalty revenue growth from same-store sales improvements, new unit development, and 900 drive-ins converting to a higher royalty rate structure at the beginning of fiscal 2015;
34 to 44 new franchise drive-in openings, resulting in net unit growth for the system;
Drive-in-level margin improvement of between 100 to 150 basis points, reflecting an improving outlook for commodity cost inflation and leverage from company drive-in same-store sales growth;
Selling, general and administrative expenses of $39.5 million to $40.5 million, reflecting increased investment in human resources to support the brand initiatives described above;
Depreciation and amortization expense of $23 million to $23.5 million;
Net interest expense of $13 million to $13.5 million; and
An income tax rate of between 36% and 37%, reflecting the benefit of various ongoing tax credit programs.
The company anticipates the following elements for fiscal 2015:
Capital expenditures of $30 million to $40 million;
Free cash flow of $70 million to $80 million;
The planned repurchase of $105 million of stock; and
A quarterly cash dividend of $0.09 per share resulting in an estimated payout of $19 million.
Earnings Conference Call
The company will host a conference call and online web simulcast this afternoon beginning at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (877) 340-7912 or (719) 325-4765 for international callers. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 2813890. The replay will be available until Tuesday, March 31, 2015. An online replay of the conference call will be available approximately two hours after the conclusion of the live broadcast. A link to this event may be found on the company's investor relations website at http://ir.sonicdrivein.com/.
About Sonic
SONIC®, America’s Drive-In®, is the nation's largest drive-in restaurant chain serving more than 3 million customers every day. Nearly 90 percent of SONIC’s 3,500 drive-in locations are owned and operated by local business men and women. Over the past 60 years, SONIC has delighted guests with signature menu items, more than 1.3 million drink combinations and friendly service by iconic Carhops. To learn more about Sonic Corp. (NASDAQ/NM: SONC), please visit sonicdrivein.com or follow us on Facebook and Twitter.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those expressed in, or underlying, these forward-looking statements are detailed in the company’s annual and quarterly report filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.
The tables that follow provide information regarding the number of company drive-ins, franchise drive-ins and system drive-ins in operation as of the end of the periods indicated. In addition, these tables provide information regarding franchise sales, system growth in sales, and both franchise and system average drive-in sales and change in same-store sales. System information includes both company and franchise drive-in information, which we believe is useful in analyzing the growth of our brand. While we do not record franchise drive-in sales as revenues, we believe this information is important in understanding our financial performance since we calculate and record franchise royalties based on a percentage of franchise sales. This information also is indicative of the financial health of our franchisees.
1 Free cash flow is defined as net income plus depreciation, amortization and stock compensation expenses, less capital expenditures.
SONC-F
SONIC CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three months ended Six months ended
February 28, February 28,
2015 2014 2015 2014
Revenues:
Company Drive-In sales $ 92,309 $ 81,848 $ 192,447 $ 175,347
Franchise Drive-Ins:
Franchise royalties and fees 32,407 26,582 70,671 57,803
Lease revenue 979 715 2,044 1,601
Other 524 596 913 1,642
Total revenues 126,219 109,741 266,075 236,393
Costs and expenses:
Company Drive-Ins:
Food and packaging 25,828 23,043 54,401 49,279
Payroll and other employee benefits 33,880 30,031 69,151 63,371
Other operating expenses, exclusive of
depreciation and amortization included below 19,924 18,437 42,529 40,244
Total cost of Company Drive-In sales 79,632 71,511 166,081 152,894
Selling, general and administrative 18,138 15,886 36,926 32,891
Depreciation and amortization 11,539 10,031 23,199 20,065
Other operating (income) expense, net (81 ) (36 ) 340 (165 )
Total costs and expenses 109,228 97,392 226,546 205,685
Income from operations 16,991 12,349 39,529 30,708
Interest expense 6,318 6,384 12,599 12,767
Interest income (97 ) (144 ) (199 ) (261 )
Net interest expense 6,221 6,240 12,400 12,506
Income before income taxes 10,770 6,109 27,129 18,202
Provision for income taxes 3,108 2,002 9,382 5,887
Net income $ 7,662 $ 4,107 $ 17,747 $ 12,315
Basic income per share $ 0.14 $ 0.07 $ 0.33 $ 0.22
Diluted income per share $ 0.14 $ 0.07 $ 0.32 $ 0.21
Weighted average basic shares 53,171 55,958 53,226 56,125
Weighted average diluted shares 54,660 57,408 54,744 57,653
SONIC CORP.
Unaudited Supplemental Information
Three months ended Six months ended
February 28, February 28,
2015 2014 2015 2014
Drive-Ins in Operation
Company:
Total at beginning of period 389 388 391 396
Opened - - 1 -
Acquired from (sold to) franchisees 3 - 1 (7 )
Closed (net of re-openings) - - (1 ) (1 )
Total at end of period 392 388 392 388
Franchise:
Total at beginning of period 3,128 3,129 3,127 3,126
Opened 4 6 16 13
Acquired from (sold to) the company (3 ) - (1 ) 7
Closed (net of re-openings) (13 ) (16 ) (26 ) (27 )
Total at end of period 3,116 3,119 3,116 3,119
System-wide:
Total at beginning of period 3,517 3,517 3,518 3,522
Opened 4 6 17 13
Closed (net of re-openings) (13 ) (16 ) (27 ) (28 )
Total at end of period 3,508 3,507 3,508 3,507
Three months ended Six months ended
February 28, February 28,
2015 2014 2015 2014
($ in thousands) ($ in thousands)
Sales Analysis
Company Drive-Ins:
Total sales $ 92,309 $ 81,848 $ 192,447 $ 175,347
Average drive-in sales 237 213 496 452
Change in same-store sales 11.2 % 1.3 % 9.5 % 1.6 %
Franchised Drive-Ins:
Total sales $ 818,601 $ 725,270 $ 1,732,254 $ 1,559,540
Average drive-in sales 267 235 561 502
Change in same-store sales 11.5 % 1.5 % 9.8 % 1.8 %
System-wide:
Change in total sales 12.8 % 0.8 % 10.9 % 1.5 %
Average drive-in sales $ 264 $ 234 $ 554 $ 499
Change in same-store sales 11.5 % 1.4 % 9.8 % 1.8 %
Note: Change in same-store sales based on restaurants open for a minimum of 15 months.
SONIC CORP.
Unaudited Supplemental Information
Three months ended Six months ended
February 28, February 28,
2015 2014 2015 2014
(In thousands) (In thousands)
Revenues
Company Drive-In sales $ 92,309 $ 81,848 $ 192,447 $ 175,347
Franchise Drive-Ins:
Franchise royalties 32,236 26,376 69,012 57,288
Franchise fees 171 206 1,659 515
Lease revenue 979 715 2,044 1,601
Other 524 596 913 1,642
Total revenues $ 126,219 $ 109,741 $ 266,075 $ 236,393
Three months ended Six months ended
February 28, February 28,
2015 2014 2015 2014
Margin Analysis (percentage of Company Drive-In sales)
Company Drive-Ins:
Food and packaging 28.0 % 28.2 % 28.3 % 28.1 %
Payroll and employee benefits 36.7 36.7 35.9 36.1
Other operating expenses 21.6 22.5 22.1 23.0
Cost of Company Drive-In sales 86.3 % 87.4 % 86.3 % 87.2 %
February 28, August 31,
2015 2014
(In thousands)
Selected Balance Sheet Data
Cash and cash equivalents $ 27,232 $ 35,694
Current assets 78,720 95,712
Property, equipment and capital leases, net 434,678 441,969
Total assets $ 625,812 $ 650,972
Current liabilities, including capital lease obligations and
long-term debt due within one year $ 64,975 $ 79,511
Obligations under capital leases due after one year 22,367 23,050
Long-term debt due after one year 471,131 427,527
Total liabilities 626,143 588,297
Stockholders' equity (deficit) $ (331 ) $ 62,675
Contact:
Sonic Corp.
Claudia San Pedro, 405-225-4846
Vice President of Investor Relations
Communications and Treasurer
WD-40 Company Reports Second Quarter 2015 Financial Results
~ Second quarter net sales of multi-purpose maintenance products grew 3 percent period-over-period
~~ Management updates previously issued guidance in view of current foreign currency exchange conditions
PR Newswire WD-40 Company
10 hours ago
????
SAN DIEGO, April 8, 2015 /PRNewswire/ -- WD-40 Company (WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its second fiscal quarter ended February 28, 2015.
Financial Highlights and Summary
Total net sales for the second quarter were $97.3 million, an increase of 3 percent compared to the prior year fiscal quarter. Year-to-date total net sales were $193.7 million, an increase of 2 percent from the prior year fiscal period.
Translation of the Company's foreign subsidiary results to U.S. dollars had an unfavorable impact on sales for the current quarter and year to date. On a constant currency basis total net sales would have been $100.6 million for the second quarter and $196.3 million year to date.
Net income for the second quarter was $11.3 million, an increase of 10 percent compared to the prior year fiscal quarter. Year-to-date net income was $22.1 million, an increase of 1 percent from the prior year fiscal period.
Diluted earnings per share were $0.76 in the second quarter, compared to $0.67 per share for the prior year fiscal quarter. Year-to-date diluted earnings per share were $1.49 compared to $1.41 in the prior year fiscal period.
Gross margin was 52.6 percent in the second quarter compared to 51.6 percent in the prior year fiscal quarter. Year-to-date gross margin was 52.1 percent compared to 51.8 percent in the prior year fiscal period.
Selling, general and administrative expenses were up 3 percent in the second quarter to $27.4 million when compared to the prior year fiscal quarter. Year-to-date selling, general and administrative expenses were also up 3 percent to $54.8 compared to the prior year fiscal period.
Advertising and sales promotion expenses were down 9 percent in the second quarter to $5.5 million compared to prior year fiscal quarter. Year-to-date advertising and sales promotion expenses were down 2 percent to $11.4 million compared to the prior year fiscal period.
"We are pleased with the solid performance of our underlying business this quarter and are more confident than ever that our strategic initiatives are well positioned to carry us into the future" said Garry Ridge, WD-40 Company's president and chief executive officer. "In constant currency our total global sales grew 7 percent in the second quarter and 4 percent in the first half of our fiscal year. We can't control most of the impact that fluctuating foreign currency exchange rates have on our reported results but we will not let it distract us. Our hard working tribe will remain focused and we expect to deliver a strong finish to fiscal year 2015."
Net Sales by Product Group (in thousands):
Three Months Ended February 28,
Six Months Ended February 28,
2015
2014
%
Change
2015
2014
%
Change
Multi-purpose maintenance products
$
86,589
$
83,804
3%
$
171,493
$
167,790
2%
Homecare and cleaning products
10,742
10,380
3%
22,191
21,935
1%
Total
$
97,331
$
94,184
3%
$
193,684
$
189,725
2%
Net sales of multi-purpose maintenance products, which are considered the primary growth focus for the Company, grew 3 percent in the second fiscal quarter and 2 percent year to date when compared to the prior fiscal year periods. This growth was driven primarily by strong WD-40 Multi-Use Product sales in Asia-Pacific.
Net sales of homecare and cleaning products increased 3 percent in the current quarter and 1 percent year to date when compared to the prior fiscal year periods. The homecare and cleaning products, particularly those in the U.S., are considered harvest brands providing healthy profit returns to the Company and are becoming a smaller part of the business as net sales of multi-purpose maintenance products grow per the execution of the Company's strategic initiatives.
Net Sales by Segment (in thousands):
Three Months Ended February 28,
Six Months Ended February 28,
2015
2014
%
Change
2015
2014
%
Change
Americas
$
44,702
$
45,208
(1)%
$
89,475
$
89,270
-
EMEA
38,679
38,111
1%
73,270
74,627
2%
Asia-Pacific
13,950
10,865
28%
30,939
25,828
20%
Total
$
97,331
$
94,184
3%
$
193,684
$
189,725
2%
Net sales by segment as a percent of total net sales for the second quarter were as follows: for the Americas, 46 percent; for EMEA, 40 percent; and for Asia-Pacific, 14 percent.
The decrease in sales in the Americas in the second quarter was primarily due to lower sales of WD-40 Multi-Use Product in the United States and Latin America as a result of the timing of promotional activities.
The increase in sales in EMEA in the second quarter was primarily due to strong sales of WD-40 Multi-Use Product in the distributor markets in Northern Europe and the Middle East, which were partially offset by decreased sales in Eastern Europe due to the political crisis in Ukraine and Russia. The increases in the distributor market sales were offset by decreased sales in the direct markets in Europe which were primarily due to the unfavorable impacts of foreign currency exchange rates. On a constant currency basis EMEA sales for the second quarter would have increased by $3.1 million or 8% compared to the prior year fiscal year period.
The increase in sales in Asia-Pacific in the second quarter was primarily due to strong sales of WD-40 Multi-Use Product throughout the distributor markets, including those in South Korea, Singapore and Indonesia, and the continued growth of the WD-40 Specialist product line. Sales in China also increased in the second quarter due to expanded distribution of WD-40 Multi-Use Product.
Dividend and Share Repurchase
As previously announced, WD-40 Company's board of directors declared on Tuesday, March 24, 2015 a quarterly dividend of $0.38 per share payable April 30, 2015 to stockholders of record at the close of business on April 16, 2015.
On June 18, 2013, the board of directors approved a share repurchase plan that authorized the Company to acquire up to $60.0 million of its outstanding shares effective from August 1, 2013 through August 31, 2015. During the second quarter of fiscal year 2015, the Company repurchased an additional $4.7 million in shares under this plan. Since the plan's commencement on August 1, 2013, the Company has repurchased $60.0 million in shares under the plan. As a result, the Company has utilized the entire authorized amount and completed the repurchases under this share repurchase plan.
On October 14, 2014 the board of directors approved a new share repurchase plan. Under the plan, which is effective now that the Company's $60.0 million has been exhausted, the Company is authorized to acquire up to $75.0 million of its outstanding shares through August 31, 2016. The timing and the amount of any repurchases of common stock will be determined by management based on its evaluation of market conditions and other factors. Through February 28, 2015, no repurchases were made under this $75.0 million plan.
Updated Fiscal Year 2015 Guidance
The Company's updated guidance for fiscal year 2015 is as follows:
Net sales growth is projected to be between 1 and 4 percent with net sales expected to be between $387 million and $400 million.
Gross margin for the full fiscal year is expected to be better than 52 percent.
Projected advertising and promotion expenses to be 6.0 percent to 7.0 percent of net sales.
Net income is projected to be between $45.1 million and $46.0 million.
Expect diluted earnings per share to be between $3.07 and $3.13 based on an estimated 14.7 million weighted average shares outstanding.
This guidance does not include any future acquisitions or divestitures and is based on recent foreign currency exchange rates.
"Our underlying business is performing in line with our previously issued guidance. However, in view of current foreign currency exchange conditions, we have updated our previously issued guidance," said Jay Rembolt, WD-40 Company's vice president and chief financial officer. "Foreign currency exchange fluctuations have impacted our business performance in the first half of the year and are expected to do so for the duration of the fiscal year."
"We also remain somewhat uncertain how the recent declines in the price of crude oil will embed into our financials over the long-term. We had a number of price increases planned for this fiscal year to offset the costs of implementing some new regulatory requirements, primarily in our Americas segment. However, the declines in the cost of crude oil have allowed us to delay these planned price increases. We will continue to monitor the situation closely" continued Rembolt.
Webcast Information
As previously announced, WD-40 Company management will host a live webcast at approximately 5:00 p.m. ET / 2:00 p.m. PT today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit http://investor.wd40company.com for more information and to view supporting materials.
About WD-40 Company
WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world. The Company markets its multi-purpose maintenance products and its homecare and cleaning products under the following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®.
Headquartered in San Diego, WD-40 Company recorded net sales of $383 million in fiscal year 2014 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select market under the ticker symbol "WDFC." For additional information about WD-40 Company please visit http://www.wd40company.com.
Forward-Looking Statements
Except for the historical information contained herein, this communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company's current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements.
Our forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: growth expectations for multi-purpose maintenance products; expected levels of promotional and advertising spending; plans for and success of product innovation, the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; and forecasted foreign currency exchange rates and commodity prices. Our forward-looking statements are generally identified with words such as "believe," "expect," "intend," "plan," "could," "may," "aim," "anticipate," "estimate" and similar expressions.
The Company's expectations, beliefs and forecasts are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company's expectations, beliefs or forecasts will be achieved or accomplished.
Actual events or results may differ materially from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I?Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2014, and in the Company's Quarterly Report on Form 10-Q for the period ended February 28, 2015 which the Company expects to file with the SEC on April 9, 2015.
All forward-looking statements included in this press release should be considered in the context of these risks. All forward-looking statements speak only as of April 8, 2015, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors and prospective investors are cautioned not to place undue reliance on our forward-looking statements.
Table Notes and General Definitions
(1)
The Company markets multi-purpose maintenance products under the WD-40®, GT85® and 3-IN-ONE® brand names. Currently included in the WD-40 brand are the WD-40 Multi-Use Product and the WD-40 Specialist® and WD-40 BIKE™ product lines.
(2)
The Company markets the following homecare and cleaning brands: X-14® mildew stain remover and automatic toilet bowl cleaners, 2000 Flushes® automatic toilet bowl cleaners, Carpet Fresh® and no vac® rug and room deodorizers, Spot Shot® aerosol and liquid carpet stain removers, 1001® household cleaners and rug and room deodorizers and Lava® and Solvol® heavy-duty hand cleaners.
(3)
The Americas segment consists of the U.S., Canada and Latin America.
(4)
The EMEA segment consists of countries in Europe, the Middle East, Africa and India.
(5)
The Asia-Pacific segment consists of Australia, China and other countries in the Asia region.
(6)
Constant currency represents the translation of the current quarter and year-to-date results from the functional currencies of the Company's subsidiaries to U.S. dollars using the exchange rate in effect for the corresponding periods of the prior fiscal year.
WD-40 COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except share and per share amounts)
February 28,
August 31,
2015
2014
Assets
Current assets:
Cash and cash equivalents
$
43,701
$
57,803
Short-term investments
42,056
45,050
Trade and other accounts receivable, less allowance for doubtful accounts of $523 and $406 at February 28, 2015 and August 31, 2014, respectively
71,575
63,618
Inventories
34,677
34,989
Current deferred tax assets, net
5,712
5,855
Other current assets
5,666
8,339
Total current assets
203,387
215,654
Property and equipment, net
10,215
9,702
Goodwill
96,444
95,499
Other intangible assets, net
24,511
23,671
Other assets
3,164
3,154
Total assets
$
337,721
$
347,680
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$
23,049
$
18,031
Accrued liabilities
16,795
18,382
Revolving credit facility
103,000
98,000
Accrued payroll and related expenses
8,194
15,969
Income taxes payable
593
1,529
Total current liabilities
151,631
151,911
Long-term deferred tax liabilities, net
23,283
24,253
Other long-term liabilities
2,255
2,101
Total liabilities
177,169
178,265
Commitments and Contingencies
Shareholders' equity:
Common stock ? authorized 36,000,000 shares, $0.001 par value; 19,508,893 and 19,464,310 shares issued at February 28, 2015 and August 31, 2014, respectively; and 14,598,538 and 14,754,362 shares outstanding at February 28, 2015 and August 31, 2014, respectively
20
19
Additional paid-in capital
138,632
136,212
Retained earnings
249,109
237,596
Accumulated other comprehensive income (loss)
(7,143)
1,103
Common stock held in treasury, at cost ? 4,910,355 and 4,709,948 shares at February 28, 2015 and August 31, 2014, respectively
(220,066)
(205,515)
Total shareholders' equity
160,552
169,415
Total liabilities and shareholders' equity
$
337,721
$
347,680
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per share amounts)
Three Months Ended February 28,
Six Months Ended February 28,
2015
2014
2015
2014
Net sales
$
97,331
$
94,184
$
193,684
$
189,725
Cost of products sold
46,098
45,626
92,750
91,494
Gross profit
51,233
48,558
100,934
98,231
Operating expenses:
Selling, general and administrative
27,360
26,651
54,784
53,350
Advertising and sales promotion
5,485
6,001
11,400
11,616
Amortization of definite-lived intangible assets
757
654
1,526
1,246
Total operating expenses
33,602
33,306
67,710
66,212
Income from operations
17,631
15,252
33,224
32,019
Other income (expense):
Interest income
178
158
312
289
Interest expense
(275)
(226)
(569)
(441)
Other expense
(1,443)
(229)
(1,341)
(443)
Income before income taxes
16,091
14,955
31,626
31,424
Provision for income taxes
4,758
4,638
9,507
9,625
Net income
$
11,333
$
10,317
$
22,119
$
21,799
Earnings per common share:
Basic
$
0.77
$
0.67
$
1.50
$
1.42
Diluted
$
0.76
$
0.67
$
1.49
$
1.41
Shares used in per share calculations:
Basic
14,636
15,202
14,652
15,241
Diluted
14,703
15,272
14,720
15,319
Dividends declared per common share
$
0.38
$
0.34
$
0.72
$
0.65
WD-40 COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
Six Months Ended February 28,
2015
2014
Operating activities:
Net income
$
22,119
$
21,799
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,247
2,849
Net gains on sales and disposals of property and equipment
(31)
(33)
Deferred income taxes
(1,046)
(335)
Excess tax benefits from settlements of stock-based equity awards
(587)
(820)
Stock-based compensation
1,636
1,479
Unrealized foreign currency exchange losses, net
1,745
132
Provision for bad debts
209
174
Changes in assets and liabilities:
Trade and other accounts receivable
(12,602)
(4,885)
Inventories
(408)
(1,387)
Other assets
2,332
(3,309)
Accounts payable and accrued liabilities
4,501
5,470
Accrued payroll and related expenses
(8,037)
(9,603)
Income taxes payable
318
2,744
Other long-term liabilities
100
32
Net cash provided by operating activities
13,496
14,307
Investing activities:
Purchases of property and equipment
(2,833)
(1,991)
Proceeds from sales of property and equipment
250
171
Purchase of intangible assets
-
(1,776)
Acquisition of business
(3,705)
-
Purchases of short-term investments
(1,831)
(5,643)
Maturities of short-term investments
1,673
908
Net cash used in investing activities
(6,446)
(8,331)
Financing activities:
Treasury stock purchases
(14,551)
(22,270)
Dividends paid
(10,606)
(9,973)
Proceeds from issuance of common stock
856
1,241
Excess tax benefits from settlements of stock-based equity awards
587
820
Proceeds from revolving credit facility
5,000
10,000
Net cash used in financing activities
(18,714)
(20,182)
Effect of exchange rate changes on cash and cash equivalents
(2,438)
1,734
Net decrease in cash and cash equivalents
(14,102)
(12,472)
Cash and cash equivalents at beginning of period
57,803
53,434
Cash and cash equivalents at end of period
$
43,701
$
40,962
The "Street" has AZZ coming in at .61 for the quarter that should be reported on or about March 02, 2015!
All post's welcome!
The "Good Dr's In"!
The "Street" has AZZ coming in at .61 for the quarter that should be reported on or about March 02, 2015!
All post's welcome!
The "Good Dr's In"!
SIFCO Industries, Inc. Signs Definitive Agreement to Acquire C*Blade; CFO to Return to Private Equity Industry
Business Wire SIFCO Industries, Inc.
March 17, 2015 4:30 PM
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CLEVELAND--(BUSINESS WIRE)--
SIFCO Industries, Inc. (NYSE MKT: SIF) announced today that it has entered into a definitive agreement to acquire the Italian-based company C*Blade from Riello Investment Partners. Closing will occur following satisfaction of certain conditions and regulatory approvals, currently anticipated by mid- 2015.
In an unrelated development, SIFCO also announced that Catherine M. Kramer, Vice President and Chief Financial Officer, will leave the Company, effective April 3, 2015, to return to the private equity industry.
C*Blade Acquisition
The C*Blade acquisition will deliver important strategic benefits to SIFCO’s target markets of aerospace and energy, including broader reach into the steam turbine market and an opportunity to sell C*Blade’s products in the U.S. market.
C*Blade has been in business for more than 50 years and specializes in the manufacture of steam turbine blades and gas compressor blades for the energy market. C*Blade is a best-in-class manufacturer of critical turbine components with strong machining capabilities and a long track record of serving both OEM and aftermarket customers. Located in Maniago, Italy, C*Blade has approximately 150 employees and annual revenues of approximately US $30 million. The acquisition is expected to be accretive to earnings.
“C*Blade enjoys a strong reputation for its design expertise and high quality products,” said Michael S. Lipscomb, Chairman and Chief Executive Officer. “We are delighted to have reached an agreement with the C*Blade team and plan to leverage their strong capabilities and competitive advantages to become an integral part of SIFCO’s growth strategy.”
Chief Financial Officer
Ms. Kramer has served in her current role since January 1, 2013. She joined the Company in 2012 as director of financial planning and analysis after spending four years at Greenstar Capital LLC, where she served as managing director and vice president of strategic planning.
“While we are disappointed that Kate will be leaving us, we understand and respect her decision to accept an opportunity in an area that has been an important part in shaping her career success,” said Mr. Lipscomb. “We thank her for her many contributions to SIFCO, and in particular for leading us through our first year as an accelerated filer in 2014, and wish her the very best.”
Mr. Lipscomb said a national search is underway for Ms. Kramer’s successor. “We are seeking an individual whose skills and experience support our strategic growth objectives, including global opportunities,” he said.
Corporate Controller Thomas R. Kubera will serve as interim Chief Financial Officer. Before joining SIFCO Industries in 2014, Mr. Kubera, a CPA, spent nine years at Cliffs Natural Resources, most recently as Controller - Global Operations Services.
Forward-Looking Language
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
The Company's Form 10-K for the year ended September 30, 2014 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission's website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production of forgings and machined components primarily for the aerospace and energy markets. The processes and services include forging, heat-treating, and machining.
Contact:
SIFCO Industries, Inc.
Michael S. Lipscomb, Chairman & CEO, 216-881-8600
www.sifco.com
Lakes Entertainment and Golden Gaming Announce Merger Agreement
Business Wire Lakes Entertainment, Inc.
January 26, 2015 6:30 AM
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Lakes Entertainment and Golden Gaming Announce Merger Agreement .
View photo
Lakes Entertainment and Golden Gaming Announce Merger Agreement
MINNEAPOLIS--(BUSINESS WIRE)--
Lakes Entertainment, Inc. (LACO) and Sartini Gaming, Inc. (“Golden Gaming”), which owns and operates Golden Gaming, LLC, announced today that they have entered into an Agreement and Plan of Merger (the “Merger Agreement”). Golden Gaming is a leading owner and operator of distributed gaming, taverns and casinos, all of which are focused on the Nevada local gaming market. At closing, Golden Gaming will combine with a wholly-owned subsidiary of Lakes Entertainment, Inc. (“Lakes”) with Golden Gaming surviving as a wholly-owned subsidiary of Lakes. Lakes will remain publicly traded and be renamed Golden Entertainment, Inc. upon closing.
Under the terms of the Merger Agreement, Lakes is valued at $9.57 per share (representing an approximate 37% premium to the closing share price for Lakes common stock on January 23, 2015), subject to working capital and various other adjustments under the Merger Agreement. The value of Golden Gaming under the Merger Agreement will be determined by multiplying 7.5 times Golden Gaming’s trailing twelve-month consolidated earnings before interest, taxes, depreciation and amortization, less debt and subject to working capital and various other adjustments. Based on current September 30, 2015 financial estimates and assumptions, the legacy Golden Gaming shareholder would be issued 7,858,145 shares of Lakes common stock under the Merger Agreement, which would represent approximately 35.7% of the total fully diluted post-merger shares of Lakes common stock. Lakes’ current shareholders (assuming the exercise of all outstanding options to acquire Lakes common stock) would retain approximately 64.3% of the total post-merger shares of Lakes common stock.
In addition, Lakes will seek to monetize non-core assets prior to closing. Lakes sold all of its interest in Rock Ohio Ventures, LLC to an unrelated third party pursuant to a Membership Interest Purchase Agreement, dated effective as of January 25, 2015, between Lakes and DG Ohio Ventures, LLC for $750,000. Additionally, Lakes shareholders (other than the legacy Golden Gaming shareholder, except with respect to taxes) will be entitled to a possible cash dividend related to any net proceeds the combined company receives from monetizing Lakes’ existing note receivable from the Jamul Indian Village, provided that the combined company enters into an agreement to monetize the note within three years after the merger closes, and receives any amounts due thereunder no later than three years after the Jamul casino opens.
Contemporaneous with entering into the Merger Agreement, Lakes has also amended and restated its Rights Agreement dated as of December 12, 2013, to preserve its ability to utilize approximately $89 million of federal net operating tax loss carryforwards by, among other things, lowering the voting securities ownership threshold of an acquiring person from 15% to 4.99%, and making such other changes which Lakes deemed necessary to effectuate the purposes of the Rights Agreement in light of the transactions contemplated by the Merger Agreement.
Blake L. Sartini, currently Chief Executive Officer of Golden Gaming, will be named the Chairman and Chief Executive Officer of the combined company at closing. Lyle Berman, currently Chairman and Chief Executive Officer of Lakes, will continue as a board member of, and will sign a three-year consulting agreement with, the combined company. Tim Cope, currently President and Chief Financial Officer of Lakes, will also continue as a board member of, and consultant to, the combined company.
“We are excited to announce this transaction, and are thrilled to partner with Golden Gaming, which has done an outstanding job of building a premier diversified gaming company in the state of Nevada,” said Mr. Berman. “The combination of our strong balance sheet and Rocky Gap asset, and Golden Gaming’s casinos and distributed gaming platform, makes the combined company truly unique in the marketplace. Lakes’ cash on hand will facilitate Golden Gaming’s pursuit of growth opportunities and the refinancing of its debt. We believe the combined company will be well positioned to expand not only in Nevada, which has the most stable tax and regulatory record in the country, but also into other jurisdictions.”
“We believe that this transaction establishes a truly diversified gaming company, uniquely positioned to capitalize on a wide spectrum of opportunities,” added Mr. Sartini. “Golden Gaming is the market leader in distributed gaming as well as tavern operations throughout Nevada, and is well positioned with our market leading casino resorts in Nye County. As a result, this merger with Lakes provides the opportunity to expand our business dramatically, both in and outside of Nevada, with the support of a strong balance sheet, the Rocky Gap asset in Maryland and an aggressive and experienced management team.”
Together, the combined company will operate approximately 9,250 slot machines and video lottery terminals in Nevada and Maryland across four casino properties, 48 taverns and over 600 route locations. Lakes and Golden Gaming estimate that on a combined pro forma basis 2015 annual net revenues and adjusted EBITDA will be $348.1 million and $42.5 million, respectively, including $3.0 million of anticipated cost synergies. Additionally, it is estimated that combined pro forma 2015 operating free cash flow and adjusted net income will be $33.7 million and $13.3 million, respectively, including a full year of the anticipated benefit of refinancing Lakes and Golden Gaming indebtedness.
The merger is anticipated to close by year-end 2015 and is subject to customary regulatory and other closing conditions being satisfied, including approval by Lakes’ shareholders of the issuance of the Lakes shares in connection with the merger.
Macquarie Capital is serving as Lakes’ exclusive financial advisor. Gray, Plant, Mooty, Mooty & Bennett, P.A. is serving as legal counsel to Lakes. Union Gaming Advisors, LLC is serving as Golden Gaming’s financial advisor. Latham & Watkins LLP is serving as legal counsel to Golden Gaming.
Conference Call
Lakes and Golden Gaming management will conduct a conference call to discuss the proposed transaction on Wednesday, January 28, 2015, at 12:00 p.m. Central Time. Interested parties may participate in the call by dialing 866-515-2910 and entering participant passcode 93064412.
The conference call will be webcast live via the Investor section of Lakes’ website at www.lakesentertainment.com. To listen to the live webcast please go to the website at least 15 minutes early to register, download and install any necessary audio software.
If you are unable to listen live, the conference call will be archived on the Investor section of the Lakes’ website at www.lakesentertainment.com and on Golden Gaming’s website at www.ggilv.com. If you do not have Internet access and want to listen to an audio replay, call 888-286-8010 and enter conference call passcode 62599403. The conference call archives and the audio replay will be available beginning at 1:00 p.m. Central Time, January 30, 2015 until 12:00 p.m. Central Time, February 4, 2015.
About Lakes Entertainment, Inc.
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland. For more information, please visit www.lakesentertainment.com.
About Golden Gaming, LLC
Golden Gaming has three distinct business lines: (1) Golden Route Operations (“GRO”), which is Nevada’s largest slot route operator with more than 7,600 machines in approximately 600 locations throughout the state. Originally founded in 1986 as Southwest Services, GRO is a licensed, established local route operator of gaming devices for bars, taverns, convenience and grocery stores; (2) Golden Casino Group (“GCG”), which currently owns and operates three casinos: Pahrump Nugget Hotel & Casino, Gold Town Casino and Lakeside Casino & RV Park. GCG employs more than 500 team members, making it the largest employer in Nye County; and (3) PT’s Entertainment Group (“PTEG”), which is Nevada’s largest tavern operator with 48 establishments. PTEG’s Southern Nevada holdings include PT’s, Sierra Gold and Sean Patrick’s. PTEG operates under two brands in Northern Nevada: Sierra Gold and Sierra Junction. For more information, please visit www.ggilv.com.
Forward-Looking Statements
Statements in this press release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding the estimated value of Lakes and Golden Gaming in connection with the merger; the amount of shares to be issued to the legacy Golden Gaming shareholder under the Merger Agreement and the expected post-closing shareholdings of legacy Company and Golden Gaming shareholders; the expected benefits of a potential combination of Lakes and Golden Gaming and expectations about future business plans, prospective performance (including estimated combined pro forma financial performance for 2015) and opportunities; the expected timing of the completion of the transaction; the obtaining of required regulatory approvals and approval by Lakes’ shareholders; the monetization of non-core assets and the note receivable from the Jamul Indian Village; and the ability of Lakes to utilize its NOLs to offset future taxable income. These forward-looking statements may be identified by the use of words such as “expect,” “anticipate,” “believe,” “estimate,” “potential,” “should”, “will” or similar words intended to identify information that is not historical in nature. These forward-looking statements are based on current expectations and assumptions of management of Lakes and Golden Gaming and are subject to risks, uncertainty and changes in circumstances that could cause the actual events and results in future periods to differ materially from the expectations of Lakes and Golden Gaming and those expressed or implied by these forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. These risks, uncertainties and changes in circumstances include (a) the possibility that the merger does not close when expected or at all; (b) the ability and timing to obtain required regulatory approvals (including approval from gaming regulators) and Lakes’ shareholder approval, and to satisfy or waive other closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, or that the parties to the Merger Agreement may be required to modify aspects of the transaction to achieve regulatory approval; (c) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement or could otherwise cause the merger to fail to close; (d) the ability of Lakes and Golden Gaming to promptly and effectively integrate their respective businesses; (e) the outcome of any legal proceedings that may be instituted in connection with the transaction; (f) the receipt of an unsolicited offer from another party for an alternative business transaction that could interfere with the proposed merger; (g) Lakes’ ability to monetize non-core assets prior to the closing of the transaction and to monetize the Jamul Indian Village note on terms that generate net cash proceeds to the company or at all; (h) the ability to retain key employees of Lakes and Golden Gaming; (i) that there may be a material adverse change affecting Lakes or Golden Gaming, or that the respective businesses of Lakes or Golden Gaming may suffer as a result of uncertainty surrounding the transaction; (j) the occurrence of an “ownership change,” as defined in Section 382 of the Internal Revenue Code; and (k) the risk factors disclosed in Lakes’ filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K, which was filed on March 14, 2014. Forward-looking statements reflect Lakes’ and Golden Gaming’s management’s analysis and expectations only as of the date of this press release, and neither Lakes nor Golden Gaming undertake to update or revise these statements, whether written or oral, to reflect subsequent developments, except as required under the federal securities laws. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Additional Information and Where to Find It
This press release may be deemed to be solicitation material for the shareholder vote with respect to the issuance of shares of Lakes common stock under the Merger Agreement. In connection with the Merger Agreement, Lakes intends to file relevant materials with the SEC, including a preliminary proxy statement and a definitive proxy statement. The definitive proxy statement will be mailed to the Lakes’ shareholders. This press release does not constitute a solicitation of any vote or proxy from any shareholder of Lakes. INVESTORS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS OR MATERIALS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE DEFINITIVE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LAKES, GOLDEN GAMING AND THE PROPOSED MERGER. Investors may obtain free copies of the definitive proxy statement, and other relevant materials and documents filed with the SEC (when they become available), without charge, at the SEC’s web site at www.sec.gov. In addition, investors may obtain free copies of the definitive proxy statement, and other relevant materials and documents filed with the SEC by directing a written request to Investor Relations, Lakes Entertainment, Inc., 130 Cheshire Lane, Suite #101, Minnetonka, MN 55305, or by accessing Lakes’ website at www.lakesentertainment.com under the heading “Investors” and then “SEC Filings.”
Participants in the Solicitation
Lakes, Golden Gaming and their respective directors, executive officers and certain other members of management and employees may be deemed to be “participants” in the solicitation of proxies from shareholders of Lakes in connection with the proposed transaction, including with respect to the issuance of shares of Lakes common stock under the Merger Agreement. Information about Lakes’ directors and executive officers is available in Lakes’ definitive proxy statement, dated July 23, 2014, for its 2014 annual meeting of shareholders. Additional information regarding participants in the proxy solicitation and a description of their interests in the proposed transaction will be contained in the proxy statement that Lakes will file with the SEC in connection with the proposed transaction and other relevant documents or materials to be filed with the SEC regarding the proposed transaction.
Financial Information and Non-GAAP Financial Measures
All years represented in this presentation are fiscal years unless otherwise indicated. Lakes’ fiscal year is the 52 or 53 weeks ending the Sunday closest to December 31 of the specified year. For example, references to the 2015 fiscal year refer to fiscal year ending on January 3, 2016. Golden Gaming’s fiscal year ends on December 31 of each year. This press release includes actual, projected and combined information with respect to Lakes and Golden Gaming. Information relating to Golden Gaming and combined information are presented for illustrative purposes only and do not purport to be indicative of what Lakes’ or Golden Gaming’s actual and combined business, financial condition or results of operations will be if the transaction is consummated.
This press release contains certain financial measures that are not in accordance with generally accepted accounting principles (“non-GAAP”). A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”) in the statements of income, balance sheets or statements of cash flow of the company. These measures are presented as supplemental disclosures because they are widely used measures of performance and bases for valuation of companies in our industry. EBITDA is defined as net income before interest expense, provision for income taxes and depreciation and amortization. Adjusted EBITDA adjusts EBITDA to remove the effects of one-time items including pre-opening expenses, impairments and other losses, gains and losses on non-operating assets and liabilities, discontinued operations and transition expenses related to acquired operations. Uses of cash flows that are not reflected in Adjusted EBITDA include capital expenditures, interest payments, income taxes, debt principal repayments, and certain regulatory gaming assessments which can be significant. Operating Free Cash Flow represents Adjusted EBITDA less maintenance capital expenditures, change in working capital and income taxes. Adjusted Net Income represents net income before gain or loss from non-core assets and a full year of the estimated benefit of refinancing Lakes and Golden Gaming indebtedness. The pro forma presentations of these non-GAAP measures reflect current estimates of the combined results of Lakes and Golden Gaming only. The disclosure of EBITDA, Adjusted EBITDA, Operating Free Cash Flow, Adjusted Net Income and other non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. EBITDA, Adjusted EBITDA, Operating Free Cash Flow and Adjusted Net Income should be considered in addition to, and not as a substitute, or superior to, net income, operating income, cash flows, revenue, or other measures of financial performance prepared in accordance with GAAP.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150126005252/en/
MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=51025926&lang=en
Contact:
Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030
or
The Firm for Golden Gaming, LLC
Jesse Scott, 702-739-9933 ext. 228
Wireless Telecom Group Announces Fourth Quarter and Year-End 2014 Financial Results Including an Annual Increase in Net Sales of 19%
Business Wire Wireless Telecom Group, Inc.
2 hours ago
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PARSIPPANY, N.J.--(BUSINESS WIRE)--
Wireless Telecom Group, Inc. (NYSE MKT: WTT) announced today results for the fourth quarter and twelve months ended December 31, 2014.
For the quarter ended December 31, 2014, the Company reported net sales of $9.3m, compared to $9.5m for the same period in 2013, a decrease of 2%. Net sales in the Network Solutions segment were $6.2m, compared to $6.0m for the same period in 2013, an increase of 3%. Net sales in the Test and Measurement segment were $3.2m, compared to $3.5m for the same period in 2013, a decrease of 10%.
For the twelve months ended December 31, 2014, the Company reported net sales of $40.3m, compared to $33.8m for the same period in 2013, an increase of 19%. Net sales in the Network Solutions segment were $28.2m, compared to $22.0m for the same period in 2013, an increase of 28%. Net sales in the Test and Measurement segment were $12.1m, compared to $11.8m for the same period in 2013, an increase of 3%.
Non-GAAP normalized EBITDA for the three and twelve month periods ended December 31 was $0.7m and $5.6m, for 2014 and $1.3m and $4.1m for 2013, respectively. Our non-GAAP normalized EBITDA results do not include the Company’s tax provision (benefit), depreciation and amortization and stock compensation expense, as well as interest expense, rental income from a property investment, a one-time gain from the sale of such property investment, a one-time gain from the sale of an investment security and certain other costs. A reconciliation of net income to non-GAAP normalized EBITDA results is included in an attachment to this press release.
Net income for the three and twelve month periods ended December 31 was $0.3m and $2.4m or $.01 and $.11 per diluted share for 2014 and $1.3m and $3.8m or $.05 and $.16 per diluted share for 2013, respectively. Net income from 2013 benefited from the non-cash recognition of the Company’s deferred tax asset.
Paul Genova, CEO of Wireless Telecom Group, Inc. commented “In 2014, we achieved strong revenue and income growth in the Network Solutions segment. Revenues increased by 28% to $28.2m and segment income increased by 36% to $7.6m driven by our strong position in the North American DAS market as well as continued global market gains in support of the carrier network build out for LTE.”
“Consistent with industry performance, the Network Solution Q4 order flow softened due to reductions in capital spending by the major domestic carriers. While we have seen an increase in current order backlog, we expect this softness to continue in the near term. However, according to a major US Carrier, global mobile data usage will more than double by 2019, increasing the need for global investment in LTE coverage and capacity for wireless operators over the long term. We believe our Network Solutions segment is well-positioned to take advantage of this growth and expect our order flow to improve as carrier spending returns to higher levels.”
Genova continued, “In 2014, our Test and Measurement segment remained steady contributing over $1m in segment income. Additionally, we generated cash flow from operating activities of $4m and we utilized $9.6m to repurchase 4.8m shares from our largest shareholder for $2 per share. We look forward to continued execution of our strategic plan, which may include additional investments in research and development as well as pursuing any opportunities that will increase shareholder value.”
Use of Non-GAAP Financial Measures
This press release includes non-GAAP financial measures that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. A reconciliation of our non-GAAP measures is included in an attachment to this press release.
Forward-Looking Statements
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Specifically, no assurances can be made with respect to: the contract awarded by the FAA or the Company’s ability to: gain traction globally regarding the Company’s Network Solutions segment, grow profitability in the Company’s Network Solutions business segment, improve revenue growth in our Test and Measurement segment as a result of the release of our new Boonton USB Peak Power Meter product, continue execution on the Company’s strategic plan, including continued revenue, earnings and cash flow improvements, and increase value to the Company’s shareholders. Further information regarding risks and uncertainties that could affect the Company’s results are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2014.
About Wireless Telecom Group, Inc.
Wireless Telecom Group designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries and markets its products and services worldwide under the Boonton, Microlab and Noisecom brands. Its complementary suite of high performance components and instruments includes RF combiners and broadband combiner boxes for in-building distributed antenna systems deployments (DAS), RF power splitters and diplexers, hybrid couplers, peak power meters, signal analyzers, noise modules, precision noise and generators. The Company serves both commercial and government markets with workflow-oriented, WiFi, WiMAX, satellite, cable, radar, avionics, medical, and computing applications. Wireless Telecom Group is headquartered in Parsippany, New Jersey, in the New York City metropolitan area, and maintains a global network of Sales and Service offices for excellent product service and support. Wireless Telecom Group’s website address is http://www.wtcom.com.
See following Selected Financial Results
SELECTED FINANCIAL RESULTS
(In thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
(unaudited)
2014 2013 2014 2013
Statement of Operations Data:
Net sales $9,341 $ 9,532 $ 40,337 $33,825
Gross profit 4,083 4,493 19,044 16,128
Operating expenses
Research and development 838 686 3,380 2,645
Sales and marketing 1,429 1,335 5,487 4,858
General and administrative 1,334 1,809 5,498 6,429
Total operating expenses 3,600 3,830 14,365 13,932
Operating income 483 663 4,679 2,196
Interest and other (income) expense 25 5 90 (371 )
Income before income taxes 458 658 4,589 2,567
Net income $285 $ 1,348 $ 2,424 $3,842
Net income per common share:
Basic $0.01 $ 0.06 $ 0.12 $0.16
Diluted $0.01 $ 0.05 $ 0.11 $0.16
Weighted average shares outstanding:
Basic 19,454 24,033 20,643 23,935
Diluted 20,526 24,945 21,801 24,534
Three months ended Twelve months ended
December 31, December 31,
(unaudited) (unaudited)
2014 2013 2014 2013
Reconciliation of GAAP Net Income
to Non-GAAP Normalized EBITDA:
GAAP net income $ 285 $1,348 $2,424 $ 3,842
Tax expense (benefit) 173 (691 ) 2,165 (1,275 )
Depreciation 93 97 370 345
Stock compensation expense 122 267 357 746
Interest - - - 114
Rental income - - - (225 )
Realized gain on sale of non-
marketable securities
-
-
-
(162
)
Realized gain on building - - - (188 )
Other non-operating costs 25 5 90 90
Non-recurring costs (1) - 259 178 793
Non-GAAP normalized EBITDA $ 698 $1,285 $5,584 $ 4,080
(1) Includes professional fees related to our strategic business review
December 31, December 31,
2014 2013
Balance Sheet Data:
Cash & cash equivalents $10,724 $16,599
Working capital $24,606 $29,205
Total assets $36,289 $43,437
Total liabilities $2,659 $3,163
Shareholders’ equity $33,630 $40,274
Contact:
Wireless Telecom Group, Inc.
Robert Censullo, (973) 386-9696
Microsemi Corporation to Acquire Vitesse Semiconductor Corporation
-- Expands differentiated technology offering for strategic communication infrastructure applications and customers
-- Increases traction in carrier, enterprise and industrial-IoT markets enabling broader solution sale
-- Delivers immediate EPS accretion and synergies
PR Newswire Microsemi Corporation; Vitesse Semiconductor Corporation
March 18, 2015 7:00 AM
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ALISO VIEJO, Calif. and CAMARILLO, Calif., March 18, 2015 /PRNewswire/ -- Microsemi Corporation (MSCC), a leading provider of semiconductor solutions differentiated by power, security, reliability and performance, and Vitesse Semiconductor Corporation (VTSS), jointly announced today that Microsemi has entered into a definitive agreement to acquire Vitesse for $5.28 per share through a cash tender offer, representing a premium of 32 percent based on the average closing price of Vitesse's shares of common stock during the 30 trading days ended March 17, 2015. The board of directors of Vitesse unanimously recommends that Vitesse's stockholders tender their shares in the tender offer. The total transaction value is approximately $389 million.
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.Microsemi Corporation
Headquartered in Camarillo, California, Vitesse designs a diverse portfolio of high-performance semiconductors, application software, and integrated turnkey systems solutions for carrier, enterprise and Internet of Things (IoT) networks worldwide. Vitesse's products enable the fastest-growing network infrastructure markets including mobile access/IP edge, enterprise cloud access, and industrial-IoT networking.
"This acquisition is further evidence of Microsemi's continuing commitment to grow as a communications semiconductor company," stated James J. Peterson, Microsemi chairman and CEO. "Vitesse's highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets, while benefitting from the increased scale, consolidated infrastructure and cost savings of the combined entity."
"The proposed acquisition of Vitesse by Microsemi will create a powerful combination," said Chris Gardner, Vitesse's chief executive officer. "I believe Microsemi will be able to leverage Vitesse's Ethernet technology and capabilities further into the communications market and has the scale to implement the adoption of our industrial IoT strategy."
Microsemi expects significant synergies from this transaction and expects to see immediate accretion in the first full quarter of completion. Based on current assumptions, Microsemi expects the acquisition to be $0.16 to $0.20 per share accretive in its first full fiscal year ending September 30, 2016.
As of this date, Microsemi remains comfortable with its Jan. 22, 2015 non-GAAP guidance for its second fiscal quarter of 2015, ending March 29, 2015. Microsemi currently intends to announce its second fiscal quarter results on April 23, 2015. Further details will be forthcoming.
Tender Offer and Closing
Under the terms of the definitive acquisition agreement, Microsemi will commence a cash tender offer to acquire Vitesse's outstanding shares of common stock at $5.28 per share, net to each holder in cash. Upon satisfaction of the conditions to the tender offer and after such time as all shares tendered in the tender offer are accepted for payment, the agreement provides for the parties to effect, as promptly as practicable, a merger which would result in all shares not tendered in the tender offer being converted into the right to receive $5.28 per share in cash. The tender offer is subject to customary conditions, including the tender of at least a majority of the outstanding shares of Vitesse's common stock on a modified fully diluted basis and certain regulatory approvals, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in Microsemi's fiscal third quarter, ending June 28, 2015. No approval of the stockholders of Microsemi is required in connection with the proposed transaction. Terms of the agreement were unanimously approved by the boards of directors of both Microsemi and Vitesse. Microsemi has received support agreements from Vitesse stockholders holding approximately 22 percent of Vitesse's outstanding common shares. Under the terms of the support agreements, these stockholders have agreed to tender their shares in the tender offer.
Under the terms of the merger agreement, Vitesse may solicit superior proposals from third parties for a "go shop" period of 21 calendar days continuing through April 7, 2015. It is not anticipated that any developments will be disclosed with regard to this process unless and until Vitesse's board of directors makes a decision to pursue a potential superior proposal. Deutsche Bank will assist Vitesse with its go shop process. There are no guarantees that this process will result in a superior proposal. The merger agreement provides Microsemi with a customary right to match a superior proposal. The agreement also provides for certain break-up fees payable to Microsemi in connection with the termination of the agreement in certain circumstances.
BofA Merrill Lynch is providing customary committed debt financing for the acquisition. BofA Merrill Lynch and RBC Capital Markets acted as financial advisors, and O'Melveny & Myers LLP is acting as legal adviser to Microsemi. Deutsche Bank and Needham & Company are acting as financial advisors and Stubbs Alderton & Markiles, LLP is acting as legal advisor to Vitesse.
Webcast
Microsemi is hosting an analyst day today in New York, and will briefly address details of the transaction at that event. A live webcast and the accompanying presentation relating to the transaction will be available in the "Investors" section of Microsemi's website at www.microsemi.com.
Webcast date: March 18, 2015
Time: 9-11:30 a.m. EDT
Webcast link: http://investor.microsemi.com/Microsemi-s-Analyst-Day-2015
A replay of the company's analyst day webcast will also be available in the "Investors" section of Microsemi's website.
About Microsemi
Microsemi Corporation (MSCC) offers a comprehensive portfolio of semiconductor and system solutions for communications, defense & security, aerospace and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and synchronization devices and precise time solutions, setting the world's standard for time; voice processing devices; RF solutions; discrete components; security technologies and scalable anti-tamper products; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. Microsemi is headquartered in Aliso Viejo, Calif., and has approximately 3,400 employees globally. Learn more at www.microsemi.com.
Microsemi and the Microsemi logo are registered trademarks or service marks of Microsemi Corporation and/or its affiliates. Third-party trademarks and service marks mentioned herein are the property of their respective owners.
About Vitesse
Vitesse (VTSS) designs a diverse portfolio of high-performance semiconductors, application software, and integrated turnkey systems solutions for Carrier, Enterprise and Internet of Things (IoT) networks worldwide. Vitesse products enable the fastest-growing network infrastructure markets including Mobile Access/IP Edge, Cloud Access and Industrial-IoT Networking. Visit www.vitesse.com or follow us on Twitter @VitesseSemi.
Vitesse is a registered trademark of Vitesse Semiconductor Corporation in the United States and other jurisdictions. All other trademarks or registered trademarks mentioned herein are the property of their respective holders.
Microsemi Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Microsemi and Vitesse. The forward-looking statements in this release address a variety of subjects including, for example, the expected date of closing of the acquisition, the potential benefits of the merger, including the potentially accretive and synergistic benefits, Microsemi's revenue and earnings guidance, and any other statements of belief or about the Microsemi's plans, beliefs or expectations. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that Vitesse's business will not be successfully integrated with Microsemi's business or complement its products, including product mix and acceptance, gross margins and operational and other cost synergies; costs associated with the merger, tender offer and financing; the unsuccessful completion of the tender offer; matters arising in connection with the parties' efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction; increased competition and technological changes in the industries in which Microsemi and Vitesse compete; Microsemi's reliance on government contracts for a portion of its sales, including impacts of any federal government shutdown; Microsemi's failure to continue to move up the value chain in its customer offerings; negative or worsening worldwide economic conditions or market instability; downturns in the highly cyclical semiconductor industry; intense competition in the semiconductor industry and resultant downward price pressure; inability to develop new technologies and products to satisfy changes in customer demand or the development by the company's competitors of products that decrease the demand for Microsemi's products; unfavorable or declining conditions in end markets; inability of Microsemi's compound semiconductor products to compete successfully with silicon-based products; production delays related to new compound semiconductors; variability of the company's manufacturing yields; the concentration of the factories that service the semiconductor industry; delays in beginning production, implementing production techniques, resolving problems associated with technical equipment malfunctions, or issues related to government or customer qualification of facilities; potential effects of system outages; the effect of events such as natural disasters and related disruptions on our operations; inability by Microsemi to fulfill customer demand and resulting loss of customers; variations in customer order preferences; difficulties foreseeing future demand; rises in inventory levels and inventory obsolescence; potential non-realization of expected orders or non-realization of backlog; failure to make sales indicated by the company's book-to-bill ratio; risks related to the company's international operations and sales, including availability of transportation services, political instability and currency fluctuations; increases in the costs of credit and the availability of credit or additional capital only under more restrictive conditions or not at all; unanticipated changes in Microsemi's tax provisions, results of tax examinations or exposure to additional income tax liabilities; changes in generally accepted accounting principles; principal, liquidity and counterparty risks related to Microsemi's holdings in securities; environmental or other regulatory matters or litigation, or any matters involving contingent liabilities or other claims; the uncertainty of litigation, the costs and expenses of litigation, the potential material adverse effect litigation could have on Microsemi's business and results of operations if an adverse determination in litigation is made, and the time and attention required of management to attend to litigation; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; any circumstances that adversely impact the end markets of acquired businesses; and difficulties in closing or disposing of operations or assets or transferring work, assets or inventory from one plant to another. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K and all subsequent Form 10-Q reports filed by Microsemi with the SEC. Additional risk factors may be identified from time to time in Microsemi's future filings. The forward-looking statements included in this release speak only as of the date hereof, and Microsemi does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances. Guidance is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Microsemi's ability to estimate the excluded items are not accessible or estimable on a forward-looking basis.
Vitesse Safe Harbor Statement
Certain statements either contained in or incorporated by reference into this press release, other than purely historical information, including estimates, projections and statements relating to Vitesse's business plans and objectives, and the assumptions upon which those statements are based, are "forward-looking statements." These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Such forward-looking statements include the ability of Vitesse and Microsemi to complete the transactions contemplated by the merger agreement, including the parties' ability to satisfy the conditions to the consummation of the tender offer and the other conditions set forth in the merger agreement and the possibility of any termination of the merger agreement. The forward-looking statements contained in this release are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Actual results may differ materially from current expectations because of risks associated with uncertainties as to the timing of the tender offer and the subsequent merger; uncertainties as to how many of Vitesse's stockholders will tender their shares in the tender offer; the risk that competing offers or acquisition proposals will be made; the possibility that various conditions to the consummation of the tender offer or the merger may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the tender offer or the merger; the effects of disruption from the transactions contemplated by the merger agreement on Vitesse's business and the fact that the announcement and pendency of the transactions may make it more difficult to establish or maintain relationships with employees, suppliers and other business partners; the risk that stockholder litigation in connection with the tender offer or the merger may result in significant costs of defense, indemnification and liability; other uncertainties pertaining to the business of Vitesse, including those set forth in Vitesse's filings with the SEC, especially in "Item 1A. Risk Factors" of Vitesse's Annual Report on Form 10-K for the year ended September 30, 2014 filed with the SEC on December 4, 2014 and in other periodic reports and filings with the SEC from time to time, including Vitesse's Quarterly Reports on Form 10-Q. The reader is cautioned not to unduly rely on these forward-looking statements. Vitesse expressly disclaims any intent or obligation to update or revise publicly these forward-looking statements except as required by law.
Notice to Investors
The tender offer for the outstanding shares of common stock of Vitesse has not yet commenced. This press release is for informational purposes only and no statement in this press release is an offer to purchase or a solicitation of an offer to sell securities. At the time the tender offer is commenced, Microsemi Corporation and a wholly-owned subsidiary of Microsemi Corporation will file a tender offer statement on Schedule TO with the Securities and Exchange Commission, and Vitesse will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the tender offer. The tender offer statement (including an offer to purchase, a related letter of transmittal and other offer documents) and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect to the tender offer. Such materials will be made available to Vitesse's stockholders at no expense to them. In addition, such materials (and all other offer documents filed with the SEC) will be available at no charge on the SEC's Web site: www.sec.gov.
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.Microsemi Corporation to Acquire Vitesse Semiconductor Corporation
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7:02 am Newell Rubbermaid reaffirms 2015 EPS in line with consensus (NWL) :
•Core sales growth 3.5% to 4.5%, Capital IQ consensus is 3.8%.
• Currency impact (4.0%) to (5.0%)
• Impact of acquisitions 3.5% to 4.5%
• Net sales growth 3.0% to 4.0%
• Normalized EPS $2.10 to $2.18, Capital IQ consensus $2.15
• The 2015 normalized EPS guidance range excludes between $80 and $120 million of Project Renewal restructuring and restructuring-related charges and other project costs.
7:02 am Newell Rubbermaid reaffirms 2015 EPS in line with consensus (NWL) :
•Core sales growth 3.5% to 4.5%, Capital IQ consensus is 3.8%.
• Currency impact (4.0%) to (5.0%)
• Impact of acquisitions 3.5% to 4.5%
• Net sales growth 3.0% to 4.0%
• Normalized EPS $2.10 to $2.18, Capital IQ consensus $2.15
• The 2015 normalized EPS guidance range excludes between $80 and $120 million of Project Renewal restructuring and restructuring-related charges and other project costs.
KKR & Co. L.P. Announces Fourth Quarter and Full Year 2014 Results
Realization Activity Drives Strong Full Year Distribution
GAAP net income (loss) attributable to KKR & Co. L.P. was ($0.6) million and $477.6 million for the quarter and year ended December 31, 2014, respectively, down from $277.9 million and $691.2 million in the comparable periods of 2013.
Total distributable earnings was $376.3 million for the quarter ended December 31, 2014, down from $510.4 million in the quarter ended December 31, 2013. Total distributable earnings was $2,028.9 million for the year ended December 31, 2014, up from $1,455.9 million for the year ended December 31, 2013.
Distribution per common unit was $0.35 for the quarter ended December 31, 2014, down from $0.48 in the quarter ended December 31, 2013. Distribution per common unit was $1.90 for the year ended December 31, 2014, up from $1.40 in the year ended December 31, 2013.
Economic net income (“ENI”) was $86.6 million and $1,727.2 million for the quarter and year ended December 31, 2014, respectively, down from $789.6 million and $2,195.6 million in the comparable periods of 2013.
ENI after taxes per adjusted unit(1) was $0.05 and $1.84 for the quarter and year ended December 31, 2014, respectively, down from $1.04 and $2.82 in the comparable periods of 2013.
Fee and yield earnings were $208.4 million and $733.3 million for the quarter and year ended December 31, 2014, respectively, up from $140.1 million and $433.9 million in the comparable periods of 2013.
Book value was $10.1 billion on a total reportable segment basis as of December 31, 2014 or $12.07 per adjusted unit.
Return on equity and cash return on equity were 16% and 21%, respectively.
Assets under management (“AUM”) and fee paying assets under management (“FPAUM”) totaled $98.6 billion and $83.0 billion, respectively, as of December 31, 2014.
Wynn Resorts, Limited Reports Fourth Quarter and Year End 2014 Results
Wynn Resorts, Limited February 3, 2015 4:05 PM
LAS VEGAS--(BUSINESS WIRE)--
Wynn Resorts, Limited ( WYNN) today reported financial results for the fourth quarter and year ended December 31, 2014.
Net revenues for the fourth quarter of 2014 were $1,138.0 million, compared to $1,519.9 million in the fourth quarter of 2013. The decline was the result of a 32.0% net revenue decrease from our Macau Operations and a 5.8% decrease in net revenues from our Las Vegas Operations. Adjusted property EBITDA (1) was $352.5 million for the fourth quarter of 2014, a 29.3% decrease from $498.4 million in the fourth quarter of 2013.
For the full year, net revenues were $5,433.7 million in 2014, down 3.3% from $5,620.9 million in 2013. Adjusted property EBITDA declined 2.1% to $1,773.3 million in 2014, with record annual performance at Wynn Las Vegas offset by lower adjusted property EBITDA at Wynn Macau. For 2014, adjusted property EBITDA increased 5.9% to $515.2 million at Wynn Las Vegas and fell 5.0% to $1,258.1 million at Wynn Macau.
On a US GAAP basis, net income attributable to Wynn Resorts for the fourth quarter of 2014 was $109.3 million, or $1.07 per diluted share, compared to net income attributable to Wynn Resorts of $213.9 million, or $2.10 per diluted share, in the fourth quarter of 2013.
Adjusted net income attributable to Wynn Resorts, Limited (2) in the fourth quarter of 2014 was $122.4 million, or $1.20 per diluted share (adjusted EPS), compared to an adjusted net income attributable to Wynn Resorts of $231.2 million, or $2.27 per diluted share, in the fourth quarter of 2013.
Wynn Resorts also announced today that the Company has approved a cash dividend for the quarter of $1.50 per common share. This dividend will be payable on February 23, 2015, to stockholders of record on February 13, 2015.
Macau Operations
In the fourth quarter of 2014, net revenues were $761.2 million, a 32.0% decrease from the $1,119.9 million generated in the fourth quarter of 2013. Adjusted property EBITDA in the fourth quarter of 2014 was $241.2 million, down 35.5% from $374.2 million in the fourth quarter of 2013.
Table games results in Macau are segregated into two distinct reporting categories, the VIP segment and the mass market segment.
Table games turnover in the VIP segment was $20.7 billion for the fourth quarter of 2014, a 39.9% decrease from $34.4 billion in the fourth quarter of 2013. VIP table games win as a percentage of turnover (calculated before commissions) for the quarter was 2.80%, within the expected range of 2.7% to 3.0% and below the 2.92% experienced in the fourth quarter of 2013. The average number of VIP tables decreased to 244 units in the fourth quarter of 2014 from 273 units in the prior year's fourth quarter due in large part to a renovation on a portion of the casino floor. Completion of this renovation is expected before Chinese New Year.
Table games win in the mass market segment decreased by 15.0% to $249.0 million in the fourth quarter of 2014. Mass market table games win per unit per day decreased by 7.7% to $13,434 from $14,552 in the fourth quarter of 2013. Drop in the mass market segment was $634.4 million in the fourth quarter of 2014, down 8.3% from the 2013 fourth quarter, while the segment’s win percentage of 39.3% compares to 42.3% in last year’s fourth quarter. The win percentage in the fourth quarter of 2014 was the lowest hold rate since the third quarter of 2013. Customers purchase mass market gaming chips at either the gaming tables or the casino cage. Chips purchased at the casino cage are excluded from table games drop and will increase the expected win percentage. Because of the large number of chip purchases occurring at the casino cage, we believe the relevant indicator of volumes in the mass market segment should be actual table games win rather than win percentage.
Slot machine handle for the fourth quarter of 2014 declined 19.5% from the 2013 period to $1.1 billion, and slot win decreased by 20.9%. Win per unit per day was 3.8% higher at $912, compared to $879 in the fourth quarter of 2013, due to a reduction in the number of units on the casino floor.
For the fourth quarter of 2014, we achieved an average daily rate (ADR) of $332, 5.4% above the $315 reported in the 2013 fourth quarter. Occupancy at Wynn Macau of 98.6% compares to 96.7% in the prior-year period, and revenue per available room (REVPAR) rose 7.9% to $328 in the 2014 quarter from $304 in last year’s fourth quarter. Non-casino revenues, before promotional allowances, decreased 11.6% during the quarter to $95.9 million.
Las Vegas Operations
For the quarter ended December 31, 2014, net revenues were $376.8 million, a 5.8% decrease from $400.0 million in the fourth quarter of 2013. Adjusted property EBITDA declined 10.4% to $111.2 million, due in part to table games hold above the property's expected range in the fourth quarter of 2013.
Net casino revenues in the fourth quarter of 2014 were $171.0 million, a 15.5% decrease from the fourth quarter of 2013. Table games drop of $639.0 million was down 11.8% from $724.4 million in the 2013 quarter. Table games win percentage was 24.0%, within the property’s expected range of 21% to 24% and below the 28.8% reported in the 2013 quarter. Slot machine handle of $769.8 million was 5.2% above the $731.9 million in the comparable period of 2013, and net slot win was up 6.2%.
Room revenues were up 6.3% to $95.5 million during the quarter, versus $89.8 million in the fourth quarter of 2013. ADR increased 5.9% to $271 from $256, and occupancy improved to 82.1% from 80.8% in the fourth quarter of 2013. REVPAR was $222 in the 2014 fourth quarter, 7.2% above the $207 reported in the prior-year quarter.
Food and beverage revenues in the fourth quarter of 2014 were $103.3 million, up 5.3% from the 2013 fourth quarter. Entertainment, retail and other revenues improved 0.5% from last year’s quarter to $57.4 million.
Wynn Palace Project in Macau
The Company is currently constructing Wynn Palace, a fully integrated resort containing a 1,700-room hotel, performance lake, meeting space, casino, spa, retail offerings, and food and beverage outlets in the Cotai area of Macau. In July 2013, we signed a $2.6 billion guaranteed maximum price (GMP) contract for the project’s construction. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is approximately $4.1 billion. We expect to open our resort on Cotai in the first half of 2016.
During the fourth quarter of 2014, we invested approximately $428.7 million in our Cotai project, taking the total investment to date to $1.8 billion.
Wynn Project in Massachusetts
On January 2, 2015, we purchased 33 acres of land in Everett, Massachusetts, along the Mystic River. On this land, we intend to develop and construct an integrated resort containing a hotel, casino, spa, meeting and convention space and waterfront boardwalk featuring premium retail offerings and restaurants.
Balance Sheet and Other
Our total cash and investment securities balance at December 31, 2014 was $2.4 billion. Total debt outstanding at the end of the quarter was $7.3 billion, including $3.0 billion of Wynn Las Vegas debt, $2.4 billion of Wynn Macau debt and $1.9 billion at the parent company.
Conference Call Information
The Company will hold a conference call to discuss its results on February 3, 2015 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com.
Forward-looking Statements
This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including, but not limited to, our dependence on existing management, results of regulatory or enforcement actions and probity investigations, pending or future legal proceedings, uncertainties over the development and success of new gaming and resort properties, adverse tourism trends, general global macroeconomic conditions, changes in gaming laws or regulations, volatility and weakness in world-wide credit and financial markets, and our substantial indebtedness and leverage. Additional information concerning potential factors that could affect the Company’s financial results is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and the Company’s other periodic reports filed with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update or revise its forward-looking statements as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
(1) “Adjusted property EBITDA” is earnings before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other, corporate expenses, intercompany golf course and water rights leases, stock-based compensation, and other non-operating income and expenses, and includes equity in income from unconsolidated affiliates. Adjusted property EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses adjusted property EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents adjusted property EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”). In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Wynn Resorts, Limited, have historically excluded from their EBITDA calculations pre-opening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, adjusted property EBITDA should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, adjusted property EBITDA does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in adjusted property EBITDA. Also, Wynn Resorts’ calculation of adjusted property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(2) "Adjusted net income attributable to Wynn Resorts, Limited" is net income before pre-opening costs, property charges and other, and certain other non-operating income and expenses, net of taxes in respective jurisdictions. Adjusted net income attributable to Wynn Resorts, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share (“adjusted EPS”) are presented as supplemental disclosures because management believes that these non-GAAP financial measures are widely used to measure the performance, and as a principal basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income and EPS computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Wynn Resorts, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
The Company has included schedules in the tables that accompany this release that reconcile (i) net income attributable to Wynn Resorts, Limited to adjusted net income attributable to Wynn Resorts, Limited, and (ii) operating income to adjusted property EBITDA and adjusted property EBITDA to net income attributable to Wynn Resorts, Limited.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Operating revenues:
Casino $ 884,664 $ 1,262,391 $ 4,274,221 $ 4,490,637
Rooms 129,197 119,299 542,762 492,230
Food and beverage 128,025 125,198 604,701 586,672
Entertainment, retail and other 94,770 108,967 401,181 418,705
Gross revenues 1,236,656 1,615,855 5,822,865 5,988,244
Less: promotional allowances (98,681 ) (95,958 ) (389,204 ) (367,308 )
Net revenues 1,137,975 1,519,897 5,433,661 5,620,936
Operating costs and expenses:
Casino 554,583 783,982 2,667,013 2,846,489
Rooms 36,099 32,483 148,338 133,503
Food and beverage 70,353 70,115 337,206 323,573
Entertainment, retail and other 38,729 46,497 163,754 175,257
General and administrative 125,833 116,472 492,464 448,788
Provision for doubtful accounts 4,649 4,773 3,906 11,877
Pre-opening costs 15,354 1,577 30,146 3,169
Depreciation and amortization 80,082 91,990 314,119 371,051
Property charges and other (3,237 ) 3,567 10,437 17,138
Total operating costs and expenses 922,445 1,151,456 4,167,383 4,330,845
Operating income 215,530 368,441 1,266,278 1,290,091
Other income (expense):
Interest income 4,369 4,118 20,441 15,713
Interest expense, net of capitalized interest (78,993 ) (76,332 ) (315,062 ) (299,022 )
(Decrease) increase in swap fair value (2,942 ) 1,104 (4,393 ) 14,235
Loss on extinguishment of debt (2,213 ) (13,857 ) (9,569 ) (40,435 )
Equity in income from unconsolidated affiliates 176 206 1,349 1,085
Other 223 471 (182 ) 4,856
Other income (expense), net (79,380 ) (84,290 ) (307,416 ) (303,568 )
Income before income taxes 136,150 284,151 958,862 986,523
Benefit for income taxes 12,043 6,335 3,782 17,634
Net income 148,193 290,486 962,644 1,004,157
Less: net income attributable to noncontrolling interests (38,847 ) (76,602 ) (231,090 ) (275,505 )
Net income attributable to Wynn Resorts, Limited $ 109,346 $ 213,884 $ 731,554 $ 728,652
Basic and diluted income per common share:
Net income attributable to Wynn Resorts, Limited:
Basic $ 1.08 $ 2.12 $ 7.25 $ 7.25
Diluted $ 1.07 $ 2.10 $ 7.18 $ 7.17
Weighted average common shares outstanding:
Basic 101,010 100,748 100,927 100,540
Diluted 101,935 101,807 101,931 101,641
Dividends declared per common share $ 2.50 $ 4.00 $ 6.25 $ 7.00
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Net income attributable to Wynn Resorts, Limited $ 109,346 $ 213,884 $ 731,554 $ 728,652
Pre-opening costs, net 13,921 1,577 28,713 3,169
Loss on extinguishment of debt, net 1,826 13,857 7,894 40,435
Decrease (increase) in swap fair value, net 2,942 (1,104 ) 4,393 (14,235 )
Property charges and other, net (2,488 ) 3,567 11,297 17,138
Adjustment for noncontrolling interest (3,102 ) (547 ) (11,576 ) 1,680
Adjusted net income attributable to Wynn Resorts, Limited(2)
$ 122,445 $ 231,234 $ 772,275 $ 776,839
Adjusted net income attributable to Wynn Resorts, Limited per diluted share $ 1.20 $ 2.27 $ 7.58 $ 7.64
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands)
(unaudited)
Three Months Ended December 31, 2014
Macau Operations
Las Vegas Operations
Corporate and Other
Total
Operating income $ 157,608 $ 51,619 $ 6,303 $ 215,530
Pre-opening costs 7,164 4,250 3,940 15,354
Depreciation and amortization 32,814 45,530 1,738 80,082
Property charges and other 1,042 (4,279 ) — (3,237 )
Management and royalty fees 29,576 5,660 (35,236 ) —
Corporate expenses and other 6,936 6,862 14,315 28,113
Stock-based compensation 6,084 1,569 8,787 16,440
Equity in income from unconsolidated affiliates — 23 153 176
Adjusted Property EBITDA(1) $ 241,224 $ 111,234 $ — $ 352,458
Three Months Ended December 31, 2013
Macau Operations
Las Vegas Operations
Corporate and Other
Total
Operating income $ 285,555 $ 47,981 $ 34,905 $ 368,441
Pre-opening costs 1,577 — — 1,577
Depreciation and amortization 30,762 59,694 1,534 91,990
Property charges and other 1,500 2,067 — 3,567
Management and royalty fees 44,445 6,001 (50,446 ) —
Corporate expenses and other 9,259 8,653 10,208 28,120
Stock-based compensation 1,116 (232 ) 3,582 4,466
Equity in (loss) income from unconsolidated affiliates — (11 ) 217 206
Adjusted Property EBITDA(1) $ 374,214 $ 124,153 $ — $ 498,367
Three Months Ended December 31,
2014 2013
Adjusted Property EBITDA(1) $ 352,458 $ 498,367
Pre-opening costs (15,354 ) (1,577 )
Depreciation and amortization (80,082 ) (91,990 )
Property charges and other 3,237 (3,567 )
Corporate expenses and other (28,113 ) (28,120 )
Stock-based compensation (16,440 ) (4,466 )
Interest income 4,369 4,118
Interest expense, net of capitalized interest (78,993 ) (76,332 )
(Decrease) increase in swap fair value (2,942 ) 1,104
Loss on extinguishment of debt (2,213 ) (13,857 )
Other 223 471
Benefit for income taxes 12,043 6,335
Net income 148,193 290,486
Less: net income attributable to noncontrolling interests (38,847 ) (76,602 )
Net income attributable to Wynn Resorts, Limited $ 109,346 $ 213,884
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME TO ADJUSTED PROPERTY EBITDA
AND ADJUSTED PROPERTY EBITDA TO NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands)
(unaudited)
Twelve Months Ended December 31, 2014
Macau Operations
Las Vegas Operations
Corporate and Other
Total
Operating income $ 895,176 $ 270,489 $ 100,613 $ 1,266,278
Pre-opening costs 21,956 4,250 3,940 30,146
Depreciation and amortization 128,428 179,394 6,297 314,119
Property charges and other 15,352 (4,915 ) — 10,437
Management and royalty fees 148,039 24,580 (172,619 ) —
Corporate expenses and other 36,207 36,621 38,967 111,795
Stock-based compensation 12,924 4,342 21,888 39,154
Equity in income from unconsolidated affiliates — 435 914 1,349
Adjusted Property EBITDA(1) $ 1,258,082 $ 515,196 $ — $ 1,773,278
Twelve Months Ended December 31, 2013
Macau Operations
Las Vegas Operations
Corporate and Other
Total
Operating income $ 1,002,463 $ 167,050 $ 120,578 $ 1,290,091
Pre-opening costs 3,169 — — 3,169
Depreciation and amortization 119,597 245,119 6,335 371,051
Property charges and other 5,003 12,162 (27 ) 17,138
Management and royalty fees 160,923 23,721 (184,644 ) —
Corporate expenses and other 28,593 32,026 28,110 88,729
Stock-based compensation 4,371 6,397 28,770 39,538
Equity in income from unconsolidated affiliates — 207 878 1,085
Adjusted Property EBITDA(1) $ 1,324,119 $ 486,682 $ — $ 1,810,801
Twelve Months Ended December 31,
2014 2013
Adjusted Property EBITDA(1) $ 1,773,278 $ 1,810,801
Pre-opening costs (30,146 ) (3,169 )
Depreciation and amortization (314,119 ) (371,051 )
Property charges and other (10,437 ) (17,138 )
Corporate expenses and other (111,795 ) (88,729 )
Stock-based compensation (39,154 ) (39,538 )
Interest income 20,441 15,713
Interest expense, net of capitalized interest (315,062 ) (299,022 )
(Decrease) increase in swap fair value (4,393 ) 14,235
Loss on extinguishment of debt (9,569 ) (40,435 )
Other (182 ) 4,856
Benefit for income taxes 3,782 17,634
Net income 962,644 1,004,157
Less: net income attributable to noncontrolling interests (231,090 ) (275,505 )
Net income attributable to Wynn Resorts, Limited $ 731,554 $ 728,652
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Room statistics for Macau operations:
Occupancy 98.6 % 96.7 % 98.4 % 95.5 %
Average daily rate (ADR)(a)
$ 332 $ 315 $ 333 $ 313
Revenue per available room (REVPAR)(b) $ 328 $ 304 $ 327 $ 299
Other information for Macau operations:
Table games win per unit per day(c) $ 20,209 $ 28,663 $ 25,213 $ 26,188
Slot machine win per unit per day(d) $ 912 $ 879 $ 1,068 $ 777
Average number of table games 445 492 461 491
Average number of slot machines 666 874 679 866
Room statistics for Las Vegas operations:
Occupancy 82.1 % 80.8 % 86.9 % 84.6 %
Average daily rate (ADR)(a) $ 271 $ 256 $ 274 $ 258
Revenue per available room (REVPAR)(b) $ 222 $ 207 $ 238 $ 218
Other information for Las Vegas operations:
Table games win per unit per day(c) $ 7,226 $ 9,849 $ 7,354 $ 7,729
Table games win % 24.0 % 28.8 % 24.4 % 25.1 %
Slot machine win per unit per day(d) $ 276 $ 258 $ 275 $ 239
Average number of table games 231 230 232 233
Average number of slot machines 1,864 1,877 1,858 2,030
(a) ADR is average daily rate and is calculated by dividing total room revenue including the retail value of promotional allowances (less service charges, if any) by total rooms occupied including complimentary rooms.
(b) REVPAR is revenue per available room and is calculated by dividing total room revenue including the retail value of promotional allowances (less service charges, if any) by total rooms available.
(c) Table games win per unit per day is shown before discounts and commissions, as applicable.
(d) Slot machine win per unit per day is calculated as gross slot win minus progressive accruals and free play.
Professional ServicesFinanceWynn ResortsWynn Las Vegas
Contact:
Wynn Resorts, Limited
Mark Strawn
Investor Relations
702-770-7555
investorrelations@wynnresorts.com
Vitesse Reports First Quarter Fiscal Year 2015 Results
• Revenues of $24.8 million
• New product revenue of $16.2 million, representing 82% year-to-year growth and 68% of total product revenue in the quarter
• Opportunities created at new customers were double the rate of fiscal year 2014
• Record pace for design wins, IoT wins representing 40% of total
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Business Wire
Vitesse Semiconductor Corporation
February 3, 2015 4:00 PM
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CAMARILLO, Calif.--(BUSINESS WIRE)--
Vitesse Semiconductor Corporation (VTSS), a leading provider of IC solutions to advance “Ethernet Everywhere” in Carrier, Enterprise and Internet of Things (IoT) networks, reported its financial results for the first quarter fiscal year 2015, ended December 31, 2014.
“New product revenue continues on a solid trajectory reaching $16.2 million in the quarter, up 82% on a year to year basis. New products now represent 68% of our total product revenue,” said Chris Gardner, CEO of Vitesse. “Our customer profile continues to grow and evolve as our position strengthens in new, adjacent markets such as IoT and storage, which are literally reshaping our business and expanding our market opportunity. Our expanded sales team dramatically increased both opportunities and design wins, more than doubling the number of new customers in the pipeline, setting us on pace for another record year. As Ethernet propagates into new markets, our total addressable market will triple from approximately $1 billion today to over $3 billion by 2020.”
“As anticipated, we saw a meaningful decrease in revenue from our legacy products in the first quarter and expect another smaller decline in the second quarter. These declines will be more than offset by new product revenue growth of 50% to 75% for the full fiscal year. We continue to manage expenses carefully as we move through the transition and remain on target to deliver gross product margins of 60% in fiscal year 2015. All told, the leading indicators of our business are strong and we are well positioned with the technology, products, market position, and customers to capitalize on the exciting growth opportunities we are seeing in the market.”
First Quarter Fiscal Year 2015 Financial Results Summary
• Total net revenues were $24.8 million, compared to $28.7 million in the fourth quarter of fiscal year 2014 and $27.1 million in the first quarter of fiscal year 2014. • Product revenues were $24.0 million, compared to $27.0 million in the fourth quarter of fiscal year 2014 and $24.9 million in the first quarter of fiscal year 2014. Revenues by market contributed the following as a percentage of product revenues as compared to the fourth quarter of fiscal year 2014: • Carrier networking products: 47.4% versus 45.1%
• Enterprise networking products: 43.7% versus 39.9%
• Industrial-IoT networking products: 8.9% versus 15.0%
• Intellectual property revenues totaled $0.8 million, compared to $1.7 million in the fourth quarter of fiscal year 2014 and $2.2 million in the first quarter of fiscal year 2014.
• Product margins were 58.1%, compared to 60.9% in the fourth quarter of fiscal year 2014 and 57.1% in the first quarter of fiscal year 2014. Total gross margins were 59.4%, compared to 63.1% in the fourth quarter of fiscal year 2014 and 60.6% in the first quarter of fiscal year 2014.
• Operating expenses were $18.9 million, compared to operating expenses of $18.8 million in the fourth quarter of fiscal year 2014 and $18.6 million in the first quarter of fiscal year 2014.
• Operating loss was $4.2 million, compared to operating loss of $0.7 million in the fourth quarter of fiscal year 2014 and $2.2 million in the first quarter of fiscal year 2014.
• Non-GAAP operating loss was $2.2 million, compared to non-GAAP operating income of $1.0 million in the fourth quarter of fiscal year 2014 and non-GAAP operating loss of $0.9 million in the first quarter of fiscal year 2014.
• Net loss was $5.0 million, or $0.07 per basic and fully diluted share. This compares to net loss of $2.5 million, or $0.04 per basic and fully diluted share, in the fourth quarter of fiscal year 2014, and net loss of $5.4 million, or $0.09 per basic and fully diluted share, in the first quarter of fiscal year 2014.
• Non-GAAP net loss was $3.1 million, or $0.04 per basic and fully diluted share, compared to non-GAAP net loss of $0.8 million, or $0.01 per basic and fully diluted share, for the fourth quarter of fiscal year 2014, and non-GAAP net loss of $2.4 million, or $0.04 per basic and fully diluted share, in the first quarter of fiscal year 2014.
Balance Sheet Data at December 31, 2014 as Compared to September 30, 2014
• Cash and restricted cash were $33.4 million, compared to $72.7 million, reflecting the $32.8 million debt repayment in October 2014.
• Accounts receivable was $10.1 million, compared to $10.9 million.
• Inventories were $15.7 million, compared to $12.8 million.
Financial Outlook
For the second quarter of fiscal year 2015, ending March 31, 2015, Vitesse expects revenues to be in the range of $24.0 million to $26.0 million and product margins to be between 58% and 61%. GAAP operating expenses are expected to be between $17.5 million and $18.5 million.
February 3, 2015 Conference Call Information
A conference call is scheduled for today, February 3, 2015, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to review financial results for the first quarter of fiscal year 2015. To listen to the conference call via telephone, dial 888.312.3048 (U.S. toll-free) or 719.325.2244 (International) and provide the passcode 8306732. Participants should dial in at least 10 minutes prior to the start of the call. To listen via the Internet, the webcast can be accessed through the investor section of the Vitesse corporate web site at www.vitesse.com.
The playback of the conference call will be available approximately two hours after the call concludes and will be accessible on the Vitesse corporate web site or by calling 877.870.5176 (U.S. toll-free) or 858.384.5517 (International) and entering the passcode 8306732. The audio replay will be available for seven days.
About Vitesse
Vitesse (VTSS) designs a diverse portfolio of high-performance semiconductors, application software, and integrated turnkey systems solutions for Carrier, Enterprise and Internet of Things (IoT) networks worldwide. Vitesse products enable the fastest-growing network infrastructure markets including Mobile Access/IP Edge, Enterprise Cloud Access, and Industrial-IoT Networking. Visit www.vitesse.com or follow us on Twitter @VitesseSemi.
Vitesse is a registered trademark of Vitesse Semiconductor Corporation in the United States and other jurisdictions. All other trademarks or registered trademarks mentioned herein are the property of their respective holders.
VTSS-F
Cautions Regarding Forward Looking Statements
All statements included or incorporated by reference in this release and the related conference call for analysts and investors, other than statements or characterizations of historical fact, are forward-looking statements that are based on our current expectations, estimates and projections about our business and industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” and similar terms, and variations or negatives of these words. Examples of forward-looking statements in this release include the Company’s financial outlook for its second quarter of fiscal year 2015, potential new markets for the Company’s products and size of addressable markets, and anticipated new product, design win and new customer growth in fiscal year 2015. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that could affect the Company’s forward-looking statements include, among other things: identification of feasible new product initiatives, management of R&D efforts and the resulting successful development of new products and product platforms; acceptance by customers of the Company’s products; reliance on key suppliers; rapid technological change in the industries in which the Company operates; and competitive factors, including pricing pressures and the introduction by others of new products with similar or better functionality than the Company’s products. These and other risks are more fully described in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K that was filed on December 4, 2014, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Measures
A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
We provide non-GAAP measures of non-GAAP operating expenses, non-GAAP income (loss) from operations and non-GAAP net income (loss) as a supplement to financial results based on GAAP operating expenses, GAAP income (loss) from operations and GAAP net income (loss). The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. We believe the presentation of non-GAAP measures provides investors with additional insight into underlying operating results and prospects for the future by excluding gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. Management uses these measures internally to evaluate the Company’s in-period operating performance before taking into account these non-operating gains, losses and charges. In addition, the measures are used for planning and forecasting of the Company’s performance in future periods.
In deriving non-GAAP operating expenses from GAAP operating expenses, we exclude stock-based compensation charges and amortization of intangible assets. In deriving non-GAAP income (loss) from operations from GAAP income (loss) from operations, we exclude stock-based compensation charges and amortization of intangible assets. In deriving non-GAAP net income (loss) from GAAP net income (loss), we further exclude loss on extinguishment of debt. Stock-based compensation charges, amortization of intangible assets, and loss on extinguishment of debt represent charges that recur in amounts unrelated to the Company’s operations.
The non-GAAP financial measures we provide have certain limitations because they do not reflect all of the costs associated with the operation of our business as determined in accordance with GAAP. Non-GAAP operating expenses, non-GAAP income (loss) from operations and non-GAAP net income (loss) are in addition to, and are not a substitute for or superior to, operating expenses, income (loss) from operations and net income (loss), which are prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. A detailed reconciliation of the non-GAAP measures to the most directly comparable GAAP measure is set forth below. Investors are encouraged to review these reconciliations to appropriately incorporate the non-GAAP measures and the limitations of these measures into their analyses. For complete information on stock-based compensation, amortization of intangible assets, and loss on extinguishment of debt, please see our Form 10-Q for the quarterly period ended December 31, 2014 and Form 10-K for the year ended September 30, 2014.
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
December 31,
2014 September 30,
2014
(in thousands, except par value)
ASSETS
Current assets:
Cash $ 31,745 $ 71,903
Accounts receivable 10,081 10,850
Inventories 15,705 12,792
Restricted cash 1,608 794
Prepaid expenses and other current assets 2,170 1,047
Total current assets 61,309 97,386
Property, plant and equipment, net 2,913 2,858
Other intangible assets, net 1,811 1,476
Other assets 1,511 3,104
$ 67,544 $ 104,824
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 7,947 $ 6,814
Accrued expenses and other current liabilities 9,548 12,472
Current portion of debt, net — 32,727
Deferred revenue 6,302 4,902
Total current liabilities 23,797 56,915
Other long-term liabilities 225 234
Long-term debt, net 16,508 16,417
Convertible subordinated debt, net — —
Total liabilities 40,530 73,566
Stockholders’ equity:
Preferred stock, $0.01 par value: 10,000 shares authorized; no shares issued or outstanding — —
Common stock, $0.01 par value: 250,000 shares authorized; 68,426 and 67,703 shares outstanding at December 31, 2014 and September 30, 2014, respectively 684 677
Additional paid-in-capital 1,925,774 1,924,984
Accumulated deficit (1,899,444 ) (1,894,403 )
Total stockholders’ equity 27,014 31,258
$ 67,544 $ 104,824
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months ended
December 31, September 30, December 31,
2014 2014 2013
Net revenues: (in thousands, except per share data)
Product revenues $ 23,969 $ 27,007 $ 24,863
Intellectual property revenues 786 1,664 2,220
Net revenues 24,755 28,671 27,083
Costs and expenses:
Cost of product revenues 10,053 10,571 10,676
Engineering, research and development 11,337 10,869 10,679
Selling, general and administrative 7,415 7,792 7,854
Amortization of intangible assets 100 93 88
Costs and expenses 28,905 29,325 29,297
Loss from operations (4,150 ) (654 ) (2,214 )
Other expense:
Interest expense, net 818 1,521 1,704
Loss on extinguishment of debt — — 1,594
Other, net 28 28 61
Other expense, net 846 1,549 3,359
Loss before income tax expense (benefit) (4,996 ) (2,203 ) (5,573 )
Income tax expense (benefit) 45 282 (202 )
Net loss $ (5,041 ) $ (2,485 ) $ (5,371 )
Net loss per common share - basic and diluted $ (0.07 ) $ (0.04 ) $ (0.09 )
Weighted average common shares outstanding - basic and diluted 67,974 67,580 57,610
VITESSE SEMICONDUCTOR CORPORATION
UNAUDITED RECONCILIATION OF GAAP RESULTS TO NON-GAAP RESULTS
Three Months Ended
December 31, September 30, December 31,
2014 2014 2013
(in thousands, except per share data)
UNAUDITED RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
GAAP net loss $ (5,041 ) $ (2,485 ) $ (5,371 )
Adjustments:
Stock-based compensation charges 1,831 1,609 1,265
Amortization of intangible assets 100 93 88
Loss on extinguishment of debt — — 1,594
Total GAAP to non-GAAP adjustments 1,931 1,702 2,947
Non-GAAP net loss $ (3,110 ) $ (783 ) $ (2,424 )
Net loss per common share - basic and diluted:
GAAP net loss per common share $ (0.07 ) $ (0.04 ) $ (0.09 )
Adjustments 0.03 0.03 0.05
Non-GAAP net loss per common share $ (0.04 ) $ (0.01 ) $ (0.04 )
UNAUDITED RECONCILIATION OF GAAP LOSS FROM OPERATIONS TO NON-GAAP (LOSS) INCOME FROM OPERATIONS
GAAP loss from operations $ (4,150 ) $ (654 ) $ (2,214 )
Adjustments:
Stock-based compensation charges 1,831 1,609 1,265
Amortization of intangible assets 100 93 88
Total GAAP to non-GAAP adjustments 1,931 1,702 1,353
Non-GAAP (loss) income from operations $ (2,219 ) $ 1,048 $ (861 )
UNAUDITED RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
GAAP operating expenses:
Engineering, research and development $ 11,337 $ 10,869 $ 10,679
Selling, general and administrative 7,415 7,792 7,854
Amortization of intangible assets 100 93 88
Total GAAP operating expenses 18,852 18,754 18,621
Adjustments:
Stock-based compensation charges 1,601 1,405 1,081
Amortization of intangible assets 100 93 88
Total GAAP to non-GAAP adjustments 1,701 1,498 1,169
Non-GAAP operating expenses $ 17,151 $ 17,256 $ 17,452
Contact:
Company Contact:
Vitesse Semiconductor
Marty McDermut
1.805.388.3700
invest@vitesse.com
www.vitesse.com
or
Agency Contact:
LHA
Kirsten Chapman
1.415.433.3777
OAKLAND, CA--(Marketwired - Feb 4, 2015) - The Clorox Company (NYSE: CLX) today reported 3 percent sales growth and 8 percent diluted net earnings per share (EPS) growth from continuing operations for its second quarter, which ended Dec. 31, 2014. On a currency-neutral basis, sales grew 6 percent.
"Clorox delivered solid first-half results," said Chief Executive Officer Benno Dorer. "In the second quarter, we delivered strong volume and sales growth, as well as improved market shares across several categories. Importantly, we continued to invest in incremental demand-building programs, which helped drive our topline results.
"While we anticipate increased impacts from unfavorable foreign exchange and other headwinds in the second half of the fiscal year, we'll remain focused on executing our 2020 Strategy, with the goal to accelerate profitable growth, including investing in our brands to grow our categories and overall market share."
All results in this press release are reported on a continuing operations basis, unless otherwise stated. As previously announced, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are now included in discontinued operations in the company's financial statements. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and reconciliations of key second-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2014, unless otherwise stated.
•97 cents diluted EPS (8% growth)
•4% volume growth
•3% sales growth
In the second quarter, Clorox delivered earnings from continuing operations of $128 million, or 97 cents diluted EPS, compared to $118 million, or 90 cents diluted EPS, in the year-ago quarter. Second-quarter results reflected higher sales and volume, the benefits of cost savings and price increases, as well as lower selling and administrative expenses. These factors were partially offset by the impact of unfavorable foreign currency exchange rates, incremental demand-building investments, higher commodity costs and increased manufacturing and logistics costs.
In the second quarter, sales grew 3 percent, reflecting double-digit growth in the Professional Products, Natural Personal Care and Bags and Wraps businesses. Total company sales growth was driven primarily by higher volume and the benefit of price increases, partially offset by the impact of 3 percentage points from unfavorable foreign currency exchange rates. Volume for the second quarter increased 4 percent, reflecting shipment growth in all four segments.
The company's second-quarter gross margin increased 10 basis points to 42.5 percent, reflecting the benefits of cost savings and price increases, which were largely offset by higher commodity costs, primarily from resin, as the benefits related to lower energy costs are not expected to be seen until the second half of the fiscal year. The company's gross margin was also affected by increased manufacturing and logistics costs, largely due to the impact of continued high inflation in International.
Year-to-date net cash provided by continuing operations was $267 million, compared with $222 million in the year-ago period. Contributing factors to the year-over-year change were lower employee incentive compensation payments and lower tax payments in the current quarter, as well as the initial funding of the company's non-qualified deferred compensation plan in the year-ago quarter. These factors were partially offset by $25 million in payments to settle interest-rate hedges related to the company's issuance of long-term debt. In December 2014, the company issued $500 million in senior notes, increasing the company's quarter-end cash balance, with proceeds subsequently used to pay down a portion of notes that matured on January 15th of this year.
Key Segment Results
Following is a summary of key second-quarter results from continuing operations by reportable segment. All comparisons are with the second quarter of fiscal 2014, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
•3% volume growth
•3% sales growth
•6% pretax earnings growth
Volume growth in the segment was driven by double-digit gains in Professional Products, reflecting increases in its cleaning and health care businesses, which were driven, in part, by Ebola and Enterovirus concerns. Volume for Home Care and Laundry was essentially flat. Home Care volume results reflected the distribution loss of Clorox® disinfecting wipes at a major club customer in calendar year 2014, offset by double-digit Clorox® disinfecting wipes gains at other retailers and volume growth across multiple Home Care brands. Laundry volume results reflected continued bleach category softness. Home Care and Laundry grew market share in total, with gains across multiple brands. Pretax earnings growth reflected higher sales, as well as the benefits of cost savings and price increases, partially offset by incremental demand-building investments and higher commodity costs.
Household
(Bags and Wraps, Charcoal, Cat Litter)
•3% volume growth
•5% sales growth
•24% pretax earnings growth
Segment volume growth was driven primarily by gains in Bags and Wraps behind innovation and increased distribution of Glad® OdorShield® trash bags. Cat Litter also grew volume behind new Fresh Step® extreme light weight cat litter. The variance between volume and sales results was due primarily to the benefit of price increases in Bags and Wraps. Pretax earnings growth reflected higher sales and the benefit of cost savings, partially offset by higher commodity costs and incremental demand-building investments.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
•5% volume growth
•4% sales growth
•6% pretax earnings growth
Volume results in the segment were driven by strong double-digit gains in Natural Personal Care, largely due to innovation in Burt's Bees® lip and face-care products, including continued growth in towelettes. Incremental demand-building programs, including the first-ever television campaign for the Burt's Bees® brand, also contributed to Natural Personal Care's strong sales results. Dressings and Sauces also grew volume primarily from increased merchandising of Hidden Valley® dry mixes and salad dressings. These results were partially offset by lower shipments in Water Filtration due to increased merchandising of private-label filter products. Volume growth outpaced sales growth primarily due to unfavorable mix. Pretax earnings growth reflected higher sales, lower commodity costs and the benefit of cost savings. These factors were partially offset by higher manufacturing costs and higher advertising spending.
International
(All countries outside of the U.S.)
•5% volume growth
•2% sales decrease (11% growth, currency-neutral basis)
•27% pretax earnings decrease
The segment's volume growth reflected gains primarily in Mexico, Canada, Europe and Argentina. Segment sales reflected the impact of unfavorable foreign currency exchange rates across most countries, partially offset by the benefit of price increases. On a currency-neutral basis, segment sales grew 11 percent. Pretax earnings declined $9 million primarily due to the impact of unfavorable foreign currency exchange rates and higher selling and administrative expenses, as well as increased manufacturing and logistics costs and higher commodity costs, largely driven by continued high inflation. These factors were partially offset by higher volume and the benefits of price increases and cost savings.
Clorox Updates Outlook for Fiscal Year 2015
•About 1% sales growth (previously sales about flat)
•EBIT margin about flat (unchanged)
•$4.40 to $4.55 diluted EPS range (previously $4.35 to $4.50)
The company now anticipates fiscal-year 2015 sales to grow about 1 percent, reflecting first-half sales results, product innovation and the benefit of price increases. The fiscal-year sales outlook also now anticipates a greater impact from unfavorable foreign exchange rates in the range of 2 percent to 3 percent. Other moderating factors include slowing economies in international markets and an increase in full-year trade-promotion spending to drive the company's core business and trial of new products in a highly competitive environment.
Clorox continues to anticipate moderate gross margin expansion in fiscal year 2015, reflecting the benefits of cost savings and price increases. The company now anticipates commodity costs to be about flat, due to energy cost declines, which are expected to be partially offset by higher logistics costs, as well as the aforementioned increase in full-year trade-promotion spending.
Clorox continues to anticipate EBIT margin to be about flat for fiscal year 2015, reflecting moderate gross margin expansion, offset by higher demand-building investments.
Clorox continues to anticipate its effective fiscal year 2015 tax rate to be about 34 percent.
Net of all these factors, Clorox now anticipates fiscal 2015 diluted EPS from continuing operations in the range of $4.40 to $4.55.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
•Combined financial tables that include the schedules below
•Supplemental unaudited condensed volume and sales growth information
•Supplemental unaudited condensed gross margin driver information
•Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
•Supplemental balance sheet and cash flow information and free cash flow reconciliation (unaudited)
•Supplemental price-change information
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2014 sales of $5.5 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford® charcoal; Hidden Valley® and KC Masterpiece® dressings and sauces; Brita® water-filtration products and Burt's Bees® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare®, HealthLink®, Aplicare® and Dispatch® infection control products for the healthcare industry. More than 80 percent of the company's brands hold the No. 1 or No. 2 market share positions in their categories. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2014, The Clorox Company and The Clorox Company Foundation contributed more than $16 million in combined cash grants, product donations, cause marketing and employee volunteerism. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. Except for historical information, matters discussed above, including statements about future volume, sales, costs, cost savings, earnings, cash flows, plans, objectives, expectations, growth, or profitability, are forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exhibit 99.2 of the Company's Current Report on Form 8-K filed on December 4, 2014, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: risks related to international operations, including political instability; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor unrest and inflationary pressures, particularly in Argentina and other challenging markets; risks related to the possibility of nationalization, expropriation of assets, or other government action in foreign jurisdictions; risks related to the Company's discontinuation of operations in Venezuela; intense competition in the company's markets; changes in the company's leadership; worldwide, regional and local economic conditions and financial market volatility; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy, transportation or other costs; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to implement and generate anticipated cost savings and efficiencies; the success of the company's business strategies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs, including the potential for asset impairment charges, related to, among others, intangible assets and goodwill; risks related to reliance on information technology systems, including potential security breaches, cyber attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, diluted EPS, the debt to EBITDA ratio and EBIT margin. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the company's consolidated financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events on the company's website.
Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share amounts
Three Months Ended Six Months Ended
12/31/2014 12/31/2013 12/31/2014 12/31/2013
Net sales $ 1,345 $ 1,308 $ 2,697 $ 2,651
Cost of products sold 773 753 1,547 1,512
Gross profit 572 555 1,150 1,139
Selling and administrative expenses 191 196 371 390
Advertising costs 127 122 248 242
Research and development costs 33 31 63 62
Interest expense 26 26 52 52
Other (income) expense, net (2 ) (4 ) 1 (2 )
Earnings from continuing operations before income taxes 197 184 415 395
Income taxes on continuing operations 69 66 142 138
Earnings from continuing operations 128 118 273 257
Losses from discontinued operations, net of tax (3 ) (3 ) (58 ) (6 )
Net earnings $ 125 $ 115 $ 215 $ 251
Net earnings (losses) per share
Basic
Continuing operations $ 0.98 $ 0.91 $ 2.10 $ 1.99
Discontinued operations (0.02 ) (0.02 ) (0.44 ) (0.06 )
Basic net earnings per share $ 0.96 $ 0.89 $ 1.66 $ 1.93
Diluted
Continuing operations $ 0.97 $ 0.90 $ 2.07 $ 1.95
Discontinued operations (0.02 ) (0.03 ) (0.44 ) (0.05 )
Diluted net earnings per share $ 0.95 $ 0.87 $ 1.63 $ 1.90
Weighted average shares outstanding (in thousands)
Basic 130,555 129,836 129,933 129,955
Diluted 132,819 132,278 132,203 132,276
Reportable Segment Information
(Unaudited)
Dollars in millions
Second Quarter Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Three Months Ended Three Months Ended
12/31/14 12/31/13 (1) % Change (2) 12/31/14 12/31/13 (1) % Change (2)
Cleaning Segment $ 447 $ 432 3% $ 107 $ 101 6%
Household Segment 371 352 5% 51 41 24%
Lifestyle Segment 246 237 4% 73 69 6%
International Segment 281 287 -2% 24 33 -27%
Corporate - - - (58 ) (60 ) -3%
Total Company $ 1,345 $ 1,308 3% $ 197 $ 184 7%
Year-to-Date Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Six Months Ended Six Months Ended
12/31/14 12/31/13 (1) % Change (2) 12/31/14 12/31/13 (1) % Change (2)
Cleaning Segment $ 917 $ 911 1% $ 231 $ 232 0%
Household Segment 763 724 5% 103 93 11%
Lifestyle Segment 462 455 2% 129 122 6%
International Segment 555 561 -1% 50 64 -22%
Corporate - - - (98 ) (116 ) -16%
Total Company $ 2,697 $ 2,651 2% $ 415 $ 395 5%
(1) As a result of Clorox Venezuela results being included in discontinued operations beginning in the first fiscal quarter of the current fiscal year, the prior comparative period has been reclassified to conform with current quarter presentation.
(2) Percentages based on rounded numbers.
Condensed Consolidated Balance Sheets
Dollars in millions
12/31/2014 6/30/2014 12/31/2013
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 819 $ 329 $ 341
Receivables, net 473 546 499
Inventories, net 446 386 466
Other current assets 167 134 194
Total current assets 1,905 1,395 1,500
Property, plant and equipment, net 933 977 992
Goodwill 1,080 1,101 1,100
Trademarks, net 537 547 552
Other intangible assets, net 55 64 67
Other assets 164 174 177
Total assets $ 4,674 $ 4,258 $ 4,388
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 2 $ 143 $ 342
Current maturities of long-term debt 875 575 -
Accounts payable 375 440 359
Accrued liabilities 492 472 480
Income taxes payable - 8 -
Total current liabilities 1,744 1,638 1,181
Long-term debt 1,795 1,595 2,170
Other liabilities 773 768 765
Deferred income taxes 81 103 116
Total liabilities 4,393 4,104 4,232
Stockholders' equity
Common stock 159 159 159
Additional paid-in capital 726 709 693
Retained earnings 1,757 1,739 1,623
Treasury shares (1,908 ) (2,036 ) (1,932 )
Accumulated other comprehensive net losses (453 ) (417 ) (387 )
Stockholders' equity 281 154 156
Total liabilities and stockholders' equity $ 4,674 $ 4,258 $ 4,388
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
Second-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation
Q2 Fiscal 2015 Q2 Fiscal 2014 Q2 YTD Fiscal 2015 Q2 YTD Fiscal 2014
Total Sales Growth - GAAP 2.9% 0.5% 1.7% 1.4%
Less: Foreign exchange -2.8 -1.7 -2.4 -1.6
Currency Neutral Sales Growth - Non-GAAP 5.7% 2.2% 4.1% 3.0%
The reconciliations below for fiscal year 2014 are provided as a reference point for the fiscal year 2015 outlook, and reflect the reclassification of Clorox Venezuela to discontinued operations in Q1FY15.
Fiscal Year EBIT Margin(1) Reconciliation
FY
Fiscal
2014
Earnings from continuing operations $884
before income taxes - GAAP
Interest Income -3
Interest Expense 103
EBIT (1)- non-GAAP $984
Net Sales $5,514
EBIT margin (1)- non-GAAP 17.80%
(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
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Nathan's Famous, Inc. Reports Third Quarter Results
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PR Newswire
Nathan's Famous, Inc.
3 hours ago
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JERICHO, N.Y., Feb. 4, 2015 /PRNewswire/ -- Nathan's Famous, Inc. (NATH) today reported results for the third quarter of its 2015 fiscal year that ended December 28, 2014.
For the thirteen weeks ended December 28, 2014:
•Net income increased by 102.4% to $2,241,000, as compared to $1,107,000 for the thirteen weeks ended December 29, 2013;
•Earnings per diluted share increased by 104.2% to $0.49 per share, as compared to $0.24 per share for the thirteen weeks ended December 29, 2013;
•Earnings before income taxes increased by 110.2% to $3,803,000 as compared to $1,809,000 for the thirteen weeks ended December 29, 2013; and
•Revenues increased by 20.6% to $22,353,000, as compared to $18,533,000 during the thirteen weeks ended December 29, 2013.
For the thirty-nine weeks ended December 28, 2014:
•Net income increased by 43.0% to $10,166,000 as compared to $7,109,000 for the thirty-nine weeks ended December 29, 2013;
•Earnings per diluted share increased by 43.5% to $2.21 per share, as compared to $1.54 per share for the thirty-nine weeks ended December 29, 2013;
•Earnings before income taxes increased by 84.8% to $17,193,000 as compared to $9,306,000 for the thirty-nine weeks ended December 29, 2013 (excluding non-routine items in 2013 relating to an insurance gain of $2,801,000 offset by an impairment charge of $400,000); and
•Revenues increased by 25.8% to $78,974,000, as compared to $62,795,000 during the thirty-nine weeks ended December 29, 2013, (excluding the non-routine insurance gain of $2,801,000 in 2013).
The Company reported the following:
•Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 13.2% to $45,568,000 during the thirty-nine weeks ended December 28, 2014, as compared to sales of $40,256,000 during the thirty-nine weeks ended December 29, 2013.
•Sales from the Company-operated restaurants increased by 25.7% to $14,497,000 during the thirty-nine weeks ended December 28, 2014 as compared to $11,536,000 during the thirty-nine weeks ended December 29, 2013. The increase in sales was due to the following: (1) Our Yonkers restaurant, operated for thirty-nine weeks this year and was closed for renovations for thirty-three weeks last year; (2) Our Flagship Coney Island restaurant, which was severely damaged by Superstorm Sandy, operated for thirty-nine weeks during the current year as compared to operating for only thirty-one weeks last year; and (3) higher sales at both Coney Island locations during the comparative periods of operations.
•License royalties pursuant to all license agreements increased by 119.8% to $13,652,000 during the thirty-nine weeks ended December 28, 2014, as compared to $6,211,000 during the thirty-nine weeks ended December 29, 2013.
•Revenues from franchise operations increased by 4.5% to $4,473,000 during the thirty-nine weeks ended December 28, 2014, as compared to $4,279,000 during the thirty-nine weeks ended December 29, 2013. Twenty-eight new franchised units were opened during the thirty-nine weeks ended December 28, 2014, including fourteen Branded Menu Program outlets and ten international locations, including our first locations in Costa Rica and Malaysia.
•During the thirty-nine weeks ended December 29, 2013, Nathan's realized a gain of $2,801,000 in connection with the settlement of its flood damage and contents loss insurance claims relating to Superstorm Sandy and recognized an impairment charge of $400,000 in connection with a long-term investment.
About Nathan's Famous
Nathan's is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Cayman Islands and ten foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 480 million Nathan's Famous hot dogs were sold. Nathan's was ranked #22 on the Forbes 2014 list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. For additional information about Nathan's please visit our website at www.nathansfamous.com.
Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions identify forward-looking statements, which are based on the current belief of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially include but are not limited to: economic, weather (including the three-year drought in the Midwest, along with freezing temperatures during the winter causing a reduced supply of cattle), and continued increases in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with John Morrell & Co. and any issues arising from or related to the transition from SMG Inc. to John Morrell & Co. as our primary hot dog supplier; the ability to continue to attract franchisees; no material increases in the minimum wage or other changes in labor laws or the impact of a new union contract; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; the impact of changes in the economic relationship between the United States and Russia; and the future effects of any food borne illness; such as bovine spongiform encephalopathy, BSE; and the risk factors reported from time to time in the Company's SEC reports. The Company does not undertake any obligation to update such forward-looking statements.
Nathan's Famous, Inc.
Financial Highlights
Thirteen weeks ended
Thirty-nine weeks ended
Dec. 28, 2014
Dec. 29, 2013
Dec. 28, 2014
Dec. 29, 2013
(unaudited)
(unaudited)
Total revenues
$ 22,353,000
$ 18,533,000
$ 78,974,000
$ 65,596,000
Net income
$ 2,241,000
$ 1,107,000
$ 10,166,000
$ 7,109,000
Income per share:
Basic
$ 0.50
$ 0.25
$ 2.27
$ 1.60
Diluted
$ 0.49
$ 0.24
$ 2.21
$ 1.54
Weighted-average shares used in
computing income per share:
Basic
4,482,000
4,466,000
4,475,000
4,447,000
Diluted
4,603,000
4,622,000
4,596,000
4,609,000
COMPANY CONTACT:
Ronald G. DeVos, Vice President - Finance and CFO
(516) 338-8500 ext. 229
Newell Rubbermaid Announces Strong Fourth Quarter and Full Year Results
3.3% Core Sales Growth and Normalized EPS of $0.49
4.1% Net Sales Growth and Reported EPS of $0.19
2015 Guidance Revised to Reflect Improved Core Sales Outlook and Negative Impact of Foreign Currency
Fourth Quarter Executive Summary
3.3 percent core sales growth, excluding foreign currency and the impact of acquisitions; 4.1 percent net sales growth including a 400 basis point contribution from acquisitions
Full year core sales growth of 3.0 percent; 2.1 percent full year net sales growth
37.7 percent normalized gross margin, a 70 basis point improvement compared to the prior year; 37.6 percent reported gross margin, a 60 basis point improvement compared to the prior year
13.4 percent normalized operating margin, a 120 basis point improvement compared to the prior year; 7.4 percent reported operating margin, a 330 basis point decline compared to prior year due to a $65.4 million non-cash pension settlement charge in 2014
$0.49 normalized EPS compared to $0.46 in the prior year, a 6.5 percent increase despite significantly increased advertising investment; $0.19 reported EPS compared to $0.41 in the prior year driven by the $65.4 million non-cash pension settlement charge
Full year normalized EPS of $2.00 compared to $1.82 in the prior year; $1.35 reported EPS compared to $1.63 in the prior year
• Repurchased 2.8 million shares at a cost of $100.6 million
Completed acquisitions of bubba brands, inc. and Baby Jogger Holdings, Inc.
Announced $200 million expansion and extension of Project Renewal through the end of 2017; cumulative annualized savings over total project expected to be $470 to $525 million
Announced expansion of on-going share repurchase program to repurchase up to an additional $500 million in outstanding shares through the end of 2017
The "Street" has CLX coming in at .91 for the quarter that should be reported on or about January, 29 2015! All post's welcome! The "Good Dr's In"!
The "Street" has CLX coming in at .91 for the quarter that should be reported on or about January, 29 2015! All post's welcome! The "Good Dr's In"!