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IMATION REPORTS FOURTH QUARTER AND FULL YEAR 2013 FINANCIAL RESULTS
Company Announces Sale of XtremeMacTM Business
OAKDALE, Minn.--(BUSINESS WIRE)--Feb. 7, 2014-- Imation Corp. (NYSE: IMN) today released financial results for its 2013 fourth quarter and year ended December 31, 2013. The Company also announced that it has divested its XtremeMac business and benefited from certain special items as it continues to execute on its strategic transformation.
Q4 Overview, Including Special Items
For the fourth quarter of 2013, Imation reported net revenue of $232.8 million, down 12.7 percent from Q4 2012, income from continuing operations of $21.1 million, diluted earnings per share from continuing operations of $0.47 and a cash balance of $132.6 million. The quarterly results were favorably impacted by $9.5 million of net benefit from special items, primarily a $9.8 million gain on the sale of land at a previously closed facility for which the Company received proceeds of approximately $10.0 million. Excluding these items, Q4 2013 income from continuing operations would have been $11.6 million, and diluted earnings per share from continuing operations would have been $0.25. EBITDA for the fourth quarter totaled $26.5 million (See Tables Five and Six for non-GAAP measures). In addition, Q4 operating results benefited from an accrual reversal of $9.5 million associated with European copyright levies as a result of a favorable court ruling in France.
For the full year 2013, revenue was $860.8 million, down 14.5 percent from 2012, and loss from continuing operations was $20.1 million, or $0.60 diluted loss per share. Special charges for the full year were $11.5 million. Excluding these special charges, 2013 loss from continuing operations would have been $8.6 million, and diluted loss per share from continuing operations would have been $0.37. EBITDA for the year totaled $3.6 million (See Tables Five and Six for non-GAAP measures). In addition, operating results for the year benefited from accrual reversals of $23.1 million associated with European copyright levies as a result of favorable court rulings in France in Q4 and Italy in Q2.
Imation’s CEO Mark Lucas commented, “We are pleased with our fourth quarter results, which benefited from lower than anticipated revenue declines in our legacy business, solid working capital and cost management, and several one-time gains. While this is encouraging, we have not reached an inflection point in our transformation as our growth products have not yet offset secular revenue declines in our legacy business. We ended 2013 with some of our lowest inventories ever and $132.6 million in cash, which provides us with the financial strength to execute our strategic transformation.”
Sale of Non-core Business
In the Company’s third quarter 2013 release, Imation announced it had signed a letter of intent to sell its XtremeMac consumer electronics business. On January 31, 2014, Imation completed the sale of this business as part of the effort to divest lower margin, non-core businesses.
Business Segment Overview
Imation’s Consumer Storage and Accessories (CSA) business revenue decreased 23.0 percent in Q4 2013 from the prior year, due chiefly to the continued secular declines in optical media products, as noted above. Gross margin remained solid for this segment. Cash generation was particularly strong as a result of improvements in working capital.
According to Lucas, “Our consumer business continues to evolve as the optical market progresses through its life cycle with corresponding revenue declines. Our TDK Life on RecordTM audio and accessories business enjoyed strong year over year revenue increases, and we have many new consumer storage products on our roadmap for 2014. While we do not expect CSA to return to revenue growth in the near term, it is expected to continue to be an important contributor of earnings and cash flow to the Company.”
Imation’s Tiered Storage and Security Solutions (TSS) business revenue increased 5.4 percent in Q4 2013 from the prior year, reflecting revenues from the NexsanTM acquisition. TSS gross margin rose 4.7 percentage points to 18.2 percent from 13.5 percent a year ago, as the product mix moves to higher margin storage and security solutions products. Imation expects this shift in product mix to continue with its focus on Nexsan and IronKeyTM products.
Lucas noted, “In TSS, Imation reported overall revenue and gross margin growth as a result of the Nexsan acquisition. Our magnetic tape business continues to decrease consistent with the overall market, but we have been able to maintain our market share through 2013. The steep revenue decline rates in magnetic tape that we saw through the middle of 2013 leveled off in the fourth quarter. Ongoing emphasis on working capital and cost management will be a key focus in this segment. Within our storage and security solutions portfolio, revenues were constrained by the macro factors that have persisted since the third quarter, such as uncertainty in government spending. We are just now beginning to see improvement in the pipeline for future orders, and longer term we expect robust growth from our storage and security portfolio.”
Lucas concluded, “During 2013, Imation continued to move away from our legacy media businesses to focus on growth categories in both consumer and commercial storage solutions. We also rebalanced our portfolio through the strategic Nexsan acquisition in data storage and the divestiture of two lower margin businesses. We continued to right-size our infrastructure, and operating expenses, excluding acquisitions, declined over 30 percent. We remain committed to our transformation and confident in its ultimate success.”
Detailed Q4 2013 Analysis
As a result of the XtremeMac and MemorexTM consumer electronics divestitures which occurred on January 31, 2014 and October 15, 2013, respectively, the financial results for those operations are presented as discontinued operations. The following financial results are for continuing operations for the current and prior periods unless otherwise indicated.
Net revenue for Q4 2013 was $232.8 million, down 12.7 percent from Q4 2012. From a segment perspective, TSS increased 5.4 percent and CSA declined 23.0 percent. Foreign currency exchange negatively impacted Q4 2013 revenues by 5 percent when comparing to Q4 2012.
Gross margin for Q4 2013 was 23.8 percent, up 7.7 percentage points from 16.1 percent in Q4 2012. Gross margin for Q4 2013 includes the reversal of a portion of the Company’s European levy accrual of $9.5 million, triggered by a favorable French court ruling received during Q4 2013. While this levy benefit improved gross margin by 4.1 percent in Q4 2013, the remainder of the improvement was due to operating factors. TSS gross margin for Q4 2013 was 18.2 percent, up from 13.5 percent in Q4 2012. CSA gross margin for Q4 2013 was 28.0 percent, up from 18.9 percent in Q4 2012, benefiting from the aforementioned levy reversal.
Selling, general and administrative (SG&A) expenses in Q4 2013 were $39.5 million, down $6.2 million compared with Q4 2012 expenses of $45.7 million. Imation reduced SG&A expenses by approximately $13.7 million due to cost reduction efforts and lower amortization expense as a result of intangible write-offs in 2012, which more than offset the Nexsan operating expenses added as a result of the acquisition that took place on December 31, 2012.
Research and development (R&D) expenses in Q4 2013 were $4.1 million, down slightly from $4.7 million in Q4 2012. The Company has reduced legacy R&D spending and has channeled its investments into higher margin projects in TSS, primarily through Nexsan.
Special items netted to $9.5 million of income in Q4 2013 and were primarily related to a $9.8 million gain on the sale of land at a previously closed facility and a $2.5 million gain from a litigation settlement, partially offset by restructuring and other charges. This is compared with special charges of $296.5 million in Q4 2012 primarily consisting of intangible asset and goodwill impairments.
Operating income was $21.1 million in Q4 2013 compared with an operating loss of $301.6 million in Q4 2012. Excluding the impact of special charges described above, adjusted operating income would have been $11.6 million in Q4 2013 compared with adjusted operating loss on the same basis of $5.1 million in Q4 2012 (See Tables Five and Six for non-GAAP measures).
Income tax provision was $1.9 million in Q4 2013 compared with income tax benefit of $0.1 million in Q4 2012. The Company maintains a valuation allowance related to its U.S. deferred tax assets and, therefore, no tax provision or benefit was recorded related to its U.S. results in either period.
Discontinued operations loss for the quarter totaled $2.5 million (after-tax) and included a gain of $0.9 million on the sale of the Memorex consumer electronics business. Discontinued Operations includes both the results of the XtremeMac and Memorex consumer electronics businesses as well as a charge of approximately $1.2 million recorded in Q4 2013 to adjust the carrying value of the XtremeMac assets associated with the discontinued operations, based on proceeds expected to be received for the sale of the businesses.
Earnings per diluted share from continuing operations was $0.47 in Q4 2013 compared with a loss per diluted share of $8.13 in Q4 2012. Excluding the impact of special items, adjusted earnings per diluted share would have been $0.25 in Q4 2013 compared with a loss per diluted share of $0.16 in Q4 2012 (See Tables Five and Six for non-GAAP measures).
Cash and cash equivalents balance was $132.6 million as of December 31, 2013, up $24 million during the quarter, driven by improvements in working capital and the sale of land at a previously closed facility.
Year-To-Date Summary
For the full year ended December 31, 2013, Imation reported net revenue of $860.8 million, down 14.5 percent compared with 2012, an operating loss of $20.1 million, including special charges of $11.5 million, and a diluted loss per share of $0.60 from continuing operations. Excluding special charges, the operating loss for the year ended December 31, 2013 would have been $8.6 million and diluted loss per share would have been $0.37 from continuing operations. For the year ended December 31, 2012, Imation reported net revenue of $1,006.7 million, an operating loss of $318.4 million, and a diluted loss per share of $8.67 from continuing operations. Excluding special charges, the operating loss for the year ended December 31, 2012 would have been $19.9 million and diluted loss per share would have been $0.70 from continuing operations (See Tables Five and Six for non-GAAP measures).
Operating results for the year ended December 31, 2013 include the reversal of accruals of $23.1 million for copyright levies as a result of favorable court rulings in both Italy and France.
Webcast and Replay Information
A teleconference is scheduled for 9:00 AM Central Time today, February 7, 2014, and will be available on the Internet on a listen-only basis at www.ir.Imation.com or www.streetevents.com. The Company's quarterly financial results will be discussed.
A taped replay of the teleconference will be available beginning at 12:30 PM Central Time on February 7, 2014, until 11:00 PM Central Time on February 14, 2014, by dialing 855-859-2056 or 404-537-3406 (conference ID 26513112). All remarks made during the teleconference will be current at the time of the teleconference and the replay will not be updated to reflect any subsequent developments.
Description of Tables
Table One - Consolidated Statements of Operations
Table Two - Consolidated Balance Sheets
Table Three - Supplemental Segment and Product Information
Table Four - Additional Information
Table Five - Non-GAAP Financial Measures
Table Six - Non-GAAP Financial Measures
Non-GAAP Financial Measures
The non-GAAP financial measurements (adjusted gross margin, adjusted operating income (loss), adjusted earnings (loss) per diluted share and EBITDA) are provided as a supplement and should not be construed an alternative to any GAAP measure of performance or liquidity (see Tables Five and Six). Management believes this will assist investors in making an evaluation of Imation's performance and to assist in understanding the impact of certain items on Imation’s actual results of operations when compared to prior periods. Management understands that there are material limitations on the use of non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.
Results From Discontinued Operations Not Yet Finalized
The financial statements released today reflect the estimated fourth quarter 2013 results associated with the Company’s discontinued operations. The results from discontinued operations are therefore preliminary and subject to change. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.
About Imation Corp.
Imation (NYSE: IMN) is a global data storage and data security company. Our products and solutions help organizations and individuals store, manage and protect their digital content. Imation’s storage and security portfolio includes Nexsan high-density, archive and solid-state optimized unified hybrid storage solutions; IronKey mobile security solutions that address the needs of professionals for secure data transport and mobile workspaces; and consumer storage solutions, audio products and accessories sold under the Imation, Memorex and TDK Life on Record brands. Imation reaches customers in more than 100 countries through a powerful global distribution network. For more information, visit www.imation.com.
Risk and Uncertainties
Certain information contained in this press release which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include various factors set forth from time to time in our filings with the Securities and Exchange Commission including the following: Our ability to successfully implement our strategy including our global restructuring plan; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; the ability to quickly develop, source, introduce and deliver differentiated and innovative products; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; foreign currency fluctuations; the ready availability and price of energy and key raw materials or critical components including the effects of natural disasters and our ability to pass along raw materials price increases to our customers; continuing uncertainty in global and regional economic conditions; our ability to identify, value, integrate and realize the expected benefits from any acquisition which has occurred or may occur in connection with our strategy; the possibility that our goodwill and intangible assets or any goodwill or intangible assets that we acquire may become impaired; the ability of our security products to withstand cyber-attacks; the seasonality and volatility of the markets in which we operate; changes in European law or practice related to the imposition or collectability of optical levies; significant changes in discount rates and other assumptions used in the valuation of our pension plans; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the outcome of any pending or future litigation and patent disputes; ability to access financing to achieve strategic objectives and growth due to changes in the capital and credit markets; limitations in our operations that could arise from compliance with the debt covenants in our credit facilities; our ability to retain key employees; increased compliance with changing laws and regulations potentially affecting our operating results; failure to adequately protect our information systems from cyber-attacks; and our ability to meet our revenue growth, gross margin and earnings targets.
Table One
IMATION CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except for per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
2013 2012 2013 2012
Net revenue $ 232.8 $ 266.8 $ 860.8 $ 1,006.7
Cost of goods sold 177.5 223.8 672.1 817.4
Gross profit 55.3 43.0 188.7 189.3
Operating expense:
Selling, general and administrative 39.5 45.7 181.6 191.1
Research and development 4.1 4.7 18.4 20.4
Goodwill impairment - 251.8 - 251.8
Intangible impairment - 23.3 - 23.3
Litigation settlement (2.5 ) - (2.5 ) -
Restructuring and other (6.9 ) 19.1 11.3 21.1
Total 34.2 344.6 208.8 507.7
Operating income (loss) from continuing operations 21.1 (301.6 ) (20.1 ) (318.4 )
Other expense (income):
Interest income (0.1 ) (0.1 ) (0.2 ) (0.5 )
Interest expense 0.5 0.5 2.5 2.9
Other, net (0.4 ) 0.4 0.6 2.6
Total - 0.8 2.9 5.0
Income (loss) from continuing operations before income taxes 21.1 (302.4 ) (23.0 ) (323.4 )
Income tax provision (benefit) 1.9 (0.1 ) 1.4 1.4
Income (loss) from continuing operations 19.2 (302.3 ) (24.4 ) (324.8 )
Discontinued operations:
Gain on sale of discontinued businesses, net of income taxes 0.9 - 0.9 -
Loss from discontinued businesses, net of income taxes (3.4 ) (7.9 ) (20.9 ) (15.9 )
Loss from discontinued operations (2.5 ) (7.9 ) (20.0 ) (15.9 )
Net income (loss) $ 16.7 $ (310.2 ) $ (44.4 ) $ (340.7 )
Earnings (loss) per common share - basic:
Continuing operations $ 0.47 $ (8.13 ) $ (0.60 ) $ (8.67 )
Discontinued operations (0.06 ) (0.21 ) (0.49 ) (0.42 )
Net income (loss) 0.41 (8.34 ) (1.10 ) (9.09 )
Earnings (loss) per common share - diluted:
Continuing operations $ 0.47 $ (8.13 ) $ (0.60 ) $ (8.67 )
Discontinued operations (0.06 ) (0.21 ) (0.49 ) (0.42 )
Net income (loss) 0.41 (8.34 ) (1.10 ) (9.09 )
Weighted average shares outstanding
Basic 40.6 37.2 40.5 37.5
Diluted 41.0 37.2 40.5 37.5
The financial statements released today reflect the estimated fourth quarter 2013 results associated with the Company’s discontinued operations. The results from discontinued operations are therefore preliminary and subject to change. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.
Table Two
IMATION CORP.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
December 31, December 31,
2013 2012
ASSETS
Current assets
Cash and cash equivalents $ 132.6 $ 108.7
Accounts receivable, net 163.3 220.8
Inventories 84.3 166.0
Other current assets 48.8 61.6
Total current assets 429.0 557.1
Property, plant and equipment, net 51.6 58.9
Intangible assets, net 68.6 81.9
Goodwill 72.1 73.5
Other assets 20.5 22.1
Total assets $ 641.8 $ 793.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 94.7 $ 162.7
Short-term debt 20.0 20.0
Other current liabilities 116.4 158.4
Total current liabilities 231.1 341.1
Other liabilities 37.5 52.0
Total liabilities 268.6 393.1
Commitments and contingencies
Shareholders' equity 373.2 400.4
Total liabilities and shareholders' equity $ 641.8 $ 793.5
The financial statements released today reflect the estimated fourth quarter 2013 results associated with the Company’s discontinued operations. The results from discontinued operations are therefore preliminary and subject to change. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.
Table Three
IMATION CORP.
SUPPLEMENTAL SEGMENT AND PRODUCT INFORMATION
(Dollars in millions)
(Unaudited)
Three months ended
December 31,
Three months ended
December 31,
2013 2012
% Change
Revenue % Total Revenue % Total
Consumer Storage and Accessories
Consumer storage media $ 116.9 50.2 % $ 157.0 58.8 % -25.5 %
Audio and accessories 14.4 6.2 % 13.5 5.1 % 6.7 %
Total Consumer Storage and Accessories 131.3 56.4 % 170.5 63.9 % -23.0 %
Tiered Storage and Security Solutions
Commercial storage media 68.0 29.2 % 77.4 29.0 % -12.1 %
Storage and security solutions 33.5 14.4 % 18.9 7.1 % 77.2 %
Total Tiered Storage and Security Solutions 101.5 43.6 % 96.3 36.1 % 5.4 %
Total $ 232.8 100.0 % $ 266.8 100.0 %
Operating
Income (Loss)
OI %
Operating
Income (Loss)
OI %
Consumer Storage and Accessories $ 22.3 17.0 % $ 16.0 9.4 % 39.4 %
Tiered Storage and Security Solutions (2.0 ) -2.0 % (7.6 ) -7.9 % -73.7 %
Corp/Unallocated (1) 0.8 NM (310.0 ) NM -100.3 %
Total operating income (loss) from continuing operations $ 21.1 9.1 % $ (301.6 ) -113.0 %
Gross Margin Gross Margin
Consumer Storage and Accessories 28.0 % 18.9 %
Tiered Storage and Security Solutions 18.2 13.5
23.7 17.0
Inventory write-offs related to restructuring programs 0.1 (0.9 )
Total 23.8 % 16.1 %
Twelve months ended
December 31,
Twelve months ended
December 31,
2013 2012 % Change
Revenue % Total Revenue % Total
Consumer Storage and Accessories
Consumer storage media $ 435.7 50.6 % $ 594.3 59.0 % -26.7 %
Audio and accessories 42.6 4.9 % 41.0 4.1 % 3.9 %
Total Consumer Storage and Accessories 478.3 55.5 % 635.3 63.1 % -24.7 %
Tiered Storage and Security Solutions
Commercial storage media 251.0 29.2 % 311.6 31.0 % -19.4 %
Storage and security solutions 131.5 15.3 % 59.8 5.9 % 119.9 %
Total Tiered Storage and Security Solutions 382.5 44.5 % 371.4 36.9 % 3.0 %
Total $ 860.8 100.0 % $ 1,006.7 100.0 %
Operating
Income (Loss)
OI %
Operating
Income (Loss)
OI %
Consumer Storage and Accessories $ 52.3 10.9 % $ 61.5 9.7 % -15.0 %
Tiered Storage and Security Solutions (16.1 ) -4.2 % (26.7 ) -7.2 % -39.7 %
Corp/Unallocated (1) (56.3 ) NM (353.2 ) NM -84.1 %
Total operating loss from continuing operations $ (20.1 ) -2.3 % $ (318.4 ) -31.6 %
Gross Margin Gross Margin
Consumer Storage and Accessories 23.8 % 19.8 %
Tiered Storage and Security Solutions 20.3 17.7
22.2 19.0
Inventory write-offs related to restructuring programs (0.3 ) (0.2 )
Total 21.9 % 18.8 %
NM - Not Meaningful
(1) Corporate and unallocated amounts include depreciation and amortization expense, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments. We believe the presentation of these items in Corporate and unallocated avoids distorting the operating income for our segments.
Table Four
IMATION CORP.
ADDITIONAL INFORMATION
(Dollars in millions)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
Cash and Cash Flow Information 2013 2012 2013 2012
Cash and cash equivalents - end of period $ 132.6 $ 108.7 $ 132.6 $ 108.7
Capital Spending $ 1.8 $ 1.8 $ 7.0 $ 10.2
Depreciation $ 2.6 $ 2.2 $ 10.3 $ 8.3
Amortization $ 2.8 $ 5.8 $ 13.4 $ 27.5
Asset Utilization Information *
December 31 December 31
2013 2012
Days Sales Outstanding (DSO) 56 59
Days of Inventory Supply 61 89
Debt to Total Capital 5.1 % 4.8 %
Other Information
Approximate employee count as of December 31, 2013: 940
Approximate employee count as of December 31, 2012: 1,230
Book value per share as of December 31, 2013: $ 9.19
Shares used to calculate book value per share (millions): 40.6
Imation did not repurchase shares of its stock in the fourth quarter of 2013.
*These operational measures, which we regularly use, are provided to assist in the investor's further understanding of our operations.
Days Sales Outstanding is calculated using the count-back method, which calculates the number of days of most recent revenue that are reflected in the net accounts receivable balance.
Days of Inventory Supply is calculated using the current period inventory balance divided by an estimate of the inventoriable portion of cost of goods sold expressed in days. December 31, 2012 amount excludes Nexsan Corporation.
Debt to Total Capital is calculated by dividing total debt (long term plus short term) by total shareholders' equity and total debt.
Table Five
IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)
Three Months Ended Three Months Ended
December 31, 2013 December 31, 2012
GAAP Adj * Non-GAAP GAAP Adj * Non-GAAP
Net revenue $ 232.8 $ - $ 232.8 $ 266.8 $ - $ 266.8
Cost of goods sold 177.5 0.1 177.6 223.8 (2.3 ) 221.5
Adjusted gross profit $ 55.3 $ (0.1 ) $ 55.2 $ 43.0 $ 2.3 $ 45.3
Adjusted gross margin 23.8 % 23.7 % 16.1 % 17.0 %
Adjusted operating income (loss) from continuing operations $ 21.1 $ (9.5 ) $ 11.6 $ (301.6 ) $ 296.5 $ (5.1 )
Adjusted income tax provision (benefit) $ 1.9 $ (0.3 ) $ 1.6 $ (0.1 ) $ 0.1 $ -
Adjusted income (loss) from continuing operations $ 19.2 $ (9.2 ) $ 10.0 $ (302.3 ) $ 296.4 $ (5.9 )
Adjusted earnings (loss) per common share from continuing operations - Diluted
$ 0.47 $ 0.25 $ (8.13 ) $ (0.16 )
Adjusted weighted average shares outstanding - Diluted 41.0 41.0 37.2 37.2
Twelve Months Ended Twelve Months Ended
December 31, 2013 December 31, 2012
GAAP Adj * Non-GAAP GAAP Adj * Non-GAAP
Net revenue $ 860.8 $ - $ 860.8 $ 1,006.7 $ - $ 1,006.7
Cost of goods sold 672.1 (2.7 ) 669.4 817.4 (2.3 ) 815.1
Adjusted gross profit $ 188.7 $ 2.7 $ 191.4 $ 189.3 $ 2.3 $ 191.6
Adjusted gross margin 21.9 % 22.2 % 18.8 % 19.0 %
Adjusted operating loss from continuing operations $ (20.1 ) $ 11.5 $ (8.6 ) $ (318.4 ) $ 298.5 $ (19.9 )
Adjusted income tax provision $ 1.4 $ 2.1 $ 3.5 $ 1.4 $ 0.1 $ 1.5
Adjusted loss from continuing operations $ (24.4 ) $ 9.4 $ (15.0 ) $ (324.8 ) $ 298.4 $ (26.4 )
Adjusted loss per common share from continuing operations - Diluted
$ (0.60 ) $ (0.37 ) $ (8.67 ) $ (0.70 )
Adjusted weighted average shares outstanding - Diluted 40.5 40.5 37.5 37.5
*See Table Six
Table Six
IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)
Operating income (loss) / Adjusted operating income (loss)
Three Months Ended Twelve Months Ended
December 31 December 31
2013 2012 2013 2012
Operating income (loss): $ 21.1 $ (301.6 ) $ (20.1 ) $ (318.4 )
Restructuring and other
Restructuring 1.6 15.2 5.2 19.7
Other 1.3 3.9 5.3 2.1
Gain on sale of fixed assets held for sale (9.8 ) - (9.8 ) (0.7 )
Litigation settlement (2.5 ) - (2.5 ) -
Loss on settlement of UK pension plan - - 10.6 -
Goodwill impairment - 23.3 - 23.3
Intangible impairment - 251.8 - 251.8
Inventory write-downs related to restructuring programs included in cost of goods sold (0.1 ) 2.3 2.7 2.3
Total adjustments (9.5 ) 296.5 11.5 298.5
Adjusted operating income (loss) - Non-GAAP $ 11.6 $ (5.1 ) $ (8.6 ) $ (19.9 )
Effect on diluted EPS:
Income (loss) from operations $ 0.47 $ (8.13 ) $ (0.60 ) $ (8.67 )
Restructuring and other
Restructuring 0.04 0.41 0.13 0.53
Other 0.03 0.10 0.13 0.06
Gain on sale of fixed assets held for sale (0.24 ) - (0.24 ) (0.02 )
Litigation settlement (0.05 ) - (0.05 ) -
Loss on settlement of UK pension plan - - 0.20 -
Goodwill impairment - 0.63 - 0.62
Intangible impairment - 6.77 - 6.72
Inventory write-downs related to restructuring programs included in cost of goods sold - 0.06 0.06 0.06
Adjusted diluted EPS - Non-GAAP $ 0.25 $ (0.16 ) $ (0.37 ) $ (0.70 )
EBITDA:
Operating income (loss) from continuing operations 21.1 $ (301.6 ) $ (20.1 ) $ (318.4 )
Depreciation 2.6 2.2 10.3 8.3
Amortization 2.8 5.8 13.4 27.5
EBITDA $ 26.5 $ (293.6 ) $ 3.6 $ (282.6 )
Restructuring and other (9.4 ) 294.2 8.8 296.2
Inventory write-downs related to restructuring programs included in cost of goods sold (0.1 ) 2.3 2.7 2.3
Total adjustments (9.5 ) 296.5 11.5 298.5
Adjusted EBITDA $ 17.0 $ 2.9 $ 15.1 $ 15.9
EBITDA is defined as operating (loss) income less depreciation and amortization. Adjusted EBITDA is defined as EBITDA before restructuring and other, and inventory write-downs related to restructuring programs included in cost of goods sold.
The Non-GAAP financial measurements (adjusted operating income (loss), adjusted income (loss), adjusted diluted EPS, EBITDA and adjusted EBITDA) are provided to assist in understanding the impact of certain items on Imation's actual results of operations when compared with prior periods. Management believes this will assist investors in making an evaluation of Imation's performance against prior periods on a comparable basis by adjusting for these items. Management understands that there are material limitations on the use of Non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These Non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.
http://ir.imation.com/phoenix.zhtml?c=73967&p=irol-newsArticle&ID=1898037&highlight=
MBT Financial Corp. Announces Record Date for Its Rights Offering
Company Release - 03/05/2014 16:43
MONROE, Mich., March 5, 2014 (GLOBE NEWSWIRE) -- As previously announced MBT Financial Corp. (the "Company") (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, intends to conduct a rights offering to existing shareholders for the purchase of up to 1,411,765 shares of its common stock at $4.25 per share in a $6 million rights offering. The Company announced it has set March 7, 2014 as the record date for its previously disclosed proposed rights offering of common stock. All record shareholders of the Company's common stock will receive, at no charge, one subscription right for each share of common stock held as of 5:00 pm, Eastern Time, on the record date. Each subscription right will entitle the holder of the right to purchase .0664 share for each share of common stock held. Upon commencement of the planned rights offering, the Company will distribute non-transferable subscription rights to purchase shares of its common stock to each eligible holder of its common stock as of the close of business on March 7, 2014.
The Company has filed a registration statement, including a prospectus, with the SEC for the offering to which this communication relates which has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Company, or the placement agent Donnelly Penman & Partners, will arrange to send you the prospectus if you request it by calling toll-free at 1 (800) 321-0032, or by emailing Greg Cunningham at gcunningham@donnellypenman.com.
About the Company
MBT Financial Corp. (Nasdaq:MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust ("MBT"). Founded in 1858, MBT is one of the largest independently owned community banks in Southeast Michigan. With over $1 billion in assets, MBT is a full-service bank, offering a complete range of business and personal accounts, credit and mortgage options, investment and retirement services and award-winning financial literacy outreach. MBT's Wealth Management Group ("WMG") is one of the largest and most respected in Michigan. The WMG has been listed as a Top Money Management firm for assets under management by Crain's Detroit Business. With 24 offices, 46 ATMs, convenient mobile and online banking, a robust online and social media presence and a comprehensive array of products and services, MBT prides itself in offering an incomparable banking experience. Visit MBT's website at www.mbandt.com.
http://www.snl.com/irweblinkx/file.aspx?IID=4056273&FID=23109851
“In the fourth quarter, we saw encouraging top-line results at the Utility from continued strong industrial sales
growth,” said Leo Denault, Entergy’s chairman and chief executive officer. “Growth was driven by increased
production from existing customers tied to favorable global economic conditions. We expect to see continued load
growth in the future as facility expansions come on line. During the quarter, EWC saw a surge in spot and 2014
forward power prices for the Northeast. The hedging strategy we’ve employed over the past several years
positioned us to participate in this price run-up, which will largely be reflected in 2014 results.
“On a full year basis, we delivered solid 2013 operational results that reflected productive investments for Utility
customers and a trend toward tightening supply/demand fundamentals in the Northeast as well as upward
movement of energy spot prices. Moreover, we executed on several strategic initiatives, such as joining MISO,
reducing our cost structure and improving productivity across our businesses, and making portfolio changes at
EWC, consistent with our strategy.”
http://files.shareholder.com/downloads/ETR/3077472339x0x724862/5342ae46-a3f7-4200-a493-3cad80f9990b/Entergy_Reports_Fourth_Quarter_and_Full_Year_Earnings.pdf
Non-GAAP diluted earnings per share was $0.25 for the fourth quarter compared to $0.20 in the previous quarter and $0.32 in the fourth quarter of 2012.1 Non-GAAP net income attributable to Calamos Asset Management, Inc. (CAM) was $5.0 million for the quarter compared to $4.1 million last quarter and $6.6 million in the fourth quarter of 2012.
GAAP diluted earnings per share was $0.54 for the fourth quarter of 20132 compared to $0.13 in the previous quarter and $0.22 in the fourth quarter of 2012. Net income attributable to CAM was $10.9 million for the quarter compared to $2.7 million last quarter and $4.6 million in the fourth quarter of 2012.
Our total revenues for the current quarter were $66.5 million compared to $65.0 million in the previous quarter and $76.9 million in the fourth quarter a year ago. Operating margin was 33.0% for the fourth quarter, 23.7% in the previous quarter, and 36.5% in the fourth quarter of 2012.
Assets Under Management3 were $26.5 billion at December 31, 2013 compared to $26.6 billion at the end of last quarter, and $29.7 billion at the end of the prior year. Net outflows were $1.4 billion for the quarter, compared to $894 million of net outflows in the previous quarter, and $3.0 billion of net outflows in the fourth quarter of 2012.
The Board of Directors of CAM declared a regular quarterly dividend of 12.5 cents per share payable on February 24, 2014 to shareholders of record on February 7, 2014.
Calamos Investments LLC (Calamos Investments) repurchased 1.2 million shares of CAM's common stock since the share repurchase program was announced in the first quarter of 2013, for a total cost of $13.2 million.
The table below highlights certain GAAP and non-GAAP financial measures:
http://phx.corporate-ir.net/phoenix.zhtml?c=182276&p=irol-newsArticle&ID=1894393&highlight=
- TetraLogic Pharmaceuticals Corporation (Nasdaq:TLOG) announced today that it has executed a definitive agreement to acquire by merger 100% of Shape Pharmaceuticals, a privately-held biotechnology company developing suberohydroxamic acid phenyl ester (SHAPE), a novel, tissue-targeted HDAC inhibitor in a topical gel formulation to treat stage IA-IIA Cutaneous T-Cell Lymphoma (CTCL), adding a second clinical-stage oncology compound to the TetraLogic portfolio.
SHAPE is designed to be rapidly degraded in plasma, thus avoiding systemic exposure. In a randomized Phase 1 trial, promising early activity with SHAPE was observed, with responses seen after only 28 days of administration. SHAPE was generally well tolerated in this study with no dose limiting toxicities observed.
The Company believes that the gel formulation provides concentrated local effect and the molecule itself is designed to avoid systemic absorption and related toxicities. The Company expects to commence a Phase 2 trial of SHAPE for early-stage CTCL in the fourth quarter of 2014.
SHAPE's composition of matter patent extends until at least 2028; in addition, SHAPE has been granted US orphan drug designation for CTCL. TetraLogic has acquired worldwide development and commercialization rights to SHAPE for all indications.
Under the terms of the agreement, TetraLogic will acquire Shape for an upfront cash payment of $13 million. TetraLogic is also responsible for future development and commercialization milestones, as well as tiered royalties on product sales.
"We are pleased to have augmented our oncology pipeline with this acquisition," said J. Kevin Buchi, TetraLogic's President and CEO. "We are encouraged with SHAPE's clinical data to date, specifically the response rate and early onset of action, and we expect to advance it into Phase 2 trials later this year with a goal of evaluating the 6 month efficacy of SHAPE in Stage IA-IIA CTCL patients."
SHAPE Clinical Development Program
In a Phase 1 randomized, double-blind, placebo-controlled, dose-escalating clinical trial, 15 patients were administered SHAPE, BID for 28 days, while 3 patients were administered placebo. 4 of the 15 patients demonstrated PRs (clinical improvement of lesions) by Composite Assessment of Index Lesion Severity or CAILS score, while the patients on placebo demonstrated no significant improvements. PK data indicated minimal systemic exposure, and PD data demonstrated local dermal acetylation. No significant safety events were observed.
About Cutaneous T-Cell Lymphoma
Cutaneous T-Cell Lymphoma (CTCL) is a rare, life-altering, and life-threatening form of Non-Hodgkin's lymphoma (NHL) which initially presents in the skin. CTCL is a heterogeneous group of malignant lymphomas that are more common in men, occur most often in people older than 55, and affect twice as many African-Americans as Caucasians. CTCL patients typically present with skin symptoms and lesions, including follicular papules, erythematous patches, elevated plaques, alopecia, pendulous slack skin, pustular lesions and subcutaneous nodules. Lesions of this lymphoma may remain as patches or plaques confined to the skin for many years prior to the development of cutaneous tumors or visceral disease. US CTCL prevalence is approximately 30,000 patients. Stage IA, IB, and IIA, the stages of the disease restricted to the skin, comprise 75% of the CTCL patient population.
http://globenewswire.com/news-release/2014/04/07/625177/10075362/en/TetraLogic-Agrees-to-Acquire-Shape-Pharmaceuticals-Inc.html
any dedicated to providing solutions for the global challenge of drug resistant organisms and hospital acquired infections, announced today that it has commenced a $45,000,000 rights offering to fund its product commercialization efforts.
Under the terms of the rights offering, the company is distributing, at no charge to the holders of its common stock as of 5:00 p.m., New York City time, on March 14, 2014, which was established as the record date for the rights offering, 0.063921 non-transferable subscription rights for each share of common stock owned on the record date, as more fully described in the prospectus relating to the rights offering. Each whole subscription right will allow the holder to subscribe to purchase one share of common stock at a subscription price of $16.80 per share. In the aggregate, the company intends to issue 2,678,571 shares of common stock in connection with the rights offering.
The subscription rights may be exercised until 5:00 p.m. New York City time, on April 28, 2014, as more fully described in the prospectus. The rights offering period may not be extended. Any fractional rights remaining after aggregating all of the subscription rights issued to a stockholder will be rounded down to the nearest whole number, and no stockholder will receive any shares with respect to fractional rights that are rounded down.
The company has received a standby commitment from the Jack W. Schuler Living Trust and the Schuler Family Foundation. The standby purchaser has agreed to purchase any and all shares of common stock that are not subscribed for by stockholders in connection with the rights offering. Upon completion of the rights offering, the company will receive gross proceeds of approximately $45,000,000 before expenses. The purpose of the rights offering is to raise equity capital in a cost-effective manner that gives all of the company's existing stockholders the opportunity to participate on a pro rata basis. The net proceeds of the offering will be used for working capital and specifically to fund the company's business plan and product commercialization efforts.
A Registration Statement relating to these securities has been filed with the SEC and was declared effective on April 7, 2014. A copy of the prospectus forming a part of the Registration Statement may be obtained free of charge at the website maintained by the SEC at www.sec.gov or by contacting Steve Reichling at (520) 365-3100. For questions about the rights offering, including questions about subscription procedures and requests for additional copies of the prospectus, contact Broadridge Corporate Issuer Solutions, Inc. at (855) 793-5068. Broadridge is acting as the Subscription and Information Agent for the rights offering on behalf of the company.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
- See more at: http://www.noodls.com/view/A68E76F6CBC5AB286AF6AA42E60360ACE2B3F55D?8327xxx1396899372#sthash.leyT5F9S.dpuf
"Sanofi to resubmit Lemtrada application for FDA review
PARIS, April 7 Mon Apr 7, 2014 1:16am EDT"
http://www.reuters.com/article/2014/04/07/sanofi-lemtrada-idUSWEB00L8V20140407
Sanofi to resubmit Lemtrada application for FDA review
(Reuters) - Sanofi said it plans to resubmit its application for its Lemtrada drug for the treatment of relapsing forms of multiple sclerosis following "constructive discussions" with the U.S. Food and Drug Administration.
The resubmission is expected in the second quarter and will provide information to address issues previously raised by the FDA in December, Sanofi said in a statement on Monday.
Sanofi's Genzyme unit in the United States had previously announced its intention to appeal the FDA's response on Lemtrada.
http://www.reuters.com/article/2014/04/07/sanofi-lemtrada-idUSWEB00L8V20140407
http://world.einnews.com/article/198673719/PXVbV6g7dRbLOR6C
Happy weekend..
A larger than usual turnout for Big River Resources annual meeting on March 4th, just might be the results of the most profitable year yet for the 10 year old ethanol producer.
The 10th annual meetings of both the Big River Cooperative and the Big River LLC were held together at the Pzazz Convention Center with many happy shareholders in attendance who had just received a hearty dividend check a week earlier, for their faith in the farmer-ran cooperative.
Popular guest speaker Mike Adams of AgriTalk sang praises of the successful U.S. grown ethanol and of its greatness for America, the environment, and the economy.
Forty-eight percent of the net profits were returned to the 638 cooperative members. $3,240,000 in checks were sent out to stockholders in dividends.
CEO Ray Defenbaugh, introduced board members and employees. Shareholders gave a round of applause thanking the employees and the board for their work in making BRR a billion+ dollar industry.
Jim Hall Comptroller and Jim Leiting General Manager, talked about the peaks and the valleys, yet an amazing year of growth.
CEO Ray Defenbaugh talked of their ten years of growth which has made them today, the 6th largest ethanol producer in the world.
He told of the need for the blenders' rule to be continued, and strongly encouraged all to talk to legislators, and to especially support the candidates who will work to make EPA and OCEA administrators, elective offices rather than appointed ones.
ERII -This is from March 5th -
Energy Recovery Reports Record Financial Results for Revenue and Net Income in the Fourth Quarter of 2013
"Reflecting the strongest profit quarter in the Company's history, net income was $6.7 million, or $0.13 per share, compared to a net loss of $(2.2) million, or $(0.04) per share, in the same period of the prior year"
http://finance.yahoo.com/news/energy-recovery-reports-record-financial-210631966.html
This is from March 25th
Energy Recovery Authorizes Stock Repurchase Program for up to Six Million Dollars through the End of the Year
the leader in capturing reusable energy from industrial fluid flows and pressure cycles, today announced that its board of directors has authorized a stock repurchase program under which up to $6,000,000 of its outstanding common stock may be acquired in the open market through December 31, 2014 at the discretion of management.
http://ir.energyrecovery.com/phoenix.zhtml?c=221013&p=irol-newsArticle&ID=1912372&highlight=
This is from April 3rd
Energy Recovery to Release Earnings and Host Conference Call
http://ir.energyrecovery.com/phoenix.zhtml?c=221013&p=irol-newsArticle&ID=1915673&highlight=
And this is what ANALYSTS are expecting... (-.03/share for the quarter by 6 analysts)
http://finance.yahoo.com/q/ae?s=ERII+Analyst+Estimates
ERII -This is from March 5th -
Energy Recovery Reports Record Financial Results for Revenue and Net Income in the Fourth Quarter of 2013
"Reflecting the strongest profit quarter in the Company's history, net income was $6.7 million, or $0.13 per share, compared to a net loss of $(2.2) million, or $(0.04) per share, in the same period of the prior year"
http://finance.yahoo.com/news/energy-recovery-reports-record-financial-210631966.html
This is from March 25th
Energy Recovery Authorizes Stock Repurchase Program for up to Six Million Dollars through the End of the Year
the leader in capturing reusable energy from industrial fluid flows and pressure cycles, today announced that its board of directors has authorized a stock repurchase program under which up to $6,000,000 of its outstanding common stock may be acquired in the open market through December 31, 2014 at the discretion of management.
http://ir.energyrecovery.com/phoenix.zhtml?c=221013&p=irol-newsArticle&ID=1912372&highlight=
This is from April 3rd
Energy Recovery to Release Earnings and Host Conference Call
http://ir.energyrecovery.com/phoenix.zhtml?c=221013&p=irol-newsArticle&ID=1915673&highlight=
And this is what ANALYSTS (?????) are expecting...
http://finance.yahoo.com/q/ae?s=ERII+Analyst+Estimates
DFC Global To Be Taken Private In About $1.3 Bln Deal; Cuts FY14 View ($9.50 in cash)
http://www.rttnews.com/2296498/dfc-global-to-be-taken-private-in-about-1-3-bln-deal-cuts-fy14-view.aspx?type=bn
And at least, 1 of them is "female"
It does not matter whether you win or lose..but what matters is "keep trying"..That's what I've learned from my ihub "gurus"
Love this quotation --- I'm right, and you're smart, and sooner or later you'll see I'm right. Charlie Munger
I know of not more than 10 people on ihub..who fit Mr Munger's quotation..I can name them all publicly and I won't ..most of them are old folks..and some of them are younger than me..and I'm 35
Since we're all betting on the future and how it may look..I hope you and I have the right cards on hand..lol.after all...as Keynes says..in the long term..we all die..but before that..let's be right than be smart.
Happy to have bought 1000 shares.Will see. Nothing wrong in losing while you keep trying..
http://www.rttnews.com/2293390/yongye-gets-revised-going-private-proposal-at-7-00-per-share.aspx?type=corp
Yongye International Inc. (YONG: Quote) announced that the special committee of its board of directors has received a revised proposal from a consortium led by its Chairman and Chief Executive Officer, Zishen Wu to take the company private for $7.00 per share.
In the Revised Proposal, the Buyer Consortium proposed to increase the merger consideration payable to holders of shares of common stock, par value $0.001 per share, of the company under the Merger Agreement, from $6.69 per Share to $7.00 per Share.
The company's special committee of its board of directors received the revised proposal dated March 26, 2014 from a consortium that comprises the company's Chairman and Chief Executive Officer, Zishen Wu, MSPEA Agriculture Holding Limited, Lead Rich International Limited and Full Alliance International Limited.
The company said its Special Committee is considering the Revised Proposal with its legal and financial advisors. As a reminder, no decisions have been made by the Special Committee with respect to the Company's response to the Revised Proposal.
On 5th March, Yongye International said that it did not receive approval from at least a majority of the issued and outstanding shares of common stock of the Company for going private proposal dated on September 23, 2013 from Full Alliance International Limited consortium.Therefore, the Merger Agreement was not approved by the company's stockholders.
In September 2013, Yongye International announced that it entered into an Agreement and Plan of Merger with Full Alliance International Limited or Holdco, a British Virgin Islands company, Yongye International Limited or Parent, a Cayman Islands exempted company with limited liability, and Yongye International Merger Sub Limited, a Nevada corporation and a wholly-owned, direct subsidiary of Parent.
As the Merger Agreement, upon completion of the Merger, each of the Company's shares of common stock issued and outstanding immediately prior to the effective time of the Merger would be converted into the right to receive $6.69 in cash without interest except for Shares owned by Holdco, Parent and Merger Sub, including shares to be contributed to Parent by Holdco, Zishen Wu. The offer represented a premium of 39.7% over the closing price of the Company's common stock of $4.79 per share on October 12, 2012, the last trading day prior to the Company's announcement of its receipt of a "going-private" proposal.
Coach has historically increased its dividend in the May-June period and free cash flow supports a strong increase this year.
If cash is king, then Coach investors may soon love their monarchy
Shares trade for just 14.4 times trailing earnings, well below the industry average of 21.9 times and even below the stock's five-year average of 17.8 times earnings. Valuation multiples have many wondering if the shares could be a strong value play on a rebound though most are still hesitant of falling into a value-trap.
While I won't pretend to call a quick turnaround in the shares, there is one very strong reason for a long position.
Despite weakness in the shares and sales lost to competitors, free cash flow continues to increase even on higher capital expenditures. Free cash flow increased by 13% last year to $1.17 billion, even as the company increased capital spending to $241 million. Coach has increased free cash flow by a compound annual rate of more than 9% over the last five years.
The company has increased the dividend per share amount by a compound annual rate of 35% since it began making payments in 2009. Coach has purchased $2.2 billion of its own shares over the last three fiscal years and still has nearly $800 million of cash on the balance sheet.
The company has increased its dividend in the second quarter of every year since 2010. On annual free cash flow growth and previous increases, I am expecting an increase of at least 25% to be announced in May or June for an annual dividend of $1.69 per share and a 3.4% yield. On $1.69 per share for the remaining two payments this year, the company would be paying out approximately 37% of net income. Beyond the dividend increase, it's possible the company could also announce a more aggressive buyback program.
Coach has not been kind to shareholders over the last few years but that may soon change with more cash returned through dividends and a repurchase program. While it may still take a couple of years to see strong price appreciation on international growth, the attractive dividend yield and possible increase to the buyback program should provide decent returns until a turnaround is achieved.
http://seekingalpha.com/article/2111903-a-dividend-increase-could-send-this-laggards-shares-higher
"We rate QUALCOMM INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
QCOM's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues rose by 10.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
QCOM's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.50, which clearly demonstrates the ability to cover short-term cash needs.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, QUALCOMM INC's return on equity exceeds that of both the industry average and the S&P 500.
Net operating cash flow has increased to $2,781.00 million or 40.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 20.08%.
Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
http://www.thestreet.com/story/12556919/1/will-this-target-price-increase-help-qualcomm-qcom-stock-today.html
Worthington Industries is reporting an increase in profit and sales for the fiscal third quarter that ended in February, results that the company says were hurt by unusually cold weather.
The Columbus-based metals manufacturer had quarterly profit of $40.6 million, up from $37.1 million in the prior-year quarter, and sales of $773.2 million, up from $619.5 million.
“We had a strong quarter, the best third quarter earnings per share in our history, with solid earnings growth despite enduring extreme weather conditions which hampered some of our business activity,” John P. McConnell, chairman and CEO, said in a statement.
The company’s largest segment, steel processing, posted a 35 percent increase in sales, largely due to an increase in orders from the auto industry.
Cold weather contributed to a drop in sales in the company’s joint ventures that make metal framing for the construction industry.
Because of seasonal factors, Worthington often performs best in its fiscal fourth quarter, which runs from March to May. McConnell said he expects “a solid performance to finish out our fiscal year.”
http://www.dispatch.com/content/stories/business/2014/03/27/worthington-industries-third-fiscal-quarter.html
Interlink Electronics, Inc. (OTC: LINK), a global leader in human-machine interface and sensor technologies, today announced their unaudited results for the fourth quarter and audited results for the year ended December 31, 2013.
Fourth Quarter 2013 vs. 2012
Revenue increased 35.1% to $2,013,000 from $1,490,000;
Gross margin was 37.8%, compared to 43.8%;
Total operating expenses were 38.8% of revenues, compared to 65%;
Operating loss was ($21,000), compared to ($322,000);
Income from continuing operations, net of tax, was $33,000 or $0.04 per basic and diluted share, compared to a loss from continuing operations, net of tax, of ($324,000) or ($0.44) per basic and diluted share; and
Net income increased to $41,000 or $0.06 per basic and diluted share, from a net loss of ($316,000) or ($0.43) per basic and diluted share.
Year Ended December 31, 2013 vs. 2012
Revenue increased 17.7% to $7,551,000 from $6,413,000;
Gross margin was 42.3%, compared to 49.5%;
Total operating expenses were 43.1% of revenues, compared to 50.6%;
Operating loss decreased to ($64,000) from an operating loss of ($73,000);
Loss from continuing operations, net of tax, was ($22,000) or ($0.03) per basic and diluted share, compared to income from continuing operations, net of tax, of $102,000 or $0.14 per basic and diluted share(1); and
Net income decreased to $12,000 or $0.02 per basic and diluted share, from net income of $136,000 or $0.19 per basic and diluted share (1).
Interlink has no debt and its stockholders' equity at December 31, 2013 was $3,326,000. Non-GAAP stockholders' equity per share was $4.54 per share, which consists of $2.03 in Non-GAAP cash per share.
"The global Interlink Electronics organization continues to demonstrate improvements in the business fundamentals, specifically the year-over-year revenues and total operating expenses as a function of revenue. This repeated trend further validates our strategic initiatives and business plan," stated Howard D. Goldberg, Ph.D., President and COO of Interlink Electronics. Dr. Goldberg continued, "This positive result for FY2013 sets the stage for further business growth in FY2014. We also believe that this momentum will be further accelerated by the recent strategic investments that we have made in our global R&D center in Singapore and the recruitment of a seasoned VP of Global Sales to be based in the United Kingdom starting in May."
Read more at http://www.broadwayworld.com/bwwgeeks/article/Interlink-Electronics-Inc-Announces-2013-Year-End-Financial-Results-20140327#PqcpkQZ8o8Tl6PMh.99
Winnebago Industries said this morning that income increase for the second quarter of fiscal year 2014 over the same quarter last year.
The motor home manufacturer's net income increased to 9.6 million and grew by 52.6 percent compared to the same quarter in fiscal year 2013.
Operating income also increased from last year to $14 million, or a 58.2 percent increase from the second quarter of fiscal year 2013.
Company officials said in a news release that revenue and income results were driven by motor home unit growth along with gross margin improvement and incremental leverage of operating expenses. The company also said the severe winter weather conditions prevented some deliveries of units to dealers.
http://globegazette.com/winebago-industries-releases-second-quarter-report/article_3e3c17c6-333a-5b38-88fb-d655e70bafab.html
ighlights from the ratings report include:
RLJ's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
RLJ LODGING TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RLJ LODGING TRUST increased its bottom line by earning $0.87 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.87).
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 99.9% when compared to the same quarter one year prior, rising from $13.73 million to $27.45 million.
http://www.thestreet.com/story/12548903/1/today-rlj-lodging-rlj-hits-new-lifetime-high.html
Movado Q4 Adj. Profit Tops View, Ups Dividend; Sees FY15 Results Above Estimates
Luxury watchmaker Movado Group, Inc. (MOV: Quote) reported Wednesday a decline in fourth-quarter profit, hurt by higher charges. Adjusted earnings topped analysts' estimates, while top line missed their view. The company also announced higher dividend, and said it sees fiscal 2015 earnings and sales above analysts' current estimates.
In pre-market activity, Movado shares gained $2.41 or 5.73 percent, and traded at $44.44.
For the fourth quarter, net income attributable to the company declined to $7.19 million or $0.28 per share from last year's $7.92 million or $0.31 per share.
The latest quarter results included a pre-tax charge of $8.3 million or $0.20 per share, relating to the company's strategy of reducing the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. The results also included a $0.05 per share charge related to a charitable contribution.
http://www.rttnews.com/2292432/movado-q4-adj-profit-tops-view-ups-dividend-sees-fy15-results-above-estimates.aspx
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=46498
RAPAPORT... Signet Jeweler's revenue rose 3.4 percent year on year to $1.56 billion during the fourth quarter that ended on February 1. Comparable-store sales increased 4.3 percent and cost of sales rose 4.4 percent $915 million. Signet's profit improved 1.7 percent to $175 million or $2.18 per diluted share.
U.S. division sales improved 3.5 percent to $1.29 billion in the fourth quarter, while same-store sales rose 5 percent. Sales increases were driven by a variety of merchandise categories but the strongest performance came from bridal, colored diamonds, fashion jewelry, beads and watches. The average merchandise transaction value increased at Kay, primarily from greater sales of branded merchandise; however, the average transaction value declined at Jared. Signet's ecommerce sales in the U.S. surged 10.9 percent to $61.9 million.
In the U.K., sales as reported in dollars improved 1.4 percent to $272.2 million, but same-store sales jumped 5.7 percent in the fourth quarter. Sales performance was driven by bridal and fashion diamond jewelry, fashion and prestige watches, exclusive of Rolex, which is being offered in fewer stores. The average merchandise transaction value remained consistent year to year at H.Samuel, however, the average value fell slightly at Ernest Jones. Online sales in the U.K. surged 32.6 percent to $17.1 million.
Signet's fiscal year sales rose 5.7 percent year on year to $4.21 billion, cost of sales jumped 9.9 percent to $2.63 billion and net income improved 2.2 percent to $368 million or $4.56 per diluted share.
Signet's board declared an increased quarterly dividend of 18 cents per share, payable on May 28.
Mike Barnes, Signet's CEO, said, “Signet performed well during the year delivering a 4.4 percent increase in same-store sales and a 4.8 percent increase in earnings per share (EPS). I would like to thank all Signet associates for their contribution to these results. In addition, and importantly, in February we negotiated and executed an agreement to acquire the Zale Corporation, which will transform the combined companies after the transaction is closed. The Zale team has done a great job turning its business around, and we are excited about the opportunities of helping to take Zale to the next level.”
Barnes added that Signet's growth can be attributed to a coordinated omnichannel strategy that creates an outstanding customer experience, delivers compelling merchandise and maintains cost controls. ''Our priorities remain focused on delivering an outstanding experience to all our customers. We will continue to execute on our multichannel growth initiatives and expand our store base. Our increase in the quarterly dividend demonstrates our belief in the strength of the business and our commitment to increase value for our shareholders. We remain confident in achieving our fiscal 2015 goals and making significant progress toward our long-term objectives, including those related to the acquisition and successful integration of Zale Corporation,'' he said.
Signet has hired McKinsey & Company to work alongside its internal team to ensure an effective integration with Zale. Signet expects to utilize approximately $600 million of receivables securitization and $800 million of other debt financing during the acquisition process.
Paychex reported total revenue (including Interest on funds held for clients) of $636.5 million for the quarter which not only increased 7.3% from the year-ago period but also came ahead of the Zacks Consensus Estimate of $627.0 million.
Excluding Interest on funds held for clients, which was down 3.7% on a year-over-year basis, total services revenues (Payroll service and Human Resource Services) increased 7.5% from the year-ago quarter to $626.0 million. Interest on funds held for clients was down due to lower average interest rates earned and lower net realized gains, which more than offset the increase in average investment balances.
Payroll Service segment revenues increased 5.1% from the year-ago period to $413.9 million primarily driven by higher checks per payroll and revenue per check. Checks per payroll increased 1.0% from the year-ago quarter. The company witnessed modest growth in revenue per check on the back of price increases and higher adoption of Paychex’s products.
Buoyed by growth in client base in the retirement services, HR Solutions and eServices products, Paychex’s Human Resource Services segment generated revenues of $212.1 million, which increased 12.4% from the year-ago quarter.
Paychex’s total expenses increased 4.8% from the year-ago quarter to $385.8 million, primarily due to compensation-related expenses. Moreover, higher expenses related to investment in product development and supporting technology and higher sales-related costs were responsible for the rise in expenses. Nonetheless, total expenses as a percentage of total revenue decreased 147 basis points (bps) on a year-over-year basis due to higher revenue base.
Paychex reported operating income of $250.7 million, up 11.4% from the year-ago period, attributable to modest revenue growth supported by better cost management and capacity utilization. Operating margin was 39.4% versus 37.9% in the year-ago quarter.
Excluding Interest on funds held for clients, Paychex’s operating income came in at $240.2 million or 38.4% of total services revenue which increased from $214.1 million or 36.8% of total services revenue.
Net income for Paychex increased 10.8% from the year-ago quarter to $160.1 million or 44 cents per share while net margins expanded 77 bps on a year-over-year basis.
http://www.zacks.com/stock/news/127825/paychexs-q3-earnings-beat-estimates
A month ago..there were so many sellers who were ready to get out for 7 bucks. Hope that makes sense. And back then ethanol price was not this high.
McCormick Q1 Results Beat Estimates, Reaffirms FY14 View
Spices and seasonings maker McCormick & Co. Inc. (MKC: Quote) Tuesday reported a higher first-quarter profit, as sales rose 6 percent with solid increases in both its consumer and industrial businesses. The acquisition of WAPC accounted for a significant portion of sales growth in Consumer business. Both earnings per share as well as revenues topped analysts' expectations.
Looking ahead to the second quarter, the company expects only a slight increase in earnings per share, and reaffirmed its financial outlook for fiscal year 2014.
For the first quarter ended February 28, 2014, the company's net income increased to $82.5 million or $0.62 per share from $76 million or $0.57 per share in the previous year.
http://www.rttnews.com/2291518/mccormick-q1-results-beat-estimates-reaffirms-fy14-view.aspx?type=ts
Jill Granoff, Chief Executive Officer of Vince, commented, "It was another great year for the Vince brand as we achieved many important milestones. We are particularly proud of our successful IPO last fall which is a testament to our strong track record and significant future potential. We are also pleased that we continued to deliver industry-leading results and record sales in fiscal 2013 with double-digit growth across all distribution channels. In wholesale, we remained the number one or number two contemporary brand with our key department store partners. In retail, we delivered 20% comparable store sales and just completed our 17(th) consecutive quarter of comp store increases, while our ecommerce business remained our fastest growing channel. These results reinforce the strength of our compelling product assortment and loyal customer following."
Net Sales increased 20.5% for fourth quarter and 19.9% for fiscal 2013 -
- Operating Income increased 21.0% for fourth quarter and 20.6% for fiscal 2013 -
- Adjusted diluted EPS increased 15.0% to $0.23 for fourth quarter and 21.7% to $0.73 for fiscal 2013 -
- Company provides guidance for fiscal 2014 -
http://online.wsj.com/article/PR-CO-20140327-905239.html
Rail bottleneck for grain, ethanol shippers
“Ethanol facilities are designed to run every day. If you don’t have delivery of corn at a facility, and the plant is not operating that day, they don’t have the luxury of saying, ‘No problem. We’ll make a double batch tomorrow.’ Those facilities are designed to work consistently,” he said, and the principle applies to every processor of corn, soybeans and wheat.
http://www.argusleader.com/story/news/2014/03/27/rail-bottleneck-grain-ethanol-shippers/6946393/
thanol prices are unlikely to rise more
As the winter comes to an end, ethanol prices will likely come down as production resumes—although several analysts say this could take a while. Further upside for ethanol is unlikely, since gasoline prices have historically set the cap for ethanol prices. On March 21, the price ratio between gasoline and ethanol stood at a low of 1.25.
So although corn and ethanol prices have historically followed each other closely, and ethanol prices have risen, production cuts could have resulted in lower demand for corn. However, if ethanol production rises over the year—and the EIA (Energy Information Agency) recently increased its forecast for ethanol production by 2,000 to 910,000 barrels a day for 2014—corn prices and the PowerShares DB Agriculture Fund ETF (DBA) should benefit.
This in turn would be positive for fertilizer stocks such as Potash Corp. (POT), Mosaic Co. (MOS), Intrepid Potash Inc. (IPI), and the Market Vectors Agribusiness ETF (MOO) as farmers plant more than expected. In 2013, the U.S. produced an average of 875,000 barrels a day.
http://marketrealist.com/2014/03/ethanol-to-corn-price-ratio-widest-since-2007-will-it-support-fertilizers/
Commodities: Ethanol prices surge due to supply shortage fears
http://world.einnews.com/article/197080644/KRMYxkMrD9JTa0vV
Trade through the ethanol market seems to indicate additional aggressive buying still stepping in. Traders are focusing on supplies that seem to tighten week-after-week, even when production levels are starting to increase.
Over the last two months, ethanol futures prices increased more than $1 per gallon. The April contract has moved to the highest price for front-month futures since August 2011.
Traders are looking for additional support as corn markets continue to show moderate strength over the near future and there is very little indication that supplies will grow significantly through the spring and early summer months. As seasonal driving demand starts to increase, there will be even more need to secure short- and long-term supplies by end users on the coasts. Spot ethanol prices are well over $4 per gallon across the East Coast; West Coast locations are nearing the $4 per gallon threshold.
Given the stability in gasoline prices so far this spring, a swift shift to lower demand is not expected. But if this supply tightness continues, expect some market reaction during peak summer demand.
Anyone who goes all in today..will get good result - next month.
Own 200 shares and paid $7.2/share.
http://www.businessweek.com/news/2014-03-20/billionaire-ross-says-shipping-demand-to-catch-supply-next-year
Thank you.
Almost bought it in September 2013. Added few today.