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I might be joining you for a short in NDE if it doesn't gap down too much at the open...
Subprime mortgage woes may be spreading
Losses are creeping up on so-called Alt-A home loans
Alistair Barr, MarketWatch
Last Update: 2:52 PM ET Mar 11, 2007
SAN FRANCISCO (MarketWatch) -- Problems in the subprime mortgage business may be spreading to other parts of the home loan market.
Losses are creeping up on so-called Alt-A loans, which are considered less risky than subprime mortgages, but may have lower credit quality than "prime" loans.
That's sparked concern among investors in companies such as IndyMac Bancorp (NDE : IndyMac Bancorp Inc)
Subprime mortgages are offered to lower-income borrowers with spotty credit records. The sector has descended into crisis recently as rising interest rates and stagnant home prices have left more borrowers struggling to meet monthly payments.
Alt-A loans were originally designed for borrowers with clean credit records, but with other issues that often meant they provided fewer documents or even no documents showing what they earned. These loans were attractive to mortgage investors because they offered higher yields than traditional "prime" home loans, but were underpinned by the cleaner credit records of the borrowers.
The popularity of Alt-A mortgages exploded in recent years. A record $400 billion of these loans were originated in 2006. They accounted for 13.4% of all mortgages offered last year, up from 2.1% in 2003, according to industry publisher Inside Mortgage Finance.
But as the Alt-A business grew, more of these loans were offered to less creditworthy borrowers, creating what Mark Adelson, head of structured finance research at Nomura Securities International, calls "Alt-B" products.
"The Alt-A market has absorbed and disguised a portion of the subprime space," he said. "You can debate how to define these loans, but many have ended up being an Alt-A product with subprime deficiencies."
Surging house prices earlier this decade are partly to blame, Adelson said.
When buyers realized they couldn't afford the home they wanted, they took out alternative mortgages that helped them pay the higher price. Alt-A mortgages requiring few documents - often called stated-income loans -- allowed buyers to inflate their earnings and get a bigger loan, he explained.
"In the past few years, Alt-A loans were made to weaker and weaker borrowers and the sector expanded downward along credit spectrum," he said. "In doing that, you draw up into the Alt-A space some of the problems that are affecting the subprime space."
Indeed, losses on Alt-A loans were already creeping up at the end of last year: 2.38% of Alt-A loans were at least 60-day delinquent in December, according to First American LoanPerformance, a unit of real estate data specialist First American (FAF : First American Corporation
FAF51.98, +0.84, +1.6%) . That's the highest level since February 2004 and up from 0.93% in August 2005.
Data on Alt-A mortgages that have been packaged up and sold as mortgage-backed securities show the growing popularity of low-documentation and stated-income loans.
More than 80% of Alt-A mortgages that were securitized in 2006 were low-documentation, stated-income loans, according to Inside Mortgage Finance. That's up from 68% in 2005.
Data from LoanPerformance tell a similar story: 58% of all mortgages originated in the fourth quarter of 2006 were low-documentation loans. That was up from 21% at the start of 2000.
In California, which has seen some of the biggest gains in home prices this decade, 86% of all mortgages offered in the fourth quarter were low-documentation loans. That's up from 29% in early 2000, LoanPerformance data show.
Stocks hit
Concerns like these have hit the shares of Alt-A specialists.
IndyMac, the largest Alt-A mortgage lender, has slumped 32% so far this year. Impac, a smaller rival, is down almost 40%.
Michael Perry, chief executive of IndyMac, said earlier this month that the company's stricter underwriting standards have helped it avoid the heavy losses experienced in the subprime sector.
Still, he said he was disappointment with the outlook for 2007 and noted that IndyMac would keep costs under control to compensate.
Countrywide Financial shares have fallen 14% this year. About 15% of the company's mortgage origination in 2006 was Alt-A loans, lower than some rivals, according to Inside Mortgage Finance.
More than three quarters of the loans IndyMac originated last year were Alt-A mortgages. Over 90% of Impac's loans were Alt-A in 2006, Inside Mortgage Finance reported recently.
Even General Motors, the largest carmaker in the world, has been hit by Alt-A concerns. The company's mortgage finance business, Residential Capital Group, was the third-largest Alt-A originator in 2006. Almost half of all the mortgages the business originated last year were Alt-A loans, according to Inside Mortgage Finance.
GM Chief Executive Rick Wagoner admitted at the Geneva auto show on Wednesday that loans to high-risk customers have hurt the automaker's former financing unit, according to the Wall Street Journal.
GM shares are up more than 5% so far this year. However, the stock has dropped more than 15% since the middle of February.
Alistair Barr is a reporter for MarketWatch in San Francisco.
LOL! eom.
CNBC just said 1,100 investors have been called in to Bear Stearns for an emergency meeting on the subprime situation.
HDNG - Sold my starter @ $24.18 from $23.70. Experts have mentioned the Yen carry trade, subprime blowup, and slow housing as causes of the sell off.
All of them seem to have overlooked my purchase and hold of this momo stock.
Happy to be out with a little lunch money.
Keeping on watch. Could be a nice runner into next earnings but I'm going mostly cash in this market and just day trading or holding shorts.
Like JSDA long term. Hoping for a pullback to get long. Their new strategy should provide some kick ass growth.
What's your thinking on NDE? I thought they were only about 4% subprime and confirmed that the $2 Div was safe.
Just throwing the baby out with the bath water?
TIA,
Paint
Futures Flying on Payroll Data 97 vs. 100 but whisper number was much lower.
Real Story from MSNBC...Where's Leno when you need him?
Legless panda needs a hand to improve sex life
BEIJING - An animal research center in northern China has appealed to the world for help to fashion an artificial leg for a panda that lost a limb -- along with its sex life -- in a fight, local media reported on Thursday.
In December, a resident of Dajiangou village in Shaanxi province stumbled upon a group of pandas fighting, the Beijing News said.
One seriously injured panda, a two- or three-year-old female that rescuers named “Niu Niu” (girl), was taken to an animal rescue center and saved, but lost two-thirds of its front left leg.
Full Story...
http://www.msnbc.msn.com/id/17531413/
NEW New Century REIT discloses a lender extends $265 mln in financing (3.87 -1.29) -Update-
From today's 8-K: "One of the Company's lenders has extended to the Company $265 million in financing secured by the Company's REIT mortgage loan portfolio and certain residual assets. The net proceeds from the financing will be used to refinance and/or satisfy some of the Company's existing obligations. This lender has also provided financing to the Company to refinance the remaining balance of approximately $710 million in mortgage loans currently financed through another lending facility. This refinancing was undertaken in response to that lender's notice to the Company exercising its rights to effect a repurchase by the Company of the loans and other assets it had financed for the Company. Furthermore, the Company is in discussions with lenders and other third parties regarding a refinancing and other alternatives to obtain additional liquidity. No assurance can be given that any of these discussions will be successful. The Company has not yet obtained waivers of the net income covenant from its remaining five financing arrangements since filing the Form 12b-25 on March 2, 2007. In addition, the Company has received an aggregate of approximately $150 million of margin calls, approximately $80 million of which has been satisfied. The Company has approximately $70 million in outstanding margin calls from five lenders. The Company has only been able to fund a portion of its loans this week. In addition, its capacity to fund new originations is substantially limited due to its lenders' restrictions or refusals to allow the Company to access their financing arrangements. The Company has been in frequent discussions with its lenders to identify ways to address their concerns in order to allow a greater funding volume in the near term. However, there can be no assurance that these efforts will succeed. As a result of the Company's current constrained funding capacity, the Company has elected to cease accepting loan applications from prospective borrowers effective immediately while the Company seeks to obtain additional funding capacity. The Company expects to resume accepting applications as soon as practicable, however, there can be no assurance that the Company will be able to resume accepting applications."
MA moving my stop to break even. eom.
CNBC just reported the Ch 11 rumor. eom.
MA - Short @ $102.42 Chart looks like it might be starting to roll over. If support around $100 fails it should be an easy trip to $90.
Stop loss $103.50
NEW - Hearing rumors they are filing Ch 11 today. Looks like the end is near.
HEPH - Took a very small starter @ $3.02 for kicks. Trading near cash value. Gov cancelled RFP last night. CC @ 2 P.M.
Stock has lived above $4 for years.
EXTREAMLY RISKY. IMHO.
DEIX - Goldman upgrade! Weeeeeeeee!!!!! Don't recommend buying here if you're not in yet. Wait for a pullback IMHO. I still think it moves higher into earnings.
UBET's guidance is below expectations by .02 to .04 Still not an expensive stock here, hopefully it gets less expensive short term....
Churchill-Magna Announcement Comports with Youbet Business Model
Tuesday March 6, 8:00 am ET
Company Says Q4 Earnings Will Fall Short of Expectations;
Announces Initiation of Annual Earnings Guidance for 2007
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Youbet.com, Inc. (NASDAQ:UBET - News) said today that the objectives espoused by Churchill Downs and Magna Entertainment in their announcement of a content joint venture yesterday validate Youbet's substantial investments in a number of areas including its distribution model for racing content.
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"We applaud the commitment by both companies to invest in wagering integrity, security and product innovations," said Youbet CEO Charles F. Champion. "These are the types of significant expenditures Youbet has made in the past decade to generate appropriate returns for both shareholders and industry stakeholders."
Champion said that Youbet expects to continue to have access to Magna and Churchill content. "While we have not seen any agreements or proposals at this early stage, the joint venture's stated emphasis on broader distribution of racing content bodes well for our non-exclusive business model, which has produced annual increases in handle far in excess of the industry average due to our highly effective targeted marketing of content to a loyal customer base in forty states.
"In addition," he said, "we anticipate that additional competition in the advanced deposit wagering market will have a beneficial impact on the industry's overall levels of wagering growth."
Separately, the company said that one-time costs associated with, among other things, its successful defense against claims brought by TVG with respect to license terms and fee arrangements would cause the company to report a larger than expected loss for the fourth quarter of 2006.
The company also said that it will initiate annual earnings guidance and expects diluted earnings per share of $.15 to $.17 for 2007. The guidance details will be incorporated in the company's year-end release and conference call scheduled for March 13, 2007.
Wow! Are these guys on the ball or what? Just came out this morning...
LEND Accredited Home Lenders downgraded to Hold at Roth Capital- tgt cut to $16 from $31 (16.06 )
Roth Capital downgrades LEND to Hold from Buy and cuts their tgt to $16 from $31 saying until a clearer picture of this new "normality" emerges, and they can evaluate just how profitable the independent monoline mortgage banking model can be, they would advise investors to stay on the sidelines.
Nice Plays! Congrats! eom.
Ameriturd said that the streamer is down. They are doing their best to get it fixed before the open. No promises.
Fuck!!! Ameriturd not giving accurate pre-market quotes. I hope they get this fixed fast.
Wow! NEW just went into crisis mode a couple of minutes ago.
More Blood for the subprimes on Monday...
New Century says it will breach covenants
PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy John Letzing, MarketWatch
Last Update: 8:07 PM ET Mar 2, 2007
SAN FRANCISCO (MarketWatch) - New Century Financial Corp. said late Friday that it will likely breach a major lending covenant with its financial backers, becoming the latest sub-prime lender to slip into crisis.
Shares of New Century (NEW : new century financial corp m com
News , chart , profile , more
Last: 14.65-1.20-7.57%
8:00pm 03/02/2007
Delayed quote dataAdd to portfolio
Analyst
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Discuss
Financials
Sponsored by:
NEW14.65, -1.20, -7.6%) were down almost 25% in after-hours trading Friday, at about $11, after falling more then 7% in the regular session to $14.65.
The company said in a regulatory filing that it expects it will not report at least $1 of net income for the two quarters ended Dec. 31, as stipulated in covenants with its lenders.
New Century said it has received waivers from six of eleven of these lenders, though it has not received waivers from the remaining five.
Some of these waivers will take effect when New Century gets similar waivers from the other lenders that have the two quarter net income covenant, the company said.
New Century also said it is delaying the filing of its financial report for the year ended Dec. 31. The company has previously said it will restate financial results for the first and third quarters of the year to correct errors in the accounting and reporting of loan repurchase losses.
John Letzing is a MarketWatch reporter based in San Francisco.
http://www.marketwatch.com/news/story/new-century-says-wont-meet/story.aspx?guid=%7BC13DE0D3%2D528C%...
SubPrime...Another One Bites the Dust...
Fremont General Corporation to Exit Sub-Prime Residential Real Estate Lending
Friday March 2, 5:58 pm ET
SANTA MONICA, Calif., March 2 /PRNewswire-FirstCall/ -- Fremont General Corporation (the "Company") (NYSE: FMT - News), a nationwide real estate lender doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan ("FIL"), today announced that it intends to exit its sub-prime residential real estate lending operations.
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In light of recent legislative and regulatory events, as well as changing competitive dynamics in the sub-prime market, management and the board of directors have entered into discussions with various parties regarding the sale of this business. To assist in the evaluation of its alternatives, the Company has retained Credit Suisse Securities LLC as its financial advisor.
These moves are consistent with regulatory guidelines issued today, and were prompted by the Company's receipt on February 27, 2007 of a Proposed Cease and Desist Order (the "Proposed Order") from the Federal Deposit Insurance Corporation ("FDIC"). Among other things, it calls for the Company to make a variety of changes designed to restrict the level of lending in its sub-prime residential mortgage business. The Company had already begun taking significant steps in the past year to adapt its sub-prime residential real estate lending business to changing conditions in the mortgage market.
The Proposed Order does not seek any changes in the Company's retail deposit gathering business. As a result, FIL will continue to seek deposits, which will continue to be insured for up to $100,000 by the FDIC.
The Company will also continue to originate commercial real estate loans. This business continues to perform well and remains profitable. The commercial real estate loan portfolio outstanding, as of December 31, 2006, was $6.5 billion and had pre-tax segment earnings of approximately $211 million for all of 2006, and experienced no net charge-offs in 2006. The allowance for loan losses for the commercial real estate portfolio was approximately $194.5 million, or 3.0% of the portfolio, at year end.
The Company said that it expects to file its Form 10-K by March 16, 2007. The Company also said that it filed a Form 12b-25 earlier today with the Securities and Exchange Commission with respect to the delay in the filing of the Company's Annual Report on Form 10-K. The Company said the terms of the Proposed Order are summarized in its filing on Form 12b-25.
"Thanks in part to its very substantial equity and 8 billion retail deposit franchise, Fremont Investment & Loan has significant balance sheet strength and funding capacity that we believe will enable us to exit the sub-prime lending business in an orderly and disciplined way. We also remain a premier commercial real estate lender," said Louis J. Rampino, President and Chief Executive Officer of Fremont General and Chairman of Fremont Investment & Loan. "In addition, we remain in the retail deposit business and continue to provide excellent service to our depositors in our over 70-year-old retail deposit business. Our valued deposit customers should be reassured by both our strong capital level and the fact that deposits at FIL of up to $100,000 are insured by the FDIC."
Regulatory Filings
The Company's periodic reports as filed with the Securities and Exchange Commission ("SEC") can be accessed at www.fremontgeneral.com and on the EDGAR section of the SEC's website at www.sec.gov.
About Fremont General
Fremont General Corporation is a financial services holding company which is engaged in commercial real estate and non-prime residential real estate lending operations on a nationwide basis. At December 31, 2006, Fremont Investment & Loan had commercial real estate loans in its portfolio located in 30 states. During the fourth quarter of 2006, Fremont Investment & Loan originated residential real estate loans in 47 states. Loans originated by the Company are done primarily on a first mortgage basis. To find out more about Fremont General, or to subscribe to the Company's Email Alert feature notification of Company news and events, please visit www.fremontgeneral.com.
Forward-Looking Statements
This news release may contain "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements and the Company's currently reported results are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. These statements and the Company's reported results are not guarantees of future performance and there can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially and adversely from the Company's projected or reported results as a result of significant risks, uncertainties and assumptions that are difficult to predict, including:
* the impact of the Company's withdrawal from the subprime residential
real estate mortgage lending business;
* changes in the interest rate and competitive environments;
* changes in general and specific economic conditions and trends;
* changes in asset and loan valuations and the costs of originating
loans;
* changes in the volumes of loans originated, loans sold, the pricing of
existing and future loans, and the values realized upon the sale of
such loans;
* access to the necessary capital and deposit resources to
fund loan originations and the condition of the whole loan sale and
securitization markets;
* the impact of valuation and other changes in the commercial and
residential real estate markets;
* the effect of litigation, state and federal legislation and
regulations. and development of, and the variability in determining,
the allowance for loan losses;
* the impact of the final terms of the Order on the Company's ability to
conduct its business;
* the impact of changes in federal and state tax laws and
interpretations, including tax rate changes;
* the ability to maintain an effective system of internal and financial
disclosure controls, and to identify and remediate any control
deficiencies, under the requirements of Section 404 of the
Sarbanes-Oxley Act of 2002 and
* other events and factors beyond our control.
For a more detailed discussion of risks and uncertainties, see the Company's public filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements.
--------------------------------------------------------------------------------
Source: Fremont General Corporation
ROTFLMFAO!!!!!! eom.
What kind of a lame post is that? We need to put some fear out there!
Could you please revise that to read, "I just hit market orders on my entire portfolio and I won't be able to post for a few days because I'll be hiding under the bed."
Thanks.
Internet Commerce Corporation Releases Preliminary Guidance for Fiscal Second Quarter 2007
Thursday March 1, 5:00 pm ET
NORCROSS, GA--(MARKET WIRE)--Mar 1, 2007 -- Today Internet Commerce Corporation (ICC) (NasdaqCM:ICCA - News), a leader in business-to-business e-commerce solutions, released preliminary results for fiscal second quarter, ended January 31, 2007.
ICC's preliminary results for second quarter are as follows:
-- Revenue will be approximately $5.2 to $5.3 million.
-- Net income will be approximately $650,000 to $700,000.
-- Earnings per share will be between $.03 to $.04 on a basic per share
basis.
ADVERTISEMENT
About Internet Commerce Corporation (ICC)
Internet Commerce Corporation, headquartered in Norcross, Georgia, is a leader in providing business-to-business e-commerce solutions. Thousands of customers rely on ICC's comprehensive line of solutions, in-depth expertise, and unmatched customer service to help balance cost, fit, and function required to meet unique requirements for trading partner compliance, coordination, and collaboration. With its software solutions, network services, hosted web applications, managed services, and consulting services, ICC is the trusted provider of e-commerce solutions for businesses, regardless of size and level of technical sophistication, to connect them with their trading communities. For more information, visit www.icc.net.
Contact:
Media Contact:
Terri Deuel
Internet Commerce Corporation
678-533-8003
--------------------------------------------------------------------------------
OVTI "Shares of this security are currently not available to short sell." Damn. Probably why they are not getting crushed yet in A.H.
Why? Don't you want to go bargain hunting when you come back?
Have a Good Time!
ISM numbers were good market starting to rally.eom.
Welcome to Today's Big Rematch...
We've got an exciting rematch for you today between the Bulls and Da Bears. On Tuesday there was no question who the dominant team was, although the Bulls rallied back towards the end of the game it was clearly too little to late. For today's match up the Bears are already on the field for what appears to be a ferocious pre game warm up. The Bulls have yet to show their thier faces. Rumor has it that the team is still huddled inside the locker room trying desperately to come up with a last minute game plan.
Additionally rumors are swirling that the Bulls managers don't have their heads in the game today because they are being distracted by news out of Japan.
We can't tell you the outcome, but we can tell you to stay tuned because this is going to be one exciting rematch!!!!
DECK kicked ass...
Deckers Outdoor Corporation Reports Record Fourth Quarter Financial Results
Tuesday February 27, 4:00 pm ET
-- Company Reports Fourth Quarter Sales Increased 36.7% to a Record of $124.4 Million --
-- Fourth Quarter Preliminary Diluted EPS Increased 93.6% to a Record of $1.82, Excluding Expected Non-Cash Charge Related to Write-Down of Intangible Asset --
GOLETA, Calif.--(BUSINESS WIRE)--Deckers Outdoor Corporation (NASDAQGS: DECK) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2006.
The following results and accompanying condensed consolidated balance sheets and statements of income (unaudited) are presented on a GAAP basis excluding an expected non-cash impairment charge discussed below and its related tax benefit.
Fourth Quarter Highlights
Net sales increased 36.7% to $124.4 million versus $91.0 million last year; ahead of previous guidance range of $107.0 million to $110.0 million.
Gross margin increased 790 basis points to 48.5% compared to 40.6% a year ago.
Preliminary diluted EPS increased 93.6% to $1.82 versus $0.94 last year; ahead of previous guidance range of $1.27 to $1.30.
Fiscal 2006 Highlights
Net sales increased 15.0% to $304.4 million versus $264.8 million in 2005; ahead of previous guidance range of $287.0 million to $290.0 million.
Gross margin increased 430 basis points to 46.4% compared to 42.1% last year.
Preliminary diluted EPS increased 33.1% to $3.30 versus $2.48 in 2005; ahead of previous guidance range of $2.75 to $2.78.
Cash and short-term investments increased to $98.9 million compared to $53.2 million a year ago.
Inventories decreased to $32.4 million versus $33.4 million last year.
Deckers also announced that it recently conducted its annual impairment evaluation of the intangible assets on its balance sheet. Based on preliminary results, the Company expects to record a non-cash, pre-tax charge in the fourth quarter in the range of $14 million to $16 million, reflecting the write-down of the intangible asset related to Teva's trademarks. The exact amount of the charge will be recorded when the Company completes its analysis and files its Form 10-K with the Securities & Exchange Commission on or prior to March 16, 2007.
Angel Martinez, President and Chief Executive Officer, stated, "Our fourth quarter was highlighted by strong full price selling of our entire UGG® Brand fall collection throughout the holiday season and across the country which, combined with a meaningful reorder business, allowed us to once again exceed expectations. We are very pleased with our recent performance, particularly our top and bottom line growth. We achieved some key milestones in 2006 including surpassing the $300 million mark in sales, generating more than $3.00 in diluted earnings per share on an operational basis, and finishing the year with nearly $100 million in cash and short term investments on our balance sheet. Throughout the past twelve months we took a number of important steps to better position our Company for the future. And as we enter the new year, we are committed to further investing in all three of our brands, evolving our growth strategy, and fully maximizing the many opportunities that still exist going forward."
Segment Summary
Teva®
Teva Brand net sales for the fourth quarter increased 15.5% to $13.0 million compared to $11.3 million for the same period last year. Sales of Teva products were driven by solid sell-through of fall product and pull-forwards on several spring 2007 models. For the full year, Teva product sales decreased 5.6% to $80.5 million compared to $85.2 million in the prior year.
UGG®
UGG Brand net sales for the fourth quarter increased 40.1% to $109.9 million versus $78.5 million for the same period a year ago. Consumer demand for the entire women's, men's, and kids' fall collection, including boots, slippers, casuals, fashion and surf contributed to the UGG Brand's better than expected performance. For the full year, UGG Brand sales increased 23.2% to a record $211.5 million versus $171.6 million in 2005.
Simple®
Simple Brand net sales increased 18.8% to $1.5 million for the fourth quarter compared to $1.2 million for the same period last year. Simple product sales were on-plan for the quarter, with Green Toe® product sales continuing to gain traction and further solidifying the brand's leadership position in sustainable footwear. For the full year, the Simple Brand's sales increased 58.01% to $12.5 million compared to $7.9 million a year ago.
Consumer Direct
Sales for the Consumer Direct business, which are included in the brand sales numbers above, increased 28.4% to $19.5 million compared to $15.2 million for the same period a year ago. Results for the fourth quarter of 2006 include sales from the Company's new UGG Brand flagship store in New York City and two new retail outlet stores in Wrentham, MA and Riverhead, NY, which were not in operation in the fourth quarter of 2005.
Full-Year 2007 Outlook
The Company reiterated its full year revenue growth target of approximately 15%.
The Company also introduced its full year diluted earnings per share target of approximately 5% growth over 2006 before the impairment charge. It is important to note, that the fiscal 2006 gross margin of 46.4% was above normal due primarily to labor and material cost containment. The Company expects gross margin to return to a more normalized level of approximately 44% in fiscal 2007.
Fiscal 2007 guidance includes approximately $4.3 million of stock compensation expense.
First Quarter Outlook
The Company currently expects first quarter 2007 revenue to increase approximately 15% and diluted earnings per share to increase approximately 15% over 2006.
The Company's conference call to review fourth quarter and fiscal 2006 results will be broadcast live over the Internet today, Tuesday, February 27, 2007 at 4:30 pm Eastern Time. The broadcast will be hosted at www.deckers.com and www.earnings.com.
Deckers Outdoor Corporation builds niche products into global lifestyle brands by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. Teva®, Simple®, UGG®, and Green Toe® are registered trademarks of Deckers Outdoor Corporation.
This news release contains statements regarding our expectations, beliefs and views about our future financial performance which are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or future or conditional verbs such as "will," "would," "should," "could," or "may" or by the fact that such statements relate to future, and not just historical, events or circumstances, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for the Company's markets and the demand for its products. The forward-looking statements in this news release regarding our future financial performance are based on currently available information as of the date of this release, and because our business is subject to a number of risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties include, among others: our ability to anticipate fashion trends, consumer demand or inventory needs; whether the UGG brand will continue to grow at the same rate it has experienced in the recent past; shortages or price fluctuations of raw materials that could interrupt product manufacturing and increase product costs; our ability to implement our growth strategy; the success of our customers and the risk of losing one or more of our key customers; our ability to develop and protect our brands and intellectual property; the risk that counterfeiting can harm our sales or our brand image; our dependence on independent manufacturers to supply our products; the risk that retailers could postpone or cancel existing orders; unpredictable events and circumstances and currency risks related to our international operations; the risk of losing key personnel; and the sensitivity of our sales to seasonal and weather conditions. Certain of these risks and uncertainties, as well as others, are more fully described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005 which we filed with the Securities and Exchange Commission on March 9, 2006. Readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date of this release. The Company undertakes no obligation to publicly release or update the results of any revisions to forward-looking statements, which may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks and uncertainties highlighted herein should not be assumed to be the only items that could affect the future performance of the Company.
(Tables to follow)
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
December 31, December 31,
Assets 2006 2005
------------ ------------
Current assets:
Cash and cash equivalents $ 34,255 50,749
Short-term investments 64,637 2,500
Trade accounts receivable, net 49,571 39,683
Inventories 32,375 33,374
Prepaid expenses and other current assets 2,199 1,364
Deferred tax assets 4,714 5,949
------------ ------------
Total current assets 187,751 133,619
Property and equipment, at cost, net 7,770 4,711
Intangible assets, less applicable
amortization 69,699 70,009
Other assets 54 52
------------ ------------
$ 265,274 208,391
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable $ 21,053 14,506
Accrued expenses 7,204 4,860
Income taxes payable 7,586 7,133
------------ ------------
Total current liabilities 35,843 26,499
------------ ------------
Deferred tax liabilities-noncurrent 4,241 4,337
Stockholders' equity:
Common stock 126 124
Additional paid-in capital 81,761 76,788
Retained earnings 142,910 100,436
Accumulated other comprehensive income 393 207
------------ ------------
Total stockholders' equity 225,190 177,555
------------ ------------
$ 265,274 208,391
============ ============
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(Amounts in thousands, except for per share data)
Three-month period ended Year ended
December 31, December 31,
-------------------------------------------
2006 2005 2006 2005
----------- ----------- -------- ---------
Net sales $ 124,376 90,963 304,423 264,760
Cost of sales 64,091 54,047 163,224 153,238
----------- ----------- -------- ---------
Gross profit 60,285 36,916 141,199 111,522
Selling, general and
administrative expenses 23,305 17,742 73,989 59,254
----------- ----------- -------- ---------
Income from operations 36,980 19,174 67,210 52,268
Other (income) expense
Interest, net (432) (75) (2,372) 29
Other (12) (1) 1 (4)
----------- ----------- -------- ---------
Income before income taxes 37,424 19,250 69,581 52,243
Income taxes 13,929 7,174 27,107 20,398
----------- ----------- -------- ---------
Net income $ 23,495 12,076 42,474 31,845
=========== =========== ======== =========
Net income per share:
Basic $ 1.87 0.97 3.39 2.58
Diluted 1.82 0.94 3.30 2.48
=========== =========== ======== =========
Weighted-average shares:
Basic 12,565 12,406 12,519 12,349
Diluted 12,922 12,900 12,882 12,866
=========== =========== ======== =========
Contact:
Deckers Outdoor Corporation
Zohar Ziv, 805-967-7611
Chief Financial Officer and Executive Vice
President of Finance and Administration
or
Investor Relations:
Integrated Corporate Relations, Inc.
Chad A. Jacobs or Brendon Frey, 203-682-8200
--------------------------------------------------------------------------------
Source: Deckers Outdoor Corporation
DOW drops over 200 points in 5 minutes. Largest one day drop since Sept 11th attacks.
You got your 100!!! Holy Shit! eom.
DEIX - Added @ $8.86. Today's drop is on pretty low volume. They report on March 16th. PE below 10. Predicting 20% growth for 2007. Looking for a move up ahead of earnings. Will probably hold some through.
Directed Electronics, Inc. Announces Fourth Quarter and Full Year 2006 Conference Call
Friday February 23, 9:00 am ET
VISTA, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Directed Electronics, Inc. (Nasdaq: DEIX - News) holds number one market share positions in premium home theater loudspeakers, consumer branded vehicle security and remote start systems, and aftermarket satellite radio receivers. Directed is also a major supplier of mobile audio and video whose portfolio of well-known brands includes Polk Audio, Viper, Definitive Technology, Python, Clifford, Orion, Precision Power, Autostart and Astroflex.
ADVERTISEMENT
The Company announced today that it will report financial results for the fourth quarter and full year 2006 after the market close on Friday, March 16, 2007. The Company also announced that its executive officers will host a conference call on the same day at 5:00 p.m. Eastern Time. The Company will discuss its results, its progress and performance for the quarter and its outlook for 2007. The conference call may include forward-looking statements.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020424/DIRECTLOGO)
To participate in the conference call, investors should dial (800) 817-4887 ten minutes prior to the call. International callers should dial (913) 981-4913. A telephone replay of the call will be available through 11:59 p.m. Eastern Time on March 30, 2007 by calling (888) 203-1112 (passcode: 5345872). International callers should dial (719) 457-0820 and use the same passcode.
The call will be open to all interested investors through a live audio Web broadcast via the Internet at www.directed.com. For those who are not available to listen to the live broadcast, the call will be archived.
Subprime gets more bad news...
Freddie Mac tightens standards for buying subprime loans
NEW YORK (MarketWatch) -- Government sponsored mortgage marketer Freddie Mac 8:00am 02/27/2007
FRE64.93, -0.07, -0.1%) said Tuesday that it will tighten its standards for buying mortgages held by borrowers with the weakest credit ratings. The firm said it will stop buying mortgages, "that have a high likelihood of excessive payment shock and possible foreclosure." The company said it would only buy subprime adjustable-rate mortgages, and securities backed by such loans, that have been qualified at the fully indexed and fully amortizing rate. Freddie Mac also said it would limit the use of loans that do not require income verification or other documentation, and will recommend that lenders collect adequate escrow for taxes and insurance payments. And, the company said it is developing new fixed-rate and hybrid adjustable rate mortgages, "that will provide lenders with more choices to offer subprime borrowers."
I hold my first MoMo stock long overnight since October and the WORLD melts down. I expected to cause a correction in the U.S. but not this. I'll have to issue an apology.
I'll let you all know when I dump it so you can play the huge bounce that's sure to occur.
You should see the room he keeps in his basement as a contingency in case Iran invades the U.S.
Do you know if that is their choice. I know NAV just had a "Z" added when it went pink.
I never said it was going to be a good thing nor do I wish that it happens. The current conditions IMHO are unacceptable and they are underestimating our response.
One of my biggest fears it that they are acting so ballsy because they already have a bomb and they are looking for an excuse to use it.
It's not a pleasant decision but I think G.B. will look at the lesson of N. Korea and attempt to stop them before they join the club. Deal with the problem now or face a huge problem later.
They a porn company? eom.
I think the cost would be minimal because unlike Iraq I don't see us putting any boots on the ground. Like I said in my message, I don't think it will really count as a war. I think it would just be a few days of airstrikes. The cost of that compared to the cost of the war in Iraq would be infinitesimal.