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Bought May 2nd calls yesterday for .16 (it was available for .1 the day before) -same feeling of rebound after the earnings. The max I can lose is $450
Form 10-K for OMEGA PROTEIN CORP
10-Mar-2014
Annual Report
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following is a discussion of the Company's financial condition and results of operations. This discussion should be read in conjunction with the Consolidated Financial Statements of the Company appearing under Item 8 of this Report. Certain amounts applicable to the prior periods have been reclassified to conform to the classifications currently followed.
For the years ended December 31, 2012 and 2011, the Company reclassified $0.2 million and $0.5 million, respectively, of cash flows from operating activities to cash flows from investing activities related to accrued capital expenditures. These revisions were not considered to be material, individually or in the aggregate, to previously issued financial statements. These revisions had no effect on the results of operations (net or comprehensive income) or financial condition (stockholders' equity).
Company Overview
Business. The Company operates in two primary industry segments: animal nutrition and human nutrition.
The animal nutrition segment is comprised primarily of two subsidiaries: Omega Protein, Inc. and Omega Shipyard, Inc. Omega Protein, Inc. ("Omega Protein"), the Company's principal operating subsidiary, is predominantly dedicated to the production of animal nutrition products and operates in the menhaden harvesting and processing business and is the successor to a business conducted since 1913. Prior to December 2013, Omega Protein operated four menhaden processing plants:
two in Louisiana, one in Mississippi and one in Virginia. In December 2013, the Company closed its Cameron, Louisiana menhaden processing plant and is re-deploying some of its harvesting and processing assets to the three remaining menhaden processing plants. The Company also operates a Health and Science Center in Reedville, Virginia, which provides 100-metric tons per day fish oil input capacity for the Company's food, industrial and feed grade oils. A portion of Omega Protein's production is transferred to its human nutrition segment where it is further processed and sold. Omega Shipyard, Inc. ("Omega Shipyard") owns and operates a drydock facility in Moss Point, Mississippi that is used to provide shoreside maintenance for Omega Protein's fishing fleet and, subject to outside demand and excess capacity, occasionally for third-party vessels.
The human nutrition segment, which operates under the name Nutegrity, is comprised primarily of three subsidiaries: Cyvex, InCon and WSP. Cyvex, acquired by the Company in December 2010, is located in Irvine, California and is an ingredient provider in the nutraceutical industry. InCon, acquired by the Company in September 2011, is located in Batavia, Illinois and is a specialty processor that utilizes molecular distillation technology to concentrate Omega-3 fish oils and, subject to outside demand and excess capacity, a variety of other compound products for third-party tolling customers. WSP, acquired by the Company on February 27, 2013, is a manufacturer and marketer of specialty dairy and other protein products headquartered in Madison, Wisconsin and operates a production facility in Reedsburg, Wisconsin. For additional information related to the Company's acquisition of WSP, see Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C to our consolidated financial statements included in Item 8. The Company also has a technical center in Houston, Texas, the Omega Protein Technology and Innovation Center, which has food science application labs as well as analytical, sensory, lipids research and pilot plant capabilities. For financial information about our industry segments for years 2013, 2012 and 2011, see Note 20 to our consolidated financial statements included in Item 8.
Fishing and Production. Omega Protein is the largest U.S. producer of protein-rich meal and oil derived from marine sources. Omega Protein's products are produced from menhaden (a herring-like fish found in commercial quantities), and include regular grade and value-added specialty fish meals, crude and refined fish oils and fish solubles. Omega Protein's fish meal products are used as nutritional feed additives by animal feed manufacturers and by commercial livestock producers. Omega Protein's crude fish oil is sold to food producers and feed manufacturers, and its refined fish oil products are used in food production, feed production, certain industrial applications as well as dietary supplements. Fish solubles are sold as attractants for animal feeds and baits and as fertilizers.
Omega Protein's harvesting season generally extends from early May through December on the mid-Atlantic coast and from mid-April through October on the Gulf coast. During the off-season and the first few months of each fishing season, Omega Protein fills purchase orders from the inventory it has accumulated during the previous fishing season or in some cases, by re-selling meal and oil purchased from other suppliers.
In 2011, Omega Protein experienced its highest fish catch since 2002 and its highest overall production since 2003. The increased level of production contributed to the highest revenues and overall cost of production in the Company's history. Low fish oil yields, which were 28.7% below the Company's five year oil yield average, offset some of the positive fish catch impact, resulting in higher per unit product costs. 2011 per unit product costs increased 3.4% and 2.2% as compared to 2010 and 2009 per unit product costs, respectively. The higher unit product cost inventories from the 2011 fishing season were largely sold by June 30, 2012.
The Company's 2012 oil yield results were the poorest in its recent history. For illustrative purposes, the Company's oil yields for 2012 were lower by 20.4% compared to 2011 and were lower by 40.6% compared to the Company's five year oil yield average. Total yields in 2012 decreased by 1.7% compared to those in 2011 and were lower by 8.7% compared to the Company's five year total yield average, due primarily to the lower fish oil yields. The Company believes that fish yields are influenced by multiple factors, including but not limited to, fish diet, weather, water temperature, fish population and age of fish, but such possible relationships and inter-relationships are not generally well understood. The impact of these poor oil yields resulted in higher per unit inventory cost and fewer volumes available for sale. These higher unit costs and fewer volumes available for sale adversely impacted financial results through the second quarter of 2013.
The Company's 2013 fish catch was 5.9% below the recent five year average but the related fish meal, oil and solubles production was 2.4% above the recent five year average due to improved oil yields. This reduction in fish catch is due in part to the Company's decision to delay the start of its 2013 Atlantic fishing season and utilize one less vessel due to the limit on fish caught along the Atlantic enacted by the ASMFC in 2013. For illustrative purposes, the Company's oil yields for 2013 were higher by 103.4% compared to 2012 and 34.0% compared to the Company's five year oil yield average.
The following table summarizes the Omega Protein's fishing and production for the indicated periods:
Years Ended December 31,
2013 2012 2011
Fish catch (short tons) 485,626 578,392 602,062
Production:
Fish Meal (short tons) 123,740 151,796 155,074
Oil (metric tons)
Crude 45,155 21,902 32,675
Refined 11,168 11,237 10,104
Solubles (short tons) 10,083 9,262 9,910
Total Production 190,146 194,197 207,763
Omega Protein's harvesting and processing business is seasonal and fluctuates from year to year and month to month due to natural conditions over which Omega Protein has no control. Poor fish catch and total yields have at times materially impacted the amount of products that Omega Protein has been able to produce.
Markets. Pricing for Omega Protein's products has been volatile in the past several years and is attributable mainly to the international availability, or the perceived international availability, of fish meal and fish oil inventories. In an effort to reduce price volatility and to generate higher, more consistent profit margins, Omega Protein has implemented a quality control program designed to increase its capability of producing higher quality fish meal products and, in conjunction therewith, enhanced its sales efforts to penetrate premium product markets. Additionally, the Company continues to market its refined fish oil to food manufactures and other related industries through the human nutrition segment. The Company has made sales of its refined fish oil, trademarked OmegaPure?, to food manufacturers in the United States and Canada at prices that provide substantially improved margins over the margins that can typically be obtained from selling non-refined crude fish oil. The Company has also made sales of OmegaActiv? to human supplement manufacturers.
Omega Protein generally sells most of its products on up to a twelve-month forward contract basis with the balance sold on a spot basis through purchase orders or under long-term forward contracts. Omega Protein's sales contracts generally contain force majeure and other production allocation provisions. Historically, fish meal and fish oil sold on a forward contract basis has fluctuated from year to year based upon perceived market availability and forward price expectations. As of December 31, 2013, Omega Protein had sold forward on a contract basis approximately 54,000 short tons of fish meal and 15,000 metric tons of fish oil for 2014, contingent on 2014 production and product availability. Of these 2014 forward sales, the majority was contracted during 2013. As a basis of comparison, as of December 31, 2012, Omega Protein had sold forward on a contract basis approximately 72,000 short tons of fish meal and 22,000 metric tons of fish oil for 2013.
Omega Protein's annual revenues are highly dependent on pricing, annual fish catch, production yields and inventories. Inventory is generally carried over from one year to the next year and Omega Protein determines the level of inventory to be carried over based on existing contracts, prevailing market prices of the products and anticipated customer usage and demand during the off-season. Thus, production volume does not necessarily correlate with sales volume in the same year and sales volumes will fluctuate from quarter to quarter. Omega Protein's fish meal products have a useable life of approximately one year from date of production. Practically, however, Omega Protein attempts to empty its warehouses of the previous season's products by the second or third month of the new fishing season. Omega Protein's crude fish oil products do not lose efficacy unless exposed to oxygen and, therefore, their storage life typically is longer than that of fish meal.
Acquisition of Wisconsin Specialty Protein, L.L.C. On February 27, 2013, the Company acquired 100% of the outstanding equity interest of WSP, a Wisconsin limited liability company, in a cash transaction pursuant to the terms of an agreement and plan of merger. WSP is now a wholly owned subsidiary of the Company and is operated as part of Nutegrity within the human nutrition segment.
WSP produces and markets a variety of value-added whey protein ingredients for the food and nutritional supplement industries, including organic and other specialty protein products, using processes applicable to a variety of nutritional dairy ingredients. The Company believes the acquisition of WSP enhances its presence in the specialty proteins markets and advances its goal of providing sustainable, value-added nutrition ingredients.
The Company paid an aggregate cash purchase price for the equity of WSP of $26.5 million plus $0.6 million representing WSP's excess working capital on the closing date and reimbursable capital expenditures, utilizing cash on hand. See Note 2 - Acquisition of Wisconsin Specialty Protein, L.L.C to our consolidated financial statements included in Item 8.
Acquisition of InCon Processing, L.L.C. In September 2011, the Company acquired InCon, a specialty toll processor that designs, pilots, synthesizes and purifies specialty chemical compounds utilizing molecular distillation technology to concentrate a variety of compound products, including Omega-3 fish oils. InCon is operated as part of Nutegrity and the Company believes that its concentration technology allows it to provide its customers with an enhanced range of Omega-3 fish oils in concentrated forms such as ethyl esters and triglycerides. The concentrated fish oils manufactured by InCon are marketed and sold under the Company's OmegaActiv?.
As consideration for the acquisition of InCon, the Company paid cash of $8.7 million, utilizing cash on hand, plus an additional $0.6 million representing InCon's estimated working capital on the closing date. As part of the equity purchase agreement, the sellers may earn additional amounts based on the annual earnings before interest, taxes, depreciation, and amortization, of InCon's toll processing and specialty product business during calendar years 2012 through 2016. See Note 3 - Acquisition of InCon Processing, L.L.C to our consolidated financial statements included in Item 8.
Acquisition of Cyvex Nutrition, Inc. In December 2010, the Company completed the acquisition of 100% of the outstanding common stock of Cyvex Nutrition, Inc. ("Cyvex"), a California corporation, in a cash transaction pursuant to the terms of a Stock Purchase Agreement with the founder and sole shareholder of Cyvex. Cyvex now is a wholly owned subsidiary of the Company and is operated as part of Nutegrity.
Cyvex was a nutraceutical supplier to dietary supplement manufacturers that focus on human health and wellness. It has enabled Nutegrity to expand the Company's presence in the human health and wellness market and provides access to the top supplement manufacturers who purchase a variety of ingredients, including fish oil.
As total consideration for the acquisition of Cyvex, the Company paid cash of $13.2 million, utilizing cash on hand, with no contingent consideration. This amount includes final post-closing cash payments of $2.2 million made to Cyvex's former owner during 2011, of which $2.0 million was included in accrued liabilities at December 31, 2010.
Results of Operations
The following discussion segregates the financial results of our two industry segments: animal nutrition and human nutrition. For a discussion of our segments, see Note 20 to our consolidated financial statements included in Item 8.
Animal Nutrition - 2013 compared to 2012
Years Ended December 31,
Increase
2013 2012 (Decrease)
(in millions)
Revenues $ 213.2 $ 213.6 $ (0.4 )
Cost of sales 136.1 176.6 (40.5 )
Gross profit 77.1 37.0 40.1
Selling, general and
administrative expenses (including
research and development) 2.8 2.5 0.3
Loss related to plant closure 6.6 - 6.6
Charges related to U.S. Attorney
investigation - 8.0 (8.0 )
Other (gains) and losses 0.1 (2.6 ) 2.7
Operating income $ 67.6 $ 29.1 $ 38.5
Revenues. Animal nutrition revenues decreased $0.4 million, or 0.2%, from $213.6 million in 2012 to $213.2 in 2013. The decrease in animal nutrition related revenues was primarily due to a $2.4 million decrease in Omega Shipyard revenues and decreased sales volumes of 27.7% for the Company's fish meal offset by increased sales prices of 22.7% for the Company's fish meal and increased sales volumes and prices of 2.3% and 43.2%, respectively, for the Company's fish oil. Considering fish meal, fish oil and fish solubles sales activities in total, the Company experienced a $50.0 million increase in revenues due to the increase in sales prices, partially offset by a decrease in revenue due to decreased sales volumes, when comparing 2013 and 2012. The decreases in fish meal sales volumes for 2013 are primarily due to the timing of contracts and reduced available fish meal inventory due to decreased fish catch from the 2012 to 2013 fishing season. The increase in fish meal sales prices for 2013 is primarily due to sales made pursuant to contracts entered into during 2012 and early 2013 when fish meal prices were higher due to a decreased global supply of fish meal available for sale, particularly from South America, as compared to 2012, when sales were made pursuant to contracts entered into during 2011 and early 2012. The increase in fish oil sales prices is due primarily to the limited global supply and increased demand primarily from the aquaculture and human supplement industries. Omega Shipyard's third party revenues were $2.4 million for 2012 due to a barge construction contract. There were no shipyard third party revenues for 2013.
Cost of sales. Animal nutrition cost of sales, including depreciation and amortization, for 2013 was $136.1 million, a decrease of $40.5 million, or 22.9%, as compared to 2012. Cost of sales as a percentage of revenues was 63.8% for 2013 as compared to 82.7% for 2012. The decrease in cost of sales as a percentage of revenues was primarily the result of increased revenue per unit of 29.9%, partially offset by increased cost per unit of sales of 0.8% during 2013 as compared to 2012. The increase in revenue per unit is primarily due to increased fish meal and fish oil sales prices as discussed above. Omega Shipyard's third party cost of sales was $2.9 million for 2012 and a gain of $0.2 million for 2013 as a result of the expiration of a previously recognized warranty reserve.
Gross profit. Animal nutrition gross profit increased $40.1 million, or 108.2%, from $37.0 million for 2012 to $77.1 million for 2013. Gross profit as a percentage of revenue was 36.2% for 2013 as compared to 17.3% for 2012. The increase in gross profit as a percentage of revenue was primarily due to the increase in revenue per unit as discussed above. Omega Shipyard's gross loss was $0.5 million in 2012 compared to gross profit of $0.2 million for 2013.
Selling, general and administrative expenses. Animal nutrition selling, general and administrative expenses increased $0.3 million, or 7.0%, from $2.5 million in 2012 to $2.8 million in 2013. The increase in selling, general and administrative expenses is primarily due to increased professional services costs.
Loss related to plant closure. As a result of the closing the Cameron, Louisiana fish processing plant, the Company recognized a loss on closure of approximately $6.6 million related to the impairment of harvesting and processing assets, employee severances and other ongoing closure costs not related to future inventory production. The Company did not recognize losses related to this matter during 2012.
Charges related to U.S. Attorney investigation. During 2012, the Company recognized charges of $8.0 million related to an investigation by the U.S. Attorney's Office in the Eastern District of Virginia. These charges related to fines and penalties as well as legal fees, some of which were paid in 2013. The Company did not recognize expenses related to this matter during 2013.
Other (gains) and losses. The Company recorded animal nutrition losses for 2013 of $0.1 million primarily relating to a $0.3 million reduction in an insurance receivable associated with the 2011 F/V Sandy Point incident, partially offset by the receipt of other insurance proceeds related to fully depreciated assets. Animal nutrition related other gains for 2012 of $2.6 million primarily relate to net gain for the Morgan City, Louisiana facility that was sold during June 2012 and insurance proceeds for property that was damaged and inventory that was lost in 2011, partially offset by the net loss on disposal of certain assets including three fishing vessels.
Human Nutrition - 2013 compared to 2012
Years Ended December 31,
Increase
2013 2012 (Decrease)
(in millions)
Revenues $ 31.1 $ 22.0 $ 9.1
Cost of sales 25.4 17.0 8.4
Gross profit 5.7 5.0 0.7
Selling, general and
administrative expenses (including
research and development) 7.0 3.8 3.2
Other (gains) and losses 0.3 0.1 0.2
Operating income $ (1.6 ) $ 1.1 $ (2.7 )
Revenues. Human nutrition revenues increased $9.1 million, or 41.1%, from $22.0 million during 2012 to $31.1 million during 2013. Protein products from WSP, acquired by the Company on February 27, 2013, contributed $9.8 million of revenue during 2013. Other nutraceutical ingredients provided $15.5 million of revenue during 2013 as compared to $17.1 million for 2012. Omega-3 fish oil ingredients and tolling supplied $5.8 million of revenue (including $2.3 million from tolling) during 2013 as compared to $4.9 million (including $3.0 million from tolling) for 2012.
Cost of sales. Human nutrition cost of sales, including depreciation and amortization, for 2013 was $25.4 million, an $8.4 million increase, or 49.4%, as compared to 2012. Human nutrition cost of sales as a percentage of revenue increased from 77.2% for 2012 to 81.8% for 2013. Protein products cost of sales was $7.4 million for 2013. Other nutraceutical ingredients cost of sales was $9.5 million during 2013 as compared to $9.9 million 2012. Omega-3 fish oil ingredients and tolling's cost of sales was $8.5 million during 2013 as compared to $7.1 million for 2012 due to increased sales volumes and activity.
Gross profit. Human nutrition gross profit increased $0.7 million, or 12.7%, from $5.0 million for 2012 to $5.7 million for 2013. Gross profit as a percentage of revenue was 18.2% for 2013 as compared to 22.8% for 2012. The decrease in gross profit as a percentage of revenue was primarily due to lower other nutraceutical sales and gross profit as a percentage of sales and transition costs associated with the post-acquisition conversion of an Omega-3 fish oil processing plant. In addition, gross profit as a percentage of revenue for 2013 was negatively impacted by the one time inventory write-up to fair value that was made in conjunction with the WSP acquisition in February 2013.
Selling, general and administrative expenses. Human nutrition related selling, general and administrative expenses increased $3.2 million, or 83.4%, from $3.8 million in 2012 to $7.0 million in 2013. The increase in selling, general and administrative expenses is primarily due to the acquisition of WSP on February 27, 2013 as well as increased employee compensation related and marketing costs.
Other (gains) and losses. Human nutrition related other losses increased $0.2 million to $0.3 million for 2013. Human nutrition related other losses for 2013 and 2012 mainly result from impairment expenses of $0.3 million and $0.1 million, respectively, related to the excess of carrying value over fair value for certain indefinite lived intangible assets.
Unallocated - 2013 compared to 2012
Years Ended December 31,
Increase
2013 2012 (Decrease)
(in millions)
Selling, general and administrative expenses
(including research and development) $ 18.0 $ 17.6 0.4
Operating income $ (18.0 ) $ (17.6 ) $ (0.4 )
Selling, general and administrative expenses (including research and development). Unallocated selling, general and administrative expenses increased $0.4 million, or 2.3%, from $17.6 million in 2012 to $18.0 million in 2013. The increase in selling, general and administrative expenses is primarily due to professional services expenses including costs related to the acquisition of WSP on February 27, 2013, partially offset by decreased employee compensation related costs.
Other non-segmented results of operation - 2013 compared to 2012
Interest expense. Interest expense increased $0.3 million from $1.3 million for 2012 to $1.6 million for 2013. Capitalized interest, which offsets interest expense, was $0.3 million and $0.8 million for 2013 and 2012, respectively.
Provision for income taxes. The Company recorded a $15.5 million provision for income taxes for 2013 representing an effective tax rate of 33.6% for income taxes compared to 62.9% for 2012. The decrease in the effective tax rate is primarily a result of a predominately non-deductible charge related to the U.S. Attorney's Office investigation recognized during 2012. The statutory tax rate of 35% for U.S. federal taxes was in effect for 2013 and 2012.
Animal Nutrition - 2012 compared to 2011
Years Ended December 31,
Increase
2012 2011 (Decrease)
(in millions)
Revenues $ 213.6 $ 236.5 $ (22.9 )
Cost of sales 176.6 187.1 (10.5 )
Gross profit 37.0 49.4 (12.4 )
Selling, general and administrative expenses
(including research and development) 2.5 2.8 (0.3 )
Charges related to U.S. Attorney investigation 8.0 0.5 7.5
Other (gains) and losses (2.6 ) (24.8 ) 22.2
Operating income $ 29.1 $ 70.9 $ (41.8 )
Revenues. Animal nutrition related revenues decreased $22.9 million, or 9.7%, from $236.5 million in 2011 to $213.6 in 2012. The decrease in animal nutrition related revenues was primarily due to decreased sales volumes of 6.1% and 25.7% for the Company's fish meal and fish oil, respectively, and decreased sales prices for the Company's fish meal of 2.5%, partially offset by increased sales prices of 10.6% for the Company's fish oil. Considering fish meal, fish oil and fish solubles sales activities in total, the Company experienced a $23.6 million . . .
http://biz.yahoo.com/e/140310/ome10-k.html
Company performance the last 3 years - page 37
http://filings.irdirect.net/data/1104855/000114036114011667/form10k.pdf
Q4 2013 Financial Summary
For the fourth quarter of 2013, total non-GAAP revenue was $24.9 million compared to $18.9 million in the fourth quarter of 2012 and $23.7 million in the third quarter of 2013. Total GAAP revenue for the fourth quarter of 2013 was $24.5 million, after a warrant-related charge to revenue of $394,000, compared to $18.9 million in the fourth quarter of 2012, which did not have a warrant-related charge, and $23.4 million in the third quarter of 2013, after a warrant-related charge to revenue of $383,000.
On a non-GAAP basis, income from continuing operations for the fourth quarter of 2013 was $5.3 million, or $0.10 per share, compared to $2.9 million, or $0.06 per share, in the fourth quarter of 2012 and $4.6 million, or $0.08 per share, in the third quarter of 2013.
On a GAAP basis, income from continuing operations for the fourth quarter of 2013 was $2.8 million, or $0.05 per share, compared to $1.2 million, or $0.02 per share, in the fourth quarter of 2012 and $3.0 million, or $0.06 per share, in the third quarter of 2013.
At December 31, 2013 cash, cash equivalents and investments were $72.4 million compared to $68.5 million at September 30, 2013.
2013 Financial Summary
Total non-GAAP revenue for 2013 was $88.9 million compared to $72.0 million in 2012. Total GAAP revenue for 2013 was $88.2 million, after warrant-related charges of $777,000.
Non-GAAP income from continuing operations for 2013 was $16.8 million, or $0.31 per share, compared to $935,000, or $0.02 per share, in 2012.
On a GAAP basis, income from continuing operations for 2013 was $10.3 million, or $0.19 per share, compared to a loss of $5.5 million, or $(0.11) per share, in 2012.
Non-GAAP revenue excludes warrant related charges. Non-GAAP income from continuing operations excludes warrant-related charges, stock-based compensation expense, amortization of intangible assets and other, restructuring and impairment charges, acquisition expense, other non-recurring items and tax expense associated with acquired goodwill. These items impacted results from continuing operations by $2.4 million in the fourth quarter of 2013, $1.7 million in the fourth quarter of 2012 and $1.6 million in the third quarter of 2013. On an annual basis, these items impacted results from continuing operations by $6.4 million in 2013 and $6.5 million in 2012. A reconciliation of GAAP to non-GAAP results is presented in the tables below.
"Our 2013 results were strong, with outstanding growth in revenue, profitability and cash flow," said Josh Pickus, President and CEO. "Program changes at the end of the year adversely affected our outlook for the first quarter of 2014, but we are moving forward aggressively with growth in existing programs, new customer wins and innovative product plans for current and future markets.”
Recent Company Highlights
Bundled home networking support program growing; additional agent hiring in process
DISH® Network program expanding
New premium technology support deals for Sam’s Club, Carbonite and Suddenlink
Selected for first home security and automation program
Software as a Service customer base continues to grow
Next generation Nexus® Service Platform to be released in first quarter of 2014
Recent Financial Highlights
Fourth quarter non-GAAP revenue grew 32% from prior year and 5% sequentially; 2013 non-GAAP revenue grew 24% from prior year
Fourth quarter non-GAAP income from continuing operations grew 78% from prior year and 14% sequentially; non-GAAP income from continuing operations grew from $0.02 per share in 2012 to $0.31 per share in 2013
Cash, cash equivalents and investments grew by $3.9 million in fourth quarter and $16.0 million in 2013
http://www.support.com/about/releases/Support_com_Reports_Fourth_Quarter_2013_Financial_Results
I think they have an offer of $100 billion still 13 billion away from current price of 69.
http://drugstorenews.com/article/report-pfizer-making-100-billion-play-astra-zeneca
I should have bought $40 clothes at JC Penny instead. Already covered..lol
I am glad I only went 50 short. This was the first time I shorted..so it's okay I guess. It was a test than anything.
I'm trying to connect with some of the GSB employees to see their resume..but so far no acceptance. Anyway..here is something I have found and I feel that they are hiring people to sell this product --
Globalscape is extremely conscientious in all matters regarding information assurance and protection of information flowing through our software products. Given the severity of this vulnerability—and the high levels of anxiety caused by the breadth of coverage on this issue—Globalscape would like to communicate to everyone that the Enhanced File Transfer™ (EFT™) platform is safe and always has been. Our software engineering experts have verified that no version of EFT is vulnerable to the Heartbleed exploit. All versions of EFT Enterprise and EFT Standard (including deployments using Globalscape DMZ Gateway® are safe from this exploit, because the version of the OpenSSL library that the EFT product uses does not include the TLS Heartbeat functionality, and therefore is not vulnerable to this attack.
Mail Express™ v3.3 and later, however, may be vulnerable depending on how you've implemented it on your network. Mail Express v3.3 and later use two different secure communication implementations, depending on the communication path being used.
http://www.globalscape.com/blog/2014/4/10/eft.unaffected.by.heartbleed.exploit.workarounds.are.available.for.mail.express?pi_campaign_id=4606
Common sense tells me that EFT platform is going to be on demand because of bypassing heartbleed. And it must be more expensive than Mail Express- which may be vulnerable or which may be low margin product..And most of the 'cash rich' corporations must be not worrying about paying a premium for a product that has the capability to bypass 'heart-bleeding' virus. This company has grown revenue 10 out of 11 times in the last 11 years. So, this is a recession proof business.
Wade, let me do some more research on the company/industry and will get back to you before market opens on Monday. Have a good evening.
I have worked in the software industry in the past..this company has potential to grow..PGP was bought by Symantec in 2010 and corporations are so much about encryption/decryption these days..they want to encrypt/decrypt everything. I participated on a lot of projects in this area..(was not a coder - just the middle person working with business and coders)
EFT employs industry-standard OpenPGP (based on the open source implementation of Pretty Good Privacy) technology to safeguard data at rest. In contrast to symmetric encryption technologies that rely on a single password or shared secret for encryption and decryption, OpenPGP uses a public/private key pair and a password.
EFT adheres to the OpenPGP standard and is RFC 2440 compliant. OpenPGP is a standard and has no version. Refer to RFC 2440 for details.
http://www.globalscape.com/mft/open-pgp.aspx
Shorting RSH?
From 11 to now 8. I wish they hire people in A/R department but not yet..but in sales area--2 good hiring..
International Inside Channel Sales Manager (iCSM)
Latin America Inside Channel Sales Manager (iCSM)
http://globalscapejobs.iapplicants.com/SearchJobs-employment_type.html
I meant PPS going down (chose the wrong word)...backstop investor is my new google alert..lol
Stock price is going up and up...but don't you think it will crash soon? When the offerings are over?
Whats up with SDRL ? Low P/E, awesome dividend..what is wrong?
I have also been following the board
I am short 50 shares of JCP since few days ago. And whatever happens to JCP stock price - JC Penny will remain - only the shareholders may change
I lose most of the time.
http://www.nasdaq.com/markets/coffee.aspx slipping back up
I find S/A comments more useful than articles. There are some very good comments on JCP/RSH (ones who are shorting)
It needs 'no excuse' apparently to go further down.
http://www.platts.com/latest-news/shipping/london/waf-nwemed-suezmax-freight-rates-soar-on-greater-26082515
Suezmax dirty tanker rates on the WAF to Northwest Europe route rebounded Friday due to more inquiries for cargoes, and low availability of ships on this route for the third week of July, shipping sources said Monday.
The WAF-NWE, basis 130,000 mt, freight rate rose Worldscale 2.50 day on day to be assessed at w52.50, the highest since May 17, when it was at w55, Platts data showed.
The freight rate on this route soared Friday after hitting its lowest level in nearly two-and-a-half years almost 10 days ago on June 27.
"Sentiment is firmer on WAF-NWE Suez max in the west," a shipbroker said. "There is a shortage of ships on the WAF-NWE route and on routes to the Med," a shipowner said.
Typically, the freight rate on the WAF to Mediterranean Suezmax route moves in tandem with the rates on WAF-NWE Suezmax, according to the shipping sources.
The WAF-Med rates on a 130,000 mt basis rose w2.50 to w52.50, also the highest since May17 when it was w55, Platts data showed
56Chevy had told me to look at this bank very carefully..and I did look very carefully (with my eyes closed)..Used to live 40 miles from the bank..congratulation on this one as well.
Anybody good with software niche??? Do you know anything better than google alerts? Can I use 'COMPLEX' coding to make google alert - alert me quickly and efficiently than today?
Well my basic question is..can we enhance google alerts? Is this something you use, and if you do, would you be willing to share how it is working for you? Alerts are important. Very....faster you get alerts is better..just like vising the doctor in advance is better than being diagnosed with critical disease (of course the doctor must know what he/she is talking about)...
Google alert..anyone uses? Anyone with computer science background?..PM me please..I have asked my contacts...and they're basically lethargic middle class even though they're smart
Someone just twitted --- $TWTR down like an escalator and up like an elevator
Someone just twitted --- $TWTR down like an escalator and up like an elevator
Good software company. They have grown 10 times in the last 11 years according to this presentation they have shared in their website...
turn to page # 15..
http://www.globalscape.com/files/GlobalSCAPE_AGC_Presentation_20140224.pdf
Added some today @ 6.89. Junior PEIX. The money they'll make from selling regular coffee at higher price can be used to grow/expand their "Green" coffee biz...which has higher margin...hopefully
I have been following the company on twitter....and they follow a lot of oil and gas related twitter links (including Mr Keith Schaffer..Here is the latest tweet from the company
Check out our presentation at #GPA Dallas today at 2:15 and learn to #profit from pressure with our #IsoGen system!
https://twitter.com/ERIEnergy
http://www.energyrecovery.com/isogen-system
This company should do good in my opinion.. may be not this quarter but by this time next year...(hopefully).
Coffee up again . JVA = Junior PEIX
http://www.nasdaq.com/markets/coffee.aspx
Another 80000 picked by someone at .2499
OKLAHOMA CITY, Apr 10, 2014 (BUSINESS WIRE) -- Chesapeake Energy Corporation CHK +0.80% today announced the commencement of a tender offer (the “Tender Offer”) for any and all of its 9.50% Senior Notes due 2015 (the “Notes”).
The Tender Offer is being made pursuant to an Offer to Purchase and a related Letter of Transmittal, each dated April 10, 2014, which set forth a more detailed description of the terms and conditions of the Tender Offer.
Upon the terms and subject to the conditions described in the Offer to Purchase, the Letter of Transmittal and any amendments or supplements to the foregoing, Chesapeake is offering to purchase for cash any and all of the outstanding Notes.
Holders must validly tender their Notes at or prior to 5:00 p.m., New York City time, on April 23, 2014 (such date and time, as it may be extended, the “Early Tender Date”) to be eligible to receive the Total Consideration (as set forth in the table below), which includes the Early Tender Premium (as set forth in the table below). The Tender Offer will expire at 11:59 p.m., New York City time, on May 7, 2014, unless it is extended or earlier terminated (such date and time, as it may be extended, the “Expiration Date”).
Notes CUSIP/ISIN
Numbers Principal Amount
Outstanding Purchase
Price(1) Early Tender
Premium(2) Total
Consideration(1)
9.50% Senior Notes due 2015 165167CD7/
US165167CD78 $1,264,697,000 $1,042.00 $30.00 $1,072.00
______________________________
(1) Per $1,000 principal amount of Notes validly tendered and accepted for purchase in the Tender Offer, and excluding any accrued interest, which will be paid in addition to the Total Consideration or Purchase Price, as applicable, up to but not including the applicable settlement date.
(2) Per $1,000 principal amount of Notes validly tendered and accepted for purchase in the Tender Offer prior to the Early Tender Date; included in Total Consideration.
Chesapeake’s obligation to accept for purchase and to pay for Notes in the Tender Offer is subject to the satisfaction or waiver of a number of conditions, including the receipt by Chesapeake, at or prior to the early settlement date (as described below), of the net proceeds from the issuance of not less than $3.0 billion in principal amount of indebtedness in one or more debt financing transactions, including debt capital markets transactions, on terms reasonably satisfactory to Chesapeake (the “Financing Condition”). On April 10, 2014, Chesapeake commenced an offering of $3.0 billion of its senior notes, and such offering, if successfully completed, will satisfy the Financing Condition. The Tender Offer is not contingent upon the tender of any minimum principal amount of Notes. This press release is not an offer to sell or the solicitation of an offer to buy any securities. Offers and sales of any securities will only be made by means of a prospectus or offering memorandum, on the terms and subject to the conditions set forth therein.
Holders of Notes that are validly tendered at or prior to the Early Tender Date and accepted for purchase by Chesapeake will receive the Total Consideration, which is equal to the Purchase Price (as set forth in the table above) for the Notes plus the Early Tender Premium for the Notes. Holders of Notes tendered after the Early Tender Date but before the Expiration Date and accepted for purchase by Chesapeake will receive the Purchase Price, but not the Early Tender Premium.
In addition to the Purchase Price or the Total Consideration, as the case may be, holders of Notes accepted for purchase will also receive accrued and unpaid interest on those Notes from the last interest payment date for the Notes to, but not including, the applicable settlement date for the Notes.
Settlement of Notes that are validly tendered and accepted for purchase at or prior to the Early Tender Date will promptly follow the satisfaction or waiver of the Financing Condition and the other conditions applicable to the Tender Offer but will in no event be earlier than the Early Tender Date. Chesapeake currently anticipates that such early settlement date will occur on or about April 24, 2014 (such date being subject to change without prior notice).
Settlement of Notes that are validly tendered and accepted for purchase after the Early Tender Date but before the Expiration Date will promptly follow the Expiration Date. Chesapeake currently anticipates that such final settlement date will occur on or about May 8, 2014 (such date being subject to change without prior notice).
Tendered Notes may be withdrawn from the Tender Offer at or prior to, but not after, 5:00 p.m., New York City time, on April 23, 2014 (the “Withdrawal Deadline”), unless the Withdrawal Deadline is extended or the Tender Offer is earlier terminated. Chesapeake expressly reserves the right, in its sole discretion, subject to applicable law, to (1) terminate the Tender Offer prior to the Expiration Date and not accept for purchase any Notes subject to the Tender Offer, (2) waive any and all of the conditions to the Tender Offer, (3) extend the Early Tender Date, Withdrawal Deadline or Expiration Date, (4) amend the terms of the Tender Offer or (5) change any settlement date for the Tender Offer. Until the Expiration Date, no assurance can be given that the Tender Offer will be completed.
Chesapeake has retained Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. as the dealer managers for the Tender Offer. D.F. King & Co., Inc. has been retained as the tender agent and information agent for the Tender Offer. For additional information regarding the terms of the Tender Offer, please contact: Morgan Stanley & Co LLC at (800) 624-1808 (U.S. toll free) or (212) 761-1057 (collect) or Citigroup Global Markets Inc. at (800) 558-3745 (U.S. toll free) or (212) 723-6106 (collect). Requests for documents and questions regarding the tender of Notes may be directed to D.F. King & Co, Inc. at the address, telephone numbers and email address set forth below.
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Attention: Krystal Scrudato
Banks and brokers call collect: (212) 269-5550
All others call toll-free: (800) 697-6975
Email: chk@dfking.com
http://www.marketwatch.com/story/chesapeake-energy-corporation-announces-cash-tender-offer-for-senior-notes-2014-04-10?reflink=MW_news_stmp
Dassault Systèmes Extends Tender Offer for Accelrys until April 22, 2014
One cent left
(Paris:DSY)(Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions announces the extension of the tender offer by its wholly owned indirect subsidiary, 3DS Acquisition Corp., to purchase all outstanding shares of Accelrys, Inc. (NASDAQ: ACCL) (Accelrys) common stock at an offer price of $12.50 per share in cash, without interest and subject to any required withholding of taxes. Dassault Systèmes is extending the expiration date of the tender offer until midnight, New York City time, at the end of the day on Tuesday, April 22, 2014, unless otherwise extended or terminated. Except for the extension of the tender offer, all other terms and conditions of the tender offer remain unchanged.
Computershare Trust Company, N.A., the depositary for the tender offer, has advised that as of midnight, New York City time, at the end of the day on April 8, 2014, approximately 42,362,148 shares of Accelrys common stock (excluding 496,224 shares of Accelrys common stock subject to notices of guaranteed delivery) had been validly tendered and not validly withdrawn pursuant to the tender offer, representing approximately 75.9 percent of the outstanding shares of Accelrys common stock.
Dassault Systèmes is extending the tender offer because the condition relating to receipt of written confirmation that the Committee on Foreign Investment in the United States (CFIUS) has completed its investigation of the acquisition of Accelrys by Dassault Systèmes and determined that there are no unresolved national security concerns was not satisfied by the previously scheduled expiration date of the tender offer. CFIUS is required to complete its investigation by May 8, 2014, but CFIUS may complete its investigation sooner. Dassault Systèmes continues to believe the acquisition of Accelrys by Dassault Systèmes does not raise national security concerns. The merger agreement with Accelrys requires the tender offer to be extended in increments of 10 business days, unless otherwise agreed by the parties, if at the then-scheduled expiration date a regulatory condition is not satisfied.
http://www.businesswire.com/news/home/20140408006824/en/Dassault-Syst%C3%A8mes-Extends-Tender-Offer-Accelrys-April#.U0abjKhX-uY
Dassault Systèmes Extends Tender Offer for Accelrys until April 22, 2014
One cent left
(Paris:DSY)(Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions announces the extension of the tender offer by its wholly owned indirect subsidiary, 3DS Acquisition Corp., to purchase all outstanding shares of Accelrys, Inc. (NASDAQ: ACCL) (Accelrys) common stock at an offer price of $12.50 per share in cash, without interest and subject to any required withholding of taxes. Dassault Systèmes is extending the expiration date of the tender offer until midnight, New York City time, at the end of the day on Tuesday, April 22, 2014, unless otherwise extended or terminated. Except for the extension of the tender offer, all other terms and conditions of the tender offer remain unchanged.
Computershare Trust Company, N.A., the depositary for the tender offer, has advised that as of midnight, New York City time, at the end of the day on April 8, 2014, approximately 42,362,148 shares of Accelrys common stock (excluding 496,224 shares of Accelrys common stock subject to notices of guaranteed delivery) had been validly tendered and not validly withdrawn pursuant to the tender offer, representing approximately 75.9 percent of the outstanding shares of Accelrys common stock.
Dassault Systèmes is extending the tender offer because the condition relating to receipt of written confirmation that the Committee on Foreign Investment in the United States (CFIUS) has completed its investigation of the acquisition of Accelrys by Dassault Systèmes and determined that there are no unresolved national security concerns was not satisfied by the previously scheduled expiration date of the tender offer. CFIUS is required to complete its investigation by May 8, 2014, but CFIUS may complete its investigation sooner. Dassault Systèmes continues to believe the acquisition of Accelrys by Dassault Systèmes does not raise national security concerns. The merger agreement with Accelrys requires the tender offer to be extended in increments of 10 business days, unless otherwise agreed by the parties, if at the then-scheduled expiration date a regulatory condition is not satisfied.
http://www.businesswire.com/news/home/20140408006824/en/Dassault-Syst%C3%A8mes-Extends-Tender-Offer-Accelrys-April#.U0abjKhX-uY
same here..lol
Brazil drought )..
Coffee Caps Biggest Rally in Six Weeks on Brazil Drought
http://www.bloomberg.com/news/2014-04-08/coffee-caps-biggest-rally-in-six-weeks-on-brazil-drought.html
Coffee price up a lot since Jan 2014
http://www.nasdaq.com/markets/coffee.aspx