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Lakes Entertainment, Inc. Announces Agreement with Dania Entertainment Holdings Relating to the Acquisition of Dania Jai Alai
Lakes Entertainment, Inc. (LACO) announced that it entered into an Amended and Restated Operating Agreement of Dania Entertainment Holdings, LLC (“Agreement”) relating to Dania Entertainment Center, LLC’s (“Dania”) acquisition of Dania Jai Alai from Boyd Gaming Corp. (“Boyd Gaming”). Lakes previously loaned $4 million to Dania which was converted into ownership of 20% of Dania Entertainment Holdings, LLC which owns 25% of Dania. It is contemplated that Lakes will not be required to invest any additional money in Dania Entertainment Holdings, LLC.
Recently, Dania announced that it had entered into an asset purchase agreement with a subsidiary of Boyd Gaming to purchase the Dania Jai Alai located in Dania Beach, Florida for $65.5 million. Dania announced that the acquisition closed on May 22, 2013. Lakes will have no operational responsibility of Dania Jai Alai.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland. Lakes also has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino, an investment in Rock Ohio Ventures, LLC’s casino and racino developments in Ohio, and an investment in Dania Entertainment Center, LLC’s Dania Jai Alai fronton in Dania Beach, Florida.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, need for potential future financing to meet Lakes’ development needs; those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; possible need for future financing to meet Lakes' expansion goals; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
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Contact:.
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Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030.
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Lakes Entertainment, Inc. (LACO) today announced that its Rocky Gap Casino Resort has opened to the public after receiving approval from the Maryland Lottery and Gaming Control Agency. The casino will now be open 24 hours a day, seven days a week. The Rocky Gap Casino Resort is located near beautiful Cumberland, Maryland, and features approximately 550 slot machines and 10 table games. In addition to the new casino, the AAA Four Diamond Award® winning resort also unveiled renovations to its lobby, hotel rooms, restaurants, and Jack Nicklaus Signature Golf Course. A new event and conference center is being constructed and is expected to open in the fourth quarter of 2013.
“We are thrilled to have completed the addition of the casino and look forward to welcoming the public to experience the newly renovated Rocky Gap Casino Resort featuring our new gaming amenities. We have also made improvements to our Lakeside and Signatures restaurants and added two additional food outlets. Improvements have been made to our Jack Nicklaus Signature Golf Course as well and we have renovated the hotel lobby and existing 200 hotel rooms,” said Tim Cope, Lakes’ President and Chief Financial Officer. “Located in the rolling hills of western Maryland, Rocky Gap Casino Resort offers a unique getaway experience. A host of outdoor activities in addition to golf are available at Rocky Gap Casino Resort and the surrounding Rocky Gap State Park including hiking, boating, and biking among others. We hope guests will appreciate the wide-range of available activities.”
Reservations and Information
To make a hotel or restaurant reservation, reserve a tee time or a spa appointment, or for more information about Rocky Gap Casino Resort, please call 1(800)724-0828 or visit www.rockygapresort.com.
About Rocky Gap Casino Resort
Rocky Gap Casino Resort, located near Cumberland, Maryland in the heart of Allegany County, is a AAA 4-Diamond Award® winning resort featuring a hotel, four restaurants, the only Jack Nicklaus Signature Golf Course in Maryland, a spa, indoor/outdoor pool, fitness center, pro shop, sundries, free valet and self parking, and several outdoor recreational activities. The casino features approximately 550 slot machines, 10 table games, and a casino bar. A new event and conference center is expected to open in the fourth quarter of 2013. Rocky Gap Casino Resort is owned by Evitts Resort, LLC, a subsidiary of Lakes Entertainment, Inc. More information is available at: www.rockygapresort.com.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland. Lakes has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has an investment in Rock Ohio Ventures, LLC’s casino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
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Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030.
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..Sanderson Farms, Inc. to Broadcast Its Second-Quarter 2013 Conference Call Live on the Internet
Business WirePress Release: Sanderson Farms, Inc. – Thu, May 16, Sanderson Farms, Inc. (SAFM) today announced that it will provide an online Web simulcast of its fiscal second-quarter 2013 earnings conference call on Thursday, May 30, 2013. During this call, management will comment on Sanderson Farms' financial and operational results for the second quarter ended April 30, 2013.
The live broadcast of Sanderson Farms' conference call will begin at 10:00 a.m. Central Time, 11:00 a.m. Eastern Time on May 30. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue through June 10, 2013. Links to these events may be found at the investor relations section of the Company's website, www.sandersonfarms.com, and from www.earnings.com. Those without Internet access may listen to the call by dialing (888-596-2572) (Confirmation Code 6119362).
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
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Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
..Sanderson Farms, Inc. to Broadcast Its Second-Quarter 2013 Conference Call Live on the Internet
Business WirePress Release: Sanderson Farms, Inc. – Thu, May 16, Sanderson Farms, Inc. (SAFM) today announced that it will provide an online Web simulcast of its fiscal second-quarter 2013 earnings conference call on Thursday, May 30, 2013. During this call, management will comment on Sanderson Farms' financial and operational results for the second quarter ended April 30, 2013.
The live broadcast of Sanderson Farms' conference call will begin at 10:00 a.m. Central Time, 11:00 a.m. Eastern Time on May 30. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue through June 10, 2013. Links to these events may be found at the investor relations section of the Company's website, www.sandersonfarms.com, and from www.earnings.com. Those without Internet access may listen to the call by dialing (888-596-2572) (Confirmation Code 6119362).
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
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Contact:.
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Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
SIFCO Industries, Inc. Announces Second Quarter Fiscal 2013 Financial Results
Business WirePress Release: SIFCO Industries, Inc. – Fri, May 10,
CLEVELAND--(BUSINESS WIRE)--
SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its second fiscal quarter, which ended March 31, 2013.
Second quarter
• Net sales from continuing operations decreased 1.8% in the second quarter of fiscal 2013 to $29.6 million, compared with $30.1 million in the comparable period in fiscal 2012.
• Income from continuing operations in the second quarters of fiscal 2013 and 2012 was the same at $1.5 million, or $0.27 per diluted share.
• Net income in the second quarter of fiscal 2013 was $1.4 million, compared with $1.7 million in the comparable period in fiscal 2012.
• EBITDA in the second quarter of fiscal 2013 was $3.5 million, or 12.0% of net sales, compared with $3.9 million, or 12.9% of net sales, in the comparable fiscal 2012 period.
• Adjusted EBITDA in the second quarter of fiscal 2013 was $3.6 million, or 12.1% of net sales, compared with $4.7 million, or 15.6% of net sales, in the comparable fiscal 2012 period.
First six months
• Net sales increased 6.2% in the first six months of fiscal 2013 to $58.3 million, compared with $54.9 million in the comparable period in fiscal 2012.
• Income from continuing operations in the first six months of fiscal 2013 was $2.4 million, or $0.44 per diluted share, compared with $2.3 million, or $0.43 per diluted share, in the comparable fiscal 2012 period.
• Net income for the first six months of fiscal 2013 was $4.9 million, or $0.90 per diluted share, compared with net income of $2.9 million, or $0.55 per diluted share, for the comparable fiscal 2012 period.
• EBITDA in the first six months of fiscal 2013 was $6.6 million, or 11.3% of net sales, compared with $6.8 million, or 12.3% of net sales, in the comparable period in fiscal 2012.
• Adjusted EBITDA in the first six months of fiscal 2013 was $7.1 million, or 12.2% of net sales, compared with $8.2 million, or 15.0% of net sales, in the comparable period in fiscal 2012.
CEO Michael S. Lipscomb stated, “I am pleased with the results of our Forged Components Group. Our focus on productivity and throughput initiatives positions us well for continued improvement in operating performance.”
The results for fiscal 2012 include the results of Quality Aluminum Forge, which was acquired in October 2011.
Forward-Looking Language
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings.
The Company’s Form 10-Q for the quarter ended March 31, 2013 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include both conventional and precision forging, heat-treating, coating, welding, and machining. The products include both conventional and precision forged components, machined forged parts and other machined metal components, and remanufactured component parts for aerospace turbine engines. The Company’s operations are conducted in two business segments: (1) Forged Components Group, and (2) Turbine Components Services and Repair Group.
SIFCO Industries, Inc. Announces Second Quarter Fiscal 2013 Financial Results
Business WirePress Release: SIFCO Industries, Inc. – Fri, May 10,
CLEVELAND--(BUSINESS WIRE)--
SIFCO Industries, Inc. (NYSE MKT: SIF) today announced financial results for its second fiscal quarter, which ended March 31, 2013.
Second quarter
• Net sales from continuing operations decreased 1.8% in the second quarter of fiscal 2013 to $29.6 million, compared with $30.1 million in the comparable period in fiscal 2012.
• Income from continuing operations in the second quarters of fiscal 2013 and 2012 was the same at $1.5 million, or $0.27 per diluted share.
• Net income in the second quarter of fiscal 2013 was $1.4 million, compared with $1.7 million in the comparable period in fiscal 2012.
• EBITDA in the second quarter of fiscal 2013 was $3.5 million, or 12.0% of net sales, compared with $3.9 million, or 12.9% of net sales, in the comparable fiscal 2012 period.
• Adjusted EBITDA in the second quarter of fiscal 2013 was $3.6 million, or 12.1% of net sales, compared with $4.7 million, or 15.6% of net sales, in the comparable fiscal 2012 period.
First six months
• Net sales increased 6.2% in the first six months of fiscal 2013 to $58.3 million, compared with $54.9 million in the comparable period in fiscal 2012.
• Income from continuing operations in the first six months of fiscal 2013 was $2.4 million, or $0.44 per diluted share, compared with $2.3 million, or $0.43 per diluted share, in the comparable fiscal 2012 period.
• Net income for the first six months of fiscal 2013 was $4.9 million, or $0.90 per diluted share, compared with net income of $2.9 million, or $0.55 per diluted share, for the comparable fiscal 2012 period.
• EBITDA in the first six months of fiscal 2013 was $6.6 million, or 11.3% of net sales, compared with $6.8 million, or 12.3% of net sales, in the comparable period in fiscal 2012.
• Adjusted EBITDA in the first six months of fiscal 2013 was $7.1 million, or 12.2% of net sales, compared with $8.2 million, or 15.0% of net sales, in the comparable period in fiscal 2012.
CEO Michael S. Lipscomb stated, “I am pleased with the results of our Forged Components Group. Our focus on productivity and throughput initiatives positions us well for continued improvement in operating performance.”
The results for fiscal 2012 include the results of Quality Aluminum Forge, which was acquired in October 2011.
Forward-Looking Language
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions, competition and other uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings.
The Company’s Form 10-Q for the quarter ended March 31, 2013 can be accessed through its website: www.sifco.com, or on the Securities and Exchange Commission’s website: www.sec.gov.
SIFCO Industries, Inc. is engaged in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include both conventional and precision forging, heat-treating, coating, welding, and machining. The products include both conventional and precision forged components, machined forged parts and other machined metal components, and remanufactured component parts for aerospace turbine engines. The Company’s operations are conducted in two business segments: (1) Forged Components Group, and (2) Turbine Components Services and Repair Group.
PARSIPPANY, N.J.--(BUSINESS WIRE)--
Wireless Telecom Group, Inc. (NYSE MKT: WTT) announced today results for the first quarter ended March 31, 2013.
For the quarter ended March 31, 2013, the Company reported net sales of $6,797,000, compared to $6,902,000 for the same period in 2012, a decrease of 1.5%.
The Company also reported net income of $346,000 or $0.01 per diluted share for the first quarter of 2013, compared to net income of $656,000, or $0.03 per diluted share, for the first quarter of 2012, a decrease of 47.2%.
Paul Genova, CEO of Wireless Telecom Group, Inc., stated, “Despite experiencing softness in our Test and Measurement business segment during the first quarter, we continue to see growth in our Network Solutions business segment, particularly for products sold into distributed antenna systems. Revenue in our Network Solution segment increased by 14% compared to the same quarter of the prior year and order activity continues to be robust, as evidenced by strong order bookings during the period and an increased backlog.”
Genova continued, “Net income for the quarter was affected by higher operating expenses due in part to ongoing investment in our Network Solutions business in anticipation of increased future revenue.”
Continued Genova, “We will continue to execute our strategic plan and remain highly focused on improving overall results and maximizing shareholder value.”
Wireless Telecom Group designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries and markets its products and services worldwide under the Boonton, Microlab and Noisecom brands. Its complementary suite of high performance components and instruments includes RF combiners and broadband combiner boxes for in-building distributed antenna systems deployments, RF power splitters and diplexers, hybrid couplers, peak power meters, signal analyzers, noise modules, precision noise and generators. The Company serves both commercial and government markets with workflow-oriented, WiFi, WiMAX, satellite, cable, radar, avionics, medical, and computing applications. Wireless Telecom Group is headquartered in Parsippany, New Jersey, in the New York City metropolitan area, and maintains a global network of Sales and Service offices for excellent product service and support.
Wireless Telecom Group’s website address is http://www.wtcom.com. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012.
See following Selected Financial Results
SELECTED FINANCIAL RESULTS
(In thousands, except per share amounts)
Three months ended
March 31,
(Unaudited)
2013
2012
Statement of Operations Data:
Net sales $ 6,797 $ 6,902
Gross profit 3,320 3,355
Operating expenses
Research and development 612 599
Sales and marketing 1,022 1,073
General and administrative 1,442 1,132
Total operating expenses 3,076 2,804
Interest and other (income) expense (15 ) (9 )
Income before income taxes 259 560
Net income $ 346 $ 656
Net Income per common share:
Basic $ 0.01 $ 0.03
Diluted $ 0.01 $ 0.03
Weighted average shares outstanding:
Basic 23,874 24,431
Diluted 24,301 24,794
March 31, December 31,
2013
2012
(Unaudited)
Balance Sheet Data:
Cash & cash equivalents $ 12,240 $ 12,970
Working capital $ 26,564 $ 26,516
Total assets $ 40,476 $ 41,230
Total liabilities $ 4,317 $ 5,315
Shareholders’ equity $ 36,159 $ 35,915
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Wireless Telecom Group, Inc.
Robert Censullo, 973-386-9696
PhotoMedex Reports First Quarter 2013 Financial Results
Revenues increased 14% over the same period in 2012, diluted EPS increased 31% to $0.34
Business WirePress Release: PhotoMedex, Inc. – Wed, May 8, 2013 8:00 AM EDTEmail0Share0PrintRELATED QUOTESSymbol Price Change
PHMD 15.55 0.04
MONTGOMERYVILLE, Pa.--(BUSINESS WIRE)--
PhotoMedex, Inc. (PHMD) today reported financial results for the three months ended March 31, 2013. Financial highlights of the 2013 first quarter include:
Revenues of $57.2 million, an increase of 14% compared with the prior-year first quarter and an increase of 4% sequentially
Consumer revenues of $49.0 million, an increase of 16% compared with the prior-year first quarter and an increase of 6% sequentially
Direct-to-consumer channel revenues of $31.7 million, an increase of 1% compared with the prior-year first quarter and an increase of 6% sequentially
Global retail and home shopping channel revenues of $12.0 million, an increase of 101% compared with the prior-year first quarter and a decrease of 3% sequentially
Distributor consumer channel revenues of $5.3 million, an increase of 13% compared with the prior-year first quarter and an increase of 41% sequentially
XTRAC® adjusted treatment revenues of $3.2 million, an increase of 73% compared with the prior-year first quarter and an increase of 22% sequentially
XTRAC® recurring revenue U.S. installed base of 401 at quarter end, an increase of 51 placements during the quarter, including 27 on the Comeback program of previously sold systems
NEOVA® skin care revenues of $2.2 million, an increase of 3% compared with the prior-year first quarter and an increase of 14% sequentially
Gross profit of $45.4 million, an increase of 16% compared with the first quarter of 2012
Gross margin of 79.3% compared with 77.7% in the prior-year first quarter
Pre-tax income of $9.7 million, an increase of 91% compared with the prior-year first quarter and an increase of 45% sequentially
Earnings per diluted share of $0.34, an increase of 31%, compared with the prior-year first quarter and an increase of 21% sequentially
Non-GAAP adjusted income of $12.5 million or $0.59 per diluted share, representing increases of 49% and 34%, respectively, compared with the prior-year first quarter and increases of 31% and 31%, respectively, sequentially
Reported Financial Results
Revenues for the first quarter of 2013 were $57.2 million, an increase of 14% compared with revenues for the first quarter of 2012 of $50.3 million.
Net income for the first quarter of 2013 was $7.2 million, or $0.34 per diluted per share, which included $1.3 million in stock-based compensation expense and $1.4 million in depreciation and amortization expenses. This compares with net income for the first quarter of 2012 of $4.9 million, or $0.26 per diluted share, which included $1.8 million in stock-based compensation expense and $1.3 million in depreciation and amortization expenses.
PhotoMedex repurchased no shares of its common stock during the first quarter of 2013.
As of March 31, 2013 the Company had cash and cash equivalents of $63.5 million or $3.00 per diluted share, compared with $62.3 million as of December 31, 2012. Current assets included $24.3 million in accounts receivable, compared with $19.1 million as of December 31, 2012. The increase in accounts receivables was largely related to the impact of the timing of shipments related to a television home shopping special event in the first quarter, which were collected in the second quarter.
Management expects revenues for the second quarter of 2013 to exceed $59 million.
Dr. Dolev Rafaeli, PhotoMedex CEO, commented, “The rapid growth we have achieved the past few years continued during the first quarter and, importantly, featured an improvement in gross margin led by a 16% increase in consumer revenues, particularly from our no!no!™ products. No!no! is now available in most every Bed Bath and Beyond store across the U.S. and we are pleased with the initial sales ramp. We have also had strong responses to our Spanish-language advertisements in the U.S. and our marketing of no!no! Men. In addition we achieved substantial sales increases in Neova® skin care products from upselling no!no! customers at our call centers.
“Geographic expansion holds particular promise for PhotoMedex as we prepare to launch no!no! in Brazil and further develop the German and Korean markets. We are very excited about the sales potential in these geographies going into the second half of the year.”
Dr. Rafaeli added, “XTRAC adjusted treatment revenues were up 73% compared with the first quarter of 2012 as our direct-to-patient advertising is having a clear impact. We’ve initiated television and radio advertising in six new areas of the country and we plan additional rollouts of advertising in new markets throughout the year.”
A reconciliation of non-GAAP financial measures to GAAP financial measures, and a presentation of the most directly comparable GAAP financial measures are included below.
Non-GAAP Measures
To supplement PhotoMedex’s consolidated financial statements presented in accordance with GAAP, PhotoMedex provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP adjusted income and non-GAAP adjusted income per share.
PhotoMedex’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of PhotoMedex’s current financial performance and to provide further information for comparative purposes.
Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, PhotoMedex believes non-GAAP measures enhance the comparability of results against prior periods. Reconciliation to the most directly comparable GAAP measure of all non-GAAP measures included in this press release is as follows:
(Unaudited)
Three Months Ended Mar 31,
(ooo's) except per share amounts 2013 2012
Net income as reported $ 7,212 $ 4,857
Adjustments:
Depreciation and amortization expense 1,443 1,332
Interest expense, net 5 189
Income tax expense 2,511 240
EBITDA $ 11,171 $ 6,618
Stock-based compensation expense 1,290 1,753
Non-GAAP adjusted income $ 12,461 $ 8,371
Fully diluted shares outstanding at March 31 21,148 18,876
Non-GAAP adjusted income per share $ 0.59 $ 0.44
Conference Call
PhotoMedex will hold a conference call to discuss the Company's first quarter 2013 results and answer questions today, May 8, 2013 beginning at 11:00 a.m. Eastern time.
To participate in the conference call, dial toll free 888-686-9681 or International/toll 913-312-1467 (and confirmation code # 7662001) approximately five to 10 minutes prior to the scheduled start time. For the convenience of our Israeli participants, a local/toll free number (1-80-925-8350) has been set up (the confirmation code remains the same # 7662001). If you are unable to participate, a digital replay of the call will be available from Wednesday, May 8, 2013 from 2:00 p.m. ET to Wednesday, May 22, 2013 at 2:00 p.m. ET, by dialing toll free 888-203-1112 or International/toll 719-457-0820 (Israeli participants may dial 1-80-924-6038) and using confirmation code # 7662001.
The live broadcast of PhotoMedex, Inc.'s quarterly conference call will be available online by going to www.photomedex.com and clicking on the link to Investor Relations, and at www.streetevents.com. The online replay will be available shortly after the conclusion of the call at those sites.
About PhotoMedex
PhotoMedex is a global skin health company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians and consumers. The company provides proprietary products and services that address skin diseases and conditions including psoriasis, vitiligo, acne, actinic keratosis (a precursor to certain types of skin cancer) and photo damage. Its experience in the physician market provides the platform to expand its skin health solutions to spa markets, as well as traditional retail, online and infomercial outlets for home-use products. As a result of its December 2011 merger with Radiancy Inc., PhotoMedex has added a range of home-use devices under the no!no!™ brand, for various indications including hair removal, acne treatment and skin rejuvenation. The company also offers a professional product line for acne clearance, skin tightening, psoriasis care and hair removal sold to physician clinics and spas.
SAFE HARBOR STATEMENT
Some portions of the conference call, particularly those describing PhotoMedex' strategies, operating expense reductions and business plans will contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements of the plans, strategies and objectives of management for future operations; any statements regarding product development, product extensions, product integration or product marketing; any statements regarding continued compliance with government regulations, changing legislation or regulatory environments; any statements of expectation or belief and any statements of assumptions underlying any of the foregoing. In addition, there are risks and uncertainties related to successfully integrating the products and employees of the Company and Radiancy, as well as the ability to ensure continued regulatory compliance, performance and/or market growth. These risks, uncertainties and other factors, and the general risks associated with the businesses of the Company described in the reports and other documents filed with the SEC, could cause actual results to differ materially from those referred to, implied or expressed in the forward-looking statements. The Company cautions readers not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to the Company and are qualified in their entirety by this cautionary statement. The Company anticipates that subsequent events and developments will cause its views to change. The information contained in this conference call speaks as of the date hereof and the Company has or undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
PHOTOMEDEX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
(ooo's) except per share amounts 2013 2012
Revenues $ 57,216 $ 50,273
Cost of revenues 11,866 11,234
Gross profit 45,350 39,039
Operating expenses:
Selling and marketing 29,326 25,835
General and administrative 5,659 7,119
Research and development and engineering 773 758
35,758 33,712
Operating income 9,592 5,327
Interest and other financing income (expense), net 131 (230 )
Income before taxes expense 9,723 5,097
Income tax (expense) benefit (2,511 ) (240 )
Net income 1 $ 7,212 $ 4,857
Net income per share:
Basic $ 0.35 $ 0.26
Diluted $ 0.34 $ 0.26
Shares used in computing net income per share:
Basic 20,678 18,340
Diluted 21,148 18,876
1 Includes: depreciation and amortization 1,443 1,332
Share-based compensation expense 1,290 1,753
PHOTOMEDEX, INC.
CONSOLIDATED STATEMENTS OF REVENUES
(UNAUDITED)
For the three months ended:
March 31, 2013 December 31, 2012 March 31, 2012
Consumer:
Direct $ 31,722 $ 29,997 $ 31,516
Distributors 5,291 3,763 4,693
Retailer and home shopping channels 12,047 12,362 5,992
sub-total 49,060 46,122 42,201
Physician Recurring
XTRAC treatments 3,159 2,583 1,824
Less: XTRAC incremental deferred revenue (590 ) 29 (145 )
Skin care 2,226 1,949 2,165
Other 1,160 1,255 1,229
sub-total 5,955 5,816 5,073
Professional 2,201 2,852 2,999
Total Revenues $ 57,216 $ 54,790 $ 50,273
PHOTOMEDEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 2013 December 31, 2012
Assets
Cash, cash equivalents, and short-term investments $ 63,509 $ 62,348
Accounts receivable, net 24,281 19,064
Inventories 21,483 22,467
Other current assets 28,155 32,294
Property and equipment, net 7,744 6,759
Other non-current assets 66,358 68,958
Total Assets $ 211,530 $ 211,890
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $ 26,432 $ 34,618
Other current liabilities 6,648 5,259
Bank and lease notes payable 593 619
Other liabilities 3,828 4,067
Stockholders' equity 174,029 167,327
Total Liabilities and Stockholders' Equity $ 211,530 $ 211,890
PHOTOMEDEX, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months
Ended
March 31,
2013
2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 7,212 $ 4,857
Adjustments to reconcile net income to net cash provided by operating activities--
Depreciation and amortization 1,443 1,332
Provision for doubtful accounts 1,046 714
Deferred income taxes 523 2,027
Stock-based compensation 1,290 1,753
Changes in assets and liabilities:
(Increase) decrease in--
Current Assets (1,596 ) (8,598 )
Current liabilities (6,854 ) 6,063
Net cash provided by operating activities 3,064 8,148
CASH FLOWS FROM INVESTING ACTIVITIES:
Lasers placed in service (1,220 ) (366 )
Purchases of PP&E, net (211 ) (96 )
Other (58 ) (70 )
Net cash used in investing activities (1,489 ) (532 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of options/issuance of securities 13 125
Repayments of debt (213 ) (737 )
Net cash used in financing activities (200 ) (612 )
Effect of exchange rate changes on cash (214 ) (5 )
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,161 6,999
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 44,348 16,549
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 45,509 $ 23,548
Supplemental information:
Cash paid for income taxes
$
3,941
$
56
Cash paid for interest
$
7
$
59
Contact:
LHA
Kim Sutton Golodetz, 212-838-3777
Kgolodetz@lhai.com
or
Bruce Voss, 310-691-7100
Bvoss@lhai.com
@LHA_IR_PR
or
PhotoMedex, Inc.
Dennis McGrath, 215-619-3287
Chief Financial Officer
info@photomedex.com
Sappi results for 2nd quarter ended March 2013 reflect mixed markets
PR NewswirePress Release: Sappi Limited – Thu, May 9, 2013 2:34 AM EDTEmail0Share0PrintRELATED QUOTESSymbol Price Change
SPP 2.69 0.04
JOHANNESBURG, May 9, 2013 /PRNewswire/ --
Summary for the quarter
European business impacted by lower prices and higher pulp costs
Specialised Cellulose projects on track, major shuts completed
Profit for the period US$7 million (Q2 2012 US$58 million)
EPS 1 US cent (Q2 2012 11 US cents)
Operating profit excluding special items US$40 million (Q2 2012 US$125 million)
Net finance costs US$40 million (Q2 2012 US$51 million)
Net debt US$2,152 million (Q2 2012 US$2,133 million)
(Logo: http://photos.prnewswire.com/prnh/20110728/MM43821LOGO )
Commenting on the result, Sappi (NYSE: SPP, JSE: SAP) Chief Executive Officer Ralph Boettger said:
"The Specialised Cellulose and North American businesses continue to perform well and the investments in the conversions at the Ngodwana and Cloquet Mills have progressed according to plan. Dissolving wood pulp production is scheduled to start at these two mills during the 3rd quarter. As indicated in the previous quarter, we expected operating profit for the second quarter to be lower than that of the first quarter. The actual performance was weaker than expected however, due to weaker European market conditions and an inability to implement any meaningful coated graphic paper price increases in Europe during the past quarter. This led to a weak overall group performance.
"Looking forward, market conditions for our paper businesses, particularly in Europe are expected to continue to be weaker than previously envisaged. The price increases in Europe, to date, have not been sufficient to restore margins given rising input costs. Despite the interventions and major cost reductions that have taken place, we expect the European business to only achieve a breakeven operating profit excluding special items for the full year. This performance necessitates further action and we are evaluating a number of options that could result in capacity and cost reductions in our European business. Further measures are also being implemented in the Southern African business. The Specialised Cellulose and North American businesses are expected to continue to perform according to plan.
"Notwithstanding the weak European performance, and the impact of the commissioning and start-up of the two major dissolving wood pulp projects, we believe that the group will at worst breakeven at the net profit excluding special items level for the full year. We expect net debt to peak at approximately US$2.4 billion in the third quarter and thereafter to decrease to approximately US$2.2 billion by the end of the financial year.
"Despite the generally tough market conditions and the once-off impact of our major transitionary projects on the current year's performance, our actions and investments will position the group well for improved performance from 2014 onwards."
Quarter ended
Half-year ended
Mar
2013
Mar
2012
Dec
2012
Mar
2013
Mar
2012
Key figures: (US$ million)
Sales
1,503
1,633
1,475
2,978
3,218
Operating profit
78
120
70
148
227
Special items – (gains) losses*
(38)
5
3
(35)
(2)
Operating profit excluding special items*
40
125
73
113
225
EBITDA excluding special items*
128
217
162
290
411
Profit for the period
7
58
17
24
103
Basic earnings per share (US cents)
1
11
3
5
20
Net debt *
2,152
2,133
2,095
2,152
2,133
Key ratios (%)
Operating profit to sales
5.2
7.4
4.8
5.0
7.1
Operating profit excluding special items to
sales
2.7
7.7
5.0
3.8
7.0
Operating profit excluding special items to
capital employed (ROCE)
4.4
13.4
8.2
6.4
12.2
EBITDA excluding special items to sales
8.5
13.3
11.0
9.7
12.8
Return on average equity (ROE)*
1.9
14.7
4.5
3.2
13.2
Net debt to total capitalisation*
59.9
56.5
58.1
59.9
56.5
Net asset value per share (US cents)
277
315
290
277
315
*
Refer to the published results for details on special items, the definition of the terms and the reconciliation of EBITDA
excluding special items to profit/loss for the period.
The table above has not been audited or reviewed.
The quarter under review
Operating profit excluding special items of US$40 million was adversely impacted by the weak performance of the European business. This compares to an operating profit excluding special items of US$125 million in the equivalent quarter last year and US$73 million in the quarter ended December 2012.
In the North American business strong paper sales volumes offset weaker paper sales prices as well as the decline in paper pulp sales due to preparations at the Cloquet Mill for the pulp mill conversion from paper pulp to dissolving wood pulp. Coated paper sales volumes increased 6% over the equivalent quarter last year and were 2% higher than the prior quarter; prices were however, lower in a competitive market.
While the Southern African business performed reasonably well, it was as expected, negatively impacted by the planned extended shut at the Ngodwana Mill as a result of the conversion of the pulp mill to dissolving wood pulp as well as the relatively weak local demand for paper products. Special items for the quarter included a plantation price fair value adjustment of US$96 million (R863 million) largely as a result of the revaluation of the softwood plantation assets that previously supplied the Ngodwana softwood pulp line. As a result of the conversion of the pulp mill to hardwood dissolving wood pulp, this softwood resource is now available to sell as saw logs which earn a price premium to pulp logs. Various assets at the Tugela and Stanger Mills were impaired and a charge of US$52 million (R454 million) was booked in the quarter. These charges relate to the ongoing optimisation process in the Southern African paper and paper packaging business.
Dissolving wood pulp sales volumes from the Saiccor Mill remain limited only by our production capacity. Rising NBSK pulp prices, to which our dissolving wood pulp sales are linked, and a weaker Rand exchange rate contributed to the strong performance of Saiccor, which generated R472 million in EBITDA excluding special items and an EBITDA excluding special items margin of 34%.
Market conditions for our graphic paper products remained challenging, particularly in Europe where we experienced further deterioration across all graphic paper grades. Paper volumes and prices in this business were lower, whilst input costs were higher compared to the corresponding quarter last year. We were unable to fully implement the January price increases during the quarter.
Net finance costs for the quarter of US$40 million are US$11 million below that of the equivalent quarter last year as a result of the refinancing of higher cost debt in the past year.
Net cash utilised for the quarter was US$99 million, compared to net cash generation of US$91 million in the equivalent quarter last year. This cash utilisation was mainly as a result of lower profits from operations and capital expenditure which increased to US$179 million during the quarter from the US$59 million in the equivalent quarter last year. This increased capital expenditure relates primarily to the strategic investments in expanding our dissolving wood pulp capacity.
Liquidity remains strong with cash on hand of US$398 million and US$509 million available from the undrawn committed revolving credit facilities in Europe and South Africa.
Outlook
Market conditions for our paper businesses, particularly in Europe are expected to be weaker than previously envisaged. Demand and pricing remain under pressure and input costs, particularly pulp, are likely to remain high. The announced January price increases for coated woodfree paper were only marginally successful, and further price increases were announced during the quarter for implementation in April. These increases, to date, have not been sufficient to restore margins given rising input costs. Despite the interventions and major cost reductions that have taken place, we expect the European business to only achieve a breakeven operating profit excluding special items for the full year.
The Ngodwana and Cloquet Mills both successfully completed their major shuts relating to the Specialised Cellulose expansion projects during March and April. Dissolving wood pulp production is expected to commence at both plants before the end of June, with paper pulp being produced for internal use in the interim.
The full results announcement is available at www.sappi.com
There will be a conference call to which investors are invited. Full details are available at www.sappi.com using the links Investor Info; Investor Calendar; 2Q13 Financial Results
Forward-looking statements
Certain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. The words "believe", "anticipate", "expect", "intend", "estimate", "plan", "assume", "positioned", "will", "may", "should", "risk" and other similar expressions, which are predictions of or indicate future events and future trends, which do not relate to historical matters, identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to:
the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing);
the impact on our business of the global economic downturn;
unanticipated production disruptions (including as a result of planned or unexpected power outages);
changes in environmental, tax and other laws and regulations;
adverse changes in the markets for our products;
the emergence of new technologies and changes in consumer trends including increased preferences for digital media;
consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed;
adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems;
the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructuring or strategic initiatives (including our announced dissolving wood pulp conversion projects), and achieving expected savings and synergies; and
currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
Issued by
Brunswick
on behalf of Sappi Limited
Tel + 27 (0) 11 502 7300
For further information
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.oberholzer@sappi.com
Graeme Wild
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 320 8624
Graeme.wild@sappi.com
Sappi results for 2nd quarter ended March 2013 reflect mixed markets
PR NewswirePress Release: Sappi Limited – Thu, May 9, 2013 2:34 AM EDTEmail0Share0PrintRELATED QUOTESSymbol Price Change
SPP 2.69 0.04
JOHANNESBURG, May 9, 2013 /PRNewswire/ --
Summary for the quarter
European business impacted by lower prices and higher pulp costs
Specialised Cellulose projects on track, major shuts completed
Profit for the period US$7 million (Q2 2012 US$58 million)
EPS 1 US cent (Q2 2012 11 US cents)
Operating profit excluding special items US$40 million (Q2 2012 US$125 million)
Net finance costs US$40 million (Q2 2012 US$51 million)
Net debt US$2,152 million (Q2 2012 US$2,133 million)
(Logo: http://photos.prnewswire.com/prnh/20110728/MM43821LOGO )
Commenting on the result, Sappi (NYSE: SPP, JSE: SAP) Chief Executive Officer Ralph Boettger said:
"The Specialised Cellulose and North American businesses continue to perform well and the investments in the conversions at the Ngodwana and Cloquet Mills have progressed according to plan. Dissolving wood pulp production is scheduled to start at these two mills during the 3rd quarter. As indicated in the previous quarter, we expected operating profit for the second quarter to be lower than that of the first quarter. The actual performance was weaker than expected however, due to weaker European market conditions and an inability to implement any meaningful coated graphic paper price increases in Europe during the past quarter. This led to a weak overall group performance.
"Looking forward, market conditions for our paper businesses, particularly in Europe are expected to continue to be weaker than previously envisaged. The price increases in Europe, to date, have not been sufficient to restore margins given rising input costs. Despite the interventions and major cost reductions that have taken place, we expect the European business to only achieve a breakeven operating profit excluding special items for the full year. This performance necessitates further action and we are evaluating a number of options that could result in capacity and cost reductions in our European business. Further measures are also being implemented in the Southern African business. The Specialised Cellulose and North American businesses are expected to continue to perform according to plan.
"Notwithstanding the weak European performance, and the impact of the commissioning and start-up of the two major dissolving wood pulp projects, we believe that the group will at worst breakeven at the net profit excluding special items level for the full year. We expect net debt to peak at approximately US$2.4 billion in the third quarter and thereafter to decrease to approximately US$2.2 billion by the end of the financial year.
"Despite the generally tough market conditions and the once-off impact of our major transitionary projects on the current year's performance, our actions and investments will position the group well for improved performance from 2014 onwards."
Quarter ended
Half-year ended
Mar
2013
Mar
2012
Dec
2012
Mar
2013
Mar
2012
Key figures: (US$ million)
Sales
1,503
1,633
1,475
2,978
3,218
Operating profit
78
120
70
148
227
Special items – (gains) losses*
(38)
5
3
(35)
(2)
Operating profit excluding special items*
40
125
73
113
225
EBITDA excluding special items*
128
217
162
290
411
Profit for the period
7
58
17
24
103
Basic earnings per share (US cents)
1
11
3
5
20
Net debt *
2,152
2,133
2,095
2,152
2,133
Key ratios (%)
Operating profit to sales
5.2
7.4
4.8
5.0
7.1
Operating profit excluding special items to
sales
2.7
7.7
5.0
3.8
7.0
Operating profit excluding special items to
capital employed (ROCE)
4.4
13.4
8.2
6.4
12.2
EBITDA excluding special items to sales
8.5
13.3
11.0
9.7
12.8
Return on average equity (ROE)*
1.9
14.7
4.5
3.2
13.2
Net debt to total capitalisation*
59.9
56.5
58.1
59.9
56.5
Net asset value per share (US cents)
277
315
290
277
315
*
Refer to the published results for details on special items, the definition of the terms and the reconciliation of EBITDA
excluding special items to profit/loss for the period.
The table above has not been audited or reviewed.
The quarter under review
Operating profit excluding special items of US$40 million was adversely impacted by the weak performance of the European business. This compares to an operating profit excluding special items of US$125 million in the equivalent quarter last year and US$73 million in the quarter ended December 2012.
In the North American business strong paper sales volumes offset weaker paper sales prices as well as the decline in paper pulp sales due to preparations at the Cloquet Mill for the pulp mill conversion from paper pulp to dissolving wood pulp. Coated paper sales volumes increased 6% over the equivalent quarter last year and were 2% higher than the prior quarter; prices were however, lower in a competitive market.
While the Southern African business performed reasonably well, it was as expected, negatively impacted by the planned extended shut at the Ngodwana Mill as a result of the conversion of the pulp mill to dissolving wood pulp as well as the relatively weak local demand for paper products. Special items for the quarter included a plantation price fair value adjustment of US$96 million (R863 million) largely as a result of the revaluation of the softwood plantation assets that previously supplied the Ngodwana softwood pulp line. As a result of the conversion of the pulp mill to hardwood dissolving wood pulp, this softwood resource is now available to sell as saw logs which earn a price premium to pulp logs. Various assets at the Tugela and Stanger Mills were impaired and a charge of US$52 million (R454 million) was booked in the quarter. These charges relate to the ongoing optimisation process in the Southern African paper and paper packaging business.
Dissolving wood pulp sales volumes from the Saiccor Mill remain limited only by our production capacity. Rising NBSK pulp prices, to which our dissolving wood pulp sales are linked, and a weaker Rand exchange rate contributed to the strong performance of Saiccor, which generated R472 million in EBITDA excluding special items and an EBITDA excluding special items margin of 34%.
Market conditions for our graphic paper products remained challenging, particularly in Europe where we experienced further deterioration across all graphic paper grades. Paper volumes and prices in this business were lower, whilst input costs were higher compared to the corresponding quarter last year. We were unable to fully implement the January price increases during the quarter.
Net finance costs for the quarter of US$40 million are US$11 million below that of the equivalent quarter last year as a result of the refinancing of higher cost debt in the past year.
Net cash utilised for the quarter was US$99 million, compared to net cash generation of US$91 million in the equivalent quarter last year. This cash utilisation was mainly as a result of lower profits from operations and capital expenditure which increased to US$179 million during the quarter from the US$59 million in the equivalent quarter last year. This increased capital expenditure relates primarily to the strategic investments in expanding our dissolving wood pulp capacity.
Liquidity remains strong with cash on hand of US$398 million and US$509 million available from the undrawn committed revolving credit facilities in Europe and South Africa.
Outlook
Market conditions for our paper businesses, particularly in Europe are expected to be weaker than previously envisaged. Demand and pricing remain under pressure and input costs, particularly pulp, are likely to remain high. The announced January price increases for coated woodfree paper were only marginally successful, and further price increases were announced during the quarter for implementation in April. These increases, to date, have not been sufficient to restore margins given rising input costs. Despite the interventions and major cost reductions that have taken place, we expect the European business to only achieve a breakeven operating profit excluding special items for the full year.
The Ngodwana and Cloquet Mills both successfully completed their major shuts relating to the Specialised Cellulose expansion projects during March and April. Dissolving wood pulp production is expected to commence at both plants before the end of June, with paper pulp being produced for internal use in the interim.
The full results announcement is available at www.sappi.com
There will be a conference call to which investors are invited. Full details are available at www.sappi.com using the links Investor Info; Investor Calendar; 2Q13 Financial Results
Forward-looking statements
Certain statements in this release that are neither reported financial results nor other historical information, are forward-looking statements, including but not limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. The words "believe", "anticipate", "expect", "intend", "estimate", "plan", "assume", "positioned", "will", "may", "should", "risk" and other similar expressions, which are predictions of or indicate future events and future trends, which do not relate to historical matters, identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are in some cases beyond our control and may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements (and from past results, performance or achievements). Certain factors that may cause such differences include but are not limited to:
the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production, input costs including raw material, energy and employee costs, and pricing);
the impact on our business of the global economic downturn;
unanticipated production disruptions (including as a result of planned or unexpected power outages);
changes in environmental, tax and other laws and regulations;
adverse changes in the markets for our products;
the emergence of new technologies and changes in consumer trends including increased preferences for digital media;
consequences of our leverage, including as a result of adverse changes in credit markets that affect our ability to raise capital when needed;
adverse changes in the political situation and economy in the countries in which we operate or the effect of governmental efforts to address present or future economic or social problems;
the impact of restructurings, investments, acquisitions, dispositions and other strategic initiatives (including related financing), any delays, unexpected costs or other problems experienced in connection with dispositions or with integrating acquisitions or implementing restructuring or strategic initiatives (including our announced dissolving wood pulp conversion projects), and achieving expected savings and synergies; and
currency fluctuations.
We undertake no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.
Issued by
Brunswick
on behalf of Sappi Limited
Tel + 27 (0) 11 502 7300
For further information
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.oberholzer@sappi.com
Graeme Wild
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 320 8624
Graeme.wild@sappi.com
Lakes Entertainment Announces Results for First Quarter 2013
Business WirePress Release: Lakes Entertainment, Inc. – Thu, May 9, 2013 6:30 AM EDTEmail0Share0PrintRELATED QUOTESSymbol Price Change
LACO 3.30 0.02
MINNEAPOLIS--(BUSINESS WIRE)--
Lakes Entertainment, Inc. (LACO) today announced results for the three months ended March 31, 2013.
First Quarter Results
Net loss for the first quarter of 2013 was $0.3 million, compared to net earnings of $1.8 million in the first quarter of 2012. Loss from operations was $1.9 million for the first quarter of 2013 compared to $1.6 million for the first quarter of 2012. Basic and diluted losses were $0.01 per share for the first quarter of 2013 compared to earnings of $0.07 per share for the first quarter of 2012.
Lakes Entertainment reported first quarter 2013 revenues of $3.3 million, compared to prior-year first quarter revenues of $2.0 million. The increase in revenues was due to an additional $0.8 million in management fees earned during the first quarter of 2013 compared to the first quarter of 2012 related to the Red Hawk Casino, owned by the Shingle Spring Band of Miwok Indians, near Sacramento, California. Also contributing to the increase was the addition of $0.6 million in revenue related to the operation of the Rocky Gap Lodge and Golf Resort near Cumberland, Maryland (“Rocky Gap”), which Lakes acquired on August 3, 2012.
During the first quarter of 2013, property operating expenses for Rocky Gap, which primarily related to rooms, food and beverage and golf were $0.6 million. Rocky Gap was acquired on August 3, 2012, therefore, there were no such expenses for the first quarter of 2012.
For the first quarter of 2013, selling, general and administrative expenses were $3.8 million compared to $2.3 million in the first quarter of 2012. Included in these amounts were Lakes corporate selling, general and administrative expenses of $2.0 million during each of the first quarters of 2013 and 2012 and Rocky Gap selling, general and administrative expenses of $1.8 million during the first quarter of 2013.
Rocky Gap is currently undergoing renovation of existing convention center space and upon completion will feature a gaming facility that will include approximately 550 video lottery terminals, 10 table games, a casino bar and a new lobby food and beverage outlet. A new event center is being constructed which will be able to accommodate large groups and will feature multiple flexible use meeting rooms. The gaming facility is expected to open in late May 2013 and the event center is expected to be available for use in the fourth quarter of 2013. Lakes expenses certain project preopening costs as incurred. During the first quarter of 2013, Lakes recognized preopening expenses of $0.3 million related to the Rocky Gap project. There were no preopening expenses during the first quarter of 2012.
There were no impairments and other losses during the first quarter of 2013. Lakes recognized impairments and other losses of $0.9 million during the first quarter of 2012 which were the result of the March 2012 determination that Lakes would not continue to move forward with the casino project with the Jamul Indian Village (“Jamul Tribe”) and the termination of its agreement with the Jamul Tribe.
Amortization of intangible assets related to the operating casinos was $0.3 million for each of the first quarters of 2013 and 2012.
Other income, net, was $1.5 million for the first quarter of 2013 compared to $1.3 million for the first quarter of 2012, a significant portion of which relates to non-cash accretion of interest on the Company’s notes receivable.
There was no income tax benefit for the first quarter of 2013 because the Company has utilized all carry back potential. The income tax benefit for the first quarter of 2012 was $2.0 million and resulted from the Company’s ability to carry back its taxable losses to a prior year and receive a refund of taxes previously paid.
Tim Cope, President and Chief Financial Officer of Lakes stated, “We continue to move forward with the renovation of our AAA Four Diamond Award® winning Rocky Gap Lodge and Golf Resort near Cumberland, Maryland which has now been renamed the Rocky Gap Casino Resort. We are looking forward to a successful MLGCA controlled demonstration of gaming on the 20th of this month, which will allow us to officially open for gaming shortly thereafter. In addition, we recently began construction of an event center at Rocky Gap which we expect to open during the fourth quarter of this year.” Mr. Cope continued, “Management fees from the Red Hawk Casino were up again this quarter over the prior year first quarter due to continued improvements in results at this property. We continue to work closely with Red Hawk’s executive team, as well as the Shingle Springs Tribal Gaming Authority, to manage this property as efficiently as possible.”
Further commenting, Lyle Berman, Chief Executive Officer of Lakes stated, “We look forward to the opening of the gaming facility at our company-owned Rocky Gap Casino Resort where we will focus on providing an outstanding guest service experience along with a superior gaming product to all of our guests. We continue to maintain a 10% ownership interest in Rock Ohio Ventures, LLC’s 80% ownership in the open and operating Horseshoe Casino Cleveland, the Horseshoe Casino Cincinnati, and the Thistledown Racino in North Randall, Ohio.” Mr. Berman continued, “We will continue to focus on operating our business as effectively as possible while we consider new investments in order to increase shareholder value.”
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland. Lakes has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has an investment in Rock Ohio Ventures, LLC’s casino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, 2013 December 30, 2012
Assets
Current assets:
Cash and cash equivalents $ 23,369 $ 32,480
Income taxes receivable 2,179 2,161
Other 2,541 1,255
Total current assets 28,089 35,896
Property and equipment, net 21,276 13,279
Long-term assets related to Indian casino projects:
Notes and interest receivable, net of current portion and allowance 39,503 38,247
Intangible assets 2,863 3,127
Management fees receivable and other 3,680 4,786
Total long-term assets related to Indian casino projects 46,046 46,160
Other assets:
Investment in unconsolidated investee 20,997 20,161
License fee 2,100 2,100
Land held for development 1,130 1,130
Other 983 996
Total other assets 25,210 24,387
Total assets $ 120,621 $ 119,722
Liabilities and shareholders' equity
Current liabilities:
Current portion of contract acquisition costs payable, net $ 1,324 $ 1,265
Other 4,384 2,978
Total current liabilities 5,708 4,243
Long-term contract acquisition costs payable, net 2,948 3,302
Total liabilities 8,656 7,545
Total shareholders' equity 111,965 112,177
Total liabilities and shareholders' equity $ 120,621 $ 119,722
LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended
March 31, 2013 April 1, 2012
Revenues:
Management fees $ 2,728 $ 1,943
Room 264 -
Food and beverage 198 -
Other operating 97 -
License fees and other 17 20
Total revenues 3,304 1,963
Costs and expenses:
Room 111 -
Food and beverage 303 -
Other operating 215 -
Selling, general and administrative 3,767 2,303
Impairments and other losses - 929
Preopening expenses 265 -
Amortization of intangible assets related to operating casinos 264 264
Depreciation and amortization 257 54
Total costs and expenses 5,182 3,550
Loss from operations (1,878 ) (1,587 )
Other income (expense):
Interest income 1,753 1,583
Interest expense (208 ) (252 )
Other - 14
Total other income, net 1,545 1,345
Loss before income taxes (333 ) (242 )
Income tax benefit - (1,997 )
Net earnings (loss) including noncontrolling interest (333 ) 1,755
Net loss attributable to noncontrolling interest - 60
Net earnings (loss) attributable to Lakes Entertainment, Inc. $ (333 ) $ 1,815
Weighted-average common shares outstanding
Basic 26,441 26,431
Diluted 26,441 26,431
Earnings (loss) per share
Basic $ (0.01 ) $ 0.07
Diluted $ (0.01 ) $ 0.07
Contact:
Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030
Entertainment Gaming Asia Reports First Quarter 2013 Results and Provides Market Update
Business WirePress Release: Entertainment Gaming Asia Inc. – 5 hours agoEmail0Share0PrintRELATED QUOTESSymbol Price Change
EGT 1.93 -0.08
Entertainment Gaming Asia Inc. (EGT) (“Entertainment Gaming Asia” or “the Company”), a leading gaming company focused on emerging gaming markets in Pan-Asia, today reported operating results for the first quarter ended March 31, 2013 and reviewed recent corporate progress.
Highlights:
Total consolidated revenue of $6.7 million for the first quarter of 2013
Total revenue from gaming operations of $5.3 million for the first quarter of 2013
Average consolidated win per unit per day (WUD) for the slot operations of $139 for the first quarter of 2013
Dreamworld Pailin, the Company’s first casino development project which opened in May 2012, contributed $1.1 million to gaming revenue for the first quarter of 2013
Gaming chips and plaques sales of $1.4 million for the first quarter of 2013
Adjusted EBITDA (earnings from continuing operations before interest, taxes, depreciation, amortization and non-cash charges) of $1.9 million for the first quarter of 2013
Cash balance of $4.5 million as of March 31, 2013
Zero debt as of March 31, 2013
Company is preparing to implement a junket program intended to increase premium and VIP player traffic at Dreamworld Pailin
Grand opening of Dreamworld Poipet, a slot hall developed by the Company in an established gaming market near the Thailand border, held on May 9, 2013
Successful divestiture of the legacy non-gaming products business
New Dolphin gaming chips and plaques manufacturing plant in Hong Kong is operational with attractive near-term order pipeline
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “Our consolidated revenue was up 22% for the first quarter of 2013 compared to the prior year period driven by significantly higher sales of gaming chips and plaques and incremental revenue from Dreamworld Pailin.
“Our gaming chips and plaques benefited from strong reorder flow due to our growing customer base. We incurred high labor costs in Australia for these operations during the quarter as we accelerated the fulfillment of existing orders to expedite the relocation of the manufacturing plant from Australia to Hong Kong to accommodate our near-term order pipeline of over $1.0 million. Dreamworld Pailin contributed $1.1 million revenue in the quarter. While Dreamworld Pailin revenue was down slightly from the prior sequential quarter, we continue to refine our marketing programs and believe that we are making progress toward improving the quality of the player base.
“Top-line gains were partially offset by lower slot revenue, primarily from our operations at Nagaworld, compared to the prior year period due to lower player traffic as a result of both the subdued atmosphere during the mourning period for the deceased King of Cambodia and the NagaWorld employee strike. Average net wins for these operations declined to $217 per machine for the quarter. However, net wins for our operations at NagaWorld have since climbed to $276 per machine for the month of April 2013.
“We made great progress during the first quarter and to-date in further refining our business operations. We sold a non-core legacy business, opened our new Dreamworld Poipet property, took steps to implement our junket program to further increase high-quality player traffic at Dreamworld Pailin and completed the relocation of our gaming chips and plaques operations to a high-security, lower-cost plant in Hong Kong.
“With solid recurring cash flow anticipated from our business divisions and planned capital expenditures largely concentrated early in the year, we are focused on building our resources in preparation for new potential growth opportunities.”
Q1 2013 Financial Review
The Company effected a 1:4 reverse stock split of its common shares on June 12, 2012. All historical share amounts and share information presented have been proportionally adjusted to reflect the impact of this reverse stock split, including basic and diluted weighted-average shares and shares issued and outstanding.
On March 28, 2013, the Company sold the portion of its subsidiary Dolphin Products Pty Limited business dedicated to the manufacture and sale of non-gaming plastic products, mainly automotive parts. All historical revenues and expenses associated with its non-gaming plastic products operations for the periods presented have been reclassified as discontinued operations. Revenues of these non-gaming products and gaming chips and plaques were previously consolidated under the reporting segment “Other Products.” After the sale, the Company renamed “Other Products” as “Gaming Products,” which comprises its gaming chips and plaques operations.
Entertainment Gaming Asia’s first quarter of 2013 consolidated revenue was $6.7 million, an increase of 22% compared to $5.5 million in the first quarter of 2012. The increase was due to improvements in both of the Company’s gaming operations and gaming products business divisions.
Revenue from gaming operations, which included slot and casino operations, was $5.3 million in the first quarter of 2013, an increase of 6% compared to $5.0 million in the first quarter of 2012. The increase was attributed to incremental revenue from Dreamworld Pailin and the Company’s slot operations in Thansur Bokor, both of which officially opened in May 2012, partially offset by lower revenue from slot operations.
The Company recorded $4.2 million in revenue for its slot operations in the first quarter of 2013, a decrease of 16% compared to $5.0 million in the first quarter of 2012. The decrease was primarily a result of lower average WUD from the Company’s operations at NagaWord and lower revenue for its slot operations in the Philippines. Average WUD for the Company’s operations in NagaWorld were $217 in the first quarter of 2013 compared to $260 in the prior year period. The decline was due to normal fluctuations and lower player traffic levels in February 2013 as a result of the second observed week-long mourning period for Cambodia’s King, which occurred at the beginning of the month and the strike by NagaWorld workers for a couple of days, which occurred at the end of the month. In the Philippines, while revenue declined in the quarter due to a lower machine base, the Company’s WUD improved significantly as the Company increased returns on existing assets.
Slot Operations
Net Revenue to EGT (in millions)
Q1:13
Q1:12
Y/Y ?
Cambodia (1) $3.3 $3.9 -15%
Philippines $0.9 $1.1 -18%
Consolidated $4.2 $5.0 -16%
WUD (2)
Q1:13
Q1:12
Y/Y ?
Cambodia (1) $176 $239 -26%
Philippines $86 $73 18%
Consolidated $139 $154 -10%
EGM Seats in Operation
3/31/13
3/31/12
Y/Y ?
Cambodia (1) 1,008 799 26%
Philippines 573 761 -25%
Consolidated 1,581 1,560 1%
(1) Includes slot revenue from Dreamworld Poipet, which operates under a machine operation and participation agreement. Dreamworld Poipet soft opened on March 28, 2013 with 166 EGM seats and grand opened on May 9, 2013 with approximately 300 EGM seats.
(2) Represents WUD for the Company’s slot machine operations. It excludes EGM seats in operation during venue soft launch opening periods, if applicable, and applies revenue recognized on a cash basis in the calculation of WUD for venues for which revenues are recognized on a cash basis. During the first quarter of 2013, one venue in Cambodia operated during a soft launch. During the first quarter of 2012, one venue in Cambodia operated during a soft launch and one venue in the Philippines recognized revenue on a cash basis. There were no material differences to average WUD figures for these periods had these seats been included in the WUD calculations.
Casino operations, which comprised Dreamworld Pailin, contributed $1.1 million to total gaming revenue in the first quarter of 2013. This was a slight decline from $1.2 million in the fourth quarter of 2012 due to the refinement of marketing strategies during the first quarter of 2013, which resulted in the Company utilizing fewer promoters during the period.
Revenue from gaming products, which comprised the manufacture and sale of gaming chips and plaques, was $1.4 million in the first quarter of 2013, up substantially from $532,000 in the first quarter of 2012. The increase was due to higher reorders from existing customers as the Company benefited from its growing customer base. However, higher non-recurring labor costs resulted in a gross loss for these operations during the first quarter of 2013. The higher labor costs were primarily a result of increased overtime by the Australian workers due to the expedited fulfillment of orders as the Company fast-tracked the relocation of the plant from Australia to Hong Kong as well as their absenteeism following the announcement of the relocation of the gaming products business and their severance.
Entertainment Gaming Asia reported adjusted EBITDA of $1.9 million in the first quarter of 2013 compared to $3.1 million in the prior year period. The decrease in adjusted EBITDA for the first quarter of 2013 was primarily the result of: lower revenue from the Company’s slot operations; higher gaming division costs primarily due to its casino operations, which had operating expenses of approximately $1.3 million; and higher non-recurring labor costs for the gaming products division compared to the prior year period.
The Company reported a net loss from continuing operations of $329,000, or $0.01 per share, on a weighted average diluted share count of approximately 30.0 million in the first quarter of 2013. This compared to net income from continuing operations of $881,000, or $0.03 per share, on a weighted average diluted share count of approximately 30.2 million for the first quarter of 2012.
The Company reported a net loss of $2.5 million, or $0.08 per share, for the first quarter of 2013. This included a net loss from discontinued operations, net of tax, of $2.2 million related to the sale of the Company’s non-gaming products operations on March 28, 2013. The net loss from discontinued operations included $1.3 million in cash restructuring costs, which included severance, relocation charges and contract termination fees, and approximately $962,000 in non-cash charges for the loss on disposal of assets primarily related non-gaming equipment and inventory. This compared to net income of $972,000, or $0.03 per share, for the first quarter of 2012, which included net income from discontinued operations, net of tax, of $91,000.
Dolphin Gaming Chips and Plaques Provide Attractive Growth Potential
The Company completed the relocation of its manufacturing facilities for Dolphin gaming chips and plaques from Australia to Hong Kong and began commercial operations of the new plant in early May 2013. This high-security facility is located in the Shatin district of Hong Kong and also serves as the Company’s new corporate headquarters.
The Company expedited the move in order to accommodate its near-term order pipeline. With confirmed re-orders for over $1.0 million in revenue from existing customers, the new plant will be working double shifts for the next several months to fulfill these orders. The Company is also evaluating opportunities to expand its product offerings to include other gaming products, such as chip trays, playing cards and dice. Adding to the product mix further deepens the Company’s existing customer relationships and increases its marketability to new customers. Further, given the operation’s proximity to low-cost manufacturing countries, the production of certain non-security items could be outsourced with attractive margin potential for the Company.
With expected significant labor cost savings (average hourly casual labor rate in Australia is approximately $20 compared to $5 in Hong Kong), production efficiencies and the ability to consolidate certain support functions as a result of the relocation, the Company expects to achieve meaningful improvements in profitability for this division. This combined with the opportunities to improve revenues by expanding the customer base and adding new products, provide the potential to make the Company’s gaming products division a meaningful contributor to earnings.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, added, “The restructuring and relocation of our Dolphin operations is the last step in our plans to re-strategize our legacy businesses and it has been successfully completed. We are excited about the potential of our gaming products division. With a strong existing customer base and relationships, a comprehensive suite of products and high-security production facilities located in the heart of the growing Asian gaming markets, we believe that we have all the right and necessary elements to best serve our target markets and are poised to benefit from the major casino development anticipated over the next several years in Asia.”
Dreamworld Pailin Focuses on Improving Player Quality
In May 2012, the Company opened its first casino development project, Dreamworld Pailin. Dreamworld Pailin is located in an emerging gaming market at the Cambodia-Thailand border on a growing trade route connecting the two countries. It houses 26 popular table games such as baccarat and dice games and an attractive suite of 52 EGM seats.
The Company is focused on improving the financial performance of Dreamworld Pailin and continues its efforts to refine and broaden its marketing strategies to attract higher quality players and, where possible, identify and implement cost reduction initiatives.
To-date, the Company’s marketing initiatives have included, but have not been limited to, the use of fixed fee promoters, such as bus programs. These programs have been helpful in increasing mass market player traffic. In addition, the Company is preparing to launch its junket program and is in the final due diligence stage of signing agreements with potential operators. By utilizing junket operators, the Company expects to improve high net worth player traffic for its premium and VIP facilities while minimizing the downside risk and volatility as the junket operators typically share in wins and losses and assume the credit risk.
Dreamworld Poipet Opens
The Company held the grand opening for Dreamworld Poipet, a slot hall developed by the Company in the established gaming market of Poipet at the Cambodia-Thailand border, on May 9, 2013. This $7.5 million project, which the Company exclusively operates as a stand-alone extension to an existing casino owned by a local Cambodian company, houses approximately 300 premium quality EGM seats. It has been operating under a soft open since March 28, 2013.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, concluded, “Our efforts over the last several years have improved our ability to generate quality recurring cash flow from continuing operations. This has allowed us to invest in and grow our operations and pay down all of our debt.
“We are a stronger company today and we look to the future with a focus on growing our existing businesses and building our resources as we actively seek new growth opportunities in the high-growth economies of Indo-China.
“We are positioning ourselves for larger projects that would add meaningful scale to our operations. In addition to expanding our market presence, we believe larger projects will allow us to better leverage operating costs and provide the opportunity for higher net returns for shareholders.”
Entertainment Gaming Asia is hosting a conference call and simultaneous webcast at 8:30 a.m. ET today, May 10, 2013, both of which are open to the general public. The conference call number is 800/732-5617 or 212/231-2933. Questions and answers will be reserved for call-in analysts and investors. Interested parties may also access the live call on the Internet at www.EGT-Group.com. Please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the call can be accessed for thirty days on the Internet at www.EGT-Group.com
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (EGT) is a leading gaming company in Pan-Asia engaged in the development and operation of casinos and gaming venues in the Indo-China region under its “Dreamworld” brand as well as the leasing of electronic gaming machines on a revenue sharing basis to the gaming industry. The Company also manufactures and sells RFID and traditional gaming chips and plaques to major casinos under its “Dolphin” brand. For more information please visit www.EGT-Group.com.
Forward Looking Statements
This press release contains forward-looking statements concerning Entertainment Gaming Asia within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the Company’s slot operations business model, the earnings of the Pailin and Poipet gaming projects, growth of the gaming industry in Asia, the Company’s ability to secure new casino and gaming projects and fund those projects, expectations for the Company’s gaming chips and plaques operations, the expected benefits from the relocation of the gaming chips and plaques operations to Hong Kong, the ability to expand its table game product offerings and the prospects for the expanded customer base for the Company’s gaming chips and plaques. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to the Company’s ability to place gaming machines at significant levels and generate the expected amount of net win from the gaming machines placed, obtain the gaming license and building permits for gaming development projects on a timely basis or at all, complete construction and development of the casino and gaming projects on budget and in a timely manner, identify and implement successful marketing and promotional strategies at each of the Company’s casino projects and identify and successfully develop additional projects in the Indo-China region, acquire additional capital as and when needed, adverse weather conditions that cause delays to casino and gaming projects timelines, ability to obtain the needed approval by certain customers from local gaming authorities to continue their purchase of gaming chips and plaques from the Hong Kong facility on a timely basis or at all, identify and implement successful marketing and promotional strategies and obtain and fulfill significant purchase orders from the customers for the Company’s gaming chips and plaques and those other risks set forth in the Company’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 28, 2013 and subsequently filed quarterly reports on Form 10-Q. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Entertainment Gaming Asia Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
March 31,
(amounts in thousands, except per share data) 2013 2012
Revenues:
Gaming operations, gross $ 5,274 $ 4,956
Less: promotional allowances — —
Gaming operations, net 5,274 4,956
Gaming products 1,427 532
Total revenues 6,701 5,488
Operating costs and expenses:
Cost of gaming operations:
Gaming equipment depreciation 1,142 1,109
Casino contract amortization 620 615
Other gaming related intangibles amortization 63 63
Other operating costs 1,760 524
Cost of gaming products 1,496 421
Selling, general and administrative expenses 1,864 1,850
Gain on disposition of assets — (12)
Product development expenses 120 100
Depreciation and amortization 30 31
Total operating costs and expenses 7,095 4,701
(Loss)/income from operations (394) 787
Other income/(expense):
Interest expense and finance fees (4) (53)
Interest income 4 12
Foreign currency gains 103 189
Other 3 —
Total other income 106 148
(Loss)/income before income tax expense and discontinued operations (288) 935
Income tax expense (41) (54)
Net (loss)/income from continuing operations
(329) 881
Net (loss)/income from discontinued operations, net of tax (2,178) 91
Net (loss)/ income $ (2,507) $ 972
Basic and diluted earnings per share:
(Loss)/earnings from continuing operations $ (0.01) $ 0.03
(Loss)/earnings from discontinued operations, net of tax $ (0.07) $ —
(Loss)/earnings $ (0.08) $ 0.03
Weighted average common shares outstanding
Basic 30,024 29,900
Diluted 30,024 30,190
Entertainment Gaming Asia Inc.
Consolidated Balance Sheets
March 31, December 31,
2013 2012
(amounts in thousands, except per share data) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 4,485 $ 10,365
Accounts receivable, net 566 1,841
Other receivables 1,652 112
Inventories 769 2,047
Prepaid expenses and other current assets 326 387
Total current assets 7,789 14,752
Gaming equipment, net 10,901 9,724
Casino contracts 7,372 7,982
Property and equipment, net 7,937 6,170
Goodwill 382 380
Intangible assets, net 1,184 1,253
Contract amendment fees 315 342
Deferred tax assets — 201
Prepaids, deposits and other assets 2,546 2,914
Total assets $ 38,435 $ 43,718
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,487 $ 3,636
Accrued expenses 2,438 2,619
Income tax payable 8 —
Customer deposits and other current liabilities 178 656
Total current liabilities 4,111 6,911
Other liabilities 729 1,078
Deferred tax liability 137 137
Total liabilities 4,977 8,126
Stockholders’ equity:
Common stock, $.001 par value, 75,000,000 shares authorized; 30,024,662 and 29,974,662 shares issued and outstanding, respectively 30 30
Additional paid-in-capital 32,614 32,224
Accumulated other comprehensive income 912 929
Retained (losses)/earnings since January 1, 2011 ($386.1 million accumulated deficit eliminated upon quasi-reorganization) (99) 2,408
Total EGT stockholders’ equity 33,457 35,591
Non-controlling interest 1 1
Total stockholders’ equity 33,458 35,592
Total liabilities and stockholders’ equity $ 38,435 $ 43,718
Entertainment Gaming Asia Inc.
Adjusted EBITDA from Continuing Operations
(Unaudited)
Three-Months Ended
March 31,
(amounts in thousands) 2013 2012
Net (loss)/income from continuing operations – GAAP
$ (329) $ 881
Interest expense 4 53
Interest income (4) (12)
Income tax expense 41 54
Depreciation and amortization 1,902 1,835
Stock-based compensation expense 247 265
Gain on disposition of assets — (12)
EBITDA, as adjusted from continuing operations
$ 1,861 $ 3,064
Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other non-cash operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its operations with those of its competitors. The Company also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with generally accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income/(loss), Adjusted EBITDA does not include depreciation or interest expense and, therefore, does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income, net income/(loss), cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Entertainment Gaming Asia’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
Contact:
Entertainment Gaming Asia Inc.
Traci Mangini, 312-867-0848
tracimangini@EGT-Group.com
WisdomTree Announces First Quarter 2013 Results
Press Release: WisdomTree Investments, Inc. – Fri, Apr 26, 2013
+0.02
Record $5.9 Billion Net Inflows, 10.8% Market Share
Record Revenues, Up 53% From Year Ago Quarter
Record Net Income $7.9 Million, Up 50% From Prior Quarter, Up Seven Times From Year Ago Quarter
Diluted EPS $0.06
NEW YORK, April 26, 2013 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today reported net income of $7.9 million for the first quarter of 2013, or $0.06 per share on a fully diluted basis. This compares to $1.1 million, or $0.01 per share on a fully diluted basis, in the first quarter of 2012 and $5.3 million, or $0.04 per share on a fully diluted basis, in the fourth quarter of 2012.
WisdomTree CEO and President Jonathan Steinberg commented, "WisdomTree's net inflows of $5.9 billion represented our best quarter yet and fueled a meaningful acceleration in our organic growth in 2013. The drivers behind this strong top-line growth underscore two important points: First, WisdomTree is innovating and executing at the highest levels -- our currency hedged Japanese equity strategy led the entire ETF industry with $3.9 billion of net inflows in the first quarter. Second, we are seeing balanced growth across our platform in important asset classes. In fact, excluding Japan-related assets, we achieved our second best quarter with $1.9 billion in inflows across our dividend-weighted equity and fixed income strategies."
Mr. Steinberg continued, "Our scalable business model is driving strong top-line growth, expanding margins and earnings. At $27 billion in assets and the fifth largest U.S. ETF sponsor today, WisdomTree has reached an exciting point in our development."
Assets Under Management, Net Inflows and Market Share
ETF assets under management ("AUM") were $25.1 billion at March 31, 2013, up from $15.7 billion at March 31, 2012 and $18.3 billion at December 31, 2012. Net inflows for the first quarter of 2013 were $5.9 billion compared to $2.3 billion in the first quarter of 2012 and $1.1 billion in the fourth quarter of 2012. WisdomTree's market share of industry net inflows was 10.8% in the first quarter of 2013 as compared to 4.3% in the first quarter of 2012 and 1.9% in the fourth quarter of 2012.
Summary Operating and Financial Highlights
Three Months Ended
Change From
Mar. 31,
Dec. 31,
Mar. 31,
Dec. 31,
Mar. 31,
Operating Highlights (in billions):
2013
2012
2012
2012
2012
ETF AUM
$25.1
$18.3
$15.7
37.3%
60.0%
ETF net inflows
$5.9
$1.1
$2.3
456.5%
156.3%
Average ETF AUM
$21.9
$17.1
$14.3
28.5%
53.8%
Average ETF advisory fee
0.54%
0.54%
0.54%
--
--
Market share of industry inflows
10.8%
1.9%
4.3%
+8.9
+6.5
Financial Highlights (in millions):
Total revenues
$29.3
$23.6
$19.2
24.5%
53.1%
Net income
$7.9
$5.3
$1.1
49.5%
604.4%
Proforma operating income (non-GAAP)
$7.9
$5.1
$1.9
54.5%
323.9%
Gross margin1
72%
68%
63%
+4
+9
Pre-tax margin
27%
22%
6%
+5
+21
Proforma pre-tax margin
27%
22%
10%
+5
+17
1 Gross margin is defined as total revenues less fund management and administration expenses and third-party sharing arrangements.
Recent Business Developments
• On January 14, 2013, WisdomTree announced the WisdomTree Emerging Markets Equity Income Fund (DEM) Surpassed $5 Billion in Assets.
• On January 22, 2013, WisdomTree announced the WisdomTree Japan Hedged Equity Fund (DXJ) Surpassed $2 Billion in Assets.
• On January 23, 2013, WisdomTree announced the Company Surpassed $20 Billion in AUM.
• On January 31, 2013, WisdomTree announced the launch of the WisdomTree Global Corporate Bond Fund (GLCB).
• On March 15, 2013, WisdomTree announced the WisdomTree Japan Hedged Equity Fund (DXJ) Surpassed $5 Billion in Assets.
• On April 25, 2013, WisdomTree announced the WisdomTree Emerging Markets Corporate Bond Fund (EMCB) Received a National Association of Insurance Companies (NAIC) Designation.
Performance
77% of the $21.8 billion invested in our 34 equity ETFs on March 31, 2013 were in funds that, since their respective inceptions, outperformed their capitalization-weighted or competitive benchmarks through that date. 62%, or 21 of our 34 equity ETFs, outperformed their capitalization-weighted or competitive benchmarks since their respective inceptions through March 31, 2013. For more information about WisdomTree ETFs including standardized performance, please click here or visit www.wisdomtree.com.
First Quarter Financial Discussion
Revenues
Total revenues increased 53.1% to a record $29.3 million as compared to the first quarter of 2012 and 24.5% compared to the fourth quarter of 2012 primarily due to higher average AUM as a result of record $5.9 billion of net inflows into our ETFs. Our average advisory fee earned was unchanged at 0.54% as compared to the first and fourth quarters of 2012.
Margins
Our gross margin, which is our total revenues less fund management and administration expenses and third party sharing arrangements, was 72% in the first quarter of 2013 as compared to 63% in the first quarter of 2012 and 68% in the fourth quarter of 2012. The end of our joint venture with BNY Mellon and higher AUM were the primary drivers for the higher gross margin.
Our pre-tax margin was 27% in the first quarter of 2013 as compared to 6% in the first quarter of 2012 and 22% in the fourth quarter of 2012 reflecting the operating scale in our business model.
Expenses
Total expenses increased 19.0% to $21.5 million from $18.1 million in the first quarter of 2012 and increased 17.3% from $18.3 million in the fourth quarter of 2012. Included in the prior periods were non-operating items related to patent litigation, ETF shareholder proxy and secondary and initial exchange listing costs.
Three Months Ended
Change from
(in thousands)
Mar. 31,
Dec. 31,
Mar. 31,
Dec. 31,
Mar. 31,
2013
2012
2012
2012
2012
Total expenses
$21,487
$18,321
$18,055
17.3%
19.0%
Patent litigation, net
--
524
(672)
ETF shareholder proxy
--
--
(66)
Offering costs
--
(353)
--
Proforma operating expenses (non-GAAP)
$21,487
$18,492
$17,317
16.2%
24.1%
• Compensation and benefits expense increased 27.7% to $7.5 million compared to the first quarter of 2012. This increase was primarily due to higher accrued incentive compensation due to our record level of net inflows. Our headcount at the end of the first quarter of 2013 was 72 compared to 64 at the end of the first quarter of 2012.
Compensation and benefits expense increased 21.4% compared to the fourth quarter of 2012 primarily due to higher accrued incentive compensation, higher stock based compensation and payroll taxes.
• Fund management and administration expenses increased 51.2% to $8.2 million compared to the first quarter of 2012. At the end of 2012, we ended our joint venture with BNY Mellon. As a result, we began to record certain operating costs related to our currency and fixed income ETFs, which were previously recognized by BNY Mellon as part of the joint venture. This resulted in approximately $0.6 million in higher costs. Higher average AUM resulted in a $1.8 million increase in portfolio management, fund administration, accounting, index licensing, regulatory and distribution fees. We also incurred $0.3 million in higher printing related fees due to an increase in the number of holders of our ETFs.
Fund management and administration expenses increased 29.6% compared to the fourth quarter of 2012 primarily due to the end of the joint venture and higher average AUM.
• Marketing and advertising expenses increased 46.1% to $1.9 million compared to the first quarter of 2012 and increased 19.1% compared to the fourth quarter of 2012 primarily due to higher levels of advertising related activities to support our growth.
• Sales and business development expenses more than doubled to $1.8 million compared to the first quarter of 2012 and increased 71.0% compared to the fourth quarter of 2012 primarily due to higher levels of sales related initiatives and activities.
• Professional and consulting fees decreased 44.7% to $0.6 million compared to the first quarter of 2012 and decreased 22.2% compared to the fourth quarter of 2012 primarily due to lower variable stock based compensation, which ended as of the end of 2012, partly offset by higher corporate consulting and accounting related fees.
• Occupancy, communication and equipment expense increased 25.2% to $0.4 million compared to the first quarter of 2012. Beginning in the second quarter of 2012, we began occupying office space we had previously sub-leased to a third party. This expense was essentially unchanged compared to the fourth quarter of 2012.
• Third-party sharing arrangements expense declined 93.6% to $0.1 million compared to the first quarter of 2012 and declined 91.5% compared to the fourth quarter of 2012 due to the end of our joint venture with BNY Mellon discussed above.
• Other expenses increased 41.4% to $0.9 million compared to the first quarter of 2012 and increased 12.5% compared to the fourth quarter of 2012 primarily due to higher general and administrative expenses.
Balance Sheet
As of March 31, 2013, WisdomTree had total assets of $76.1 million which consisted primarily of cash and cash equivalents of $52.3 million and investments of $10.7 million. The Company has no debt. There were approximately 127.7 million shares of common stock issued as of March 31, 2013. Fully diluted weighted average shares outstanding were 139.7 million for the three months ended March 31, 2013.
Conference Call
WisdomTree will discuss its results and operational highlights during a conference call on Friday, April 26, 2013 at 9:00 a.m. ET. The call-in number will be (877) 303-7209. Anyone outside the U.S. or Canada should call (970) 315-0420. The slides used during the presentation will be available at http://ir.wisdomtree.com. For those unable to join the conference call at the scheduled time, an audio replay will be available on http://ir.wisdomtree.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
• anticipated trends, conditions and investor sentiment in the global markets;
• anticipated levels of inflows into and outflows out of our exchange traded funds;
• our ability to deliver favorable rates of return to investors;
• our ability to develop new products and services;
• our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
• competition in our business; and
• the effect of laws and regulations that apply to our business.
Our business is subject to many risks and uncertainties, including without limitation:
• We have only a limited operating history and, as a result, recent historical growth may not provide an accurate representation of the growth we may experience in the future, which may make it difficult to evaluate our future prospects.
• Challenging market conditions associated with declining prices of securities can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETF shareholders to sell their fund shares and trigger redemptions.
• Fluctuations in the amount and mix of our AUM may negatively impact revenue and operating margin.
• Most of our assets under management are held in ETFs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to currency exchange rate risks.
• We derive a substantial portion of our revenue from products invested in emerging markets and are exposed to the market-specific political and economic risks as well as general investor sentiment regarding future growth of those markets.
• We derive a substantial portion of our revenue from a limited number of products and, as a result, our operating results are particularly exposed to the performance of those funds, investor sentiment toward the strategies pursued by those funds and our ability to maintain the assets under management of those funds.
• The WisdomTree ETFs have a limited track record, and poor investment performance could cause our revenue to decline.
• We depend on other third parties to provide many critical services to operate our business and the WisdomTree ETFs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETF shareholders.
• We may from time to time in the future be, involved in legal proceedings that could require significant management time and attention, possibly resulting in significant expense or in an unfavorable outcome, which could have a material adverse effect on our business, financial conditions, results of operations and cash flows.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, please see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
About WisdomTree
WisdomTree Investments, Inc. is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 47 ETFs across Equities, Fixed Income, Currency Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $27.3 billion in ETF assets under management. For more information, please visit www.wisdomtree.com.
WisdomTree(R) is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree Retirement Services, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financial professionals.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three Months Ended
% Change From
Mar. 31,
Dec. 31,
Mar. 31,
Dec. 31,
Mar. 31,
2013
2012
2012
2012
2012
Revenues
ETF advisory fees
$ 29,153
$ 23,379
$ 18,975
24.7%
53.6%
Other income
188
195
195
-3.6%
-3.6%
Total revenues
29,341
23,574
19,170
24.5%
53.1%
Expenses
Compensation and benefits
7,482
6,165
5,857
21.4%
27.7%
Fund management and administration
8,223
6,343
5,439
29.6%
51.2%
Marketing and advertising
1,937
1,627
1,326
19.1%
46.1%
Sales and business development
1,801
1,053
860
71.0%
109.4%
Professional and consulting fees
613
788
1,109
-22.2%
-44.7%
Occupancy, communication and equipment
377
369
301
2.2%
25.2%
Depreciation and amortization
82
82
71
0.0%
15.5%
Third party sharing arrangements
111
1,300
1,745
-91.5%
-93.6%
Other
861
765
609
12.5%
41.4%
ETF shareholder proxy
--
--
66
n/a
n/a
Patent litigation, net
--
(524)
672
n/a
n/a
Offering costs
--
353
--
n/a
n/a
Total expenses
21,487
18,321
18,055
17.3%
19.0%
Income before provision for income taxes
7,854
5,253
1,115
49.5%
604.4%
Provision for income taxes
--
--
--
Net income
$ 7,854
$ 5,253
$ 1,115
49.5%
604.4%
Net income per share - basic
$ 0.06
$ 0.04
$ 0.01
Net income per share - diluted
$ 0.06
$ 0.04
$ 0.01
Weighted average common shares - basic
125,436
124,202
119,182
Weighted average common shares - diluted
139,650
138,417
137,400
WISDOMTREE INVESTMENTS, INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three Months Ended
Mar. 31,
Dec. 31,
Mar. 31,
2013
2012
2012
Revenues
ETF advisory fees
$ 29,153
$ 23,379
$ 18,975
Other income
188
195
195
Total revenues
29,341
23,574
19,170
Operating expenses
Compensation and benefits
7,482
6,165
5,857
Fund management and administration
8,223
6,343
5,439
Marketing and advertising
1,937
1,627
1,326
Sales and business development
1,801
1,053
860
Professional and consulting fees
613
788
1,109
Occupancy, communication and equipment
377
369
301
Depreciation and amortization
82
82
71
Third party sharing arrangements
111
1,300
1,745
Other
861
765
609
Total proforma operating expenses
21,487
18,492
17,317
Proforma operating income
7,854
5,082
1,853
ETF shareholder proxy
--
--
66
Patent litigation, net
--
(524)
672
Offering costs
--
353
--
Income before provision for income taxes
7,854
5,253
1,115
Provision for income taxes
--
--
--
Net income
$ 7,854
$ 5,253
$ 1,115
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amount)
March 31,
December 31,
2013
2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 52,297
$ 41,246
Accounts receivable
11,098
9,348
Other current assets
1,529
1,273
Total current assets
64,924
51,867
Fixed assets, net
408
480
Investments
10,668
11,036
Other noncurrent assets
53
42
Total assets
$ 76,053
$ 63,425
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Fund management and administration payable
$ 9,513
$ 6,924
Compensation and benefits payable
2,613
2,156
Accounts payable and other liabilities
2,800
3,272
Total current liabilities
14,926
12,352
Other noncurrent liabilities
--
13
Total liabilities
14,926
12,365
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 250,000 shares authorized:
issued: 127,667 and 126,554
1,276
1,265
outstanding: 125,628 and 125,272
Additional paid-in capital
180,028
177,826
Accumulated deficit
(120,177)
(128,031)
Total stockholders' equity
61,127
51,060
Total liabilities and stockholders' equity
$ 76,053
$ 63,425
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
March 31,
2013
2012
(Unaudited)
Cash flows from operating activities
Net income
$ 7,854
$ 1,115
Non-cash items included in net income:
Depreciation and amortization
82
71
Stock-based compensation
1,714
2,115
Deferred rent
(34)
(37)
Accretion to interest income and other
39
20
Changes in operating assets and liabilities:
Accounts receivable
(1,750)
(1,504)
Other assets
(256)
198
Fund management and administration payable
2,589
1,913
Compensation and benefits payable
457
(2,931)
Accounts payable and other liabilities
(451)
1,720
Net cash provided by operating activities
10,244
2,680
Cash flows from investing activities
Purchase of fixed assets
(10)
(56)
Purchase of investments
(1,314)
(3,549)
Proceeds from the redemption of investments
1,633
2,486
Net cash provided by/( used in) investing activities
309
(1,119)
Cash flows from financing activities
Net proceeds from sale of common stock
--
4,329
Shares repurchased
(249)
(995)
Proceeds from exercise of stock options
747
1,613
Net cash provided by financing activities
498
4,947
Net increase in cash and cash equivalents
11,051
6,508
Cash and cash equivalents - beginning of period
41,246
25,630
Cash and cash equivalents - end of period
$ 52,297
$ 32,138
Supplemental disclosure of cash flow information
Cash paid for income taxes
$ 34
$ 3
WisdomTree Investments, Inc.
Key Operating Statistics (Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2013
2012
2012
Total ETFs (in millions)
Beginning of period assets
18,286
16,783
12,182
Inflows/(outflows)
5,893
1,059
2,299
Market appreciation/(depreciation)
924
444
1,210
End of period assets
25,103
18,286
15,691
Average assets during the period
21,934
17,068
14,265
ETF Industry and Market Share (in billions)
ETF industry net inflows
54.4
55.4
53.2
WisdomTree market share of industry inflows
10.8%
1.9%
4.3%
International Developed Equity ETFs (in millions)
Beginning of period assets
3,732
2,896
2,407
Inflows/(outflows)
4,210
620
302
Market appreciation/(depreciation)
583
216
255
End of period assets
8,525
3,732
2,964
Average assets during the period
6,072
3,022
2,680
Emerging Markets Equity ETFs (in millions)
Beginning of period assets
7,332
6,542
3,613
Inflows/(outflows)
876
515
1,398
Market appreciation/(depreciation)
(137)
275
583
End of period assets
8,071
7,332
5,594
Average assets during the period
7,905
6,767
4,780
US Equity ETFs (in millions)
Beginning of period assets
4,371
4,640
3,429
Inflows/(outflows)
291
(205)
565
Market appreciation/(depreciation)
499
(64)
281
End of period assets
5,161
4,371
4,275
Average assets during the period
4,749
4,522
3,990
International Fixed Income ETFs (in millions)
Beginning of period assets
2,118
1,904
1,506
Inflows/(outflows)
508
190
161
Market appreciation/(depreciation)
(26)
24
68
End of period assets
2,600
2,118
1,735
Average assets during the period
2,453
1,990
1,627
Currency ETFs (in millions)
Beginning of period assets
611
654
950
Inflows/(outflows)
12
(37)
(104)
Market appreciation/(depreciation)
3
(6)
35
End of period assets
626
611
881
Average assets during the period
637
632
935
Alternative Strategy ETFs (in millions)
Beginning of period assets
122
147
277
Inflows/(outflows)
(4)
(24)
(23)
Market appreciation/(depreciation)
2
(1)
(12)
End of period assets
120
122
242
Average assets during the period
118
135
253
Average ETF assets during the period
Emerging markets equity ETFs
36%
39%
33%
International developed equity ETFs
27%
18%
19%
US equity ETFs
22%
26%
28%
International fixed income ETFs
11%
12%
12%
Currency ETFs
3%
4%
7%
Alternative strategy ETFs
1%
1%
1%
Total
100%
100%
100%
Average ETF advisory fee during the period
Alternative strategy ETFs
0.94%
0.94%
0.95%
Emerging markets equity ETFs
0.67%
0.67%
0.67%
International fixed income ETFs
0.55%
0.55%
0.55%
International developed equity ETFs
0.52%
0.54%
0.55%
Currency ETFs
0.51%
0.50%
0.49%
US equity ETFs
0.35%
0.35%
0.35%
Blended total
0.54%
0.54%
0.54%
Number of ETFs - end of the period
International developed equity ETFs
18
18
18
US equity ETFs
11
11
12
International fixed income ETFs
6
5
5
Currency ETFs
5
5
7
Emerging markets equity ETFs
5
5
4
Alternative strategy ETFs
2
2
2
Total
47
46
48
Headcount
72
70
64
Note: Previously issued statistics may be restated due to trade adjustments
Source: Investment Company Institute, Bloomberg, WisdomTree
Non-GAAP Financial Measurements
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. The non-GAAP financial measurements included in this release include proforma operating income, proforma expenses and proforma pre-tax operating margin. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. We have disclosed our results excluding certain non-operating items including (1) our patent litigation with Research Affiliates LLC; (2) expenses for the WisdomTree ETF shareholder proxy solicitation; and (3) advisory and other related fees associated with the secondary offering of our common stock in November 2012. Management excludes these items when measuring our financial performance as they are not directly related to our core business of being an ETF sponsor and asset manager.
WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP to NON-GAAP RECONCILIATION
(in thousands)
(Unaudited)
For the Three Months Ended
Mar. 31,
Dec. 31,
Mar. 31,
2013
2012
2012
GAAP total expenses
$ 21,487
$ 18,321
$ 18,055
ETF shareholder proxy
--
--
(66)
Patent litigation, net
--
524
(672)
Offering costs
--
(353)
--
Proforma operating expenses
$ 21,487
$ 18,492
$ 17,317
GAAP net income
$ 7,854
$ 5,253
$ 1,115
ETF shareholder proxy
--
--
66
Patent litigation, net
--
(524)
672
Offering costs
--
353
--
Proforma operating income
$ 7,854
$ 5,082
$ 1,853
GAAP net income
$ 7,854
$ 5,253
$ 1,115
Divide GAAP total revenue
29,341
23,574
19,170
GAAP pre-tax margin
26.8%
22.3%
5.8%
Proforma pre-tax net income
$ 7,854
$ 5,082
$ 1,853
Divide GAAP total revenue
29,341
23,574
19,170
Proforma pre-tax operating margin
26.8%
21.6%
9.7%
.
.
Contact:.
.
WisdomTree Investments, Inc.Stuart Bell / Jessica Zaloom+1.917.267.3702 / +1.917.267.3735sbell@wisdomtree.com / jzaloom@wisdomtree.com. ...
I think maybe a "Stregic Investment" to expand on Organic Content!
The Good Dr's In"!
All posts welcome!.
Lakes Entertainment Inc. Stock Upgraded (LACO)
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (TheStreet) -- Lakes Entertainment (Nasdaq:LACO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
? LACO's very impressive revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues leaped by 122.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
? LACO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.16, which clearly demonstrates the ability to cover short-term cash needs.
? Powered by its strong earnings growth of 114.58% and other important driving factors, this stock has surged by 31.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LACO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
? LAKES ENTERTAINMENT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, LAKES ENTERTAINMENT INC turned its bottom line around by earning $0.12 versus -$0.07 in the prior year.
? The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 115.6% when compared to the same quarter one year prior, rising from -$12.67 million to $1.97 million.
.
Lakes Entertainment, Inc., together with its subsidiaries, engages in the development, financing, and management of gaming-related properties for the Shingle Springs Tribe, the Pokagon Band of Potawatomi Indians, and the Jamul Tribe. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Lakes Entertainment has a market cap of $81.7 million and is part of the services sector and leisure industry. Shares are up 3% year to date as of the close of trading on Friday.
You can view the full Lakes Entertainment Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet Ratings Staff
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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Stock has too much Momentum right now as the shareholders underlying-Fundamentals continue to improve.
They would love you to "Fight the Tape"
The "Good Dr's In'!
All posts welcome.
..
Colgate Announces 1st Quarter 2013 Results
Strong Organic Sales Growth Worldwide
Press Release: Colgate-Palmolive Company – Thu, Apr 25, 2013 7:00 AM EDT.. .
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CL
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NEW YORK--(BUSINESS WIRE)--
Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,315 million in first quarter 2013, an increase of 2.5% versus first quarter 2012. Global unit volume grew 4.0%, pricing increased 1.5% and foreign exchange was negative 3.0%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.0%.
Net income and Diluted earnings per share in first quarter 2013 were $460 million and $0.97, respectively. Net income in first quarter 2013 included a one-time aftertax charge of $111 million ($0.23 per diluted share) related to the remeasurement of the Venezuelan balance sheet as a result of the currency devaluation on February 9, 2013. Net income in first quarter 2013 also included $55 million ($0.12 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”) and costs associated with the sale of land in Mexico.
Net income and Diluted earnings per share in first quarter 2012 were $593 million and $1.23, respectively. As previously disclosed, Net income in first quarter 2012 included aftertax charges of $8 million ($0.01 per diluted share) resulting from the items described in Table 6.
Excluding the above noted items in both periods, Net income in first quarter 2013 was $626 million, an increase of 4% versus first quarter 2012, and Diluted earnings per share in first quarter 2013 was $1.32, an increase of 6% versus first quarter 2012.
Gross profit margin was 58.3% in first quarter 2013 versus 58.0% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in first quarter 2013, an increase of 40 basis points versus the year ago quarter, as higher pricing and cost savings from the Company’s funding-the-growth initiatives more than offset higher raw and packaging material costs and the impact of the sale of higher cost inventory on hand in Venezuela prior to the devaluation.
Selling, general and administrative expenses were 35.6% of Net sales in first quarter 2013 versus 35.2% in first quarter 2012. Excluding the above noted items in both periods, Selling, general and administrative expenses increased by 40 basis points to 35.4% of Net sales in first quarter 2013, as advertising investment increased by 20 basis points and overhead expenses increased by 20 basis points primarily due to increased investment in customer development initiatives. Worldwide advertising investment on an absolute basis increased 5% versus the year ago quarter to $471 million.
Operating profit decreased 21% to $742 million in first quarter 2013 compared to $938 million in first quarter 2012. Excluding the above noted items in both periods, Operating profit increased 4% to $985 million.
Net cash provided by operations increased 17% to $777 million in the first quarter of 2013, compared to $662 million in the comparable 2012 period. The increase was driven by strong operating earnings as well as a continued tight focus on working capital, especially accounts receivable and inventory management. Free cash flow before dividends (Net cash provided by operations less Capital expenditures) exceeded 100% of Net income. Working capital as a percentage of Net sales improved to negative 0.5% versus negative 0.1% in the year ago period.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2013 and 2012 items noted above, “We are very pleased to begin the year with strong top and bottom line growth, building on the growth momentum we saw in 2012. Gross profit margin, operating profit margin and net income as a percent of sales all increased versus the year ago period.
“The excellent 6.0% organic sales growth was well balanced between solid unit volume gains and higher pricing worldwide. All operating divisions achieved positive organic sales growth in the quarter, led by the emerging markets where organic sales grew a robust 9.5%.
“Advertising investment increased versus year ago, both absolutely and as a percent to sales, and we continue to plan for higher levels of commercial investment in the balance of the year in support of a very full pipeline of new products worldwide.
“Colgate’s global market shares in toothpaste and manual toothbrushes are both at record highs year to date. Colgate’s share of the global toothpaste market strengthened to 45.6% year to date, up 0.1 share points versus year ago. Our global leadership in manual toothbrushes also strengthened during the quarter with Colgate’s global market share in that category reaching 33.4% year to date, up 0.4 share points versus year ago.
“Looking forward, we expect our growth momentum to continue as we progress through the year. We are pleased that our global restructuring program is on track and proceeding smoothly. We also continue to be sharply focused on our aggressive funding-the-growth programs and our strategic worldwide pricing initiatives.
“Based on this, we anticipate another year of strong organic sales growth and gross margin expansion in 2013. In light of the ongoing impact of the Venezuela currency devaluation in 2013, which we still expect to be $0.05 to $0.07 per quarter, we continue to expect diluted earnings per share to grow 5.5% to 6.5% for the year, on a dollar basis.”
At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on first quarter results. To access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.
The following are comments about divisional performance for first quarter 2013 versus the year ago period. See attached Geographic Sales Analysis and Segment Information schedules for additional information on divisional sales and operating profit.
North America (18% of Company Sales)
North America Net sales increased 5.5% in first quarter 2013. Unit volume increased 3.5% with 2.0% higher pricing and foreign exchange was even with the year ago quarter. Organic sales increased 5.5% during the quarter.
Operating profit in North America increased 22% in the first quarter of 2013 to $215 million, or 28.1% of Net sales. This increase in Operating profit was due to an increase in Gross profit, which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was mainly driven by lower raw and packaging material costs and savings from the Company’s funding-the-growth initiatives. This increase in Selling, general and administrative expenses was due to higher advertising investment, which was partially offset by lower overhead costs.
In the U.S., new product launches are contributing to volume growth across categories. Market share gains year to date were seen in manual toothbrushes, powered toothbrushes, mouthwash, body washes and fabric conditioners. In toothpaste, the success of Colgate Optic White and Colgate Optic White Dual Action toothpastes helped drive market share for the Optic White brand to 5.7% year to date, up 1.3 share points versus year ago. In manual toothbrushes, Colgate’s market share reached a record 37.1% year to date, up 0.3 share points versus year ago, driven by the success of Colgate 360° Optic White, Colgate 360° Total Advanced Floss Tip bristles and Colgate Extra Clean manual toothbrushes.
Successful new products driving volume growth in the U.S. in other categories include Colgate Optic White mouthwash, Softsoap brand Acai Berry & Tropical Water and Softsoap brand Coconut Island Quench body washes, Irish Spring Deep Action Scrub bar soap, Softsoap brand Antibacterial liquid hand soap, Palmolive Lotus Blossom & Lavender and Ajax with Aloe dish liquids and Suavitel Silky Essence fabric conditioner.
Exciting new products launching in second quarter 2013 include Colgate Total Advanced Pro-Shield mouthwash, an important addition to the Colgate Total oral care regimen. The launch will be supported by an integrated marketing campaign featuring television personality Kelly Ripa as the new spokesperson for the Colgate Total brand.
Latin America (28% of Company Sales)
Latin America Net sales increased 1.0% in first quarter 2013. Unit volume increased 5.5% with 3.0% higher pricing and 7.5% negative foreign exchange. Volume gains were led by Mexico, Brazil, Venezuela and the Southern Cone region. Organic sales for Latin America increased 9.0% during the quarter.
Operating profit in Latin America decreased 11% in the first quarter of 2013 to $312 million, or 25.7% of Net sales. This decrease in Operating profit was due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit is due to higher costs in Venezuela primarily associated with charging Cost of sales, as required, with the historical U.S. dollar cost of inventory acquired prior to the devaluation. This increase in Selling, general and administrative expenses was primarily due to higher costs in Venezuela due to inflation.
Colgate’s strong leadership in oral care throughout Latin America continued during the quarter with year-to-date toothpaste market share gains in Brazil, Chile, Uruguay, the Dominican Republic and Puerto Rico. Strong sales of Colgate Luminous White toothpaste drove volume growth throughout the region. Colgate strengthened its leadership of the manual toothbrush market throughout the region, driven by strong sales of Colgate 360° Luminous White and Colgate Triple Action manual toothbrushes. In mouthwash, Colgate’s year-to-date market share is at a record high in the region with gains driven by Colgate Luminous White mouthwash and the relaunch of Colgate Plax mouthwash.
Products in other categories contributing to market share gains include Protex Men and Palmolive Naturals Pomegranate bar soaps, Speed Stick DNA and Lady Speed Stick Neutro deodorants, Axion dish liquid and the relaunch of Suavitel Good Bye Ironing fabric conditioner.
Europe/South Pacific (20% of Company Sales)
Europe/South Pacific Net sales in first quarter 2013 decreased 0.5%. Unit volume and pricing were even with the year ago period and foreign exchange was negative 0.5%. Volume gains in Australia, Holland and Germany more than offset volume declines in Greece and the United Kingdom. Organic sales for Europe/South Pacific increased 0.5%.
Operating profit in Europe/South Pacific increased 9% in the first quarter of 2013 to $200 million, or 23.6% of Net sales. This increase in Operating profit was due to an increase in Gross profit and a decrease in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was driven by savings from the Company’s funding-the-growth initiatives. This decrease in Selling, general and administrative expenses was driven by higher advertising investment which was more than offset by lower overhead expenses.
Colgate strengthened its oral care leadership in the Europe/South Pacific region with toothpaste share gains led by France, Italy, Netherlands, Czech Republic, Croatia and Bulgaria. Successful premium products driving share gains include Colgate Total Pro Gum Health, Colgate Total Interdental, elmex Sensitive and Colgate Max White One Fresh toothpastes. In the manual toothbrush category, Colgate 360° Max White One manual toothbrush contributed to growth throughout the region.
Recent premium innovations contributing to volume growth in other product categories include Colgate Max White One, Colgate Total Pro Gum Health and Colgate Plax Complete Care mouthwashes, Colgate ProClinical electric toothbrush, Sanex Zero% deodorant, Palmolive Ayurituel shower gels and liquid hand soaps, Ajax Pure Home liquid cleaner and Soupline Aroma Sensations fabric conditioner.
Greater Asia/Africa (22% of Company Sales)
Greater Asia/Africa Net sales and unit volume increased 8.5% and 11.0%, respectively, during first quarter 2013. Volume gains were led by India, Russia, the Greater China region, Turkey, the Philippines and South Africa. Pricing decreased 1.0% and foreign exchange was negative 1.5%. Organic sales for Greater Asia/Africa increased 10.0%.
Operating profit in Greater Asia/Africa increased 13% in the first quarter of 2013 to $248 million, or 26.0% of Net sales. This increase in Operating profit was a result of an increase in Gross profit which was partially offset by an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives, partially offset by lower pricing. This increase in Selling, general and administrative expenses was driven by higher advertising investment and increased investment in customer development initiatives.
Colgate continued its toothpaste leadership in Greater Asia, driven by market share gains in India, China, Thailand, the Philippines, Singapore and Vietnam. Successful new products including Colgate Optic White, Colgate Total Pro Gum Health, Darlie Enamel and Darlie Expert White toothpastes contributed to volume growth throughout the region.
Successful products contributing to volume growth in other categories in the region include Colgate Slim Soft and Colgate 360° Surround manual toothbrushes, Colgate Optic White and Colgate Plax Fruity Fresh mouthwashes and Protex for Men shower gel.
Hill’s Pet Nutrition (12% of Company Sales)
Hill’s Net sales decreased 1.5% during first quarter 2013. Unit volume decreased 3.0%, pricing increased 3.5% and foreign exchange was negative 2.0%. Volume declines in the U.S., Europe and Japan were partially offset by volume gains in Russia, Canada, Australia and Brazil. Hill’s organic sales increased 0.5%.
Hill’s Operating profit decreased 8% in the first quarter of 2013 to $136 million, or 25.5% of Net sales. This decrease in Operating profit was due to a decrease in Gross profit and an increase in Selling, general and administrative expenses, both as a percentage of Net sales. This decrease in Gross profit was driven by higher raw and packaging material costs, which were partially offset by higher pricing and cost savings from the Company’s funding-the-growth initiatives. This increase in Selling, general and administrative expenses was primarily due to increased investment in customer development initiatives.
New product introductions contributing to sales in the U.S. include Hill’s Ideal Balance Canine and Feline, with natural ingredients perfectly balanced, Prescription Diet Canine and Feline Metabolic Advanced Weight Solution, Prescription Diet i/d Canine Low Fat GI Restore, specially formulated to help manage gastrointestinal disorders, and the relaunch of Science Diet Canine and Feline with upgraded meat first, 100% natural ingredients and improved package design.
New pet food products contributing to international sales include reformulated Science Plan Adult and Mature Adult Canine and Feline with improved taste, reformulated Prescription Diet j/d Canine with improved taste, Prescription Diet Canine and Feline Metabolic Advanced Weight Solution and the relaunch of Science Plan Nature’s Best with upgraded ingredients and package design.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under such internationally recognized brand names as Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. For more information about Colgate’s global business, visit the Company’s web site at http://www.colgatepalmolive.com. To learn more about Colgate Bright Smiles, Bright Futures® oral health education program, please visit http://www.colgatebsbf.com. CL-E
Substantially all market share data included in this press release is compiled from data as measured by Nielsen.
Cautionary Statement on Forward-Looking Statements
This press release and the related webcast (other than historical information) may contain forward-looking statements. Such statements may relate, for example, to sales or volume growth, organic sales growth, profit or profit margin growth, earnings growth, financial goals, the impact of currency devaluations, exchange controls, price controls and labor unrest, including in Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax rates, new product introductions or commercial investment levels. These statements are made on the basis of our views and assumptions as of this time and we undertake no obligation to update these statements. We caution investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Investors should consult the Company’s filings with the Securities and Exchange Commission (including the information set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) for information about certain factors that could cause such differences. Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s web site at http://www.colgatepalmolive.com.
Non-GAAP Financial Measures
The following provides information regarding the non-GAAP financial measures used in this earnings release and/or the related webcast:
To supplement Colgate’s Condensed Consolidated Income Statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), the Company has disclosed non-GAAP measures of operating results that exclude certain items. Worldwide Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Net income attributable to Colgate-Palmolive Company and Diluted earnings per common share are discussed both as reported (on a GAAP basis) and, as applicable, excluding charges resulting from the implementation of the 2012 Restructuring Program, the one-time charge resulting from the Venezuela devaluation, costs related to the sale of land in Mexico and costs associated with various business realignment and other cost-saving initiatives (non-GAAP). Management believes these non-GAAP financial measures provide investors with useful supplemental information regarding the performance of the Company’s ongoing operations. See “Non-GAAP Reconciliations” for the three months ended March 31, 2013 and 2012 included with this release for a reconciliation of these financial measures to the related GAAP measures.
This release discusses organic sales growth, which is Net sales growth excluding the impact of foreign exchange, acquisitions and divestments. Management believes this measure provides investors with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange as well as the impact from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three months ended March 31, 2013 vs 2012 included with this release for a comparison of organic sales growth to sales growth in accordance with GAAP.
The Company uses these financial measures internally in its budgeting process and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.
The Company defines free cash flow before dividends as Net cash provided by operations less Capital expenditures. As management uses this measure to evaluate the Company’s ability to satisfy current and future obligations, repurchase stock, pay dividends and fund future business opportunities, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. Free cash flow before dividends is not a GAAP measurement and may not be comparable to similarly titled measures reported by other companies. See “Condensed Consolidated Statements of Cash Flows” for the three months ended March 31, 2013 and 2012 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.
(See attached tables for first quarter results.)
Table 1
Colgate-Palmolive Company
Condensed Consolidated Statements of Income
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
2013
2012
Net sales
$
4,315
$
4,200
Cost of sales
1,800
1,763
Gross profit
2,515
2,437
Gross profit margin
58.3
%
58.0
%
Selling, general and administrative expenses
1,536
1,478
Other expense, net
237
21
Operating profit
742
938
Operating profit margin
17.2
%
22.3
%
Interest (income) expense, net
(3
)
10
Income before income taxes
745
928
Provision for income taxes
239
295
Effective tax rate
32.1
%
31.8
%
Net income including noncontrolling interests
506
633
Less: Net income attributable to noncontrolling interests
46
40
Net income attributable to Colgate-Palmolive Company
$
460
$
593
Earnings per common share
Basic
$
0.98
$
1.24
Diluted
$
0.97
$
1.23
Average common shares outstanding
Basic
468.3
480.1
Diluted
472.5
483.9
Table 2
Colgate-Palmolive Company
Condensed Consolidated Balance Sheets
As of March 31, 2013, December 31, 2012 and March 31, 2012
(Dollars in Millions) (Unaudited)
March 31,
December 31,
March 31,
2013
2012
2012
Cash and cash equivalents
$
932
$
884
$
1,044
Receivables, net
1,808
1,668
1,827
Inventories
1,371
1,365
1,400
Other current assets
717
639
578
Property, plant and equipment, net
3,820
3,842
3,702
Other assets, including goodwill and intangibles
4,885
4,996
4,703
Total assets
$
13,533
$
13,394
$
13,254
Total debt
$
5,357
$
5,230
$
4,967
Other current liabilities
3,829
3,432
3,735
Other non-current liabilities
2,328
2,342
2,056
Total liabilities
11,514
11,004
10,758
Total Colgate-Palmolive Company shareholders' equity
1,772
2,189
2,290
Noncontrolling interests
247
201
206
Total liabilities and shareholders' equity
$
13,533
$
13,394
$
13,254
Supplemental Balance Sheet Information
Debt less cash, cash equivalents and marketable securities*
$
4,261
$
4,230
$
3,841
Working capital % of sales
(0.5
)%
0.7
%
(0.1
)%
*
Marketable securities of $164, $116 and $82 as of March 31, 2013, December 31, 2012 and March 31, 2012, respectively, are included
in Other current assets.
Table 3
Colgate-Palmolive Company
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
2013
2012
Operating Activities
Net income including noncontrolling interests
$
506
$
633
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations:
Depreciation and amortization
110
106
Restructuring and termination benefits, net of cash
30
(17
)
Stock-based compensation expense
32
29
Venezuela devaluation charge
172
-
Deferred income taxes
(17
)
22
Cash effects of changes in:
Receivables
(175
)
(90
)
Inventories
(15
)
(38
)
Accounts payable and other accruals
112
(35
)
Other non-current assets and liabilities
22
52
Net cash provided by operations
777
662
Investing Activities
Capital expenditures
(94
)
(60
)
Purchases of marketable securities and investments
(199
)
(51
)
Proceeds from sale of marketable securities and investments
54
32
Other
7
38
Net cash used in investing activities
(232
)
(41
)
Financing Activities
Principal payments on debt
(1,436
)
(1,013
)
Proceeds from issuance of debt
1,553
1,183
Dividends paid
(290
)
(278
)
Purchases of treasury shares
(385
)
(463
)
Proceeds from exercise of stock options and excess tax benefits
96
106
Net cash used in financing activities
(462
)
(465
)
Effect of exchange rate changes on Cash and cash equivalents
(35
)
10
Net increase in Cash and cash equivalents
48
166
Cash and cash equivalents at beginning of period
884
878
Cash and cash equivalents at end of period
$
932
$
1,044
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided by operations less Capital expenditures)
Net cash provided by operations
$
777
$
662
Less: Capital expenditures
(94
)
(60
)
Free cash flow before dividends
$
683
$
602
Income taxes paid
$
182
$
223
Table 4
Colgate-Palmolive Company
Segment Information
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions) (Unaudited)
Three Months Ended
March 31,
2013
2012
Net sales
Oral, Personal and Home Care
North America
$
764
$
724
Latin America
1,214
1,201
Europe/South Pacific
848
854
Greater Asia/Africa
955
879
Total Oral, Personal and Home Care
3,781
3,658
Pet Nutrition
534
542
Total Net sales
$
4,315
$
4,200
Three Months Ended
March 31,
2013
2012
Operating profit
Oral, Personal and Home Care
North America
$
215
$
177
Latin America
312
350
Europe/South Pacific
200
183
Greater Asia/Africa
248
220
Total Oral, Personal and Home Care
975
930
Pet Nutrition
136
148
Corporate(1)
(369
)
(140
)
Total Operating profit
$
742
$
938
Note:
(1)
Corporate operations include costs related to stock options and restricted stock awards, research and development costs, Corporate overhead costs, restructuring and related implementation costs and gains and losses on sales of non-core product lines and assets.
For the three months ended March 31, 2013, Corporate Operating profit (loss) includes charges of $66 associated with the 2012 Restructuring Program, a one-time $172 charge for the impact of the devaluation in Venezuela and costs of $5 related to the sale of land in Mexico.
For the three months ended March 31, 2012, Corporate Operating profit (loss) includes costs of $7 related to the sale of land in Mexico and $5 associated with various business realignment and other cost-saving initiatives.
Table 5
Colgate-Palmolive Company
Geographic Sales Analysis Percentage Changes
For the Three Months Ended March 31, 2013 vs 2012
(Unaudited)
COMPONENTS OF SALES CHANGE
Pricing
Coupons
Sales
Consumer &
Change
Organic
As Reported
Organic
Ex-Divested
Trade
Foreign
Region
As Reported
Sales Change
Volume
Volume
Volume
Incentives
Exchange
Total Company
2.5
%
6.0
%
4.0
%
4.5
%
4.5
%
1.5
%
(3.0
)%
Europe/South Pacific
(0.5
)%
0.5
%
-
0.5
%
0.5
%
-
(0.5
)%
Latin America
1.0
%
9.0
%
5.5
%
6.0
%
6.0
%
3.0
%
(7.5
)%
Greater Asia/Africa
8.5
%
10.0
%
11.0
%
11.0
%
11.0
%
(1.0
)%
(1.5
)%
Total International
3.0
%
7.0
%
5.5
%
6.0
%
6.0
%
1.0
%
(3.5
)%
North America
5.5
%
5.5
%
3.5
%
3.5
%
3.5
%
2.0
%
-
Total CP Products
3.5
%
6.5
%
5.5
%
5.5
%
5.5
%
1.0
%
(3.0
)%
Hill's
(1.5
)%
0.5
%
(3.0
)%
(3.0
)%
(3.0
)%
3.5
%
(2.0
)%
Emerging Markets (1)
4.0
%
9.5
%
7.5
%
8.0
%
8.0
%
1.5
%
(5.0
)%
Developed Markets
1.0
%
2.0
%
0.5
%
0.5
%
0.5
%
1.5
%
(1.0
)%
Notes:
(1) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and Central Europe.
Table 6
Colgate-Palmolive Company
Non-GAAP Reconciliations
For the Three Months Ended March 31, 2013 and 2012
(Dollars in Millions Except Per Share Amounts) (Unaudited)
Gross Profit
2013
2012
Gross profit, GAAP
$
2,515
$
2,437
2012 Restructuring Program
8
-
Costs related to the sale of land in Mexico
4
7
Business realignment and other cost-saving initiatives
-
2
Gross profit, non-GAAP
$
2,527
$
2,446
Basis Point
Gross Profit Margin
2013
2012
Change
Gross profit margin, GAAP
58.3
%
58.0
%
30
2012 Restructuring Program
0.2
%
-
Costs related to the sale of land in Mexico
0.1
%
0.2
%
Business realignment and other cost-saving initiatives
-
-
Gross profit margin, non-GAAP
58.6
%
58.2
%
40
Selling, General and Administrative Expenses
2013
2012
Selling, general and administrative expenses, GAAP
$
1,536
$
1,478
2012 Restructuring Program
(8
)
-
Business realignment and other cost-saving initiatives
-
(7
)
Selling, general and administrative expenses, non-GAAP
$
1,528
$
1,471
Basis Point
Selling, General and Administrative Expenses as a Percentage of Net Sales
2013
2012
Change
Selling, general and administrative expenses as a percentage of Net sales, GAAP
35.6
%
35.2
%
40
2012 Restructuring Program
(0.2
)%
-
Business realignment and other cost-saving initiatives
-
(0.2
)%
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP
35.4
%
35.0
%
40
Other (Income) Expense, Net
2013
2012
Other (income) expense, net, GAAP
$
237
$
21
2012 Restructuring Program
(50
)
-
Venezuela devaluation charge
(172
)
-
Costs related to the sale of land in Mexico
(1
)
-
Business realignment and other cost-saving initiatives
-
4
Other (income) expense, net, non-GAAP
$
14
$
25
Operating Profit
2013
2012
% Change
Operating profit, GAAP
$
742
$
938
(21
)%
2012 Restructuring Program
66
-
Venezuela devaluation charge
172
-
Costs related to the sale of land in Mexico
5
7
Business realignment and other cost-saving initiatives
-
5
Operating profit, non-GAAP
$
985
$
950
4
%
Basis Point
Operating Profit Margin
2013
2012
Change
Operating profit margin, GAAP
17.2
%
22.3
%
(510
)
2012 Restructuring Program
1.5
%
-
Venezuela devaluation charge
4.0
%
-
Costs related to the sale of land in Mexico
0.1
%
0.2
%
Business realignment and other cost-saving initiatives
-
0.1
%
Operating profit margin, non-GAAP
22.8
%
22.6
%
20
Net Income Attributable to Colgate-Palmolive Company
2013
2012
% Change
Net income attributable to Colgate-Palmolive Company, GAAP
$
460
$
593
(22
)%
2012 Restructuring Program
52
-
Venezuela devaluation charge
111
-
Costs related to the sale of land in Mexico
3
5
Business realignment and other cost-saving initiatives
-
3
Net income attributable to Colgate-Palmolive Company, non-GAAP
$
626
$
601
4
%
Earnings Per Common Share, Diluted (1)
2013
2012
% Change
Earnings per common share, diluted, GAAP
$
0.97
$
1.23
(21
)%
2012 Restructuring Program
0.11
-
Venezuela devaluation charge
0.23
-
Costs related to the sale of land in Mexico
0.01
0.01
Business realignment and other cost-saving initiatives
-
-
Earnings per common share, diluted, non-GAAP
$
1.32
$
1.24
6
%
(1) The impact of non-GAAP adjustments on the diluted earnings per share may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
.
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Colgate-Palmolive Company
Bina Thompson, 212-310-3072
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Hope Spiller, 212-310-2291.
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Chrysler profits fall 65 percentWXYZ-Detroit Videos
Newell Rubbermaid Reports Solid First Quarter 2013 Results
• Core Sales Growth of 2.5% (adjusted for 2012 SAP-related timing shift)
• Normalized EPS of $0.35, 9.4% ahead of Prior Year Quarter
• Reported Sales Decline of 0.8%; Reported EPS of $0.19
• Announces Plan to Divest Non-Strategic Businesses
Newell Rubbermaid (NWL) today announced solid first quarter 2013 results.
“We’ve had a good start to the year and made further progress driving the Growth Game Plan into action,” said President and Chief Executive Officer Michael Polk. “Underlying financial results on our continuing business were solid, with particularly strong performances from our Commercial Products, Tools and Baby & Parenting operating segments. Core sales grew 2.5 percent when adjusted for last year’s European SAP-related timing shift and normalized EPS grew 9.4 percent to $0.35.”
Polk added, “The Growth Game Plan calls for a sharper set of portfolio choices to prioritize those businesses that have the greatest right to win. In that context, we have taken steps to strengthen our portfolio by initiating a process to sell our Hardware and Teach Platform businesses which together represented 2012 net sales of slightly more than $300 million. These are good businesses run by talented people but they do not fit with our strategy. The divestiture of these businesses will help to create a faster growing, higher margin and more focused portfolio, enabling us to drive accelerated performance.”
First Quarter Executive Summary
(Information presented for both current and prior year periods in this release has been restated to reflect discontinued operations classification for the company’s Hardware and Teach Platform businesses.)
• First quarter 2013 net sales were $1.24 billion, a 0.8 percent decline versus prior year results.
• Core sales, which exclude the impact of changes in foreign currency translation, grew 0.2 percent, or 2.5 percent when adjusted for the 2012 timing shift of approximately $28 million in sales from the second quarter to the first quarter related to the company’s European SAP conversion in 2012.
• Normalized operating margin declined 40 basis points, compared with prior year results that included an 80 basis point favorable impact from the 2012 European SAP-related timing shift. Reported operating margin declined 200 basis points, due largely to increased restructuring costs and the mix impact of the European SAP-related timing shift.
• Normalized diluted earnings per share were $0.35, a year-over-year increase of 9.4 percent due to a more favorable tax rate, lower interest expense and improved operating performance, partially offset by a comparison with prior year results that included a $0.03 benefit from the European SAP-related sales timing shift.
• Reported diluted earnings per share were $0.19 compared with $0.27 in the year-ago period, due largely to increased restructuring costs, a loss from discontinued operations, and a loss relating to the currency devaluation in Venezuela.
• Operating cash flow was a use of $123.1 million, as compared with a use of $47.4 million in the prior year, largely due to an incremental voluntary $75 million pension contribution.
• The company returned $78.3 million to shareholders through a dividend payout of $44.5 million and the repurchase of 1.4 million shares at a cost of $33.8 million.
• The company’s Hardware and Teach Platform businesses (comprising the Bulldog®, Shurline®, Ashland® and Amerock® brands, the drapery hardware business, and Mimio®) have been classified as discontinued operations.
• The company’s 2013 guidance is core sales growth in a range from 2 to 4 percent, normalized operating margin improvement of up to 20 basis points, normalized earnings per share of $1.78 to $1.84 and operating cash flow of $575 to $625 million.
..
Lakes Entertainment, Inc. Announces Controlled Casino Demonstration to Be Held at Rocky Gap Casino Resort on May 20
Press Release: Lakes Entertainment, Inc. – Mon, Apr 29, 2013 6:30 AM EDT.. .
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MINNEAPOLIS--(BUSINESS WIRE)--
Lakes Entertainment, Inc. (LACO) announced that it has received approval for its Rocky Gap Casino Resort project, located near Cumberland, Maryland, to conduct a controlled casino demonstration on Monday, May 20 from 11:00 a.m. to 7:00 p.m. under the supervision of the Maryland Lottery and Gaming Control Agency. The outcome will determine when the casino will officially open to the public.
“We look forward to completing a successful controlled demonstration, which will allow us to test all of the elements of the new casino,” said Tim Cope, President of Lakes. “Once we successfully complete the controlled demonstration and satisfy the Maryland Lottery and Gaming Control Agency we expect to receive approval to officially open the casino as soon as May 22nd.”
Reservations and Information
To make a hotel reservation, reserve a tee time, or for more information about Rocky Gap Casino Resort, please call 1(800)724-0828 or visit www.rockygapresort.com.
About Rocky Gap Casino Resort
Rocky Gap Casino Resort, located near Cumberland, Maryland in the heart of Allegany County, is a AAA 4-Diamond Award® winning resort featuring a hotel, four restaurants, the only Jack Nicklaus Signature Golf Course in Maryland, a spa, indoor/outdoor pool, gift shop, and several outdoor recreational activities. The casino will feature approximately 550 slot machines, 10 table games, and a casino bar. A new event center is expected to open in the fourth quarter of 2013. Rocky Gap Casino Resort is owned by Evitts Resort, LLC, a subsidiary of Lakes Entertainment, Inc. (LACO). More information is available at: www.rockygapresort.com.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Casino Resort near Cumberland, Maryland. Lakes has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has an investment in Rock Ohio Ventures, LLC’s casino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, need for potential future financing to meet Lakes’ development needs; those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; possible need for future financing to meet Lakes' expansion goals; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
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Contact:.
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Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030.
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Utah Medical Products, Inc. Reports Financial Performance for First Quarter 2013
Press Release: Utah Medical Products, Inc. – Thu, Apr 25, 2013 9:00 AM EDT.. .
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SALT LAKE CITY, April 25, 2013 (GLOBE NEWSWIRE) -- In the first calendar quarter (1Q) of 2013, Utah Medical Products, Inc. (UTMD) achieved financial results on track to meet its previously announced full year goals. Compared to the same quarter in the prior year, profit margins improved in all income statement categories, as follows:
1Q 2013
(JAN -- MAR)
1Q 2012
(JAN -- MAR)
Gross Profit Margin (gross profits/ sales):
60.5%
60.1%
Operating Profit Margin (operating profits/ sales):
37.5%
36.7%
EBT Margin (profits before income taxes/ sales):
36.5%
35.1%
Net Profit Margin (profit after taxes/ sales):
26.4%
24.9%
UTMD's Operating Profit Margin (OPM) improved despite the new Medical Device Excise Tax (MDET), imposed as a component of the Patient Protection and Affordable Care Act (Obamacare). Without the tax, levied as 2.3% of domestic sales of medical devices, UTMD's consolidated 1Q 2013 OPM would have been 38.2%.
As shareholders may recall, in the same 1Q period of the prior year of 2012, a couple of UTMD's largest OEM/international distributor customers purchased substantially more than their quarterly averages. As a result, the following is the comparison of 1Q 2013 to 1Q 2012:
Sales:
(7%)
Gross Profit:
(7%)
Operating Income:
(5%)
Net Income:
(2%)
Earnings Per Share:
(4%)
As UTMD states in its quarterly SEC Form 10-Q disclosures, 'Because of the relatively short span of time, results for any given three month period in comparison with any previous three month period may not be indicative of comparative results for the year as a whole.'
Currency amounts throughout this report are in thousands, except per share amounts and where noted.
According to CEO Kevin Cornwell, "I believe the year has started well; better than expected with respect to profit margins. We expected that the comparison of first quarter 2013 income statement results with first quarter 2012, our best quarter during last year, may not look particularly good to investors given the very high standard of performance that UTMD achieved last year. However, after the first quarter results, we remain confident that we can achieve or exceed the goals we set for the full year of 2013 as described in the 2012 SEC Form 10-K."
As an alternative comparison, the following table compares 1Q 2013 income statement results with the average quarterly performance for the entire year of 2012:
1Q 2013
2012
Quarterly Average
Sales:
--
$ 10,374
$ 10,388
Gross Profit:
(1%)
6,281
6,327
Operating Income:
+2%
3,889
3,799
Net Income:
+8%
2,735
2,542
Earnings Per Share:
+6%
.728
.685
Sales.
Most of the 1Q 2013 sales decline compared to 1Q 2012 was due to the expected $656 decline in Filshie Clip shipments by UTMD's Femcare UK subsidiary to its U.S. distributor, Cooper Surgical, due to overstocking in the prior year. This accounted for 79% of UTMD's total consolidated sales decline (6% points of the 7% decline).
International sales were down $213 (2% of total 1Q 2012 sales). This was primarily due to $296 lower sales to UTMD's China distributor of its blood pressure monitoring devices, which also overstocked in 1Q 2012. UTMD's Ireland subsidiary shipments were up 8% in Euro terms. UTMD's UK subsidiary shipments, which included the Filshie Clip shipments to Cooper Surgical, were down 19% in GBP terms. UTMD's Australia subsidiary shipments were down 14% in AUD terms. When translating 1Q 2013 foreign currency sales into U.S. Dollars (USD), the same foreign currency sales were about 2% lower when expressed in USD than in 2012 due to a stronger USD.
Domestic sales in 1Q 2013, excluding sales to Cooper Surgical, were up 1% compared to 1Q 2012. It appears that the previous decline in hospital utilization rates of specialty devices may have stabilized.
Gross Profit.
UTMD's 1Q 2013 gross profit margin (GPM), gross profits divided by sales, was slightly higher than 1Q 2012 and slightly higher than the GPM projected for the full year of 2013 in UTMD's 2012 SEC Form 10-K, but slightly lower than the average GPM for the full previous year of 2012 for the reasons described in the SEC 10-K.
Operating Income.
Operating expenses, comprised of G&A, S&M and R&D expenses, were $2,392 in 1Q 2013 (23.1% of sales), compared to $2,623 in 1Q 2012 (23.4% of sales), despite $75 added to 1Q 2013 operating expenses for the Obamacare MDET that weren't part of 2012 operating expenses. In financial projections for 2013 included in UTMD's 2012 SEC Form 10-K, management included the MDET in non-operating expenses. The change in classification from non-operating to operating expenses, more specifically S&M expenses, was the result of a recommendation by UTMD's independent accounting firm. The MDET paid in 1Q 2013 was consistent with UTMD's expectation.
Lower consolidated operating expenses in USD terms resulted in part from foreign subsidiary operating expenses reduced by about 2% as a result of a stronger USD. G&A expenses were $1,600 (15.4% of sales) in 1Q 2013 compared to $1,827 (16.3% of sales) in 1Q 2012. The G&A expenses in 1Q 2013 included $625 (6.0% of sales) of non-cash expense from the amortization of identifiable intangible assets resulting from the Femcare acquisition, which were $635 (5.7% of sales) in 1Q 2012. In addition to the reduction in foreign operating expense due to a stronger USD, lower G&A expenses were primarily the result of 1) $100 lower litigation expense in the U.S.; 2) $48 lower UK expense from the termination of leases and rents incurred in the prior year, and a foreign currency exchange gain on accounts receivable; and 3) $18 in lower variable expenses in Australia related to lower sales activity, and a reclassification of $22 Australia freight expense included in G&A in 2012 to S&M expense in 2013.
S&M expenses were $669 (6.4% of sales) in 1Q 2013 compared to $651 (5.8% of sales) in 1Q 2012. S&M expenses in 1Q 2013 included $75 MDET. R&D expenses were $123 (1.2% of sales) in 1Q 2013 compared to $146 (1.3% of sales) in 1Q 2012.
UTMD's 1Q 2013 operating profit margin (OPM), operating income divided by sales, improved to 37.5% compared to 36.7% in 1Q 2012 as a result of the improvement in GPM combined with $232 lower operating expenses described above.
Income Before Tax.
Income before taxes (EBT) result from subtracting UTMD's net non-operating expense (NOE) from its operating income. NOE includes loan interest and bank fees minus non-operating income from rent of underutilized property, investment income and royalties received from licensing the Company's technology. NOE in 1Q 2013 was $102 compared to $178 in 1Q 2012. The difference was primarily due to interest on loans obtained to help finance the acquisition of Femcare. 1Q 2013 interest expense was $122. 1Q 2012 interest expense was $189. Consolidated EBT was $3,787 in 1Q 2013 compared to $3,937 in 1Q 2012. The EBT of UTMD Ltd. (Ireland) was EURO227 in 1Q 2013 compared to EURO122 in 1Q 2012. The EBT of Femcare (Femcare-Nikomed, Ltd., UK and Femcare Australia) was [Pounds]1,030 in 1Q 2013 compared to [Pounds]1,277 in 1Q 2012. The respective EBT margins (EBT divided by sales) of UTMD Ltd. (Ireland) were 24.5% in 1Q 2013 and 14.3% in 1Q 2012. The respective EBT margins of Femcare were 36.7% in 1Q 2013 and 37.5% in 1Q 2012. Excluding the noncash effects of depreciation, amortization of intangible assets, write-off of impaired assets and stock option expense, 1Q 2013 and most recent twelve months consolidated EBT plus interest expense were $4,710 and $18,447, respectively.
Net Income.
UTMD's net profit margin (NPM), net income divided by sales, was 26.4% in 1Q 2013 compared to 24.9% in 1Q 2012. The improvement in 1Q 2013 NPM compared to the prior period was due to the improvement in OPMs described above, progressively lower interest expense as UTMD repaid debt it obtained when financing the Femcare acquisition, greater profit in Ireland, the lowest taxed sovereignty, and a lower corporate income tax rate in the UK. The average consolidated income tax provisions (as a % of EBT) in 1Q 2013 and 1Q 2012 were 27.8% and 29.2%, respectively.
UTMD's combined state and federal income tax rate in the U.S. after all allowable deductions was 33.1% in 1Q 2013 compared to 34.6% in 1Q 2012. The corporate income tax rate in the UK was 24% in 1Q 2013 compared to 26% in 1Q 2012. As of April 1, 2013, the UK corporate tax rate was reduced again, from 24% to 23%, which will further benefit UTMD's NPM during the remainder of 2013. The income tax rate in Australia has been and remains 30%. UTMD Ltd (Ireland) tax provision rate was 13.2% in 1Q 2013.
Earnings per share (EPS).
Earnings per share for the most recent twelve months were $2.71. EPS in 1Q 2013 decreased more than the percent decrease in net income due to the exercise of employee options and the higher dilution factor applied to unexercised options as a result of a much higher average market price of UTMD stock. Diluted shares used to calculate EPS increased to 3,756,900 in 1Q 2013 from 3,674,900 in 1Q 2012. The number of shares added as a dilution factor in 1Q 2013 was 45,500 compared to 25,900 in 1Q 2012.
Outstanding shares at the end of 1Q 2013 were 3,722,100. The number of shares used for calculating earnings per share was higher than ending shares because of a time-weighted calculation of average outstanding shares plus dilution from unexercised employee and director options. The total number of outstanding unexercised employee and outside director options at March 31, 2013 was 116,300 shares at an average exercise price of $27.04/ share, including shares awarded but not vested. This compares to 202,000 unexercised option shares outstanding at March 31, 2012 at an average exercise price of $25.75/ share.
During both 1Q 2013 and 1Q 2012, UTMD did not repurchase its shares in the open market. The Company retains the financial ability for repurchasing its shares when they seem undervalued. The closing share price at the end of 1Q 2013 was $48.77 compared to $36.05 at the end of calendar year 2012, and $31.10 at the end of 1Q 2012.
Balance Sheet.
There were a few significant changes in UTMD's Balance Sheet at March 31, 2013 from March 31, 2012. From a year earlier, cash and investments increased $2.7 million so that the $10.9 million balance of cash and investments at March 31, 2013 was within $0.6 million of UTMD's bank debt balance of $11.5 million remaining from borrowing $26.9 million to help finance the acquisition of the Femcare Group, Ltd. In the two years following the Femcare acquisition, UTMD has repaid 57% of the loan provided by JP Morgan Chase. Over the most recent one year period, net intangible assets declined $4.6 million and debt principal declined $8.0 million. Stockholders' Equity increased $6.2 million after cash payments of dividends to shareholders of $3.6 million and share repurchases of $0.5 million (which reduce Stockholders' Equity).
Financial ratios as of March 31, 2013 which may be of interest to shareholders follow:
1) Current Ratio = 2.4
2) Days in Trade Receivables (based on 1Q 2013 sales activity) = 41
3) Average Inventory Turns (based on 1Q 2013 CGS) = 3.7
4) 2013 YTD ROE = 22%
Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risk factors that could cause results to differ materially from those projected include market acceptance of products, timing of regulatory approval of new products, regulatory intervention in current operations, government healthcare "reforms", the Company's ability to efficiently manufacture, market, and sell its products, among other factors that have been and will be outlined in UTMD's public disclosure filings with the SEC.
Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in hundreds of countries around the world as the standard for obtaining optimal long term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com.
Utah Medical Products, Inc.
INCOME STATEMENT, First Quarter ended March 31 (in thousands except earnings per share):
1Q 2013
1Q 2012
Percent Change
Net Sales
$10,374
$11,206
(7.4%)
Gross Profit
6,281
6,738
(6.8%)
Operating Income
3,889
4,115
(5.5%)
Income Before Tax
3,787
3,937
(3.8%)
Net Income
2,735
2,789
(1.9%)
Earnings Per Share
$0.728
$0.759
(4.1%)
Shares Outstanding (diluted)
3,757
3,675
BALANCE SHEET
(in thousands)
(unaudited)
(audited)
(unaudited)
March 31, 2013
December 31, 2012
March 31, 2012
Assets
Cash & Investments
$10,918
$8,913
$8,239
Accounts & Other Receivables, Net
5,363
4,341
6,065
Inventories
4,406
4,353
4,835
Other Current Assets
910
929
853
Total Current Assets
21,597
18,535
19,992
Property & Equipment, Net
8,203
8,428
8,813
Intangible Assets, Net
46,562
49,972
51,162
Total Assets
$76,362
$76,935
$79,967
Liabilities & Stockholders' Equity
A/P & Accrued Liabilities
$5,193
$3,821
$6,317
Current Portion of Notes Payable
3,831
4,001
5,485
Total Current Liabilities
9,024
7,823
11,802
Notes Payable (excluding current portion)
7,663
9,003
14,042
Other LT Liabilities
339
363
446
Deferred Tax Liability -- Intangibles
7,733
7,889
8,379
Deferred Revenue and Income Taxes
887
884
768
Stockholders' Equity
50,716
50,972
44,530
Total Liabilities & Stockholders' Equity
$76,362
$76,935
$79,967
.
.
Contact:.
.
Paul Richins(801) 566-1200. ...
Netflix Releases First-Quarter 2013 Financial Results
Press Release: Netflix, Inc. – 20 minutes ago
LOS GATOS, Calif., April 22, 2013 /PRNewswire/ -- – Netflix, Inc. (NFLX) has released its first-quarter 2013 financial results by posting them to its website. Please visit the Netflix investor relations website at http://ir.netflix.com to view the Q1'13 financial results and letter to shareholders.
(Logo: http://photos.prnewswire.com/prnh/20101014/SF81638LOGO)
As previously announced, Netflix management will host a live Q&A session at 3:00 p.m. Pacific Time to discuss the Company's financial results and business outlook, with questions submitted via email. Please email your questions to ir@netflix.com. The company will read the questions aloud on the call and respond to as many questions as possible. After email Q&A, we will also open up the lines to take live follow-up questions. The dial-in for the live earnings Q&A session is: (760) 666-3613.
Media inquiries should be directed to Jonathan Friedland at (310) 734-2958 or jofriedland@netflix.com.
A live webcast and the replay of the earnings Q&A session can be accessed on the investor relations section of the Netflix website at http://ir.netflix.com. The telephone replay of the earnings Q&A session will be available from 6:00 p.m. Pacific Time on April 22, 2013 through midnight on April 26, 2013. To listen to the replay, call (855) 859-2056, conference ID# 29873296.
About Netflix, Inc.
Netflix is the world's leading Internet television network with more than 36 million members in 40 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Learn more about how Netflix (NFLX) is pioneering Internet television at www.netflix.com or follow Netflix on Facebook and Twitter.
..
SAN DIEGO, April 4, 2013 /PRNewswire/ -- WD-40 Company (WDFC) today reported net sales for the second quarter ended February 28, 2013 of $86.7 million, an increase of 1% from the second quarter last fiscal year. Year-to-date net sales were $182.0 million, up 6% from the same period last fiscal year.
Net income for the second quarter was $10.5 million, a decrease of 1% compared to the prior year fiscal quarter. Year-to-date net income was $21.4 million, an increase of 23% from the prior fiscal year period.
Summary
Second quarter multi-purpose maintenance products sales, which include the WD-40®, 3-IN-ONE® and BLUE WORKS® brands were $75.4 million, up 6% from the prior year fiscal quarter, and $157.2 million year-to-date, up 11% from the same period last fiscal year. The multi-purpose maintenance products are considered a primary focus for the Company. Homecare and cleaning products sales, which include all other brands, were $11.3 million for the second quarter, down 23%, and were $24.8 million year-to-date, down 14%, both as compared to the prior fiscal year periods. The U.S. homecare and cleaning products are considered harvest brands providing healthy profit returns to the Company and are becoming a smaller part of the business as the multi-purpose maintenance products sales grow.
Americas segment sales in the second quarter were $40.2 million, down 13% compared to the second quarter last fiscal year and were $85.6 million year-to-date, down 1% compared to the prior fiscal year period. Europe segment sales in the second quarter were $32.4 million, up 16% and were $67.6 million year-to-date, also up 16% compared to the same periods last fiscal year. Asia-Pacific segment sales were $14.1 million in the second quarter, up 18% and were $28.8 million year-to-date, up 10% compared to the same periods last fiscal year.
Diluted earnings per share were $0.66 in the second quarter, compared to $0.65 per share for the same quarter of the prior fiscal year. Year-to-date diluted earnings per share were $1.35 compared to $1.07 in the same period last fiscal year.
"We are pleased that we have turned the corner in many of our European markets and have met our expectations in these markets despite continuing economic turmoil," said Garry Ridge, WD-40 Company president and chief executive officer. "As we celebrate our 60th anniversary as a company, we continue to think big about our future and the path forward is clearer than ever before as we maintain growth based on solid implementation of our strategic objectives."
Net sales by segment as a percent of total net sales were as follows: for the Americas, 46% for the second quarter and 47% year-to-date; for Europe, 38% for the second quarter and 37% year-to-date; and, for Asia-Pacific, 16% for both the second quarter and year-to-date.
"We continue to execute our strategy market by market and are pleased with our continued growth," Ridge said. "Our long-term execution approach in China is working as we make more people aware of our products and make them easier to buy, each and every day."
Gross margin was 50.9% in the second quarter compared to 49.0% in the same quarter last fiscal year. Year-to-date, gross margin was 50.5%, compared to 48.8% in the same period last fiscal year.
"We were able to maintain our gross margin due to several factors, including the price increases we took last year to offset product cost increases, the relative stability in commodity costs and the benefits of the supply chain initiatives we implemented in China and North America," Ridge added.
Selling, general and administrative expenses were up 9% in the second quarter to $24.0 million and were up 11% year-to-date to $49.3 million as compared to the same periods last fiscal year.
Advertising and sales promotion expenses were up 7% in the second quarter to $5.3 million compared to the same period last fiscal year and were down 11% year-to-date to $11.3 million compared to the same period last fiscal year.
The WD-40 Specialist® product line was launched in fiscal year 2012 and was expanded into additional countries in the first half of fiscal year 2013. During the second quarter of fiscal year 2013, the company also launched three additional products in the WD-40 Specialist line: WD-40 Specialist Dirt & Dust Resistant Dry Lube, WD-40 Specialist Electrical Contact Cleaner Spray and WD-40 Specialist Machine & Engine Degreaser. The company recently launched the WD-40 Specialist Motor Bike line in the UK as well.
"We are pleased with the performance of the WD-40 Specialist product line and what it does to bring the power of the WD-40 shield to new products that meet the needs of our end-users," Ridge said. "As we planned, we continue to expand the WD-40 Specialist product line with new product offerings and in new categories, and later this year we will introduce a new line of products in the U.S. in the lawn and landscape arena.
"With our strategic focus on growing the multi-purpose maintenance products business, in March the Board of Directors authorized management to evaluate the strategic alternatives for the homecare and cleaning products in the Americas segment. To date, this evaluation is in its early stages and no decisions have been made relative to the future strategic plans for these brands," Ridge said.
Dividend and Share Buy-Back
As previously announced, WD-40 Company's board of directors declared on Tuesday, March 19, 2013 the regular quarterly cash dividend $0.31 per share payable on April 30, 2013 to shareholders of record on April 12, 2013.
On December 13, 2011, the board of directors authorized a buyback up to $50.0 million of the Company's outstanding shares expiring on December 12, 2013. During the second quarter of 2013, WD-40 Company acquired an additional $4.4 million in shares, bringing the total purchased under this share buy-back plan to $33.7 million.
Revised Fiscal Year 2013 Guidance
WD-40 Company now expects fiscal year 2013 net sales of $356.0 million to $370.0 million. The Company expects net income of $36.5 million to $38.0 million and diluted earnings per share of $2.32 to $2.42 for fiscal year 2013 based on an estimated 15.7 million weighted average shares outstanding. Gross margin for the full year is expected to be close to 50.0%. The Company expects advertising and promotion expenses of 7.0% to 8.0% of net sales. This guidance is based on using average fiscal year 2012 foreign currency exchange rates.
More detailed information will be available in WD-40 Company's Form 10-Q which will be filed on April 8, 2013.
About WD-40 Company
WD-40 Company, with headquarters in San Diego, is a global consumer products company dedicated to delivering unique, high-value and easy-to-use solutions for a wide variety of maintenance needs of "doer" and "on-the-job" users by leveraging and building the brand fortress of the company. The company markets multi-purpose maintenance products – under the WD-40®, and 3-IN-ONE® and BLUE WORKS® brand names. The company also markets homecare and cleaning brands: X-14® mildew stain remover and automatic toilet bowl cleaners, 2000 Flushes® automatic toilet bowl cleaners, Carpet Fresh® and No Vac® rug and room deodorizers, Spot Shot® aerosol and liquid carpet stain removers, 1001® household cleaners and rug and room deodorizers, and Lava® and Solvol® heavy-duty hand cleaners.
WD-40 Company markets its products in 187 countries worldwide and recorded sales of $343 million in fiscal year 2012. Additional information about WD-40 Company can be obtained online at http://www.wd40company.com.
Except for the historical information contained herein, this news release contains forward-looking statements concerning WD-40 Company's outlook for sales, earnings, dividends and other financial results. These statements are based on an assessment of a variety of factors, contingencies and uncertainties considered relevant by WD-40 Company. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements, including the impact of commodity prices, the introduction of new product lines and fluctuating global market conditions, both in the United States and internationally. The company's expectations, beliefs and projections are expressed in good faith and are believed by the company to have a reasonable basis, but there can be no assurance that the company's expectations, beliefs or projections will be achieved or accomplished.
The risks and uncertainties are detailed from time to time in reports filed by WD-40 Company with the SEC, including Forms 8-K, 10-Q, and 10-K, and readers are urged to carefully review these and other documents.
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P&G to Webcast Discussion of Third Quarter 2012/13 Earnings Results on April 24
Press Release: Procter & Gamble – Wed, Apr 3, 2013 8:30 AM EDT.. .
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The Procter & Gamble Company (PG) will webcast a discussion of its third quarter earnings results on Wednesday, April 24, 2013 beginning at 8:30 a.m. ET. Chairman of the Board, President and Chief Executive Officer Robert A. McDonald, Chief Financial Officer Jon R. Moeller, and Senior Vice President & Treasurer Teri L. List-Stoll will discuss the quarter’s results via the live webcast.
Media and investors may access the live audio webcast at www.pg.com/investors, beginning at 8:30 a.m. ET. The webcast will also be available for replay.
About Procter & Gamble
P&G serves approximately 4.6 billion people around the world with its brands. The Company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®, Bounty®, Dawn®, Fairy®, Gain®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, Braun®, Fusion®, Ace®, Febreze®, Ambi Pur®, SK-II®, and Vicks®. The P&G community includes operations in approximately 75 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
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Contact:.
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Procter & Gamble
Mandy Wagner, P&G Corporate Media Relations, 513-983-6628
wagner.aj@pg.com
Netflix to Announce First-Quarter 2013 Financial Results
Press Release: Netflix, Inc. – Tue, Apr 2, 2013 3:00 PM LOS GATOS, Calif., April 2, 2013 /PRNewswire/ -- Netflix, Inc. (NFLX) today announced it will post its first-quarter 2013 financial results and business outlook on its investor relations website at http://ir.netflix.com on Monday, April 22, 2013, at approximately 1:05 p.m. Pacific Time. At that time the company will issue a brief advisory release via newswire containing a link to the first-quarter 2013 financial results and letter to shareholders on its website.
(Logo: http://photos.prnewswire.com/prnh/20101014/SF81638LOGO)
Netflix management will host a live Q&A session at 3:00 p.m. Pacific Time to discuss the Company's financial results and business outlook, with questions submitted via email. Please email your questions to ir@netflix.com. The company will read the questions aloud on the call and respond to as many questions as possible.
A live webcast and the replay of the earnings Q&A session can be accessed on the investor relations section of the Netflix website at http://ir.netflix.com. For those without access to the Internet, the dial-in for the live earnings Q&A session is: (760) 666-3613. The telephone replay of the earnings Q&A session will be available from 6:00 p.m. Pacific Time on April 22, 2013 through midnight on April 26, 2013. To listen to the replay, call (855) 859-2056, conference ID# 29873296.
About Netflix, Inc.
Netflix is the world's leading Internet television network with more than 33 million members in 40 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Learn more about how Netflix (NFLX) is pioneering Internet television at www.netflix.com or follow Netflix on Facebook and Twitter.
Newell Rubbermaid To Webcast First Quarter 2013 Earnings Results
Press Release: Newell Rubbermaid Inc. – 5 hours ago.. .
ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid (NWL) today announced its first quarter 2013 earnings results will be released Friday, May 3, prior to market open and will be followed by a live webcast at 8:30 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
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Contact:.
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Newell Rubbermaid Inc.
Nancy O’Donnell, +1 (770) 418-7723
Vice President, Investor Relations
or
David Doolittle, +1 (770) 418-7519
Vice President, Corporate Communications
Travelzoo Reports First Quarter 2013 Results
Press Release: Travelzoo – 4 hours ago.. .
Travelzoo Inc. (TZOO):
• Revenue of $42.2 million, up 7% year-over-year
• Net income of $5.6 million, up 49% year-over-year
• Earnings per share of $0.36, compared to $0.23 (GAAP) / $0.42 (non-GAAP) in the prior-year period
• Cash flow from operations of $6.5 million
Travelzoo Inc., a global Internet media company, today announced financial results for the first quarter ended March 31, 2013, with revenue of $42.2 million, an increase of 7% year-over-year. Operating profit was $8.0 million. Net income was $5.6 million, with earnings per share of $0.36, up from $0.23 in the prior-year period. Non-GAAP earnings per share was $0.36, down from $0.42 in the prior-year period.
“We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe,” said Chris Loughlin, chief executive officer. “We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.”
North America
North America business segment revenue increased 5% year-over-year to $30.2 million. Operating profit for the first quarter was $5.5 million, or 18% of revenue, down from $7.1 million, or 25% of revenue, in the prior-year period. The decrease in operating profit was a result of increased expenses related to sales force expansion, hotel booking platform development, traffic acquisition and subscriber marketing.
Europe
Europe business segment revenue increased 14% year-over-year to $12.4 million. In local currency terms, revenue for the first quarter increased 14% year-over-year. Operating profit was $2.5 million, or 21% of revenue, up from an operating profit of $2.4 million, or 23% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 22.9 million as of March 31, 2013, up 5% from March 31, 2012. In North America, total unduplicated number of subscribers was 16.3 million as of March 31, 2013, up 3% from March 31, 2012. In Europe, total unduplicated number of subscribers was 6.5 million as of March 31, 2013, up 9% from March 31, 2012.
Income Taxes
Income tax expense was $2.5 million, compared to $2.9 million in the prior-year period. The non-GAAP effective income tax rate was 31%, up from 30% in the prior-year period.
Asset Management
During the first quarter 2013, Travelzoo generated $6.5 million of cash from operating activities. Accounts receivable increased by $648,000 over the prior-year period to $15.3 million. Accounts payable increased by $4.5 million over the prior-year period to $26.9 million. Capital expenditures were $900,000, up from $678,000 in the prior-year period. Travelzoo exited the first quarter with $65.1 million in cash and cash equivalents.
Non-GAAP Measures
To give an enhanced view of the company's operating performance, management has calculated non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share by excluding the $3 million charge related to our unexchanged promotional merger shares in the prior-year period. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of non-GAAP operating income, non-GAAP net income, and non-GAAP earnings share are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charge related to our unexchanged promotional merger shares in the prior- year period, today's reporting should not be viewed as the company's intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss first quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
• download the management presentation (PDF format) to be discussed in the conference call;
• access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Travelzoo Reports First Quarter 2013 Results
Press Release: Travelzoo – 4 hours ago.. .
Travelzoo Inc. (TZOO):
• Revenue of $42.2 million, up 7% year-over-year
• Net income of $5.6 million, up 49% year-over-year
• Earnings per share of $0.36, compared to $0.23 (GAAP) / $0.42 (non-GAAP) in the prior-year period
• Cash flow from operations of $6.5 million
Travelzoo Inc., a global Internet media company, today announced financial results for the first quarter ended March 31, 2013, with revenue of $42.2 million, an increase of 7% year-over-year. Operating profit was $8.0 million. Net income was $5.6 million, with earnings per share of $0.36, up from $0.23 in the prior-year period. Non-GAAP earnings per share was $0.36, down from $0.42 in the prior-year period.
“We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe,” said Chris Loughlin, chief executive officer. “We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.”
North America
North America business segment revenue increased 5% year-over-year to $30.2 million. Operating profit for the first quarter was $5.5 million, or 18% of revenue, down from $7.1 million, or 25% of revenue, in the prior-year period. The decrease in operating profit was a result of increased expenses related to sales force expansion, hotel booking platform development, traffic acquisition and subscriber marketing.
Europe
Europe business segment revenue increased 14% year-over-year to $12.4 million. In local currency terms, revenue for the first quarter increased 14% year-over-year. Operating profit was $2.5 million, or 21% of revenue, up from an operating profit of $2.4 million, or 23% of revenue in the prior-year period.
Subscribers
Travelzoo had a total unduplicated number of subscribers in North America and Europe of 22.9 million as of March 31, 2013, up 5% from March 31, 2012. In North America, total unduplicated number of subscribers was 16.3 million as of March 31, 2013, up 3% from March 31, 2012. In Europe, total unduplicated number of subscribers was 6.5 million as of March 31, 2013, up 9% from March 31, 2012.
Income Taxes
Income tax expense was $2.5 million, compared to $2.9 million in the prior-year period. The non-GAAP effective income tax rate was 31%, up from 30% in the prior-year period.
Asset Management
During the first quarter 2013, Travelzoo generated $6.5 million of cash from operating activities. Accounts receivable increased by $648,000 over the prior-year period to $15.3 million. Accounts payable increased by $4.5 million over the prior-year period to $26.9 million. Capital expenditures were $900,000, up from $678,000 in the prior-year period. Travelzoo exited the first quarter with $65.1 million in cash and cash equivalents.
Non-GAAP Measures
To give an enhanced view of the company's operating performance, management has calculated non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share by excluding the $3 million charge related to our unexchanged promotional merger shares in the prior-year period. The company believes these metrics assist investors to assess certain business trends in the same way that these trends are analyzed by management. The discussion of non-GAAP operating income, non-GAAP net income, and non-GAAP earnings share are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. As the only difference between GAAP and non-GAAP measures is the charge related to our unexchanged promotional merger shares in the prior- year period, today's reporting should not be viewed as the company's intention to report non-GAAP measures in future periods. Refer to the “Reconciliation of GAAP to Non-GAAP Measures” section of this release for a summary of these non-GAAP measures and their reconciliation to the reported GAAP measures.
Conference Call
Travelzoo will host a conference call to discuss first quarter results at 11:00 a.m. ET today. Please visit http://www.travelzoo.com/earnings to
• download the management presentation (PDF format) to be discussed in the conference call;
• access the webcast.
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.
Travelzoo Q1 2013 Earnings Conference Call Thursday, April 18 at 11:00 AM ET
Press Release: Travelzoo – Thu, Apr 11, 2013 9:30 PM EDT
NEW YORK--(BUSINESS WIRE)--
Travelzoo Inc. (TZOO):
Travelzoo Inc. will host a conference call to discuss the Company’s financial results for the first quarter ended March 31, 2013. Travelzoo Inc. will issue a press release reporting its results before the market opens on April 18, 2013.
A live webcast of Travelzoo’s Q1 2013 earnings conference call can be accessed at http://ir.travelzoo.com/earnings.cfm. The webcast will be archived within 24 hours of the end of the call and will be available through the same link
About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel, entertainment and local companies. Travelzoo Deal Experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.
Contact:.
Media:
Travelzoo, North America
Christie McConnell, 212-484-4912
cmcconnell@travelzoo.com
The Toro Company Reports Record First Quarter Results
• First quarter revenues grow 4.9 percent to a record $444.7 million
• Net earnings per share up over 60 percent to a record $0.53
• Company raising full-year earnings guidance; well positioned entering key selling season
• Commitment to building micro irrigation global presence continues with acquisition in China
Press Release: The Toro Company – Thu, Feb 21, 2013 8:30 AM
BLOOMINGTON, Minn.--(BUSINESS WIRE)--
The Toro Company (TTC) today reported net earnings of $31.4 million, or $0.53 per share, on a net sales increase of 4.9 percent to $444.7 million for its fiscal first quarter ended February 1, 2013. In the comparable fiscal 2012 period, the company delivered net earnings of $19.9 million, or $0.33 per share, on net sales of $423.8 million. The “per share” data for the comparative periods has been adjusted to reflect a two-for-one stock split effective June 29, 2012.
“Our record-setting first quarter, driven by particularly strong channel demand for large turf equipment and the continued growth of micro irrigation sales, propelled us to a solid start for the year,” said Michael J. Hoffman, Toro’s chairman and chief executive officer. “Our financial performance benefitted from both accelerated sales related to pre-Tier 4 product shipments and early professional end-user demand, along with positive effects of our productivity initiatives.”
“The optimistic outlook of customers across our businesses is encouraging, as we prepare for our primary selling season,” said Hoffman. “Barring new economic headwinds, we anticipate the momentum our golf, landscape contractor and micro irrigation businesses enjoyed this past quarter will carry into spring. Our residential business retail potential looks solid as well. Recent snowfall across our primary snow markets, including the record-breaking blizzard that struck the Northeast, generated additional revenue for our contractor customers and is helping clear field inventories, thus boosting prospects for our autumn pre-season snow sales.”
“Additionally, along with positive market conditions,” Hoffman added, “our latest professional and residential product innovations, like the Reelmaster® 3550-D (the lightest golf fairway mower on the market), new 30” professional walk power mowers for landscape contractors and the newly Toro-branded products from our Astec and Stone Construction acquisitions from 2012, are helping create further opportunities.”
The Toro Company is also announcing today that it has entered into an agreement to acquire a Chinese micro-irrigation company, subject to applicable regulatory approval and other customary closing conditions. Terms of the transaction were not disclosed. Hoffman commented, “Although small, this acquisition will help strengthen our presence in China, a critical growth market, by establishing a micro irrigation base of operations.”
The company continues to expect revenue growth of about 4 to 5 percent for fiscal 2013. With the expectations that the accelerated margin and earnings benefit of the Tier 4 transition will moderate through the year, the earnings expectations are being raised largely to reflect the benefit of tax rate improvement discussed below. The company now expects fiscal 2013 net earnings to be about $2.40 to $2.45 per share. For the second quarter the company expects to report net earnings per share of about $1.20.
SEGMENT RESULTS
Professional
• Professional segment net sales for the first quarter totaled $329.1 million, up 16 percent from the same period last year. Domestic shipments of large turf equipment were up due to channel demand. The early successful launch of products from the Astec and Stone acquisitions, also contributed to the professional businesses’ strong quarter. Furthermore, increased capacity enabled the company to capitalize on steadily growing demand for micro-irrigation systems to meet the ever-growing global food requirements. Results in the professional segment were somewhat offset by soft international sales activity.
• Professional segment earnings totaled $60.7 million, up 44.3 percent from $42.1 million last year.
Residential
• Residential segment net sales for the first quarter totaled $120.9 million, down 12.1 percent from the first quarter last year. The decline reflects reduced retail demand for snow products due to unseasonable winter weather in North America. However, residential segment results benefitted from improved sales of Pope products in Australia.
• Residential segment earnings for the fiscal 2013 first quarter totaled $12.2 million, down 3.6 percent from $12.6 million in the same period last year.
OPERATING RESULTS
Gross margin for the fiscal 2013 first quarter increased 270 basis points from last year to 37.3 percent. The margin growth was primarily the result of product mix, pricing, and progress on our productivity efforts.
Selling, general and administrative (SG&A) expense as a percent of sales for the fiscal 2013 first quarter was up 30 basis points to 26.9 percent. The SG&A increase as a percent of sales reflects incremental costs associated with the acquisition of Astec and Stone, as well as start-up costs for the new distribution facility in Iowa.
First quarter operating earnings as a percent of sales were 10.4 percent compared to 8 percent a year ago.
First quarter interest expense was down 4 percent to $4.2 million due to lower average debt levels.
The effective tax rate for the quarter was 27.7 percent compared with 33.8 percent last year. The lower tax rate was primarily due to the retroactive extension of the Federal Research and Engineering Tax Credit.
Accounts receivable at the end of the fiscal 2013 first quarter totaled $180.3 million, up 2.7 percent from the same period last year, on a sales increase of 4.9 percent. Net inventories for the first quarter were $335.7 million, up 23.2 percent. The increase includes product to support the Tier 4 transition, snow throwers and inventory from the Astec and Stone acquisitions. Trade payables increased 10.9 percent for the first quarter to $168.3 million.
About The Toro Company
The Toro Company (TTC) is a leading worldwide provider of innovative turf, landscape, rental and construction equipment, and irrigation and outdoor lighting solutions. With sales of more than $1.9 billion in fiscal 2012, Toro’s global presence extends to more than 90 countries through strong relationships built on integrity and trust, constant innovation, and a commitment to helping customers enrich the beauty, productivity and sustainability of the land. Since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. More information is available at www.toro.com.
LIVE CONFERENCE CALL
February 21, 10:00 a.m. CST
www.thetorocompany.com/invest
The Toro Company will conduct its earnings call and webcast for investors beginning at 10:00 a.m. CST on February 21, 2013. The webcast will be available at www.streetevents.com or at www.thetorocompany.com/invest.Webcast participants will need to complete a brief registration form and should allocate extra time before the webcast begins to register and, if necessary, download and install audio software.
Safe Harbor
Statements made in this news release, which are forward-looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied. These uncertainties include factors that affect all businesses operating in a global market as well as matters specific to Toro. Particular risks and uncertainties that may affect the company’s operating results or overall financial position at the present include: slow or negative growth rates in global and domestic economies, resulting in rising or persistent unemployment and weakened consumer confidence; the threat of terrorist acts and war, which may result in contraction of the U.S. and worldwide economies; drug cartel-related violence, which may disrupt our production activities and maquiladora operations based in Juarez, Mexico; fluctuations in the cost and availability of raw materials and components, including steel, engines, hydraulics, resins and other commodities and components; fluctuating fuel and other costs of transportation; the impact of abnormal weather patterns, natural disasters and global pandemics; the level of growth or contraction in our key markets; government and municipal revenue, budget and spending levels, which may negatively impact our grounds maintenance equipment business in the event of reduced tax revenues and tighter government budgets; dependence on The Home Depot as a customer for the residential segment; elimination of shelf space for our products at retailers; inventory adjustments or changes in purchasing patterns by our customers; market acceptance of existing and new products; increased competition; our ability to achieve the revenue growth, operating earnings and employee engagement goals of our multi-year employee initiative called “Destination 2014”; our increased dependence on international sales and the risks attendant to international operations and markets, including political, economic and/or social instability in the countries in which we manufacture or sell our products resulting in contraction or disruption of such markets; credit availability and terms, interest rates and currency movements including, in particular, our exposure to foreign currency risk; our relationships with our distribution channel partners, including the financial viability of distributors and dealers; our ability to successfully achieve our plans for and integrate acquisitions and manage alliances or joint ventures, including Red Iron Acceptance, LLC; the costs and effects of changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters, and Tier 4 emissions requirements; unforeseen product quality or other problems in the development, production and usage of new and existing products; loss of or changes in executive management or key employees; ability of management to manage around unplanned events; our reliance on our intellectual property rights and the absence of infringement of the intellectual property rights of others; and the occurrence of litigation or claims. In addition, factors that could affect completion of the proposed acquisition of a micro-irrigation business in China including whether and when the required regulatory approvals will be obtained, and whether and when the other closing conditions will be satisfied. In addition to the factors set forth in this paragraph, market, economic, financial, competitive, legislative, governmental, weather, production and other factors identified in Toro's quarterly and annual reports filed with the Securities and Exchange Commission, could affect the forward-looking statements in this press release. Toro undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.
Lakes Entertainment, Inc. Announces Modification of Arrangement with Jamul
MINNEAPOLIS--(BUSINESS WIRE)--
Lakes Entertainment, Inc. (LACO) announced that it has modified its arrangement with the Jamul Indian Village (“Jamul”) relating to monies it advanced to Jamul for a potential casino development on Jamul’s trust land in San Diego County, California.
Recently, Penn National Gaming, Inc. (“Penn”) announced that a wholly-owned subsidiary of Penn entered into definitive agreements with Jamul to jointly develop a Hollywood-branded casino and resort on Jamul’s trust land in San Diego County, California (“Penn Casino”). The proposed $360 million development will include a three-story, 203,000-gross square-foot casino with at least 1,700 slot machines, 50 live table games including poker, multiple restaurants, bars and lounges and a partially enclosed parking structure with over 1,900 spaces.
Lakes previously had a Pre-Development, Development and Financing Arrangement Agreement (“Agreement”) with the Tribe to develop a casino on the same trust land, but terminated the Agreement in March, 2012. Lakes had loaned Jamul approximately $57.5 million under the Agreement.
Pursuant to a Subordination and Intercreditor Agreement Lakes entered into with Jamul and Penn related to the Penn Casino, Lakes agreed to modify the terms of its outstanding debt with Jamul to reflect that the total debt outstanding is currently $60 million, and that interest on such debt will accrue at 4.25% after the Penn Casino opens. Additionally, Lakes has agreed that it will subordinate repayment of its debt until the senior financing is paid in full, but that current interest on the subordinated debt will be paid to Lakes on a quarterly basis when the Penn Casino opens so long as there is no default under the senior financing agreement. When the senior financing is paid in full, Lakes will receive repayment of its outstanding principal and interest. Lakes also entered into ten-year option agreement with Penn that grants Penn the right to purchase approximately 98 acres of land which Lakes owns adjacent to Jamul’s trust land. The purchase price for the land is $7 million and increase annually by 1%.
Tim Cope, President of Lakes, stated, “We are happy for the Jamul Tribe as it continues to pursue its gaming opportunity. This is also good news for Lakes, as it provides for the potential opportunity for Lakes to recover its financial investment in the Jamul project.
About Lakes Entertainment
Lakes Entertainment, Inc. currently owns the Rocky Gap Lodge & Golf Resort near Cumberland, Maryland. Lakes has a management agreement with the Shingle Springs Band of Miwok Indians to manage the Red Hawk Casino. Lakes has an investment in Rock Ohio Ventures, LLC’s casino developments in Ohio.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Lakes Entertainment, Inc.) contains statements that are forward-looking, such as statements relating to plans for future expansion and other business development activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, need for potential future financing to meet Lakes’ development needs; those relating to the inability to complete or possible delays in completion of Lakes' casino projects, including various regulatory approvals and numerous other conditions which must be satisfied before completion of these projects; possible termination or adverse modification of management or development contracts; Lakes operates in a highly competitive industry; possible changes in regulations; reliance on continued positive relationships with Indian tribes and repayment of amounts owed to Lakes by Indian tribes; possible need for future financing to meet Lakes' expansion goals; risks of entry into new businesses; reliance on Lakes' management and litigation costs. For more information, review the company's filings with the Securities and Exchange Commission.
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Contact:.
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Lakes Entertainment, Inc.
Timothy Cope, 952-449-7030.
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Wireless Telecom Group Announces Fourth Quarter and Year-End 2012 Financial Results Including Quarterly Revenue Growth of 14% and Net Income Growth of 40%
Press Release: Wireless Telecom Group, Inc. – Mon, Apr 1, 2013 8:00 AM EDT.. .
WTT
1.789
+0.069
PARSIPPANY, N.J.--(BUSINESS WIRE)--
Wireless Telecom Group, Inc. (NYSE MKT: WTT) announced today results for the fourth quarter and twelve months ended December 31, 2012.
For the quarter ended December 31, 2012, the Company reported net sales of $8,216,000, compared to $7,209,000 for the same period in 2011, an increase of 14.0%.
The Company also reported net income of $1,005,000, or $0.04 per diluted share for the fourth quarter of 2012, compared to net income of $716,000, or $0.03 per diluted share, for the fourth quarter of 2011, an increase of 40.4%.
For the twelve months ended December 31, 2012, the Company reported net sales of $29,595,000, compared to $26,823,000 for the same period in 2011, an increase of 10.3%.
The Company also reported net income of $3,171,000, or $0.13 per diluted share for the twelve months ended 2012, compared to net income of $2,430,000, or $0.10 per diluted share, for the same period of 2011, an increase of 30.5%.
Paul Genova, CEO of Wireless Telecom Group, Inc. stated, “We are pleased by each of our segments’ contribution to our 2012 consolidated revenue and net income. The Company experienced increasing demand throughout 2012 for its Network Solutions products, particularly for applications found in Distributed Antenna Systems. Also, during 2012, our Test & Measurement segment successfully completed delivery of its Peak Power Meters in fulfillment of our $3,000,000 order with the U.S. Navy.”
Genova commented, “By continuing to focus on each of these segments and their related markets, combined with ongoing strategic cost reduction and resource allocation efforts, we believe the Company is well positioned for further improvements in revenue, net income, return on capital and utilization of working capital.”
Genova continued, “During 2012, we were able to effectively utilize our cash reserves through the repurchase of 635,630 shares of our common stock at an average price per share of $1.22. Including the effect of the share repurchases, we were able to increase cash and equivalents from $12,089,782 to $12,969,513. Even more significantly, we were able to achieve an increase in book value per share by 10% from $1.36 to $1.50. We will continue to pursue strategies that we believe will help to increase overall shareholder value.”
Wireless Telecom Group designs and manufactures radio frequency (RF) and microwave-based products for wireless and advanced communications industries and markets its products and services worldwide under the Boonton, Microlab and Noisecom brands. Its complementary suite of high performance components and instruments includes RF combiners and broadband combiner boxes for in-building distributed antenna systems deployments, RF power splitters and diplexers, hybrid couplers, peak power meters, signal analyzers, noise modules, precision noise and generators. The Company serves both commercial and government markets with workflow-oriented, WiFi, WiMAX, satellite, cable, radar, avionics, medical, and computing applications. Wireless Telecom Group is headquartered in Parsippany, New Jersey, in the New York City metropolitan area, and maintains a global network of Sales and Service offices for excellent product service and support.
Wireless Telecom Group’s website address is http://www.wtcom.com. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011
SELECTED FINANCIAL RESULTS
(In thousands, except per share amounts)
Three months ended
Twelve months ended
December 31,
December 31,
2012
2011
2012
2011
Statement of Operations Data:
Net sales
$ 8,216
$ 7,209
$ 29,595
$ 26,823
Gross profit
4,132
3,466
14,777
12,467
Operating expenses
Research and development
633
586
2,524
2,261
Sales and marketing
1,255
1,073
4,603
4,497
General and administrative
1,420
1,166
4,892
3,859
Total operating expenses
3,308
2,825
12,019
10,617
Interest and other (income) - net
(40)
(6)
(23)
(141)
Income from operations
before income taxes
864
647
2,781
1,991
Net income
$ 1,005
$716
$ 3,171
$ 2,430
Net Income per common share:
Basic
$0.04
$0.03
$0.13
$0.10
Diluted
$0.04
$0.03
$0.13
$0.10
Weighted average shares outstanding:
Basic
24,069
24,788
24,259
24,963
Diluted
24,439
25,085
24,633
25,138
.
December 31,
December 31,
2012
2011
Balance Sheet Data:
Cash & cash equivalents
$ 12,970
$ 12,090
Working capital
$ 26,516
$ 23,759
Total assets
$ 41,230
$ 37,702
Total liabilities
$ 5,315
$ 4,489
Shareholders’ equity
$ 35,915
$ 33,213
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Contact:.
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Wireless Telecom Group, Inc.
Robert Censullo, 973-386-9696
Here is their fearless leader of Newell. The Economist that earned an MBA and then tried a 14 billion mega merger after gaining De facto control of The Church of Jesus Christ of Latter-Day Saints at the close of the Sixth Seal.
http://en.wikipedia.org/wiki/Daniel_C._Ferguson
The "Son of Perdition" interviewed
Newell and Rubbermaid Corporation: The Critical Decisions That Make or Break the Deal
The top deal makers focus on four key imperatives that make or break the deal, and they are disciplined in their decision making. Kellogg's purchase of Keebler shows how discipline can put an acquisition on the right track and keep it there. Newell's 1999 acquisition of Rubbermaid Corporation reveals the high cost of weak discipline.
When Newell's top managers approached their counterparts at Rubbermaid in 1999 about the possibility of a merger, it looked like a deal from heaven. Newell had a 30-year track record of building shareholder value through successful acquisitions of companies like Levelor blinds, Sharpie pens, and Calphalon cookware. Rubbermaid, which had recently topped Fortune's list of the most admired U.S. companies, was a true blue-chip firm. With its long record of innovation and smart brand marketing, it was very profitable and growing quickly.
Because Newell and Rubbermaid both sold household products through essentially the same sales channels, the cost synergies from the combination loomed large. Newell expected to reap the benefits of Rubbermaid's high-margin branded products-a range of low-tech plastic items, from laundry baskets to Little Tikes toys-while fixing a number of weak links in its supply-chain management.
Rubbermaid's executives were encouraging: As long as the deal could be done quickly, they said, they'd give Newell an exclusive right to acquire their company. Eager to seize the opportunity, Newell rushed to complete the $5.8 billion megamerger-a deal ten times larger than any it had done before.
But the deal from heaven turned out, to use BusinessWeek's phrase, to be the "merger from hell." Instead of lifting Newell to a new level of growth, the acquisition dragged the company down. In 2002, Newell wrote off $500 million in goodwill, leading its former CEO and chairman Daniel Ferguson to admit, "We paid too much." By that time, Newell shareholders had lost 50% of their value; Rubbermaid shareholders had lost 35%.
The failure can be traced to errors at each of the key decisions:
How not to pick a target? Newell knew its growth strategy required a big acquisition-its prospects for organic growth from existing products were limited. With the Rubbermaid deal, it thought it was building scale and gaining a strong brand-just what it needed to go toe-to-toe with buyers at the big discount chains like Wal-Mart and Target. But at a deeper level, the deal did not fit. While Rubbermaid and Newell were both selling a lot of household basics to the same customers, the two companies had fundamentally different bases of competition. Rubbermaid competed on the basis of innovation and brand, whereas Newell competed on the basis of low-cost production. Their production processes and costs were different; their value propositions were different. They were actually in very different businesses, and Rubbermaid's strategy wasn't going to work for the markets that Newell was relying on.
Which deals smell bad? Although Newell had made many modest acquisitions over the years, the Rubbermaid deal was something entirely different. Neither minnow nor fish, Rubbermaid was a whale-ten times the size of the largest acquisition Newell had previously attempted. Rubbermaid had also worked hard, within legal bounds, to make its business look a whole lot prettier than it really was.
By agreeing to complete such a vast deal after only three weeks of due diligence, Newell doomed itself to a cursory examination of Rubbermaid, one that provided no time to ask, never mind answer, critical questions about the health of Rubbermaid's business. The reality was that beneath Rubbermaid's well-polished exterior, there was a raft of problems, from extensive price discounting for wholesalers to poor customer service to weak management. As a result, Newell never arrived at a clear sense of what the company was really worth. Recalls Ferguson: "We should have paid $31 a share, but we paid $38."
A case of overintegration? Newell took an undisciplined, broad-brush approach to combining Rubbermaid's complex operations into its own. The putative investment thesis-to broaden Newell's scope in branded products-should have called for selective integration. Instead, Newell attempted to "Newellize" Rubbermaid, and in doing so squeezed out what little top talent was left at the acquired company. The results tell the story: Newell predicted $300 million in cost savings and $50 million in revenue increases in the first two years of the Rubbermaid merger. But when the dust settled in 2001, Rubbermaid had delivered no new sales and only $230 million in cost savings, most of it wiped out by increases in the price of polymer resins, the most important of Rubbermaid's raw materials.
What did Newell forget to do when the deal strayed? Newell, a low-cost producer of largely unbranded housewares, had to learn how to leverage a high-margin brand when it bought Rubbermaid. But it sorely underestimated this challenge. The company's warning system should have set off alarm bells: synergies failed to materialize and gaps in know-how emerged. As it turned out, however, it took years to fix the problems.
There is a silver lining to the story. Newell did ultimately learn important lessons, but getting the acquisition on track entailed jarring disruptions to the business. Says Ferguson: "We had to replace a lot of people. The guys now running Newell understand brand power and how to market it. That's a revolution. It takes a different mind-set, a different group of people." Ferguson ultimately came to see that he needed to move the company into turnaround mode, but it took a while for him to find the right person to lead the charge. He started by looking inside the company. He had retired as chairman of the board in 1997 and made his CEO, William Sovey, chairman, promoting insider John McDonough to CEO. In late 2000, less than three years later, McDonough was gone and Sovey was serving as interim CEO. In 2001, Ferguson, still a company director, began looking for help outside Newell's walls. He hired Joseph Galli, a veteran of Black & Decker, as CEO-and it was Galli's fresh perspective that began to stabilize the situation.