Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
>>> Doctors ‘truly amazed’ by man’s recovery after world-first whole-eye transplant
by Nilima Marshall
PA Science Reporter
September 9, 2024
https://www.yahoo.com/news/doctors-truly-amazed-man-recovery-150000838.html
Surgeons who performed the world’s first whole eye transplant on an army veteran said they have been “truly amazed” by his remarkable recovery.
Aaron James, 47, from Arkansas in the US, lost his left eye and most of his face after an electrical cable touched the left side three years ago.
In May 2023, he underwent 21 hours of surgery involving more than 140 healthcare professionals to replace his face – which included getting a new eye.
Now more than a year later, his donor eye continues to maintain normal pressure and blood flow – despite surgeries on animals showing a different outcome where the eye often shrank significantly, the doctors said.
Eduardo D Rodriguez, chair of the Hansjorg Wyss Department of Plastic Surgery at NYU Langone Health in the US, said: “We are truly amazed by Aaron’s recovery, with no episodes of rejection.”
Tests also show that that rods and cones, the light-sensitive nerve cells in the eye, survived the transplant.
Doctors say this raises hope that one day, whole-eye transplants could be performed to restore sight – despite Mr James still yet to regain his vision in his left eye.
Dr Daniel J Ceradini, director of research and associate professor in the Hansjorg Wyss Department of Plastic Surgery, said: “The whole thing has been a monumental achievement, considering how Aaron has done post operatively and how good he functions and looks.”
He said scans suggest the brain may be responding to the light through the donor eye but added that these findings, published in the journal Jama, “are very preliminary and would need to be studied over time”.
Mr James, who served in the Army National Guard for 10 years, said that being able to smell, taste and eat solid food – particularly pizza – after surviving on purees for two years was a “shining moment”.
He added: “I knew getting back to normal would be (on track) if I could eat pizza.
“The very first thing that I can remember when I woke up from surgery is being able to smell, because before that, I didn’t have a nose, so I couldn’t smell, and that also meant I could not taste anything.
“The only way I could eat was through a straw because by mouth was locked – I couldn’t open or close my mouth.”
Mr James, who also lost his left arm in the accident and now wears a prosthetic, said that since surgery, he is now “pretty much back to being a normal guy, doing normal things”.
Meagan James, 39, his wife of more than 20 years, said her emotional moment was when she kissed her husband on the lips for the first time in two years.
She said: “Just to have that back was pretty special.”
Prof Ceradini said the team will continue to do more work to understand how to restore sight to the eye.
He said one of the steps could involve helping the optic nerve – which send visual messages to the brain to help a person see – regrow.
Despite not being able to see with his left eye, Mr James said he “felt honoured to be patient zero”.
He said: “This has been the most transformative year of my life.
“I’ve been given the gift of a second chance, and I don’t take a single moment for granted.
“I’ve gained my quality of life back, and I know this is a step forward in the path to help future patients.”
<<<
---
>>> Doctors ‘truly amazed’ by man’s recovery after world-first whole-eye transplant
by Nilima Marshall
PA Science Reporter
September 9, 2024
https://www.yahoo.com/news/doctors-truly-amazed-man-recovery-150000838.html
Surgeons who performed the world’s first whole eye transplant on an army veteran said they have been “truly amazed” by his remarkable recovery.
Aaron James, 47, from Arkansas in the US, lost his left eye and most of his face after an electrical cable touched the left side three years ago.
In May 2023, he underwent 21 hours of surgery involving more than 140 healthcare professionals to replace his face – which included getting a new eye.
Now more than a year later, his donor eye continues to maintain normal pressure and blood flow – despite surgeries on animals showing a different outcome where the eye often shrank significantly, the doctors said.
Eduardo D Rodriguez, chair of the Hansjorg Wyss Department of Plastic Surgery at NYU Langone Health in the US, said: “We are truly amazed by Aaron’s recovery, with no episodes of rejection.”
Tests also show that that rods and cones, the light-sensitive nerve cells in the eye, survived the transplant.
Doctors say this raises hope that one day, whole-eye transplants could be performed to restore sight – despite Mr James still yet to regain his vision in his left eye.
Dr Daniel J Ceradini, director of research and associate professor in the Hansjorg Wyss Department of Plastic Surgery, said: “The whole thing has been a monumental achievement, considering how Aaron has done post operatively and how good he functions and looks.”
He said scans suggest the brain may be responding to the light through the donor eye but added that these findings, published in the journal Jama, “are very preliminary and would need to be studied over time”.
Mr James, who served in the Army National Guard for 10 years, said that being able to smell, taste and eat solid food – particularly pizza – after surviving on purees for two years was a “shining moment”.
He added: “I knew getting back to normal would be (on track) if I could eat pizza.
“The very first thing that I can remember when I woke up from surgery is being able to smell, because before that, I didn’t have a nose, so I couldn’t smell, and that also meant I could not taste anything.
“The only way I could eat was through a straw because by mouth was locked – I couldn’t open or close my mouth.”
Mr James, who also lost his left arm in the accident and now wears a prosthetic, said that since surgery, he is now “pretty much back to being a normal guy, doing normal things”.
Meagan James, 39, his wife of more than 20 years, said her emotional moment was when she kissed her husband on the lips for the first time in two years.
She said: “Just to have that back was pretty special.”
Prof Ceradini said the team will continue to do more work to understand how to restore sight to the eye.
He said one of the steps could involve helping the optic nerve – which send visual messages to the brain to help a person see – regrow.
Despite not being able to see with his left eye, Mr James said he “felt honoured to be patient zero”.
He said: “This has been the most transformative year of my life.
“I’ve been given the gift of a second chance, and I don’t take a single moment for granted.
“I’ve gained my quality of life back, and I know this is a step forward in the path to help future patients.”
<<<
---
>>> State Street, Apollo Propose Private Credit ETF
by DJ Shaw
Sep 11, 2024
https://finance.yahoo.com/news/state-street-apollo-propose-private-181436775.html
State Street Global Advisors and Apollo Global Management are collaborating to introduce a private credit ETF that would offer retail investors access to private credit markets, according to a Tuesday Securities and Exchange Commission filing.
The proposed SPDR SSGA Apollo IG Public & Private Credit ETF would invest in a mix of public and private investment-grade debt securities, marking one of the first attempts to package private credit investments into an ETF wrapper, the filing said.
The proposed ETF comes as major asset managers seek ways to make private market investments more accessible to individual investors. Private credit has seen rapid growth in recent years but has largely been limited to institutional investors.
The State Street-Apollo product fund would invest at least 80% of its assets in investment-grade debt, including both public credit-related and private credit investments sourced by Apollo, according to the prospectus. Up to 20% could be allocated to high-yield bonds, the filing said.
Private Credit Innovation
A key feature of the proposed private credit ETF is Apollo’s promise to provide daily pricing for the private investments it sources, the filing said. This approach aims to make traditionally illiquid private credit more tradable, potentially attracting investors interested in this market.
The fund aims to provide income and maximize returns while managing risk by actively investing in U.S. investment-grade bonds, according to the prospectus. These may include government and corporate bonds, securitized loans, mortgage-backed securities, and other debt instruments.
The filing did not specify a proposed ticker symbol or expense ratio, and the new fund would still require regulatory approval before coming to market.
As of June 30, New York-based Apollo had approximately $696 billion of assets under management, according to company data. State Street is the world’s fourth-largest asset manager with $4.4 trillion in assets. Its ETF business manages 138 funds accounting for $1.3 trillion in assets.
<<<
---
>>> State Street, Apollo Propose Private Credit ETF
by DJ Shaw
Sep 11, 2024
https://finance.yahoo.com/news/state-street-apollo-propose-private-181436775.html
State Street Global Advisors and Apollo Global Management are collaborating to introduce a private credit ETF that would offer retail investors access to private credit markets, according to a Tuesday Securities and Exchange Commission filing.
The proposed SPDR SSGA Apollo IG Public & Private Credit ETF would invest in a mix of public and private investment-grade debt securities, marking one of the first attempts to package private credit investments into an ETF wrapper, the filing said.
The proposed ETF comes as major asset managers seek ways to make private market investments more accessible to individual investors. Private credit has seen rapid growth in recent years but has largely been limited to institutional investors.
The State Street-Apollo product fund would invest at least 80% of its assets in investment-grade debt, including both public credit-related and private credit investments sourced by Apollo, according to the prospectus. Up to 20% could be allocated to high-yield bonds, the filing said.
Private Credit Innovation
A key feature of the proposed private credit ETF is Apollo’s promise to provide daily pricing for the private investments it sources, the filing said. This approach aims to make traditionally illiquid private credit more tradable, potentially attracting investors interested in this market.
The fund aims to provide income and maximize returns while managing risk by actively investing in U.S. investment-grade bonds, according to the prospectus. These may include government and corporate bonds, securitized loans, mortgage-backed securities, and other debt instruments.
The filing did not specify a proposed ticker symbol or expense ratio, and the new fund would still require regulatory approval before coming to market.
As of June 30, New York-based Apollo had approximately $696 billion of assets under management, according to company data. State Street is the world’s fourth-largest asset manager with $4.4 trillion in assets. Its ETF business manages 138 funds accounting for $1.3 trillion in assets.
<<<
---
>>> Palantir’s Addition to the S&P 500 Is ‘Validation’ for Stock. So Is This Deal.
Barron's
by Emily Dattilo
Sept 09, 2024
https://www.barrons.com/articles/palantir-stock-price-s-and-p-500-0dffec41?siteid=yhoof2
Palantir Technologies stock divides opinion on Wall Street, but its promotion to the S&P 500 has given the bulls ammunition.
After markets closed Friday, S&P Dow Jones Indices announced that Palantir would replace American Airlines, Dell Technologies would replace Etsy, and Erie Indemnity would replace Bio-Rad Laboratories in the index before the start of trading on Sept. 23.
Being added to the S&P 500 is a heavier lift than the Russell 1000, which relies mostly on large market capitalization. To join the S&P 500, companies need to be profitable under generally accepted accounting principles for four quarters based on the sum of their profits over that span—as well as being GAAP profitable in the most recent quarter— Barron’s Associate Editor Andrew Bary wrote in June, musing that Palantir could be a likely candidate.
Wall Street has been divided on the software and data-integration company, with bulls championing the company’s AI platform and its ability to drive profits higher as demand soars and bears wondering if the stock is overvalued.
Wedbush analyst Dan Ives, who rates Palantir at Outperform with a price target of $38, called the S&P 500 addition a “validation moment.”
“We believe this is the start of a multi-year cycle for PLTR to continue generating significant deal flow on the back of AIP [artificial intelligence platform] as more organizations look to add AI capabilities that provide value and innovation in real time across operations that are unique to each enterprise,” he wrote.
A prime example of this is Palantir and oil giant BP announcing on Monday a five-year enterprise agreement that will extend their strategic relationship and introduce new AI capabilities.
“Palantir’s AIP software will assist bp to safely and reliably harness large language models (LLMs) to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data,” the company said in a press release.
Palantir shares gained 9.8% to $33.30, putting them on track for their highest close in more than three years, according to Dow Jones Market Data.
<<<
---
>>> Palantir’s Addition to the S&P 500 Is ‘Validation’ for Stock. So Is This Deal.
Barron's
by Emily Dattilo
Sept 09, 2024
https://www.barrons.com/articles/palantir-stock-price-s-and-p-500-0dffec41?siteid=yhoof2
Palantir Technologies stock divides opinion on Wall Street, but its promotion to the S&P 500 has given the bulls ammunition.
After markets closed Friday, S&P Dow Jones Indices announced that Palantir would replace American Airlines, Dell Technologies would replace Etsy, and Erie Indemnity would replace Bio-Rad Laboratories in the index before the start of trading on Sept. 23.
Being added to the S&P 500 is a heavier lift than the Russell 1000, which relies mostly on large market capitalization. To join the S&P 500, companies need to be profitable under generally accepted accounting principles for four quarters based on the sum of their profits over that span—as well as being GAAP profitable in the most recent quarter— Barron’s Associate Editor Andrew Bary wrote in June, musing that Palantir could be a likely candidate.
Wall Street has been divided on the software and data-integration company, with bulls championing the company’s AI platform and its ability to drive profits higher as demand soars and bears wondering if the stock is overvalued.
Wedbush analyst Dan Ives, who rates Palantir at Outperform with a price target of $38, called the S&P 500 addition a “validation moment.”
“We believe this is the start of a multi-year cycle for PLTR to continue generating significant deal flow on the back of AIP [artificial intelligence platform] as more organizations look to add AI capabilities that provide value and innovation in real time across operations that are unique to each enterprise,” he wrote.
A prime example of this is Palantir and oil giant BP announcing on Monday a five-year enterprise agreement that will extend their strategic relationship and introduce new AI capabilities.
“Palantir’s AIP software will assist bp to safely and reliably harness large language models (LLMs) to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data,” the company said in a press release.
Palantir shares gained 9.8% to $33.30, putting them on track for their highest close in more than three years, according to Dow Jones Market Data.
<<<
---
>>> Palantir’s Addition to the S&P 500 Is ‘Validation’ for Stock. So Is This Deal.
Barron's
by Emily Dattilo
Sept 09, 2024
https://www.barrons.com/articles/palantir-stock-price-s-and-p-500-0dffec41?siteid=yhoof2
Palantir Technologies stock divides opinion on Wall Street, but its promotion to the S&P 500 has given the bulls ammunition.
After markets closed Friday, S&P Dow Jones Indices announced that Palantir would replace American Airlines, Dell Technologies would replace Etsy, and Erie Indemnity would replace Bio-Rad Laboratories in the index before the start of trading on Sept. 23.
Being added to the S&P 500 is a heavier lift than the Russell 1000, which relies mostly on large market capitalization. To join the S&P 500, companies need to be profitable under generally accepted accounting principles for four quarters based on the sum of their profits over that span—as well as being GAAP profitable in the most recent quarter— Barron’s Associate Editor Andrew Bary wrote in June, musing that Palantir could be a likely candidate.
Wall Street has been divided on the software and data-integration company, with bulls championing the company’s AI platform and its ability to drive profits higher as demand soars and bears wondering if the stock is overvalued.
Wedbush analyst Dan Ives, who rates Palantir at Outperform with a price target of $38, called the S&P 500 addition a “validation moment.”
“We believe this is the start of a multi-year cycle for PLTR to continue generating significant deal flow on the back of AIP [artificial intelligence platform] as more organizations look to add AI capabilities that provide value and innovation in real time across operations that are unique to each enterprise,” he wrote.
A prime example of this is Palantir and oil giant BP announcing on Monday a five-year enterprise agreement that will extend their strategic relationship and introduce new AI capabilities.
“Palantir’s AIP software will assist bp to safely and reliably harness large language models (LLMs) to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data,” the company said in a press release.
Palantir shares gained 9.8% to $33.30, putting them on track for their highest close in more than three years, according to Dow Jones Market Data.
<<<
---
>>> China’s deflationary spiral is now entering dangerous new stage
Bloomberg News
Sep 9, 2024
https://finance.yahoo.com/news/china-deflationary-spiral-now-entering-103006274.html
(Bloomberg) — Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
A broader measure of economy-wide prices known as the gross domestic product deflator will likely extend its current five-quarter drop into 2025, according to Bloomberg Economics and analysts at banks including BNP Paribas SA. That would amount to China’s longest streak of deflation since data began in 1993.
“We are definitely in deflation and probably going through the second stage of deflation,” said Robin Xing, chief China economist at Morgan Stanley, citing evidence from wage decreases. “Experience from Japan suggests that the longer deflation drags on, the more stimulus China will eventually need to break the debt-deflation challenge.”
The danger for China is deflation could snowball by encouraging households reeling from falling paychecks to cut back on spending, or delay purchases because they expect prices to fall further. Corporate revenues will suffer, stifling investment and leading to further salary cuts and layoffs, bankrupting families and firms.
Private surveys show that’s already starting to happen. In sectors of the economy favored by the government — such as electric vehicle-manufacturing and renewables — entry-level salaries declined by almost 10% in August from a peak in 2022, according to findings by Caixin Insight Group and Business Big Data Co.
A survey of 300 company executives by the Cheung Kong Graduate School of Business showed growth in labor costs last month was the weakest since April 2020, when China’s initial Covid lockdowns began to ease.
Separate data from Zhaopin Ltd. shows average hiring salaries in 38 major cities barely changed in the second quarter, in contrast to the 5% growth seen in the two years before the pandemic.
It’s a cycle the world has seen before in Japan starting in the 1990s during a period that came to be known as its “lost decades” — when a grinding stagnation followed a burst bubble in real estate and financial markets.
While Chinese officials have sought to stifle discussion about deflation, warning analysts to avoid using the term, it’s beginning to enter public dialogue. Former central bank Governor Yi Gang last week said rooting out deflation has to take priority for policymakers, a rare admission by a prominent figure in China that falling prices are threatening the outlook.
Yi called for “proactive fiscal policy and accommodative monetary policy” and said officials “should focus on fighting deflationary pressure,” at a panel discussion at the Bund Summit in Shanghai on Friday. China’s immediate goal should be to turn its GDP deflator positive in the coming quarters, he said.
So far, officials have given no sign of any significant shift from their cure-all of encouraging production rather than addressing weak demand with steps such as greater government spending on public services and consumer subsidies.
In a sign price pressures are becoming even more subdued, China’s core inflation — which strips out volatile items such as food and energy — cooled in August to the weakest in more than three years. Expectations for deflation are spilling into markets, stoking a bond rally that’s sent yields to record lows and stoked official concerns that banks have become too exposed to interest-rate risks.
The weak price pressures are evident in the growth pace of China’s nominal GDP, which expanded just 4% in the second quarter — well under the nation’s real economic growth goal of around 5% this year.
At times of weak price gains, nominal expansion is a more useful indicator because it better reflects changes in wages, profits and government revenue, Luo Zhiheng, chief economist at Yuekai Securities Co., wrote in a note earlier this month.
For Jack Liu, a 37-year-old sales engineer of aluminum products in southern China, the impact hit home after realizing he no longer ordered extra eggs at breakfasts.
Plummeting market demand forced his company to cut prices and sell at a loss last year. That slashed his income to less than a 10th of what once exceeded 1 million yuan ($141,000), making mortgage payments a struggle.
“The country doesn’t admit there’s deflation,” said Liu, who lives in Foshan in Guangdong province. He has a modest following of 1,100 people on the Instagram-like Xiaohongshu, where he warns regularly about the danger of deflation.
The speed of the deterioration in China’s price outlook has taken the market by surprise.
Inflation was weaker than forecast in three of the past four months, growing just 0.6% in August — an increase due largely to a 2.8% pickup in food prices. Core inflation last month rose just 0.3% to remain below 1% for an 18th month.
Underscoring the drag on inflation, producer prices have been falling since late 2022. Manufacturers’ raw material and selling prices both contracted for the second month in August, official data shows, while charges by services and construction companies shrank at the fastest pace since April 2020.
The dilemma is that even monetary expansion in China could be deflationary by being mainly directed at the supply side of the economy, Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, wrote in an article last month.
Meanwhile, the deflationary mindset is starting to take hold. Consumer confidence is hovering at a record low, and households report a growing willingness to save instead of spending or buying homes.
For Liu, the aluminum industry worker, as the pain deepens, the solution lies with policymakers in Beijing. “The government needs to at least take some concrete measures,” he said, “to lift consumption and improve people’s expectations.”
<<<
---
>>> China’s deflationary spiral is now entering dangerous new stage
Bloomberg News
Sep 9, 2024
https://finance.yahoo.com/news/china-deflationary-spiral-now-entering-103006274.html
(Bloomberg) — Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
A broader measure of economy-wide prices known as the gross domestic product deflator will likely extend its current five-quarter drop into 2025, according to Bloomberg Economics and analysts at banks including BNP Paribas SA. That would amount to China’s longest streak of deflation since data began in 1993.
“We are definitely in deflation and probably going through the second stage of deflation,” said Robin Xing, chief China economist at Morgan Stanley, citing evidence from wage decreases. “Experience from Japan suggests that the longer deflation drags on, the more stimulus China will eventually need to break the debt-deflation challenge.”
The danger for China is deflation could snowball by encouraging households reeling from falling paychecks to cut back on spending, or delay purchases because they expect prices to fall further. Corporate revenues will suffer, stifling investment and leading to further salary cuts and layoffs, bankrupting families and firms.
Private surveys show that’s already starting to happen. In sectors of the economy favored by the government — such as electric vehicle-manufacturing and renewables — entry-level salaries declined by almost 10% in August from a peak in 2022, according to findings by Caixin Insight Group and Business Big Data Co.
A survey of 300 company executives by the Cheung Kong Graduate School of Business showed growth in labor costs last month was the weakest since April 2020, when China’s initial Covid lockdowns began to ease.
Separate data from Zhaopin Ltd. shows average hiring salaries in 38 major cities barely changed in the second quarter, in contrast to the 5% growth seen in the two years before the pandemic.
It’s a cycle the world has seen before in Japan starting in the 1990s during a period that came to be known as its “lost decades” — when a grinding stagnation followed a burst bubble in real estate and financial markets.
While Chinese officials have sought to stifle discussion about deflation, warning analysts to avoid using the term, it’s beginning to enter public dialogue. Former central bank Governor Yi Gang last week said rooting out deflation has to take priority for policymakers, a rare admission by a prominent figure in China that falling prices are threatening the outlook.
Yi called for “proactive fiscal policy and accommodative monetary policy” and said officials “should focus on fighting deflationary pressure,” at a panel discussion at the Bund Summit in Shanghai on Friday. China’s immediate goal should be to turn its GDP deflator positive in the coming quarters, he said.
So far, officials have given no sign of any significant shift from their cure-all of encouraging production rather than addressing weak demand with steps such as greater government spending on public services and consumer subsidies.
In a sign price pressures are becoming even more subdued, China’s core inflation — which strips out volatile items such as food and energy — cooled in August to the weakest in more than three years. Expectations for deflation are spilling into markets, stoking a bond rally that’s sent yields to record lows and stoked official concerns that banks have become too exposed to interest-rate risks.
The weak price pressures are evident in the growth pace of China’s nominal GDP, which expanded just 4% in the second quarter — well under the nation’s real economic growth goal of around 5% this year.
At times of weak price gains, nominal expansion is a more useful indicator because it better reflects changes in wages, profits and government revenue, Luo Zhiheng, chief economist at Yuekai Securities Co., wrote in a note earlier this month.
For Jack Liu, a 37-year-old sales engineer of aluminum products in southern China, the impact hit home after realizing he no longer ordered extra eggs at breakfasts.
Plummeting market demand forced his company to cut prices and sell at a loss last year. That slashed his income to less than a 10th of what once exceeded 1 million yuan ($141,000), making mortgage payments a struggle.
“The country doesn’t admit there’s deflation,” said Liu, who lives in Foshan in Guangdong province. He has a modest following of 1,100 people on the Instagram-like Xiaohongshu, where he warns regularly about the danger of deflation.
The speed of the deterioration in China’s price outlook has taken the market by surprise.
Inflation was weaker than forecast in three of the past four months, growing just 0.6% in August — an increase due largely to a 2.8% pickup in food prices. Core inflation last month rose just 0.3% to remain below 1% for an 18th month.
Underscoring the drag on inflation, producer prices have been falling since late 2022. Manufacturers’ raw material and selling prices both contracted for the second month in August, official data shows, while charges by services and construction companies shrank at the fastest pace since April 2020.
The dilemma is that even monetary expansion in China could be deflationary by being mainly directed at the supply side of the economy, Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, wrote in an article last month.
Meanwhile, the deflationary mindset is starting to take hold. Consumer confidence is hovering at a record low, and households report a growing willingness to save instead of spending or buying homes.
For Liu, the aluminum industry worker, as the pain deepens, the solution lies with policymakers in Beijing. “The government needs to at least take some concrete measures,” he said, “to lift consumption and improve people’s expectations.”
<<<
---
Bigworld, Your place in NC seems like a great area to ride out whatever comes. I figure the Debt Bomb will be the main concern, but hopefully that can be delayed considerably, especially if they get the % rates down and reign in the deficit spending. I've been figuring $50 trillion is the tipping point where a global flight out of the US dollar really picks up steam, but just a guess.
Imo, the main aspect of wanting to flee to a deserted island in the near term has more to do with how crazy things are getting in the US. Even a loon like Ozzy Osbourne left the US, saying it has become too nuts here. Switching off the TV news helps some, but as an internet maven, it's impossible to avoid the daily blasts of news insanity. Here's hoping for a change of leadership in the US in 2025, end the wars, etc.
---
>>> LeMaitre Vascular, Inc. (LMAT) develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide.
It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature.
The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries.
In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient's body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures.
It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.
<<<
https://finance.yahoo.com/quote/LMAT/profile/
---
>>> LeMaitre Vascular, Inc. (LMAT) develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide.
It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature.
The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries.
In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient's body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures.
It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.
<<<
https://finance.yahoo.com/quote/LMAT/profile/
---
>>> LeMaitre Vascular, Inc. (LMAT) develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide.
It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature.
The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries.
In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient's body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures.
It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.
<<<
https://finance.yahoo.com/quote/LMAT/profile/
---
>>> PC Connection (CNXN) Reports Second Quarter 2024 Results
Business Wire
Jul 31, 2024
https://finance.yahoo.com/news/connection-cnxn-reports-second-quarter-200500679.html
Record Quarter for Net Income and Earnings per Share
SECOND QUARTER SUMMARY:
Net sales: $736.5 million, increase of 0.4% y/y
Gross profit: $136.5 million, up 6.9% y/y
Gross margin: 18.5%, up 112 basis points y/y
Net income: $26.2 million, increase of 32.8% y/y
Diluted EPS: $0.99, compared to $0.75
MERRIMACK, N.H., July 31, 2024--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the second quarter June 30, 2024. The Company also announced that its Board of Directors declared a quarterly dividend of $0.10 per share of the Company’s common stock. Payment will be made on August 30, 2024, to shareholders of record on August 13, 2024.
"Connection achieved record net income and earnings per share of $0.99 cents for the second quarter of 2024. These results reflect the successful execution of our strategic priorities and our ability to adapt to the needs of our customers in this dynamic and rapidly evolving technology landscape," said Timothy McGrath, President and Chief Executive Officer of Connection.
Second Quarter of 2024 Results:
Net sales for the quarter ended June 30, 2024 increased by 0.4%, year over year. Gross profit increased 6.9% while gross margin expanded 112 basis points to 18.5%, compared to the prior year quarter. Net income for the quarter ended June 30, 2024 increased by 32.8% to $26.2 million, or $0.99 per diluted share, compared to net income of $19.7 million, or $0.75 per diluted share, for the prior year quarter. Adjusted Diluted Earnings per Share1 increased to $1.00 per share for the quarter ended June 30, 2024, compared to $0.80 per share for the quarter ended June 30, 2023.
Performance by Segment:
Net sales for the Business Solutions segment increased by 6.6% to $278.2 million in the second quarter of 2024, compared to $261.0 million in the prior year quarter. Gross profit increased by 8.1% to $66.3 million in the second quarter of 2024, compared to $61.4 million in the prior year quarter. Gross margin increased by 34 basis points to 23.8% for the second quarter of 2024.
Net sales for the Public Sector Solutions segment decreased by 14.0% to $159.5 million in the second quarter of 2024, compared to $185.4 million in the prior year quarter. Sales to state and local governments and educational institutions decreased by $17.6 million, while sales to the federal government decreased by $8.3 million, compared to the prior year quarter. Gross profit increased by 3.0% to $24.1 million in the second quarter of 2024, compared to $23.5 million in the prior year quarter. Gross margin increased by 250 basis points to 15.2% for the second quarter of 2024.
Net sales for the Enterprise Solutions segment increased by 4.1% to $298.8 million in the second quarter of 2024, compared to $287.1 million in the prior year quarter. Gross profit increased by 7.2% to $46.1 million in the second quarter of 2024, compared to $42.9 million in the prior year quarter. Gross margin increased by 45 basis points to 15.4% for the second quarter of 2024.
Sales by Product Mix:
Notebook/mobility and desktop sales increased by 7% year over year and accounted for 47% of net sales in the second quarter of 2024, compared to 44% of net sales in the second quarter of 2023.
Software sales increased by 7% year over year and accounted for 9% of net sales in the second quarter of 2024 and 2023.
Servers/storage sales increased by 19% year over year and accounted for 9% of net sales in the second quarter of 2024, compared to 7% of net sales in the second quarter of 2023.
Networking sales decreased by 33% year over year and accounted for 7% of net sales in the second quarter of 2024, compared to 11% of net sales in the second quarter of 2023.
Accessories sales decreased by 6% year over year and accounted for 11% of net sales in the second quarter of 2024 and 2023.
Selling, general and administrative ("SG&A") expenses increased in the second quarter of 2024 to $105.2 million from $101.0 million in the prior year quarter. SG&A as a percentage of net sales increased to 14.3%, compared to 13.8% in the prior year quarter. The increase in SG&A was primarily due to an increase in variable compensation due to higher levels of gross profit in the quarter.
Interest income in the second quarter of 2024 was $4.7 million, compared to $1.9 million in the second quarter of 2023.
Cash and cash equivalents and short-term investments were $385.8 million as of June 30, 2024, compared to $244.0 million as of June 30, 2023. During the second quarter of 2024, the Company repurchased 56,716 shares of stock at an aggregate purchase price of $3.6 million.
Six Months of 2024 Results:
Net sales for the six months ended June 30, 2024 decreased by 6.3%, compared to the six months ended June 30, 2023. Gross profit increased 1.8% while gross margin expanded 149 basis points to 18.6%, compared to the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 increased by 16.0% to $39.3 million, or $1.48 per diluted share, compared to net income of $33.9 million, or $1.28 per diluted share, for the six months ended June 30, 2023. Adjusted Diluted Earnings per Share1 increased to $1.49 per share for the six months ended June 30, 2024, compared to $1.36 per share for the six months ended June 30, 2023.
Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges ("Adjusted EBITDA")1 increased 4% to $125.4 million for the twelve months ended June 30, 2024, compared to $120.2 million for the twelve months ended June 30, 2023.
_________________
1 Adjusted EBITDA and Adjusted Diluted Earnings per Share are non-GAAP measures. See page 9 for definitions and reconciliations of these measures.
Conference Call and Webcast
Connection will host a conference call and live web cast today, July 31, 2024 at 4:30 p.m. EDT to discuss its second quarter financial results. For participants who would like to participate via telephone, please register here to receive the dial-in number along with a unique PIN number that is required to access the call. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection’s website at ir.connection.com. For those unable to participate in the live call, a replay of the webcast will be available at ir.connection.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.
Non-GAAP Financial Information
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company’s operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Definitions for each Non-GAAP measure and a reconciliation to their most directly comparable GAAP measures are available in the tables at the end of this release.
About Connection
PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.connection.com.
Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.
Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team’s engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.
Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.
<<<
---
>>> PC Connection (CNXN) Reports Second Quarter 2024 Results
Business Wire
Jul 31, 2024
https://finance.yahoo.com/news/connection-cnxn-reports-second-quarter-200500679.html
Record Quarter for Net Income and Earnings per Share
SECOND QUARTER SUMMARY:
Net sales: $736.5 million, increase of 0.4% y/y
Gross profit: $136.5 million, up 6.9% y/y
Gross margin: 18.5%, up 112 basis points y/y
Net income: $26.2 million, increase of 32.8% y/y
Diluted EPS: $0.99, compared to $0.75
MERRIMACK, N.H., July 31, 2024--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the second quarter June 30, 2024. The Company also announced that its Board of Directors declared a quarterly dividend of $0.10 per share of the Company’s common stock. Payment will be made on August 30, 2024, to shareholders of record on August 13, 2024.
"Connection achieved record net income and earnings per share of $0.99 cents for the second quarter of 2024. These results reflect the successful execution of our strategic priorities and our ability to adapt to the needs of our customers in this dynamic and rapidly evolving technology landscape," said Timothy McGrath, President and Chief Executive Officer of Connection.
Second Quarter of 2024 Results:
Net sales for the quarter ended June 30, 2024 increased by 0.4%, year over year. Gross profit increased 6.9% while gross margin expanded 112 basis points to 18.5%, compared to the prior year quarter. Net income for the quarter ended June 30, 2024 increased by 32.8% to $26.2 million, or $0.99 per diluted share, compared to net income of $19.7 million, or $0.75 per diluted share, for the prior year quarter. Adjusted Diluted Earnings per Share1 increased to $1.00 per share for the quarter ended June 30, 2024, compared to $0.80 per share for the quarter ended June 30, 2023.
Performance by Segment:
Net sales for the Business Solutions segment increased by 6.6% to $278.2 million in the second quarter of 2024, compared to $261.0 million in the prior year quarter. Gross profit increased by 8.1% to $66.3 million in the second quarter of 2024, compared to $61.4 million in the prior year quarter. Gross margin increased by 34 basis points to 23.8% for the second quarter of 2024.
Net sales for the Public Sector Solutions segment decreased by 14.0% to $159.5 million in the second quarter of 2024, compared to $185.4 million in the prior year quarter. Sales to state and local governments and educational institutions decreased by $17.6 million, while sales to the federal government decreased by $8.3 million, compared to the prior year quarter. Gross profit increased by 3.0% to $24.1 million in the second quarter of 2024, compared to $23.5 million in the prior year quarter. Gross margin increased by 250 basis points to 15.2% for the second quarter of 2024.
Net sales for the Enterprise Solutions segment increased by 4.1% to $298.8 million in the second quarter of 2024, compared to $287.1 million in the prior year quarter. Gross profit increased by 7.2% to $46.1 million in the second quarter of 2024, compared to $42.9 million in the prior year quarter. Gross margin increased by 45 basis points to 15.4% for the second quarter of 2024.
Sales by Product Mix:
Notebook/mobility and desktop sales increased by 7% year over year and accounted for 47% of net sales in the second quarter of 2024, compared to 44% of net sales in the second quarter of 2023.
Software sales increased by 7% year over year and accounted for 9% of net sales in the second quarter of 2024 and 2023.
Servers/storage sales increased by 19% year over year and accounted for 9% of net sales in the second quarter of 2024, compared to 7% of net sales in the second quarter of 2023.
Networking sales decreased by 33% year over year and accounted for 7% of net sales in the second quarter of 2024, compared to 11% of net sales in the second quarter of 2023.
Accessories sales decreased by 6% year over year and accounted for 11% of net sales in the second quarter of 2024 and 2023.
Selling, general and administrative ("SG&A") expenses increased in the second quarter of 2024 to $105.2 million from $101.0 million in the prior year quarter. SG&A as a percentage of net sales increased to 14.3%, compared to 13.8% in the prior year quarter. The increase in SG&A was primarily due to an increase in variable compensation due to higher levels of gross profit in the quarter.
Interest income in the second quarter of 2024 was $4.7 million, compared to $1.9 million in the second quarter of 2023.
Cash and cash equivalents and short-term investments were $385.8 million as of June 30, 2024, compared to $244.0 million as of June 30, 2023. During the second quarter of 2024, the Company repurchased 56,716 shares of stock at an aggregate purchase price of $3.6 million.
Six Months of 2024 Results:
Net sales for the six months ended June 30, 2024 decreased by 6.3%, compared to the six months ended June 30, 2023. Gross profit increased 1.8% while gross margin expanded 149 basis points to 18.6%, compared to the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 increased by 16.0% to $39.3 million, or $1.48 per diluted share, compared to net income of $33.9 million, or $1.28 per diluted share, for the six months ended June 30, 2023. Adjusted Diluted Earnings per Share1 increased to $1.49 per share for the six months ended June 30, 2024, compared to $1.36 per share for the six months ended June 30, 2023.
Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges ("Adjusted EBITDA")1 increased 4% to $125.4 million for the twelve months ended June 30, 2024, compared to $120.2 million for the twelve months ended June 30, 2023.
_________________
1 Adjusted EBITDA and Adjusted Diluted Earnings per Share are non-GAAP measures. See page 9 for definitions and reconciliations of these measures.
Conference Call and Webcast
Connection will host a conference call and live web cast today, July 31, 2024 at 4:30 p.m. EDT to discuss its second quarter financial results. For participants who would like to participate via telephone, please register here to receive the dial-in number along with a unique PIN number that is required to access the call. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection’s website at ir.connection.com. For those unable to participate in the live call, a replay of the webcast will be available at ir.connection.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.
Non-GAAP Financial Information
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company’s operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Definitions for each Non-GAAP measure and a reconciliation to their most directly comparable GAAP measures are available in the tables at the end of this release.
About Connection
PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.connection.com.
Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.
Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team’s engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.
Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.
<<<
---
>>> PC Connection (CNXN) Reports Second Quarter 2024 Results
Business Wire
Jul 31, 2024
https://finance.yahoo.com/news/connection-cnxn-reports-second-quarter-200500679.html
Record Quarter for Net Income and Earnings per Share
SECOND QUARTER SUMMARY:
Net sales: $736.5 million, increase of 0.4% y/y
Gross profit: $136.5 million, up 6.9% y/y
Gross margin: 18.5%, up 112 basis points y/y
Net income: $26.2 million, increase of 32.8% y/y
Diluted EPS: $0.99, compared to $0.75
MERRIMACK, N.H., July 31, 2024--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the second quarter June 30, 2024. The Company also announced that its Board of Directors declared a quarterly dividend of $0.10 per share of the Company’s common stock. Payment will be made on August 30, 2024, to shareholders of record on August 13, 2024.
"Connection achieved record net income and earnings per share of $0.99 cents for the second quarter of 2024. These results reflect the successful execution of our strategic priorities and our ability to adapt to the needs of our customers in this dynamic and rapidly evolving technology landscape," said Timothy McGrath, President and Chief Executive Officer of Connection.
Second Quarter of 2024 Results:
Net sales for the quarter ended June 30, 2024 increased by 0.4%, year over year. Gross profit increased 6.9% while gross margin expanded 112 basis points to 18.5%, compared to the prior year quarter. Net income for the quarter ended June 30, 2024 increased by 32.8% to $26.2 million, or $0.99 per diluted share, compared to net income of $19.7 million, or $0.75 per diluted share, for the prior year quarter. Adjusted Diluted Earnings per Share1 increased to $1.00 per share for the quarter ended June 30, 2024, compared to $0.80 per share for the quarter ended June 30, 2023.
Performance by Segment:
Net sales for the Business Solutions segment increased by 6.6% to $278.2 million in the second quarter of 2024, compared to $261.0 million in the prior year quarter. Gross profit increased by 8.1% to $66.3 million in the second quarter of 2024, compared to $61.4 million in the prior year quarter. Gross margin increased by 34 basis points to 23.8% for the second quarter of 2024.
Net sales for the Public Sector Solutions segment decreased by 14.0% to $159.5 million in the second quarter of 2024, compared to $185.4 million in the prior year quarter. Sales to state and local governments and educational institutions decreased by $17.6 million, while sales to the federal government decreased by $8.3 million, compared to the prior year quarter. Gross profit increased by 3.0% to $24.1 million in the second quarter of 2024, compared to $23.5 million in the prior year quarter. Gross margin increased by 250 basis points to 15.2% for the second quarter of 2024.
Net sales for the Enterprise Solutions segment increased by 4.1% to $298.8 million in the second quarter of 2024, compared to $287.1 million in the prior year quarter. Gross profit increased by 7.2% to $46.1 million in the second quarter of 2024, compared to $42.9 million in the prior year quarter. Gross margin increased by 45 basis points to 15.4% for the second quarter of 2024.
Sales by Product Mix:
Notebook/mobility and desktop sales increased by 7% year over year and accounted for 47% of net sales in the second quarter of 2024, compared to 44% of net sales in the second quarter of 2023.
Software sales increased by 7% year over year and accounted for 9% of net sales in the second quarter of 2024 and 2023.
Servers/storage sales increased by 19% year over year and accounted for 9% of net sales in the second quarter of 2024, compared to 7% of net sales in the second quarter of 2023.
Networking sales decreased by 33% year over year and accounted for 7% of net sales in the second quarter of 2024, compared to 11% of net sales in the second quarter of 2023.
Accessories sales decreased by 6% year over year and accounted for 11% of net sales in the second quarter of 2024 and 2023.
Selling, general and administrative ("SG&A") expenses increased in the second quarter of 2024 to $105.2 million from $101.0 million in the prior year quarter. SG&A as a percentage of net sales increased to 14.3%, compared to 13.8% in the prior year quarter. The increase in SG&A was primarily due to an increase in variable compensation due to higher levels of gross profit in the quarter.
Interest income in the second quarter of 2024 was $4.7 million, compared to $1.9 million in the second quarter of 2023.
Cash and cash equivalents and short-term investments were $385.8 million as of June 30, 2024, compared to $244.0 million as of June 30, 2023. During the second quarter of 2024, the Company repurchased 56,716 shares of stock at an aggregate purchase price of $3.6 million.
Six Months of 2024 Results:
Net sales for the six months ended June 30, 2024 decreased by 6.3%, compared to the six months ended June 30, 2023. Gross profit increased 1.8% while gross margin expanded 149 basis points to 18.6%, compared to the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 increased by 16.0% to $39.3 million, or $1.48 per diluted share, compared to net income of $33.9 million, or $1.28 per diluted share, for the six months ended June 30, 2023. Adjusted Diluted Earnings per Share1 increased to $1.49 per share for the six months ended June 30, 2024, compared to $1.36 per share for the six months ended June 30, 2023.
Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges ("Adjusted EBITDA")1 increased 4% to $125.4 million for the twelve months ended June 30, 2024, compared to $120.2 million for the twelve months ended June 30, 2023.
_________________
1 Adjusted EBITDA and Adjusted Diluted Earnings per Share are non-GAAP measures. See page 9 for definitions and reconciliations of these measures.
Conference Call and Webcast
Connection will host a conference call and live web cast today, July 31, 2024 at 4:30 p.m. EDT to discuss its second quarter financial results. For participants who would like to participate via telephone, please register here to receive the dial-in number along with a unique PIN number that is required to access the call. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection’s website at ir.connection.com. For those unable to participate in the live call, a replay of the webcast will be available at ir.connection.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.
Non-GAAP Financial Information
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company’s operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Definitions for each Non-GAAP measure and a reconciliation to their most directly comparable GAAP measures are available in the tables at the end of this release.
About Connection
PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.connection.com.
Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.
Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team’s engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.
Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.
<<<
---
>>> CBIZ, Inc. (CBZ) provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments.
The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services.
The Benefits and Insurance Services segment provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services.
The National Practices segment offers information technology managed networking and hardware, and health care consulting services.
The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
<<<
https://finance.yahoo.com/quote/CBZ/profile/
---
>>> CBIZ, Inc. (CBZ) provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments.
The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services.
The Benefits and Insurance Services segment provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services.
The National Practices segment offers information technology managed networking and hardware, and health care consulting services.
The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
<<<
https://finance.yahoo.com/quote/CBZ/profile/
---
>>> CBIZ, Inc. (CBZ) provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments.
The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services.
The Benefits and Insurance Services segment provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services.
The National Practices segment offers information technology managed networking and hardware, and health care consulting services.
The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
<<<
https://finance.yahoo.com/quote/CBZ/profile/
---
>>> Cavco Industries, Inc. (CVCO) designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services.
The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands.
It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops.
In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units.
Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers.
Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.
<<<
https://finance.yahoo.com/quote/CVCO/profile/
---
>>> Cavco Industries, Inc. (CVCO) designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services.
The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands.
It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops.
In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units.
Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers.
Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.
<<<
https://finance.yahoo.com/quote/CVCO/profile/
---
>>> Cavco Industries, Inc. (CVCO) designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services.
The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands.
It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops.
In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units.
Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers.
Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.
<<<
https://finance.yahoo.com/quote/CVCO/profile/
---
>>> Arcosa, Inc. (ACA) -- Share Price Upside: 16%
Number of Hedge Fund Investors In Q2 2024: 25
Average Analyst Share Price Target: $105.8
https://finance.yahoo.com/news/arcosa-inc-aca-one-oppenheimer-232721199.html
Arcosa, Inc. (NYSE:ACA) is a mid sized engineering and construction firm based in Dallas, Texas. It is a diversified construction materials and products company that sells items such as aggregates, tower structures, and steel components for vehicles.
Arcosa, Inc. (NYSE:ACA)'s business, which is geared solely towards construction products makes the firm sensitive to high interest rates as they depress construction activity and real estate performance. Consequently, the fact that its shares have risen 22% over the past twelve months is unsurprising. Equally unsurprising is the fact that Arcosa's stock soared by 4.6% the day Fed Chairman Jerome Powell confirmed that interest rate cuts would start soon. This suggests pent up momentum for the stock, and Arcosa, Inc. (NYSE:ACA) could benefit if construction activity picks up.
Additionally, since it is an American company, the firm could also see tailwinds from government spending through the Bipartisan Infrastructure Act. Oppenheimer believes that Arcosa, Inc. has "well-established positions in attractive markets with favorable long-term demand drivers, which should provide it with compelling organic and acquisition opportunities."
Arcosa's management touted the benefits of a recent acquisition during the Q2 2024 earnings call:
"It’s a very, very stable market. When you look at the financials over a long period of time, are very stable, with high margins, a very good market. This company has done a great job expanding over the last several years. And there are opportunities to consolidate not only in the main market of the New York, New Jersey area, but they also have other quarries around it. So there are opportunities. One thing that’s very interesting when you look at the competitors in the region, you have many of the big guys around it, which is something we like. We like to compete against some of the larger peers. But there are also some smaller bolt-on opportunities for the future. As I said before, our priority right now is deleveraging, and that’s going to be our focus.
And there are opportunities to grow organically, and implement some other actions to improve efficiency, et cetera. But also to learn from this company. This company has done a fantastic job and there are things we can bring to them, but there are also things we can learn from them. So very excited about it."
Overall ACA ranks 16th on our list of Oppenheimer's favorite stocks for the next 12 months.
<<<
---
>>> Arcosa, Inc. (ACA) -- Share Price Upside: 16%
Number of Hedge Fund Investors In Q2 2024: 25
Average Analyst Share Price Target: $105.8
https://finance.yahoo.com/news/arcosa-inc-aca-one-oppenheimer-232721199.html
Arcosa, Inc. (NYSE:ACA) is a mid sized engineering and construction firm based in Dallas, Texas. It is a diversified construction materials and products company that sells items such as aggregates, tower structures, and steel components for vehicles.
Arcosa, Inc. (NYSE:ACA)'s business, which is geared solely towards construction products makes the firm sensitive to high interest rates as they depress construction activity and real estate performance. Consequently, the fact that its shares have risen 22% over the past twelve months is unsurprising. Equally unsurprising is the fact that Arcosa's stock soared by 4.6% the day Fed Chairman Jerome Powell confirmed that interest rate cuts would start soon. This suggests pent up momentum for the stock, and Arcosa, Inc. (NYSE:ACA) could benefit if construction activity picks up.
Additionally, since it is an American company, the firm could also see tailwinds from government spending through the Bipartisan Infrastructure Act. Oppenheimer believes that Arcosa, Inc. has "well-established positions in attractive markets with favorable long-term demand drivers, which should provide it with compelling organic and acquisition opportunities."
Arcosa's management touted the benefits of a recent acquisition during the Q2 2024 earnings call:
"It’s a very, very stable market. When you look at the financials over a long period of time, are very stable, with high margins, a very good market. This company has done a great job expanding over the last several years. And there are opportunities to consolidate not only in the main market of the New York, New Jersey area, but they also have other quarries around it. So there are opportunities. One thing that’s very interesting when you look at the competitors in the region, you have many of the big guys around it, which is something we like. We like to compete against some of the larger peers. But there are also some smaller bolt-on opportunities for the future. As I said before, our priority right now is deleveraging, and that’s going to be our focus.
And there are opportunities to grow organically, and implement some other actions to improve efficiency, et cetera. But also to learn from this company. This company has done a fantastic job and there are things we can bring to them, but there are also things we can learn from them. So very excited about it."
Overall ACA ranks 16th on our list of Oppenheimer's favorite stocks for the next 12 months.
<<<
---
Bigworld, >> Alto Boquete <<
That does look like a great place -
>>> Climb Global Solutions Reports Second Quarter 2024 Results and Announces Acquisition of Douglas Stewart Software & Services, LLC
Climb Global Solutions, Inc.
Aug 6, 2024
https://finance.yahoo.com/news/climb-global-solutions-reports-second-200500904.html
Net Sales up 13% to $92.1 Million; Net Income up more than 2x to $3.4 Million or $0.75 per Share; Adjusted EBITDA up 48% to $6.9 Million
Acquisition Establishes Climb as a Leader in the North America Education Sector While Expanding its Product Offerings
Transaction Expected to be Accretive to Earnings per Share and Adjusted EBITDA
EATONTOWN, N.J., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the second quarter ended June 30, 2024. The Company is also announcing the acquisition of Douglas Stewart Software & Services, LLC (“DSS”), a leading specialist distributor of software to the education market in North America.
Second Quarter 2024 Summary vs. Same Year-Ago Quarter
Net sales increased 13% to $92.1 million.
Adjusted gross billings (a non-GAAP financial measure defined below) increased 31% to $359.8 million.
Net income increased more than 2x to $3.4 million or $0.75 per diluted share.
Adjusted net income (a non-GAAP financial measure defined below) increased 19% to $3.8 million or $0.83 per diluted share.
Adjusted EBITDA (a non-GAAP financial measure defined below) increased 48% to $6.9 million.
Management Commentary
“Our Q2 results were highlighted by another period of solid growth and improved profitability as we generated a double-digit increase in net sales and material increases in adjusted gross billings, net income and adjusted EBITDA,” said CEO Dale Foster. “This was driven by the continued execution of our core strategy – generating organic growth by deepening relationships with existing vendors, signing new cutting-edge technologies to our line card, and delivering on our acquisition objectives.
“Today, we are also announcing the acquisition of Wisconsin-based IT distributor DSS, adding scale and expertise to our N.A. operations along with 20 new vendor partners including Adobe, Go Guardian and Incident IQ. DSS has delivered consistent growth through a subscription-based software licensing model, built on an 85%+ retention rate for its strategic vendor partners’ offerings. DSS is a proven leader in the EdTech channel and provides services to more than 500 value-added resellers and 250 campus stores across N.A. in both the K-12 and higher education markets. We are pleased to welcome Chuck Hulan and his team to the Climb family and look forward to unlocking synergies and cross-selling opportunities while advancing shared cloud marketplace initiatives as we integrate DSS into our platform in the months ahead.
“As we enter the back half of the year, we have a solid foundation in place to continue driving strong organic growth while further improving operating leverage through the recent implementation of our new ERP. As we move into 2025, we anticipate the increased amortization expense associated with the ERP will be offset through planned operating synergies in our global platform. We will also continue to evaluate M&A opportunities that can enhance our service and solutions, in addition to our geographic footprint. These initiatives along with our robust balance sheet will enable us to deliver on both our organic and inorganic growth objectives in 2024 and beyond.”
Dividend
Subsequent to quarter end, on August 6, 2024, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on August 22, 2024, to shareholders of record on August 16, 2024.
Second Quarter 2024 Financial Results
Net sales in the second quarter of 2024 increased 13% to $92.1 million compared to $81.7 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions Holdings Limited (“DataSolutions”) in October 2023. In addition, adjusted gross billings in the second quarter of 2024 increased 31% to $359.8 million compared to $274.7 million in the year-ago period.
Gross profit in the second quarter of 2024 increased 36% to $18.6 million compared to $13.7 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DataSolutions.
Selling, general, and administrative (“SG&A”) expenses in the second quarter of 2024 were $13.0 million compared to $11.6 million in the year-ago period. DataSolutions represented the majority of the increase at $1.3 million. SG&A as a percentage of adjusted gross billings decreased to 3.6% for the second quarter of 2024 compared to 4.2% in the year-ago period.
Net income in the second quarter of 2024 increased more than 2x to $3.4 million or $0.75 per diluted share, compared to $1.4 million or $0.31 per diluted share for the same period in 2023. Adjusted net income increased 19% to $3.8 million or $0.83 per diluted share, compared to $3.2 million or $0.72 per diluted share for the year-ago period. The Company’s earnings per diluted share in the second quarter of 2024 were negatively impacted by $0.03 in FX compared to the prior year quarter.
Adjusted EBITDA in the second quarter of 2024 increased 48% to $6.9 million compared to $4.7 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 310 basis points to 37.3% compared to 34.2% for the same period in 2023.
On June 30, 2024, cash and cash equivalents were $48.4 million compared to $36.3 million on December 31, 2023, while working capital increased by $2.8 million during this period. The increase in cash was primarily attributed to DataSolutions cash balance and the timing of receivable collections and payables. Climb had $1.0 million of outstanding debt on June 30, 2024, with no borrowings outstanding under its $50 million revolving credit facility.
For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Acquisition of Douglas Stewart Software & Services, LLC
Climb closed on the acquisition of DSS on July 31, 2024, for an aggregate purchase price of $20.3 million payable at closing (subject to working capital and other adjustments), plus a potential post-closing earn-out. Climb funded the acquisition of DSS utilizing cash from the Company’s balance sheet.
DSS is a Wisconsin-based, specialist IT distributor focused on SaaS solutions for education customers serving resellers in the North America reseller market and was a separate division of the privately-held Douglas Stewart Company. For the trailing twelve months ended June 30, 2024, DSS reported adjusted EBITDA of approximately $5.3 million, which was up 10% over the same period in the prior year.
Conference Call
The Company will conduct a conference call tomorrow, August 7, 2024, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2024.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Wednesday, August 7, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 245-3047
International dial-in number: (203) 518-9765
Conference ID: CLIMB
Webcast: Climb’s Q2 2024 Conference Call
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.
About Climb Global Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.
Additional information can be found by visiting www.climbglobalsolutions.com.
About Douglas Stewart Software & Services, LLC
DSS is a trusted expert in educational technology, spanning back over 37 years. With decades of experience and a commitment to innovation, DSS continues to lead the way in delivering cutting-edge solutions to empower educators and enhance learning experiences. DSS stands at the forefront of education technology distribution in North America.
Operating as a dynamic business unit of the Douglas Stewart Company, where education has been a focus since 1950, DSS works with top-tier Edtech providers to deliver solutions to K-12, Higher Ed, & Non-Profits through 800+ reseller partners. DSS was established in 2021 to cater to the distinct requirements of software subscription licensing (Software as a Service/SaaS) in North America.
<<<
---
>>> Climb Global Solutions Reports Second Quarter 2024 Results and Announces Acquisition of Douglas Stewart Software & Services, LLC
Climb Global Solutions, Inc.
Aug 6, 2024
https://finance.yahoo.com/news/climb-global-solutions-reports-second-200500904.html
Net Sales up 13% to $92.1 Million; Net Income up more than 2x to $3.4 Million or $0.75 per Share; Adjusted EBITDA up 48% to $6.9 Million
Acquisition Establishes Climb as a Leader in the North America Education Sector While Expanding its Product Offerings
Transaction Expected to be Accretive to Earnings per Share and Adjusted EBITDA
EATONTOWN, N.J., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the second quarter ended June 30, 2024. The Company is also announcing the acquisition of Douglas Stewart Software & Services, LLC (“DSS”), a leading specialist distributor of software to the education market in North America.
Second Quarter 2024 Summary vs. Same Year-Ago Quarter
Net sales increased 13% to $92.1 million.
Adjusted gross billings (a non-GAAP financial measure defined below) increased 31% to $359.8 million.
Net income increased more than 2x to $3.4 million or $0.75 per diluted share.
Adjusted net income (a non-GAAP financial measure defined below) increased 19% to $3.8 million or $0.83 per diluted share.
Adjusted EBITDA (a non-GAAP financial measure defined below) increased 48% to $6.9 million.
Management Commentary
“Our Q2 results were highlighted by another period of solid growth and improved profitability as we generated a double-digit increase in net sales and material increases in adjusted gross billings, net income and adjusted EBITDA,” said CEO Dale Foster. “This was driven by the continued execution of our core strategy – generating organic growth by deepening relationships with existing vendors, signing new cutting-edge technologies to our line card, and delivering on our acquisition objectives.
“Today, we are also announcing the acquisition of Wisconsin-based IT distributor DSS, adding scale and expertise to our N.A. operations along with 20 new vendor partners including Adobe, Go Guardian and Incident IQ. DSS has delivered consistent growth through a subscription-based software licensing model, built on an 85%+ retention rate for its strategic vendor partners’ offerings. DSS is a proven leader in the EdTech channel and provides services to more than 500 value-added resellers and 250 campus stores across N.A. in both the K-12 and higher education markets. We are pleased to welcome Chuck Hulan and his team to the Climb family and look forward to unlocking synergies and cross-selling opportunities while advancing shared cloud marketplace initiatives as we integrate DSS into our platform in the months ahead.
“As we enter the back half of the year, we have a solid foundation in place to continue driving strong organic growth while further improving operating leverage through the recent implementation of our new ERP. As we move into 2025, we anticipate the increased amortization expense associated with the ERP will be offset through planned operating synergies in our global platform. We will also continue to evaluate M&A opportunities that can enhance our service and solutions, in addition to our geographic footprint. These initiatives along with our robust balance sheet will enable us to deliver on both our organic and inorganic growth objectives in 2024 and beyond.”
Dividend
Subsequent to quarter end, on August 6, 2024, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on August 22, 2024, to shareholders of record on August 16, 2024.
Second Quarter 2024 Financial Results
Net sales in the second quarter of 2024 increased 13% to $92.1 million compared to $81.7 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions Holdings Limited (“DataSolutions”) in October 2023. In addition, adjusted gross billings in the second quarter of 2024 increased 31% to $359.8 million compared to $274.7 million in the year-ago period.
Gross profit in the second quarter of 2024 increased 36% to $18.6 million compared to $13.7 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DataSolutions.
Selling, general, and administrative (“SG&A”) expenses in the second quarter of 2024 were $13.0 million compared to $11.6 million in the year-ago period. DataSolutions represented the majority of the increase at $1.3 million. SG&A as a percentage of adjusted gross billings decreased to 3.6% for the second quarter of 2024 compared to 4.2% in the year-ago period.
Net income in the second quarter of 2024 increased more than 2x to $3.4 million or $0.75 per diluted share, compared to $1.4 million or $0.31 per diluted share for the same period in 2023. Adjusted net income increased 19% to $3.8 million or $0.83 per diluted share, compared to $3.2 million or $0.72 per diluted share for the year-ago period. The Company’s earnings per diluted share in the second quarter of 2024 were negatively impacted by $0.03 in FX compared to the prior year quarter.
Adjusted EBITDA in the second quarter of 2024 increased 48% to $6.9 million compared to $4.7 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 310 basis points to 37.3% compared to 34.2% for the same period in 2023.
On June 30, 2024, cash and cash equivalents were $48.4 million compared to $36.3 million on December 31, 2023, while working capital increased by $2.8 million during this period. The increase in cash was primarily attributed to DataSolutions cash balance and the timing of receivable collections and payables. Climb had $1.0 million of outstanding debt on June 30, 2024, with no borrowings outstanding under its $50 million revolving credit facility.
For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Acquisition of Douglas Stewart Software & Services, LLC
Climb closed on the acquisition of DSS on July 31, 2024, for an aggregate purchase price of $20.3 million payable at closing (subject to working capital and other adjustments), plus a potential post-closing earn-out. Climb funded the acquisition of DSS utilizing cash from the Company’s balance sheet.
DSS is a Wisconsin-based, specialist IT distributor focused on SaaS solutions for education customers serving resellers in the North America reseller market and was a separate division of the privately-held Douglas Stewart Company. For the trailing twelve months ended June 30, 2024, DSS reported adjusted EBITDA of approximately $5.3 million, which was up 10% over the same period in the prior year.
Conference Call
The Company will conduct a conference call tomorrow, August 7, 2024, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2024.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Wednesday, August 7, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 245-3047
International dial-in number: (203) 518-9765
Conference ID: CLIMB
Webcast: Climb’s Q2 2024 Conference Call
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.
About Climb Global Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.
Additional information can be found by visiting www.climbglobalsolutions.com.
About Douglas Stewart Software & Services, LLC
DSS is a trusted expert in educational technology, spanning back over 37 years. With decades of experience and a commitment to innovation, DSS continues to lead the way in delivering cutting-edge solutions to empower educators and enhance learning experiences. DSS stands at the forefront of education technology distribution in North America.
Operating as a dynamic business unit of the Douglas Stewart Company, where education has been a focus since 1950, DSS works with top-tier Edtech providers to deliver solutions to K-12, Higher Ed, & Non-Profits through 800+ reseller partners. DSS was established in 2021 to cater to the distinct requirements of software subscription licensing (Software as a Service/SaaS) in North America.
<<<
---
>>> Climb Global Solutions Reports Second Quarter 2024 Results and Announces Acquisition of Douglas Stewart Software & Services, LLC
Climb Global Solutions, Inc.
Aug 6, 2024
https://finance.yahoo.com/news/climb-global-solutions-reports-second-200500904.html
Net Sales up 13% to $92.1 Million; Net Income up more than 2x to $3.4 Million or $0.75 per Share; Adjusted EBITDA up 48% to $6.9 Million
Acquisition Establishes Climb as a Leader in the North America Education Sector While Expanding its Product Offerings
Transaction Expected to be Accretive to Earnings per Share and Adjusted EBITDA
EATONTOWN, N.J., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb”, the “Company”, “we”, or “our”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the second quarter ended June 30, 2024. The Company is also announcing the acquisition of Douglas Stewart Software & Services, LLC (“DSS”), a leading specialist distributor of software to the education market in North America.
Second Quarter 2024 Summary vs. Same Year-Ago Quarter
Net sales increased 13% to $92.1 million.
Adjusted gross billings (a non-GAAP financial measure defined below) increased 31% to $359.8 million.
Net income increased more than 2x to $3.4 million or $0.75 per diluted share.
Adjusted net income (a non-GAAP financial measure defined below) increased 19% to $3.8 million or $0.83 per diluted share.
Adjusted EBITDA (a non-GAAP financial measure defined below) increased 48% to $6.9 million.
Management Commentary
“Our Q2 results were highlighted by another period of solid growth and improved profitability as we generated a double-digit increase in net sales and material increases in adjusted gross billings, net income and adjusted EBITDA,” said CEO Dale Foster. “This was driven by the continued execution of our core strategy – generating organic growth by deepening relationships with existing vendors, signing new cutting-edge technologies to our line card, and delivering on our acquisition objectives.
“Today, we are also announcing the acquisition of Wisconsin-based IT distributor DSS, adding scale and expertise to our N.A. operations along with 20 new vendor partners including Adobe, Go Guardian and Incident IQ. DSS has delivered consistent growth through a subscription-based software licensing model, built on an 85%+ retention rate for its strategic vendor partners’ offerings. DSS is a proven leader in the EdTech channel and provides services to more than 500 value-added resellers and 250 campus stores across N.A. in both the K-12 and higher education markets. We are pleased to welcome Chuck Hulan and his team to the Climb family and look forward to unlocking synergies and cross-selling opportunities while advancing shared cloud marketplace initiatives as we integrate DSS into our platform in the months ahead.
“As we enter the back half of the year, we have a solid foundation in place to continue driving strong organic growth while further improving operating leverage through the recent implementation of our new ERP. As we move into 2025, we anticipate the increased amortization expense associated with the ERP will be offset through planned operating synergies in our global platform. We will also continue to evaluate M&A opportunities that can enhance our service and solutions, in addition to our geographic footprint. These initiatives along with our robust balance sheet will enable us to deliver on both our organic and inorganic growth objectives in 2024 and beyond.”
Dividend
Subsequent to quarter end, on August 6, 2024, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on August 22, 2024, to shareholders of record on August 16, 2024.
Second Quarter 2024 Financial Results
Net sales in the second quarter of 2024 increased 13% to $92.1 million compared to $81.7 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions Holdings Limited (“DataSolutions”) in October 2023. In addition, adjusted gross billings in the second quarter of 2024 increased 31% to $359.8 million compared to $274.7 million in the year-ago period.
Gross profit in the second quarter of 2024 increased 36% to $18.6 million compared to $13.7 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DataSolutions.
Selling, general, and administrative (“SG&A”) expenses in the second quarter of 2024 were $13.0 million compared to $11.6 million in the year-ago period. DataSolutions represented the majority of the increase at $1.3 million. SG&A as a percentage of adjusted gross billings decreased to 3.6% for the second quarter of 2024 compared to 4.2% in the year-ago period.
Net income in the second quarter of 2024 increased more than 2x to $3.4 million or $0.75 per diluted share, compared to $1.4 million or $0.31 per diluted share for the same period in 2023. Adjusted net income increased 19% to $3.8 million or $0.83 per diluted share, compared to $3.2 million or $0.72 per diluted share for the year-ago period. The Company’s earnings per diluted share in the second quarter of 2024 were negatively impacted by $0.03 in FX compared to the prior year quarter.
Adjusted EBITDA in the second quarter of 2024 increased 48% to $6.9 million compared to $4.7 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DataSolutions. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 310 basis points to 37.3% compared to 34.2% for the same period in 2023.
On June 30, 2024, cash and cash equivalents were $48.4 million compared to $36.3 million on December 31, 2023, while working capital increased by $2.8 million during this period. The increase in cash was primarily attributed to DataSolutions cash balance and the timing of receivable collections and payables. Climb had $1.0 million of outstanding debt on June 30, 2024, with no borrowings outstanding under its $50 million revolving credit facility.
For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Acquisition of Douglas Stewart Software & Services, LLC
Climb closed on the acquisition of DSS on July 31, 2024, for an aggregate purchase price of $20.3 million payable at closing (subject to working capital and other adjustments), plus a potential post-closing earn-out. Climb funded the acquisition of DSS utilizing cash from the Company’s balance sheet.
DSS is a Wisconsin-based, specialist IT distributor focused on SaaS solutions for education customers serving resellers in the North America reseller market and was a separate division of the privately-held Douglas Stewart Company. For the trailing twelve months ended June 30, 2024, DSS reported adjusted EBITDA of approximately $5.3 million, which was up 10% over the same period in the prior year.
Conference Call
The Company will conduct a conference call tomorrow, August 7, 2024, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2024.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Wednesday, August 7, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 245-3047
International dial-in number: (203) 518-9765
Conference ID: CLIMB
Webcast: Climb’s Q2 2024 Conference Call
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.
About Climb Global Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.
Additional information can be found by visiting www.climbglobalsolutions.com.
About Douglas Stewart Software & Services, LLC
DSS is a trusted expert in educational technology, spanning back over 37 years. With decades of experience and a commitment to innovation, DSS continues to lead the way in delivering cutting-edge solutions to empower educators and enhance learning experiences. DSS stands at the forefront of education technology distribution in North America.
Operating as a dynamic business unit of the Douglas Stewart Company, where education has been a focus since 1950, DSS works with top-tier Edtech providers to deliver solutions to K-12, Higher Ed, & Non-Profits through 800+ reseller partners. DSS was established in 2021 to cater to the distinct requirements of software subscription licensing (Software as a Service/SaaS) in North America.
<<<
---
>>> M-tron Industries, Inc. Reports Strong Second Quarter 2024 Results with Further Margin Expansion
Business Wire
Aug 14, 2024
https://finance.yahoo.com/news/m-tron-industries-inc-reports-130100152.html
ORLANDO, Fla., August 14, 2024--(BUSINESS WIRE)--M-tron Industries, Inc. (NYSE American: MPTI) (the "Company" or "MPTI"), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the three and six months ended June 30, 2024 with net income increasing 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023.
MPTI's Chief Executive Officer, Michael J. Ferrantino, said, "Our strategy is working; our business has been trending up since the Company’s listing in 2022, and are pleased to report results that continue to be very positive. We expect revenues, new orders and earnings to remain strong and trend higher. In addition, our order backlog trend since listing is positive and anticipated to continue to grow."
The Company will hold an Investor call on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions (see details below). An archive of the call will be available on MPTI's website at https://ir.mtronpti.com/events-and-presentations.
Strong Results from Operations Continue Since 2022 Listing
Strategic investments in the defense sector, several new products moving into volume production, and operating efficiencies have resulted in the Company achieving significant improvements since its IPO in October 2022. Importantly, the company made a significant investment in its employees with a broad option incentive grant earlier this year aligning the strength of its platform with its team.
Since MPTI's October 2022 IPO, the business has grown significantly as highlighted below:
Revenues increased 67.2% to $11,808,000 in Q2 2024 compared to $7,064,000 in Q2 2022
Net income increased 258.8% to $1,744,000 in Q2 2024 compared to $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024 compared to 37.5% in Q2 2022
Adjusted EBITDA increased 200.0% to $2,523,000 in Q2 2024 compared to $841,000 in Q2 2022
The opportunities with new engineering and designs continues to drive future growth, while manufacturing throughput improvement is helping increase margin expansion. Further, we are pleased to have initiated a stock option program earlier this year allowing the professionals at MPTI an opportunity to share in the business’s growth.
Mr. Ferrantino added, "As we report strong results, our team's pursuit of excellence accelerates as reflected in the value creation since IPO. This continued growth and success are a testament to our dedicated professional staff and their unwavering commitment to delivering exceptional value to our customers. We remain steadfast in our mission to innovate, adapt, and lead in our industry, driving sustainable growth and creating long-term value for all stakeholders."
"MPTI is a uniquely positioned American-made Defense product platform and presents an improved outlook for the business moving forward," continued Mr. Ferrantino.
Second Quarter 2024
Net income was $1,744,000, or $0.63 per diluted share, for the three months ended June 30, 2024 compared with $1,277,000, or $0.47 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to continued strong defense program product and solution shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 46.6% for the three months ended June 30, 2024 compared with 41.6% for the three months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $2,523,000, or $0.91 per diluted share, for the three months ended June 30, 2024 compared with $1,931,000, or $0.71 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to increased gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Results in Second Quarter 2024 and Since Second Quarter 2022
Revenues increased 16.4% to $11,808,000 in Q2 2024 compared to $10,140,000 in Q2 2023, driven by strong defense program shipments, and increased 67.2% from $7,064,000 in Q2 2022 as the mix shifts developed
Net income increased 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023 and increased 258.8% from $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024, an increase of 12.0% from Q2 2023, and an increase of 24.3% from Q2 2022, reflecting improved production efficiencies and product mix
Adjusted EBITDA increased 30.7% to $2,523,000 in Q2 2024 compared to $1,931,000 in Q2 2023 and increased 200.0% from $841,000 in Q2 2022
Improved 2024 Outlook
With the continued momentum in defense-related sales, and the acceleration in production and shipments during the first half of 2024, MPTI management has raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million from a previous range of $43.0 million to $45.0 million. MPTI has good visibility for the remaining two quarters of 2024 and expects EBITDA to continue to be in the 19% to 21% range.
The foregoing statements represent the Company's current estimates of MPTI's 2024 consolidated revenues as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Concerning Forward Looking Statements included in this release. Management does not assume any obligation to these estimates.
Fiscal Year to Date 2024
Net income was $3,230,000, or $1.16 per diluted share, for the six months ended June 30, 2024 compared with $1,830,000, or $0.68 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to higher sales related to strong defense program product shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses related to increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 44.7% for the six months ended June 30, 2024 compared with 38.0% for the six months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $4,785,000, or $1.72 per diluted share, for the six months ended June 30, 2024 compared with $2,959,000, or $1.09 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to increased gross margins; a continued containment of operating expenses other than strategic investments in research and development, resulting higher income before income taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Backlog
Backlog was $45,322,000 as of June 30, 2024 compared to $47,831,000 as of December 31, 2023 and $51,591,000 as of June 30, 2023. The decrease in Backlog from December 31, 2023 reflects the increase in revenues along with the variability of our order intake due to the size and timing of large program-related orders.
Strategic Direction Continues
"We delivered a solid performance in the quarter, with significant improvements in our financial results," said Bel Lazar, Chairman. "Our teams continue to execute well, driving both top-line growth and margin expansion across our businesses. Our commitment to achieving our Investor Day targets remains strong, with clear progress in our new products, pricing and efficiency initiatives. With this momentum we are confident in our continued success and growth."
Mr. Lazar continued regarding the Company’s strategy, "Our organic strategy continues to be providing complex, integrated assemblies. This will begin to surface in revenue growth. The dollar value of some of these projects can be substantial.
"As for our external strategy, we have increased our acquisition bandwidth to include companies that are inside and outside of our current space. We will look outside of our sub sector for undervalued companies much like ours where we can rapidly drive top and bottom-line growth. Our motivation continues to be increasing shareholder value as quickly as we can," added Mr. Lazar.
We see the ongoing development along several new and exciting growth verticals for the period ahead such as:
Space and Satellite: MPTI has over 125 design wins across satellite platforms and manned spacecraft. With expertise supporting LEO, MEO and GEO applications, the Company has a well-established team and a proven track record to meet demanding space requirements. With the evolving need for high-power space-level transmitters, high-power handling space-level RF components and sub-assemblies are instrumental for mission success. The performance of these devices used in orbiting satellites are significantly different compared to how they perform at sea level due to phenomena like multipaction. Some space-level applications require both continuous operation performance in outer space as well as performance during the assent to space while undergoing a pressure change.
Radar: Our latest line of timing solutions designed to meet the stringent requirements of modern radar applications is expect to further growth. For example, our e-Vibe™ series of Electronically Compensated OCXOs are designed to maintain exceptional phase-noise under dynamic conditions, meeting the rigorous demands of radar systems on the move or experiencing shock or vibration. Our radar integrated timing solutions: custom timing solutions integrating precision timing sources with additional components with maximum reliability and performance. Our systems offer excellent Phase-noise: output frequencies with extremely low phase-noise, guaranteeing reliable operation over extended periods, temperatures, and environments. Also, our systems offer Ruggedized Design and Flexible Configurations for durability and longevity, with both standard and custom output frequencies.
Electronic Warfare: As demand increased for frequencies above 2 GHz, we developed the ability to design and manufacture planar filters utilizing interdigital, combline, hairpin, edge coupled and end coupled topologies. MPTI introduced our new Planar Filter Product Line to complement our over 59 years MPTI of designing and manufacturing various topology filters for our Industrial, Commercial, Space, Aerospace and Defense customers. With Extremely Small Size and Low Height and Stable Over a Wide Temperature Range, MPTI’s planar filters support the demands of rugged, high-performance applications needs growing with the development of Electronic Warfare.
Investor Call
Management, including MPTI's CEO, Michael Ferrantino, will host a conference call with the investment community on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions.
The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Thursday August 15, 2024, and can be accessed using the dial-in details below:
Toll-Free Dial-in Number:
(800) 715-9871
Toll Dial-in Number:
+1 (646) 307-1963
Conference ID:
8891215
An archive of the call will be available after the call on Events and Presentations page on the Investor Relations section of MPTI’s website at https://ir.mtronpti.com/events-and-presentations, along with MPTI’s earnings release.
<<<
---
>>> M-tron Industries, Inc. Reports Strong Second Quarter 2024 Results with Further Margin Expansion
Business Wire
Aug 14, 2024
https://finance.yahoo.com/news/m-tron-industries-inc-reports-130100152.html
ORLANDO, Fla., August 14, 2024--(BUSINESS WIRE)--M-tron Industries, Inc. (NYSE American: MPTI) (the "Company" or "MPTI"), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the three and six months ended June 30, 2024 with net income increasing 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023.
MPTI's Chief Executive Officer, Michael J. Ferrantino, said, "Our strategy is working; our business has been trending up since the Company’s listing in 2022, and are pleased to report results that continue to be very positive. We expect revenues, new orders and earnings to remain strong and trend higher. In addition, our order backlog trend since listing is positive and anticipated to continue to grow."
The Company will hold an Investor call on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions (see details below). An archive of the call will be available on MPTI's website at https://ir.mtronpti.com/events-and-presentations.
Strong Results from Operations Continue Since 2022 Listing
Strategic investments in the defense sector, several new products moving into volume production, and operating efficiencies have resulted in the Company achieving significant improvements since its IPO in October 2022. Importantly, the company made a significant investment in its employees with a broad option incentive grant earlier this year aligning the strength of its platform with its team.
Since MPTI's October 2022 IPO, the business has grown significantly as highlighted below:
Revenues increased 67.2% to $11,808,000 in Q2 2024 compared to $7,064,000 in Q2 2022
Net income increased 258.8% to $1,744,000 in Q2 2024 compared to $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024 compared to 37.5% in Q2 2022
Adjusted EBITDA increased 200.0% to $2,523,000 in Q2 2024 compared to $841,000 in Q2 2022
The opportunities with new engineering and designs continues to drive future growth, while manufacturing throughput improvement is helping increase margin expansion. Further, we are pleased to have initiated a stock option program earlier this year allowing the professionals at MPTI an opportunity to share in the business’s growth.
Mr. Ferrantino added, "As we report strong results, our team's pursuit of excellence accelerates as reflected in the value creation since IPO. This continued growth and success are a testament to our dedicated professional staff and their unwavering commitment to delivering exceptional value to our customers. We remain steadfast in our mission to innovate, adapt, and lead in our industry, driving sustainable growth and creating long-term value for all stakeholders."
"MPTI is a uniquely positioned American-made Defense product platform and presents an improved outlook for the business moving forward," continued Mr. Ferrantino.
Second Quarter 2024
Net income was $1,744,000, or $0.63 per diluted share, for the three months ended June 30, 2024 compared with $1,277,000, or $0.47 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to continued strong defense program product and solution shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 46.6% for the three months ended June 30, 2024 compared with 41.6% for the three months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $2,523,000, or $0.91 per diluted share, for the three months ended June 30, 2024 compared with $1,931,000, or $0.71 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to increased gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Results in Second Quarter 2024 and Since Second Quarter 2022
Revenues increased 16.4% to $11,808,000 in Q2 2024 compared to $10,140,000 in Q2 2023, driven by strong defense program shipments, and increased 67.2% from $7,064,000 in Q2 2022 as the mix shifts developed
Net income increased 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023 and increased 258.8% from $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024, an increase of 12.0% from Q2 2023, and an increase of 24.3% from Q2 2022, reflecting improved production efficiencies and product mix
Adjusted EBITDA increased 30.7% to $2,523,000 in Q2 2024 compared to $1,931,000 in Q2 2023 and increased 200.0% from $841,000 in Q2 2022
Improved 2024 Outlook
With the continued momentum in defense-related sales, and the acceleration in production and shipments during the first half of 2024, MPTI management has raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million from a previous range of $43.0 million to $45.0 million. MPTI has good visibility for the remaining two quarters of 2024 and expects EBITDA to continue to be in the 19% to 21% range.
The foregoing statements represent the Company's current estimates of MPTI's 2024 consolidated revenues as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Concerning Forward Looking Statements included in this release. Management does not assume any obligation to these estimates.
Fiscal Year to Date 2024
Net income was $3,230,000, or $1.16 per diluted share, for the six months ended June 30, 2024 compared with $1,830,000, or $0.68 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to higher sales related to strong defense program product shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses related to increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 44.7% for the six months ended June 30, 2024 compared with 38.0% for the six months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $4,785,000, or $1.72 per diluted share, for the six months ended June 30, 2024 compared with $2,959,000, or $1.09 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to increased gross margins; a continued containment of operating expenses other than strategic investments in research and development, resulting higher income before income taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Backlog
Backlog was $45,322,000 as of June 30, 2024 compared to $47,831,000 as of December 31, 2023 and $51,591,000 as of June 30, 2023. The decrease in Backlog from December 31, 2023 reflects the increase in revenues along with the variability of our order intake due to the size and timing of large program-related orders.
Strategic Direction Continues
"We delivered a solid performance in the quarter, with significant improvements in our financial results," said Bel Lazar, Chairman. "Our teams continue to execute well, driving both top-line growth and margin expansion across our businesses. Our commitment to achieving our Investor Day targets remains strong, with clear progress in our new products, pricing and efficiency initiatives. With this momentum we are confident in our continued success and growth."
Mr. Lazar continued regarding the Company’s strategy, "Our organic strategy continues to be providing complex, integrated assemblies. This will begin to surface in revenue growth. The dollar value of some of these projects can be substantial.
"As for our external strategy, we have increased our acquisition bandwidth to include companies that are inside and outside of our current space. We will look outside of our sub sector for undervalued companies much like ours where we can rapidly drive top and bottom-line growth. Our motivation continues to be increasing shareholder value as quickly as we can," added Mr. Lazar.
We see the ongoing development along several new and exciting growth verticals for the period ahead such as:
Space and Satellite: MPTI has over 125 design wins across satellite platforms and manned spacecraft. With expertise supporting LEO, MEO and GEO applications, the Company has a well-established team and a proven track record to meet demanding space requirements. With the evolving need for high-power space-level transmitters, high-power handling space-level RF components and sub-assemblies are instrumental for mission success. The performance of these devices used in orbiting satellites are significantly different compared to how they perform at sea level due to phenomena like multipaction. Some space-level applications require both continuous operation performance in outer space as well as performance during the assent to space while undergoing a pressure change.
Radar: Our latest line of timing solutions designed to meet the stringent requirements of modern radar applications is expect to further growth. For example, our e-Vibe™ series of Electronically Compensated OCXOs are designed to maintain exceptional phase-noise under dynamic conditions, meeting the rigorous demands of radar systems on the move or experiencing shock or vibration. Our radar integrated timing solutions: custom timing solutions integrating precision timing sources with additional components with maximum reliability and performance. Our systems offer excellent Phase-noise: output frequencies with extremely low phase-noise, guaranteeing reliable operation over extended periods, temperatures, and environments. Also, our systems offer Ruggedized Design and Flexible Configurations for durability and longevity, with both standard and custom output frequencies.
Electronic Warfare: As demand increased for frequencies above 2 GHz, we developed the ability to design and manufacture planar filters utilizing interdigital, combline, hairpin, edge coupled and end coupled topologies. MPTI introduced our new Planar Filter Product Line to complement our over 59 years MPTI of designing and manufacturing various topology filters for our Industrial, Commercial, Space, Aerospace and Defense customers. With Extremely Small Size and Low Height and Stable Over a Wide Temperature Range, MPTI’s planar filters support the demands of rugged, high-performance applications needs growing with the development of Electronic Warfare.
Investor Call
Management, including MPTI's CEO, Michael Ferrantino, will host a conference call with the investment community on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions.
The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Thursday August 15, 2024, and can be accessed using the dial-in details below:
Toll-Free Dial-in Number:
(800) 715-9871
Toll Dial-in Number:
+1 (646) 307-1963
Conference ID:
8891215
An archive of the call will be available after the call on Events and Presentations page on the Investor Relations section of MPTI’s website at https://ir.mtronpti.com/events-and-presentations, along with MPTI’s earnings release.
<<<
---
>>> M-tron Industries, Inc. Reports Strong Second Quarter 2024 Results with Further Margin Expansion
Business Wire
Aug 14, 2024
https://finance.yahoo.com/news/m-tron-industries-inc-reports-130100152.html
ORLANDO, Fla., August 14, 2024--(BUSINESS WIRE)--M-tron Industries, Inc. (NYSE American: MPTI) (the "Company" or "MPTI"), a designer and manufacturer of highly-engineered electronic components used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the three and six months ended June 30, 2024 with net income increasing 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023.
MPTI's Chief Executive Officer, Michael J. Ferrantino, said, "Our strategy is working; our business has been trending up since the Company’s listing in 2022, and are pleased to report results that continue to be very positive. We expect revenues, new orders and earnings to remain strong and trend higher. In addition, our order backlog trend since listing is positive and anticipated to continue to grow."
The Company will hold an Investor call on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions (see details below). An archive of the call will be available on MPTI's website at https://ir.mtronpti.com/events-and-presentations.
Strong Results from Operations Continue Since 2022 Listing
Strategic investments in the defense sector, several new products moving into volume production, and operating efficiencies have resulted in the Company achieving significant improvements since its IPO in October 2022. Importantly, the company made a significant investment in its employees with a broad option incentive grant earlier this year aligning the strength of its platform with its team.
Since MPTI's October 2022 IPO, the business has grown significantly as highlighted below:
Revenues increased 67.2% to $11,808,000 in Q2 2024 compared to $7,064,000 in Q2 2022
Net income increased 258.8% to $1,744,000 in Q2 2024 compared to $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024 compared to 37.5% in Q2 2022
Adjusted EBITDA increased 200.0% to $2,523,000 in Q2 2024 compared to $841,000 in Q2 2022
The opportunities with new engineering and designs continues to drive future growth, while manufacturing throughput improvement is helping increase margin expansion. Further, we are pleased to have initiated a stock option program earlier this year allowing the professionals at MPTI an opportunity to share in the business’s growth.
Mr. Ferrantino added, "As we report strong results, our team's pursuit of excellence accelerates as reflected in the value creation since IPO. This continued growth and success are a testament to our dedicated professional staff and their unwavering commitment to delivering exceptional value to our customers. We remain steadfast in our mission to innovate, adapt, and lead in our industry, driving sustainable growth and creating long-term value for all stakeholders."
"MPTI is a uniquely positioned American-made Defense product platform and presents an improved outlook for the business moving forward," continued Mr. Ferrantino.
Second Quarter 2024
Net income was $1,744,000, or $0.63 per diluted share, for the three months ended June 30, 2024 compared with $1,277,000, or $0.47 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to continued strong defense program product and solution shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 46.6% for the three months ended June 30, 2024 compared with 41.6% for the three months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $2,523,000, or $0.91 per diluted share, for the three months ended June 30, 2024 compared with $1,931,000, or $0.71 per diluted share, for the three months ended June 30, 2023. The increase was primarily due to increased gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Results in Second Quarter 2024 and Since Second Quarter 2022
Revenues increased 16.4% to $11,808,000 in Q2 2024 compared to $10,140,000 in Q2 2023, driven by strong defense program shipments, and increased 67.2% from $7,064,000 in Q2 2022 as the mix shifts developed
Net income increased 36.6% to $1,744,000, or $0.63 per diluted share, in Q2 2024 compared to $1,277,000, or $0.47 per diluted share, in Q2 2023 and increased 258.8% from $486,000 in Q2 2022
Gross margin improved to 46.6% in Q2 2024, an increase of 12.0% from Q2 2023, and an increase of 24.3% from Q2 2022, reflecting improved production efficiencies and product mix
Adjusted EBITDA increased 30.7% to $2,523,000 in Q2 2024 compared to $1,931,000 in Q2 2023 and increased 200.0% from $841,000 in Q2 2022
Improved 2024 Outlook
With the continued momentum in defense-related sales, and the acceleration in production and shipments during the first half of 2024, MPTI management has raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million from a previous range of $43.0 million to $45.0 million. MPTI has good visibility for the remaining two quarters of 2024 and expects EBITDA to continue to be in the 19% to 21% range.
The foregoing statements represent the Company's current estimates of MPTI's 2024 consolidated revenues as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Concerning Forward Looking Statements included in this release. Management does not assume any obligation to these estimates.
Fiscal Year to Date 2024
Net income was $3,230,000, or $1.16 per diluted share, for the six months ended June 30, 2024 compared with $1,830,000, or $0.68 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to higher sales related to strong defense program product shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses related to increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.
Gross margin was 44.7% for the six months ended June 30, 2024 compared with 38.0% for the six months ended June 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.
Adjusted EBITDA was $4,785,000, or $1.72 per diluted share, for the six months ended June 30, 2024 compared with $2,959,000, or $1.09 per diluted share, for the six months ended June 30, 2023. The increase was primarily due to increased gross margins; a continued containment of operating expenses other than strategic investments in research and development, resulting higher income before income taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.
Backlog
Backlog was $45,322,000 as of June 30, 2024 compared to $47,831,000 as of December 31, 2023 and $51,591,000 as of June 30, 2023. The decrease in Backlog from December 31, 2023 reflects the increase in revenues along with the variability of our order intake due to the size and timing of large program-related orders.
Strategic Direction Continues
"We delivered a solid performance in the quarter, with significant improvements in our financial results," said Bel Lazar, Chairman. "Our teams continue to execute well, driving both top-line growth and margin expansion across our businesses. Our commitment to achieving our Investor Day targets remains strong, with clear progress in our new products, pricing and efficiency initiatives. With this momentum we are confident in our continued success and growth."
Mr. Lazar continued regarding the Company’s strategy, "Our organic strategy continues to be providing complex, integrated assemblies. This will begin to surface in revenue growth. The dollar value of some of these projects can be substantial.
"As for our external strategy, we have increased our acquisition bandwidth to include companies that are inside and outside of our current space. We will look outside of our sub sector for undervalued companies much like ours where we can rapidly drive top and bottom-line growth. Our motivation continues to be increasing shareholder value as quickly as we can," added Mr. Lazar.
We see the ongoing development along several new and exciting growth verticals for the period ahead such as:
Space and Satellite: MPTI has over 125 design wins across satellite platforms and manned spacecraft. With expertise supporting LEO, MEO and GEO applications, the Company has a well-established team and a proven track record to meet demanding space requirements. With the evolving need for high-power space-level transmitters, high-power handling space-level RF components and sub-assemblies are instrumental for mission success. The performance of these devices used in orbiting satellites are significantly different compared to how they perform at sea level due to phenomena like multipaction. Some space-level applications require both continuous operation performance in outer space as well as performance during the assent to space while undergoing a pressure change.
Radar: Our latest line of timing solutions designed to meet the stringent requirements of modern radar applications is expect to further growth. For example, our e-Vibe™ series of Electronically Compensated OCXOs are designed to maintain exceptional phase-noise under dynamic conditions, meeting the rigorous demands of radar systems on the move or experiencing shock or vibration. Our radar integrated timing solutions: custom timing solutions integrating precision timing sources with additional components with maximum reliability and performance. Our systems offer excellent Phase-noise: output frequencies with extremely low phase-noise, guaranteeing reliable operation over extended periods, temperatures, and environments. Also, our systems offer Ruggedized Design and Flexible Configurations for durability and longevity, with both standard and custom output frequencies.
Electronic Warfare: As demand increased for frequencies above 2 GHz, we developed the ability to design and manufacture planar filters utilizing interdigital, combline, hairpin, edge coupled and end coupled topologies. MPTI introduced our new Planar Filter Product Line to complement our over 59 years MPTI of designing and manufacturing various topology filters for our Industrial, Commercial, Space, Aerospace and Defense customers. With Extremely Small Size and Low Height and Stable Over a Wide Temperature Range, MPTI’s planar filters support the demands of rugged, high-performance applications needs growing with the development of Electronic Warfare.
Investor Call
Management, including MPTI's CEO, Michael Ferrantino, will host a conference call with the investment community on Thursday, August 15, 2024, to discuss the Company's second quarter 2024 results and to respond to investor questions.
The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Thursday August 15, 2024, and can be accessed using the dial-in details below:
Toll-Free Dial-in Number:
(800) 715-9871
Toll Dial-in Number:
+1 (646) 307-1963
Conference ID:
8891215
An archive of the call will be available after the call on Events and Presentations page on the Investor Relations section of MPTI’s website at https://ir.mtronpti.com/events-and-presentations, along with MPTI’s earnings release.
<<<
---
>>> M-tron Industries, Inc. (MPTI) engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally. The company's products include radio frequency, microwave, and millimeter wave filters; cavity, crystal, ceramic, lumped element, and switched filters; high frequency and performance OCXOs, integrated PLL OCXOs, TCXOs, VCXOs, and low jitter and harsh environment oscillators; crystal resonators, integrated microwave assemblies; and solid-state power amplifier products. Its products are used in applications in the commercial and military aerospace, defense, space, avionics, and other markets. The company was founded in 1965 and is headquartered in Orlando, Florida.
<<<
https://finance.yahoo.com/quote/MPTI/profile/
---
>>> M-tron Industries, Inc. (MPTI) engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally. The company's products include radio frequency, microwave, and millimeter wave filters; cavity, crystal, ceramic, lumped element, and switched filters; high frequency and performance OCXOs, integrated PLL OCXOs, TCXOs, VCXOs, and low jitter and harsh environment oscillators; crystal resonators, integrated microwave assemblies; and solid-state power amplifier products. Its products are used in applications in the commercial and military aerospace, defense, space, avionics, and other markets. The company was founded in 1965 and is headquartered in Orlando, Florida.
<<<
https://finance.yahoo.com/quote/MPTI/profile/
---
>>> M-tron Industries, Inc. (MPTI) engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally. The company's products include radio frequency, microwave, and millimeter wave filters; cavity, crystal, ceramic, lumped element, and switched filters; high frequency and performance OCXOs, integrated PLL OCXOs, TCXOs, VCXOs, and low jitter and harsh environment oscillators; crystal resonators, integrated microwave assemblies; and solid-state power amplifier products. Its products are used in applications in the commercial and military aerospace, defense, space, avionics, and other markets. The company was founded in 1965 and is headquartered in Orlando, Florida.
<<<
https://finance.yahoo.com/quote/MPTI/profile/
---
Comes a Time -
Bigworld, One good thing is that the election will be over in a few months. Or will it? Rickards has some wild post-election scenarios (see below). But even if everything goes smoothly, there are big problems regardless of who gets elected. If it's Trump, then the media and a big chunk of the Deep State will go even further into freak out mode. If it's Harris, then the lunacy and incompetence continues, and gets even worse. It may be time to move to a deserted island somewhere.
>>> The Race Is Anyone’s Call
By James Rickards
September 4, 2024
https://dailyreckoning.com/the-race-is-anyones-call/
The Race Is Anyone’s Call
Few events will affect investors more than the U.S. presidential election. The playing out of the campaign between now and Nov. 5 will obviously have an impact on markets as one side surges and the other side falters and vice versa.
But the impact won’t last for two months. It’ll last for four years and beyond because the two candidates — Trump and Harris — offer radically different policies.
It’s easy to get caught up in the daily rituals of name-calling, competing policy positions, endorsements, money and the rest of the campaign process. That matters, but not as much as getting to the core of what’s going on and who will actually win.
For that we need a larger frame that steps back from the headlines and looks at the critical campaign dynamics.
The campaign is a race between what we call the Kamala Narrative and the Kamala Reality. Since Joe Biden dropped out of the race on July 21 in what can only be described as a coup d’etat and quickly endorsed Kamala Harris for the nomination, we have been bathed in a media and political tsunami of pro-Kamala propaganda.
The Kamala Propaganda
It’s as if Kamala hadn’t been vice president for the past 3½ years and we’re suddenly being introduced to her for the first time as someone with new ideas and no responsibility for the disastrous administration of which she has been a part.
Not only are we expected to believe there’s a new Kamala on the scene, but this race will also play out much faster than the election calendar would indicate. Only about 35% of Americans vote on Election Day. The other 65% vote at various times beginning this week and lasting until Election Day. Most of the votes will be cast with drop-off ballots (gathered in a process called ballot harvesting and dumped into drop boxes with no accountability). In effect, the election will be over by mid-October.
Since the Kamala “honeymoon” lasted from July 21 through Aug. 22 (the official end of the Democratic National Convention) and since the election will be over by, say, Oct. 15, it means the real election season is only about 41 days between now and then.
Based on the Harris hagiography and the compressed calendar, the Democrats’ strategy becomes clear. The goal is to maintain the Kamala Narrative until mid-October before the Kamala Reality has time to catch up.
Can they do it? Possibly yes. And that should give all investors deep cause for concern. Let’s look at the narrative and the reality and then assess the Trump campaign’s ability to pop Kamala’s bubble before it’s too late.
The narrative is that Harris is “young,” “energetic,” “joyful” and represents the passing of the torch to a new generation of Democrats. The polls show a narrowing race, the media is almost uniformly in thrall and Harris supposedly will bring Blacks, younger people and independent women home to the Democratic ticket. Harris has put the swing states back in play and has several paths to victory.
The New Kid in Town?
Harris is also the “new” candidate. The media portray her as having nothing to do with the Afghanistan humiliation (although she claimed to be the “last person in the room” when the decisions were made) and the border collapse (although she was universally acknowledged as the “border czar”).
Forget all of her failures. In fact, don’t even talk about them. She’s the new kid on the block with a lot to offer and the avatar of a brighter future ahead.
The reality could not be more different. In reality, Harris is a radical progressive who will easily be manipulated by the Obama wing of the party with Susan Rice and Eric Holder filling in the policy blanks.
She’s a failed border czar who allowed 10 million illegal immigrants (many with criminal records, diseases and terrorist connections) to cross the border with no accountability, screening or tracking. She has no other foreign policy experience except for showing up at photo ops at some summit conferences.
The few policies that have been articulated by Harris include corporate tax increases, price controls and continued support for the Green New Scam. Price controls always cause shortages, higher prices and black-market sales.
The Green New Scam will keep energy prices for everyday Americans higher than needed. Corporate tax increases will hurt stock valuations. These Harris policies will slow the economy and hurt stock prices.
Harris cannot hold a press conference or speak extemporaneously except in the most juvenile way that ends up with nonsensical repetition. Kamala’s VP choice Tim Walz is even worse. He’s a hard-shell radical with close ties to Communist China. Even his own family dislikes him and endorses Trump.
All the Democrats really have to offer is more abortions, more war in Ukraine and relentless Trump bashing.
The Trump Dilemma
The election boils down to whether the Trump campaign can make the reality clear and pop the narrative bubble in the next seven weeks. The issue for the Harris campaign is whether she can sustain the narrative and run out the clock before reality intrudes.
On the one hand, Trump should stick to his issues (immigration, inflation, energy production, lower taxes and less regulation). Still, how does he do that in the face of a media blackout and Democrat lies about their real positions (such as Kamala’s claims she will stop inflation and control the border, etc.)? How does Trump pop the Harris narrative without name-calling and anger?
The endorsement of Trump by Robert F. Kennedy Jr. will help in some key swing states. The RFK bump may only be about two percentage points, but that’s a huge help in races where the polls show Trump and Harris within one percentage point of each other.
Trump also has a huge advertising budget, and his VP selection of J.D. Vance is a boost. Vance is even younger than Harris and helps to offset Harris’ presumed edge with younger voters. Vance’s continual availability to the press makes a stark contrast with Harris’ new basement strategy.
The best approach for Trump may be ridicule. It’s extremely powerful and works better than name-calling. Making Harris out to be a ridiculous figure with no policy success, no substance and not very bright may be the most effective technique for popping the narrative bubble.
It has the added advantage of actually being true.
The Dems’ Doomsday Plan
If Trump can win the election with 270 or more Electoral College votes, the fight won’t be over. The Democrats have another lawfare trick up their sleeves.
Even if Trump wins more than 270 Electoral College votes, Democrats could retake the House of Representatives. On Jan. 6, 2025, the new Democrat-controlled House could pass a resolution that Trump is an “insurrectionist” and disqualify his electoral votes under Section 3 of the 14th Amendment.
Kamala would not have 270 electoral votes needed to win. This would throw the election of the president to the House of Representatives voting as state delegations, not as individuals. Under the XII Amendment (1804), only Kamala Harris could receive votes for president assuming Trump was disqualified and no other candidate won any electors at all.
J.D. Vance would suffer no insurrectionist disqualification. So the result could be Kamala Harris as president and J.D. Vance as vice president (similar to Jefferson and Burr in 1801).
Another possibility is that the Republican-controlled state delegations in the House could boycott the presidential vote in which case a quorum would be lacking. In that case, the vice president (J.D. Vance) “shall act as president” under the XII Amendment. This is not a far-fetched scenario. Democrats led by Jamie Raskin have already set the wheels in motion.
Trump has 41 days to flip the narrative on Kamala Harris. If he does, the Democrats have a doomsday plan they will unveil on Jan. 6, 2025, to disqualify Trump.
Put on your crash helmets. The election is far from over and far from certain.
<<<
---
Going Up The Country -
Bigworld, >> September <<
Yes, historically not a great month for stocks. Right now investors are waiting to see the economic numbers on Friday, and if weak, then we might see a repeat of the sharp drop from early Aug.
Fwiw, I decided to just ride with the 15% long term stock allocation portion, which is in individual stocks. The other 0 - 15% portion will be in the S+P 500 index, and can be more flexible. The stock market historically goes through bear markets, but has always resumed its long term uptrend. I figure true long term investing means staying the course, though in my case the 'perma' stock side is only 15%, so the ulcers will hopefully be manageable.
In a few months the election uncertainty will be over, but then Wall St will find more things to worry about, lol. It's always something. The stock market is actually pretty resilient, all things considered. Keeping all asset categories covered seems like a logical strategy, although when the 'debt bomb' finally hits (~ 5 years?), some traditional investing rules may have to go out the window.
---
>>> Why Celsius Stock Suddenly Plunged Today
by Jon Quast
Motley Fool
Sep 4, 2024
https://finance.yahoo.com/news/why-celsius-stock-suddenly-plunged-192700604.html
It started out as a calm morning for shares of Celsius Holdings. But around noon, management made an appearance at Barclays' 17th Annual Global Consumer Staples Conference. During the chat, management said something that sparked fear in investors: In the current quarter, sales to PepsiCo are down $100 million to $120 million compared to last year.
Investors took action, and that's why Celsius stock was down a painful 12% as of 3:15 p.m. ET.
How does Celsius generate revenue?
Pepsi became the primary distribution partner for Celsius in August 2022. For Celsius, it now recognizes revenue when it delivers inventory to Pepsi. From there, Pepsi distributes it to retail channels where it's purchased by consumers. And for this reason, there's a difference between when Celsius generates revenue and when its products actually sell in stores.
In 2023, Celsius' revenue was up an impressive 102% year over year and well ahead of expectations from analysts. But it's now clear that this outperformance was because Pepsi ordered too much product. It's a misstep that Pepsi is now correcting by ordering less from Celsius while it sells inventory it has on hand.
For the current third quarter of 2024, Celsius management estimates that Pepsi will order between $100 million and $120 million less than it ordered in the third quarter of 2023. To be sure, this will be a huge drag on Q3 results and it's why the stock plunged today.
What should investors do now?
There are cases where the financials don't clearly reflect the health of the business, and I believe this is one of those cases. During its chat today, Celsius management pointed out that Q3 sales for its products are up 10% so far. This won't be reflected in its revenue, because it generates revenue when it supplies inventory to Pepsi. But sales to consumers are growing nevertheless.
Moreover, Celsius management believes it's gained another whole point of market share in the energy drink space. And market share is huge for a beverage stock.
I'll stop short of calling the bottom for Celsius stock. But I believe the explanation of what's happening with the business is reasonable. And I consequently believe that investors are overreacting to today's news.
<<<
---
>>> Why Celsius Stock Suddenly Plunged Today
by Jon Quast
Motley Fool
Sep 4, 2024
https://finance.yahoo.com/news/why-celsius-stock-suddenly-plunged-192700604.html
It started out as a calm morning for shares of Celsius Holdings. But around noon, management made an appearance at Barclays' 17th Annual Global Consumer Staples Conference. During the chat, management said something that sparked fear in investors: In the current quarter, sales to PepsiCo are down $100 million to $120 million compared to last year.
Investors took action, and that's why Celsius stock was down a painful 12% as of 3:15 p.m. ET.
How does Celsius generate revenue?
Pepsi became the primary distribution partner for Celsius in August 2022. For Celsius, it now recognizes revenue when it delivers inventory to Pepsi. From there, Pepsi distributes it to retail channels where it's purchased by consumers. And for this reason, there's a difference between when Celsius generates revenue and when its products actually sell in stores.
In 2023, Celsius' revenue was up an impressive 102% year over year and well ahead of expectations from analysts. But it's now clear that this outperformance was because Pepsi ordered too much product. It's a misstep that Pepsi is now correcting by ordering less from Celsius while it sells inventory it has on hand.
For the current third quarter of 2024, Celsius management estimates that Pepsi will order between $100 million and $120 million less than it ordered in the third quarter of 2023. To be sure, this will be a huge drag on Q3 results and it's why the stock plunged today.
What should investors do now?
There are cases where the financials don't clearly reflect the health of the business, and I believe this is one of those cases. During its chat today, Celsius management pointed out that Q3 sales for its products are up 10% so far. This won't be reflected in its revenue, because it generates revenue when it supplies inventory to Pepsi. But sales to consumers are growing nevertheless.
Moreover, Celsius management believes it's gained another whole point of market share in the energy drink space. And market share is huge for a beverage stock.
I'll stop short of calling the bottom for Celsius stock. But I believe the explanation of what's happening with the business is reasonable. And I consequently believe that investors are overreacting to today's news.
<<<
---