Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
ULU You want a Bagger Next RPC Right here Volume is going NUTS
ULU is the Next RPC Volume is going nuts nearly the entire float has been locked up during the past week just like with RPC Same setup Bottom of the chart RPC ran from .23 to over 2.50 a share in a week think that were about to get a similiar move with ULU Accumulation phase is about done run is about to start get in at the bottom of the chart this is going to absolutly explode Huge Postive Results out just recently as well Hot BioTech here
ULU Here on the Dip Volume done twice the daily avg going to pull a RPC type move same exact setup
LJPC Trading below book value here recently had a buyout offer
ULU Alert Next RPC WOW Volume is going NUTS I dunno how much longer they can hold this one down here for
ULU is the Next RPC Volume is going nuts nearly the entire float has been locked up during the past week just like with RPC Same setup Bottom of the chart RPC ran from .23 to over 2.50 a share in a week think that were about to get a similiar move with ULU Accumulation phase is about done run is about to start get in at the bottom of the chart this is going to absolutly explode Huge Postive Results out just recently as well Hot BioTech here
YTEC Undervalued Chinese Banking play due for a breakout
VSTNQ Next GGWPQ?? or pilgrims Pride...
ULU Alert! Next RPC I dunno how much longer they can hold this down here volume is going nuts! nearly the entire float is locked up going to go
ULU is the Next RPC Volume is going nuts nearly the entire float has been locked up during the past week just like with RPC Same setup Bottom of the chart RPC ran from .23 to over 2.50 a share in a week think that were about to get a similiar move with ULU Accumulation phase is about done run is about to start get in at the bottom of the chart this is going to absolutly explode Huge Postive Results out just recently as well Hot BioTech here
ULU Volume is going Nuts Next RPC??
VBDG HUGE RUN COMING!
VSTNQ Next GGWPQ??? Charts look nearly identical or a pilgrims pride??
ULU Next RPC?? HUGE VOLUME ALERT
YTEC China Banking play volume has dropped down next to nothing
VSTNQ Next GGWPQ???
ULU The Next RPC?? Huge Volume..
VSTNQ= Next GGWPQ Run Done Starting hedges going to run the hell out of this value is there 8-10$+ a share value here
VSTNQ= Next GGWPQ Run Done Starting hedges going to run the hell out of this value is there 8-10$+ a share value here
YMI OMG WOW HUGE NEWS
YMI News
DRJ BLOW OUT EARNINGS WOW HUGE!!!
DRJ Blow Out Earnings WOW Huge! Dreams, Inc. Announces Record Financial Results For Fourth Quarter & Calendar Year 2009
Fourth Quarter - Revenue Up 22.3% to Record $43.3 Million, EBITDA Up 182% to Record $6.5 Million, Net Income Up 114% to Record $3.0 Million
Buzz up! Print
Companies:Dreams Inc. Topics:Earnings Related Quotes
Symbol Price Change
DRJ 1.63 +0.05
{"s" : "drj","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: Dreams, Inc. On Monday March 29, 2010, 10:47 am
PLANTATION, Fla.--(BUSINESS WIRE)--Dreams, Inc. (NYSE Amex: DRJ) announced its financial results for the fourth quarter and twelve months ended December 31, 2009.
Fourth Quarter 2009
Revenues - For the quarter ended December 31, 2009, revenues were up 22.3% to a record $43.3 million, compared to $35.4 million generated in the same quarter last year. Before elimination of intercompany sales, revenues increased 21.2% to a record $45.0 million, compared to $37.1 million for the same quarter in 2008.
EBITDA* – For the quarter ended December 31, 2009, earnings before interest, taxes, depreciation and amortization were a record $6.5 million, up 182% from $2.3 million in EBITDA profits for the same quarter in 2008.
Pre-Tax – For the quarter ended December 31, 2009, income from continuing operations before taxes was $5.6 million, up 250% from a pre-tax operating profit of $1.6 million for the same quarter in 2008.
Net Income – For the quarter ended December 31, 2009, net income was a record $3.0 million, up 114% from $1.4 million for the same quarter in 2008.
Full Year 2009
Revenues - For the year ended December 31, 2009, revenues increased 4.4% to a record $85.5 million, compared to $81.9 million for the twelve months ended December 31, 2008. Before elimination of intercompany sales, revenues increased 3.3% to a record $89.8 million, compared to $86.9 million for the twelve months ended December 31, 2008.
EBITDA* - For the year ended December 31, 2009, earnings before interest, taxes, depreciation and amortization were a record $4.0 million, versus an EBITDA loss of $.7 million for the twelve months ended December 31, 2008.
Pre-Tax – For the year ended December 31, 2009, income from continuing operations before taxes was $.9 million, compared to a pre-tax operating loss of $3.0 million for the twelve months ended December 31, 2008.
Net Income - For the year ended December 31, 2009, net income was $.2 million, versus a net loss of $1.6 million for the twelve months ended December 31, 2008.
Points of Interest
Ross Tannenbaum, Dreams’ President & CEO commented, “These record results were largely determined by our E-Commerce successes which were led by our flagship brand, www.FansEdge.com and the dramatic growth of our web syndication business. For the quarter, the Internet division was up 44.0% to $35.0 million, versus $24.3 million for the fourth quarter of 2008. For the year, the Internet division was up 27.2% to $59.7 million, versus $46.9 million for 2008. E-Commerce will remain our primary area of focus.”
“We incurred some one-time, non-cash operating expenses that mitigated our results; otherwise, our core operations would have reflected even greater profits. Specifically, there were $220,000 in leasehold improvement write-offs due to the early closing of three Field of Dreams stores; and $260,000 in stock option expenses associated with stock option grants to employees.
“Also, the Company recorded as additional interest expense, $90,000 from a restructuring fee imposed on it by its senior lender and the Company recorded a one-time, non-cash, additional tax expense of $350,000 as a result of cumulative differences in deferred taxes. The cumulative timing differences in the deferred tax benefits associated with federal and state net operating loss carry-forwards and a return to profitability of the operations were the catalysts for the current period effective tax rate being 81% for book purposes; even though we did not pay any taxes. The Company expects its 2010 tax rate to be similar to historic corporate federal & state tax rates that approximate 40%.
“Considerable improvements in cash flow were the underlying theme for the last three-quarters of 2009. Cash provided by operations was $5.2 million in 2009, compared to cash used in operations of $5.8 million in 2008; as we successfully integrated numerous corporate savings initiatives, managed the reduction of our overall inventory levels while maintaining historical gross margins, and returned the operations to profitability.
“We were successful in orchestrating a classic turnaround. Our fiscal discipline, resourcefulness, superior sports e-commerce platform and talented management team delivered these record fourth quarter and annual results in an environment where many businesses struggled. We will continue to control costs, leverage our purchasing power to improve margins, expand our web syndication portfolio, sell more of our manufactured items through our retail channels and focus on E-Commerce. Therefore, we believe we are well positioned to continue this trend throughout 2010 and beyond”, concluded Tannenbaum.
Q4 2009 Financial Recap & Highlights: 2009 Financial Recap & Highlights:
$43.3M in revenues, up 22.3% $85.5M in revenues, up 4.4%
$6.5M in EBITDA profits, up 182% $4.0M in EBITDA profits, a $4.7M improvement
$5.6M in Pre-tax profits, up 250% $.9M in Pre-tax profits, a $3.9M improvement
$3.0M in Net income, up 114% $.2M in Net income, a $1.8M improvement
$35M in E-Commerce sales, up 44% $59.7M in E-Commerce sales, up 27.2%
Web syndication – JC Penney site goes live $11M improvement in cash flow from operations
Dreams, Inc. and Subsidiaries
Consolidated Statements of Operations - Unaudited
For the Quarter Ended December 31, 2009 and the Quarter Ended December 31, 2008.
(Dollars in Thousands, except share and earnings per share amounts)
Quarter ended
December 31,
2009 Quarter ended
December 31,
2008
Revenues:
Manufacturing/Distribution $ 3,428 $ 5,342
Retail 39,732 30,015
Other 112 46
Total revenues $ 43,272 $ 35,403
Expenses:
Cost of sales—manufacturing/distribution $ 1,588 $ 1,962
Cost of sales—retail 21,363 17,247
Operating expenses 13,565 13,891
Depreciation and amortization 456 442
Total expenses $ 36,972 $ 33,542
Income from operations $ 6,300 $ 1,861
Interest (expense), net (483) (281)
Other (expense) / income (230) 1
Income before income taxes $ 5,587 $ 1,581
Provision for Income tax (expense)/benefit:
Current (1,885) (181)
Deferred (702) –
Net income $ 3,000 $ 1,400
Basic and diluted income per share $ 0.08 $ 0.04
Basic weighted average common shares outstanding 37,559,698 37,545,576
Dilutive effect of stock options 1,492,733 0
Dilutive weighted average shares outstanding 39,052,431 37,545,576
Dreams, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Year Ended December 31, 2009 and the Year Ended December 31, 2008.
(Dollars in Thousands, except share and earnings per share amounts)
Year ended
December 31,
2009 Year ended
December 31,
2008
Revenues:
Manufacturing/Distribution $ 11,470 $ 18,116
Retail 73,711 63,320
Other 354 546
Total revenues $ 85,535 $ 81,982
Expenses:
Cost of sales—manufacturing/distribution $ 5,497 $ 9,348
Cost of sales—retail 39,626 35,368
Operating expenses 36,226 37,925
Depreciation and amortization 1,819 1,347
Total expenses $ 83,168 $ 83,988
Income / (loss) from operations $ 2,367 $ (2,006)
Interest (expense), net (1,268) (926)
Other (expense) / income (238) (55)
Income / (loss) before income taxes $ 861 $ (2,987)
Provision for Income tax (expense)/benefit:
Current (9) 1,373
Deferred (702) –
Net income / (loss) $ 150 $ (1,614)
Basic and diluted income / (loss) per share $ 0.00 $ (0.04 )
Basic weighted average common shares outstanding 37,559,698 37,545,576
Dilutive effect of stock options 1,492,733 0
Dilutive weighted average shares outstanding 39,052,431 37,545,576
YE December 31, QE December 31,
2009 2008 2009 2008
Total revenue $ 85,535 $ 81,982 $ 43,272 $ 35,403
Total expense 81,587 82,696 36,747 33,099
Pre-tax 3,948 (714 ) 6,525 2,304
Net income / (loss) 150 (1,614 ) 3,000 1,400
EBITDA, as adjusted 3,948 (714 ) 6,525 2,304
Less:
Interest expense (1,268 ) (926 ) (483 ) (281 )
Tax expense / benefit (711 ) 1,373 (2,586 ) (181 )
Deprec. & Amort (1,819 ) (1,347 ) (456 ) (442 )
Net income / (loss), as reported 150 (1,614 ) 3,000 1,400
*EBITDA is a non-GAAP financial measurement that is defined as earnings before interest, tax, depreciation and amortization. We use this non-GAAP financial measure for financial and operational decision making and as a means to evaluate our performance. In our opinion, this non-GAAP measure provides meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance. We believe this non-GAAP financial measures is useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by institutional investors and the analyst community to help them analyze the health of our business.
DREAMS, INC. trades on the NYSE Amex Exchange under the symbol “DRJ”.
For more information on Dreams, Inc. and its subsidiaries, please visit: www.dreamscorp.com.
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of Dreams, Inc. ("the Company") and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services. Past performance is not indicative of future results. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.
Contact:
Dreams, Inc.Investor Relations:David M. Greene, Senior Vice-President, 954-377-0002Fax: 954-475-8785dgreene@dreamscorp.comorPublic Relations:Boardroom CommunicationsCaren Berg or Jennifer Clarin, 954-370-8999Fax: 954-370-8892caren@boardroompr.com or jclarin@boardroompr.com
DRJ Dreams, Inc. Announces Record Financial Results For Fourth Quarter & Calendar Year 2009
Fourth Quarter - Revenue Up 22.3% to Record $43.3 Million, EBITDA Up 182% to Record $6.5 Million, Net Income Up 114% to Record $3.0 Million
Buzz up! Print
Companies:Dreams Inc. Topics:Earnings Related Quotes
Symbol Price Change
DRJ 1.63 +0.05
{"s" : "drj","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: Dreams, Inc. On Monday March 29, 2010, 10:47 am
PLANTATION, Fla.--(BUSINESS WIRE)--Dreams, Inc. (NYSE Amex: DRJ) announced its financial results for the fourth quarter and twelve months ended December 31, 2009.
Fourth Quarter 2009
Revenues - For the quarter ended December 31, 2009, revenues were up 22.3% to a record $43.3 million, compared to $35.4 million generated in the same quarter last year. Before elimination of intercompany sales, revenues increased 21.2% to a record $45.0 million, compared to $37.1 million for the same quarter in 2008.
EBITDA* – For the quarter ended December 31, 2009, earnings before interest, taxes, depreciation and amortization were a record $6.5 million, up 182% from $2.3 million in EBITDA profits for the same quarter in 2008.
Pre-Tax – For the quarter ended December 31, 2009, income from continuing operations before taxes was $5.6 million, up 250% from a pre-tax operating profit of $1.6 million for the same quarter in 2008.
Net Income – For the quarter ended December 31, 2009, net income was a record $3.0 million, up 114% from $1.4 million for the same quarter in 2008.
Full Year 2009
Revenues - For the year ended December 31, 2009, revenues increased 4.4% to a record $85.5 million, compared to $81.9 million for the twelve months ended December 31, 2008. Before elimination of intercompany sales, revenues increased 3.3% to a record $89.8 million, compared to $86.9 million for the twelve months ended December 31, 2008.
EBITDA* - For the year ended December 31, 2009, earnings before interest, taxes, depreciation and amortization were a record $4.0 million, versus an EBITDA loss of $.7 million for the twelve months ended December 31, 2008.
Pre-Tax – For the year ended December 31, 2009, income from continuing operations before taxes was $.9 million, compared to a pre-tax operating loss of $3.0 million for the twelve months ended December 31, 2008.
Net Income - For the year ended December 31, 2009, net income was $.2 million, versus a net loss of $1.6 million for the twelve months ended December 31, 2008.
Points of Interest
Ross Tannenbaum, Dreams’ President & CEO commented, “These record results were largely determined by our E-Commerce successes which were led by our flagship brand, www.FansEdge.com and the dramatic growth of our web syndication business. For the quarter, the Internet division was up 44.0% to $35.0 million, versus $24.3 million for the fourth quarter of 2008. For the year, the Internet division was up 27.2% to $59.7 million, versus $46.9 million for 2008. E-Commerce will remain our primary area of focus.”
“We incurred some one-time, non-cash operating expenses that mitigated our results; otherwise, our core operations would have reflected even greater profits. Specifically, there were $220,000 in leasehold improvement write-offs due to the early closing of three Field of Dreams stores; and $260,000 in stock option expenses associated with stock option grants to employees.
“Also, the Company recorded as additional interest expense, $90,000 from a restructuring fee imposed on it by its senior lender and the Company recorded a one-time, non-cash, additional tax expense of $350,000 as a result of cumulative differences in deferred taxes. The cumulative timing differences in the deferred tax benefits associated with federal and state net operating loss carry-forwards and a return to profitability of the operations were the catalysts for the current period effective tax rate being 81% for book purposes; even though we did not pay any taxes. The Company expects its 2010 tax rate to be similar to historic corporate federal & state tax rates that approximate 40%.
“Considerable improvements in cash flow were the underlying theme for the last three-quarters of 2009. Cash provided by operations was $5.2 million in 2009, compared to cash used in operations of $5.8 million in 2008; as we successfully integrated numerous corporate savings initiatives, managed the reduction of our overall inventory levels while maintaining historical gross margins, and returned the operations to profitability.
“We were successful in orchestrating a classic turnaround. Our fiscal discipline, resourcefulness, superior sports e-commerce platform and talented management team delivered these record fourth quarter and annual results in an environment where many businesses struggled. We will continue to control costs, leverage our purchasing power to improve margins, expand our web syndication portfolio, sell more of our manufactured items through our retail channels and focus on E-Commerce. Therefore, we believe we are well positioned to continue this trend throughout 2010 and beyond”, concluded Tannenbaum.
Q4 2009 Financial Recap & Highlights: 2009 Financial Recap & Highlights:
$43.3M in revenues, up 22.3% $85.5M in revenues, up 4.4%
$6.5M in EBITDA profits, up 182% $4.0M in EBITDA profits, a $4.7M improvement
$5.6M in Pre-tax profits, up 250% $.9M in Pre-tax profits, a $3.9M improvement
$3.0M in Net income, up 114% $.2M in Net income, a $1.8M improvement
$35M in E-Commerce sales, up 44% $59.7M in E-Commerce sales, up 27.2%
Web syndication – JC Penney site goes live $11M improvement in cash flow from operations
Dreams, Inc. and Subsidiaries
Consolidated Statements of Operations - Unaudited
For the Quarter Ended December 31, 2009 and the Quarter Ended December 31, 2008.
(Dollars in Thousands, except share and earnings per share amounts)
Quarter ended
December 31,
2009 Quarter ended
December 31,
2008
Revenues:
Manufacturing/Distribution $ 3,428 $ 5,342
Retail 39,732 30,015
Other 112 46
Total revenues $ 43,272 $ 35,403
Expenses:
Cost of sales—manufacturing/distribution $ 1,588 $ 1,962
Cost of sales—retail 21,363 17,247
Operating expenses 13,565 13,891
Depreciation and amortization 456 442
Total expenses $ 36,972 $ 33,542
Income from operations $ 6,300 $ 1,861
Interest (expense), net (483) (281)
Other (expense) / income (230) 1
Income before income taxes $ 5,587 $ 1,581
Provision for Income tax (expense)/benefit:
Current (1,885) (181)
Deferred (702) –
Net income $ 3,000 $ 1,400
Basic and diluted income per share $ 0.08 $ 0.04
Basic weighted average common shares outstanding 37,559,698 37,545,576
Dilutive effect of stock options 1,492,733 0
Dilutive weighted average shares outstanding 39,052,431 37,545,576
Dreams, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Year Ended December 31, 2009 and the Year Ended December 31, 2008.
(Dollars in Thousands, except share and earnings per share amounts)
Year ended
December 31,
2009 Year ended
December 31,
2008
Revenues:
Manufacturing/Distribution $ 11,470 $ 18,116
Retail 73,711 63,320
Other 354 546
Total revenues $ 85,535 $ 81,982
Expenses:
Cost of sales—manufacturing/distribution $ 5,497 $ 9,348
Cost of sales—retail 39,626 35,368
Operating expenses 36,226 37,925
Depreciation and amortization 1,819 1,347
Total expenses $ 83,168 $ 83,988
Income / (loss) from operations $ 2,367 $ (2,006)
Interest (expense), net (1,268) (926)
Other (expense) / income (238) (55)
Income / (loss) before income taxes $ 861 $ (2,987)
Provision for Income tax (expense)/benefit:
Current (9) 1,373
Deferred (702) –
Net income / (loss) $ 150 $ (1,614)
Basic and diluted income / (loss) per share $ 0.00 $ (0.04 )
Basic weighted average common shares outstanding 37,559,698 37,545,576
Dilutive effect of stock options 1,492,733 0
Dilutive weighted average shares outstanding 39,052,431 37,545,576
YE December 31, QE December 31,
2009 2008 2009 2008
Total revenue $ 85,535 $ 81,982 $ 43,272 $ 35,403
Total expense 81,587 82,696 36,747 33,099
Pre-tax 3,948 (714 ) 6,525 2,304
Net income / (loss) 150 (1,614 ) 3,000 1,400
EBITDA, as adjusted 3,948 (714 ) 6,525 2,304
Less:
Interest expense (1,268 ) (926 ) (483 ) (281 )
Tax expense / benefit (711 ) 1,373 (2,586 ) (181 )
Deprec. & Amort (1,819 ) (1,347 ) (456 ) (442 )
Net income / (loss), as reported 150 (1,614 ) 3,000 1,400
*EBITDA is a non-GAAP financial measurement that is defined as earnings before interest, tax, depreciation and amortization. We use this non-GAAP financial measure for financial and operational decision making and as a means to evaluate our performance. In our opinion, this non-GAAP measure provides meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance. We believe this non-GAAP financial measures is useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by institutional investors and the analyst community to help them analyze the health of our business.
DREAMS, INC. trades on the NYSE Amex Exchange under the symbol “DRJ”.
For more information on Dreams, Inc. and its subsidiaries, please visit: www.dreamscorp.com.
Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of Dreams, Inc. ("the Company") and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products and services. Past performance is not indicative of future results. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.
Contact:
Dreams, Inc.Investor Relations:David M. Greene, Senior Vice-President, 954-377-0002Fax: 954-475-8785dgreene@dreamscorp.comorPublic Relations:Boardroom CommunicationsCaren Berg or Jennifer Clarin, 954-370-8999Fax: 954-370-8892caren@boardroompr.com or jclarin@boardroompr.com
VSTNQ Next GGWPQ Huge News out today!
http://biz.yahoo.com/prnews/100325/ny77140.html?.v=1
YTEC Huge move up check the chart
CYBI 2.50 Book Value Selling for 1.60$ Profitable Insiders buying cash flow postive can we say undervalued??
YTEC hasnt broke out yet bottom of the chart over sold past 3 days now HUGE bidders sitting on the bid all day with 20k+ bids due for a run MACD getting ready to turn back up on the big chart has one hell of a gap to fill to the upside
CYBI 1.60$ Currently 2.50+ Book Value per share profitable cash flow postive insiders loading the boat
VSTNQ.PK WOW HUGE NEWS MUST READ!!!
Ad Hoc Equity Committee Sends Letter to Board of Directors of Visteon Corporation
Buzz up! 0 Print..Companies:Visteon Corp..Related Quotes
Symbol Price Change
VSTNQ.PK 0.9575 +0.0725
{"s" : "vstnq.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: Dewey & LeBoeuf LLP On Thursday March 25, 2010, 7:50 pm EDT
NEW YORK, March 25 /PRNewswire/ -- Dewey & LeBoeuf LLP, acting on behalf of Ad Hoc Equity Committee, sent today a letter to the Board of Directors of Visteon Corporation (Pink Sheets:VSTNQ.pk - News). Following is the full text of the letter:
March 25, 2010
Board of Directors of Visteon Corporation
c/o Kirkland & Ellis LLP
601 Lexington Avenue
New York, NY 10022
Attn.: Jamie Sprayregen, Esq.
Marc Kieselstein, Esq.
Re: In re Visteon Corporation,
Chapter 11 Case No. 09-11786 (Jointly Administered) (CSS)
Dear Members of the Board of Directors:
As you know, we represent an ad hoc committee of equityholders (the "Ad Hoc Equity Committee"), the members of which collectively hold 7.87% of the outstanding common stock of Visteon Corporation (the "Company" or "Visteon").(1) The Company's most recently proposed chapter 11 plan, dated March 15, 2010 (the "Plan"), completely ignores the true value of the Company and, accordingly, wrongfully extinguishes shareholders and must be revised. Delaware corporate law requires a shareholder vote to sell substantially all Visteon's assets, but the Company is undertaking to effectuate the same result as a transfer of virtually all of Visteon's assets to certain creditors without a shareholder vote.
As with the initial chapter 11 plan proposed by the Company, the recent Plan is based on an unrealistically low valuation of the Company and its assets and a suboptimal capital structure, which together provide an indefensible windfall to the Company's secured lenders at the expense of the Company's other creditors and shareholders. The Ad Hoc Equity Committee's analysis shows the Company is worth significantly more than the Plan and Disclosure Statement would lead the Court, creditors, and equityholders to believe for the following reasons, among others:
First, as pointed out in our letter dated March 8, 2010, the Company's prior projections must be viewed with a healthy dose of skepticism. (2) Relative to the improving macroeconomic picture, consensus assumptions for worldwide production volume growth in the industry and the improving market positions of the Company's largest customers, the Company's top line projections appear to present an unreasonably low revenue forecast.
Second, given the Company's successful cost cutting (including exiting all of the Company's US manufacturing operations, which will have the effect of lowering manufacturing costs significantly) and general margin improvement illustrated in Q3 and Q4 of 2009, it appears the projections do not reflect the operational improvements the Company has achieved.
Third, the Company's valuation of its equity in its non-consolidated joint ventures is far below their fair market value. The Company values all these joint ventures at $195 million or about 5 times 2009 dividends, 2.5 times 2009 net income and 65% of 2009 book value. Our financial advisors are willing to provide you with numerous examples of comparable Asian automotive suppliers, which currently trade at forward net income multiples in the teens. If the Company truly considers $195 million to be a fair value for its non-consolidated joint ventures, the Ad Hoc Equity Committee recommends the Company offer these assets to the Ad Hoc Equity Committee at that price.
Fourth, the Company inappropriately values its 70% stake in Halla Climate Control Corporation ("Halla") on a consolidated basis (using a market multiple in-line with US comparables, not the higher multiples afforded to Halla's Asian competitors), and then subtracts out the market value of the 30% of Halla not owned by the Company. This creates an artificial, negative multiple arbitrage that results in a lower valuation. Halla's value should not be up for debate or manipulation, as shares of Halla trade publicly; at the most recent closing price of Halla shares at current exchange rates, Visteon's stake in Halla is worth $915 million before any premium for Visteon's control position. A proper valuation of Halla would assign a premium to the current trading price for Visteon's controlling interest in this valuable enterprise. The Company's position that its 70% stake is worth ratably less than the 30% minority stake is not only incorrect but is also troubling.
Put simply, the sum of the Company's $1.1 billion of cash on its balance sheet as of December 31, 2009, its $915 million stake in Halla (before including a control premium) and the Company's overly-conservative valuation of the non-consolidated joint ventures is in excess of the Company's estimated valuation in the Plan, before including any value for Visteon's core business, which the Ad Hoc Equity Committee, Ford and the Company's other customers firmly believe has value. Furthermore, using a reasonable valuation of both the Company's non-consolidated joint ventures and Visteon's core business (ex-Halla) together with the Company's cash and the public market value of Halla would result in a total valuation well in excess of the $3.1 billion of total claims against the Company, leaving significant value for shareholders. (3)
The Ad Hoc Equity Committee is eager to learn more about the Company's motivations and processes by which it arrived at its valuations and reserves all rights to seek discovery on this issue and all issues.
Additionally, there are more optimal capital structures which preserve, create, and distribute value more fairly to all of the Company's stakeholders. Any such structure should reinstate the existing bank debt or provide the bank debtholders with a new note at the lowest interest rate the law allows, and we urge the Company to do so.
Based on the Ad Hoc Equity Committee's projected cash flows (and even using the Company's onerously conservative projections), Visteon has ample cash flows to support both this interest expense as well as annual contributions to its domestic pension plans. Furthermore, the Company will generate significant cash over the projection period to address future maturities. Therefore, the notion that Visteon must be free of long-term debt is an unreasonable view that directly robs equityholders of value resulting from the preservation of the Company's bank debt at an attractive interest rate. There are many comparable companies in the automotive sector, domestically and internationally, that have debt. Indeed, several of these comparable companies have emerged from bankruptcy with leverage and yet continue as important suppliers to Ford as well as to other Visteon customers.
The Company should also consider distributing shares of Halla to its guaranteed note holders. While the Ad Hoc Equity Committee believes there is great value to the Company's majority ownership in and control of Halla, the Ad Hoc Equity Committee also believes there is very little incremental value or strategic benefit from owning 70% of Halla, as opposed to owning 51%.
Finally, the Company should satisfy remaining unsecured bonds with a combination of cash and convertible preferred securities. Cash can come from either excess balance sheet cash, or a $200 million rights offering. (4) The convertible preferred securities should contain a mandatory dividend payable in securities at the Company's option at an appropriate rate, be callable at the Company's option, and be convertible into common equity in certain circumstances. Such a structure would enable Visteon to reinstate its existing equity (subject, of course, to dilution for the rights offering, if necessary, a management incentive plan, and the convertible preferred securities described above). Designed properly, such a structure ought to preserve the value of the Company's significant net operating losses.
The Ad Hoc Equity Committee reserves its rights to seek termination of exclusivity to propose a plan and/or seek the appointment of an examiner to protect its interests, as well as all other rights granted by the Bankruptcy Code. The appointment of an examiner may be particularly appropriate given the wide gulf between the Company's prior projections and actual results, the limited changes made in the Plan, and the issues the Company's Plan raises as to whether the Company and its Board are carrying out their fiduciary duties.
Of course, the Ad Hoc Equity Committee's preference is to work collaboratively with the Board, management, and the Company's other stakeholders to ensure a consensual chapter 11 plan that treats all stakeholders fairly, and rewards management for improved performance. The shareholders are the Company's owners, and we trust the Board and management will act in accordance with the shareholders' best interests consistent with their fiduciary duty.
We look forward to your response.
Sincerely,
Martin J. Bienenstock
MJB/ds
(1) The members of the Ad Hoc Equity Committee may also hold other Visteon securities from time to time.
(2) As we noted in our letter, the projections in the Disclosure Statement, dated December 17, 2009, issued in support of the debtors proposed plan just two weeks before the end of the 2009 fiscal year, egregiously understated actual income and cash as of the end of 2009. Additionally, the Company's projections did not materially change from December 17, 2009 to March 15, 2010 notwithstanding its proven understated 2009 projections.
(3) The Company improperly considers only "excess cash" as part of its valuation, and not "total cash". We are well advised by the Company that much of the Company's $1.1 billion of cash is located overseas and not able to be repatriated without tax consequences and understand that dividends from the Company's affiliates which are not wholly-owned are uncertain. But neither of these facts allows the Company to simply ignore the value of these assets and hand them over to senior creditors at the expense of other stakeholders to whom it owes fiduciary obligations to preserve value.
(4) While the Ad Hoc Equity Committee doesn't believe the Company needs additional liquidity, the Ad Hoc Equity Committee is willing to demonstrate its fundamental belief that the present Plan undervalues the Company by agreeing to participate in such a rights offering. The rights offering would be offered first to existing equity holders and then to unsecured claimholders if they would like to participate. To ensure full subscription, the members of the Ad Hoc Equity Committee will consider backstopping the rights offering, which would be subject to standard and customary conditions.
Buzz up! 0
VSTNQ.PK HUGE NEWS WOW MUST READ!!!
Ad Hoc Equity Committee Sends Letter to Board of Directors of Visteon Corporation
Buzz up! 0 Print..Companies:Visteon Corp..Related Quotes
Symbol Price Change
VSTNQ.PK 0.9575 +0.0725
{"s" : "vstnq.pk","k" : "c10,l10,p20,t10","o" : "","j" : ""} Press Release Source: Dewey & LeBoeuf LLP On Thursday March 25, 2010, 7:50 pm EDT
NEW YORK, March 25 /PRNewswire/ -- Dewey & LeBoeuf LLP, acting on behalf of Ad Hoc Equity Committee, sent today a letter to the Board of Directors of Visteon Corporation (Pink Sheets:VSTNQ.pk - News). Following is the full text of the letter:
March 25, 2010
Board of Directors of Visteon Corporation
c/o Kirkland & Ellis LLP
601 Lexington Avenue
New York, NY 10022
Attn.: Jamie Sprayregen, Esq.
Marc Kieselstein, Esq.
Re: In re Visteon Corporation,
Chapter 11 Case No. 09-11786 (Jointly Administered) (CSS)
Dear Members of the Board of Directors:
As you know, we represent an ad hoc committee of equityholders (the "Ad Hoc Equity Committee"), the members of which collectively hold 7.87% of the outstanding common stock of Visteon Corporation (the "Company" or "Visteon").(1) The Company's most recently proposed chapter 11 plan, dated March 15, 2010 (the "Plan"), completely ignores the true value of the Company and, accordingly, wrongfully extinguishes shareholders and must be revised. Delaware corporate law requires a shareholder vote to sell substantially all Visteon's assets, but the Company is undertaking to effectuate the same result as a transfer of virtually all of Visteon's assets to certain creditors without a shareholder vote.
As with the initial chapter 11 plan proposed by the Company, the recent Plan is based on an unrealistically low valuation of the Company and its assets and a suboptimal capital structure, which together provide an indefensible windfall to the Company's secured lenders at the expense of the Company's other creditors and shareholders. The Ad Hoc Equity Committee's analysis shows the Company is worth significantly more than the Plan and Disclosure Statement would lead the Court, creditors, and equityholders to believe for the following reasons, among others:
First, as pointed out in our letter dated March 8, 2010, the Company's prior projections must be viewed with a healthy dose of skepticism. (2) Relative to the improving macroeconomic picture, consensus assumptions for worldwide production volume growth in the industry and the improving market positions of the Company's largest customers, the Company's top line projections appear to present an unreasonably low revenue forecast.
Second, given the Company's successful cost cutting (including exiting all of the Company's US manufacturing operations, which will have the effect of lowering manufacturing costs significantly) and general margin improvement illustrated in Q3 and Q4 of 2009, it appears the projections do not reflect the operational improvements the Company has achieved.
Third, the Company's valuation of its equity in its non-consolidated joint ventures is far below their fair market value. The Company values all these joint ventures at $195 million or about 5 times 2009 dividends, 2.5 times 2009 net income and 65% of 2009 book value. Our financial advisors are willing to provide you with numerous examples of comparable Asian automotive suppliers, which currently trade at forward net income multiples in the teens. If the Company truly considers $195 million to be a fair value for its non-consolidated joint ventures, the Ad Hoc Equity Committee recommends the Company offer these assets to the Ad Hoc Equity Committee at that price.
Fourth, the Company inappropriately values its 70% stake in Halla Climate Control Corporation ("Halla") on a consolidated basis (using a market multiple in-line with US comparables, not the higher multiples afforded to Halla's Asian competitors), and then subtracts out the market value of the 30% of Halla not owned by the Company. This creates an artificial, negative multiple arbitrage that results in a lower valuation. Halla's value should not be up for debate or manipulation, as shares of Halla trade publicly; at the most recent closing price of Halla shares at current exchange rates, Visteon's stake in Halla is worth $915 million before any premium for Visteon's control position. A proper valuation of Halla would assign a premium to the current trading price for Visteon's controlling interest in this valuable enterprise. The Company's position that its 70% stake is worth ratably less than the 30% minority stake is not only incorrect but is also troubling.
Put simply, the sum of the Company's $1.1 billion of cash on its balance sheet as of December 31, 2009, its $915 million stake in Halla (before including a control premium) and the Company's overly-conservative valuation of the non-consolidated joint ventures is in excess of the Company's estimated valuation in the Plan, before including any value for Visteon's core business, which the Ad Hoc Equity Committee, Ford and the Company's other customers firmly believe has value. Furthermore, using a reasonable valuation of both the Company's non-consolidated joint ventures and Visteon's core business (ex-Halla) together with the Company's cash and the public market value of Halla would result in a total valuation well in excess of the $3.1 billion of total claims against the Company, leaving significant value for shareholders. (3)
The Ad Hoc Equity Committee is eager to learn more about the Company's motivations and processes by which it arrived at its valuations and reserves all rights to seek discovery on this issue and all issues.
Additionally, there are more optimal capital structures which preserve, create, and distribute value more fairly to all of the Company's stakeholders. Any such structure should reinstate the existing bank debt or provide the bank debtholders with a new note at the lowest interest rate the law allows, and we urge the Company to do so.
Based on the Ad Hoc Equity Committee's projected cash flows (and even using the Company's onerously conservative projections), Visteon has ample cash flows to support both this interest expense as well as annual contributions to its domestic pension plans. Furthermore, the Company will generate significant cash over the projection period to address future maturities. Therefore, the notion that Visteon must be free of long-term debt is an unreasonable view that directly robs equityholders of value resulting from the preservation of the Company's bank debt at an attractive interest rate. There are many comparable companies in the automotive sector, domestically and internationally, that have debt. Indeed, several of these comparable companies have emerged from bankruptcy with leverage and yet continue as important suppliers to Ford as well as to other Visteon customers.
The Company should also consider distributing shares of Halla to its guaranteed note holders. While the Ad Hoc Equity Committee believes there is great value to the Company's majority ownership in and control of Halla, the Ad Hoc Equity Committee also believes there is very little incremental value or strategic benefit from owning 70% of Halla, as opposed to owning 51%.
Finally, the Company should satisfy remaining unsecured bonds with a combination of cash and convertible preferred securities. Cash can come from either excess balance sheet cash, or a $200 million rights offering. (4) The convertible preferred securities should contain a mandatory dividend payable in securities at the Company's option at an appropriate rate, be callable at the Company's option, and be convertible into common equity in certain circumstances. Such a structure would enable Visteon to reinstate its existing equity (subject, of course, to dilution for the rights offering, if necessary, a management incentive plan, and the convertible preferred securities described above). Designed properly, such a structure ought to preserve the value of the Company's significant net operating losses.
The Ad Hoc Equity Committee reserves its rights to seek termination of exclusivity to propose a plan and/or seek the appointment of an examiner to protect its interests, as well as all other rights granted by the Bankruptcy Code. The appointment of an examiner may be particularly appropriate given the wide gulf between the Company's prior projections and actual results, the limited changes made in the Plan, and the issues the Company's Plan raises as to whether the Company and its Board are carrying out their fiduciary duties.
Of course, the Ad Hoc Equity Committee's preference is to work collaboratively with the Board, management, and the Company's other stakeholders to ensure a consensual chapter 11 plan that treats all stakeholders fairly, and rewards management for improved performance. The shareholders are the Company's owners, and we trust the Board and management will act in accordance with the shareholders' best interests consistent with their fiduciary duty.
We look forward to your response.
Sincerely,
Martin J. Bienenstock
MJB/ds
(1) The members of the Ad Hoc Equity Committee may also hold other Visteon securities from time to time.
(2) As we noted in our letter, the projections in the Disclosure Statement, dated December 17, 2009, issued in support of the debtors proposed plan just two weeks before the end of the 2009 fiscal year, egregiously understated actual income and cash as of the end of 2009. Additionally, the Company's projections did not materially change from December 17, 2009 to March 15, 2010 notwithstanding its proven understated 2009 projections.
(3) The Company improperly considers only "excess cash" as part of its valuation, and not "total cash". We are well advised by the Company that much of the Company's $1.1 billion of cash is located overseas and not able to be repatriated without tax consequences and understand that dividends from the Company's affiliates which are not wholly-owned are uncertain. But neither of these facts allows the Company to simply ignore the value of these assets and hand them over to senior creditors at the expense of other stakeholders to whom it owes fiduciary obligations to preserve value.
(4) While the Ad Hoc Equity Committee doesn't believe the Company needs additional liquidity, the Ad Hoc Equity Committee is willing to demonstrate its fundamental belief that the present Plan undervalues the Company by agreeing to participate in such a rights offering. The rights offering would be offered first to existing equity holders and then to unsecured claimholders if they would like to participate. To ensure full subscription, the members of the Ad Hoc Equity Committee will consider backstopping the rights offering, which would be subject to standard and customary conditions.
Buzz up! 0
CYBI 25 Million market cap VS 43 Million+ in net tangable assets
Profitable last 2 quaters
Strong postive cash flows
Undervalued Chart is also at a point here ready to breakout 1.50 a share currently vs over 2.50 Book Value
Over 120 Million in revenues and like i said profitable
Strong out look going forward and huge insider ownership as well
CYBI WOW Value Investors take a look at this one
CYBI 25 Million market cap VS 43 Million+ in net tangable assets
Profitable last 2 quaters
Strong postive cash flows
Undervalued Chart is also at a point here ready to breakout 1.50 a share currently vs over 2.50 Book Value
Over 120 Million in revenues and like i said profitable
Strong out look going forward and huge insider ownership as well
CYBI WOW Value Investors Take a Look at this one CYBI 25 Million market cap VS 43 Million+ in net tangable assets
Profitable last 2 quaters
Strong postive cash flows
Undervalued Chart is also at a point here ready to breakout 1.50 a share currently vs over 2.50 Book Value
Over 120 Million in revenues and like i said profitable
Strong out look going forward and huge insider ownership as well
CYBI Alert HOD Getting ready to breakout
CYBI DD Market Cap: 25.17M VS Net Tangible Assets $43,109
Total Revenue 34,812 28,985 27,755 28,922 Revenues are increasing nice
Gross Profit 11,807 9,157 7,145 7,899 so is the gross profit
Selling General and Administrative 9,748 8,997 9,072 9,863 Cost staying flat nice
Operating Income or Loss 2,059 160 (1,927) (1,964) Company swung to a profit very nice
Net Income From Continuing Ops 993 81 (2,104) (1,407) Taking those profits now to the bottom line
Cash And Cash Equivalents 6,879 1,169 1,119 995 Over 6 Million in cash now growing very nice nearly 7 Million
Total Current Assets 40,004 Thats 40 MIllion
Total Assets 88,635 88 Million VS Total Liabilities 45,526
Leaving us as shareholders Net Tangible Assets $43,109 for 25 Million market cap with a profitable company and cash flow postive as well VERY NICE
Total Cash Flow From Operating Activities 7,219 9,092 9,101
CYBI DD Market Cap: 25.17M VS Net Tangible Assets $43,109
Total Revenue 34,812 28,985 27,755 28,922 Revenues are increasing nice
Gross Profit 11,807 9,157 7,145 7,899 so is the gross profit
Selling General and Administrative 9,748 8,997 9,072 9,863 Cost staying flat nice
Operating Income or Loss 2,059 160 (1,927) (1,964) Company swung to a profit very nice
Net Income From Continuing Ops 993 81 (2,104) (1,407) Taking those profits now to the bottom line
Cash And Cash Equivalents 6,879 1,169 1,119 995 Over 6 Million in cash now growing very nice nearly 7 Million
Total Current Assets 40,004 Thats 40 MIllion
Total Assets 88,635 88 Million VS Total Liabilities 45,526
Leaving us as shareholders Net Tangible Assets $43,109 for 25 Million market cap with a profitable company and cash flow postive as well VERY NICE
Total Cash Flow From Operating Activities 7,219 9,092 9,101
YTEC on the move up just getting started tho look at the bigger chart the MACD hasnt even started to turn back up yet on this one but when it does it will explode to the upside it has a big gap to fill to the upside
SVLF 5$+ A share Book Value selling for a 1.14 with Blow Out Earnings this one is a no brainer
Just broke out on Blow Out earnings
Closed above its 200 day moving avg w volume
Company has a strong out look going forward
Insiders buying stock
Company is buying back stock as well with the CEO stating that the stock is undervalued and has potential for a take over target
SVLF Closed Above its 200 day moving avg yesterday w strong vol after breaking out on a very strong earnings report with a great out look going forward with over 5$ per share in book value and the company doing a stock buy back this one is a no brainer
Insiders are also buying stock as well
Check the chart should take out the 52 week highs soon enough on those earnings and out look
SVLF 1.44 Target check the chart last time it had this Very Same Setup and ran to a 1.44 so 1.40s is my first target on this one just broke out of a Huge consoldation also great earnings and 6$ a share book value here as well
SVLF Breakout ALERT 1.10 Gold Cross 200 day moving avg Check the chart
SVLF Breakout ALERT 1.10 Gold Cross 200 day moving avg Check the chart