By Matthew Garrett, Contributor
Net income is for your taxes, EBITDA is for investors, and Net Operating Income is for business owners. …read more
Source: FULL ARTICLE at Forbes Latest
The Triple Bottom Line: Part 1 – Net Income From Operations
Tag Archives: EBITDA
Bayer to Buy Calif. Birth-Control Device Maker for $1B
By Reuters
Filed under: Company News, Mergers & Acquisitions, Drug Companies, Healthcare Industry, Stocks
By Ludwig Burger
FRANKFURT — Germany’s Bayer has agreed to buy U.S. contraceptive devices maker Conceptus for $1.1 billion, aiming to underpin its position as the world’s largest women’s health-care provider.
Bayer AG will launch a public tender offer to acquire all Conceptus Inc. (CPTS) shares for $31 each in cash, in an offer agreed with Conceptus’s management, Bayer said Monday.
That is a premium of 19.7 percent over the stock‘s closing price on Friday and a multiple of about 30 times the adjusted earnings before interest, taxes, depreciation and amortization that Conceptus is targeting for this year.
Shares in global health-care equipment and services companies on average trade at 9 times annual EBITDA, according to Thomson Reuters StarMine.
Bayer’s women’s health-care business had sales of €3.15 billion ($4.1 billion) last year, from products including its Yasmin contraceptive pill and Mirena intrauterine device.
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“Our experience in the field of gynecology combined with our sales and distribution expertise will help to further develop Conceptus’ business,” said Andreas Fibig, head of Bayer unit HealthCare Pharmaceuticals.
Conceptus, which makes inserts that are placed into the fallopian tubes as a permanent non-hormonal contraceptive, had $28.2 million in adjusted EBITDA last year on sales of $141 million.
The U.S. company has forecast 2013 adjusted EBITDA of between $34 million and $37 million on sales of between $155 million and $159 million.
Bayer Chief Executive Marijn Dekkers took the post in 2010 with a reputation for being able to handle transformational takeovers, but the Conceptus deal, expected to close by mid-year, is the latest in a line of small and medium-sized buys.
Last September Bayer agreed to buy Teva’s U.S. animal health operations for up to $145 million, following the purchase of AgraQuest, a developer of bacteria to fight plant disease, for at least $425 million.
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Source: FULL ARTICLE at DailyFinance
Bacterin Announces Updates on Executive Leadership Transition Plans
By Business Wirevia The Motley Fool
Filed under: Investing
Bacterin Announces Updates on Executive Leadership Transition Plans
Company in final stages of identifying search firm; several candidates express interest
BELGRADE, Mont.–(BUSINESS WIRE)– Bacterin International Holdings, Inc. (NYSE MKT: BONE), a leader in the development of revolutionary bone graft material and coatings for medical applications, today announced that it is in the final stages of identifying a key executive search firm to assist with the identification of a new Chief Executive Officer. The Company has narrowed its selection to three search firms and noted that it expects to have selected a firm by the end of next week.
“It is business as usual here at Bacterin,” said Kent Swanson, Chairman of Bacterin International. “We have been pleased with the speed at which our board and management team – headed by interim Co-CEO’s, John Gandolfo, Chief Financial Officer, and Darrel Holmes, Chief Operating Officer – have diligently worked to align and stabilize the business as the result of our recent management transition and to retain a search firm for our new Chief Executive Officer position. Our business remains stable and our employees are now more optimistic about the prospects of the Company.”
The Company also announced solid progress with cost reduction measures designed to generate positive EBITDA.
Mr. Swanson further commented, “I am confident of the value proposition our products and services offers to the market place. The candidate for our Chief Executive Officer position will have an understanding of our product portfolio and will have a track record of developing markets in this evolving healthcare environment. This candidate will represent a new vision and era of growth and progress for Bacterin International.”
About Bacterin International Holdings
Bacterin International Holdings, Inc. (NYSE MKT: BONE) develops, manufactures and markets biologics products to domestic and international markets. Bacterin’s proprietary methods optimize the growth factors in human allografts to create the ideal stem cell scaffold to promote bone, subchondral repair and dermal growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, promotion of bone growth in foot and ankle surgery, promotion of cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
Bacterin’s Medical Device division develops, employs, and licenses coatings for various medical device applications. For further information, please visit www.bacterin.com.
From: http://www.dailyfinance.com/2013/04/17/bacterin-announces-updates-on-executive-leadership/
The U.S.' 10 Most Valuable Retail Brands of 2013
By Dan Dzombak, The Motley Fool
Filed under: Investing
Recently, brand consultancy Interbrand came out with its report on the 50 most valuable U.S. retail brands of 2013. Read on to find out the top 10.
So how did Interbrand determine their value? In short, Interbrand looks at three key aspects. First is the financial performance of the branded products or services. Interbrand only considers companies with publicly available data that are creating economic value (meaning a positive EBITDA) and generating a minimum of 50% of their sales from their retail stores (this excludes Apple).
The other two aspects Interbrand considers are the role of the brand in the purchase decision process and the strength of the brand — meaning, “the ability of the brand to create loyalty and, therefore, to keep generating demand and profit into the future.”
Here are Interbrand’s 10 most valuable U.S. retail brands of 2013:
| Rank |
Company |
Brand Value |
Change From 2012 |
|---|---|---|---|
|
1 |
Wal-Mart |
$141.0 |
1% |
|
2 |
Target |
$25.0 |
7% |
|
3 |
Home Depot |
$22.9 |
4% |
|
4 |
Amazon.com |
$18.6 |
46% |
|
5 |
CVS |
$15.9 |
(8%) |
|
6 |
Coach |
$14.6 |
8% |
|
7 |
Walgreen |
$14.4 |
(4%) |
|
8 |
Sam’s Club (a subsidiary of Wal-Mart) |
$13.5 |
5% |
|
9 |
eBay |
$10.9 |
12% |
|
10 |
Nordstrom |
$10.1 |
7% |
Source: Interbrand.
Wal-Mart is the most valuable retail brand in the U.S. by a factor of five. Remarkably, Wal-Mart subsidiary Sam’s Club is the eighth most valuable retail brand in the U.S. Wal-Mart established itself as the dominant low-cost retailer over decades by constantly improving on its processes and supply chain skills under the leadership of Sam Walton. While Sam is no longer with us, Wal-Mart continues to thrive and his family leadership continues today under Chairman S. Robson Walton.
Many people don’t realize the difference in size between Wal-Mart and other retailers. The company’s sales for the fiscal year ended Jan. 31, 2013, were $275 billion in the U.S. Compare that to the second most valuable retail brand in the U.S., Target , with sales of just $72 billion. Even Amazon.com , 2013’s fastest-growing major brand, only did $35 billion in sales in the U.S. in the past year.
Notably absent from the top 10 this year is Best Buy , which moved from fifth in 2012 to 13th in 2013 as the company’s brand value dropped 52% to $8 billion. The electronics retailer had a tough 2012 as shoppers treated its stores as showrooms and then used apps to buy goods cheaper online from Amazon and eBay. In the past, both online retailers benefited from not having to collect state sales taxes, but that advantage is slowly ending.
Best Buy is slowly turning things around this year. It announced in February a policy to match prices found online, and earlier this month that
From: http://www.dailyfinance.com/2013/04/11/the-us-10-most-valuable-retail-brands-of/
Bernardo Hees to be Appointed Chief Executive Officer of H.J. Heinz Company Following Completion of
By Business Wirevia The Motley Fool
Filed under: Investing
Bernardo Hees to be Appointed Chief Executive Officer of H.J. Heinz Company Following Completion of the Acquisition by 3G Capital and Berkshire Hathaway
PITTSBURGH–(BUSINESS WIRE)– 3G Capital and Berkshire Hathaway today announced that Bernardo Hees will become Chief Executive Officer of H.J. Heinz Company (NYS: HNZ) upon completion of the previously announced acquisition of Heinz by an investment consortium comprised of Berkshire Hathaway and 3G Capital.
Mr. Hees (43) has been Chief Executive Officer of Burger King Worldwide, Inc. (BKW) since September 10, 2010. Prior to joining BKW, Mr. Hees was Chief Executive Officer of America Latina Logistica (ALL), Latin America‘s largest railroad and logistics company.
Alex Behring, Managing Partner at 3G Capital said, “Bernardo is a proven executive with an unparalleled track record of delivering results. Over the past two and a half years at Burger King, Bernardo grew adjusted EBITDA by 44 percent from $454mm in 2010 to $652mm in 2012 and expanded the company’s adjusted EBITDA margin by 14% from 19% in 2010 to 33% in 2012. His combination of experience, leadership skills and broad understanding of the food industry make him the ideal leader to drive the next chapter in Heinz’s storied history. Bernardo will work closely with Heinz’s current Chairman, President and CEO, Bill Johnson, and the management team to ensure a smooth transition over the coming months.”
Commenting on his appointment, Mr. Hees said, “I am honored to be appointed the next CEO of Heinz, building upon the great success established during Mr. Johnson’s tenure. Heinz is one of the premier food companies in the world, led by the iconic Heinz Ketchup business. I look forward to joining the team and working in close partnership with the Company’s senior management, employees and customers to strengthen the business both domestically and internationally, while continuing to delight consumers with great tasting food products. On a personal level, my family and I are excited to be relocating to Pittsburgh and look forward to calling this great city home.”
Mr. Johnson will remain as Chairman, President and CEO of Heinz until the transaction is complete. 3G Capital and Berkshire Hathaway expect to discuss with Mr. Johnson his interest in a continuing role with the Company post closure following the shareholder meeting on April 30. Under Mr. Johnson’s leadership, Heinz has successfully reshaped its business to focus on the core brands, categories and geographies where it has leading market positions and the capabilities to drive consistent, profitable growth. Reflecting Mr. Johnson’s strong commitment to delivering sustainable growth for Heinz shareholders, Heinz has become one of the best-performing global companies in the packaged foods
From: http://www.dailyfinance.com/2013/04/11/bernardo-hees-to-be-appointed-chief-executive-offi/
Mechel Secures $1 Billion Loan
By Eric Volkman, The Motley Fool
Filed under: Investing
The coffers of Mechel are now much fuller. The company has signed an agreement for a 40 billion ruble ($1.3 billion) loan from VTB Bank, a lender based in Mechel’s home base of Russia. Of the total, roughly 25 billion ($802 million) will go toward the servicing of short-term facilities coming due in 2013. It also aims to refinance other debt obligations with the monies.
The loan, which comes due in 2018, has a 15-month grace period before quarterly amortization starts to kick in. The interest rate is pegged to Mechel’s net debt/EBITDA ratio, which will decrease along with the firm’s de-leveraging.
The article Mechel Secures $1 Billion Loan originally appeared on Fool.com.
Fool contributor Eric Volkman has no position in Mechel, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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Integralis Posts Record Revenues for 2012 as It Continues Transition to 'Trusted Advisor' Status
By Business Wirevia The Motley Fool
Filed under: Investing
Integralis Posts Record Revenues for 2012 as It Continues Transition to ‘Trusted Advisor’ Status
BLOOMFIELD, Conn. & ISMANING, Germany–(BUSINESS WIRE)– Integralis AG, a global provider of IT Security and Information Risk Management solutions and the IT security arm of NTT Communications Group, has announced record revenues of €204.9m for 2012, an increase of 15.1 per cent over the previous year, as well as improved EBITDA figures of €6.2m, up from €-7.7m in 2011.
The company’s financial success reflects its ongoing transition to focus more on high-end Managed and Professional Services (MAPS), in line with changing market conditions and global business drivers. The evolution of the Integralis business, initiated in 2011, will continue throughout this financial year and beyond as it positions itself as a ‘Trusted Advisor‘ to organizations looking to be agile but secure in the current economic climate.
Simon Church, CEO, Integralis AG, said: “We are seeing a constantly shifting business landscape with several dominant factors driving it – big data, cloud, mobility and social networking and collaboration. While these are having a profound effect on how businesses grow and retain customers, there is also a continued focus on driving efficiency and increasing visibility across the organization. Plus, there’s the need to attract and retain the right talent and exploit new markets – and all of this against the backdrop of a continually evolving threat environment.
“As a result, we have invested heavily in our Consulting and Professional Services capabilities (currently numbering more than 500 business and technology consultants), supported by investment and resources from our majority shareholder, NTT Communications to meet demand.”
Akira Arima, CEO at NTT Communications, added, “NTT Communications continues to invest in the growth and expansion of Integralis as our dedicated security arm worldwide. We are focusing on building on the company’s Managed and Professional Services expertise to provide seamless information security services and to be a trusted security partner to customers.”
Heiner Luntz, Integralis’ Chief Financial Officer, added: “Traditionally companies have simply bolted on security products and technologies to tackle security threats, but this approach no longer works in our ‘brave new world’. We recognize this, plus the need for a balance between Managed and Professional Services and best of breed security technologies that allow clients to make informed decisions aligned to their overall corporate goals and risk appetite. We’ve made significant changes within the business to reflect this, offering clients strategic and practical advice on information security and risk management, combined with deep technical expertise and industry knowledge.”
Source: FULL ARTICLE at DailyFinance
Don't Be Aggressive With Sirius XM?
By Rick Munarriz, The Motley Fool
Filed under: Investing
Jim Cramer suggested that a cautious stance is in order for Sirius XM Radio during last night’s Mad Money show.
“I think Sirius Radio is a slow grower here,” he warned.
Cramer sees the shares gradually moving from $3 to $3.50, but he feels that speculators holding out for a pop to $5 will be disappointed. The growth isn’t there, he offers.
“Don’t be aggressive!”
The problem, naturally, is that Sirius XM investors have been bred to be aggressive. The stock is volatile. It has rallied over the past four years, clocking in as a whopping 60-bagger since bottoming out in early 2009. However, the stock also crashed in the years preceding that run. Volatility cuts both ways.
It’s been feast or famine with Sirius XM, and now Cramer is advising investors not to be aggressive? To be fair, Sirius XM’s growth has slowed in recent years. Subscriber growth has slowed to the single digits, and that’s unlikely to change in the near term. Sirius XM’s emergence as a profitable media giant was a validating moment, but that stabilizing turn has already been priced into the shares.
Why shouldn’t Sirius XM investors be happy with the 14% return from yesterday’s close to $3.50? It’s not a bad return. It’s not as if Sirius XM is as risky as it was during its dark days of 2009, so it’s not as if shareholders should expect a big risk-adjusted return.
However, there are a few things that could send the stock past $3.50 sooner rather than later.
For starters, Cramer is only half-right about Sirius XM not being a growth story at this point. Revenue growth isn’t likely to accelerate in the near term, but it’s a different story on the way down to the bottom line.
Sirius XM’s guidance calls for revenue to climb just 9% in 2013, but adjusted EBITDA and free cash flow are expected to climb 20% and 27%, respectively. This trend will continue given the scalable model. As long as subscriber growth continues, Sirius XM’s bottom-line performance should surpass its top-line upticks.
There are also online opportunities. Worrywarts paint Pandora as a threat, but it’s also an opportunity, as Sirius XM has introduced some interesting Web-based features over the past year. Receiver-based subscribers have to pay a few dollars more a month for online access, so the online migration is a way for Sirius XM to push its average revenue per user higher.
The two-way nature of cyberspace also opens the door for e-commerce opportunities and more value for advertisers buying ads on the non-commercial-free stations.
The road to $5 was never going to be easy. Sirius XM has a lot to prove if it wants to deem itself worthy of a market cap well north of $30 billion. However, don’t tell investors not to be aggressive with Sirius XM. It’s the only way that people know how to play the high-beta media giant.
Deep tracks
Despite Sirius XM being one of the market‘s biggest
Source: FULL ARTICLE at DailyFinance
Ladenburg Thalmann Sends Annual Letter to Shareholders
By Business Wirevia The Motley Fool
Filed under: Investing
Ladenburg Thalmann Sends Annual Letter to Shareholders
MIAMI–(BUSINESS WIRE)– Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS) (“Ladenburg” or the “Company”) today announced that the Company sent the following annual letter to its shareholders from the Chairman of the Board, Dr. Phillip Frost, and the Company’s President & Chief Executive Officer, Richard J. Lampen:
Dear Fellow Shareholder:
2012 was a most notable year for Ladenburg Thalmann. By the metrics of revenues, adjusted EBITDA and cash flow, it was a period of remarkable growth. More importantly, 2012 was the year that all the elements of our business strategy — which has been to combine the more stable and recurring revenue and cash flows of the Independent Brokerage and Advisory Services (IBD) business with the more volatile and cyclical, but potentially highly-profitable capital markets and investment banking businesses — gained the synergies and critical mass that we believe will allow us to achieve the enduring growth and profitability that is our intention and our shareholders’ aspiration.
Let us review some highlights of 2012 and the underlying business developments behind these achievements before providing an outlook on 2013 and beyond.
2012 Overview
|
• |
In 2012, revenues increased 138% to $650.1 million. Much of that growth was achieved by our recent acquisition of Securities America. However, apart from Securities America‘s contribution, revenues in our independent brokerage and advisory services segments increased by 11% and the revenues of our investment banking business increased by 6%. Ladenburg’s revenues have increased 2,118% since our current management took the …read more Source: FULL ARTICLE at DailyFinance |
High-Dividend Stocks for Income Investors
By Daniel Sparks, The Motley Fool
Filed under: Investing
It is possible to find unreasonably undervalued stocks even when the market is fairly valued. France Telecom and Windstream have both plummeted over the last year as the overall market indexes continue to make gains, but the sell-off for these two stocks has gone a bit too far — especially considering their very attractive dividend yields.
FTE Dividend Yield data by YCharts.
It’s easy to panic when stocks in your portfolio decline, but the best thing to do is to remain calm and reevaluate your thesis. Many times you might find that the market has overreacted to a temporary setback. Or, even if you do find that the stock is worth less, it might have been oversold to a point where it is still undervalued compared to your new estimate of the stock‘s worth. These situations might be good opportunities to build up holdings of high-dividend stocks and lock in a higher yield.
France Telecom
France Telecom, for instance, is down about 28% over the last 12 months. The main reason for the decline is the aggressive and successful entrance of Iliad as the fourth wireless operator in France. Iliad acquired 6 million customers in its first nine months of operation — an impressive feat. This has forced France Telecom to lower prices in order to continue to gain new subscribers, which will inevitably cause the company’s revenue to decline as existing contracts roll into the lower pricing.
But the sell-off has gone too far. Though increased competition will pressure France Telecom to accept a new reality, the business‘ scale should help it compete effectively at lower price points. The stock now trades with a ridiculously high dividend yield of about 15.7%.
Windstream
Windstream is down about 27.5% over the past 12 months. Though the company has successfully entered new, fast-growing markets like business services and managed data centers, it is still heavily tied to the fixed-line phone business. Unfortunately, the fixed-line phone industry has been in decline for years.
Windstream’s aggressive move to new revenue streams, however, is quite impressive. “Including PAETEC, the deals Windstream has struck since 2009 now produce more than half of total revenue and account for nearly 40% of the firm’s enterprise value and EBITDA,” writes Morningstar analyst Michael Hodel.
Plus, management has insisted on paying out a high percentage of cash flow as dividends, giving investors a 12% yield at today’s price. This practice forces management to think very carefully about major capital allocation and operating decisions.
Mind-boggling yields
15.7% and 12% yields? It doesn’t get much better than that. High-dividend stocks are hard to come by, and these yields are unusually high. What do you think about these two stocks? Are they undervalued?
If you’re on the lookout for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It’s called “Secure Your Future With 9 Rock-Solid Dividend Stocks.” You can …read more
Source: FULL ARTICLE at DailyFinance
Why Mistras Group Shares Tumbled
By Jeremy Bowman, The Motley Fool
Filed under: Investing
Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
What: Shares of Mistras Group were falling flat today, dropping as much as 12% after reporting a disappointing quarter.
So what: Mistras, which provides energy infrastructure services, said revenue increased 28% in the quarter to $133.9 million, while earnings came in at $0.09 per share, down from $0.13. Sales were enough to beat estimates, but earnings were well short of the experts’ view at $0.17. Much of Mistras’ revenue growth also came from acquisitions, as organic sales increased 10%. CEO Sotirios Vahaviolos pointed to improvements in international sales but also said that changes in the sales mix led to lower profits. Management now expects fiscal-year revenue to come in the high end of its guidance of $525 million to $535 million, in line with analyst estimates, but it lowered its EBITDA guidance.
Now what: It’s never a good sign when profits move in the wrong direction, but the top-line beat should help reassure investors. Management also expressed confidence in long-term growth prospects, and if sales increase, profits should eventually follow. I wouldn’t change my investing thesis based on today’s report alone.
Stay up to date on Mistras Group. Add the company to your Watchlist by clicking right here.
The article Why Mistras Group Shares Tumbled originally appeared on Fool.com.
Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
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An Upcoming Spinoff That Smells of Roses
By Michael Lewis, The Motley Fool
Filed under: Investing
As is often mentioned, spinoffs tend to create market-beating opportunities for those who bother to pay attention to them. The idea of a spinoff, for most companies, is either to shed some assets to bulk up the balance sheet, or to illuminate value somewhere in the parent company. The funny thing is, it’s often the spun-off company whose value is brought to light. One likely example is the upcoming United Online spinoff. The newly formed company will be composed of FTD — a Web-based florist and gift shop. Similar to its peers in the space, FTD is a growing, cash-generating business that leverages the scale of local florists across the world into one cohesive operation. The best part is, the offering price may substantially undervalue the stock.
The deal
The parent company in this special situation, United Online, is a sort of holding company for Web-based technology firms. The company owns NetZero and Juno — a dial-up Internet service you may remember from the early days of Web. That may sound unappetizing, but management did not pour money into this segment in recent years and, instead, milked its declining yet substantial cash flows. While this is a sign of effective, logical management, it is not the focus of this idea.
United Online bought FTD back in August 2008. For those unfamiliar with it, it is a very similar business to 1-800-Flowers.com . FTD, though, in what is a generally unappealing and highly competitive industry, is actually a very strong business, highlighted by a close-to-negative or negative working capital business model (i.e., asset-light, cash-flow heavy) with a wide moat.
In 2012, FTD accounted for 70% of United Online’s consolidated revenues — roughly $613 million. The company earned $87 million in OIBDA (a number similar to EBITDA, but which does not factor in non-operating income), up from $83.5 million in the year prior. These numbers are a result of increased year-over-year order numbers — 7,020 from 6,628 in 2011.
For a commodity-like business such as this, marketing spend is a metric to keep an eye on. FTD has to continually differentiate itself by having a strong brand presence. Over the same period of time (2010-2012) that net income grew roughly 14%, marketing spend increased just 11.7% , suggesting that the company’s sales and marketing efforts are providing solid returns on capital.
Why it may be a steal
United Online currently trades at 10.2 times projected one-year earnings. If FTD’s pricing ends up similar, that will come as a sharp discount to 1-800-Flowers, which trades at nearly 18 times forward earnings. Also to keep in mind, 1-800-Flowers’ growth is driven mainly by its gift baskets, not flowers. Average order value was under that of FTD’s this past quarter at $57.37 (compared to more than $60 for FTD). If FTD decides to put the pedal to the metal on its gift basket business, as its competitor has, we could see even greater growth numbers than …read more
Source: FULL ARTICLE at DailyFinance
Zep Inc. Reports Solid Second Quarter Results
By Business Wirevia The Motley Fool
Filed under: Investing
Zep Inc. Reports Solid Second Quarter Results
Compared to the second quarter of last year,
-
Revenue grew 7.7% to $163.4 million
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Gross profit margin grew by 260bps to 47.4%
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Earnings Per Share grew 9.1% to $0.12
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EBITDA increased $3.0 million or 34% to $11.8 million
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Zep Vehicle Care integration on-track
ATLANTA–(BUSINESS WIRE)– Zep Inc. (NYS: ZEP) , a leading consumable packaged goods company that manufactures a wide variety of high-performance maintenance and cleaning chemicals, today reported financial results for the three-month period ended February 28, 2013.
Second quarter results reflected sales growth in retail, which were again driven by automotive aftermarket and by sales to new retailers, while our distribution channel again drove growth with industrial/MRO customers. In addition, acquisitions added approximately $17.4 million to net sales during the quarter.
- Revenue in the …read more
Source: FULL ARTICLE at DailyFinance
FXCM Proposes Acquisition of Gain Capital
By Business Wirevia The Motley Fool
Filed under: Investing
FXCM Proposes Acquisition of Gain Capital
Combined Company Expected to be Accretive to All Parties
Conference Call Scheduled for 8:15 a.m. on Tuesday, April 9, 2013
Proposed Acquisition Highlights:
- Would create an industry leader with potentially significant benefits of improved scale economics
- Pro forma 2012 revenues of ~$569 million, client assets of ~$1.6 billion(1) and estimated post-synergy run-rate Adjusted EBITDA of between ~$163 and ~$183 million(2)
- Potential significant operating synergies which can potentially drive between $50 and $70 million in incremental run-rate EBITDA once integration is complete
- Potential capital synergies could result in the release of between $80 and $100 million in currently restricted cash
- Projected to be accretive in 2014 after excluding one-time restructuring cost
NEW YORK–(BUSINESS WIRE)– FXCM Inc. (“FXCM“) (NYS: FXCM) , a leading online provider of foreign exchange, or FX, trading and related services, today announced it is proposing to merge with and acquire Gain Capital Holdings LLC (“GAIN”) (NYS: GCAP) .
The proposal was communicated this evening in a letter from FXCM to Gain’s Board of Directors, to inform them of FXCM‘s desire to reach agreement on a transaction that would create the industry leader in online FX trading.
“FXCM believes that the substantial potential operating and capital synergies between the two companies would result in an accretive deal with a strong growth profile and improved economies of scale,” said Drew Niv, CEO of FXCM. “Additionally, FXCM believes customers of both FXCM and Gain will greatly benefit from the expected improvement of financial strength and stability of the combined entity.”
“This proposed merger is the highest priority for FXCM, and we hope that Gain is as excited as we are about the potential a combined company could have.”
The proposed transaction would give Gain shareholders 0.3996 shares of FXCM Class A common stock …read more
Source: FULL ARTICLE at DailyFinance
Why Premier Oil, Quindell Portfolio, and Gooch & Housego Beat the FTSE 100 Today
By Alan Oscroft, The Motley Fool
Filed under: Investing
LONDON — The FTSE 100 started the week off on the right foot, gaining 0.43% to close at 6,277 points. There isn’t any real news behind the modest rise, which has been boosted by a mild recovery in some mining shares, but poor U.S. jobs news from last Friday is causing some pessimism.
But even if things are looking a little gloomy, there are plenty of individual companies prospering. Here are three whose shares were on the up today.
Premier Oil
Premier Oil shares picked up 6.1% today to reach 385 pence after the oil explorer announced a new discovery in the North Sea off Norway. Premier has a 30% stake in the Luno II prospect, and the 16/4-6S well in the area has hit a “potentially significant oil discovery” with a gross oil column in excess of 40 meters. Tests will now be conducted to check for flow potential.
Premier Oil shares have picked up nicely since the start of the year, with the firm reporting record full-year earnings of $252 million last month. And shareholders are in for a dividend of 5 pence per share — their first since 1997.
Quindell
A first-quarter update from Quindell Portfolio sent the firm’s shares up a further 1.9% to 13.5 pence today, topping a nice start to April for the software specialist. Quindell, which provides software and outsourcing services to a number of sectors including telecoms and insurance, told us that it has achieved more than 25 million pounds in EBITDA in the three months to March and that margins are better than expected.
The company says it is on track to meet full-year expectations, which suggests that we should see a better-than-doubling of earnings per share, putting the shares on a forward P/E of around 10. Growth bargain? Could be.
Gooch & Housego
Shares in optical-components specialist Gooch & Housego have done well over the past month, and they gained a further 3.4% to 455 pence today after a first-half trading update told us the firm’s order book now stands at 29.6 million pounds, up 19% from the start of the year.
The U.S. aerospace and defense market has been tough, but Gooch & Housego has won orders from European customers in the same industry and has strengthened its Asian presence by starting up a Japanese subsidiary and expanding in Singapore and China. Trading so far is “in line with expectations.”
Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits. But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.
The article Why Premier Oil, …read more
Source: FULL ARTICLE at DailyFinance
Why I'm Finally Buying Seadrill
By Matt DiLallo, The Motley Fool
Filed under: Investing
I’ve had my eye on Seadrill for some time now. The company pays a very tempting dividend, currently at just over 9%. However, as I drilled down deeper into the company and the industry, it became pretty clear to me that it offered a compelling long-term investment opportunity.
The opportunity
Last year marked the best year ever for deepwater and ultra-deepwater discoveries. Not only did the energy industry’s 52 finds smash the old record by 40%, but those discoveries were spread across the globe off the coasts of 14 nations. As good as last year was, 2013 is shaping up to be a gusher as well.
Just last month ConocoPhillips and its partners announced two discoveries in the Gulf of Mexico. ConocoPhillips is planning to drill five exploration and appraisal wells this year, but that plan could be expanded by three more wells. Given its success, it wouldn’t be a surprise if the company devotes more capital to its deepwater projects.
That’s what is so compelling about Seadrill’s future. The more oil that’s discovered, the more it will incentivize energy companies to drill. That, of course, creates higher day rates for Seadrill’s rigs which equates to more profits. It’s a cycle that’s showing no signs of slowing down.
Why Seadrill?
While I really like Seadrill’s outsized dividend, that’s not the main reason why I’m choosing the company. The company is in the midst of a major newbuild program which has 22 units expected to be delivered over the next few years. This fleet build-out gives the company the most modern fleet of all the offshore drillers. That’s important because it means less downtime, which is something exploration and production companies really like.
Further, Seadrill has a contract backlog of $21 billion which goes a long way to securing its hefty dividend. When you put it all together, the company is poised to grow its EBITDA by 50% by 2015. However, the company is not without its risks.
The risks
The biggest risk in my mind is Seadrill’s use of debt to fund its growth. While the contract backlog provides security, it’s still a risk as debt has been known to be the weight that’s sunk many businesses. However, Seadrill does have a plan to keep its debt it check.
One of the levers it can pull is to drop down assets into Seadrill Partners . The company has already identified several assets with contract lengths of more than five years that would be ideal candidates to sell into Seadrill Partners. This flexibility, when combined with the backlog, helps alleviate much of the pressure from the debt worries.
A final risk, and perhaps the company’s greatest unknown, is that of disaster similar in size and scope to the one that hit BP and Transocean in the Gulf of Mexico. Not only did the disaster have a devastating effect of the Gulf region but it also greatly affected the …read more
Source: FULL ARTICLE at DailyFinance
Why AstraZeneca, Punch Taverns, and Severfield-Rowen Should Beat the FTSE 100 Today
By Alan Oscroft, The Motley Fool
Filed under: Investing
LONDON — The FTSE 100 has slumped 1.2% to 6,269 points as of 8 a.m. EDT. The big fear last night was for weak U.S. jobs news, and that has been continuing today ahead of figures due to be released this afternoon.
There are few major shares rising today amid a generally gloomy market. But here are three that should beat the blue-chip index.
AstraZeneca
Shares in AstraZeneca have gained a modest 0.1% to reach 3,292 pence. It’s a positive reaction to the firm’s Phase 3 tests of Fostamatinib for treating rheumatoid arthritis. In the trial, the drug “achieved a statistically significant improvement in ACR20 response rate” in the two sets of test groups involved, both on different dosage patterns. The next two studies on the drug are expected later this quarter.
AstraZeneca shares are up about 18% over the past 12 months, and though this morning’s early rise has fallen back and the price is hovering around yesterday’s level, it still looks likely to beat a falling FTSE.
Punch Taverns
Interim results have sent Punch Taverns shares up 8.1% to 11.5 pence. For the half-year to March 2, performance was said to be in line with management expectations, with underlying EBITDA of 117 million pounds recorded. That fed through to a pre-tax profit of 26 million pounds and earnings of 3 pence per share.
The firm has sold 164 pubs and some other assets during the period, raising 55 million pounds, and it has invested about 100,000 pounds per pub in its 270 core pubs. Chief executive Stephen Billingham said, “We are progressing with our discussions with stakeholders on our capital restructuring and while discussions remain ongoing, we continue to believe a consensual restructuring can be launched in the first half of 2013.”
Severfield-Rowen
Struggling structural-steel specialist Severfield-Rowen enjoyed a small boost this morning, picking up 2.5% by midday, though it has since slipped back to near breakeven. The rise was in response to news of the firm’s successful rights issue. Acceptances for 93% of the new shares have been received, and they should be credited to CREST accounts today.
The share price is still down nearly 60% over the past 12 months, but hopefully this new issue will prove profitable for shareholders in the longer term.
Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits. But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.
The article Why AstraZeneca, Punch Taverns, and Severfield-Rowen Should Beat the FTSE 100 Today originally appeared on Fool.com.
<a target=_blank …read more
Source: FULL ARTICLE at DailyFinance
Greenbrier Q2 Beats on EPS, Misses on Revenue
By Eric Volkman, The Motley Fool
Filed under: Investing
Greenbrier‘s results for the company’s Q2 2013 have been released. For the quarter, revenue totaled $423 million, which was more than $35 million lower than the $458 million in the same period the previous year. Attributable net profit was also down, landing at $13.8 million ($0.45 per diluted share), from Q2 2012’s bottom line of $17.7 million ($0.57).
The revenue figure fell short of analyst estimates, while the EPS number exceeded them. Expectations were for $443 million in top line, and a per-share net of $0.37.
Greenbrier also provided forward guidance. The company believes it will deliver roughly 13,000 railcar units in fiscal 2013, and post revenue, adjusted EBITDA, and EPS similar to the previous year.
The article Greenbrier Q2 Beats on EPS, Misses on Revenue originally appeared on Fool.com.
Fool contributor Eric Volkman has no position in Greenbrier. The Motley Fool has no position in Greenbrier. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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Juicy Couture and Lucky Brand Go On Sale?
By Andrew Marder, The Motley Fool
Filed under: Investing
It looks like Juicy Couture and Lucky Brand have become too burdensome for Fifth and Pacific to handle. The company is reportedly looking to sell off the brands, leaving its portfolio centered around the fast-rising Kate Spade brand. Lucky has had some success in the past year, though Juicy has languished, stuck with the velour tracksuits of yesterday. While Fifth and Pacific hasn’t confirmed the rumors, the sale would make a lot of sense, and likely leave the company better off.
The Kate phenomenon
The biggest benefit to losing the brands would be the freedom it gives Fifth and Pacific to focus on its leading brand. Kate Spade had a 27% increase in direct-to-consumer comparable sales last quarter. The company has made the brand the focus of most of its recent presentations, going so far as to have an investors’ day in March that focused solely on Kate Spade. Conversely, Lucky saw only a 3% increase in comparable sales, and Juicy had a 2% decline.
Kate Spade has been the clear winner, competing well with both Coach and Michael Kors . While Kors saw a much larger jump in comparable sales — 41% last quarter — Kate’s increase is nothing to be overlooked. It far outpaced the 2% drop Coach’s North American stores experienced last quarter.
News of the potential sale sounded great to investors, and the stock jumped 7% during the day yesterday. That’s largely due to the fact that Fifth and Pacific would be free of the drag that Juicy has been exerting on the company. Management forecast negative sales growth for the brand in the coming year.
A good buy
Even though Juicy and Lucky have been lackluster recently, both brands still have a lot of recognition and would make a nice addition to many portfolios. While Fifth and Pacific hasn’t commented on the rumors yet, it would make sense to see both brands sold off to the same buyer, with Lucky sweetening the deal and covering for the weaknesses of Juicy. EBITDA increased at Lucky by 37% over the last year, helping to offset the 62% decline at Juicy.
As more details emerge, this will surely turn into better news for Fifth and Pacific shareholders. The company is reportedly sending out detailed information to sellers in the next week, and the sale could move quickly after that. While it’s still early, I wouldn’t be surprised to see a sale before the end of May. Keep your eyes on this one.
Michael Kors is one of today’s hottest high-end fashion brands, and that’s translated into one of the best-performing stocks in retail — since its debut on the market in late 2011, the share price has more than doubled. But with all that growth, has the stock finally become too expensive, or is there still room left to run? The Motley Fool’s new premium report on Michael Kors gives investors all the information they …read more
Source: FULL ARTICLE at DailyFinance
Midstates Petroleum to Acquire Oil-Weighted Properties in the Western Anadarko Basin in Oklahoma and
By Business Wirevia The Motley Fool
Filed under: Investing
Midstates Petroleum to Acquire Oil-Weighted Properties in the Western Anadarko Basin in Oklahoma and Texas
Transaction Significantly Increases Scope, Scale and Upside Potential
HOUSTON–(BUSINESS WIRE)– Midstates Petroleum Company, Inc. (NYS: MPO) (“Midstates” or the “Company”) announced today that it has entered into a Purchase and Sale Agreement with Panther Energy, LLC, and its partners Red Willow Mid-Continent, LLC and LINN Energy Holdings, LLC (NAS: LINE) (together, “Panther”), to acquire producing properties as well as developed and undeveloped acreage in the Anadarko Basin in Texas and Oklahoma for $620 million in cash. Both Panther Energy, LLC and Red Willow Mid-Continent, LLC are subsidiaries of the Southern Ute Indian Tribe Growth Fund. Primary horizontal drilling targets include the Cleveland, Marmaton, Cottage Grove, and Tonkawa formations. The transaction will be effective April 1, 2013 and closing is expected on or about May 31, 2013, subject to customary closing conditions.
Key highlights of the transaction include:
- Adds approximately 36.4 million barrels of oil equivalent (“Mmboe”) proved reserves that are 45% oil and 21% natural gas liquids (“NGLs”), of which 34% are proved developed producing
- Increases net current daily production by approximately 8,000 Boe per day (67% liquids)
- Enhances drilling inventory with over 700 low-risk, repeatable horizontal drilling opportunities
- Expands acreage position with approximately 140,000 net acres with multiple objectives; about 102,000 are in Texas and 38,000 are in Oklahoma; 60% of total acreage is held by production
- Adds approximately 280 gross producing wells that are over 80% operated with an average 69% working interest and 55% net revenue interest
- Provides more than 100 Mmboe in internally estimated resource potential
- Immediately accretive in 2013 to cash flow per share, as well as earnings, EBITDA, proved reserves and production per share
John Crum, Midstates Chairman, Chief Executive Officer and President commented, “The acquisition …read more
Source: FULL ARTICLE at DailyFinance