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– Record Fiscal Year 2018 Revenue of $963 million, up 10% Year-Over-Year –
– Fiscal Year 2018 Diluted EPS of $2.60, up 60% Year-Over-Year –
– Adjusted Fiscal Year 2018 Diluted EPS of $2.39, up 26% Year-Over-Year –
– Fourth Quarter Fiscal 2018 Revenue of $245 million, down 5% Year-Over-Year –
– Fourth Quarter Fiscal 2018 Diluted EPS of $0.58, up 14%Year-Over-Year –
– Adjusted Fourth Quarter Fiscal 2018 Diluted EPS of $0.65, up 10% Year-Over-Year –
– Increased Dividend 35% to $0.27 per Share for First Quarter Fiscal 2019 –
LOS ANGELES & NEW YORK--(BUSINESS WIRE)-- Houlihan Lokey, Inc. (NYSE:HLI) (“Houlihan Lokey”, or the “Company”) today reported financial results for its fiscal year and fourth quarter ended March 31, 2018. For the fiscal year, total revenue grew 10% to a fiscal year record of $963 million, compared with $872 million for the fiscal year ended March 31, 2017. For the fourth quarter ended March 31, 2018, total revenue decreased 5% to $245 million, compared with $257 million for the fourth quarter ended March 31, 2017.
Net income grew 59% to $172 million, or $2.60 per diluted share, for the fiscal year ended March 31, 2018, compared with $108 million, or $1.63 per diluted share, for the fiscal year ended March 31, 2017. Adjusted net income for the fiscal year ended March 31, 2018 grew 26% to $159 million, or $2.39 per diluted share, compared with $126 million, or $1.89 per diluted share, for the fiscal year ended March 31, 2017.
Net income grew 12% to $38 million, or $0.58 per diluted share, for the fourth quarter ended March 31, 2018, compared with $34 million, or $0.51 per diluted share, for the fourth quarter ended March 31, 2017. Adjusted net income for the fourth quarter ended March 31, 2018 grew 9% to $43 million, or $0.65 per diluted share, compared with $39 million, or $0.59 per diluted share, for the fourth quarter ended March 31, 2017.
"We are pleased to report another record fiscal year at Houlihan Lokey resulting in our 6th consecutive year of revenue growth. All three business segments performed well, and we enter our fiscal year 2019 with strong momentum in our business. We promoted nine Directors to MD and hired 20 new MDs in fiscal 2018 which adds considerable talent to our senior banking staff and positions us well for continued growth. Also, last month, we completed the acquisition of Quayle Munro. Our management team is thankful to our employees who helped us achieve record results, and our investors who supported us throughout the year,” stated Scott Beiser, Chief Executive Officer of Houlihan Lokey.
Selected Financial Data
(Unaudited and in thousands, except per share data)
U.S. GAAP Three Months Ended
March 31, Twelve Months Ended
March 31, 2018 2017 2018 2017 Fee revenue $244,753 $257,100 $963,364 $872,091 Operating expenses: Employee compensation and benefits 155,519 170,567 636,631 582,244 Non-compensation expenses 29,472 29,199 112,287 107,852 Total operating expenses 184,991 199,766 748,918 690,096 Operating income 59,762 57,334 214,446 181,995 Other (income) expense, net (1,052 ) 767 (3,390 ) 3,508 Income before provision for income taxes 60,814 56,567 217,836 178,487 Provision for income taxes 22,715 22,491 45,553 70,144 Net income attributable to Houlihan Lokey, Inc. $38,099 $34,076 $172,283 $108,343 Diluted net income per share of common stock $0.58 $0.51 $2.60 $1.63 Revenues
For the fiscal year ended March 31, 2018, total fee revenue grew 10% to $963 million from $872 million for the fiscal year ended March 31, 2017. For the fiscal year, Corporate Finance (“CF”) revenues increased 22%, Financial Restructuring (“FR”) revenues decreased 4%, and Financial Advisory Services (“FAS”) revenues increased 8% when compared with the fiscal year ended March 31, 2017.
For the fourth quarter ended March 31, 2018, total fee revenue decreased 5% to $245 million from $257 million for the fourth quarter ended March 31, 2017. For the quarter, CF revenues increased 13%, FR revenues decreased 25%, and FAS revenues decreased 1% when compared with the fourth quarter ended March 31, 2017.
Expenses
The Company’s employee compensation and benefits and non-compensation expenses during the periods presented and described below are on a GAAP, an adjusted, and an adjusted awarded basis, as appropriate.
(Unaudited and in thousands)
Three Months Ended March 31, U.S. GAAP Adjusted (Non-GAAP)* 2018 2017 2018 2017 Expenses: Employee compensation and benefits $155,519 $170,567 $153,098 $163,825 % of Revenues 63.5 % 66.3 % 62.6 % 63.7 % Non-compensation expenses $29,472 $29,199 $27,918 $26,966 % of Revenues 12.0 % 11.4 % 11.4 % 10.5 % Total operating expenses $184,991 $199,766 $181,017 $190,791 % of Revenues 75.6 % 77.7 % 74.0 % 74.2 % Adjusted awarded employee compensation and benefits $157,178 $168,400 % of Revenues 64.2 % 65.5 % (Unaudited and in thousands)
Twelve Months Ended March 31, U.S. GAAP Adjusted (Non-GAAP)* 2018 2017 2018 2017 Expenses: Employee compensation and benefits $636,631 $582,244 $611,714 $556,041 % of Revenues 66.1 % 66.8 % 63.5 % 63.8 % Non-compensation expenses $112,287 $107,852 $109,458 $105,619 % of Revenues 11.7 % 12.4 % 11.4 % 12.1 % Total operating expenses $748,918 $690,096 $721,172 $661,660 % of Revenues 77.7 % 79.1 % 74.9 % 75.9 % Adjusted awarded employee compensation and benefits $626,572 $570,300 % of Revenues 65.0 % 65.4 % Note: Figures may not sum due to rounding.
*Note: The adjusted and adjusted awarded figures represent non-GAAP information. See “Non-GAAP Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable GAAP numbers.
Total operating expenses were $749 million for the fiscal year ended March 31, 2018, an increase of 9% when compared with $690 million in operating expenses for the fiscal year ended March 31, 2017. Employee compensation and benefits expenses were $637 million for the fiscal year ended March 31, 2018, compared with $582 million for the fiscal year ended March 31, 2017. The increase in employee compensation and benefits expenses was primarily a result of the growth in revenues for the fiscal year.
Total adjusted operating expenses were $721 million for the fiscal year ended March 31, 2018, an increase of 9% when compared with $662 million in adjusted operating expenses for the fiscal year ended March 31, 2017. Adjusted employee compensation and benefits expenses were $612 million for the fiscal year ended March 31, 2018, compared with $556 million for the fiscal year ended March 31, 2017. The increase in adjusted employee compensation and benefits expenses was primarily a result of the growth in revenues for the fiscal year. This resulted in an adjusted compensation ratio of 63.5% for the fiscal year ended March 31, 2018, versus 63.8% for the fiscal year ended March 31, 2017.
Non-compensation expenses were $112 million for the fiscal year ended March 31, 2018, compared with $108 million for the fiscal year ended March 31, 2017. Non-compensation expenses increased primarily as a result of higher general operating expenses during the fiscal year ended March 31, 2018. Adjusted non-compensation expenses were $109 million for the fiscal year ended March 31, 2018, compared with $106 million for the fiscal year ended March 31, 2017. The increase in adjusted non-compensation expenses was primarily a result of higher general operating expenses during the fiscal year ended March 31, 2018.
The provision/(benefit) for income taxes was $46 million, representing an effective tax rate of 21% for the fiscal year ended March 31, 2018, compared with $70 million, representing an effective tax rate of 39% for the fiscal year ended March 31, 2017. The significant decrease in the effective tax rate was a result of (i) the Tax Cuts and Jobs Acts (the "Tax Act") that was enacted into law in December 2017 that resulted in a lower effective federal tax rate; the re-measurement of deferred tax assets and liabilities based on the new tax rate; a one-time deemed repatriation tax on foreign earnings, among other discrete items and (ii) the positive difference between the price of the stock at the time of vesting in October 2017 (accelerated from April/May 2018) and our stock price at the time of grant for the shares that vested. The adjusted provision for income taxes was $85 million, representing an adjusted effective tax rate of 35% for the fiscal year ended March 31, 2018, compared with $81 million, representing an adjusted effective tax rate of 39% for the fiscal year ended March 31, 2017. The decrease in the adjusted effective tax rate was a result of a lower statutory federal tax rate per the Tax Act.
Total operating expenses were $185 million for the fourth quarter ended March 31, 2018, a decrease of 7% when compared with $200 million in operating expenses for the fourth quarter ended March 31, 2017. Employee compensation and benefits expenses were $156 million for the fourth quarter ended March 31, 2018, compared with $171 million for the fourth quarter ended March 31, 2017. The decrease in employee compensation and benefits expenses was primarily a result of (i) the decline in revenues and (ii) a lower compensation ratio in the fourth quarter ended March 31, 2018 compared with the same period last year.
Total adjusted operating expenses were $181 million for the fourth quarter ended March 31, 2018, a decrease of 5% when compared with $191 million in adjusted operating expenses for the fourth quarter ended March 31, 2017. Adjusted employee compensation and benefits expenses were $153 million for the fourth quarter ended March 31, 2018, compared with $164 million for the fourth quarter ended March 31, 2017. The decrease in adjusted employee compensation and benefits expenses was primarily a result of the decline in revenues for the quarter. This resulted in an adjusted compensation ratio of 62.6% for the fourth quarter ended March 31, 2018, versus 63.7% for the fourth quarter ended March 31, 2017.
Non-compensation expenses were $29 million for both the fourth quarter ended March 31, 2018 and March 31, 2017. Non-compensation expenses remained flat primarily due to increases in general operating expenses that were offset by a decline in costs related to the Company's completed secondary stock offerings quarter-over-quarter. Adjusted non-compensation expenses were $28 million for the fourth quarter ended March 31, 2018 and $27 million for the fourth quarter ended March 31, 2017. The slight increase in adjusted non-compensation expenses was primarily a result of higher general operating expenses during the fiscal year ended March 31, 2018.
The provision/(benefit) for income taxes was $23 million, representing an effective tax rate of 37% for the fourth quarter ended March 31, 2018, compared with $22 million, representing an effective tax rate of 40% for the fourth quarter ended March 31, 2017. The adjusted provision for income taxes was $22 million, representing an adjusted effective tax rate of 34% for the fourth quarter ended March 31, 2018, compared with $26 million, representing an adjusted effective tax rate of 40% for the fourth quarter ended March 31, 2017. The decrease in the adjusted effective tax rate was a result of a lower statutory federal tax rate per the Tax Act.
Segment Reporting for the Fourth Quarter
For the fourth quarter ended March 31, 2018, Corporate Finance revenue grew 13% to $130 million, compared with $115 million during the fourth quarter ended March 31, 2017. The growth in revenues was driven by an increase in the average transaction fee per closed transaction offset by a decline in the number of closed transactions. CF closed 56 transactions in the fourth quarter ended March 31, 2018, versus 62 transactions in the fourth quarter ended March 31, 2017. Segment profit equaled $48 million for the fourth quarter ended March 31, 2018, compared with $28 million for the fourth quarter ended March 31, 2017. Segment profitability increased primarily as a result of lower employee compensation and benefits as a percentage of revenues when compared to the same quarter of the prior year.
Three Months Ended
March 31, Twelve Months Ended
March 31, 2018 2017 2018 2017 Corporate Finance Revenues $129,820 $115,075 $528,643 $434,558 Segment Profit¹ 47,886 28,222 177,575 119,739 # of MDs 92 87 92 87 # of Closed Transactions 56 62 226 216 For the fourth quarter ended March 31, 2018, Financial Restructuring revenue decreased 25% to $78 million, compared with $104 million during the fourth quarter ended March 31, 2017. FR closed 26 transactions in the fourth quarter ended March 31, 2018, versus 30 transactions in the fourth quarter ended March 31, 2017. Segment profit was $22 million for the fourth quarter ended March 31, 2018, compared with $37 million for the fourth quarter ended March 31, 2017, a decrease of 40%. The decrease in profitability was primarily a result of higher employee compensation and benefits expenses and higher non-compensation expenses as a percentage of revenues when compared to the same quarter last year.
(Unaudited and $ in thousands)
Three Months Ended
March 31, Twelve Months Ended
March 31, 2018 2017 2018 2017 Financial Restructuring Revenues $77,673 $104,223 $294,142 $307,595 Segment Profit¹ 22,339 37,289 73,691 92,831 # of MDs 42 43 42 43 # of Closed Transactions 26 30 77 75 For the fourth quarter ended March 31, 2018, Financial Advisory Services revenue decreased 1% to $37 million, compared with $38 million in the fourth quarter ended March 31, 2017. Segment profit was $6 million for the fourth quarter ended March 31, 2018, compared with $7 million for the fourth quarter ended March 31, 2017. Segment profitability decreased primarily as a result of higher non-compensation expenses when compared to the same quarter last year.
(Unaudited and $ in thousands)
Three Months Ended
March 31, Twelve Months Ended
March 31, 2018 2017 2018 2017 Financial Advisory Services Revenues $37,260 $37,802 $140,579 $129,938 Segment Profit¹ 5,557 7,129 26,334 28,905 # of MDs 35 35 35 35 # of Fee Events 2 602 595 1,339 1,236 1. We adjust the compensation expense for a business segment in situations where an employee residing in one business segment is performing work in another business segment where the revenues are accrued. We account for the compensation expense in the business segment where the employee resides. 2. A Fee Event includes any engagement that involves revenue activity during the measurement period based on a revenue minimum of $1,000 (one thousand dollars). Balance Sheet and Capital Allocation
The Board of Directors of the Company declared a regular quarterly cash dividend of $0.27 per share of Class A and Class B common stock. The dividend will be payable on June 15, 2018 to stockholders of record as of the close of business on June 4, 2018.
As of March 31, 2018, the Company had $416 million of cash and cash equivalents and investment securities, and loans payable aggregating $12 million.
Investor Conference Call and Webcast
The Company will host a conference call and live webcast at 5:00 p.m. Eastern Time on Wednesday, May 9, 2018, to discuss its fourth quarter fiscal year 2018 results. The number to call is 1-888-394-8218 (domestic) or 1-323-701-0225 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available on May 9, 2018 through May 16, 2018, by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering the passcode 5061549#. A replay of the webcast will be archived and available on the Company’s website.
Forward-Looking Statements
This press release contains within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance, or achievements. For a further description of such factors, you should read the Company’s filings Commission. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
Adjusted net income, total and on a per share basis, and adjusted operating expenses are presented and discussed in this earnings press release and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results. Adjusted net income and adjusted operating expenses remove the significant accounting impact of one-time charges associated with the Company’s IPO and other matters, as set forth in the tables at the end of this release.
Adjusted net income and adjusted operating expenses as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, adjusted net income is not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company’s financial information determined under GAAP. For a description of the Company’s use of adjusted net income and a reconciliation with net income, as well as a reconciliation of the specific line items in adjusted operating expenses, see the section of this press release titled “Reconciliation of GAAP to Adjusted Financial Information.” Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.
About Houlihan Lokey
Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm's commitment to client success across its advisory services. Houlihan Lokey is ranked as the No. 1 M&A advisor for all U.S. transactions, the No. 1 global restructuring advisor, and the No. 1 global M&A fairness opinion advisor over the past 20 years, according to Thomson Reuters. For more information, please visit www.HL.com .
Appendix
Consolidated Balance Sheet (Unaudited)
Consolidated Statement of Income (Unaudited)
Reconciliation of GAAP to Adjusted Financial Information (Unaudited)
Houlihan Lokey, Inc.
Consolidated Balance Sheet
(In thousands, except share data and par value)
March 31,
2018 March 31,
2017 (unaudited) (audited) Assets: Cash and cash equivalents $206,723 $300,314 Restricted cash 93,500 192,372 Investment securities 209,319 — Accounts receivable, net of allowance for doubtful accounts 77,259 60,718 Unbilled work in process 45,862 57,682 Receivable from affiliates 8,732 10,913 Property and equipment – net of accumulated depreciation 32,146 30,416 Goodwill and other intangibles 723,310 715,343 Other assets 21,990 17,949 Total assets 1,418,841 1,385,707 Liabilities and Stockholders' Equity Liabilities: Accrued salaries and bonuses 377,901 336,465 Accounts payable and accrued expenses 40,772 41,655 Deferred income 3,620 3,717 Income taxes payable 9,967 4,937 Deferred income taxes 22,180 31,196 Forward repurchase liability 93,500 192,372 Loan payable to affiliate — 15,000 Loans payable to former shareholders 3,036 5,482 Loan payable to non-affiliate 8,825 12,080 Other liabilities 6,227 12,348 Total liabilities 566,028 655,252 Redeemable noncontrolling interest — 3,838 Stockholders' equity: Class A common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 30,604,405 and 22,026,811 shares as of March 31, 2018 and March 31, 2017, respectively 31 22 Class B common stock, $0.001 par value. Authorized 1,000,000,000 shares; issued and outstanding 37,187,932 and 50,883,299 shares as of March 31, 2018 and March 31, 2017, respectively 37 51 Treasury stock, at cost; 2,000,000 and 6,900,000 shares as of March 31, 2018, and March 31, 2017, respectively (93,500 ) (193,572 ) Additional paid-in capital 753,077 854,750 Retained earnings 207,124 87,407 Accumulated other comprehensive loss (13,956 ) (21,917 ) Stock subscription receivable — (124 ) Total stockholders' equity 852,813 726,617 Total liabilities and stockholders' equity 1,418,841 1,385,707 Houlihan Lokey, Inc.
Consolidated Statement of Income
(Unaudited and in thousands, except share and per share data)
Three Months Ended
March 31,
Twelve Months Ended
March 31, 2018 2017 2018 2017 Fee revenue $244,753 $257,100 $963,364 $872,091 Operating expenses: Employee compensation and benefits 155,519 170,567 636,631 582,244 Travel, meals, and entertainment 6,504 5,780 26,445 21,707 Rent 7,252 6,346 28,560 27,094 Depreciation and amortization 1,785 1,955 7,905 8,853 Information technology and communications 4,815 4,146 18,481 17,628 Professional fees 6,875 4,859 17,117 13,073 Other operating expenses, net 2,241 6,113 13,779 19,497 Total operating expenses 184,991 199,766 748,918 690,096 Operating income 59,762 57,334 214,446 181,995 Other (income) expense, net (1,052 ) 767 (3,390 ) 3,508 Income before provision for income taxes 60,814 56,567 217,836 178,487 Provision for income taxes 22,715 22,491 45,553 70,144 Net income attributable to Houlihan Lokey, Inc. $38,099 $34,076 $172,283 $108,343 Weighted average shares of common stock outstanding: Basic 62,971,472 61,584,806 62,494,275 61,100,497 Fully Diluted 65,886,277 66,456,651 66,324,093 66,579,130 Net income per share of common stock: Basic $0.61 $0.55 $2.76 $1.77 Fully Diluted $0.58 $0.51 $2.60 $1.63 Houlihan Lokey, Inc.
Reconciliation of GAAP to Adjusted Financial Information
(Unaudited and in thousands, except per share data)
Three Months Ended
March 31, Twelve Months Ended
March 31, 2018 2017 2018 2017 Fee revenue $244,753 $257,100 $963,364 $872,091 Employee Compensation and Benefits Employee Compensation and Benefits (GAAP) $155,519 $170,567 $636,631 $582,244 Less/Plus: Adjustments 1 (2,421 ) (6,742 ) (24,917 ) (26,203 ) Employee Compensation and Benefits (Adjusted) 153,098 163,825 611,714 556,041 Less/Plus: Adjustments 2 4,080 4,575 14,858 14,259 Employee Compensation and Benefits (Adjusted Awarded) 157,178 168,400 626,572 570,300 Non-Compensation Expenses Non-Compensation Expenses (GAAP) $29,472 $29,199 $112,287 $107,852 Less/Plus: Adjustments 3 (1,554 ) (2,233 ) (2,829 ) (2,233 ) Non-Compensation Expenses (Adjusted) 27,918 26,966 109,458 105,619 Operating Income Operating Income (GAAP) $59,762 $57,334 $214,446 $181,995 Less/Plus: Adjustments 4 3,974 8,975 27,746 28,436 Operating Income (Adjusted) 63,736 66,309 242,192 210,431 Other (Income) Expenses, net Other (Income) Expenses, net (GAAP) ($1,052 ) $767 ($3,390 ) $3,508 Less/Plus: Adjustments 5 — — 1,552 — Other (Income) Expenses, net (Adjusted) (1,052 ) 767 (1,838 ) 3,508 Provision for Income Taxes Provision for Income Taxes (GAAP) $22,715 $22,491 $45,553 $70,144 Less/Plus: Adjustments 6 (955 ) 3,568 39,812 11,177 Provision for Income Taxes (Adjusted) 21,760 26,059 85,365 81,321 Net Income Net Income (GAAP) $38,099 $34,076 $172,283 $108,343 Less/Plus: Adjustments 7 4,929 5,407 (13,618 ) 17,259 Net Income (Adjusted) 43,028 39,483 158,665 125,602 Diluted adjusted net income per share of common stock $0.65 $0.59 $2.39 $1.89 | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/09/business-wire-houlihan-lokey-reports-fiscal-year-and-fourth-quarter-fiscal-2018-financial-results.html |
Charlie Munger has been working alongside Warren Buffett for almost 60 years . Together, the business partners, billionaires and friends transformed Berkshire Hathaway from a once failing textile manufacturer into a $490 billion conglomerate .
Buffett, the 87-year-old CEO and chairman of Berkshire Hathaway, and Munger, the 94-year-old vice chairman, have dealt with more responsibility than most over their decades long careers.
To be as efficient as possible, Munger developed a simple productivity hack: using any available downtime to read.
"As long as I have a book in my hand, I don't feel like I'm wasting time," Munger said, according to his close friend and the founder of Himalaya Capital , Li Lu.
Lu, who has known Munger for over a decade and wrote an introduction to Munger's book, " Poor Charlie's Almanack ," said the billionaire would carry around a book or a newspaper just in case he might be delayed.
For example, Munger once missed a commercial flight out of the airport.
"When he passed through the security detector, it repeatedly set off," Lu remembered in the introduction. "Charlie returned again and again for the security check. He finally passed through the security checkpoint after along and laborious effort, but by then, his plane had already departed.
"Charlie did not seem upset," Lu writes . "He took out a book he carried with him and sat down to read while he waited for the next flight."
The investing legend also uses the same strategy while waiting to take meetings. When Lu first met Munger, Munger had already finished reading several newspapers.
"Charlie likes to meet people for breakfast, usually starting at 7:30 a.m.," Lu writes in the introduction. "I arrived on time and found Charlie sitting there, finished with the day's newspapers. It was only a few short minutes before 7:30, but I felt bad letting an older man I respected wait for me."
So, the next time Lu and Munger arranged to meet, Lu got there 15 minutes earlier.
"[I] still found Charlie sitting there, reading the newspaper," Lu says. "For our third meeting, I arrived 30 minutes earlier and Charlie was still reading the newspaper, as if he had been waiting there all year round and had never left the seat."
The morning reading was intentional: "I came to understand that Charlie always arrives early for meetings," Lu writes. "However, he does not waste time either, because he reads the newspapers he brought along."
The papers he reads include "The Wall Street Journal," "The New York Times," "The Financial Times" and "Los Angeles Times," according to Munger . He's also a weekly reader of "The Economist."
For Munger, the simple habit is the key to wisdom and success. "In my whole life, I have known no wise people who didn't read all the time — none, zero," Munger says in author David Clark's " The Tao of Charlie Munger ." "If you want wisdom, you'll get it sitting on your a--. That's the way it comes."
Indeed, Buffett also reveres reading , and spends up to six hours at it each day. And one of Buffett and Munger's proteges at Berkshire, Todd Combs, says he spends nearly 12 hours each day reading .
Don't miss: Warren Buffett: Here's how much college and grad school matter
show chapters Warren Buffett bought his first stock at 11 9:47 AM ET Thu, 13 July 2017 | 01:00 | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/15/berkshire-hathaways-charlie-munger-uses-this-productivity-tip.html |
May 8, 2018 / 5:27 PM / Updated an hour ago Golf - Spieth decides patience will be a virtue at TPC Sawgrass Andrew Both 3 Min Read
PONTE VEDRA BEACH, Florida (Reuters) - Jordan Spieth vowed on Tuesday to take a more patient approach at the Players Championship in a bid to end a run of three consecutive missed cuts at the TPC Sawgrass Stadium course. FILE PHOTO - Apr 26, 2018; Avondale, LA, USA; Jordan Spieth walks the fairway on the 18th hole during the first round of the Zurich Classic of New Orleans golf tournament at TPC Louisiana. Stephen Lew-USA TODAY Sports
After contending for victory in his first start here in 2014 - eventually finishing equal fourth - Spieth has failed dismally on a course where patience is often a virtue.
Usually a quick learner, the 24-year-old Texan has decided a less forceful approach, which has worked so well for him at Augusta National, is also worth trying here some 280 miles (450 km) south of the U.S. Masters venue.
“I haven’t approached it like I approach the major championship calibre golf course and this course and this championship are major calibre,” Spieth said ahead of Thursday’s first round.
“And therefore I need to go in with a different game plan and mindset and stick to it when I’m on the golf course.”
He said he would take his medicine after a bad drive instead of trying for a spectacular birdie on a course that has enough subtle and not-so-subtle humps and hollows to make even the world’s best players look silly at times.
“The patience side I seemed to display at Augusta is, ‘OK, I’m out of position, what’s the plan to make my par and move on?’” Spieth said.
“Out here the last couple of years I just haven’t had that patience.
“I love the course (but) this is not a place to go out and try and force birdies. That’s where I’ve gone the last few years that has got me into trouble.”
Spieth has won three majors — the 2015 Masters and U.S. Open plus last year’s British Open.
He held the world number one ranking for 26 weeks and is now fourth. Spieth has not troubled the trophy engraver since his victory at Royal Birkdale last July.
The American will play the first two rounds here with fellow 20-something major champions Rory McIlroy and Justin Thomas.
The large galleries are likely to amp up the atmosphere, but Spieth knows he needs to remain calm.
“I’ve kind of struggled a little this year with kind of rushing my thoughts,” he said.
“If I give myself a little bit of time and leeway, that’s been the best route in the past, so I’m trying to do that now.” Reporting by Andrew Both; Editing by Ken Ferris | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-golf-players-spieth/golf-spieth-decides-patience-will-be-a-virtue-at-tpc-sawgrass-idUKKBN1I92IH |
Jason LaVeris | FilmMagic Ryan Reynolds
These days, Ryan Reynolds is one of Hollywood's highest-paid stars thanks to his success as the foul-mouthed superhero star of Fox's "Deadpool" movies. But more than two decades ago, Reynolds was happy just to make $150 a day for his first professional acting gig.
"For me, I thought I was, like, a gajillionaire," Reynolds told Kelly Ripa and Michael Strahan in an interview that aired on ABC in 2016. "For $150 a day, it was like a dream come true."
Now, Reynolds is primed for a much bigger payday with Fox's "Deadpool 2" sequel hitting theaters on Friday.
Reynolds got $2 million in base salary for starring in the first "Deadpool" two year ago, while the actor also reportedly received several million dollars more in bonuses after that movie set box-office records. According to Forbes , Reynolds was one of Hollywood's 20 highest-paid actors last year, pulling in $21.5 million.
In the 2016 interview, Ripa and Strahan played a clip from what Reynolds said was his first-ever acting job, a teen soap opera called "Fifteen" that aired on Nickelodeon. ("Where did you find that?!" a surprised Reynolds said in response to the clip of his younger self, sporting a '90s bowl cut.) In 1991, Reynolds appeared in 13 episodes of the series as a 15-year-old named Billy Simpson.
"I remember we were paid 150 bucks per episode," Reynolds said, noting that the TV show was not his only source of employment at that time. "And I still had a paper route," he said. "So I would do my TV show and then I'd go home and do my paper route each day."
Reynolds also told Ripa and Strahan that he actually hated being a child actor and that he quit acting for a couple of years after the Nickelodeon show. (Reynold's next acting entry on IMDB is the 1993 movie "Ordinary Magic.") Taking a break from acting allowed a teenaged Reynolds to get what he describes as "some real-life experience." show chapters 1:51 PM ET Mon, 5 March 2018 | 01:06
"After that, I ended up working at a warehouse and I worked at a restaurant for two years," he said in the interview. "It's actually good, I'm glad I did that because I didn't end up like a child actor with some depraved drug addiction."
Of course, Reynolds eventually made acting his full-time career. He later landed a breakout role in the 2002 college comedy Van Wilder before playing memorable parts in other comedies such as 2005's "Waiting…" and 2009's "Adventureland."
In 2011, Reynolds received his first shot at leading a superhero movie in the Warner Bros. film "Green Lantern." But, after that movie flopped at the box office (grossing just under $220 million worldwide on a reported $200 million production budget, according to Box Office Mojo ), Reynolds' career stalled somewhat as Hollywood seemed reluctant to give the actor another shot at leading a big-budget production.
But 2016's "Deadpool" shot Reynolds to the top of the box-office charts — the movie grossed over $780 million worldwide, the most ever for an R-rated film — and back in the good graces of comic-book fans.
Now, the actor is doing well enough financially that he decided to invest some of his earnings by paying an undisclosed amount for an ownership stake in Oregon-based liquor company Aviation Gin in February.
Don't Miss: | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/18/deadpool-2-star-ryan-reynolds-first-acting-job-paid-150.html |
May 7, 2018 / 7:53 AM / in 2 hours UK's Johnson to Trump: Iran deal has weaknesses but don't dump it Reuters Staff 3 Min Read
LONDON (Reuters) - British Foreign Secretary Boris Johnson has appealed to U.S. President Donald Trump not to pull out of the Iran nuclear agreement, saying the deal had weaknesses but they could be addressed given time.
Trump has said that unless European allies rectify “flaws” in Tehran’s 2015 deal with world powers by May 12 he will refuse to extend U.S. sanctions relief for Iran.
Britain, France and Germany remain committed to the accord as is but to address U.S. concerns they want to open talks on Iran’s ballistic missile programme, its nuclear activities beyond 2025 - when key provisions of the deal start to expire - and its role in Middle East crises such as Syria and Yemen.
“It has weaknesses, certainly, but I am convinced they can be remedied,” Johnson wrote in an opinion piece for the New York Times. “Indeed at this moment Britain is working alongside the Trump administration and our French and German allies to ensure that they are.”
Johnson began a two-day visit to the United States on Sunday to try to convince Trump’s administration not to ditch the deal. He was due to meet Vice President Mike Pence and national security adviser John Bolton, although not the president himself.
Johnson said he saw no advantage in losing the “handcuffs” the deal imposed on Iran’s nuclear ambitions and only Tehran would benefit from exiting the deal.
French President Emmanuel Macron and German Chancellor Angela Merkel also have lobbied Trump not to withdraw from the deal the U.S. president has described as insane, with Macron warning it could lead to war.
“At this delicate juncture, it would be a mistake to walk away from the nuclear agreement and remove the restraints that it places on Iran,” Johnson wrote.
“I believe that keeping the deal’s constraints on Iran’s nuclear program will also help counter Tehran’s aggressive regional behaviour. I am sure of one thing: every available alternative is worse. The wisest course would be to improve the handcuffs rather than break them.”
In an interview with Fox News Channel’s “Fox and Friends,” a television program that Trump has regularly touted, Johnson said a regional arms race could be spurred if the nuclear deal was to end and Iran was to become a nuclear power.
“You’re going to have the Saudis wanting one, the Egyptians, the Emiratis,” he said. “It’s already a very, very dangerous state at the moment. There doesn’t seem to me at the moment to be a viable military solution.” Britain's Foreign Secretary Boris Johnson arrives to vote in local government elections in London, May 3, 2018. REUTERS/Hannah McKay Reporting by Michael Holden; Additional reporting by Makini Brice in Washington; Editing by William Maclean and Bill Trott | ashraq/financial-news-articles | https://www.reuters.com/article/us-iran-nuclear-johnson/uks-johnson-to-trump-iran-deal-has-weaknesses-but-dont-dump-it-idUSKBN1I80M3 |
BELGRADE, May 7 (Reuters) - Serbia’s Finance Minister Dusan Vujovic submitted a letter of resignation on Monday citing personal reasons, Serbian daily Blic reported on its web site citing unnamed sources.
Vujovic wrote to Prime Minister Ana Brnabic detailing his reasons for leaving, the paper said, adding that it would publish the letter in its print edition on Tuesday. (Reporting by Ivana Sekularac Editing by Matthew Mpoke Bigg)
Our | ashraq/financial-news-articles | https://www.reuters.com/article/serbia-minister/serbias-finance-minister-resigns-serbian-daily-blic-idUSL8N1SE6IP |
take off@
May 8 (Reuters) - Walmart Inc's online grocery delivery partnerships with ride-hailing services Uber and Lyft have ended, according to two sources, a potential setback for the retailer's ambitions to challenge Amazon.com Inc head-on with speedy delivery of groceries to people's homes.
The end of the Walmart partnerships, which has not been previously reported and was confirmed by Walmart and Uber, undercuts a vision the ride-hailing companies laid out: a service that can efficiently deliver anything on-demand, including people and cargo, at the touch of a smartphone app.
"It is incredibly hard to deliver people and packages together," said a source with a delivery company that works with Walmart and has direct knowledge of the matter. "They are two completely different business models."
The decision marks an abrupt end to a business relationship that Walmart and Uber announced with much fanfare less than two years ago. At Walmart's shareholders meeting in June 2016, CEO Doug McMillon touted the company's investments in technology and spoke about the partnerships in front of a cheering crowd of 14,000 employees. https://goo.gl/xJdN2e
Soon after, Uber's grocery delivery service was launched and expanded to four markets. As recently as March, just before Uber ended the arrangement, Walmart said Uber would be a partner in its plans to deliver groceries to more than 40 percent of the country.
"There was clearly some lack of communication there," said one of the sources with knowledge of the partnerships ending.
Walmart spokeswoman Molly Blakeman confirmed the end of the tie-ups when asked by Reuters, but did not detail the reasons behind the decision. She said Walmart will use other delivery service providers in the four markets where it had previously used Uber.
"Customers shouldn't notice any difference as the transition takes place," said Blakeman, who added that the partnership with Lyft never expanded beyond the initial test market of Denver.
Blakeman said the end of the partnerships will not impact Walmart's plans to scale grocery delivery as they are not tied to any single provider.
Uber put a stop to the grocery partnership when it informed Walmart in March that it would cease delivery operations on June 30, Uber spokeswoman Ellen Cohn told Reuters. The retailer was Uber's largest partner for its 'Rush' service, which delivered groceries as well as clothes, flowers and other goods.
Uber will shutter the entire Rush program at the end of next month.
"We are coordinating with Walmart to make this change as seamless as possible," Cohn said.
Lyft declined comment and deferred to Walmart on the issue.
For Walmart, which is the country's largest grocer and gets 56 percent revenue from groceries, the partnerships offered a fast solution to expand its online grocery offerings and improve overall revenue from internet shoppers.
For example, Walmart delivers groceries in China through a partnership with ecommerce company JD.com Inc, and in Japan through an alliance with Rakuten.
But the retailer was recently punished for its fourth-quarter online sales performance, which investors say is key to the company's future.
LAST-MILE COMPETITION
Last-mile delivery of packages is an intensely competitive business, with companies ranging from Amazon to United Parcel Services Inc, FedEx Corp and the U.S. Postal service, as well as startups like Instacart and Deliv, vying for a share.
Since the dot-com boom, companies have tried to crack the business model for online grocery delivery. The rush to solve the technological and logistical challenges has gotten even more frenzied since Amazon acquired high-end grocery chain Whole Foods Market Inc for $13.7 billion last year, a deal that has intensified competition in the sector.
Former Uber Chief Executive Travis Kalanick touted the idea of carrying a person in the backseat and a bag of groceries in the trunk as the ultimate cash-generating transportation service in a smart-phone era.
The delivery service marked the first time Uber publicly committed to a business outside of ride-hailing that was supposed to be meaningful to its bottom line and support its stratospheric valuation, although the private company never offered exact dollar projections.
But startup investors and experts in on-demand delivery say there is a much different set of logistical and economic challenges for moving around cargo than people, requiring a single company to be proficient in two distinct business models.
Uber's Cohn said Rush was "an experiment" and the company has turned its focus and resources to UberEats, a restaurant delivery service that in the fourth quarter last year generated $1.1 billion, or about 10 percent of Uber's overall revenue.
NEW PARTNERS
Walmart has added startups Deliv, Postmates and DoorDash to its list of delivery partners. These companies have the singular business of delivering goods, not people, and drivers have more experience safely transporting perishables.
It remains unclear if these startups will step in and replace Uber in the various markets they served.
A particular challenge for companies such as Postmates, however, will be offering rush delivery in suburban and rural areas, where most Walmart stores are located. Such startups have been most successful in urban centers, where there is a high density of customers and couriers can use bicycles or walk to deliver multiple packages in one trip.
"Density has been a challenge historically for all types of delivery companies, all the way back to the Pony Express," said Ben Narasin, a partner at venture capitalist firm NEA who has been critical of the on-demand delivery business model. "The reality is that the far-away drives will likely be subsidized." (Reporting by Nandita Bose in New York and Heather Somerville in San Francisco; Editing by Vanessa O'Connell and Edward Tobin) | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/08/reuters-america-exclusive-walmarts-grocery-delivery-partnerships-with-uber-lyft-fail-to-take-off.html |
(Updates with final prices, Temer comment) SAO PAULO, May 29 (Reuters) - Brazilian equities rose almost 1 percent on Tuesday as traders searched for bargains after four straight sessions in the red, but shares pared some of their earlier gains as the day wore on. Brazil's benchmark Bovespa equities index had fallen some 8 percent in the previous eight days and 4.5 percent on Monday alone as an drawn-out truckers' strike hit the economy, despite signs it was winding down. Among the hardest-hit stocks was state-run oil major Petroleo Brasileiro SA, known as Petrobras, which slumped nearly 15 percent on Monday as the government softened the company's pricing policy in a bid to win over truckers protesting high fuel prices. On Tuesday, traders saw opportunities across the board, with multiple banks arguing that some stocks have attained attractive valuations during the selloff, which as of Monday's close wiped out the Bovespa's gains for the year. Analysts at Banco Santander Brasil SA flagged discount retailer Lojas Americanas SA, energy company Equatorial Energia SA, bank Itau Unibanco Holding SA and tire manufacturer Iochpe Maxion SA as potential buys in a research note. Analysts at UBS AG said in a note some stocks in the transport sector had seen "an exaggerated sell-off," pointing to rental car company Localiza Rent A Car SA, airline Azul SA, auto part maker Tupy SA as well as Iochpe. The big index mover on the day was Petrobras, whose common stock closed up by 12.4 percent. The Bovespa rose by almost 2.5 percent in morning trade, but later pared some gains and closed up 0.95 percent. The real currency dipped 0.29 percent on Tuesday, outperforming several other regional currencies as the dollar strengthened. Traders described the political atmosphere as somewhat calmer than in previous sessions, with those who had been scooping up dollars shifting back into reais. Still, President Michel Temer told reporters in Sao Paulo there was no chance the truckers' protest would spark a military coup and topple his government. Among regional currency markets, Mexico's peso was the biggest loser, falling 1.40 percent against the dollar, as the renegotiation of the North American Free Trade Agreement proceeds in fits and starts. Key Latin American stock indexes and currencies at 0000 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1123.46 -1.19 -1.85 MSCI LatAm 2551.46 -0.52 -9.31 Brazil Bovespa 76071.97 0.95 -0.43 Mexico IPC 44647.37 -0.45 -9.54 Chile IPSA 5494.51 -1.36 -1.26 Chile IGPA 27830.22 -1.26 -0.54 Argentina MerVal 28389.22 -0.92 -5.58 Colombia IGBC 12205.72 1.51 7.34 Venezuela IBC 34695.33 6.73 2646.75 Currencies daily % YTD % change change Latest Brazil real 3.7392 -0.28 -11.39 Mexico peso 19.8280 -1.40 -0.65 Chile peso 629.80 -0.84 -2.41 Colombia peso 2906.15 -0.93 2.61 Peru sol 3.276 -0.03 -1.19 Argentina peso 24.84 -0.44 -25.12 (interbank) Argentina peso 25.80 0.00 -25.47 (parallel) (Reporting by Gram Slattery; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli and Lisa Shumaker)
| ashraq/financial-news-articles | https://www.reuters.com/article/emerging-markets-latam/emerging-markets-brazil-stocks-recover-somewhat-as-traders-hunt-for-bargains-idUSL2N1T01R7 |
Bank to be renamed Nano Banc
MURRIETA, Calif.--(BUSINESS WIRE)-- Nano Financial Holdings, Inc. (“Nano”), a new bank holding company, is pleased to announce the completion of its acquisition of Commerce Bank of Temecula Valley (“CBTV”) for $23.3 million. Effective May 1, 2018, the bank has been renamed Nano Banc. Headquartered in Murrieta, California, in the Temecula Valley, Nano Banc will provide commercial banking services throughout Southern California.
Each share of CBTV common stock not owned by Nano received $14.41 per share in the merger. Prior to the merger, holders of approximately 37% of CBTV shares were exchanged for shares of Class A common stock of Nano as part of the capitalization of Nano at an exchange ratio of 1.41 shares of Nano Class A common stock for each share of CBTV common stock.
At Nano Banc our mission is simple. Together, we will strive to deliver exceptional financial products and services that exceed expectations, to create strong community involvement, and to help our clients achieve financial peace of mind. Nano Banc’s Murrieta office will remain open and continue to provide the same level of personal service and dedication to its clients that they expect and deserve. Nano Banc is committed to supporting our employees and clients and being an integral part of the communities in which we do business.
The merger and name change have received the required regulatory approvals from the California Department of Business Oversight (DBO), the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank (FRB).
“We believe that there is an opportunity for banking to be better. Nano Banc is excited to provide premier commercial banking and exceptional service to Southern California business clients,” noted Mark Troncale, President of Nano Banc. “We are humbled by the number of exceptional bankers that have reached out to us, in Southern California, who are excited to leave the traditional banking culture behind. With our family-like company culture, focus on technology and our commitment to our employees, clients and the community, Nano Banc is positioned to serve.”
CBTV was advised by MJC Partners, LLC for financial advisory services, and legal advice from Breakwater Law Group LLP. Nano received financial advice from Cappello Global, LLC. Legal advice was provided by Manatt Phelps & Phillips, LLP.
Additional information about Nano Banc may be obtained at www.NanoBanc.com .
View source version on businesswire.com : https://www.businesswire.com/news/home/20180501006987/en/
Nano Banc
Mark Troncale
[email protected]
Source: Nano Financial Holdings, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/01/business-wire-acquisition-of-commerce-bank-of-temecula-valley-completed.html |
Revenue of €556 million up 28% at constant exchange rates with organic growth of 3.9% vs. 3.4% in FY17 Adjusted Corporate EBITDA excluding New Mobility at -€21 million versus -€6 million in Q1 2017, in line with management expectations Corporate Operating Free Cash Flow at -€76 million compared to -€27 million in Q1 2017, impacted by a phasing impact on non-fleet working capital, to be reversed in the course of 2018 Net income at €3 million versus €19 million in Q1 2017 Europcar fully confirms its guidance for 2018
SAINT-QUENTIN-EN-YVELINES, France--(BUSINESS WIRE)-- Regulatory News:
Note: this press release includes non-audited consolidated results under IFRS, as approved by the management board and reviewed by the supervisory board on May 14 th 2018
Europcar (Paris:EUCAR) today announced its results for the first quarter 2018.
For Caroline Parot, Chief Executive Officer of Europcar Group:
"Europcar Group is pursuing and accelerating its transformation as a global provider of mobility services. Our aim is to become the preferred mobility service company for our customers, offering an attractive alternative to vehicle ownership with a wide range of services ranging from vehicle rentals to chauffeur-services, as well as vehicle-sharing and peer-to-peer rental services.
During the first quarter of 2018, the Group delivered strong revenue growth of 28% as a result of solid momentum within our recently acquired companies, but also within our historical perimeter. Hence, the company’s organic revenue reached 3.9% in the first quarter of the year, mainly driven by the leisure and Low Cost segments.
The Group achieved significant progress in the execution of its transformation strategy and delivered results in several key areas. First, we are well on track in terms of managing the integration of recent acquisitions and delivering the expected synergies. Second, we have continued to improve our Net Promoter Score which reached a new high in the first quarter. Third, we have continued to make significant progress in the further digitalization of our customer experience and services through the completion of the roll out of a new CRM platform. And finally, we have taken action and delivered encouraging initial results in the UK.
Our adjusted Corporate EBITDA was impacted by (1) the integration of Goldcar, which as expected significantly increases the seasonality of the Group’s profitability generation, (2) a negative mix effect generated by the strong growth of the Low Cost and the Vans & Trucks business units, and (3) an increase in our digital transformational costs.
Nevertheless, our Q1 results are fully in line with our expectations at this stage and were factored in our 2018 outlook.
As a result, we confirm all of our targets for 2018 in terms of revenue, adjusted Corporate EBITDA and operating Free Cash Flow conversion. In that context of strong confidence in the Group’s future prospects, we have decided to launch a tactical share buyback programme, which is consistent with our cash allocation strategy, at a point in time that we find appropriate”.
All data in €m, except if mentioned 3M 2018 3M 2017 Change Change at
constant
currency*
Number of rental days (million) 17,1 12,9 32,6% Average Fleet (thousand) 260,0 192,1 35,4% Financial Utilization rate 73,1% 74,6% -1,5pt Total revenues 556 439 26,7% 28,5% Rental revenues 520 403 28,8% 30,8% Adjusted Corporate EBITDA (24) (6) n.m. n.m. Adjusted Corporate EBITDA Margin -4,4% -1,4% -3,0pt Last Twelve Months Adjusted Corporate EBITDA 246 252 -2,7% LTM Adjusted Corporate EBITDA Margin 9,7% 11,6% -1,9pt Last Twelve Months Adjusted Corporate EBITDA excluding New Mobility 262 253 3,8% LTM Adjusted Corporate EBITDA margin excluding NM 10,5% 11,7% -1,2pt Operating Income 40 41 Net profit/loss 3 19 n.m n.m Corporate Free Cash Flow (76) (27) Corporate Net Debt at end of the period 947 235 Proforma Corporate net debt / EBITDA ratio 3,1x 0,9x Q1 2018 highlights
Revenue
The Group generated revenues of €556 million in the first quarter of 2018, up 28% at constant exchange rates compared with the first quarter of 2017. On an organic basis, i.e. at constant exchange rates and constant perimeter, the Group revenues grew by 3.9%.
This significant increase in Group revenues was supported by the recent acquisitions made by the Group in the last months of 2017. As a result, the Group delivered solid growth across all of its major business units with Cars growing by 16%, Vans & Trucks growing by 62% and Low Cost growing by 279%. On an organic basis, our three major business units of Cars, Vans & Trucks and Low Cost grew by respectively 3.5%, 8.0% and 18%, showing that our increased focus on the Vans & Trucks and Low Cost segments is a significant generator of additional revenue growth for the Europcar Group.
These solid revenue numbers were delivered thanks to good momentum in both the leisure and corporate businesses and are once again proof of the strength and robustness of the Group balanced business model. As is traditionally the case during the first quarter of the year which represents a low point in the touristic season, revenues were more evenly split between the Group’s corporate customers and its leisure customers, representing each an even 50% of Group revenues.
The number of rental days increased to 17.1 million in Q1 2018, up 33% versus Q1 2017 with an organic growth of 4.6%. This growth in rental days was spread across all the key divisions with cars growing 15%, Vans & Trucks growing 50% and Low Cost growing 207%. Revenue per rental day (RPD) decreased by 1.4% at Group level, mostly impacted by the recent acquisitions. On an organic basis, RPD was steady in Q1 2018 versus last year as a result of (1) a stable pricing environment in Cars during the quarter with RPD up 0.3%, (2) a 4.4% decline in the
Vans & Trucks business unit which continues to reflect the Group’s strategic focus on expanding its corporate business, and (3) a positive 9.9% increase in RPD in Low Cost reflecting a good ancillary product sales momentum.
Adjusted Corporate EBITDA 1
Excluding the impact of New Mobility, Q1 2018 Adjusted Corporate EBITDA declined significantly to -€21.4 million compared to -€6.3 million in Q1 2017 at constant exchange rate.
This decrease has three major causes:
(1) the negative impact of the Goldcar acquisition, which as expected adds more seasonality to the Group’s overall profitability generation,
(2) the negative mix impact generated by the strong organic growth of our existing Low Cost and Vans & Trucks business units,
(3) the increase in our digital & IT spending which is key to the success of the Group’s transformation.
It is important to note that this decline in Adjusted Corporate EBITDA was expected and is fully factored within the Group’s expectations for FY 2018.
Corporate Operating Free Cash Flow
Q1 2018 Corporate Operating Free Cash Flow was -€76 million compared to -€27 million in Q1 2017 impacted by a lower level of adjusted Corporate EBITDA as well as a deterioration in non-fleet working capital compared to the first quarter of 2017.
This change in non-fleet working capital was caused by a technical timing delay in Italy and a weak performance in terms of cash collection in the UK to be recovered. We expect this negative trend to be reversed during the rest of the year.
Net income
In Q1 2018, the Group posted a net profit of €2.5 million, compared to a net profit of €18.6 million in Q1 2017. This decline was caused by a lower level of adjusted Corporate EBITDA, a higher level of non-fleet D&A and an increase in interest costs on corporate bonds as a result of the financing of the Goldcar acquisition. Non-recurring items contributed positively up to €60m (vs €40m in Q1 2017), on the back of a €68m capital gain on the disposal of the Group’s 25% stake in car2go.
Net debt
Corporate net debt increased to reach €947 million as of March 31, 2018 (vs €827 million as of December 31, 2017) mainly as a result of the increased seasonality of the business during the first quarter of the year.
The Group’s pro forma corporate net leverage reached 3.1x at the end of the first quarter of 2018. When including the proceeds for the sale of the Group’s 25% stake in car2go, the Group’s pro forma corporate net leverage reached 2.9x at the end of the first quarter of 2018.
The fleet net debt was €3,953 million as of March 31, 2018 vs €4,061 million as of December 31, 2017.
Sale of 25% stake in car2go
On February 28, 2018, the Europcar Group signed an agreement with Daimler Mobility Services on the sale of its 25% stake in car2go Europe GmbH. The completion of the sale generated a pre-tax gain of 68 million euros which has been accounted for in the company’s Q1 results.
Launch of share buyback programme (post-closing event)
Europcar has decided to implement a share buyback programme as authorized by the Combined General Meeting of Shareholders on May 10th 2017.
This mandate, signed on May 16th, 2018, targets a maximum amount of shares not to exceed a value of 30 million euros, representing approximately 2.1% of the share capital.
The repurchases of shares will occur over a period of six months starting on May 17 th 2018.
2018 guidance confirmed
Europcar confirms its four financial targets for 2018 compared to 2017:
- Accelerating organic revenue growth i.e. above 3%
- Adjusted corporate EBITDA (excluding New Mobility) above 350 million euros
- Corporate operating free cash flow conversion rate above 50%
- Dividend payout ratio above 30%
Conference Call with Analysts and Investors
Caroline Parot, Group Chief Executive Officer and Luc Peligry, Group Chief Financial Officer, will host a conference call in English today at 6.30 p.m. Paris time (CEST).
You can follow this conference call live via webcast .
A replay will also be available for a period of one year. All documents relating to this publication will be available online on Europcar’s investor website .
Investor Calendar
Annual General Meeting 17 May 2018 H1 2018 Results 25 July 2018 Q3 2018 Results 8 November 2018 About Europcar Group
Europcar Group is a major player in mobility markets and is listed on Euronext Paris. The Group's mission is to be an attractive alternative to car ownership by providing a wide range of mobility solutions: car rentals, Vans & Trucks, chauffeur service, car-sharing or peer-to-peer. Customer satisfaction is at the heart of the group's mission and all of its employees and this commitment fuels the continuous development of new services.
The group operates through multi brands meeting every customer specific needs: Europcar® - the European Leader in vehicle rental services, Goldcar® - Europe’s largest low-cost car rental company, InterRent® - value for money brand targeting leisure customers and Ubeeqo® - a European company specializing in fleet and mobility solutions for both the business and the end-customers market.
The Group delivers its mobility solutions worldwide through an extensive network in 133 countries (including 16 wholly-owned subsidiaries in Europe and 2 in Australia and New Zealand, franchisees and partners).
Forward-looking statements
This press release includes forward-looking statements based on current beliefs and expectations about future events. Such forward-looking statements may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negative of these terms and similar expressions. Forward looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about Europcar Groupe and its subsidiaries and investments, trends in their business, future capital expenditures and acquisitions, developments in respect of contingent liabilities, changes in economic conditions globally or in Europcar Groupe’s principal markets, competitive conditions in the market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn materially affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this press release is made as of the date of this press release. Other than as required by applicable law, Europcar Groupe does not undertake to revise or update any forward-looking statements in light of new information or future events.
The results and the Group's performance may also be affected by various risks and uncertainties, including without limitation, risks identified in the "Risk factors" of the Annual Registration Document registered by the Autorité des marchés financiers on April 20, 2018 under the number R. 18-020 and also available on the Group's website: www.europcar-group.com .
This press release does not contain or constitute an offer or invitation to purchase any securities in France, the United States or any other jurisdiction.
Further details on our website:
finance.europcar-group.com
Appendix 1 – Management Profit and Loss
Q1 2018 Q1 2017 All data in €m 3M 2018 3M 2017 556,4 439,3 Total revenue 556,4 439,3 (151,3) (106,8) Fleet holding costs, excluding estimated interest included in operating leases (151,3) (106,8) (204,4) (166,3) Fleet operating, rental and revenue related costs (204,4) (166,3) (122,8) (90,5) Personnel costs (122,8) (90,5) (77,1) (58,7) Network and head office overhead (77,1) (58,7) 1,1 0,5 Other income and expense 1,1 0,5 (198,8) (148,7) Personnel costs, network and head office overhead, IT and other (198,8) (148,7) (14,6) (13,7) Net fleet financing expense (14,6) (13,7) (11,8) (9,9) Estimated interest included in operating leases (11,8) (9,9) (26,4) (23,6) Fleet financing expenses, including estimated interest included in operating leases (26,4) (23,6) (24,5) (6,2) Adjusted Corporate EBITDA (24,5) (6,2) -4,4% -1,4% Margin -4,4% -1,4% (9,5) (6,6) Depreciation – excluding vehicle fleet (9,5) (6,6) 59,7 39,9 Other operating income and expenses 59,7 39,9 (23,0) (15,5) Other financing income and expense not related to the fleet (23,0) (15,5) 2,7 11,6 Profit/loss before tax 2,7 11,6 1,0 10,0 Income tax 1,0 10,0 (1,1) (3,0) Share of profit/(loss) of associates (1,1) (3,0) 2,5 18,6 Net profit/(loss) 2,5 18,6 Appendix 2 – IFRS Income statement
In € thousands First-quarter
2018
First-quarter
2017
Revenue 556 398 439 291 Fleet holding costs (163 092) (116 703) Fleet operating, rental and revenue related costs (204 432) (166 335) Personnel costs (122 798) (90 537) Network and head office overhead costs (77 064) (58 675) Depreciation, amortization and impairment expense (9 539) (6 595) Other income 1 092 466 Current operating income (19 435) 912 Other non-recurring income and expenses 59 697 39 864 Operating income 40 262 40 776 Gross financing costs (30 590) (22 415) Other financial expenses (7 570) (7 324) Other financial income 545 592 Net financing costs (37 615) (29 147) Profit/(loss) before tax 2 647 11 629 Income tax benefit/(expense) 985 9 966 Share of profit of Associates (1 131) (3 037) Net profit/(loss) for the period 2 501 18 558 Attributable to: Owners of ECG 2 513 18 609 Non-controlling interests (12) (51) Basic Earnings per share attributable to owners of ECG (in €) 0,016 0,129 Diluted Earnings per share attributable to owners of ECG (in €) 0,016 0,129 Appendix 3 – Reconciliation
Q1 2018 Q1 2017 All data in €m 3M 2018 3M 2017 124,8 100,2 Adjusted Consolidated EBITDA 124,8 100,2 (69,0) (39,2) Fleet depreciation IFRS (69,0) (39,2) (53,9) (43,6) Fleet depreciation included in operating lease rents (53,9) (43,6) (122,9) (82,8) Total Fleet depreciation (122,9) (82,8) (11,8) (9,9) Interest expense related to fleet operating leases (estimated) (11,8) (9,9) (14,6) (13,7) Net fleet financing expenses (14,6) (13,7) (26,4) (23,6) Total Fleet financing (26,4) (23,6) (24,5) (6,2) Adjusted Corporate EBITDA (24,5) (6,2) (9,5) (6,6) Amortization, depreciation and impairment expense (9,5) (6,6) 14,6 13,7 Reversal of Net fleet financing expenses 14,6 13,7 11,8 9,9 Reversal of Interest expense related to fleet operating leases (estimated) 11,8 9,9 (7,6) 10,8 Adjusted recurring operating income (7,6) 10,8 (11,8) (9,9) Interest expense related to fleet operating leases (estimated) (11,8) (9,9)
(19,4) 0,9 Recurring operating income (19,4) 0,9 Appendix 4 – Balance sheet
In € thousands At At March 31, Dec. 31, 2018 2017 Assets Goodwill 1 138 381 1 138 793 Intangible assets 814 554 809 960 Property, plant and equipment 112 838 114 855 Equity-accounted investments 1 458 4 036 Other non-current financial assets 60 951 58 602 Financial instruments non-current 492 226 Deferred tax assets 60 851 56 757 Total non-current assets 2 189 525 2 183 229 Inventory 25 650 24 330 Rental fleet recorded on the balance sheet 2 445 212 2 342 605 Rental fleet and related receivables 641 839 700 117 Trade and other receivables 545 675 456 688 Current financial assets 27 086 32 762 Current tax assets 59 877 42 760 Restricted cash 98 087 104 818 Cash and cash equivalents 218 579 240 792 Total current assets 4 062 005 3 944 872 Total assets 6 251 530 6 128 101 Equity Share capital 161 031 161 031 Share premium 745 748 745 748 Reserves (107 190) (106 756) Retained earnings (losses) 39 420 37 209 Total equity attributable to the owners of ECG 839 009 837 232 Non-controlling interests 751 763 Total equity 839 760 837 995 Liabilities Financial liabilities 1 570 604 1 570 141 Non-current financial instruments 35 710 37 122 Employee benefit liabilities 134 163 133 951 Non-current provisions 9 149 8 680 Deferred tax liabilities 129 569 128 803 Other non-current liabilities 262 276 Total non-current liabilities 1 879 457 1 878 973 Current portion of financial liabilities 1 858 930 1 950 262 Employee benefits 3 149 3 149 Current provisions 213 779 219 455 Current tax liabilities 47 870 31 566 Rental fleet related payables 833 537 604 196 Trade payables and other liabilities 575 048 602 505 Total current liabilities 3 532 313 3 411 133 Total liabilities 5 411 770 5 290 106 Total equity and liabilities 6 251 530 6 128 101 Appendix 5 – IFRS Cash Flow
In € thousands First-quarter
2018
First-quarter
2017
Profit/(loss) before tax 2 647 11 629 Reversal of the following items Depreciation and impairment expenses on property, plant and equipment 4 644 3 834 Amortization and impairment expenses on intangible assets 4 325 2 762 Changes in provisions and employee benefits (1) (6 459) (55 590) Recognition of share-based payments - (192) Profit/(loss) on disposal of assets (2) (68 513) (30) Other non-cash items - 1 996 Total net interest costs 32 572 24 321 Amortization of transaction costs 3 184 1 806 Net financing costs 35 756 26 127 Net cash from operations before changes in working capital (27 600) (9 464) Changes to the rental fleet recorded on the balance sheet (3) (100 311) (63 040) Changes in fleet working capital 265 160 238 980 Changes in non-fleet working capital (21 493) 14 952 Cash generated from operations 115 756 181 428 Income taxes received/paid (4) (3 323) (6 441) Net interest paid (13 522) (18 507) Net cash generated from (used by) operating activities 98 911 156 480 Acquisition of intangible assets and property, plant and equipment (5) (13 218) (12 715) Proceeds from disposal of intangible assets and property, plant and equipment 1 737 896 Other investments and loans 2 853 (3 110) Net cash used by investing activities (8 628) (14 929) Capital increase (net of related expenses) - 21 787 (Purchases) / Sales of treasury shares net (86) (549) Change in other borrowings (6) (117 435) (188 084) Payment of transaction costs (7) (4 066) - Net cash generated from (used by) financing activities (121 587) (166 846) Cash and cash equivalent at beginning of period 313 251 248 507 Net increase/(decrease) in cash and cash equivalents after effect of foreign exchange differences (31 304) (25 295) Changes in scope - 11 635 Effect of foreign exchange differences (1 185) 799 Cash and cash equivalents at end of period 280 762 235 646 (1) Of which in 2018, Buyback provision for (€7 million). Of which in 2017, the reversal of provision for disputes with French Competition Authority for €45 million.
(2) Mainly related to profit on the sale of Car2Go.
(3) Given the average holding period for the fleet, the Group reports vehicles as current assets at the beginning of the contract. Their change from period to period is therefore similar to operating flows generated by the activity.
(4) The decrease of tax cash-out in Q1 2018 versus Q1 2017 is mainly due to prior year’s regularizations in UK in 2018.
(5) Mainly related to IT cost capitalized (€7.1m) ; other & technical equipment for (€6.2m).
(6) Related to drawing variation under Senior Notes (SARF) and Other borrowings dedicated to fleet financing.
(7) In 2018, transaction costs payment of which (€0.2m) for revolving facilities Upfront fees, (€1.3m) for bridge facilities and (€2.6m) for other facilities.
Appendix 6 - Debt
€million Pricing Maturity Mar. 31, 2018 Dec. 31, 2017 High Yield Senior Notes (a) 4.125% 2024 600 600 High Yield Senior Notes (a) 5.75% 2022 600 600 Senior Revolving Facility (€500m) E+225bps (b) 2022 230 160 FCT Junior Notes, accrued interest not yet due, capitalized financing costs and other (224) (270) Gross Corporate debt 1 207 1 090 Short-term Investments and Cash in operating and holding entities (259) (263) CORPORATE NET DEBT (A) 947 827 €million Pricing Maturity Mar. 31, 2018 Dec. 31, 2017 High Yield EC Finance Notes (a) 2.375% 2022 350 350 Senior asset revolving facility (€1.3bn SARF) (c) E+150bps 2020 640 739 FCT Junior Notes, accrued interest, financing capitalized costs and other 228 260 UK, Australia and other fleet financing facilities Various (d) 1 003 1 081 Gross financial fleet debt 2 222 2 430 Cash held in fleet financing entities and Short-term fleet investments -115 -143 Fleet net debt in Balance sheet 2 108 2 287 Debt equivalent of fleet operating leases - OFF Balance Sheet (e) 1 845 1 774 TOTAL FLEET NET DEBT (incl. op leases) (B) 3 953 4 061 TOTAL NET DEBT (A)+(B) 4 900 4 888 (a) These bonds are listed on the Luxembourg Stock Exchange. The corresponding prospectus is available on Luxembourg Stock Exchange website ( http://www.bourse.lu/Accueil.jsp )
(b) Depending on the leverage ratio
(c) Swap instruments covering the SARF structure have been extended to 2020
(d) UK fleet financing maturing in 2018 with one year extension option
(e) Corresponds to the net book value of applicable vehicles, which is calculated on the basis of the purchase price and depreciation rates of corresponding vehicles (based on contracts with manufacturers).
View source version on businesswire.com : https://www.businesswire.com/news/home/20180516006034/en/
Europcar / Press relations
Valérie Sauteret / Marie-Anne Bénardais
+33 1 30 44 98 82
[email protected]
or
Europcar / Investor relations
Olivier Gernandt
+33 1 30 44 91 44
[email protected]
or
Elan Edelman
+33 1 86 21 51 56 / +33 1 86 21 50 38
[email protected]
Source: Europcar | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/16/business-wire-q1-2018-results-europcar-starts-the-year-with-accelerating-revenue-growth-in-line-with-the-groupas-strategic-ambitions.html |
May 14, 2018 / 1:49 PM / Updated an hour ago CBS sues controlling shareholder Redstone to stop Viacom merger plan Jessica Toonkel 3 Min Read
(Reuters) - CBS Corp ( CBS.N ) on Monday filed a lawsuit to stop controlling shareholder Shari Redstone continuing with her plan to merge it with Viacom Inc ( VIAB.O ), saying such a deal would harm its shareholders. FILE PHOTO: The CBS television network logo is seen outside their offices on 6th avenue in New York, U.S. on May 19, 2016. REUTERS/Shannon Stapleton/File Photo
The New York media company has also asked the Delaware Chancery Court to block Redstone from interfering at a special meeting of its board on Thursday called to consider the merger.
News of the lawsuit sent CBS shares up nearly 3 percent and Viacom shares down more than 6 percent. Analysts have said a merger would benefit Viacom more than the stronger CBS.
“Ms. Redstone has acted to undermine the (CBS) management team, including, without board authority, talking to potential CEO replacements, deriding the chief operating officer and threatening to change the board,” the lawsuit said.
A representative for Shari Redstone was not immediately available to comment.
At its meeting on Thursday, CBS’s special committee of directors intends to recommend a stock dividend that would dilute National Amusements Inc’s (NAI) voting power to 17 percent from 80 percent.
NAI is a privately held movie theatre company owned by Shari and her father Sumner Redstone that controls a majority of the voting shares in both CBS and Viacom.
Sumner Redstone split his media empire into two pieces 12 years ago, creating CBS and Viacom in their present form. Shari Redstone has been pushing plans to reunite them for the last two years.
CBS and Viacom formed special committees to explore the merger in February. Since then, the two sides have argued over price and who will lead the combined company.
The two companies previously explored a merger in 2016 at the urging of Shari and Sumner Redstone, who believe a deal is needed for the two smaller media companies to compete with growing internet powers Netflix Inc ( NFLX.O ) and Amazon.com ( AMZN.O ) pushing deeper into the media business.
CBS said in its lawsuit that Shari Redstone had taken actions over the past two years that have led the special committee of the board considering the merger to conclude that she presents a significant threat to the company and its stockholders.
Its proposed dividend would not dilute the economic interests of any CBS stockholder, but would help the company to operate as an independent, non-controlled company and fully evaluate strategic alternatives, the company said.
CBS’s lawsuit said Redstone rejected an approach by an unnamed potential acquirer of CBS, citing that as another reason her interests are not aligned with other CBS shareholders.
The undisclosed party is Verizon Communications Inc ( VZ.N ), according to two sources familiar with the situation who requested anonymity to disclose confidential details. A call to Verizon was not immediately returned. Reporting by Arjun Panchadar and Supantha Mukherjee in Bengaluru, Jessica Toonkel and Greg Roumeliotis in New York; editing by Patrick Graham and Bill Rigby | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-viacom-cbs/cbs-sues-controlling-shareholder-over-proposed-viacom-deal-idUKKCN1IF1TF |
LONDON (Thomson Reuters Foundation) - Top Silicon Valley executives will help to grow the businesses of 21 entrepreneurs helping migrants, refugees and trafficking survivors, California’s oldest university said on Tuesday, as companies with a social mission increase around the world.
The 21 social enterprises selected to join Santa Clara University’s six-month online program include a coffee company that uses its profits to educate South Sudanese refugees and a health insurance company for unregistered migrants in Thailand.
“We are inspired by the geographical diversity of over 100 applicants and the imaginative solutions they have developed to restore dignity to the most marginalized,” said Thane Kreiner, director of the center that runs the program, in a statement.
Entrepreneurs using businesses to help tackle social problems are emerging across the globe - improving communities, breaking the cycle of re-offending, solving education issues and reducing isolation amongst elderly.
The Miller Center for Social Entrepreneurship at Santa Clara University says it is the world’s largest social enterprise accelerator, having supported almost 900 young companies with the connections and knowledge they need to succeed.
It is the first time that the center, some 80 km south of San Francisco, has run a program to boost the business skills, investment readiness and social impact of organizations that serve migrants, refugees and human trafficking survivors.
Mentors include executives from Google, LinkedIn and Paypal.
“Given the Syrian war and impact of climate change on poor communities around the planet, a lot of our mentors are interested in this cohort because they realize there are big problems that are growing in size,” said Kreiner.
Worldwide, 258 million people are international migrants, according to the United Nations (U.N.), about 22 million of whom are refugees.
Manyang Reath spent 13 years in refugee camps in Ethiopia after fleeing civil war in Sudan. Now 29 years old and based in Washington D.C., he started 734 Coffee in 2015, using the profits to pay for the education of displaced children like him.
The coffee comes from Gambella in Ethiopia where more than 400,000 South Sudanese refugees live in camps, the U.N. says. Gambella’s geographical coordinates - 7˚N 34˚E - give the coffee its name.
Reath has gone from selling 10 bags a month to about 4,000 bags currently and is hoping the business advice will help him create new markets for his coffee and raise awareness.
“There are people who want to do good for refugees but they don’t know what to do,” he told the Thomson Reuters Foundation.
“Maybe if they see all these projects, it will shed light on this issue.”
Reporting by Lee Mannion @leemannion, Editing Katy Migiro. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women's rights, trafficking, property rights, climate change and resilience. Visit news.trust.org
Our Standards: The Thomson Reuters Trust Principles. | ashraq/financial-news-articles | https://www.reuters.com/article/us-usa-university-migrants/california-executives-mentor-businesses-helping-migrants-and-slaves-idUSKCN1IG2JQ |
NEW YORK, May 08, 2018 (GLOBE NEWSWIRE) -- Garrison Capital Inc., a business development company (Nasdaq:GARS), today announced its financial results for the first quarter and three months ended March 31, 2018. Net investment income for the first quarter was $4.9 million, or $0.31 per share and the net increase in net assets resulting from operations was $2.0 million, or $0.13 per share.
Garrison Capital issued a full detailed presentation of its first quarter 2018 results, which can be viewed at www.garrisoncapitalbdc.com .
Earnings Conference Call
We will host an earnings conference call at 10:00 a.m. (Eastern Time) on Thursday, May 10, 2018 to discuss our first quarter financial results. All interested parties are welcome to participate. The conference call can be accessed at the following dial-in number: (888) 588-0798. International callers can access the conference call by dialing (706) 634-6548. All participants will need to enter the Conference ID 8089757 . All participants are asked to dial-in to the conference call 10-15 minutes prior to the call so that their name and company information can be collected.
During the earnings conference call, the Company intends to refer to the Q1 2018 Garrison Capital Inc. Earnings Presentation, which will be available prior to the conference call on the Investor Relations section of the Company’s website ( www.garrisoncapitalbdc.com ) under Webcasts & Presentations.
An archived replay of the call will be available within two hours after the call until 11:59 p.m. (Eastern Time) on June 10, 2018. To hear the replay, please dial (855) 859-2056. International callers, please dial (404) 537-3406. For all replays, please enter the Conference ID 8089757.
ABOUT GARRISON CAPITAL INC.
Garrison Capital Inc. is a business development company that primarily invests in loans to U.S. based middle-market companies. The Company’s investment activities are managed by its investment adviser, Garrison Capital Advisers LLC, an affiliate of Garrison Investment Group LP (“Garrison Investment Group”). For more information, go to http://www.garrisoncapitalbdc.com .
ABOUT GARRISON INVESTMENT GROUP
Garrison Investment Group is an alternative investment and asset management firm founded in March 2007. Garrison Investment Group invests opportunistically in the debt of middle-market companies, primarily in the areas of corporate finance, real estate finance and structured finance. For more information, go to http://www.garrisoninv.com .
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact:
Garrison Capital Inc.
Brian Chase
www.garrisoncapitalbdc.com
(212) 372-9590
Source:Garrison Capital Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/08/globe-newswire-garrison-capital-inc-declares-second-quarter-2018-distribution-of-0-point-28-per-share-and-announces-first-quarter-2018.html |
PORTLAND, Maine, May 07, 2018 (GLOBE NEWSWIRE) -- ImmuCell Corporation (Nasdaq:ICCC) (“ImmuCell” or the “Company”), a growing animal health company that develops, manufactures and markets scientifically-proven and practical products that improve the health and productivity of dairy and beef cattle, will report financial results for the first quarter of 2018 after the market closes on Monday, May 14, 2018. The Company has scheduled a conference call that same day, Monday, May 14, 2018, at 4:30 PM ET to review the results.
Interested parties can access the conference call by dialing (844) 855-9502 (toll free) or (412) 317-5499 (international). A teleconference replay of the call will be available for six days at (877) 344-7529 (toll free) or (412) 317-0088 (international), utilizing confirmation # 10120232.
About ImmuCell:
ImmuCell Corporation's (Nasdaq:ICCC) purpose is to create scientifically-proven and practical products that improve the health and productivity of dairy and beef cattle. ImmuCell has developed products that provide significant, immediate immunity to newborn dairy and beef livestock. The Company is developing a novel treatment for mastitis, the most significant cause of economic loss to the dairy industry. Press releases and other information about the Company are available at: http://www.immucell.com .
Safe Harbor Statement:
This Press Release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to: projections of future financial performance; projections about depreciation expense and its impact on income for book and tax return purposes; the scope and timing of ongoing and future product development work and commercialization of our products; future costs of product development efforts; the estimated prevalence rate of subclinical mastitis; the expected efficacy of new products; estimates about the market size for our products; future market share of and revenue generated by current products and products still in development; our ability to increase production output and reduce costs of goods sold associated with our new product, Tri-Shield ™ First Defense ® ; the future adequacy of our own manufacturing facilities or those of third parties with which we have contractual relationships to meet demand for our products on a timely basis; the efficiency and effectiveness of our manufacturing processes and related technical issues; estimates about our production capacity; the future adequacy of our working capital and the availability and cost of third party financing; the timing and outcome of pending or anticipated applications for regulatory approvals; future regulatory requirements relating to our products; future expense ratios and margins; future compliance with bank debt covenants; future cost of our variable rate interest expense on most of our bank debt; costs associated with sustaining compliance with current Good Manufacturing Practice (cGMP) regulations in our current operations and attaining such compliance for the facility to produce the Drug Substance; factors that may affect the dairy and beef industries and future demand for our products; implementation of international trade tariffs that could reduce the export of dairy products weakening the price received by our customers for their product; our effectiveness in competing against competitors within both our existing and our anticipated product markets; the cost-effectiveness of additional sales and marketing expenditures and resources; anticipated changes in our manufacturing capabilities and efficiencies; anticipated competitive and market conditions; and any other statements that are not historical facts. Forward-looking statements can be identified by the use of words such as “expects”, “may”, “anticipates”, “aims”, “intends”, “would”, “could”, “should”, “will”, “plans”, “believes”, “estimates”, “targets”, “projects”, “forecasts” and similar words and expressions. In addition, there can be no assurance that future developments affecting us will be those that we anticipate. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of our products, competition within our anticipated product markets, customer acceptance of our new and existing products, product performance, alignment between our manufacturing resources and product demand, the uncertainties associated with product development and Drug Substance manufacturing, our potential reliance upon third parties for financial support, products and services, changes in laws and regulations, decision making by regulatory authorities, possible dilutive impacts on existing stockholders from any equity financing transactions in which we may engage, currency values and fluctuations and other risks detailed from time to time in filings we make with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K and our Current Reports on Form 8-K. Such statements are based on our current expectations, but actual results may differ materially due to various factors, including the risk factors discussed above.
Contact:
Michael F. Brigham, President and CEO
ImmuCell Corporation
(207) 878-2770
Joe Diaz, Robert Blum and Joe Dorame
Lytham Partners, LLC
(602) 889-9700
[email protected]
Source:ImmuCell Corporation | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/07/globe-newswire-immucell-to-announce-financial-results-forafirst-quarter-of-2018.html |
May 1 (Reuters) - Huron Consulting Group Inc:
* HURON ANNOUNCES FIRST QUARTER 2018 FINANCIAL RESULTS AND AFFIRMS 2018 GUIDANCE
* Q1 ADJUSTED NON-GAAP EARNINGS PER SHARE $0.19 FROM CONTINUING OPERATIONS
* Q1 LOSS PER SHARE $0.15 FROM CONTINUING OPERATIONS * Q1 REVENUE $193.7 MILLION VERSUS I/B/E/S VIEW $181.6 MILLION
* SEES FY 2018 ADJUSTED NON-GAAP EARNINGS PER SHARE $2.10 TO $2.40
* Q1 ADJUSTED EARNINGS PER SHARE $0.19 * Q1 EARNINGS PER SHARE VIEW $0.48 — THOMSON REUTERS I/B/E/S Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-huron-reports-q1-loss-per-share-01/brief-huron-reports-q1-loss-per-share-0-15-from-continuing-operations-idUSASC09YQ9 |
May 12, 2018 / 10:05 AM / Updated 3 hours ago Jailed Malaysian leader Anwar to be released on Tuesday - daughter Reuters Staff 1 Min Read
KUALA LUMPUR (Reuters) - Jailed Malaysian leader Anwar Ibrahim will be released on Tuesday, the veteran politician’s daughter Nurul Izzah told Reuters on Saturday. FILE PHOTO - Malaysian opposition leader Anwar Ibrahim speaks to Reuters at his office in Petaling Jaya outside Kuala Lumpur August 4, 2008. REUTERS/Bazuki Muhammad/File Photo
Newly elected Prime Minister Mahathir Mohamad said this week that all efforts were being made to release Anwar, a former foe, immediately and secure a full royal pardon from the country’s monarch.
“Yes,” Nurul said in a text message when asked to confirm whether her father was being released on Tuesday.
Anwar was jailed in 2015 for charges of sodomy, a charge he and his supporters say was politically motivated.
Nurul added the pardon from the monarch is being sought on the grounds of “miscarriage of justice”. Reporting by Joseph Sipalan; writing by Praveen Menon; Editing by Raju Gopalakrishnan | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-malaysia-election-anwar/jailed-malaysian-leader-anwar-to-be-released-on-tuesday-daughter-idUKKCN1ID09F |
TULSA, Okla., May 3, 2018 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) today reported net income of $210.9 million for first quarter 2018 compared to $222.7 million for first quarter 2017.
Distributable cash flow (DCF), a non-generally accepted accounting principles (non-GAAP) financial measure that represents the amount of cash generated during the period that is available to pay distributions, was $258.9 million for first quarter 2018 compared to $227.6 million for first quarter 2017. First-quarter 2018 net income and DCF were negatively impacted by a $16.0 million expense related to a one-time cumulative adjustment to correct an error made by the partnership's third-party actuary for pension valuation estimates, dating back to 2010.
Diluted net income per limited partner unit was 92 cents in first quarter 2018 and 98 cents in first quarter 2017. Diluted net income per unit excluding mark-to-market (MTM) commodity-related pricing adjustments, a non-GAAP financial measure, was 98 cents for first quarter 2018, or $1.05 excluding the 7-cent unfavorable impact of the one-time pension correction. These results were higher than the 95-cent guidance provided by management in early February primarily due to stronger-than-expected refined products and crude oil shipments on the partnership's pipeline systems.
"Magellan kicked off the year 2018 with solid financial results and strong demand for our fee-based transportation and terminals services," said Michael Mears, chief executive officer. "Our outlook for the remainder of 2018 has strengthened based on favorable market conditions for refined products and crude oil pipeline shipments combined with an improved commodity pricing environment. Looking beyond the current year, we remain optimistic about a number of potential expansion projects in advanced stages of review that could further benefit Magellan's future results."
An analysis by segment comparing first quarter 2018 to first quarter 2017 is provided below based on operating margin, a non-GAAP financial measure that reflects operating profit before general and administrative (G&A) expense and depreciation and amortization:
Refined products. Refined products operating margin was $211.4 million, a decrease of $9.9 million primarily related to the impact of MTM adjustments for exchange-traded futures contracts used to hedge the partnership's commodity-related activities. Otherwise, financial results from this segment's fee-based activities increased between periods.
Transportation and terminals revenue increased $18.5 million between periods driven by strong demand for refined products in large part due to higher distillate demand in crude oil production regions served by the partnership. The current period also benefited from higher storage and other ancillary service fees along Magellan's refined products pipeline system associated with increased customer activity.
Operating expenses increased slightly as higher personnel costs from the pension correction and higher power costs associated with moving incremental volume were largely offset by lower environmental accruals and lower asset retirements during the current period.
Product margin (a non-GAAP measure defined as product sales revenue less cost of product sales) decreased $30.0 million between periods due in part to the recognition of lower unrealized gains on open futures contracts used to economically hedge the partnership's commodity-related activities during the current period. Details of these MTM commodity-related and other inventory adjustments can be found on the Distributable Cash Flow Reconciliation to Net Income schedule that accompanies this news release. The partnership's cash product margin, which reflects only transactions that settled during the quarter, also declined between periods due to lower butane blending volumes and higher butane costs.
Crude oil. Crude oil operating margin was $127.7 million, an increase of $25.7 million. Transportation and terminals revenue increased $21.2 million primarily due to contributions from the partnership's recently-constructed splitter in Corpus Christi that began commercial operations in June 2017. The current period also benefited from higher average rates on the Longhorn pipeline and significantly more volume on the partnership's Houston distribution system, resulting in a lower overall average rate per barrel due to the substantially lower tariff related to these shorter-haul movements.
Earnings of non-controlled entities increased $11.0 million primarily due to higher earnings from BridgeTex Pipeline Company, LLC, which is owned 50% by Magellan. The higher BridgeTex earnings were mainly attributable to new commitments that began in first quarter 2018 for recently-added pipeline capacity, volumes from BridgeTex's Eaglebine origin that began service in second quarter 2017 and more spot shipments. The partnership also benefited from higher earnings from Saddlehorn Pipeline Company, LLC, which is owned 40% by Magellan, due to increased shipments associated with a step-up in committed volumes in Sept. 2017.
Operating expenses increased $6.2 million primarily due to higher costs associated with the partnership's new condensate splitter that began commercial operations in June 2017, higher power costs for more pipeline movements and higher personnel costs due to the pension correction.
Marine storage. Marine storage operating margin was $30.0 million, a decrease of $4.5 million. Transportation and terminals revenue was essentially flat as lower utilization, resulting from the timing of maintenance work and tanks damaged by Hurricane Harvey that are still under repair, was mostly offset by higher storage rates during the current period. Operating expenses increased $5.3 million due to less favorable product overages (which reduce operating expenses), higher personnel costs resulting from the pension correction and increased integrity spending due to timing of maintenance work.
Other items. Depreciation and amortization increased due to recent expansion capital expenditures, and G&A expense increased because of higher personnel costs resulting from the pension correction and an increase in employee headcount due to the partnership's growth. Other expense also increased due to the non-service component of the pension correction.
Net interest expense increased as a result of additional borrowings to finance expansion capital spending. As of March 31, 2018, the partnership had $4.6 billion of debt outstanding, with no borrowings outstanding on its commercial paper program and $74.2 million of cash on hand.
Expansion capital projects
Magellan remains focused on expansion opportunities and continues to develop incremental investment opportunities expected to generate attractive returns. Based on the progress of expansion projects already underway, the partnership expects to spend approximately $950 million in 2018 and $425 million in 2019 to complete its current slate of construction projects. This spending profile is $100 million higher than previous estimates primarily due to the recently-launched project to construct a new fractionator in Frost, Texas that is expected to be operational in late 2019.
Magellan continues to make significant progress on its other construction projects. Expansion of the Seabrook Logistics joint venture, which includes the addition of 1.7 million barrels of storage and connectivity to Magellan's Houston crude oil distribution system, is nearing completion and is expected to commence operations in early third quarter. Further, construction activities continue for the addition of new dock capacity at the partnership's Galena Park marine terminal, which is expected to be fully operational by late 2018.
Tank construction is underway at the partnership's joint-venture marine terminal in Pasadena, Texas. The initial 1 million barrels of storage is still targeted to be in-service by Jan. 2019, with an additional 4 million barrels of storage expected to come online by Jan. 2020. The pipeline steel has been ordered and permit and right-of-way work are in progress for the Delaware Basin crude oil pipeline and East Houston-to-Hearne refined products pipeline, with both expected to be operational in mid-2019. As indicated during the partnership's recent analyst day, Magellan is currently evaluating optimization of the Delaware Basin project through a joint venture or undivided joint interest arrangement with a third party.
Magellan also continues to evaluate well in excess of $500 million of potential organic growth projects in earlier stages of development as well as acquisition opportunities, all of which have been excluded from the partnership's spending estimates at this time. Active discussions with potential customers continue to further develop the partnership's joint-venture marine terminal in Pasadena and its Seabrook Logistics crude oil joint venture.
Discussions also continue regarding new infrastructure investments in West Texas and other regions of Texas for both crude oil and refined products service. An open season is currently underway to assess customer interest for the potential expansion of the partnership's western leg of its refined products pipeline system in Texas. Significant interest has been expressed from potential shippers for this proposed pipeline expansion, with the open season recently extended by one week to May 16 to provide interested shippers additional time to finalize their commitments.
Financial guidance
As a result of strong financial performance to date and the partnership's expectations for the remainder of the year, management is increasing its annual DCF guidance by $30 million to $1.08 billion for 2018, which would represent a record year for Magellan and 1.2 times the amount needed to pay projected cash distributions for 2018. Management remains committed to its stated goal of increasing annual cash distributions by 8% for 2018.
Based on the recent favorable pricing differential between the Permian Basin and Houston that encourages spot shipments on the Longhorn and BridgeTex pipelines, current guidance assumes spot shipments occur on both pipelines through the third quarter of 2018, generating additional DCF for Magellan. As a result, volumes are now assumed to average 265,000 barrels per day (bpd) on the Longhorn pipeline and 350,000 bpd on the BridgeTex pipeline for 2018.
Although almost all existing Longhorn customers have now extended their contracts under current terms for an additional two years as allowed by the expiring agreements, Magellan remains in active discussions with shippers to extend the length of their contracts. While demand for space on the Longhorn pipeline is strong, the current pricing environment for long-term commitments on crude oil pipelines originating from the Permian Basin is competitive. As a result, DCF guidance continues to assume average tariff rates for the Longhorn pipeline will likely be lower beginning in the fourth quarter of 2018 after the current contracts expire on Sept. 30.
Including actual results so far this year, net income per limited partner unit is estimated to be $4.10 for 2018, with second-quarter guidance of 95 cents. Guidance excludes future MTM adjustments on the partnership's commodity-related activities.
Looking further ahead, management continues to target annual DCF growth in the range of 5% to 8% for both 2019 and 2020. Management has indicated its intention to manage distribution growth consistent with its expectations for DCF growth for the foreseeable future while maintaining annual distribution coverage of 1.2 times, which correspondingly could result in annual distribution growth of 5% to 8% each year as well.
Earnings call details
An analyst call with management to discuss first-quarter financial results, outlook for the remainder of 2018 and the status of significant expansion projects is scheduled today at 1:30 p.m. Eastern. To join the conference call, dial (877) 260-1479 and provide code 9386289. Investors also may listen to the call via the partnership's website at www.magellanlp.com/investors/webcasts.aspx .
Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on May 9. To access the replay, dial (888) 203-1112 and provide code 9386289. The replay also will be available at www.magellanlp.com .
Non-GAAP financial measures
Management believes that investors benefit from having access to the same financial measures utilized by the partnership. As a result, this news release and supporting schedules include the non-GAAP financial measures of operating margin, product margin, adjusted EBITDA, DCF and net income per unit excluding MTM commodity-related pricing adjustments and the one-time pension correction, which are important performance measures used by management.
Operating margin reflects operating profit before G&A expense and depreciation and amortization. This measure forms the basis of the partnership's internal financial reporting and is used by management to evaluate the economic performance of the partnership's operations.
Product margin, which is calculated as product sales revenue less cost of product sales, is used by management to evaluate the profitability of the partnership's commodity-related activities.
Adjusted EBITDA is an important measure utilized by management and the investment community to assess the financial results of an entity.
DCF is important in determining the amount of cash generated from the partnership's operations that is available for distribution to its unitholders. Management uses this performance measure as a basis for recommending to the board of directors the amount of cash distributions to be paid each period and for determining the payouts under the partnership's equity-based incentive plan.
Reconciliations of operating margin to operating profit and adjusted EBITDA and DCF to net income accompany this news release.
The partnership uses exchange-traded futures contracts to hedge against price changes of petroleum products associated with its commodity-related activities. Most of these futures contracts do not qualify for hedge accounting treatment. However, because these futures contracts are generally effective at hedging price changes, management believes the partnership's profitability should be evaluated excluding the unrealized gains and losses associated with petroleum products that will be sold in future periods. Further, because the financial guidance provided by management excludes future MTM commodity-related pricing adjustments (and did not anticipate the one-time pension correction), a reconciliation of actual results to those excluding these adjustments is provided for comparability to previous financial guidance.
Because the non-GAAP measures presented in this news release include adjustments specific to the partnership, they may not be comparable to similarly-titled measures of other companies.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com .
Forward-Looking Statement Disclaimer
Portions of this document constitute as defined by federal law. Forward-looking statements can be identified by words such as: plan, goal, target, guidance, believe, estimate, expect, projected, future, may, will and similar references to future periods. Although management of Magellan Midstream Partners, L.P. believes such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors that may have a direct impact on the partnership's results of operations and financial condition are: (1) its ability to identify growth projects and to complete identified projects on time and at expected costs; (2) price fluctuations and changes in demand for refined petroleum products, crude oil and natural gas liquids, or changes in demand for transportation, storage, blending or processing of those commodities through its existing or planned facilities; (3) changes in the partnership's tariff rates or other terms as required by state or federal regulatory authorities; (4) shut-downs or cutbacks at refineries or other businesses that use or supply the partnership's services; (5) changes in the throughput or interruption in service on pipelines or other facilities owned and operated by third parties and connected to the partnership's terminals, pipelines or other facilities; (6) the occurrence of operational hazards or unforeseen interruptions; (7) the treatment of the partnership as a corporation for federal or state income tax purposes or the partnership becoming subject to significant forms of other taxation; (8) an increase in the competition the partnership's operations encounter; (9) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending; and (10) failure of customers to meet or continue contractual obligations to the partnership. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission, including the partnership's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and subsequent reports on Form 8-K. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, especially under the heading "Risk Factors." Forward-looking statements made by the partnership in this release are based only on information currently known, and the partnership undertakes no obligation to revise its to reflect events or circumstances learned of or occurring after today's date.
Contact:
Paula Farrell
(918) 574-7650
[email protected]
MAGELLAN MIDSTREAM PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per unit amounts)
(Unaudited)
Three Months Ended
March 31,
2017
2018
Transportation and terminals revenue
$
392,671
$
431,937
Product sales revenue
245,620
241,592
Affiliate management fee revenue
3,783
5,250
Total revenue
642,074
678,779
Costs and expenses:
Operating
131,592
143,296
Cost of product sales
172,876
199,592
Depreciation and amortization
47,298
51,879
General and administrative
40,281
46,556
Total costs and expenses
392,047
441,323
Earnings of non-controlled entities
21,446
34,538
Operating profit
271,473
271,994
Interest expense
51,212
56,652
Interest capitalized
(4,197)
(4,647)
Interest income
(292)
(579)
Other expense
1,170
8,724
Income before provision for income taxes
223,580
211,844
Provision for income taxes
844
934
Net income
$
222,736
$
210,910
Basic net income per limited partner unit
$
0.98
$
0.92
Diluted net income per limited partner unit
$
0.98
$
0.92
Weighted average number of limited partner units outstanding used for basic net income per unit calculation
228,109
228,320
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation
228,159
228,360
MAGELLAN MIDSTREAM PARTNERS, L.P.
OPERATING STATISTICS
Three Months Ended
March 31,
2017
2018
Refined products:
Transportation revenue per barrel shipped
$
1.461
$
1.464
Volume shipped (million barrels):
Gasoline
66.2
67.6
Distillates
37.9
43.0
Aviation fuel
5.9
6.3
Liquefied petroleum gases
1.1
1.1
Total volume shipped
111.1
118.0
Crude oil:
Magellan 100%-owned assets:
Transportation revenue per barrel shipped
$
1.543
$
1.241
Volume shipped (million barrels)
41.3
55.7
Crude oil terminal average utilization (million barrels per month)
16.5
16.0
Select joint venture pipelines:
BridgeTex - volume shipped (million barrels) (1)
18.9
28.3
Saddlehorn - volume shipped (million barrels) (2)
4.0
5.8
Marine storage:
Marine terminal average utilization (million barrels per month)
24.0
22.6
(1)
These volumes reflect the total shipments for the BridgeTex pipeline, which is owned 50% by Magellan.
(2)
These volumes reflect the total shipments for the Saddlehorn pipeline, which is owned 40% by Magellan.
MAGELLAN MIDSTREAM PARTNERS, L.P.
OPERATING MARGIN RECONCILIATION TO OPERATING PROFIT
(Unaudited, in thousands)
Three Months Ended
March 31,
2017
2018
Refined products:
Transportation and terminals revenue
$
241,905
$
260,394
Affiliate management fee revenue
329
297
Earnings of non-controlled entities
111
2,318
Less: Operating expenses
93,533
94,049
Transportation and terminals margin
148,812
168,960
Product sales revenue
240,170
232,774
Less: Cost of product sales
167,681
190,333
Product margin
72,489
42,441
Operating margin
$
221,301
$
211,401
Crude oil:
Transportation and terminals revenue
$
105,053
$
126,258
Affiliate management fee revenue
3,134
4,016
Earnings of non-controlled entities
20,650
31,608
Less: Operating expenses
27,418
33,591
Transportation and terminals margin
101,419
128,291
Product sales revenue
3,103
6,439
Less: Cost of product sales
2,577
7,050
Product margin
526
(611)
Operating margin
$
101,945
$
127,680
Marine storage:
Transportation and terminals revenue
$
46,407
$
46,200
Affiliate management fee revenue
320
937
Earnings of non-controlled entities
685
612
Less: Operating expenses
12,655
17,964
Transportation and terminals margin
34,757
29,785
Product sales revenue
2,347
2,379
Less: Cost of product sales
2,618
2,209
Product margin
(271)
170
Operating margin
$
34,486
$
29,955
Segment operating margin
$
357,732
$
369,036
Add: Allocated corporate depreciation costs
1,320
1,393
Total operating margin
359,052
370,429
Less:
Depreciation and amortization expense
47,298
51,879
General and administrative expense
40,281
46,556
Total operating profit
$
271,473
$
271,994
Note: Amounts may not sum to figures shown on the consolidated statement of income due to intersegment eliminations and allocated corporate depreciation costs.
MAGELLAN MIDSTREAM PARTNERS, L.P.
RECONCILIATION OF NET INCOME AND NET INCOME PER LIMITED PARTNER UNIT
EXCLUDING COMMODITY-RELATED ADJUSTMENTS TO GAAP MEASURES
(Unaudited, in thousands except per unit amounts)
Three Months Ended
March 31, 2018
Net Income
Basic Net Income
Per Limited
Partner Unit
Diluted Net
Income Per
Limited Partner
Unit
As reported
$
210,910
$
0.92
$
0.92
Unrealized derivative losses associated with future physical product sales (1)
13,833
0.06
0.06
Inventory valuation adjustments associated with future physical product transactions
574
—
—
Excluding commodity-related adjustments (2)
$
225,317
$
0.98
$
0.98
Weighted average number of limited partner units outstanding used for basic net income per unit calculation
228,320
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation
228,360
(1)
Includes unrealized derivative gains and losses from the partnership's non-controlled entities.
(2)
Please see Distributable Cash Flow Reconciliation to Net Income for further descriptions of commodity-related adjustments.
MAGELLAN MIDSTREAM PARTNERS, L.P.
DISTRIBUTABLE CASH FLOW RECONCILIATION TO NET INCOME
(Unaudited, in thousands)
Three Months Ended
March 31,
2018
2017
2018
Guidance
Net income
$
222,736
$
210,910
$
936,000
Interest expense, net
46,723
51,426
215,000
Depreciation and amortization
47,298
51,879
208,000
Equity-based incentive compensation (1)
(9,728)
(2,653)
17,000
Loss on sale and retirement of assets
3,461
1,997
10,000
Commodity-related adjustments:
Derivative (gains) losses recognized in the period associated with future product transactions (2)
(6,705)
11,479
Derivative losses recognized in previous periods associated with product sales completed in the period (2)
(20,008)
(20,412)
Inventory valuation adjustments (3)
2,940
(1,098)
Total commodity-related adjustments
(23,773)
(10,031)
(40,000)
Cash distributions received from non-controlled entities in excess of earnings
159
17,216
30,000
Other (4)
1,450
3,644
4,000
Adjusted EBITDA
288,326
324,388
1,380,000
Interest expense, net, excluding debt issuance cost amortization
(45,897)
(50,586)
(210,000)
Maintenance capital (5)
(14,829)
(14,860)
(90,000)
Distributable cash flow
$
227,600
$
258,942
$
1,080,000
(1)
Because the partnership intends to satisfy vesting of unit awards under its equity-based incentive compensation plan with the issuance of limited partner units, expenses related to this plan generally are deemed non-cash and added back for DCF purposes. The equity-based compensation adjustment for the three months ended March 31, 2017 and 2018 was $4.2 million and $6.6 million, respectively. However, the figures above include adjustments of $13.9 million and $9.3 million, respectively, for cash payments associated with the equity-based incentive compensation plan, which primarily include tax withholdings.
(2)
Certain derivatives used by the partnership as economic hedges have not been designated as hedges for accounting purposes and the mark-to-market changes of these derivatives are recognized currently in net income. The partnership excludes the net impact of these hedges from its determination of DCF until the related products are physically sold. In the period in which these hedged products are physically sold, the net impact of the associated hedges is included in its determination of DCF.
(3)
The partnership adjusts DCF for lower of average cost or net realizable value adjustments related to inventory and firm purchase commitments as well as market valuation of short positions recognized each period as these are non-cash items. In subsequent periods when the partnership physically sells or purchases the related products, it adjusts DCF for the valuation adjustments previously recognized.
(4)
Other adjustments in 2018 include a $3.6 million one-time adjustment recorded to partners' capital as required by the partnership's adoption of Accounting Standards Update 2014-09, Revenue from Contracts with Customers. The amount represents cash that the partnership had previously received for deficiency payments but did not yet recognize in net income under the previous revenue recognition standard. Other adjustments in 2017 include payments received from HollyFrontier Corporation in conjunction with the February 2016 Osage Pipe Line Company, LLC ("Osage") exchange transaction. These payments replaced distributions the partnership would have received had the Osage transaction not occurred and are, therefore, included in the partnership's calculation of DCF.
(5)
Maintenance capital expenditures maintain existing assets of the partnership and do not generate incremental DCF (i.e. incremental returns to the unitholders). For this reason, the partnership deducts maintenance capital expenditures to determine DCF.
View original content: http://www.prnewswire.com/news-releases/magellan-midstream-reports-first-quarter-2018-financial-results-300641873.html
SOURCE Magellan Midstream Partners, L.P. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/03/pr-newswire-magellan-midstream-reports-first-quarter-2018-financial-results.html |
HOUSTON--(BUSINESS WIRE)-- ConocoPhillips (NYSE: COP) today announced a quarterly dividend of 28.5 cents per share, payable June 1, 2018, to stockholders of record at the close of business on May 14, 2018.
--- # # # ---
About ConocoPhillips
ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 17 countries, $71 billion of total assets, and approximately 11,200 employees as of March 31, 2018. Production excluding Libya averaged 1,224 MBOED for the three months ended March 31, 2018, and proved reserves were 5.0 billion BOE as of Dec. 31, 2017. For more information, go to www.conocophillips.com .
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases or technical difficulties in constructing, maintaining, or modifying company facilities; international monetary conditions and exchange rate fluctuations; our ability to liquidate the common stock issued to us by Cenovus Energy Inc at prices we deem acceptable, or at all; our ability to complete the sale of our announced dispositions on the timeline currently anticipated, if at all; the possibility that regulatory approvals for our announced dispositions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of our announced dispositions or our remaining business; business disruptions during or following our announced dispositions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced dispositions in the manner and timeframe we currently anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180504005821/en/
ConocoPhillips
Daren Beaudo, 281-293-2073 (media)
[email protected]
or
Andy O’Brien, 281-293-5000 (investors)
[email protected]
Source: ConocoPhillips | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/04/business-wire-conocophillips-announces-quarterly-dividend.html |
May 3, 2018 / 7:24 AM / Updated 7 hours ago Syrian rebels start pull-out from south Damascus Reuters Staff 2 Min Read
BEIRUT (Reuters) - Syrian rebels began pulling out of an enclave they have surrendered in south Damascus on Thursday, but a few fighters in another besieged area near Homs shelled government areas after their groups agreed to quit. A boy walks along a damaged street at the city of Douma in Damascus, Syria, April 16, 2018. REUTERS/Omar Sanadiki
The enclaves in south Damascus and near Homs are the only two besieged areas still held by rebels, though they still control large tracts of northwest and southwest Syria, lying along its international borders, which are not surrounded by the army.
Syrian President Bashar al-Assad has focussed on dislodging rebels from their remaining besieged pockets since driving them from eastern Ghouta last month after a fierce offensive.
Syrian state television showed footage of buses arriving at Beit Sahm, driving through narrow streets surrounded by soldiers and with concrete buildings above showing scars of war.
It later reported that the first batch of buses had departed, carrying fighters and their families from the area.
Some 5,000 fighters and their family members are expected to leave Beit Sahm, Babila and Yalda neighbourhoods for the opposition areas in northern Syria, it reported, following an earlier group which left the enclave on Monday.
Islamic State fighters holding another part of the same enclave are still fighting after weeks of intense bombardment in the area of al-Hajar al-Aswad and Yarmouk Palestinian refugee camp.
On Wednesday, insurgents in the biggest of the remaining besieged areas, located between the cities of Hama and Homs around the towns of Rastan, Talbiseh and Houla, also agreed to surrender.
However, a small number of them rejected the deal and shelled government areas late on Wednesday and early on Thursday, the Syrian Observatory for Human Rights war monitor and two local sources said. Reporting By Angus McDowall; Editing by Raissa Kasolowsky and Richard Balmforth | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-mideast-crisis-syria/syrian-rebels-prepare-to-quit-south-damascus-idUKKBN1I40KX |
May 4 (Reuters) - Nanosonics Ltd:
* ANNOUNCES RECEIPT OF MEDICAL DEVICE LICENCE FROM HEALTH CANADA FOR TROPHON2 SYSTEM Source text for Eikon:
Our | ashraq/financial-news-articles | https://www.reuters.com/article/brief-nanosonics-announces-receipt-of-me/brief-nanosonics-announces-receipt-of-medical-device-licence-from-health-canada-for-trophon2-system-idUSFWN1SA1GY |
PARIS, May 28 (Reuters) - French industrialist Serge Dassault, also a conservative politician, died age 93, BFM TV said on Monday, citing unnamed sources.
The Dassault group which his father had created controls Dassault Aviation, national newspaper Le Figaro as well as holding major stakes in Dassault Systemes and Thales and smaller stakes in several other listed French businesses.
A spokesman with Dassault Aviation had no immediate comment.
Reporting by Jean-Michel Belot and Ingrid Melander Editing by Matthias Blamont
| ashraq/financial-news-articles | https://www.reuters.com/article/france-dassault/french-industrialist-serge-dassault-dies-at-93-bfm-tv-idUSP6N10E01J |
On the heels of the U.S. men’s national soccer team missing the World Cup for the first time in 32 years, former head coach Bruce Arena has written a book calling for a “change in leadership” among other issues he says must be fixed if the country hopes to contend on the world’s stage again.
FILE PHOTO: U.S. men's national soccer team coach Bruce Arena looks on during Mexico v U.S. World Cup 2018 Qualifiers match at Azteca Stadium, Mexico City, Mexico on June 11, 2017. REUTERS/Henry Romero/File Photo Arena resigned from his job in October as head coach of the American team after his squad was upset by Trinidad & Tobago, which had lost six straight matches, in the finale of the North American qualifying tournament. The 2-1 defeat, one of the biggest disappointments by USA Soccer in recent decades, led to Arena stepping down three days later.
The loss also altered the plans of his book publisher, which first pitched Arena on a book deal shortly after he was hired in November 2016 for his second stint as U.S. men’s head coach.
“The book was going to be that we qualified for the World Cup and getting ready for the World Cup,” Arena told the Los Angeles Times.
Instead the book, set for release on June 12 — two days before the start of the World Cup — is titled “What’s Wrong With Us: A Coach’s Blunt Take on the State of American Soccer After a Lifetime on the Touchline.”
Instead of celebrating America’s rise among the international soccer scene, Arena offers his seasoned and sometimes scathing take on what is keeping the United States from becoming more of a world soccer power.
First and foremost, Arena believes that the American soccer program needs immediate improvement from the top down.
“They just don’t get it, the people that run the sport in our country,” Arena told the Times. “And U.S. Soccer has a major obligation to get it right. There needs to be a change in leadership.”
The national federation did get a new president in February when Carlos Cordeiro won a contested election following the resignation of Sunil Gulati in the wake of the men’s national team’s collapse.
Arena, named to the National Soccer Hall of Fame in 2010, is arguably the most successful soccer coach in American history. He has coached and won at nearly every level, with five College Cup championships at Virginia and five MLS titles (two with D.C. United, three with LA Galaxy). Arena also led U.S. teams at two World Cups (2002, 2006) and one Olympics (1996 in Atlanta).
So Arena’s words may carry weight, thanks to his experience. While Arena lauds the talent infusion at the youth levels in the American program, his biggest complaint is about the echo chamber atop the executive level at U.S. Soccer. Per the Times, Arena writes that many among the bosses have limited technical expertise and vision needed to truly help shape the skills development needed to vault America’s young players among the world elite.
But Arena is hopeful that USA Soccer is not a lost cause.
“It’s not like you’ve got to have a clean sweep of everything and make all radical changes,” he told the Times. “You just need the right leadership with the right ideas and get going.”
But if the status quo remains?
“If we don’t make changes,” he warns, “we’re not going anywhere.”
| ashraq/financial-news-articles | https://www.reuters.com/article/us-soccer-club-arena-book/arena-asks-whats-wrong-with-us-after-world-cup-miss-idUSKBN1IA1TG |
Less than seven months ago, an investor consortium led by an obscure Chinese energy conglomerate reached an ambitious deal to buy one of Hong Kong’s landmark skyscrapers for a record-setting price.
Not long after, the Beijing-based conglomerate known as China Energy Reserve and Chemicals Group backed out of the $5.2 billion deal, and this month it defaulted on a set of U.S. dollar bonds.
A... | ashraq/financial-news-articles | https://www.wsj.com/articles/chinese-energy-companys-missed-bond-payment-fans-fears-of-more-defaults-1527506955 |
Progress Update on INSPIRE 2.0 Trial, Finance Officer Appointment
CAMBRIDGE, Mass.--(BUSINESS WIRE)-- InVivo Therapeutics Holdings Corp. (NVIV) today provided a business and clinical update and reported quarter ended March 31, 2018.
Richard Toselli, M.D., President and Chief Executive Officer of InVivo, commented, “InVivo gained significant momentum in the first quarter of 2018, and we look forward to building on our positive momentum throughout the rest of the year. We remain focused on the development of our Neuro-Spinal Scaffold™ and continue to take steps to reduce our expenses and maximize shareholder value. Key spend reductions have involved the elimination of certain headcount and the assignment of the company’s lease, which is expected to result in lease-related savings of approximately $3M through 2019. In addition to the lease assignment, InVivo is undertaking other key cost-control initiatives, resulting in a projected average cash burn of approximately $1M per month over the last three quarters of 2018. Going forward, we continue to explore financing options and are looking forward to our upcoming shareholder meeting.”
InVivo’s clinical team has begun preparation for the second INSPIRE trial, INSPIRE 2.0. The Company has identified potential trial sites and a CRO and manufactured clinical product to initiate the trial. Once financing is secured, the INSPIRE 2.0 trial will begin enrolling subjects. The company is seeking to secure enough financing to complete the enrollment of the trial, which is estimated to be 18 months. The company’s financing strategy is dependent upon shareholder approval at the 2018 Annual Meeting of Shareholders of an increase in the number of authorized shares and an increase in the number of shares the company is authorized to sell to Lincoln Park Capital.
The Company also announced the appointment of Jeff Modestino as principal financial officer and principal accounting officer, effective May 11, 2018, and the resignation of Christopher McNulty as Chief Financial Officer. Mr. Modestino previously served as Chief Financial Officer of Clearline MD and brings to the company over two decades of significant healthcare and finance experience, including experiences spanning medical devices. Dr. Toselli stated, “Jeff brings valuable experience and has developed a strong understanding of the company, having served as a consultant for InVivo prior to his joining full-time. I would also like to thank Chris for his contributions to InVivo over the past four years, and wish him the best in his future endeavors.”
Recent Corporate Developments
Announced the appointment of Richard Toselli, M.D., as President and Chief Executive Officer of InVivo. Dr. Toselli, a Board-certified neurosurgeon, has led an accomplished career in surgical medical affairs, with senior leadership experience at Sanofi, DePuy, and Johnson & Johnson. Entered into a common stock purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor, under which the Company has the right to sell up to $15 million in shares of common stock to Lincoln Park over a twenty-four-month period, subject to certain limitations and conditions set forth in the purchase agreement and registration rights agreement. Received supplemental Investigational Device Exemption (IDE) approval from the FDA for a second pivotal clinical study of the Neuro-Spinal Scaffold™ in patients with acute spinal cord injury (SCI). The 20-patient (10 subjects in each study arm), randomized, controlled trial is designed to enhance the existing clinical evidence for the Neuro-Spinal Scaffold™ from the company’s single-arm INSPIRE study. Presented CONTEMPO data at the 2018 Spine Summit medical meeting. The CONTEMPO data were designed to provide comprehensive natural history benchmarks for Neuro-Spinal Scaffold™ clinical study results. The CONTEMPO study included neurological recovery data from 170 patients across three registries of SCI patients with similar baseline characteristics to those in the INSPIRE study and validated the company’s previously established OPC with AIS conversion rates at approximately six months post-injury of 16.7% - 23.4% across the three registries.
Financial Results
For the three-month period ended March 31, 2018, the Company reported a net loss of approximately $4.8 million, or $3.34 per diluted share, compared to a net loss of $6.4 million, or $4.98 per diluted share, for the three-month period ended March 31, 2017. The results for the three-month period ended March 31, 2018 were favorably impacted by decreases in operating expenses of $1,986,000 in research and development offset by an increase of $149,000 in general and administrative. The decrease in operating expense can be attributed to the restructuring efforts that the company undertook in the third quarter of 2017 and subsequent cost cutting initiatives designed to reduce the company’s monthly cash burn rate. The increase in general and administrative costs is primarily attributable to severance related expenses in the first quarter of 2018, as the company further reduced its administrative headcount.
The Company ended the quarter with $11.6 million of cash and cash equivalents.
About InVivo Therapeutics
InVivo Therapeutics Holdings Corp. is a research and clinical-stage biomaterials and biotechnology company with a focus on treatment of spinal cord injuries. The company was founded in 2005 with proprietary technology co-invented by Robert Langer, Sc.D., Professor at Massachusetts Institute of Technology, and Joseph P. Vacanti, M.D., who then was at Boston Children’s Hospital and who now is affiliated with Massachusetts General Hospital. In January 2018, the company announced updated clinical evidence, including improvements in patients with acute spinal cord injury (SCI), from its INSPIRE study of the Neuro-Spinal Scaffold™. The publicly traded company is headquartered in Cambridge, MA. For more details, visit www.invivotherapeutics.com .
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as “believe,” “anticipate,” “intend,” “estimate,” “will,” “may,” “should,” “expect” and similar expressions, and include statements regarding potential financing, the commencement of enrollment in the INSPIRE 2.0 trial and the expected length of the trial, the impact of cost-control measures and the ability of the Company to continue clinical investigation of the Company’s Neuro-Spinal Scaffold. Any forward-looking statements contained herein are based on current expectations, and are subject to a number of risks and uncertainties. Factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to: successfully identify financing alternatives and raise the capital necessary to undertake the second pivotal trial, to successfully decrease costs and spend and to successfully open additional clinical sites for enrollment and to enroll additional patients if such trial is initiated; the timing of the Institutional Review Board process; the company’s ability to obtain FDA approval to commercialize its products; the company’s ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the company’s products and technology in connection with spinal cord injuries; the availability of substantial additional funding for the company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and other risks associated with the company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies identified and described in more detail in the company’s Annual Report on Form 10-K for the year ended December 31, 2017 and its other filings with the SEC, including the company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The company does not undertake to update these forward-looking statements.
InVivo Therapeutics Holdings Corp. Consolidated Balance Sheets (Unaudited)
( In thousands, except share and per share data)
As of March 31,
2018
December 31,
2017
ASSETS: Current assets: Cash and cash equivalents 11,614 12,910 Restricted cash 378 361 Prepaid expenses and other current assets 1,151 535 Total current assets 13,143 13,806 Property, equipment and leasehold improvements, net 72 157 Other assets 76 82 Total assets 13,291 14,045 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable 1,228 988 Loan payable, current portion 459 452 Derivative warrant liability 2 4 Deferred rent, current portion 30 30 Accrued expenses 2,386 1,638 Total current liabilities 4,105 3,112 Loan payable, net of current portion 283 400 Deferred rent, net of current portion 522 367 Other liabilities 58 56 Total liabilities 4,968 3,935 Stockholders' equity: Common stock, $0.00001 par value, authorized 4,000,000 shares; issued and outstanding 1,562,284 shares at March 31, 2018; issued and outstanding 1,370,992
shares at December 31, 2017
1
1
Additional paid-in capital 197,013 194,016 Accumulated deficit (188,691) (183,907) Total stockholders' equity 8,323 10,110 Total liabilities and stockholders' equity 13,291 14,045 (Reflects 1-for-25 reverse stock split effective April 16, 2018)
InVivo Therapeutics Holdings Corp. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (In thousands, except share and per share data)
Three Months Ended March 31, 2018 2017 Operating expenses: Research and development 1,398 3,384 General and administrative 3,434 3,285 Total operating expenses 4,832 6,669 Operating loss (4,832) (6,669) Other income (expense): Interest income / (expense) 18 37 Other income / (expense) 42 — Derivatives gain (loss) (12) 241 Other income (expense), net 48 278 Net loss (4,784) (6,391) Net loss per share, basic and diluted (3.34) (4.98) Weighted average number of common shares outstanding, basic and diluted 1,432,963 1,283,206 Other comprehensive loss: Net loss (4,784) (6,391) Other comprehensive loss: Unrealized loss on marketable securities — (2) Comprehensive loss (4,784) (6,393) (Reflects 1-for-25 reverse stock split effective April 16, 2018)
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InVivo Therapeutics Holdings Corp.
Heather Hamel, 617-863-5530
Investor Relations
[email protected]
Source: InVivo Therapeutics Holdings Corp. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/07/business-wire-invivo-therapeutics-reports-2018-first-quarter-financial-results.html |
LONDON (Reuters) - A revival in European steel is at risk from U.S. President Donald Trump’s move to impose tariffs on imports, Eurofer said as it raised its 2018 forecast for apparent steel consumption.
FILE PHOTO: A worker controls a tapping of a blast furnace at Europe's largest steel factory of Germany's industrial conglomerate ThyssenKrupp AG in the western German city of Duisburg March 17, 2010. The consumption figure, which excludes the impact of inventory changes, is set to grow by 2.3 percent, above a previous forecast of 1.9 percent, the European steel association said on Tuesday.
“The latest data shows that the European steel industry has finally struggled its way back towards a firmer footing”, Axel Eggert, director general of Eurofer, said, adding that this was being put at risk by a 25 percent U.S. tariff on steel imports.
Trump imposed the tariff on steel imports and a 10 percent tariff on aluminum on March 23, but granted temporary exemptions to Canada, Mexico, Brazil, the European Union, Australia and Argentina.
He has since postponed tariffs on Canada, the EU and Mexico until June 1, but a source familiar with the decision said there would be no further extensions beyond that date.
The EU has said it will set duties on 2.8 billion euros ($3.36 billion) of U.S. exports, including peanut butter and denim jeans, if its metals exports to the United States, worth 6.4 billion euros, are subject to tariffs.
It has also launched an investigation into whether to impose safeguard measures that would limit EU steel imports, which it fears might surge as steel previously headed for the U.S. gets diverted.
Eurofer said preliminary data suggests EU steel imports grew 8 percent in the first quarter, after falling 1.8 percent last year thanks to EU trade defense measures to counter dumping and unfair subsidies.
Steel imports from India rose 96 in the first quarter while those from Turkey grew by 64 percent, Eurofer said, countering a drop in imports from China, Russia, Ukraine and Brazil, whose steel is largely subject to EU anti-dumping duties.
EU apparent steel consumption grew 1.6 percent in the first quarter, Eurofer said. The group sees apparent steel consumption growth of 1.4 percent next year versus 2.3 percent this year.
Reporting by Maytaal Angel; Editing by Alexander Smith
| ashraq/financial-news-articles | https://www.reuters.com/article/us-eu-steel-demand/european-steelmakers-see-recovery-at-risk-from-u-s-tariffs-idUSKBN1I91QI |
MEXICO CITY, April 30 (Reuters) - Mexico’s economy grew by around 1.1 percent in seasonally-adjusted terms during the first quarter compared with the previous three-month period, a preliminary estimate from the national statistics agency showed on Monday.
The figure marked an acceleration from the fourth quarter of last year, when the economy grew by 0.8 percent on the quarter, according to final data published on Feb. 23.
Compared to the same quarter a year earlier, the economy grew by 1.2 percent in unadjusted terms, the agency said. (Reporting by Dave Graham)
| ashraq/financial-news-articles | https://www.reuters.com/article/mexico-economy/mexico-economy-grew-1-1-pct-q-q-in-1st-quarter-preliminary-estimate-idUSS0N1LF01O |
May 15, 2018 / 10:59 AM / Updated an hour ago Russia's Rosneft looks to Vietnam experience to help global expansion Olesya Astakhova 3 Min Read
VUNG TAU, Vietnam (Reuters) - With sanctions barring Russia’s largest oil producer from offshore extraction with Western companies, Rosneft is looking to its operations in Vietnam for the experience needed to expand its global reach. The logo of Russia's oil company Rosneft is pictured on the Rosneft Vietnam office in Ho Chi Minh City, Vietnam April 26, 2018. REUTERS/Maxim Shemetov
The Southeast Asian country is a traditional ally of Russia, and Kremlin-controlled Rosneft is part of a consortium with Petrovietnam and India’s ONGC which last year produced almost 3 billion cubic metres (bcm) of gas.
The consortium provides almost a tenth of Vietnam’s electricity needs and last year also produced 65,000 tonnes of gas condensate, mainly for the domestic market but some of which was exported to Singapore.
“The project in Vietnam allows us to develop operator skills working on the shelf, and is also a platform for the possible growth of business in other countries of Southeast Asia,” said Christopher Einchcomb, director of Rosneft’s upstream foreign projects support department.
“I am sure that the experience gained in Vietnam will be used not only for the company’s work offshore Vietnam but acquired competencies will be applied in the planning and implementation of ‘exploration and production’ projects in other remote regions of the world,” he said.
U.S. sanctions imposed on Moscow after its annexation of Crimea in 2014 have prohibited Western companies from working in Russian Arctic oilfields, producing tight oil or deepwater exploration in the country.
U.S. major ExxonMobil decided to withdraw from sanctions-hit joint projects with Rosneft this year.
Mervyn Goddings, head of Rosneft subsidiary RN-Vietnam, said the sanctions have forced the company to become more cautious and more proficient.
“There is mild inconvenience. It means that we have to be a little more astute in how we operate, where we buy from. There is plenty of opportunities, plenty of diversity. It just means that we have to become more efficient, more effective and a better operator,” he said.
“No experience is ever wasted. So, the lessons that we learn here are carried over, We are already a part of the greater Rosneft family. We have interchanging personnel. We have Russian staff come and work here,” he said.
Rosneft said that production offshore Vietnam is very profitable. Operational costs to produce gas stand at $1.5 per barrel of oil equivalent, half of what it usually costs the company.
Its Vietnamese operations are a legacy of Anglo-Russian firm TNK-BP, which it bought in 2013 for $55 billion.
Rosneft controls 35 percent at Block 06.1 with initial reserves of 69 bcm of gas and owns a stake of around 33 percent in a pipeline that carries gas and condensate from blocks in the Nam Con Son basin to an onshore power generation facility.
It also operates Block 05-3/11 with initial resources of 28 bcm of gas and 18 million tonnes of gas condensate. Currently, Rosneft performs exploration work there. Writing by Vladimir Soldatkin; editing by Jason Neely and Adrian Croft | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-russia-rosneft-vietnam/russias-rosneft-looks-to-vietnam-experience-to-help-global-expansion-idUKKCN1IG1I4 |
May 17, 2018 / 12:35 PM / Updated 35 minutes ago COLUMN-Sanctions stresses still bubbling in aluminium market: Andy Home Reuters Staff
(The opinions expressed here are those of the author, a columnist for Reuters.)
* Aluminium and Rusal sanctions: tmsnrt.rs/2wOBhsi
By Andy Home
LONDON, May 17 (Reuters) - The initial sanctions shockwaves may have passed but the aluminium market is still structurally stressed by the U.S. Treasury’s action against Oleg Deripaska and his Rusal aluminium empire.
The price explosion after the original April 6 sanctions announcement went into reverse on April 23, when the U.S. Treasury extended the deadline until October and held out an olive branch to Rusal (but not Deripaska).
After hitting a seven-year high of $2,718 per tonne on April 19 the London Metal Exchange (LME) aluminium price has retreated to a current $2,268.
The market seems to be betting that Deripaska’s offer to reduce his stake in and remove himself from Rusal will result in a swift lifting of the sanctions that have roiled the supply chain.
However, the tensions caused by the partial lock-out from the global market of the largest producer outside of China are still evident.
LME time-spreads are contracting again and huge tonnages of stocks are being flipped around against a backdrop of tightening physical markets.
The storm has abated but it may not yet be over.
Graphic on LME aluminium and time-spreads:
tmsnrt.rs/2wOBhsi SPREADS TIGHTEN, STOCKS ROTATE
LME aluminium time-spreads went super-tight in the days after the original sanctions announcement, the cash-to-three months period CMAL0-3 flexing out to a $56-per tonne backwardation, a level not seen in many, many years.
It’s what happens when around 36 percent of an exchange’s registered inventory is placed under sanctions watch. That’s the amount of LME-stored aluminium that was categorised as “Eastern European” as of the end of March.
Nervous financiers of off-market Russian stocks also dumped around 150,000 tonnes of metal back into LME warehouses, mostly in the Netherlands, over the following week.
The LME calmed things down with a statement that it would suspend all new deliveries of Rusal-brand aluminium but that metal already in the system before April 6 would still constitute good delivery.
It has since been asked to extend that date in line with the sanctions extension but has declined on the grounds that a normal metal certification chain is very different from a sanctions certification chain.
That leaves one of the biggest suppliers of stocks liquidity to the LME locked out of the exchange delivery system.
It has also served to increase the value of LME-stored metal that comes from anywhere other than Russia.
There were massive cancellations of aluminium stored at the Malaysian port of Port Klang in the week after the initial sanctions hit, 108,725 tonnes moving to the load-out queue in a single day.
All of that metal and more has just been dumped back into the LME system, Thursday morning’s stocks report showing “reverse cancellations” of 138,650 tonnes at the same location.
As ever with this particular market, the underlying forces at work are opaque, but the scale of these stock movements points to trading-book stress.
So too does a renewed tightening of the time-spreads.
After moving to a discount to the three-month price last week, the spot price has just moved back to a significant premium again.
The cash-to-three-months time-spread closed Wednesday valued at $21.25 per tonne backwardation with the tightness concentrated on the July-August spread, valued at $35.00 backwardation.
The London aluminium market is no stranger to sporadic time-spread squeezes but this volatility is extreme by recent historical standards.
And dipping into the off-market pool of Rusal metal to deliver against a short position is no longer an easy option. PHYSICAL TIGHTNESS
Finding alternative-brand metal, meanwhile, may be increasingly difficult as the physical market tightens.
Premiums for aluminium in the U.S. Midwest remain elevated on the combination of tariffs and the loss of a major supplier to a market that imported almost 700,000 tonnes last year.
The CME spot contract closed Wednesday at 22.0 cents per pound, equivalent to $485 per tonne.
It’s worth remembering that the Rusal turmoil comes on top of two smelter outages, a relatively rare event in the aluminium production sector.
The alumina segment of the supply chain has gone wild because off the double-whammy of sanctions and the partial closure of the giant Alunorte refinery in Brazil.
But Alunorte’s loss of production has also caused owner Hydro to close 230,000-tonnes per year of integrated metal capacity at the Albras smelter.
In Canada, meanwhile, a union lock-out at the Becancour smelter is now in its fourth month.
Alcoa, which owns a majority stake in the 438,000-tonne per year plant, said in its first-quarter report that only one out of three potlines has been in operation since Jan. 11.
Albras and Becancour were already disrupting the aluminium supply chain before the U.S. Treasury cast its sanctions spell on Rusal’s 3.7 million tonnes of annualised production.
Tightness in the paper market, in other words, is being reinforced by tightness in the physical market. EYE OF THE STORM?
So far the outright aluminium price is unfazed by the rumblings emanating from the spreads and the mega transfers of stocks.
However, the calm may not last for long.
Research house CRU spells out the two options facing the market, namely lifting U.S. sanctions on Rusal or keeping them in place.
Even if sanctions are lifted, the process could take “several months” and cause a sufficient draw on inventory to lift the price to $2,600-$2,700, CRU argues in a research note published by Fitch Ratings (“Rusal Sanctions Outcome Key to Aluminium Prices”, May 15, 2018).
If sanctions stay, they would limit Rusal’s ability to sell to countries such as Turkey and South Korea which have experience in navigating oil sanctions on Iran.
Moreover, “supplies of bauxite and alumina to Russia from most of its overseas operations would be halted, drastically curtailing Rusal’s primary aluminium output to 2.3 million tonnes in 2019.”
Under this scenario the price could peak at $3,000 per tonne this year, CRU argues.
Right now, the market doesn’t seem to agree, pricing in an almost immediate lifting of sanctions and ignoring signs of continued disruption to aluminium flows.
If it’s wrong, the current period of tranquility will turn out to be the deceptive calm in the eye of the storm. (Editing by Edmund Blair) | ashraq/financial-news-articles | https://www.reuters.com/article/aluminium-rusal-ahome/column-sanctions-stresses-still-bubbling-in-aluminium-market-andy-home-idUSL5N1SO3RY |
ROME (Reuters) - Italy’s next prime minister could be an independent figure who is not a member of either the 5-Star movement or the League and a government could be sworn in next week if all goes well, a top 5-Star member said in a newspaper interview published on Friday.
“One of the hypotheses is to pick a third person who has a high profile and is trusted by Italian citizens and Italy’s international partners,” Vincenzo Spadafora, a close aide to 5-Star leader Luigi Di Maio, told the Corriere della Sera.
The anti-establishment 5-Star and the far-right League have made “significant steps” toward forming a government to end nine weeks of political deadlock.
But one of the key remaining points of contention is who will be prime minister - De Maio or League leader Matteo Salvini.
Italian President Sergio Mattarella, who has the final word over the make-up of any new administration, has given the two sides until Sunday to report back to him on the prospects.
“If everything goes as it should, the new government will be sworn in by next week,” Spadafora said.
Reporting By Giselda Vagnoni, editing by Philip Pullella
| ashraq/financial-news-articles | https://www.reuters.com/article/us-italy-politics-government-primeminist/new-italy-pm-could-be-independent-figure-top-5-star-member-says-idUSKBN1IC0L5 |
May 4 (Reuters) - James Hotels Ltd:
* SAYS COMMITTEE OF CREDITORS OF CO DECIDED THAT IN ABSENCE OF ANY VIABLE RESOLUTION PLAN, CO SHALL BE LIQUIDATED Source text - bit.ly/2rmyccG Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-james-hotels-says-committee-of-cre/brief-james-hotels-says-committee-of-creditors-decided-that-co-shall-be-liquidated-idUSFWN1SB0ME |
NEW YORK (Reuters) - Billionaire investor Warren Buffett and Berkshire Hathaway Inc Vice Chairman Charlie Munger are answering five hours of questions from shareholders, journalists and analysts at Berkshire’s annual meeting in Omaha, Nebraska.
Warren Buffett, CEO of Berkshire Hathaway Inc, tours the exhibit hall at the company's annual meeting in Omaha, Nebraska, U.S., May 5, 2018. REUTERS/Rick Wilking The weekend known as “Woodstock for Capitalists” is unique in corporate America, a celebration of Buffett’s success at a conglomerate whose businesses range from Geico insurance to the BNSF railroad to See’s candies to Ginsu knives.
Below are the comments from Buffett, the “Oracle of Omaha,” on a wide range of investments and other topics:
ON LARGE ACQUISITIONS OUTSIDE THE UNITED STATES “Outside the United States ... we are not embedded in (sellers’) minds in the same way. We are on the radar screen big-time in the United States ... I hope tomorrow I’ll get a call from Germany or Britain ... or Australia ... and we’ll get an opportunity.”
“In terms of getting a lot of money into something, many billions ... that can be tougher in markets that you’re unfamiliar working in. Accumulating a $6 or $8 or $10 billion position outside the United States can be very difficult.
“Charlie keeps pushing me to do more in China.”
ON AMAZON.COM AND ALPHABET “We’ve certainly looked that them ... the truth is, I’ve watched Amazon from the start and what Jeff Bezos has done is something close to a miracle. If I think something is a miracle, I tend not to bet on it. Bill Gates told me early on (to look at) Google ...
“I’ll miss a lot of things that I don’t feel I understand well enough, and there is no penalty in investing if you don’t swing at a ball that’s in the strike zone, as long as you swing at something at some point ... We’ll try to stay within our circle of competence, and Charlie and I generally agree on where that circle ends ... We’ll try to stay within our circle of competence ... We’re going to miss a lot of things.”
“I made the wrong decision on Google and Amazon.”
Munger: “I’ve been to Google headquarters - it looks like a kindergarten.”
ON CORPORATE PROFITS “American industry has gotten incredibly more profitable in aggregate in the last 20-30 years ... This has become somewhat an asset-light economy ... It is a changing world and (the biggest companies) will earn even more money with the tax rate going down.”
ON BERKSHIRE’S COMPANY CULTURE “I’ve been on 19 boards, and I’ve never seen a board like ours ... It’s a group of owner-oriented, Berkshire-conscious, business-savvy owners ... People opt into it to a great deal.”
ON APPLE’S CASH HOARD “It’s extremely hard to find acquisitions that would be accretive to Apple (in) the $50-$100 billion range. As I look around the horizon, I don’t see anything that would make sense for them, whereas I do see a business that they know everything about ... I’m delighted to see them repurchasing shares ... Mentally, you can say we own 5 percent of it ... Over the passage of time, we may own 6 or 7 percent because they repurchase shares.”
ON BNSF RAILROAD “We get a decent return on the capital-intensive businesses. We bought most at decent prices and they’ve been run very well.”
ON NEWSPAPERS No one except the Wall Street Journal, the New York Times and (now) the Washington Post has come up with a digital product that will in a significant way replace the revenue being lost as print newspapers lose cir and advertising ... the Journal, the Times and probably the Post have an economically viable model in the digital world.”
“Where the daily newspaper was a primary (source of information), they’re no longer primary.”
ON U.S. EXCEPTIONALISM “This country really, really works ... this country has six times the per capita GDP growth that it had when I was born ... this is a remarkable, remarkable country ... I would love to be a baby born in the United States today.”
ON CRYPTOCURRENCIES BEING A BUBBLE “(They’re) non-productive assets. It essentially will not deliver anything other than supposed scarcity. What does it produce itself? ... Anytime you buy non-productive assets, you are counting on someone later on buying a non-productive asset. It does come to a bad ending ... cryptocurrencies will come to bad endings.”
ON REINSURANCE “We will be in the reinsurance business 5 years from now, 10 years from now, 20 years from now ... It will be subject to more ups and downs than something like Geico ... but it will be an important part of Berkshire.”
ON WELLS FARGO SCANDAL “Wells Fargo is a company that proved the efficacy of incentives, and it’s just that they just had the wrong incentives ... The fact that you are going to have problems at some large institutions is not unique ... I see no reason why Wells Fargo as a company ... going forward is in any way inferior to the other big banks with which it competes. We have a large unrealized gain (in the stock). I like it as an investment. (The CEO) is correcting mistakes made by other people.”
ON MEASURING EFFECT OF TAX CUTS “It’s very, very difficult in economics to measure the impact of single variables. Every question you get in economics, you should then say, ‘And then what?’”
ON HEALTHCARE PARTNERSHIP WITH JPMORGAN AND AMAZON.COM “We simply have three organizations with leaders I admire and trust ... We have a hugely non-competitive medical cost in American business relating to any country in the world ... The motivations are not primarily profit making. We want our employees to get better medical services at lower cost .... we know the resistance will be unbelievable, and if we fail - at least we tried. I think we’ll probably have a CEO within a couple of months.”
Warren Buffett, CEO of Berkshire Hathaway Inc, talks to a reporter in the exhibit hall at the company's annual meeting in Omaha, Nebraska, U.S., May 5, 2018. REUTERS/Rick Wilking ON GE INVESTMENT IN 2008 “We probably could’ve extracted better terms. It might have been counterproductive in the end ... We could have made better purchases 3-4 months later. We didn’t push it to the limit.”
ON USING CASH FOR A SPECIAL DIVIDEND “We had a vote on whether people wanted a dividend ... the B-shares voted 47-1 against it. They expect us to do whatever we think makes sense for all shareholders, and if we thought we can’t use the money effectively in the business, we should get it out ... We won’t always be in a world of low interest rates or high private-market prices ... It’s very unlikely we’d pay out a big special dividend.”
ON PRICING RISK “The kind of risk that you can’t really look up in a book and see actuarially, I enjoy thinking through the pricing of that.”
ON INFLATION “Long-term bonds are a terrible investment at current rates, or anything close to current rates. Rates (on short-term bills) have gone up lately, so in 2018 my guess is we’ll have at least $500 million (more) in pre-tax income than we had last year.”
ON DEALS “I do not worry about the slowing deal flow. My phone is not ringing off the hook with good deals but we will still be the first (point) of call, irrespective of me or Charlie not being there.”
ON INVESTING IN GUN MANUFACTURERS “I do not believe in imposing my political opinions on the activities of our businesses.”
ON KRAFT HEINZ “The 3G people have gone into certain situations where there were probably ... A lot of expenses that were not delivering a dollar of value for a dollar expended. They made changes very fast to a situation that probably shouldn’t have existed in the first place.”
“Our managers have different techniques of keeping track of trying to maximize customer satisfaction at the same time that they don’t incur other than necessary costs.”
“Consumer packaged goods are still a terrific business.”
ON GEICO “The growth did slow down, but it’s not because we wanted it to. If you look at the first quarter, our margins were around 7 percent, which is actually a little more than we aimed for. The underwriting gains for margins are perfectly satisfactory now. And we’ve gained market share here and market share there. We will keep gaining market share.
“Geico is a jewel. It’s an incredible company. It’s saving its customers probably $4-5 billion a year against what they would be paying otherwise.”
ON PRESIDENT DONALD TRUMP’S PROPOSED TARIFFS BUFFETT: “We’ve seen steel costs increase somewhat. I don’t think either (the U.S. or China) will dig themselves into something that precipitates and continues any real trade war ... The benefits of trade are basically not visible. No one thinks about benefits day by day ... The negatives, and there are negatives, are very apparent and very painful.”
MUNGER: “The conditions in steel were almost unbelievably adverse to the American steel industry. Even Donald Trump can be right on some of this stuff.”
ON CHINA-U.S. TRADE
“In August, I will be 88, in a year that ends in an 8. Eight is a lucky number in China. ... The United States and China are going to be the two superpowers of the world, economically and in other ways for a long, long, long time. We have a lot of common interests and like any two big economic entities there are times when there will be tensions. But it is a win-win situation when the world trades.”
ON BERKSHIRE IN 50 YEARS “I think the reputation of Berkshire being a good home for companies ... I don’t think that’s dependent on me and Charlie.”
“The answer is I don’t know, and I didn’t know what it would look like 50 years ago ... We will be as shareholder-oriented as any large company in the world. Who knows what will be happening then.”
ON DURACELL BATTERIES “Duracell should be earning more money than it is now ... The brand is strong, very strong, the product line is very strong ... From a profit standpoint, it’s underperforming.”
ON GROCERY STORES “(McLane) is a very, very tight-margin business ... our competitors aren’t making much money either.”
ON PRECISION CASTPARTS “It’s a very, very good business. Manufacturers are very dependent on both the quality of the parts and the promptness of the delivery. Reliability ... is enormously important. (Our) contracts extend out many years ... it’s an acquisition with very long tails. Mark Donegan is a fabulous manager, I wouldn’t have bought it without him in charge… it’s got very long tails to the products that are being developed.”
Warren Buffett, CEO of Berkshire Hathaway Inc is seen on a screen at the company's annual meeting in Omaha, Nebraska, U.S., May 5, 2018. REUTERS/Rick Wilking MUNGER ON BUFFETT BEING ‘SEMI-RETIRED’
“He sits around reading most of the time and thinking, and every once in a while he talks on the phone. I can’t see any difference … Warren is very good at doing nothing.”
Compiled by Nick Zieminski and Jennifer Ablan in New York; Reporting by Trevor Hunnicutt and Jonathan Stempel in Omaha
| ashraq/financial-news-articles | https://in.reuters.com/article/berkshire-buffett-highlights/the-wit-and-wisdom-of-warren-buffett-oracle-of-omaha-idINKBN1I701E |
BEVERLY HILLS, Calif., May 30, 2018 /PRNewswire/ -- Live Nation Entertainment, the world's leading live entertainment company, has acquired a majority stake in ScoreMore Shows, one of the largest independent concert promoters and festival producers in the country, and the largest in Texas. The Austin-based company promotes hundreds of regional shows, and oversees a roster of rapidly growing music festivals, including JMBLYA, Neon Desert Music Festival, Mala Luna Music Festival, as well as launching J. Cole's Dreamville Music Festival.
Co-founded in 2010 by Sascha Stone Guttfreund and Claire Bogle, ScoreMore Shows has made a name for itself as a tastemaker, booking acts like J. Cole, Kendrick Lamar, Chance the Rapper and many others for small club shows early in their careers before they went on to become global superstars headlining amphitheaters and arenas.
ScoreMore Shows currently promotes concerts throughout the Southern United States, producing more than 200 concerts per year. The company also owns and operates three music festivals, including: JMBLYA, a traveling hip-hop festival founded in 2013 which this year included sold-out stops in Dallas, Austin, and Houston; Neon Desert in El Paso, which prides itself on being one of the first major U.S. music festivals to emphasize booking mainstream American acts alongside acclaimed international and Latin performers since inception in 2011; and Mala Luna Music Festival in San Antonio, a hip-hop and EDM focused event spanning Halloween weekend which debuted in 2016. The company also recently partnered with J. Cole and Dreamville Records to help produce the inaugural Dreamville Festival, which is set to take place September 15 in Raleigh, North Carolina.
"We started ScoreMore as teenagers and friends simply booking the artists we loved and believed in. Our success is the by-product of a talented team of like-minded individuals working together to build something special. ScoreMore has been very fortunate over the years in having many clients and partners who have been and continue to be loyal to us. Most importantly, we would not be where we are today without our incredible fans in the state of Texas and beyond who have continued to support our events for nearly a decade," said Guttfreund. "We are so excited about this new chapter for ScoreMore in having the resources, support and partnership of Live Nation. To have gotten our start in Austin, and ultimately be in business together with Live Nation is honestly a dream come true. This team does not take any of our success for granted, and we'd like to especially thank Michael, Bob, Jordan and the rest of the Live Nation family for giving us this incredible opportunity."
"Sascha and the ScoreMore team have a proven ability to form very early and long-lasting relationships with top talent, and their ground-breaking events, whether an intimate club show or a giant festival, really resonate with a diverse and passionate audience base, as well as with the leading artists that they present," said Bob Roux, President, Live Nation U.S. Concerts. "This company is just getting started, and we are all very excited about their future, as we know what they are going to accomplish even greater things as part of the Live Nation family."
With more than 100 festivals around the world, Live Nation is home to the world's largest and most diverse collection of festivals. The portfolio ranges from domestic powerhouses like Governor's Ball, BottleRock, and Bonnaroo, to premier European festivals such as Download, and Reading & Leeds, as well as new international additions like Australia's Splendour In The Grass and South America's Rock in Rio.
ABOUT SCOREMORE SHOWS:
ScoreMore Shows is a Texas-based music promoter that began booking concerts in 2009. ScoreMore Shows has made a name for itself by being a tastemaker, booking acts early in their careers in small clubs that have gone on to headline in arenas and amphitheaters. ScoreMore Shows routes tours through nine markets in the Southwest United States, producing more than 200 club shows per year, as well as JMBLYA, Mala Luna Music Festival, and its partnership in Neon Desert Music Festival. For more information, visit www.scoremoreshows.com .
ABOUT LIVE NATION ENTERTAINMENT:
Live Nation Entertainment (NYSE: LYV) is the world's leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts, and Live Nation Sponsorship. For additional information, visit www.livenationentertainment.com
View original content with multimedia: http://www.prnewswire.com/news-releases/live-nation-acquires-premier-texas-concert-promoter-and-festival-producer-scoremore-shows-300656060.html
SOURCE Live Nation Entertainment | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/30/pr-newswire-live-nation-acquires-premier-texas-concert-promoter-and-festival-producer-scoremore-shows.html |
All three major indexes rise 9 Hours Ago 06:27 06:27 | 7 Hrs Ago 11:27 11:27 | 6:34 PM ET Thu, 3 May 2018 | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/04/all-three-major-indexes-rise.html |
President Donald Trump on Thursday distanced himself from comments from his national security adviser that led North Korea to cast doubt on a planned summit and said as far as he knew the meeting with Kim Jong Un was still on track.
"North Korea is actually talking to us about times and everything else as though nothing happened," Trump told reporters in the Oval Office during a picture-taking session with NATO Secretary General Jens Stoltenberg .
Trump said he was not pursuing the so-called "Libya model" in getting North Korea to denuclearize. His national security adviser, John Bolton , had suggested the Libya model in comments on Sunday, prompting North Korea to threaten to cancel.
He said the deal he was looking at would protect Kim - "he would be there, he would be running his country, his country would be very rich," Trump said.
"The Libya model was a much different model. We decimated that country," he said.
He said the Libya model would only come into play if a deal cannot be reached with North Korea.
"We cannot let that country have nukes. We just can't do it," he said.
Trump told reporters that if the meeting happens then "it happens" and if not the United States will go on to the next thing. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/17/trump-says-north-korea-summit-is-still-on-track.html |
May 4, 2018 / 5:12 PM / Updated 21 minutes ago U.S. drillers add oil rigs for fifth straight week -Baker Hughes Reuters Staff 4 Min Read By Scott DiSavino May 4 (Reuters) - U.S. energy companies added oil rigs for a fifth week in a row as they follow through on plans to spend more on drilling this year with higher crude prices boosting their profits and pushing nationwide production to record highs. Drillers added nine oil rigs in the week to May 4, bringing the total count to 834, the highest level since March 2015, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. RIG-OL-USA-BHI The U.S. rig count, an early indicator of future output, is much higher than a year ago when 703 rigs were active as energy companies have been ramping up production in tandem with OPEC's efforts to cut global output, in a bid to take advantage of rising prices. U.S. crude futures traded near $70 a barrel this week, their highest since November 2014. That is up sharply from the $50.85 average hit in 2017 and $43.47 in 2016. Looking ahead, futures were trading around $69 for the balance of 2018 and $63 for calendar 2019 . U.S. financial services firm Cowen & Co last week said 58 of the roughly 65 exploration and production (E&P) companies they track have already provided guidance indicating an 11 percent increase this year in planned capital spending. Cowen said those E&Ps that have reported capital plans for 2018 expected to spend a total of $80.5 billion in 2018, up from an estimated $72.4 billion in 2017. Analysts at Simmons & Co, energy specialists at U.S. investment bank Piper Jaffray, last week forecast average total oil and natural gas rig count would reach 1,015 in 2018 and 1,130 in 2019. So far this year, the total number of oil and gas rigs active in the United States has averaged 980, up sharply from an average of 876 rigs in 2017 and on track to be the highest since 2014, which averaged 1,862 rigs. Most rigs produce both oil and gas. Shale oil producer Pioneer Natural Resources Co said it is considering adding more Permian drilling rigs later in 2018 and is likely to increase next year's capital budget, which was previously forecast at $2.9 billion. Continental Resources Inc , one of the most-prolific U.S. shale companies, posted a better-than-expected quarterly profit on Wednesday, thanks to rising oil prices and spiking output in its core North Dakota Bakken shale operations. For the second consecutive quarter, Continental bested rival Whiting Petroleum Corp to be the largest oil producer in the Bakken, even as Whiting's output rose over 8 percent in the first quarter. Apache Corp raised its full-year U.S. output forecast to 250,000-258,000 barrels of oil equivalent per day from a previous range of 245,000-255,000 boepd, driven mostly by more operating wells in the first quarter. The U.S Energy Information Administration on Monday said U.S. oil production jumped to a record high 10.3 million barrels per day (bpd) in February. (Reporting by Scott DiSavino Editing by Marguerita Choy) | ashraq/financial-news-articles | https://www.reuters.com/article/usa-rigs-baker-hughes/u-s-drillers-add-oil-rigs-for-fifth-straight-week-baker-hughes-idUSL1N1S90MK |
May 9 (Reuters) - Westaim Corp:
* THE WESTAIM CORPORATION REPORTS 2018 FIRST QUARTER RESULTS
* WESTAIM CORP - QTRLY NET INCOME OF $5.9 MILLION OR $0.04 PER SHARE Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-the-westaim-qtrly-net-income-of-59/brief-the-westaim-qtrly-net-income-of-5-9-mln-or-0-04-per-share-idUSASC0A165 |
WALDORF, Md., May 02, 2018 (GLOBE NEWSWIRE) -- The Community Financial Corporation (NASDAQ:TCFC) (the “Company”), the holding company for Community Bank of the Chesapeake (the “Bank”), reported its results of operations for the first quarter ended March 31, 2018. Highlights at and for the three months ended March 31, 2018 (“2018Q1”) include:
Three Month Highlights
Completed acquisition of $200 million County First Bank (“County First”) on January 1, 2018, increasing the Company’s asset size to just under $1.6 billion. In January 2018, the Company disclosed its intentions to close four of the five acquired County First branches during the second quarter with the La Plata downtown branch remaining open.
Gross loans increased 11.3% or $129.6 million from $1,150.0 million at December 31, 2017 (“2017Q4”) to $1,279.7 million at 2018Q1, primarily due to County First.
Transaction deposit accounts increased from 59% of deposits at 2017Q4 to 63% of deposits at 2018Q1.
Retention of County First deposit relationships have been successful to date. Acquired deposit balances increased $2.3 million from $199 million at the acquisition date to $201 million at March 31, 2018.
Wholesale funding as a percentage of assets decreased from 18.7% at 2017Q4 to 12.5% at 2018Q1. Wholesale funding includes traditional brokered deposits and Federal Home Loan Bank (“FHLB”) advances.
Classified loans as a percentage of assets decreased 74 basis points from 3.58% at December 31, 2017 to 2.84% at March 31, 2018.
Non-accrual loans, OREO and TDRs to total assets increased five basis points from 1.71% at December 31, 2017 to 1.76% at March 31, 2018.
Tier 1 leverage ratio increased to 9.35% compared to 8.77% at December 31, 2017.
Net income of $1.2 million, or $0.22 per share, compared to a net loss of $459,000, or ($0.10) per share, in the quarter ended December 31, 2017 (“2017Q4”). The Company’s return on average assets (“ROAA”) and return on average common equity (“ROACE”) were 0.31% and 3.33% in 2018Q1 compared to (0.13%) and (1.62%) in the prior quarter.
Operating net income 1 increased $845,000 (33.7%) to $3.4 million, or $.0.61 per share, compared to $2.5 million, or $0.54 per share, in the prior quarter. The Company’s operating ROAA and operating ROACE were 0.85% and 9.15% in 2018Q1 compared to 0.72% and 8.89% in the prior quarter.
Net interest margin increased 25 basis points from 3.29% in 2017Q4 to 3.54% in 2018Q1. Net interest income increased $2.2 million or 20.8%, to $12.4 million in 2018Q1 compared to 10.7 million in 2017Q4.
Noninterest expense of $11.7 million in 2018Q1 increased $3.9 million compared to $7.7 million in the prior quarter, primarily due to the County First acquisition. Merger and acquisition costs of $2.9 million were recorded in 2018Q1 as well as additional costs related to supporting five operating County First branches. The Company will continue to carry additional noninterest expense in the second and third quarters until the four branch closures are complete and duplicate vendors and processes are discontinued.
Noninterest expense of $8.8 million in 2018Q1, excluding merger and acquisition costs, increased $1.4 million compared to $7.4 million in the prior quarter due to the impact of County First. These costs reflected management’s expected expense run rate of between $8.9 and $9.1 million for the first two quarters of 2018.
The GAAP efficiency ratio was 83.81% in 2018Q1 compared to 65.79% in 2017Q4. The Non-GAAP (or “operating”) efficiency ratio 2 , which excludes merger and acquisition costs, OREO gains and losses and other non-core activities, was 62.39% in 2018Q1 compared to 62.16% in 2017Q4.
“Once our acquisition was approved by our regulators in the fall of 2017, we began diligently working with the County First Board and management to ensure an orderly and smooth transition of our most important resource – our customers,” stated Michael L. Middleton, Chairman of the Board. “After the January closing, our management team seamlessly integrated the various customer delivery platforms into our system. This transaction has deepened our market penetration and positions us for future growth throughout our footprint.”
“Return on average assets and earnings per share improved to 0.31% and $0.22 in the first quarter of 2018 compared (0.13%) and $(0.10) in the fourth quarter. Operating return on average assets and operating earnings per share improved to 0.85% and $0.61 in the first quarter of 2018 from 0.72% and $0.54 in the fourth quarter,” stated William J. Pasenelli, Chief Executive Officer and Vice-Chairman of the Board. “We were very excited to complete our merger on January 1, 2018. Community Bank of the Chesapeake is now even better positioned at $1.6 billion in assets to compete in the Southern Maryland market given our strong leadership team, experienced bankers, distinctive product capabilities and strong balance sheet.
The improvement in core earnings compared to the prior quarter was the result of increased net interest income and net interest margin, while continuing our focus on expense control. Net interest margin increased 25 basis points to 3.54% in the first quarter of 2018 compared to 3.29% in the fourth quarter of 2017. Net interest margin increased due to the acquisition of low cost transaction deposits and higher yielding loans from County First, the continued trend of higher loan yields on repricing loans and new loans, and the pay down of wholesale funding during the first quarter. The accretion of the purchase accounting fair value mark was $321,000, representing approximately 10 basis points of the net interest margin expansion.
The operating efficiency ratio was stable at 62.39% in the first quarter of 2018 compared to 62.16% in the fourth quarter of 2017. It was encouraging to see top line revenue keeping pace with core operating expenses during the first quarter as we are not expecting to see the full impact of cost savings until the second half of 2018. Management remains focused on controlling expenses and the successful integration of County First customers. We will continue to mitigate the risks that NIM expansion will not continue for the balance of 2018 by focusing on controlling expenses.”
1 The Company defines operating net income as net income before merger and acquisition costs and the one-time deferred tax adjustment recorded for Tax Cuts and Jobs Act in the three months ended December 31, 2017. Operating earnings per share, operating return on average assets and operating return on average common equity is calculated using adjusted operating net income. See Non-GAAP reconciliation schedules.
Income Statement – Three Months Ended March 31, 2018
The Company reported net income of $1.2 million, or $0.22 per share, for the three months ended March 31, 2018 (“2018Q1”). This compares to a net loss of $459,000, or ($0.10) per share, for the three months ended December 31, 2017 (“2017Q4”) and net income of $2.3 million, or $0.51 per share, for the three months ended March 31, 2017 (“2017Q1”). The increase in net income from 2017Q4 resulted primarily from the $2.7 million in additional income tax expense booked in the fourth quarter of 2017 from the revaluation of deferred tax assets due to the reduction in the corporate income tax rate under the recently enacted Tax Cuts and Jobs Act. The decrease in net income from 2017Q1 resulted primarily from $2.9 million in merger-related costs, which included $1.3 million of termination costs of County First’s core processing contract as well as investment banking, legal fees and the costs of employee agreements and severance for terminations that occurred as of the end of the quarter. In addition, the Company will continue to carry additional noninterest expense in the second and third quarters until the four branch closures are complete and duplicate vendors and processes are discontinued. The increase in noninterest expense was partially offset by an increase in net interest income realized from the integrated operations of County First associated with the January 1, 2018 acquisition and from a lower effective tax rate.
2 The Company maintains GAAP and Non-GAAP measures for net operating expenses and noninterest expenses to calculate Non-GAAP ratios. Adjusted net operating expense and adjusted noninterest expense exclude merger and acquisition costs, OREO gains and losses and expenses, and gains and losses on the sale of investments and other assets not considered part of recurring operations. See Reconciliation of GAAP and Non-GAAP financial measures for the calculation of the below ratios:
Efficiency Ratio - noninterest expense divided by the sum of net interest income and noninterest income.
Net Operating Expense Ratio - noninterest expense less noninterest income divided by average assets.
The Company reported operating net income, which excludes merger-related expenses, of $3.4 million, or $0.61 per share, in 2018Q1. This compares to operating net income of $2.5 million, or $0.54 per share, in 2017Q4 and operating net income of $2.3 million, or $0.51 per share, in 2017Q1. Compared to 2017Q4 and 2017Q1, operating net income reflects higher net interest income and higher noninterest income partially offset by higher noninterest expense, much of which is associated with the acquisition of County First.
Net interest income totaled $12.9 million in 2018Q1, which represents a $2.1 million, or 19.7%, increase from $10.8 million in 2017Q4 and a $2.2 million, or 20.8%, increase from $10.7 million in 2017Q1. Average total earning assets increased $149.0 million, or 11.4%, in 2018Q1 to $1,456.9 million, compared to $1,307.9 million in 2017Q4 and increased $202.4 million, or 16.1%, compared to $1,254.5 million in 2017Q1. The increase in average total earning assets in 2018Q1 from 2017Q4 included an increase in average loans of $141.1 million, or 12.5%, and an increase in average investments of $7.9 million, or 4.5%, primarily as a result of the acquisition of County First. The increase in average total earning assets in 2018Q1 from 2017Q1 resulted primarily from a $191.0 million, or 17.6%, increase in average loans as a result of organic growth and the acquisition of County First and a $11.4 million, or 6.6%, increase in average investments.
Net interest margin was 3.54% in 2018Q1, representing a 25 basis point increase from 3.29%. The increase in net interest margin from 2017Q4 resulted primarily from a 19 basis point increase in yield on loans to 4.63%, driven by several quarters of increasing contractual repricing on the Company’s legacy portfolio, the recognition of the acquired performing fair value mark related to the acquisition of County First loans and the addition of higher yielding loans from County First. Additionally, net interest margin was positively impacted by the acquisition of County First’s lower cost transaction deposit accounts and the pay down of wholesale funding with County First cash and the sale of securities in January 2018. The Company’s cost of funds decreased four basis points from 0.88% in 2017Q4 to 0.84% in 2018Q1. During 2018Q1, the County First acquisition and the management of funding more than offset increased rates on deposit accounts and wholesale funding due to the Federal Reserve’s actions to raise short-term interest rates.
Net interest margin of 3.54% was 14 basis points higher than the 3.40% in 2017Q1. The increase in net interest margin from 2017Q1 resulted primarily from a 21 basis point increase in yield on loans, due primarily to higher contractual interest rates on new and repricing loans, the recognition of the acquired performing fair value mark related to County First and the addition of higher yielding loans from the County First acquisition. These increases were partially offset by a decrease in margin due to a 17 basis point increase in the cost of interest-bearing liabilities. The Company’s cost of funds increased 10 basis points from 0.74% in 2017Q1 to 0.84% in 2018Q1.
Noninterest income of $1.0 million in 2018Q1 increased by $31,000 compared to 2017Q4 and by $151,000 compared to 2017Q1. The increase in noninterest income was primarily due to additional service charge income from the acquisition of County First’s deposit relationships and from the monthly income earned from approximately $6.3 million of Bank Owned Life Insurance acquired in the transaction.
Noninterest expenses increased $3.9 million, or 50.6%, to $11.7 million in 2018Q1 compared to $7.8 million in 2017Q4, and increased $4.3 million, or 58.1%, compared to $7.4 million in 2017Q1. Adjusted noninterest expense, which excludes merger-related expenses and OREO related expenses increased $1.4 million, or 19.2%, to $8.7 million in 2018Q1 compared to $7.3 million in 2017Q4, and increased $1.5 million, or 21.2%, compared to $7.2 million in 2017Q1. Overall the increases in adjusted noninterest expenses comparing 2018Q1 to 2017Q4 and 2017Q1 were due primarily to increases in salary and employee benefits due to the addition of County First employees. Other increases from the comparable periods were to occupancy expense, data processing expense, core deposit intangible amortization, advertising expense and FDIC insurance expense, all of which were due primarily to the acquisition of County First. The Company has scheduled the closing of four of the five acquired branches in May 2018 with a positive impact on the Company’s expense run rate expected in the second half of 2018 due to lower overhead.
The Company’s GAAP efficiency ratio was 83.81% in 2018Q1 compared to 65.79% in 2017Q4 and 63.89% in 2017Q1. The operating efficiency ratio, which excludes merger and acquisition costs, OREO gains and losses and other non-core activities, was 62.39% and 62.16% and 62.20% for the same comparable periods. The Company’s GAAP net operating expense ratio was 2.69% in 2018Q1 compared to 1.93% in 2017Q4 and 1.94% in 2017Q1. The Non-GAAP net operating expense ratio, which excludes merger and acquisition costs, investment gains and losses, OREO gains and losses and other non-core activities, was 1.94% and 1.81% and 1.89% for the same comparable periods. The following is a summary breakdown of noninterest expense:
Three Months Ended (dollars in thousands) March 31, 2018 December 31, 2017 $ Change % Change Salary and employee benefits $ 5,047 $ 4,191 $ 856 20.4 % OREO Valuation Allowance and Expenses 114 123 (9 ) (7.3 %) Merger and acquisition costs 2,868 335 2,533 756.1 % Operating Expenses 3,638 3,097 541 17.5 % Total Noninterest Expense $ 11,667 $ 7,746 $ 3,921 50.6 %
Three Months Ended March 31, (dollars in thousands) 2018 2017 $ Change % Change Salary and employee benefits $ 5,047 $ 4,313 $ 734 17.0 % OREO Valuation Allowance and Expenses 114 195 (81 ) (41.5 %) Merger and acquisition costs 2,868 17 2,851 n/a Operating Expenses 3,638 2,854 784 27.5 % Total Noninterest Expense $ 11,667 $ 7,379 $ 4,288 58.1 % The Company’s consolidated effective tax rate was 30.4% in 2018Q1, due to lower tax rates enacted with the passage of the Tax Cut and Jobs Act of 2017 partially offset by certain non-deductible merger-related expenses, true-ups to deferred tax assets and holding company expenses that are not deductible for state tax purposes. The Company’s normal effective rate as of March 31, 2018 was 27.52% (19.27% for federal; 8.25% for state). The Company’s consolidated effective tax rate was 111.48% in 2017Q4 due to $2.7 million in additional income tax expense from the revaluation of deferred tax assets as a result of the reduction in the corporate income tax rate of the Tax Cuts and Jobs Act and 38.2% in 2017Q1.
Balance Sheet
Total assets increased $171.0 million, or 12.2%, to $1.6 billion at 2018Q1 compared to total assets of $1.4 billion at 2017Q4 primarily as a result of the acquisition of County First. Cash and cash equivalents increased $19.0 million, or 123.5%, to $34.5 million and total securities increased $1.7 million, to $169.2 million. Gross loans increased 11.3% or $129.6 million from $1,150.0 million at 2017Q4 to $1,279.7 million at 2018Q1, primarily due to the merger. The Bank acquired $144.1 million of County First principal loan balances on January 1, 2018. During the first quarter of 2018, there were several County First relationships that the Company encouraged to seek other financing. This contributed to a decrease in the first quarter of $12.3 million in acquired principal balances. Net growth of the Bank’s legacy portfolio was $781,000 with commercial real estate growing $17.4 million at an annual rate of 9.6%, substantially offset by payoffs of other commercial legacy loans primarily from customer sales of underlying collateral.
The acquisition of County First led to a slight shift in loan mix at 2018Q1 compared to 2017Q4. The combination of commercial and industrial and owner-occupied real estate loans increased $21 million from $378 million (33% of loans) at 2017Q1 to $399 million (31% of loans) at 2018Q1. Regulatory concentrations for non-owner occupied commercial real estate and construction decreased from 309.6% and 65.5% at 2017Q4 to 294.2% and 65.3% at 2018Q1. The following is a breakdown of the Company’s loan portfolio at March 31, 2018 and December 31, 2017:
(Unaudited) * BY LOAN TYPE March 31, 2018 % December 31, 2017 % Commercial real estate $ 817,576 63.88 % $ 727,314 63.25 % Residential first mortgages 166,390 13.00 % 170,374 14.81 % Residential rentals 129,026 10.08 % 110,228 9.58 % Construction and land development 28,226 2.21 % 27,871 2.42 % Home equity and second mortgages 39,481 3.09 % 21,351 1.86 % Commercial loans 52,198 4.08 % 56,417 4.91 % Consumer loans 853 0.07 % 573 0.05 % Commercial equipment 45,905 3.59 % 35,916 3.12 % Gross loans 1,279,655 100.00 % 1,150,044 100.00 % Net deferred costs (fees) 1,118 0.09 % 1,086 0.09 % Total loans, net of deferred costs $ 1,280,773 $ 1,151,130 * Derived from audited financial statements. In terms of accounting designations, compared to 2017Q4: (i) non-acquired loans, which include certain renewed and/or restructured acquired performing loans that are re-designated as non-acquired, increased $4.1 million, or 3.6%, to $1,154.2 million; (ii) acquired performing loans increased $121.6 million to $121.6 million; and (iii) purchase credit impaired (“PCI”) loans increased $3.9 million to $3.9 million. At 2018Q1 performing acquired loans, which totaled $121.6 million, included a $2.3 million net acquisition accounting fair market value adjustment, representing a 1.87% “mark;” and PCI loans which totaled $3.9 million, included a $666,000 adjustment, representing a 14.68% “mark.”
Total deposits increased $179.7 million, or 16.2%, to $1,285.9 million at 2018Q1, compared to $1,106.2 million at 2017Q4 due primarily to the acquisition of County First. Noninterest bearing demand deposits increased $69.8 million, or 43.7%, to $229.6 million (17.9% of total deposits). The Company uses both traditional and reciprocal brokered deposits. Traditional brokered deposits were $100.2 million at 2018Q1 compared to $118.9 million at 2017Q4. Reciprocal brokered deposits are used to maximize FDIC insurance available to our customers. Reciprocal brokered deposits were $99.9 million at 2018Q1 compared to $92.9 million at 2017Q4. Transaction deposit accounts increased $152.8 million from $654.6 million (59% or deposits) at 2017Q4 to $807.5 million (63% of deposits) at 2018Q1. This contributed to deceasing the Bank’s cost of funds four basis points from 0.88% in 2017Q4 to 0.84% in 2018Q1.
FHLB long-term debt and short-term borrowings (“FHLB advances”) decreased $46.0 million, or 32.2%, to $97.0 million at 2018Q1 compared to $143.0 million at 2017Q4. Wholesale funding, which includes traditional brokered deposits and FHLB advances, decreased $64.7 million from $261.9 million (18.7% of assets) at 2017Q4 to $197.2 million (12.5% of assets) at 2018Q1. Cash and the sale of securities from the County First acquisition were used to pay down debt and brokered deposits. The Company uses brokered deposits and other wholesale funding to supplement funding when loan growth exceeds core deposit growth and for asset-liability management purposes.
Total stockholders’ equity increased $35.7 million, or 32.5%, to $145.7 million at 2018Q1 compared to $110.0 million at 2017Q4. This increase primarily resulted from the issuance of 918,526 shares of common stock, valued at $35.6 million (based on the $38.78 per share closing price on the last trading day prior to consummation), as the stock component of the merger consideration paid in the County First acquisition. The Company’s ratio of tangible common equity to tangible assets increased to 8.44% at 2018Q1 from 7.82% at 2017Q4 3 . The Company’s Common Equity Tier 1 (“CET1”) ratio was 10.31% at 2018Q1 compared to 9.51% at 2017Q4. The Company remains well capitalized with a Tier 1 capital to average assets (leverage ratio) of 9.35% at 2018Q1 compared to 8.79% at 2017Q4.
3 The Company had no intangible assets prior to January 1, 2018. Therefore, tangible common equity and tangible assets were the same as common equity and total assets.
Asset Quality
The Company continues to pursue its approach of maximizing contractual rights with individual classified customer relationships. The objective is to expeditiously resolve on-performing or substandard credits that are not likely to become performing or passing credits in a reasonable timeframe. Management believes this strategy is in the best long-term interest of the Company.
Non-accrual loans and OREO to total assets increased from 1.00% at 2017Q4 to 1.13% at 2018Q1. Non-accrual loans, OREO and TDRs to total assets increased $3.7 million from $24.1 million or 1.71% at 2017Q4 to $27.8 million or 1.76% at 2018Q1. The $3.7 million increase in non-accrual balances was principally due to two well-secured commercial customer relationships that became non-accrual in 2018Q1. The first relationship is a $2.3 million in loans with short-term operational cash flow shortfalls that may be addressed with additional working capital provided by an investor. For the second relationship, in 2018Q1, the Bank charged-off $200,000 of a $2.1 million dollar loan to adjust the loan’s carrying value to the fair value of the collateral, which is a property awaiting the court’s foreclosure ratification. The property was purchased at the foreclosure auction by a third party with no financing being provided by the Bank.
Classified assets decreased $5.6 million from $50.3 million at 2017Q4 to $44.7 million at 2018Q1. Management considers classified assets to be an important measure of asset quality. The following is a breakdown of the Company’s classified and special mention assets at March 31, 2018 and December 31, 2017, 2016, 2015 and 2014, respectively:
Classified Assets and Special Mention Assets (dollars in thousands) As of
March 31, 2018 As of
December 31, 2017 As of
December 31, 2016 As of
December 31, 2015 As of
December 31, 2014 Classified loans Substandard $ 34,772 $ 40,306 $ 30,463 $ 31,943 $ 46,735 Doubtful - - 137 861 - Loss - - - - - Total classified loans 34,772 40,306 30,600 32,804 46,735 Special mention loans 2,033 96 - 1,642 5,460 Total classified and special mention loans $ 36,805 $ 40,402 $ 30,600 $ 34,446 $ 52,195 Classified loans 34,772 40,306 30,600 32,804 46,735 Classified securities 612 651 883 1,093 1,404 Other real estate owned 9,352 9,341 7,763 9,449 5,883 Total classified assets $ 44,736 $ 50,298 $ 39,246 $ 43,346 $ 54,022 Total classified assets as a
percentage of total assets 2.84 % 3.58 % 2.94 % 3.79 % 4.99 % Total classified assets as a
percentage of Risk Based Capital 24.81 % 32.10 % 26.13 % 30.19 % 39.30 % The company reported a $500,000 provision for loan loss expense in 2018Q1 compared to $30,000 of provision recorded in 2017Q4, and a provision of $380,000 in 2017Q1. Allowance for loan loss levels decreased to 0.82% of total loans at 2018Q1 compared to 0.91% at 2017Q4 due to the addition of County First loans for which no allowance was provided for in accordance with purchase accounting standards. Net charge-offs of $544,000 were recognized in 2018Q1 compared to net recoveries of $50,000 in 2017Q4, and net charge-offs of $131,000 in 2017Q1. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to: overall loss experience; current economic conditions; size, growth and composition of the loan portfolio; financial condition of the borrowers; current appraised values of underlying collateral and other relevant factors that, in management’s judgment, warrant recognition in determining an adequate allowance. Improvements to baseline charge-off factors for the periods used to evaluate the adequacy of the allowance as well as improvements in some qualitative factors, such as slower portfolio growth, were offset by increases in other qualitative factors. The specific allowance is based on management’s estimate of realizable value for particular loans. Management believes that the allowance is adequate.
About The Community Financial Corporation - Headquartered in Waldorf, MD, The Community Financial Corporation is the bank holding company for Community Bank of the Chesapeake, a full-service commercial bank with assets of approximately $1.6 billion. Through its branch offices and commercial lending centers, Community Bank of the Chesapeake offers a broad range of financial products and services to individuals and businesses. The Company’s banking centers are located at its main office in Waldorf, Maryland, and branch offices in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and California, Maryland; and downtown Fredericksburg, Virginia. More information about Community Bank of the Chesapeake can be found at www.cbtc.com .
Use of Non-GAAP Financial Measures - Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. The Company’s management uses these non-GAAP financial measures, and believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
Forward-looking Statements - This news release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements include, without limitation, those relating to the Company’s and Community Bank of the Chesapeake’s future growth and management’s outlook or expectations for revenue, assets, asset quality, profitability, business prospects, net interest margin, non-interest revenue, allowance for loan losses, the level of credit losses from lending, liquidity levels, capital levels, or other future financial or business performance strategies or expectations, and any statements of the plans and objectives of management for future operations products or services, including the expected benefits from, and/or the execution of integration plans relating to the County First acquisition; plans regarding branch closings or consolidation; any statement of expectation or belief; projections related to certain financial metrics; and any statement of assumptions underlying the foregoing. These forward-looking statements express management’s current expectations or forecasts of future events, results and conditions, and by their nature are subject to and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Factors that might cause actual results to differ materially from those made in such statements include, but are not limited to: the synergies and other expected financial benefits from County First acquisition may not be realized within the expected time frames; costs or difficulties related to integration matters might be greater than expected; general economic trends; changes in interest rates; loss of deposits and loan demand to other financial institutions; substantial changes in financial markets; changes in real estate value and the real estate market; regulatory changes; the possibility of unforeseen events affecting the industry generally; the uncertainties associated with newly developed or acquired operations; the outcome of litigation that may arise; market disruptions and other effects of terrorist activities; and the matters described in “Item 1A Risk Factors” in the Company’s Annual Report on Form 10-K for the Year Ended December 31, 2017, and in its other Reports filed with the Securities and Exchange Commission (the “SEC”). The Company’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov . The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required under the rules and regulations of the SEC.
Data is unaudited as of March 31, 2018. This selected information should be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.
CONTACTS:
William J. Pasenelli, Chief Executive Officer
Todd L. Capitani, Chief Financial Officer
888.745.2265
THE COMMUNITY FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, (dollars in thousands, except per share amounts ) 2018 2017 Interest and Dividend Income Loans, including fees $ 14,726 $ 11,970 Interest and dividends on investment securities 1,095 946 Interest on deposits with banks 72 6 Total Interest and Dividend Income 15,893 12,922 Interest Expense Deposits 1,956 1,268 Short-term borrowings 283 147 Long-term debt 764 833 Total Interest Expense 3,003 2,248 Net Interest Income 12,890 10,674 Provision for loan losses 500 380 Net Interest Income After Provision For Loan Losses 12,390 10,294 Noninterest Income Loan appraisal, credit, and miscellaneous charges 53 47 Net gains (losses) on sale of OREO - 27 Income from bank owned life insurance 226 191 Service charges 752 610 Total Noninterest Income 1,031 875 Noninterest Expense Salary and employee benefits 5,047 4,313 Occupancy expense 766 653 Advertising 159 108 Data processing expense 683 577 Professional fees 352 320 Merger and acquisition costs 2,868 17 Depreciation of premises and equipment 199 199 Telephone communications 99 51 Office supplies 40 32 FDIC Insurance 198 166 OREO valuation allowance and expenses 114 195 Core deposit intangible amortization 240 - Other 902 748 Total Noninterest Expense 11,667 7,379 Income before income taxes 1,754 3,790 Income tax expense 533 1,448 Net Income $ 1,221 $ 2,342 Earnings Per Common Share Basic $ 0.22 $ 0.51 Diluted $ 0.22 $ 0.51 Cash dividends paid per common share $ 0.10 $ 0.10
THE COMMUNITY FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES THREE MONTHS ENDED Reconciliation of US GAAP Net Income, Earnings Per Share (EPS), Return on Average Assets (ROAA) and Return on Average Common Equity (ROACE) to Non-GAAP Operating Net Income, EPS, ROAA and ROACE This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger and acquisition costs and the fourth quarter 2017 income tax expense attributable to the revaluation of deferred tax assets as a result of the reduction in the corporate income tax rate under the recently enacted Tax Cuts and Jobs Act. These expenses are not considered part of recurring operations, such as “operating net income,” “operating earnings per share,” “operating return on average assets,” and “operating return on average common equity.” These non-GAAP measures are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company. (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (dollars in thousands, except per share amounts) March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Net (loss) income (as reported) $ 1,221 $ (459 ) $ 2,782 $ 2,543 $ 2,342 Impact of Tax Cuts and Jobs Act - 2,740 - - - Merger and acquisition costs (net of tax) 2,135 230 257 227 10 Non-GAAP operating net income $ 3,356 $ 2,511 $ 3,039 $ 2,770 $ 2,352 Income before income taxes (as reported) $ 1,754 $ 3,997 $ 4,499 $ 4,079 $ 3,790 Merger and acquisition costs ("M&A") 2,868 335 239 238 17 Adjusted pretax income 4,622 4,332 4,738 4,317 3,807 Income tax expense 1,266 1,821 1,699 1,547 1,455 Non-GAAP operating net income $ 3,356 $ 2,511 $ 3,039 $ 2,770 $ 2,352 GAAP diluted earnings per share ("EPS") $ 0.22 $ (0.10 ) $ 0.60 $ 0.55 $ 0.51 Non-GAAP operating diluted EPS before M&A $ 0.61 $ 0.54 $ 0.66 $ 0.60 $ 0.51 GAAP return on average assets ("ROAA") 0.31 % -0.13 % 0.80 % 0.74 % 0.70 % Non-GAAP operating ROAA before M&A 0.85 % 0.72 % 0.87 % 0.81 % 0.70 % GAAP return on average common equity ("ROACE") 3.33 % -1.62 % 9.99 % 9.36 % 8.78 % Non-GAAP operating ROACE before M&A 9.15 % 8.89 % 10.92 % 10.19 % 8.81 % Net income (as reported) $ 1,221 $ (459 ) $ 2,782 $ 2,543 $ 2,342 Weighted average common shares outstanding 5,547,715 4,616,515 4,633,417 4,635,483 4,630,398 Average assets $ 1,581,538 $ 1,398,945 $ 1,396,459 $ 1,373,832 $ 1,337,814 Average equity 146,712 113,017 111,357 108,720 106,741
THE COMMUNITY FINANCIAL CORPORATION AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME UNAUDITED For the Three Months Ended March 31, 2018 For the Three Months Ended 2018 2017 March 31, 2018 December 31, 2017 Average Average Average Average Average Yield/ Average Yield/ Average Yield/ Average Yield/ dollars in thousands Balance Interest Cost Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets Interest-earning assets: Loan portfolio $ 1,273,355 $ 14,726 4.63 % $ 1,082,401 $ 11,970 4.42 % $ 1,273,355 $ 14,726 4.63 % $ 1,132,232 $ 12,560 4.44 % Investment securities, federal funds sold and interest-bearing deposits 183,567 1,167 2.54 % 172,131 952 2.21 % 183,567 1,167 2.54 % 175,663 1,013 2.31 % Total Interest-Earning Assets 1,456,922 15,893 4.36 % 1,254,532 12,922 4.12 % 1,456,922 15,893 4.36 % 1,307,895 13,573 4.15 % Cash and cash equivalents 26,053 11,289 26,053 16,368 Goodwill 10,145 - 10,145 - Core deposit intangible 3,479 - 3,479 - Other assets 84,939 71,993 84,939 74,682 Total Assets $ 1,581,538 $ 1,337,814 $ 1,581,538 $ 1,398,945 Liabilities and Stockholders' Equity Interest-bearing liabilities: Savings $ 74,944 $ 12 0.06 % $ 51,419 $ 6 0.05 % $ 74,944 $ 12 0.06 % $ 54,127 $ 7 0.05 % Interest-bearing demand and money market accounts 496,995 543 0.44 % 412,077 308 0.30 % 496,995 543 0.44 % 424,767 408 0.38 % Certificates of deposit 469,248 1,401 1.19 % 440,527 954 0.87 % 469,248 1,401 1.19 % 445,467 1,297 1.16 % Long-term debt 50,377 285 2.26 % 61,882 366 2.37 % 50,377 285 2.26 % 55,503 286 2.06 % Short-term debt 76,533 283 1.48 % 77,878 147 0.76 % 76,533 283 1.48 % 95,767 323 1.35 % Subordinated Notes 23,000 359 6.24 % 23,000 359 6.24 % 23,000 359 6.24 % 23,000 359 6.24 % Guaranteed preferred beneficial interest - - in junior subordinated debentures 12,000 120 4.00 % 12,000 108 3.60 % 12,000 120 4.00 % 12,000 120 4.00 % Total Interest-Bearing Liabilities 1,203,097 3,003 1.00 % 1,078,783 2,248 0.83 % 1,203,097 3,003 1.00 % 1,110,631 2,800 1.01 % Noninterest-bearing demand deposits 219,703 142,189 219,703 164,515 Other liabilities 12,026 10,101 12,026 10,782 Stockholders' equity 146,712 106,741 146,712 113,017 Total Liabilities and Stockholders' Equity $ 1,581,538 $ 1,337,814 $ 1,581,538 $ 1,398,945 Net interest income $ 12,890 $ 10,674 $ 12,890 $ 10,773 Interest rate spread 3.36 % 3.29 % 3.36 % 3.14 % Net yield on interest-earning assets 3.54 % 3.40 % 3.54 % 3.29 % Ratio of average interest-earning assets to average interest bearing liabilities 121.10 % 116.29 % 121.10 % 117.76 % Cost of funds 0.84 % 0.74 % 0.84 % 0.88 % Cost of deposits 0.62 % 0.48 % 0.62 % 0.63 % Cost of debt 2.59 % 2.24 % 2.59 % 2.34 % Note: Loan average balance includes non-accrual loans. There are no tax equivalency adjustments. There was $321,000 of accretion interest during the three months ended March 31, 2018.
THE COMMUNITY FINANCIAL CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) * (dollars in thousands, except per share amounts) March 31, 2018 December 31, 2017 Assets Cash and due from banks $ 29,739 $ 13,315 Federal funds sold 730 - Interest-bearing deposits with banks 3,986 2,102 Securities available for sale (AFS), at fair value 71,024 68,285 Securities held to maturity (HTM), at amortized cost 98,198 99,246 Federal Home Loan Bank (FHLB) stock - at cost 5,587 7,276 Loans receivable 1,280,773 1,151,130 Less: allowance for loan losses (10,471 ) (10,515 ) Net loans 1,270,302 1,140,615 Goodwill 10,277 - Premises and equipment, net 22,496 21,391 Premises and equipment held for sale 2,341 - Other real estate owned (OREO) 9,352 9,341 Accrued interest receivable 4,749 4,511 Investment in bank owned life insurance 35,619 29,398 Core deposit intangible 3,385 - Other assets 9,211 10,481 Total Assets $ 1,576,996 $ 1,405,961 Liabilities and Stockholders' Equity Liabilities Deposits Non-interest-bearing deposits $ 229,612 $ 159,844 Interest-bearing deposits 1,056,324 946,393 Total deposits 1,285,936 1,106,237 Short-term borrowings 51,500 87,500 Long-term debt 45,483 55,498 Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) 12,000 12,000 Subordinated notes - 6.25% 23,000 23,000 Accrued expenses and other liabilities 13,420 11,769 Total Liabilities 1,431,339 1,296,004 Stockholders' Equity Common stock - par value $.01; authorized - 15,000,000 shares; issued 5,573,841 and 4,649,658 shares, respectively 56 46 Additional paid in capital 83,947 48,209 Retained earnings 64,307 63,648 Accumulated other comprehensive loss (1,898 ) (1,191 ) Unearned ESOP shares (755 ) (755 ) Total Stockholders' Equity 145,657 109,957 Total Liabilities and Stockholders' Equity $ 1,576,996 $ 1,405,961 *Derived from audited financial statements
THE COMMUNITY FINANCIAL CORPORATION SUMMARY OF LOAN PORTFOLIO (dollars in thousands) (Unaudited) * (Unaudited) (Unaudited) (Unaudited) BY LOAN TYPE March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Commercial real estate $ 817,576 $ 727,314 $ 712,840 $ 713,789 $ 677,205 Residential first mortgages 166,390 170,374 175,816 181,386 178,903 Residential rentals 129,026 110,228 110,905 103,361 100,891 Construction and land development 28,226 27,871 31,094 32,603 37,761 Home equity and second mortgages 39,481 21,351 22,334 20,847 21,392 Commercial loans 52,198 56,417 56,376 55,023 55,091 Consumer loans 853 573 541 412 439 Commercial equipment 45,905 35,916 35,500 34,589 42,060 Gross loans 1,279,655 1,150,044 1,145,406 1,142,010 1,113,742 Net deferred costs (fees) 1,118 1,086 1,033 853 736 Total loans, net of deferred costs $ 1,280,773 $ 1,151,130 $ 1,146,439 $ 1,142,863 $ 1,114,478 * Derived from audited financial statements. (Unaudited) * (Unaudited) (Unaudited) (Unaudited) BY ACQUIRED AND NON-ACQUIRED March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Acquired loans - performing $ 121,615 $ - $ - $ - $ - Acquired loans - purchase credit impaired ("PCI") 3,871 - - - - Total acquired loans 125,486 - - - - Non-acquired loans** 1,154,169 1,150,044 1,145,406 1,142,010 1,113,742 Gross loans 1,279,655 1,150,044 1,145,406 1,142,010 1,113,742 Net deferred costs (fees) 1,118 1,086 1,033 853 736 Total loans, net of deferred costs $ 1,280,773 $ 1,151,130 $ 1,146,439 $ 1,142,863 $ 1,114,478 * Derived from audited financial statements. ** Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
ALLOWANCE FOR LOAN LOSSES THREE MONTHS ENDED (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (dollars in thousands) March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Beginning of period $ 10,515 $ 10,435 $ 10,434 $ 10,109 $ 9,860 Charge-offs (580 ) (13 ) (253 ) (68 ) (148 ) Recoveries 36 63 30 17 17 Net charge-offs (544 ) 50 (223 ) (51 ) (131 ) Provision for loan losses 500 30 224 376 380 End of period $ 10,471 $ 10,515 $ 10,435 $ 10,434 $ 10,109 Net charge-offs to average loans (annualized) -0.17 % 0.02 % -0.08 % -0.02 % -0.05 % Breakdown of general and specific allowance as a percentage of gross loans General allowance $ 9,310 $ 9,491 $ 9,617 $ 8,958 $ 8,444 Specific allowance 1,161 1,024 818 1,476 1,665 $ 10,471 $ 10,515 $ 10,435 $ 10,434 $ 10,109 General allowance 0.73 % 0.82 % 0.84 % 0.78 % 0.76 % Specific allowance 0.09 % 0.09 % 0.07 % 0.13 % 0.15 % Allowance to gross loans 0.82 % 0.91 % 0.91 % 0.91 % 0.91 % Allowance to non-acquired gross loans 0.91 % 0.91 % 0.91 % 0.91 % 0.91 %
THE COMMUNITY FINANCIAL CORPORATION SUMMARY OF DEPOSITS (dollars in thousands) (Unaudited) * (Unaudited) (Unaudited) (Unaudited) March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (dollars in thousands) Balance % Balance % Balance % Balance % Balance % Noninterest-bearing demand $ 229,612 17.86 % $ 159,844 14.45 % $ 157,665 14.36 % $ 154,962 14.25 % $ 149,410 14.21 % Interest-bearing: Demand 217,039 16.88 % 215,447 19.48 % 195,632 17.82 % 190,674 17.53 % 155,964 14.83 % Money market deposits 284,449 22.12 % 226,351 20.46 % 229,740 20.92 % 238,822 21.95 % 253,531 24.10 % Savings 76,360 5.94 % 52,990 4.79 % 54,310 4.95 % 54,361 5.00 % 52,899 5.03 % Certificates of deposit 478,476 37.21 % 451,605 40.82 % 460,654 41.95 % 448,987 41.27 % 439,985 41.83 % Total interest-bearing 1,056,324 82.14 % 946,393 85.55 % 940,336 85.64 % 932,844 85.75 % 902,379 85.79 % Total Deposits $ 1,285,936 100.00 % $ 1,106,237 100.00 % $ 1,098,001 100.00 % $ 1,087,806 100.00 % $ 1,051,789 100.00 % Transaction accounts $ 807,460 62.79 % $ 654,632 59.18 % $ 637,347 58.05 % $ 638,819 58.73 % $ 611,804 58.17 % * Derived from audited financial statements.
THE COMMUNITY FINANCIAL CORPORATION RECONCILIATION OF NON-GAAP MEASURES Reconciliation of US GAAP total assets, common equity, common equity to assets and book value to Non-GAAP tangible assets, tangible common equity, tangible common equity to tangible assets and tangible book value. This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain performance measures, which exclude intangible assets. These non-GAAP measures are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company. (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (dollars in thousands, except per share amounts) March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Total assets $ 1,576,996 $ 1,405,961 $ 1,402,172 $ 1,392,688 $ 1,356,073 Less: intangible assets Goodwill 10,277 - - - - Core deposit intangible 3,385 - - - - Total intangible assets 13,662 - - - - Tangible assets $ 1,563,334 $ 1,405,961 $ 1,402,172 $ 1,392,688 $ 1,356,073 ` Total common equity $ 145,657 $ 109,957 $ 110,885 $ 109,293 $ 106,566 Less: intangible assets 13,662 - - - - Tangible common equity $ 131,995 $ 109,957 $ 110,885 $ 109,293 $ 106,566 Common shares outstanding at end of period 5,573,841 4,649,658 4,649,302 4,648,199 4,641,342 GAAP common equity to assets 9.24 % 7.82 % 7.91 % 7.85 % 7.86 % Non-GAAP tangible common equity to tangible assets 8.44 % 7.82 % 7.91 % 7.85 % 7.86 % GAAP common book value per share $ 26.13 $ 23.65 $ 23.85 $ 23.51 $ 22.96 Non-GAAP tangible common book value per share $ 23.68 $ 23.65 $ 23.85 $ 23.51 $ 22.96
THE COMMUNITY FINANCIAL CORPORATION SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) Three Months Ended CONDENSED CONSOLIDATED INCOME STATEMENT March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share amounts ) 2018 2017 2017 2017 2017 Interest and Dividend Income Loans, including fees $ 14,726 $ 12,560 $ 12,671 $ 12,410 $ 11,970 Interest and dividends on securities 1,095 999 988 973 946 Interest on deposits with banks 72 14 21 12 6 Total Interest and Dividend Income 15,893 13,573 13,680 13,395 12,922 Interest Expense Deposits 1,956 1,712 1,563 1,403 1,269 Short-term borrowings 283 323 304 283 147 Long-term debt 764 765 805 776 832 Total Interest Expense 3,003 2,800 2,672 2,462 2,248 Net Interest Income (NII) 12,890 10,773 11,008 10,933 10,674 Provision for loan losses 500 30 224 376 380 NII After Provision For Loan Losses 12,390 10,743 10,784 10,557 10,294 Noninterest Income Loan appraisal, credit, and misc. charges 53 73 28 9 47 Gain on sale of asset - - - 47 - Net gains (losses) on sale of OREO - 7 - 9 27 Net gains (losses) on sale of investment securities - 42 - 133 - Income from bank owned life insurance 226 192 196 194 191 Service charges 752 686 639 660 610 Gain on sale of loans held for sale - - 294 - - Total Noninterest Income 1,031 1,000 1,157 1,052 875 Noninterest Expense Salary and employee benefits 5,047 4,191 4,056 4,198 4,313 Occupancy expense 766 691 630 658 653 Advertising 159 139 156 140 108 Data processing expense 683 588 555 634 577 Professional fees 352 472 510 360 320 Merger and acquisition costs 2,868 335 239 238 17 Depreciation of premises and equipment 199 192 191 204 199 Telephone communications 99 49 46 45 51 Office supplies 40 33 26 28 32 FDIC Insurance 198 133 178 161 166 OREO valuation allowance and expenses 114 123 283 145 195 Core deposit intangible amortization 240 - - - - Other 902 800 572 719 748 Total Noninterest Expense 11,667 7,746 7,442 7,530 7,379 Income before income taxes 1,754 3,997 4,499 4,079 3,790 Income tax expense 533 4,456 1,717 1,536 1,448 Net (Loss) Income $ 1,221 $ (459 ) $ 2,782 $ 2,543 $ 2,342 THE COMMUNITY FINANCIAL CORPORATION SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued * CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share amounts ) 2018 2017 2017 2017 2017 Assets Cash and due from banks $ 29,739 $ 13,315 $ 15,627 $ 14,982 $ 9,301 Federal funds sold 730 - - - - Interest-bearing deposits with banks 3,986 2,102 1,577 1,338 1,487 Securities available for sale (AFS), at fair value 71,024 68,285 61,376 54,288 57,042 Securities held to maturity (HTM), at amortized cost 98,198 99,246 104,530 106,842 104,965 Federal Home Loan Bank (FHLB) stock - at cost 5,587 7,276 7,447 7,745 7,703 Loans receivable 1,280,773 1,151,130 1,146,439 1,142,863 1,114,478 Less: allowance for loan losses (10,471 ) (10,515 ) (10,435 ) (10,434 ) (10,109 ) Net Loans 1,270,302 1,140,615 1,136,004 1,132,429 1,104,369 Goodwill 10,277 - - - - Premises and equipment, net 22,496 21,391 21,751 22,042 22,246 Premises and equipment held for sale 2,341 - - - 345 Other real estate owned (OREO) 9,352 9,341 9,741 9,154 6,747 Accrued interest receivable 4,749 4,511 4,494 4,212 4,023 Investment in bank owned life insurance 35,619 29,398 29,206 29,011 28,817 Core deposit intangible 3,385 - - - - Other assets 9,211 10,481 10,419 10,645 9,028 Total Assets $ 1,576,996 $ 1,405,961 $ 1,402,172 $ 1,392,688 $ 1,356,073 Liabilities and Stockholders' Equity Liabilities Deposits Non-interest-bearing deposits $ 229,612 $ 159,844 $ 157,665 $ 154,962 $ 149,410 Interest-bearing deposits 1,056,324 946,393 940,336 932,844 902,379 Total deposits 1,285,936 1,106,237 1,098,001 1,087,806 1,051,789 Short-term borrowings 51,500 87,500 91,500 88,500 97,500 Long-term debt 45,483 55,498 55,514 65,529 55,544 Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) 12,000 12,000 12,000 12,000 12,000 Subordinated notes - 6.25% 23,000 23,000 23,000 23,000 23,000 Accrued expenses and other liabilities 13,420 11,769 11,272 6,560 9,674 Total Liabilities 1,431,339 1,296,004 1,291,287 1,283,395 1,249,507 Stockholders' Equity Common stock 56 46 46 46 46 Additional paid in capital 83,947 48,209 47,994 47,847 47,511 Retained earnings 64,307 63,648 64,375 62,058 59,979 Accumulated other comprehensive loss (1,898 ) (1,191 ) (538 ) (489 ) (801 ) Unearned ESOP shares (755 ) (755 ) (992 ) (169 ) (169 ) Total Stockholders' Equity 145,657 109,957 110,885 109,293 106,566 Total Liabilities and Stockholders' Equity $ 1,576,996 $ 1,405,961 $ 1,402,172 $ 1,392,688 $ 1,356,073 Common shares issued and outstanding 5,573,841 4,649,658 4,649,302 4,648,199 4,641,342 * Derived from audited financial statements. THE COMMUNITY FINANCIAL CORPORATION SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued Three Months Ended SELECTED FINANCIAL INFORMATION AND RATIOS March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share amounts ) 2018 2017 2017 2017 2017 KEY OPERATING RATIOS Return on average assets 0.31 % (0.13 ) % 0.80 % 0.74 % 0.70 % Return on average common equity 3.33 (1.62 ) 9.99 9.36 8.78 Average total equity to average total assets 9.28 8.08 7.97 7.91 7.98 Interest rate spread 3.36 3.14 3.24 3.27 3.29 Net interest margin 3.54 3.29 3.38 3.39 3.40 Cost of funds 0.84 0.88 0.84 0.79 0.74 Cost of deposits 0.62 0.63 0.58 0.53 0.48 Cost of debt 2.59 2.34 2.34 2.22 2.24 Efficiency ratio 83.81 65.79 61.18 62.83 63.89 Efficiency ratio - Non-GAAP ** 62.39 62.16 56.88 60.59 62.20 Non-interest expense to average assets 2.95 2.21 2.13 2.19 2.21 Net operating expense to average assets 2.69 1.93 1.80 1.89 1.94 Net operating expense to average assets - Non-GAAP ** 1.94 1.81 1.65 1.83 1.89 Avg. int-earning assets to avg. int-bearing liabilities 121.10 117.76 116.64 117.07 116.29 Net charge-offs to average loans 0.17 (0.02 ) 0.08 0.02 0.05 COMMON SHARE DATA Basic net income per common share $ 0.22 $ (0.10 ) $ 0.60 $ 0.55 $ 0.51 Diluted net income per common share 0.22 (0.10 ) 0.60 0.55 0.51 Cash dividends paid per common share 0.10 0.10 0.10 0.10 0.10 Weighted average common shares outstanding: Basic 5,547,715 4,616,515 4,633,391 4,632,911 4,628,357 Diluted 5,547,715 4,616,515 4,633,417 4,635,483 4,630,398 ASSET QUALITY Total assets $ 1,576,996 $ 1,405,961 $ 1,402,172 $ 1,392,688 $ 1,356,073 Gross loans 1,279,655 1,150,044 1,145,406 1,142,010 1,113,742 Classified Assets 44,736 50,298 39,172 35,413 36,458 Allowance for loan losses 10,471 10,515 10,435 10,434 10,109 Past due loans - 31 to 89 days 5,231 9,227 1,642 1,081 231 Past due loans >=90 days 6,281 2,483 2,741 3,782 7,168 Total past due loans 11,512 11,710 4,383 4,863 7,399 Non-accrual loans 8,439 4,693 3,012 4,442 7,830 Accruing troubled debt restructures (TDRs) 9,953 10,021 10,069 10,228 10,264 Other real estate owned (OREO) 9,352 9,341 9,741 9,154 6,747 Non-accrual loans, OREO and TDRs $ 27,744 $ 24,055 $ 22,822 $ 23,824 $ 24,841 ASSET QUALITY RATIOS Classified assets to total assets 2.84 % 3.58 % 2.79 % 2.54 % 2.69 % Classified assets to risk-based capital 24.81 32.10 24.97 22.81 23.91 Allowance for loan losses to total loans 0.82 0.91 0.91 0.91 0.91 Allowance for loan losses to non-accrual loans 124.08 224.06 346.45 234.89 129.11 Past due loans - 31 to 89 days to total loans 0.41 0.80 0.14 0.09 0.02 Past due loans >=90 days to total loans 0.49 0.22 0.24 0.33 0.64 Total past due (delinquency) to total loans 0.90 1.02 0.38 0.43 0.66 Non-accrual loans to total loans 0.66 0.41 0.26 0.39 0.70 Non-accrual loans and TDRs to total loans 1.44 1.28 1.14 1.28 1.62 Non-accrual loans and OREO to total assets 1.13 1.00 0.91 0.98 1.07 Non-accrual loans, OREO and TDRs to total assets 1.76 1.71 1.63 1.71 1.83 COMMON SHARE DATA Book value per common share $ 26.13 $ 23.65 $ 23.85 $ 23.51 $ 22.96 Tangible book value per common share** 23.68 *** *** *** *** Common shares outstanding at end of period 5,573,841 4,649,658 4,649,302 4,648,199 4,641,342 OTHER DATA Full-time equivalent employees 200 165 169 165 165 Branches (1) 16 11 11 12 12 Loan Production Offices 5 5 5 5 5 REGULATORY CAPITAL RATIOS Tier 1 capital to average assets 9.35 % 8.79 % 8.82 % 8.85 % 8.91 % Tier 1 common capital to risk-weighted assets 10.31 9.51 9.81 9.70 9.62 Tier 1 capital to risk-weighted assets 11.23 10.53 10.87 10.77 10.69 Total risk-based capital to risk-weighted assets 13.80 13.40 13.81 13.72 13.66 Tangible common equity to tangible assets ** ** Non-GAAP financial measure. See reconciliation of GAAP and NON-GAAP measures. *** The Company had no intangible assets before January 1, 2018. (1) The Company plans to close four of the five acquired branches in May 2018. THE COMMUNITY FINANCIAL CORPORATION SUPPLEMENTAL QUARTERLY FINANCIAL DATA (UNAUDITED) - Continued This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger and acquisition costs, OREO gains and losses and OREO expenses, and gains and losses on sales of investments or other assets, that are not considered part of recurring operations. These non-GAAP measures are included because the Company believes they may provide useful supplemental information for evaluating the underlying performance trends of the Company. Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share amounts ) 2018 2017 2017 2017 2017 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES Efficiency ratio - GAAP basis Noninterest expense $ 11,667 $ 7,746 $ 7,442 $ 7,530 $ 7,379 Net interest income plus noninterest income 13,921 11,773 12,165 11,985 11,549 Efficiency ratio - GAAP basis 83.81 % 65.79 % 61.18 % 62.83 % 63.89 % Efficiency ratio - Non-GAAP basis Noninterest Expense $ 11,667 $ 7,746 $ 7,442 $ 7,530 $ 7,379 Non-GAAP adjustments: Merger and acquisition costs (2,868 ) (335 ) (239 ) (238 ) (17 ) OREO valuation allowance and expenses (114 ) (123 ) (283 ) (145 ) (195 ) Noninterest expense - as adjusted 8,685 7,288 6,920 7,147 7,167 Net interest income plus noninterest income 13,921 11,773 12,165 11,985 11,549 Non-GAAP adjustments: (Gains) losses on sale of asset - - - (47 ) - Net (gains) losses on sale of OREO - (7 ) - (9 ) (27 ) Net (gains) losses on sale of investment securities - (42 ) - (133 ) - Net interest income plus noninterest income - adjusted $ 13,921 $ 11,724 $ 12,165 $ 11,796 $ 11,522 Efficiency ratio -Non-GAAP basis 62.39 % 62.16 % 56.88 % 60.59 % 62.20 % Net operating exp. to average assets ratio - GAAP basis Average Assets $ 1,581,538 $ 1,398,945 $ 1,396,459 $ 1,373,832 $ 1,337,814 Noninterest expense 11,667 7,746 7,442 7,530 7,379 less: noninterest income (1,031 ) (1,000 ) (1,157 ) (1,052 ) (875 ) Net operating exp. $ 10,636 $ 6,746 $ 6,285 $ 6,478 $ 6,504 Net operating exp. to average assets - GAAP basis 2.69 % 1.93 % 1.80 % 1.89 % 1.94 % Net operating exp. to average assets ratio -Non-GAAP basis Average Assets $ 1,581,538 $ 1,398,945 $ 1,396,459 $ 1,373,832 $ 1,337,814 Net operating exp. 10,636 6,746 6,285 6,478 6,504 Non-GAAP adjustments noninterest expense: Merger and acquisition costs (2,868 ) (335 ) (239 ) (238 ) (17 ) OREO valuation allowance and expenses (114 ) (123 ) (283 ) (145 ) (195 ) Non-GAAP adjustments non interest income: Gains (losses) on sale of asset - - - 47 - Net gains (losses) on sale of OREO - 7 - 9 27 Net gains (losses) on sale of investment securities - 42 - 133 - Net operating exp.-adjusted $ 7,654 $ 6,337 $ 5,763 $ 6,284 $ 6,319 Net operating exp. to average assets - Non-GAAP basis 1.94 % 1.81 % 1.65 % 1.83 % 1.89 %
Source:The Community Financial Corporation | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/02/globe-newswire-the-community-financial-corporation-reports-operating-results-for-the-three-months-ended-march-31-2018.html |
Zack Cozart’s single in the bottom of the ninth inning scored Chris Young from second base to lift the Los Angeles Angels to a 2-1 win over the Minnesota Twins on Sunday afternoon in Anaheim, Calif.
May 13, 2018; Anaheim, CA, USA; Los Angeles Angels third baseman Zack Cozart (center right) is doused with water after hitting a walk-off RBI single during the ninth inning to defeat the Minnesota Twins 2-1 at Angel Stadium of Anaheim. Mandatory Credit: Orlando Ramirez-USA TODAY Sports Twins reliever Zach Duke (2-2) hit Young with a pitch to start the ninth inning. Martin Maldonado followed with a sacrifice bunt, moving the runner to second and bringing up Cozart, who already had two hits in the game.
Cozart swung at Duke’s first pitch and lined it into left field, Young scoring without a throw and helping the Angels split the four-game series with the Twins.
The Angels survived a Twins threat in the top of the ninth when Robbie Grossman doubled to right-center with one out off reliever Jim Johnson. Ehire Adrianza, on the move from first base on the pitch, tried to score.
The relay from center fielder Mike Trout to second baseman Ian Kinsler to the catcher Maldonado was in time to get Adrianza at the plate.
May 13, 2018; Anaheim, CA, USA; The Los Angeles Angels designated hitter Albert Pujols tracker is updated after a hit during the game against the Minnesota Twins at Angel Stadium of Anaheim. Mandatory Credit: Orlando Ramirez-USA TODAY Sports The Angels weren’t out of the jam yet, however. After Johnson walked Joe Mauer intentionally, he walked No. 9 hitter Bobby Wilson to load the bases.
Johnson was replaced by Blake Parker, who retired Brian Dozier on a foul popup to end the inning.
Parker (1-1) got the win despite making just one pitch in the game. He was the last of four relievers who pitched behind starter Shohei Ohtani, who had another impressive performance.
Slideshow (2 Images) Ohtani gave up just one run on three hits and two walks in 6 1/3 innings, striking out 11.
Ohtani and Twins starter Fernando Romero matched zeros through four innings. But while Ohtani threw a scoreless inning in the top of the fifth, the Angels pushed across a run against Romero in the bottom of the inning.
Maldonado led off the inning with a double and went to third on an infield single by Cozart. After Kole Calhoun struck out for the first out of the inning, Justin Upton grounded into a force play, Cozart out at second but Maldonado scoring to put the Angels up 1-0.
In the Twins’ sixth, Dozier led off with a walk and went to second on a wild pitch. Max Kepler flied out to right for the first out of the inning, and Eduardo Escobar grounded out to second, moving Dozier to third. Ohtani escaped when he struck out Eddie Rosario for the final out of the inning.
Romero, who began the season in the minors, did not allow a run over 11 2/3 innings in his first two major league starts, victories over Toronto and St. Louis. On Sunday against the Angels, he gave up just one run on four hits and three walks in five innings, striking out six and finishing with a no-decision.
Ohtani also got a no-decision because the Twins rallied to tie the game in the seventh inning. Ohtani was replaced by Cam Bedrosian with one on and one out. After a single by Grossman, Mauer singled to drive in a run and tie the game at 1-1, the run charged to Ohtani.
—Field Level Media
| ashraq/financial-news-articles | https://www.reuters.com/article/us-baseball-mlb-min-laa/walk-off-win-gives-angels-split-with-twins-idUSKCN1IF027 |
WINDSOR, England (Reuters) - Meghan Markle picked a sleek sculpted dress by the British designer of couture house Givenchy for her marriage to Prince Harry on Saturday, worn with a five-meter long veil and a sparkling diamond tiara lent by Queen Elizabeth.
Prince Harry and Meghan Markle in St George's Chapel at Windsor Castle for their wedding in Windsor, Britain, May 19, 2018. Dominic Lipinski/Pool via REUTERS The pure white long-sleeved gown with a boat neck had been eagerly anticipated by royal fans around the world, with speculation over which designer would be chosen starting soon after the couple announced their engagement in November.
As the bride stepped out of her classic Rolls-Royce, Kensington Palace announced that Clare Waight Keller, who became the first female artistic director at famed French house Givenchy last year, had secured the coveted role of making the dress.
The 47-year-old, previously at Pringle of Scotland and Chloe, met Meghan earlier this year and the two worked together on the design, which “epitomises a timeless minimal elegance”, Kensington Palace said.
“The focus of the dress is the graphic open bateau neckline that gracefully frames the shoulders and emphasizes the slender sculpted waist,” the palace said in a statement.
“The lines of the dress extend toward the back where the train flows in soft round folds cushioned by an underskirt in triple silk organza. The slim three-quarter sleeves add a note of refined modernity.”
The gown made of double bonded cady silk with a sweeping train was simple in style, which won praise from fashionistas.
Edward Enninful, the editor of British Vogue, called the dress “beautiful” while bridal designer Raishma said the gown was “an example of couture design at its most classic and timeless”.
Meghan Markle arrives at St George's Chapel at Windsor Castle for her wedding to Prince Harry in Windsor, Britain, May 19, 2018. Andrew Matthews/Pool via REUTERS “It was not a Cinderella choice, not one that spoke of fantasy or old-fashioned fairy tales, but one that placed the woman proudly front and center,” Vanessa Friedman, fashion director and chief fashion critic at The New York Times, wrote.
“It underscored Ms. Markle’s own independence by divesting her of frippery, while also respecting tradition and keeping her covered up.”
On social media, fans mainly showered the bride, who wore her hair up, with compliments, some even posting an image of Cinderella. Outside the wedding venue in Windsor, well-wishers were divided over its simplicity.
“It was simple and elegant,” 23-year-old Emily Devaney from New Zealand said. “It’s probably hard to dress for a royal wedding - you probably don’t have much you can go with but I thought she looked beautiful.”
Nursing student Linda O’Dwyer said it was “very modern and classy” and she preferred it to the lace-embroidered gown Kate Middleton wore at her 2011 wedding to Prince William.
“It was like (Meghan) didn’t want it to be too over the top with lots of embroidery. It really suited her style,” she said.
Slideshow (4 Images) However spectator Jennifer Hill, 69, described it as “very plain”. “I’m not surprised but slightly disappointed,” she said. “I thought it might be a little more flamboyant but it was very simplistic. I prefer her hair down.”
COMMONWEALTH TRIBUTE The well-kept secret over who would design the dress had kept royal fans and fashionistas guessing for months. Among the those cited as contenders were labels Ralph & Russo and Burberry as well as designer Stella McCartney.
Waight Keller, whose name has now been catapulted into the global spotlight, described the chance to work on the historic occasion as “an honor”.
“We wanted to create a timeless piece that would emphasize the iconic codes of Givenchy throughout its history, as well as convey modernity through sleek lines and sharp cuts,” she said in a statement.
Meghan’s long veil, made of silk tulle, was decorated with a trim of hand-embroidered flowers in silk threads and organza, the palace said, and paid tribute to the 53 countries of the Commonwealth.
“Ms. Waight Keller designed a veil representing the distinctive flora of each Commonwealth country united in one spectacular floral composition,” the palace said.
Prince Harry last month was appointed a Commonwealth youth ambassador.
Queen Elizabeth lent the 36-year-old bride a historic tiara for the occasion. Made in 1932 for Elizabeth’s grandmother Queen Mary, the sparkling diamond and platinum bandeau has a center brooch dating from 1893.
Meghan, now to be called the Duchess of Sussex, also wore Cartier earrings and bracelet, and silk duchess satin shoes.
For the evening wedding reception, Meghan changed into a Stella McCartney design - a slinky silk crepe dress in lily white, with a high neck.
Reporting By Marie-Louise Gumuchian; additional reporting by Cassandra Garrison, Andrew MacAskill and Eleanor Whalley; Writing by Marie-Louise Gumuchian; Editing by Giles Elgood and Peter Graff
| ashraq/financial-news-articles | https://www.reuters.com/article/us-britain-royals-wedding-dress/meghan-markle-wears-wedding-dress-by-british-designer-clare-waight-keller-idUSKCN1IK0DT |
CAIRO, May 30 (Reuters) - Islamic State claimed responsibility on Wednesday for a knife and shooting attack in the Belgian city of Liege, but provided no evidence for its claim.
It said in an online statement a “soldier of the caliphate” had carried out the attack on Tuesday which killed two policewomen and a bystander.
Islamic State regularly claims attacks that are thought to be Islamist-inspired, often without providing any proof the group was involved. (Reporting by Ali Abdelaty, John Davison Editing by Catherine Evans)
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© 2018 Reuters. All Rights Reserved. | ashraq/financial-news-articles | https://www.reuters.com/article/belgium-shooting-claim/islamic-state-claims-belgium-attack-provides-no-evidence-statement-idUSL5N1T175U |
May 24, 2018 / 2:23 PM / Updated 37 minutes ago COLUMN-What are "critical" minerals and what is the US going to do about them?: Andy Home Reuters Staff
(The opinions expressed here are those of the author, a columnist for Reuters.)
By Andy Home
LONDON, May 24 (Reuters) - NioCorp Developments, which is in the process of raising financing for a minerals project in Nebraska, has just seen its Toronto-listed shares surge from C$0.52 to $0.70 in the space of two days thanks to the U.S. government.
NioCorp’s planned mine and processing facility at Elk Creek will produce three metals - scandium, niobium and titanium - that have all been officially designated “critical” minerals by the Interior Department.
No-one’s mined niobium in the United States since 1959, according to the United States Geological Survey (USGS). The country relies exclusively on imports, mostly from Brazil.
The same is true of scandium, a metal which, according to NioCorp, has been used for several decades in “cutting-edge Soviet and Russian military technologies” but not by the U.S. armed forces due to a lack of supply.
This is precisely the point for U.S. President Donald Trump’s administration, which is developing a strategy to reduce import reliance for metals considered “critical to the economic and national security of the United States.” WHAT’S CRITICAL?
The Department of the Interior has identified 35 minerals as “critical”.
The designation is based on a matrix of criteria, including physical scarcity, concentration of production, supply chain reliability and U.S. import dependency.
Or, as summarized by one Commerce Department representative, “critical means you need it, strategic means you don’t have it.”
The unnamed official, quoted by the USGS in its explanation of the methodology behind the list, was involved with the 1978-1979 Presidential Review of Nonfuel Minerals Policy.
Which is a reminder that this is not the first U.S. Administration that has been worried about mineral import dependence.
However, the list of minerals deemed “critical” has changed significantly over the intervening 40 years as manufacturing processes have advanced.
Consider, for example, the case of the humble computer chip. In the 1980s, according to the USGS, only 12 elements were used in its manufacture. A decade later and the number had risen to 16 and by 2006 as many as 60 elements were being used for high-speed, high-capacity integrated circuits.
Whole new industries have emerged over the same time frame. The lithium ion battery, which sits at the heart of the green transport revolution, was only commercialised at the start of the 1990s.
No big surprise, then, to see both lithium and cobalt, two key but supply-challenged inputs into the new generation of batteries, appear on the list.
So too does the rare earth elements group. None of them are domestically produced in the U.S. and most of them come from just one country, China.
China is also the dominant supplier of other esoteric but “critical” components of the elemental table such as antimony, indium, tellurium and tungsten.
The list includes more conventional commodities such as the platinum group metals (all of them), tin and aluminium.
The USGS stresses that in such cases it’s not just the metal but the entire supply chain that is problematic.
“Aluminum is included to represent the aluminum supply chain because the United States is 100 percent reliant on imports of metallurgical grade bauxite, and some forms of high purity alumina and aluminum metal used for important applications also are considered critical.”
The full list of critical minerals can be found here: here REDUCING IMPORT RELIANCE
The U.S. government is imposing tariffs on imports of aluminium with the stated aim of rekindling dormant domestic production capacity and reducing import dependency.
And increasing domestic supply across the spectrum of the periodic table is going to be a core recommendation in the report being compiled by the Commerce Department for submission to President Trump by Aug. 16, 2018.
Commerce is also likely to recommend improved mapping of resources, streamlining lease permitting and anything else that will “increase discovery, production and domestic refining of critical minerals.”
One possible outcome, welcomed by companies such as NioCorp but feared by environmental groups, could be a revitalization of the U.S. mining industry.
As the Commerce Department itself notes, “any recommendations to improve permitting processes for critical minerals will improve permitting processes for all minerals administered under the same laws and regulations by the Bureau of Land Management and other Federal land management agencies.”
However, it’s going to be a slow process.
NioCorp, for example, is the only prospective near-term project for niobium and scandium in North America and, even with a full feasibility study already completed, the company still needs to raise around $1 billion to realise its ambitions. Which is why the Commerce Department report will also look at other sources of supply such as recycling and cooperating with “allies and partners” to access targeted minerals. DEFENSE LOGISTICS AGENCY
The Commerce Department’s list of potential measures doesn’t include the creation of a national stockpile of critical minerals such as that operated in China by the state-run Strategic Reserves Bureau.
That’s because the United States already has one, operated by the Defense Logistics Agency (DLA), the body charged with managing supply chains for the country’s armed forces.
As of September 2016, the most recent operational report, the DLA held stocks of many of the minerals on the Interior Department’s list with a total value of $1.15 billion.
On the current financial year’s potential shopping list are rare earths (up to a maximum 416 tonnes), battery precursors such as lithium nickel cobalt aluminium oxide (2.16 tonnes), ferroniobium (209 tonnes) and truly esoteric goodies such as cadmium zinc tellurium and tungsten rhenium. CATCHING UP
The DLA is also heavily involved both in recycling materials such as germanium and studying possible alternatives to existing “critical” military inputs.
But it can only be part of a broader strategy that will have to be both multidimensional and highly flexible.
There is no simple solution to the fact that the United States doesn’t have any commercially exploitable bauxite deposits or that cobalt production is so concentrated on the African Copperbelt.
Moreover, other countries, particularly China, have already aggressively built out supply chains to supply the battery-makers that will power the world’s growing electric vehicle fleet.
Identifying which minerals are “critical” is the easy part. Working out what to do about them is going to be much harder. (Editing by Keith Weir) | ashraq/financial-news-articles | https://www.reuters.com/article/usa-minerals-ahome/column-what-are-critical-minerals-and-what-is-the-us-going-to-do-about-them-andy-home-idUSL5N1SV5HP |
* Comcast prepares all-cash bid for Fox assets
* Citigroup rises after ValueAct raises stake
* Trump to decide on Iran nuclear deal at 2 p.m. ET
* Futures down: Dow 0.15 pct, S&P 0.21 pct, Nasdaq 0.2 pct (Adds comments, details, updates prices)
By Medha Singh
May 8 (Reuters) - U.S. stock indexes were on track to open lower on Tuesday as investors braced for President Donald Trump’s decision on whether to withdraw from the Iran nuclear deal.
A U.S. withdrawal would tighten economic sanctions on Iran, curtailing the country’s output that could bolster this year’s 13 percent oil rally.
Crude prices were down about 1 percent - easing from 2014 highs, which had boosted Wall Street in the past two sessions - ahead of Trump’s decision at 1800 GMT (2:00 p.m. ET).
“(Trump’s decision) has been so well covered, it’s probably all in the price by now. And most recent commentary seems to be that after all the bluster, he may only partially withdraw from the deal,” said Frances Hudson, global thematic strategist at Aberdeen Standard Investments.
At 8:33 a.m. ET, Dow e-minis were down 37 points, or 0.15 percent. S&P 500 e-minis were down 5.5 points, or 0.21 percent and Nasdaq 100 e-minis were down 13.75 points, or 0.2 percent.
“Depending on the magnitude of energy markets being affected, it could spillover to the rest of equities in general,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
Shares of Comcast fell 1.8 percent premarket after Reuters reported the cable operator is preparing to make an all-cash offer for media assets that Twenty-First Century Fox has agreed to sell to Disney for $52 billion.
Fox’s shares rose 2.4 percent. Disney, which is due to report its results after markets close, was down 0.7 percent.
Snap Inc gained 1.6 percent after hiring Tim Stone, who had led Amazon’s $13.7-billion integration with Whole Foods, as its chief financial officer.
Dish Network dipped 1.2 percent after its quarterly revenue came below expectations due to a drop in its legacy pay-TV subscriptions.
Citigroup advanced 1.8 percent after activist investor ValueAct invested $1.2 billion in the bank, citing its low risk and reliable revenue. (Reporting by Medha Singh in Bengaluru; Editing by Anil D’Silva)
| ashraq/financial-news-articles | https://www.reuters.com/article/usa-stocks/us-stocks-wall-st-set-to-open-lower-ahead-of-trump-iran-decision-idUSL3N1SF4S8 |
HAVANA (Reuters) - Cuban search teams have retrieved the flight data recorder from the passenger plane that crashed last Friday, killing all but two of the 113 people on board, Cuban state-run television announced on Thursday in the evening news broadcast.
A view of the site where a Boeing 737 plane crashed after taking off from Havana's main airport, Cuba, May 22, 2018. REUTERS/Alexandre Meneghini They had already found the cockpit voice recorder. Videos of the tragedy taken by passers-by and locals, plus their testimony had helped investigators locate the second recorder.
Both, known as the “black box,” are crucial to explaining what went wrong with the 39-year-old plane which dived into fields south of Havana shortly after takeoff, bursting into flames.
The Boeing 737, leased by the little-known Mexican company Damojh to Cuba’s flagship carrier Cubana, had been destined for the eastern city of Holguin and 100 of the victims were Cuban.
Seven Mexicans, two Argentines and two Sahrawis from a disputed area in the Western Sahara known as the Sahrawi Arab Democratic Republic also died in the tragedy.
Cuba is leading the probe into the crash, one of the Caribbean island’s worst ever, together with Mexican and U.S. investigators.
Only two Cuban women have survived but are in a critical condition due to burns and other trauma, the director of the hospital where they are being attended has said.
Mexico’s civil aviation authority said on Monday it had suspended Damojh’s operations while it made sure the firm adhered to regulations and gathered information to help investigators find the cause of the crash.
Previous complaints over inadequate maintenance and safety measures have surfaced in recent days.
Reporting by Sarah Marsh; Editing by Sandra Maler and Lisa Shumaker
| ashraq/financial-news-articles | https://www.reuters.com/article/us-cuba-crash/cuba-has-found-flight-data-recorder-from-plane-crash-state-tv-idUSKCN1IQ02L |
May 16 (Reuters) - Glencore PLC:
* BOARD UPDATE * GRANTED TO MARTIN GILBERT A LEAVE OF ABSENCE AS DIRECTOR UNTIL MID-OCTOBER 2018
* DURING THIS PERIOD PATRICE MERRIN, INDEPENDENT NON- EXECUTIVE DIRECTOR, WILL REPLACE HIM ON COMPANY’S AUDIT AND REMUNERATION COMMITTEES. Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-glencore-says-sky-deputy-chair-mar/brief-glencore-says-sky-deputy-chair-martin-gilbert-granted-leave-of-absence-as-director-until-mid-oct-idUSFWN1SN0B1 |
Iran's fragile economic recovery is in jeopardy with President Donald Trump widely expected to scrap an internationally-brokered nuclear deal and re-impose sanctions against the regime.
Trump has given the European nations that helped broker the 2015 nuclear deal — which he called "terrible" — until May 12 to change it, but that is looking increasingly unlikely.
Iran has said it won't accept changes to the deal, which saw it reigning in its nuclear ambitions in return for a relaxation of international sanctions that had sorely damaged the oil exporter. Europe has so far failed to convince Trump to save the nuclear agreement, known formally as the Joint Comprehensive Plan of Action (JCPOA).
Where sanctions will hurt most?
Now, those sanctions are likely to return and Iran's economy, which was slowly recovering due to the nuclear deal, could suffer again — particularly in key sectors for the economy, such as oil and banking.
"We are expecting that Trump will withdraw from the nuclear deal on May 12 and this is likely to come with a first step of re-imposing sanctions related to Iran's oil sector," Dalia Naguib, MENA Analyst at advisory services firm Frontier Strategy Group, told CNBC Tuesday.
"We could see more sanctions come back related to strategic sectors like the auto sector or around Iran's shipping sector," she told CNBC's Squawk Box Europe.
show chapters Oil markets on edge as Netanyahu goes after Iran 8 Hours Ago | 01:14 Iran's oil is the main source of its export earnings but agriculture, the services sector, manufacturing and financial services are also pillars of the economy too, according to the World Bank.
The bank noted in a report last year that Iran's growth prospects relied on the pace of Iran's reintegration with the global economy in terms of banking, trade and investment.
But if further sanctions are imposed on Iran, companies and international banks are unlikely to touch the country during that time, one analyst said.
"As always, the parts of the economy that will be worst hit are the parts that are most internationally-connected," Marcus Chevenix, MENA analyst at independent research firm TS Lombard, told CNBC Tuesday.
"And those parts in Iran are oil and banking. If I had to flag up an area that was very vulnerable it would be banking," he said.
Chevenix said that if the U.S. decided to impose "secondary sanctions" on Iran, it could prevent European firms doing business with the country, even if they wanted to.
Secondary sanctions deter other countries or institutions (such as European banks) from doing business with Iran because they don't want to be blacklisted — or "exposed" as Chevenix said — by the U.S. for doing so, effectively cutting off Iranian business from access to external investment and financial systems.
"If Trump was to impose secondary sanctions, he could cut off the Iranian banking system from the rest of the world and that would take us back to a pre-2015 situation. The U.S. has all sorts of unilateral power here," he said.
Sanctions 'very bad' for Iran Problematically for Iran, its economy was just starting to recover after a period in the wilderness.
The International Monetary Fund (IMF) said in a country report in March that Iran had witnessed a "strong rebound" in the aftermath of the nuclear agreement and that real gross domestic product (GDP) growth is expected to reach 4.3 percent in 2017/18 – giving it the strongest growth forecast among other regional oil exporters.
In the first half of 2017/18, the IMF said that the recovery broadened to the non-oil sector and was "aided by supportive fiscal and monetary policies and a recovery in construction and services activity."
Reforms and economic recovery will be at stake if sanctions are re-imposed, however. A senior consultant for the Middle East and North Africa at consultancy Control Risks, said the revival of sanctions would be a "very bad scenario for Iran."
"That's why it's clear that they want to stay in the deal," Allison Wood told CNBC's Squawk Box Europe Tuesday.
"And I think that even if the U.S. was to withdraw from the deal, Iran would stay in it at least temporarily in an effort to show its commitment to the deal to the international community and in an effort to find the European and Asian businesses that have invested in Iran, to stay in the country," she said.
Goodbye JCPOA?
The JCPOA was struck by Iran and six world powers, the U.S., U.K., Russia, France, China, and Germany. Although the other parties in the group have tried to salvage the deal , the U.S. looks set to scupper it.
U.S. ally and Iran nemesis Israel stuck the boot in Monday with Prime Minister Benjamin Netanyahu revealing files the he claimed showed Iran was still running a secret program to produce nuclear weapons.
For his part, Trump has repeatedly accused Iran of flouting the agreement and says "sunset clauses" that would see restrictions on Iran's nuclear enrichment program lifted after 2025, are unacceptable. He has also argued that it has not halted Iran's ballistic missile program.
Meanwhile, Iran accused Israel of "repeating old lies," according to Iran's FARS news agency on Tuesday, and said it hopes Trump comes "to his senses" over the nuclear deal.
French President Emmanuel Macron met with Trump last week to try to persuade him to save the deal, but later stated that he believed Trump would still scrap it. German Chancellor Angela Merkel also went to meet Trump last Friday for talks but trade tariffs seemed to be higher up the agenda than Tehran.
Asked whether European countries could renegotiate a new package of sanctions on Iran, Frontier Strategy Group's Naguib said there was no consensus among European nations.
"Italy and Austria don't want to add additional sanctions on Iran whereas we see France and Germany more willing to cooperate with Trump and perhaps create a new sanctions package to pressure Iran. So even in Europe we're seeing a lot of confliction between countries," she said.
But a small light at the end of the tunnel could be found in Iran's cordial relations with Russia and China, both of which have criticized U.S. threats to destroy the deal.
"At this point, if the U.S. withdraws from the deal, Iran won't see the economic benefits it was promised from the deal … But at the same time it's building ties with China and Russia so it can continue to have positive economic relations with these countries," Naguib said. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/01/trump-looks-set-to-scrap-irans-nuclear-deal--and-this-is-where-itll-hurt-the-most.html |
May 4, 2018 / 10:48 PM / Updated 5 hours ago Gabon PM names new cabinet days after court dissolved government Reuters Staff 1 Min Read
LIBREVILLE (Reuters) - Gabon’s prime minister announced the composition of a new cabinet on Friday, just days after the Constitutional Court ordered him to resign for failing to organise legislative elections on time last weekend.
The court ruled on Monday that Prime Minister Emmanuel Issoze-Ngondet was no longer legitimate. It also ordered that the National Assembly be dissolved.
However, President Ali Bongo, the current head of the Central African OPEC member’s half-century-old political dynasty, reappointed him on Thursday.
Announced on state television, Issoze-Ngondet’s new 40-member cabinet is composed of 11 ministers of state, 17 ministers and 12 deputy ministers and includes three allies of opposition leader Jean Ping.
Ping has refused to recognise his defeat to Bongo, then the incumbent president, in a 2016 election that international observers said was marred by irregularities and which sparked brief spasms of violence. Reporting by Gérauds Wilfried Obangome; Writing by Joe Bavier; Editing by James Dalgleish | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-gabon-politics/gabon-pm-names-new-cabinet-days-after-court-dissolved-government-idUKKBN1I52NJ |
May 14 (Reuters) - aTyr Pharma Inc:
* ATYR PHARMA ANNOUNCES FIRST QUARTER 2018 OPERATING RESULTS, PROGRAM PRIORITIZATION AND CORPORATE RESTRUCTURING
* CORPORATE RESTRUCTURING INCLUDES AN IMMEDIATE WORKFORCE REDUCTION OF APPROXIMATELY 30% AS WELL AS ADDITIONAL COST SAVING MEASURES
* RESTRUCTURING PLAN TO STREAMLINE ITS OPERATIONS AS IT FOCUSES ITS DEVELOPMENT EFFORTS ON FURTHER CLINICAL ADVANCEMENT OF ATYR1923
* ATYR PHARMA - NOT TO PROCEED WITH IND-ENABLING ACTIVITIES, INCLUDING GMP MANUFACTURING, FOR PANEL OF ANTIBODIES IDENTIFIED IN ORCA PROGRAM
* QTRLY LOSS PER SHARE $0.36 * Q1 EARNINGS PER SHARE VIEW $-0.36 — THOMSON REUTERS I/B/E/S Source text for Eikon: Further company coverage: ([email protected])
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© 2018 Reuters. All Rights Reserved. | ashraq/financial-news-articles | https://www.reuters.com/article/brief-atyr-pharma-inc-posts-qtrly-loss-o/brief-atyr-pharma-inc-posts-qtrly-loss-of-0-36-per-share-idUSASC0A1VQ |
Reblog Inc. executive, who was the company’s main technical contact with U.S. safety investigators, has left for rival Waymo LLC, according to people familiar the decision. , who had been the director of field performance engineering at Tesla, exited the company as the National Transportation Safety Board has been investigating multiple crashes involving the electric vehicles. | ashraq/financial-news-articles | https://www.wsj.com/articles/tesla-executive-leaves-for-alphabet-self-driving-car-unit-waymo-1526160814?mod=yahoo_hs&yptr=yahoo |
Ford to restart production on popular F-150 pickup 1 Hour Ago Joe Hinrichs, Ford President of the Americas, speaks with CNBC’s Phil LeBeau about restarting production on the popular F-150 pickup truck. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/17/ford-to-restart-production-on-popular-f-150-pickup.html |
WILMINGTON, Delaware, May 10, 2018 /PRNewswire/ --
Peer-to-Peer Bitcoin Marketplace also Appoints a Regional Director of Africa
Paxful , a global leader in peer-to-peer bitcoin technology, today announced that it will build a blockchain technology incubation hub in Lagos, Nigeria, as part of its growing investment in Africa. The hub will launch in fall 2018 and provide a co-working space and services including mentorship, corporate and individual blockchain training, and networking for ICO advisors.
(Photo: https://mma.prnewswire.com/media/689469/Paxful_CEO_Ray_Youssef.jpg )
Paxful has also appointed Chuta Chimezie as Regional Director of Africa. Based out of Nigeria, he will be responsible for conducting business operations, facilitating local and international brand awareness, creating educational content on behalf of Paxful, recruiting and overseeing the incubator's day-to-day operations.
"Paxful is committed to fostering economic growth in Africa and helping the unbanked and underbanked gain access to the opportunities they have been denied for so long," said Paxful CEO Ray Youssef. "The incubator is simply a starting point to help driven entrepreneurs in an industry that has shattered boundaries all over the world."
Nigeria is the most populous country in Africa, with 190 million people. It also has the highest number of Paxful users on the continent. The country is renowned for its highly educated citizenry and startup culture, especially in fintech and e-commerce.
"It is a privilege to work with an organization that believes in investing in countries with great potential such as Nigeria," said Chimezie. "Paxful's initiatives have not only helped those in great need here, but are also helping African entrepreneurs achieve their full potential. Paxful is using Bitcoin to do good in the world, and I am proud to become an integral part of that."
Chimezie is a leading blockchain and cryptocurrency advocate, having founded the Blockchain Nigeria User Group , an initiative of advocates and entrepreneurs driving adoption in the country. He is the author of "Seizing Opportunities in Blockchain and Digital Currency Revolution," a reference text for regulators in Africa, designed to help them understand virtual currency as an emerging technology.
Paxful will sponsor several blockchain and crypto-focused events in Nigeria, and plans to sponsor and speak at others in Ghana, Cameroon and Kenya. The company has a long history of investment in Africa, launching the #BuiltwithBitcoin charitable program last year to encourage the cryptocurrency sector to contribute funds for humanitarian projects. With the help of non-profit organization Zam Zam , Paxful launched the initiative by donating $50,000 in bitcoin for the construction of a new Rwandan nursery school in the country's Bugesera District.
"We are where we are now because people gave back and it helped us tremendously," said Artur Schaback, co-founder and CTO, Paxful. "Nick Spanos funded the Bitcoin Center in New York right next to the NYSE, and it connected so many of us and gave us a home. We want to do the same for Africa and the emerging world. The real wave of bitcoin entrepreneurs and revolutionary blockchain projects has yet to emerge. Paxful will do everything we can to empower the Africa Cheetah generation."
Paxful is a bitcoin marketplace and digital wallet that brings the sharing economy and frictionless cryptocurrency commerce within easy reach of everyone, especially the underbanked. It enables buyers to purchase bitcoin directly from sellers via more than 300 different payment methods, including gift cards, cash deposits, online wallets or debit/credit cards. Paxful secures users against fraud by employing two-factor authentication and the highest-level encryption, and holding funds in escrow until the seller has confirmed the payment.
To learn more about Paxful, please visit: http://www.paxful.com
About Paxful:
Paxful is a peer-to-peer marketplace built on open source bitcoin and blockchain technology. It enables anyone in the world to buy, sell and accept bitcoin instantly. Paxful's wallet essentially functions as a universal translator for money as any form of money can become any other form of money. For example, gift cards can be converted to other gift cards, cash, or funds in any currency in any digital wallet anywhere. Paxful's platform has 1.7 million monthly active users globally, and offers 300+ payment methods. Some of the most popular methods include Bank Transfer, Paypal, Western Union, Amazon Gift Cards, and iTunes Gift Cards. Paxful is leading P2P finance and its mission to provide financial services to the unbanked and underbanked. The "overbanked" will also benefit from increased freedom and the elimination of the hassle with which banks so often burden their customers.
Contact:
Mark Prindle
Fusion PR
+1-646-452-7109
[email protected]
SOURCE Paxful | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/10/pr-newswire-paxful-expands-investment-in-africa-with-launch-of-nigerian-blockchain-incubator-hub.html |
In the fight to control CBS , former NBCUniversal CEO Bob Wright has placed all bets on Les Moonves , who he called one of "two really, really good media executives in this country."
He says CBS' ongoing resistance to a merger with Viacom will put an end to dual share structures at companies, once and for all.
"There's no benefit that Shari [Redstone] is bringing to the table with 10 percent ownership and trying to control all the board. It doesn't make sense anymore," Wright said Friday on CNBC's "Squawk on the Street."
National Amusements, owned by the Redstone family, has been trying to merge CBS and Viacom, both of which fall under its umbrella. But CBS and Viacom have not been able to come to terms on some aspects of the merger, and CBS has been fighting what it called interference by the Redstone family.
CBS wants to cut National Amusement's voting power by issuing a special dividend to shareholders.
As it stands, the share structure of CBS enables Shari Redstone , through theater and media holding company National Amusements, to maintain voting control over CBS, despite only owning about 10 percent of shares. Wright said these types of dual share structures can be helpful at the advent of a company, so "the guys that built it can protect the company for a while."
But CBS isn't new anymore.
"CBS is a 90-year-old company. I think the Delaware courts will look at that and say, 'This is a silly situation,'" Wright said.
Furthermore, Wright said the merger Redstone is pushing between CBS and Viacom would be damaging , insofar as it ousts Moonves. If Redstone is "smart," Wright said, she will relinquish some of her voting power and allow Moonves to take charge of a merged CBS and Viacom.
This type of dual share structures "usually helps new companies, so the owners, the guys that built it, can protect the company for a while," Wright said.
"The reality of it is this exposes [the dual share structure] as negative to shareholder values," Wright said.
"This is probably going to go down in history as the beginning of the end of that whole type of ownership," he added.
Veteran media analyst Porter Bibb also sees an end to two-class shareholding thanks to Moonves' maneuvers. "CBS and Les Moonves have lifted the lid on a Pandora's box," he said. "Dual-class shareholding is history."
While it may not happen immediately, he thinks it is going to evaporate over the long term as activist investors start to make their cases. "Hundreds of companies are going to be decimated by activist investors who are going to come in and challenge the two-class system," Bibb, managing partner at Mediatech Capital Partners, told " Power Lunch " on Friday.
Team Moonves has already suffered one setback. A judge declined Thursday to issue a restraining order against Shari Redstone, that would have prevented her from interfering with a special board meeting on Thursday.
— CNBC's Michelle Fox contributed to this report.
Disclosure: NBC and CNBC are divisions of NBCUniversal. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/18/ex-nbc-ceo-cbs-fight-is-the-beginning-of-the-end-of-dual-share-structures.html |
COPENHAGEN (Reuters) - In urban areas of Denmark officially designated as “ghettos”, some residents feel stigmatized and excluded from mainstream society.
Ibtisam Ashur, a resident of Mjolnerparken which is a housing estate that features on the Danish government's "Ghetto List", throws a stone during an excursion to the seaside with "Sjakket", a youth group that provides activities and support for children that live in socially vulnerable areas of Copenhagen's north-west area in Denmark, May 9, 2018. REUTERS/Andrew Kelly Denmark is the only country to formally classify certain residential zones as ghettos. An area fits into the category if more than half of its inhabitants originate from non-Western countries and it also matches certain other criteria, such as unemployment exceeding 40 percent.
“When journalists come here I want to talk about the good things, but they’re not interested. They are interested in gangs, conflict and ghettos. It saddens me,” said Salim El-Chahabi, a Palestinian who came to Denmark in 1999 and works as a youth job coordinator in the Copenhagen ghetto of Mjolnerparken.
“Only a few people create chaos, the rest of the inhabitants are good, polite family people. Unfortunately, a few people have ruined things for us.”
(Click reut.rs/2LEzZU6 for a package of pictures.)
Denmark has struggled for decades with how to integrate immigrants into its welfare state. The public debate intensified in 2015 with the arrival of large groups of refugees from conflicts in the Middle East and North Africa. The anti-immigrant Danish People’s Party became the second-largest party in parliament in an election that year.
Salim El-Chahabi, an inhabitant of Mjolnerparken, where he works as a youth job coordinator, stands in the doorway of his work shed that he dubs "The White House" as he assigns duties in the Mjolnerparken area of Copenhagen, Denmark, April 30, 2018. REUTERS/Andrew Kelly In March this year, Prime Minister Lars Lokke Rasmussen of the Liberal Party announced a plan aimed at boosting the integration of immigrants and eliminating ghettos - a word that is the same in Danish - by 2030.
Measures include banning criminals from moving into the areas, giving double punishment for crimes committed in ghettos, and demolishing then rebuilding parts of the zones.
The plan has met with a mixed response in Mjolnerparken in central Copenhagen, one of the country’s 25 ghettos - a term that originated in 16th-century Venice and was used to describe certain areas of the city to which Jews were restricted.
Slideshow (20 Images) Some Mjolnerparken residents say the government drive could improve their communities by reducing crime and boosting job prospects, but others fear it will simply entrench divisions by creating a parallel society where different rules apply.
“It will help, yes, but I believe it will also harm,” said 50-year-old El-Chahabi.
Denmark formally named areas ghettos in 2010 to target specific places which they deemed needed increased attention to integrate the residents.
“The official description makes the kids associate themselves with a life of crime and fast money,” said Iranian-born Khosrow Bayet, 55, who came to Denmark more than 30 years ago and is the leader of Sjakket, an after-school club in Copenhagen for children from the ghetto areas.
In Mjolnerparken, which gets its name from Norse god Thor’s famed hammer Mjolnir, more than four out of five inhabitants have a non-Western background and almost half have no job.
“I went to a doctor when I was younger with a backache and the doctor asked me if my husband beat me, and I was like ‘no!’” said Umm-Meyounah, 37, a mother-of-two who was born to Danish parents and married an immigrant from the Middle East.
“This is what you’re dealing with all the time. You’re spending all your time explaining that you’re not getting beaten up at home or that you’re not a terrorist.”
Reporting by Emil Gjerding Nielson; Editing by Jacob Gronholt-Pedersen and Pravin Char
| ashraq/financial-news-articles | https://www.reuters.com/article/us-denmark-immigration-widerimage/in-danish-ghettos-immigrants-feel-stigmatized-and-shut-out-idUSKCN1IU1DS |
WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday that NATO members that do not contribute fully to the group would be “dealt with,” and singled out Germany as a country he said was not doing enough.
U.S. President Donald Trump meets with NATO Secretary General Jens Stoltenberg at the White House in Washington, U.S., May 17, 2018. REUTERS/Kevin Lamarque At a Cabinet meeting attended by the North Atlantic Treaty Organization’s secretary general, Jens Stoltenberg, Trump listed countries he said had paid the amount “they’re supposed to be paying.”
“We have some that don’t and, well, they’ll be dealt with,” Trump said.
He added Germany “has not contributed what it should be contributing and it’s a very big beneficiary.”
“In particular Germany must demonstrate leadership in the alliance by addressing its longstanding shortfall in defense contributions,” Trump said.
Seated with members of his Cabinet, U.S. President Donald Trump speaks during a meeting with NATO Secretary General Jens Stoltenberg at the White House in Washington, U.S., May 17, 2018. REUTERS/Kevin Lamarque Despite often disagreeing with Trump in other areas, German Chancellor Angela Merkel agrees that Germany should contribute more and wants her country to boost military spending to meet the NATO target of 2 percent. She told senior military officers on Monday more spending is needed in light of changing security requirements in the world.
Stoltenberg praised Trump’s work on shoring up NATO, whose continued purpose Trump questioned while campaigning in the 2016 election.
Sitting on Trump’s right, Stoltenberg said: “Your leadership on defense spending has really helped to make a difference.”
“It is impacting allies because now all allies are increasing defense spending,” he said. “No allies are cutting their budgets.”
Reporting by James Oliphant; Writing by Lisa Lambert; Editing by Peter Cooney and Grant McCool
| ashraq/financial-news-articles | https://www.reuters.com/article/us-nato-usa-trump/trump-countries-not-meeting-nato-obligations-will-be-dealt-with-idUSKCN1II2QK |
LOS ANGELES (AP) _ Boingo Wireless Inc. (WIFI) on Thursday reported a loss of $3.2 million in its first quarter.
On a per-share basis, the Los Angeles-based company said it had a loss of 8 cents.
The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for a loss of 17 cents per share.
The provider of Wi-Fi hotspots in airports and other public places posted revenue of $58.2 million in the period, also topping Street forecasts. Five analysts surveyed by Zacks expected $52 million.
For the current quarter ending in July, Boingo said it expects revenue in the range of $54 million to $58 million.
The company expects a full-year loss of 48 cents to 36 cents per share, with revenue ranging from $227 million to $234 million.
Boingo shares have dropped slightly since the beginning of the year. The stock has increased 62 percent in the last 12 months.
This story was generated by Automated Insights ( http://automatedinsights.com/ap ) using data from Zacks Investment Research. Access a Zacks stock report on WIFI at https://www.zacks.com/ap/WIFI | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/04/the-associated-press-boingo-1q-earnings-snapshot.html |
Markets turn south on renewed trade worries 43 Mins Ago U.S. stock futures were sharply lower Wednesday morning after President Donald Trump's comments renewed trade worries, CNBC's Contessa Brewer reports. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/23/markets-turn-south-on-renewed-trade-worries.html |
Tommy Pham homered and Dexter Fowler knocked in two runs Wednesday as the St. Louis Cardinals salvaged a split of their interleague series with the Minnesota Twins, earning a 7-5 win at Target Field in Minneapolis.
Matt Carpenter added three hits, including a pair of doubles, and an RBI for St. Louis, which was outscored 17-2 this year in its first three meetings with Minnesota before running into old teammate Lance Lynn.
A rough early season got no better for Lynn (1-4), who needed a whopping 82 pitches to negotiate three innings. Lynn, making his first start against the Cardinals after pitching for them the last seven years, allowed four hits and three runs with four walks and five strikeouts. His earned run average plumped up to 7.47.
Lynn found trouble right away in the first. Fowler lined a two-out, two-run single into center that scored Pham and Jose Martinez. Fastball inaccuracy haunted Lynn throughout his stint, as he needed 34 pitches to get three outs.
Max Kepler drilled an RBI single in the bottom of the first, but Martinez made it 3-1 in the second with a two-out run-scoring single. Joe Mauer got that run back in the bottom of the second with an RBI single.
Paul DeJong laced a run-producing double in the fifth that made it a 4-2 game, but Logan Morrison pulled Minnesota within a run again by lining his fifth homer of the year in the sixth, an opposite field shot to the seats in left.
St. Louis tacked on two runs in the seventh on Jedd Gyorko’s RBI single and Carpenter’s run-scoring double to the right field corner. Pham cracked a solo shot to right-center in the eighth that gave the Cardinals a 7-3 margin.
The Twins drew within two runs in their half of the eighth on an RBI single by Morrison and a wild pitch by Bud Norris that scored Mitch Garver. But Norris retired all five batters he faced for his ninth save in as many chances.
St. Louis starter Miles Mikolas lasted just 4 2/3 innings, permitting seven hits and two runs with two walks and two strikeouts. Jordan Hicks (2-1) pitched a scoreless seventh to garner the win.
—Field Level Media
| ashraq/financial-news-articles | https://www.reuters.com/article/baseball-mlb-min-stl-recap/pham-fowler-lead-cardinals-past-twins-idUSMTZEE5GUAZA8W |
TORONTO, May 03, 2018 (GLOBE NEWSWIRE) -- Canadian General Investments, Limited (CGI) (TSX:CGI) (TSX:CGI.PR.D) (LSE:CGI) reports on an unaudited basis that its net asset value per share (NAV) at April 30, 2018 was $33.58, resulting in year-to-date and 12-month NAV returns, with dividends reinvested, of 1.9% and 17.5%, respectively. These compare with the -2.8% and 3.1% returns of the benchmark S&P/TSX Composite Index on a total return basis for the same periods.
The closing price for CGI’s common shares at April 30, 2018 was $23.30, resulting in year-to-date and 12-month share price returns, with dividends reinvested, of -1.0% and 16.7%, respectively.
The sector weightings of CGI’s investment portfolio at market as of April 30, 2018 were as follows:
Materials 20.9 % Consumer Discretionary 17.2 % Information Technology 13.9 % Industrials 13.6 % Financials 13.3 % Energy 12.6 % Telecommunication Services 3.0 % Health Care 2.3 % Real Estate 1.2 % Utilities 0.7 % Consumer Staples 0.7 % Cash & Cash Equivalents 0.6 % The top ten investments which comprised 36.6% of the investment portfolio at market as of April 30, 2018 were as follows:
NVIDIA Corporation 4.6 % Dollarama Inc. 4.2 % Amazon.com, Inc. 4.1 % First Quantum Minerals Ltd. 3.9 % Shopify Inc. 3.7 % Air Canada 3.4 % Franco-Nevada Corporation 3.4 % Canadian Pacific Railway Limited 3.2 % Bank of Montreal 3.2 % Norbord Inc. 2.9 % FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian General Investments, Limited
Jonathan A. Morgan
President and CEO
Phone: (416) 366-2931
Fax: (416) 366-2729
e-mail: [email protected]
website: www.canadiangeneralinvestments.ca
Source:Canadian General Investments, Limited | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/03/globe-newswire-canadian-general-investments-investment-update--unaudited.html |
May 8, 2018 / 8:17 PM / a few seconds ago Iran faces banking turmoil after U.S. nuclear deal exit Jonathan Saul , Parisa Hafezi 6 Min Read
LONDON/ANKARA (Reuters) - Some Iranians had been cashing in their savings even before U.S. President Donald Trump’s announcement he would pull out from the international nuclear deal with Iran, straining a banking system weighed down by bad loans and years of isolation. FILE PHOTO: A staff member removes the Iranian flag from the stage after a group picture with foreign ministers and representatives of the U.S., Iran, China, Russia, Britain, Germany, France and the European Union during the Iran nuclear talks at the Vienna International Center in Vienna, Austria July 14, 2015. REUTERS/Carlos Barria/File Photo
An official with Iran’s biggest state-owned Melli Bank told Reuters savings had declined by an unspecified amount, although he said this was a temporary phenomenon and that they would recover once the uncertainty over Trump’s decision passed.
“When there is political uncertainty, its psychological impact on people causes a drop in savings. But it will pass after Trump’s deadline,” the official said before the announcement, declining to be named.
Trump said on Tuesday he would quit the deal and impose “the highest level of economic sanctions”.
A senior Iranian central bank official said conditions within the banking system had deteriorated in the past year, and “we have still not passed the danger zone” but added that the central bank had “all the measures ready to prevent any crisis”.
Officials with other leading lenders, Saman, Pasargad and Middle East Bank declined to comment.
The loss of confidence both reflects and contributes to wider problems threatening pragmatist President Hassan Rouhani in Iran’s faction-ridden clerical establishment: investment has dried up as banks limit lending, growth is slowing and unemployment is at a record high, exposing Rouhani to growing criticism from hardliners.
“I am worried about a war,” said Mina Abdelsalehi, 61, a retired teacher in Tehran. “I have changed all my savings into gold coins that I can cash easily if anything happens.”
The rial currency lost close to half of its value in the six months to April in anticipation of a tougher U.S. approach, forcing Tehran to ban domestic foreign exchange transactions and limit foreign currency holdings to $12,000.
This failed to stop Iranians trying to buy hard currency on Tuesday, promoting a further slide in the rial, according to a foreign exchange website.
“Prices are going up almost every hour,” said Ali Rasti, 45, owner of a real estate agency in Tehran. “People are worried and prefer to keep their money at home.”
A separate Iranian banking official also said Iranians had taken out money. “Fearing a war and more sanctions, many Iranians have withdrawn their cash from banks,” he said.
Mohammad Reza Pourebrahimi, head of parliament’s economic committee, was quoted by the semi official ISNA news agency in March as saying capital outflows had been $30 billion in recent months. The International Monetary Fund said Iran’s reserves were at nearly $112 billion in 2017/18. DASHED HOPES
Iran had struggled to reap the benefits from the accord, which lifted international sanctions on the central bank and lenders in 2016 in return for curbs on its nuclear program, but left U.S. restrictions in place to assuage fears it would benefit hardliners like the Revolutionary Guards (IRGC).
The IRGC, which reports directly to Iran’s Supreme leader Ayatollah Ali Khamenei, controls vast segments of the economy including some banking interests as well as everything from ports management to telecommunications.
Iranian banks re-established relationships with more than 200 international counterparts, but any business active in Iran has to ensure there are no ties with IRGC interests to avoid fines or bars on trading in the United States.
“Money is moving but not as freely as governments had hoped,” said Justine Walker, head of sanctions policy with trade association UK Finance, saying complications had multiplied since Trump became president. Euro transactions were taking place, she said, but sterling payments “remain challenging”.
Sources involved in transactions said they rarely exceeded 200 million euros ($240 million) due to difficulties with clearing payments.
Nigel Kushner, chief executive of British law firm W Legal, said his clients exporting consumer goods to Iran had reported a 50 percent drop in purchases over the past two months. “There is a risk of further (bank) liquidity concerns,” he said.
George Bennet, managing partner of financial services advisory firm OSACO Financial, which is active in Iran, said European lenders still in Iran were already nervous and limiting transactions to their largest and most valuable customers.
“The larger of the European banks currently doing business, which themselves are not large, with Iran will pull out of the market altogether,” he said, when asked about the impact of the U.S. withdrawal. OTHER CONSTRAINTS
Rouhani gambled on attracting foreign investment to help raise living standards but a raft of deals including plane purchases have been already been delayed.
FATF, a global group of government anti-money-laundering agencies, has kept Iran on its blacklist, adding to wariness by Western banks with dealing with Iran due to reputational risks.
Rouhani has struggled to reform the banking system, which, with 30 banks and other credit institutions, is more fragmented than those of other emerging markets and heavily burdened by bad loans.
Finance sources have estimated outstanding loans at around $283 billion and non-performing loans (NPLs) were estimated to have reached 12.5 percent in 2017 by US-based financial industry body the Institute of International Finance (IIF).
The latest official figure, 11.7 percent in 2016, equates to more than $30 billion. Some finance sources say NPLs could be even higher at close to 15 percent.
A textile factory owner in Mashhad said the government wanted to improve the economy but could not support business.
“How can I run my business when the dollar exchange rate is rising and I cannot get loans from the banks because of the high rates?” he said on condition of anonymity, explaining he had laid off around half his 65 employees to try to stay afloat.
“I am not sure how long I can keep the factory open.”
($1 = 0.8420 euros) | ashraq/financial-news-articles | https://www.reuters.com/article/us-iran-nuclear-banks/iran-faces-banking-turmoil-after-u-s-nuclear-deal-exit-idUSKBN1I9329 |
Colombia, a country that has battled powerful drug lords and guerilla fighters, has become more stable recently, thanks in large part to an improved political situation and increased safety. But according to some Colombians, that may all soon change, depending on the result on this weekend’s presidential election.
This election is the country’s first since a historic peace deal that ended 50 years of war between the Colombian government and the insurgent group FARC , known for its violence and kidnappings. As part of the agreement, FARC was guaranteed 10 seats out of the 268 within Colombia’s Congress until 2026 instead of the jail time many hoped the group’s leaders would receive.
In essence, the agreement turned FARC into a political party. A Gallup poll in August 2017 found that 12% of Colombians now have a favorable opinion of the FARC —slightly higher than the 10% for the country’s traditional political parties. The agreement was an incredibly polarizing topic, and the country is still split over the peace agreement.
That said, homicide rates are the lowest they’ve been in years , but coca farming remains a problem. Additionally, small groups have broken away from FARC and are now operating independently, essentially keep FARC alive on a smaller scale.
In his election campaign, frontrunner candidate Ivan Duque, who opposes the peace agreement, takes a tough stance against corruption and FARC , including advocating that drug trafficking be a crime that is ineligible for amnesty. The other leading candidate Gustavo Petro, on the other hand, supports the deal and goes so far as to blame former Colombian President Alvaro Uribe for the expansion of paramilitarism, or the war-like state in the country .
The recurring fear for many Colombians is that their country will become the next Venezuela, which is wrought with inflation and political turmoil, should Petro be elected. Petro is a strong supporter of embattled Venezuelan President Nicolas Maduro.
In recent years, American tourists have flocked to Colombia, the third most populous in South America . Americans represent the largest group of tourists, followed by Europeans. In 2006, only 1 million people visited Colombia, but that increased to 5.8 million in 2017 .
In 2015, Colombia was cited in a MasterCard study as being among the 10 countries that were expected to have the fastest-growing tourist markets . Its tourism growth rate was expected to exceed the overall growth of South America.
Bogota, the capital and largest city, accounts for almost 50% of Colombia’s tourism, followed by the coastal city of Cartagena, with its tropical beaches and picturesque historic district. Medellin, a city that gained notoriety from hometown cocaine drug lord Pablo Escobar, and Cali, also of drug trafficking fame, are also popular destinations.
Americans are attracted by the country’s increased safety (largely thanks to the peace deal) and the decline in value of the peso, which makes for a favorable exchange rate. Top that off with generally cheap prices for American travelers, and you’ve hit gold. But, should Colombia become like a Venezuela as some Colombians fear, no one will want to visit.
Petro, a former mayor of the capital city of Bogota, is also a former M-19 gang member who served a leader of its political arm . He is campaigning on building a socialist economy and claims to be the champion of the common folk, similar to now deceased Venezuelan President Hugo Chavez. While in M-19, a gang separate from FARC which he joined as a teenager, Petro played a crucial role in promoting peace talks with the Colombian government , ushering in amnesty for his fellow gang members.
Petro, who has called Colombia one of the world’s most unequal countries, wants to close the inequality gap. He hopes to address the problem by taxing owners of unproductive land (much of which has been used to farm coca and has not been transitioned), overhaul the tax code, and move away from the export of oil and coal and be more dependent on clean energy instead. According to Reuters , “to contain the fiscal deficit, he would promote another tax reform to raise duties on corporate dividends and foreign profits and eliminate tax exemptions for large investors.”
As mayor, Petro had trouble keeping leadership positions filled, with over two dozen administration members resigning during his tenure (sound familiar?) . His advisor positions were filled with former guerilleros, like himself.
In late 2013, Petro was removed from his mayoral position, the most powerful in the country after the presidency, for mismanagement of garbage collection and was subsequently banned from holding office for 15 years. The ruling was later overturned .
Because of his past and his leftist ideologies, dissidents tried to assassinate Petro while on the campaign trail and he has received numerous death threats. If he wins, he would likely get little support in the Colombian Congress, making it an uphill battle to enact his ideas.
Critics say Petro’s policies would cause inflation and a devaluation of the peso. They also say it could lead to restrictions on the sale of U.S. dollars, hurt pension plans, and increase unemployment and insecurity.
Petro supporters like Simon Rivera, a 26-year-old architect from Medellin, say he is the change the country needs. “He is different from the ones who have historically governed the country. He is not from the traditional families,” says Rivera.
Rivera hopes that he will help bring more equality to Colombia and continue to do the work he did as mayor of Bogota—create jobs, reduce the cost of living, and build schools.
When it comes to Petro’s past gang affiliation, it doesn’t bother Rivera. “In a country with a history where the elites decided to split up the power and made other people feel left out, some decide to pick up arms to fight for political power.” That’s just what Petro did.
Rivera also believes that “the history of a candidate is a reflection of the many factors around them in the different parts of their lives.”
But others see Petro as a socialist who will bring only bad things to Colombia. Duque, on the other hand, is a business-friendly politician who wants to encourage more international investment in the country.
“The specter of a socialist candidate is certainly alarming,” Charle Gamba, chief executive of Canadian energy company Canacol, which has most of its operations in Colombia, said in an interview with Bloomberg last month. Mario Castro, a strategist at Nomura Holdings, foresees a “very negative” market reaction if there’s strong public backing for Petro, says Bloomberg .
Other candidates who appear to be trailing the frontrunners are Sergio Farjado, a former governor in Colombia focused on education; German Vargas, current vice president for Juan Manuel Santos; Humberto de la Calle, who was instrumental in the FARC peace deal; and Jorge Antonio Trujillo, who trails in the polls.
According to Mario Esteban Madrid, a Colombian in his late 20s who lives in Medellin and recently opened his own company, Duque represents “a continuity of institutionalism,” while Petro represents a “social and economic left turn.”
Madrid says, “Colombia is about to define its future, deciding between keeping its relatively stable path or beginning a total change.” It seems eerily similar to the American choice between Donald Trump and Hilary Clinton for president.
According to one poll, two-thirds of Colombians are unhappy with the way the country is going, so the anti-establishment rhetoric is certainly hitting a nerve.
Petro, eerily similar to Trump, has railed against voter fraud and has called on his supporters to act as voting witnesses, watching over the polls.
Colombia has been known as a reliable right-wing South American country, despite FARC’s influences in the past, and has never elected a leftist president. It is the only South American nation not to have done so .
Alvaro Arango, who also lives in Medellin and is a former president of food conglomerate Nutresa, says, “If Petro wins, we run the risk of not generating a dynamic economy in respect to the industries that bring wealth the country [coffee, oil, flowers, etc.].”
Arango also says, “In the case that Ivan Duque wins, he would give priority to instigate the economic development favored by formal business and the knowledge to generate wealth and eliminate social inequalities.” Arango does, however, believe that no matter who wins, the institutional and democratic Colombian tradition will prevail.
According to Colombian polls , which should be taken with a grain of salt, Duque’s support has grown, and is especially strong in the 45-54 age group, He remains in the lead, but Petro has also found his niche demographic and continues to build his support.
In the hypothetical event of a runoff, Duque is expected to win. Currently, over 30% of those polled said they would “never vote for Petro,” and when narrowed down to businesspeople, only 1.5% would vote for him.
The love-him-or-hate-him view, however, did get him the most votes of any representative in the Colombian legislature in 2002 .
A first-round ballot in the presidential election will be held on May 27 , but if no candidate gets more than half the votes, a second round will be held in June. The new president will take office in August.
| ashraq/financial-news-articles | http://fortune.com/2018/05/24/colombia-presidential-election-gustavo-petro-ivan-duque-farc/ |
Total Votes:
Not a Scientific Survey. Results may not total 100% due to rounding.
Small-cap stocks typically benefit when the dollar gains in value, whereas larger-cap stocks and multinational companies tend to feel the heat under the same conditions. Smaller companies deal with more domestic sales, typically without the burden of having to translate overseas revenue from foreign currencies back into dollar terms.
"Looking at the relative ratio between the Russell 2000 and the S&P 500, you're seeing small caps begin to outperform versus the large caps, in conjunction with that turn in the dollar, and we think that continues. We're especially bullish on small-cap growth," Wald said.
The dollar is certainly going to be a headwind for the S&P 500 over small-cap stocks, said Stacey Gilbert, head of derivative strategy at Susquehanna. Small-cap companies also should feel benefits from tax reform, Gilbert said Tuesday on "Trading Nation."
Options in the IWM , an ETF tracking the Russell 2000 and the SPY , an ETF tracking the S&P 500, are trading relatively close to the same price as a percent of their underlying index price, Gilbert said. This is a notably rare occurrence, and one that prompts Gilbert to suggest playing the options in small caps.
"Relative to the risk that's being priced into large caps, I think it's very attractive on the small-cap side," on a risk-reward basis, she said.
The Russell 2000 was up half a percent Wednesday. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/09/the-dollar-is-giving-these-stocks-a-boost-and-some-see-bigger-rally.html |
May 3, 2018 / 12:32 PM / a minute ago German glass fiber operators lobby against Vodafone-Liberty deal Douglas Busvine 4 Min Read
FRANKFURT (Reuters) - A lobby group representing Germany’s glass fiber industry says a European merger between Vodafone ( VOD.L ) and Liberty Global ( LBTYA.O ) should be blocked because it would create a cable TV monopoly in Germany. The headquarters of Vodafone Germany are pictured in Duesseldorf September 12, 2013. . REUTERS/Ina Fassbender
If the deal, reported to be worth 16.5 billion euros ($19.8 billion) including debt, is to be waved through it should be only on the condition that the merged entity’s network is opened to third-party access, the Buglas industry group said.
Vodafone revived talks in February about buying Liberty’s cable assets in continental Europe, with the main prize being Germany’s Unitymedia. Sources say a deal could be announced as soon as next week.
That has alarmed competitors who say that, if it goes through, the transaction would reconstitute a dominant player that was broken up when it was sold off by Deutsche Telekom ( DTEGn.DE ) in the last decade.
“A new monopoly would be created,” Wolfgang Heer, head of the Buglas industry group that comprises 80 companies and municipalities, told Reuters.
Critics argue that, with the cable operators also offering high-speed internet to households and businesses, a merged business should, like Deutsche Telekom, have to open access to its network to ensure sufficient competition.
The head of Germany’s Federal Network Regulator, BNetzA, may impose such a requirement if he finds cable operators dominate regional markets. Price controls would also be conceivable, Jochen Homann told a newspaper this week.
Both Vodafone and Liberty declined to comment. GIGABIT SOCIETY
Vodafone and Liberty have flirted repeatedly with a major deal in recent years, and the option now on the table would exclude Liberty’s UK assets while including operations in other central European markets.
There’s little doubt, though, that the deal revolves around Unitymedia, the leading operator in the German states of Hesse, Baden-Wuerttemberg and North Rhine-Westphalia with 7.2 million cable customers.
Vodafone, Germany’s No.2 wireless player, operates across the rest of the country, meaning there is no overlap in the two companies’ fixed-line assets, the deal’s backers say.
Buglas argues, however, a merger would set back the cause of providing super-fast broadband across Germany by 2025, creating a so-called ‘Gigabit society’ that is competitive with other hi-tech economies.
In a position paper seen by Reuters, it said the proposed deal was “not approvable” and it would call for it to be referred to European Union competition authorities for review.
“If the deal is approved, against expectations, then strict conditions must be attached,” it said, adding this should require that the network is opened to third parties.
Sources familiar with the talks say a referral to the European Commission is likely in any case given the deal’s size, a view backed by German competition officials.
Deutsche Telekom CEO Tim Hoettges has already clashed with Vodafone’s Vittorio Colao on the Liberty deal, calling it“totally unacceptable”.
The market leader remains skeptical: “Experts are rightly critical of re-monopolising the cable networks,” it said in comments to Reuters.
The VATM telecoms industry lobby, of which Vodafone is a member, took a more favorable view.
“VATM would welcome it from the point of view of consumers if there is a strong competitor to Deutsche Telekom,” it said.
“It is a matter for the regulator to examine whether any conditions are necessary from a competition perspective.”
($1 = 0.8338 euros) | ashraq/financial-news-articles | https://uk.reuters.com/article/us-liberty-m-a-vodafone-germany/german-glass-fiber-operators-lobby-against-vodafone-liberty-deal-idUKKBN1I41F9 |
May 31, 2018 / 11:40 AM / Updated an hour ago Danish parliament bans the wearing of face veils in public Emil Gjerding Nielson , Teis Jensen 3 Min Read
COPENHAGEN (Reuters) - Denmark has banned the wearing of face veils in public, joining France and other European countries in outlawing the burqa and the niqab worn by some Muslim women to uphold what some politicians say are secular and democratic values. Women in niqab are pictured after the Danish Parliament banned the wearing of face veils in public, at Christiansborg Palace in Copenhagen, Denmark, May 31, 2018. Ritzau Scanpix/Mads Claus Rasmussen/via REUTERS
Parliament voted on Thursday for the ban proposed by the centre-right government, which says veils are contrary to Danish values. Opponents say the ban, which will take effect on Aug. 1, infringes women’s right to dress as they choose.
Under the law, police can instruct women to remove their veils or order them to leave public areas. Justice Minister Soren Pape Poulsen has said that officers would in practice fine them and tell them “to go home”.
Fines would range from 1,000 Danish crowns ($160) for a first offence to 10,000 crowns for a fourth violation. Women in niqab exit the audience seats after the Danish Parliament banned the wearing of face veils in public, at Christiansborg Palace in Copenhagen, Denmark, May 31, 2018. Ritzau Scanpix/Mads Claus Rasmussen/via REUTERS
France, Belgium, the Netherlands, Bulgaria and the German state of Bavaria have all imposed some restrictions on full-face veils in public places.
Denmark has struggled for decades with how to integrate non-Western immigrants into its welfare state. Public debate intensified in 2015 with the arrival of large groups of refugees from conflicts in the Middle East and elsewhere. Slideshow (4 Images)
The anti-immigrant Danish People’s Party became the second-largest party in an election that year and now supports the coalition government in parliament.
Zainab Ibn Hssain, who lives in Copenhagen and has been wearing the niqab for the last year, told Reuters: “It’s not nice. It will mean that I won’t be able to go to school, go to work or go out with my family.”
“But I won’t take my niqab off so I have to find another solution,” the 20-year-old added.
Pape Poulsen, who leads the conservative party in the coalition, has described keeping one’s face hidden in public as “incompatible with the values of Danish society or respect for the community”.
Ibn Hssain rejected suggestions that wearing the veil symbolised the rejection of Danish values or oppression of women. “It has nothing to do with integration or that we’re oppressed. For me it is a war on Islam,” she said.
Human rights group Amnesty International called the ban “a discriminatory violation of women’s rights ... All women should be free to dress as they please and to wear clothing that expresses their identity or beliefs”.
Ibn Hssain, who says she has been yelled at and spat at in public for wearing the niqab, will stay for now in Denmark despite the ban. “If I leave Denmark the politicians win. I feel what they deep down want is for Muslims to leave Denmark,” she said. Editing by Jacob Gronholt-Pedersen, Robin Pomeroy and David Stamp | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-denmark-religion/danish-lawmakers-ban-burqas-idUKKCN1IW1IQ |
Dow Jones, a News Corp company News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services Dow Jones | ashraq/financial-news-articles | http://jp.wsj.com/articles/SB10633943806588253310504584224230310687714 |
May 29, 2018 / 9:47 AM / in 16 minutes No antitrust probe for Lufthansa over fares after Air Berlin collapse Reuters Staff 2 Min Read
BERLIN (Reuters) - Lufthansa ( LHAG.DE ) will not be investigated for market abuse over rising ticket prices following the collapse of local rival Air Berlin ( AB1.DE ), the German cartel office said on Tuesday. FILE PHOTO: Flags with the German airline Lufthansa sign flutter next to the office building in Frankfurt, Germany March 15, 2018. REUTERS/Ralph Orlowski/File Photo
The watchdog had received complaints over high ticket prices and had been looking into the matter with a view to decide whether to instigate a full investigation.
Air Berlin collapsed in October last year, leaving Lufthansa with a monopoly on some German domestic routes for a few months.
The cartel office said that Lufthansa tickets were on average 25-30 percent more expensive after the insolvency but fell again after easyJet ( EZJ.L ) entered the market following the acquisition of parts of Air Berlin.
“The price increase is significant, but does not justify the instigation of market abuse proceedings,” cartel office president Andreas Mundt said in a statement.
A Lufthansa spokesman said the company acknowledged the decision, declining to comment further. Reporting by Victoria Bryan; Editing by Christoph Steitz | ashraq/financial-news-articles | https://www.reuters.com/article/us-lufthansa-fares/no-antitrust-probe-for-lufthansa-over-fares-after-air-berlin-collapse-idUSKCN1IU10G |
Retail stocks boost Wall Street Wednesday, May 16, 2018 - 01:06
Retail and tech stocks led Wall Street higher Wednesday, sending the S&P 500 back in the black and the Russell 2000 to a record high. Fred Katayama reports.
Retail and tech stocks led Wall Street higher Wednesday, sending the S&P 500 back in the black and the Russell 2000 to a record high. Fred Katayama reports. //reut.rs/2Gr95Lp | ashraq/financial-news-articles | https://www.reuters.com/video/2018/05/16/retail-stocks-boost-wall-street?videoId=427522100 |
May 4, 2018 / 2:36 PM / in 3 minutes Trump lawyer Giuliani defends legality of porn star payment Roberta Rampton 5 Min Read
WASHINGTON (Reuters) - Hours after President Donald Trump said his lawyer Rudy Giuliani did not have “his facts straight,” the former New York mayor issued a statement on Friday saying $130,000 in hush money paid to an adult-film star before the 2016 election was not an election law violation.
Giuliani on Thursday had connected the payment to Stormy Daniels by the president’s personal lawyer, Michael Cohen, to keep quiet about a 2006 sexual encounter she said she had with Trump to the election, remarks that raised the possibility that the transaction violated federal election law.
“There is no campaign violation. The payment was made to resolve a personal and false allegation in order to protect the President’s family. It would have been done in any event, whether he was a candidate or not,” Giuliani said in a brief statement “intended to clarify the views I expressed over the past few days.”
Giuliani in a TV interview on Thursday wondered what would have happened if Daniels’ claim of an affair had come up in a debate between Trump and his Democratic opponent, Hillary Clinton, adding, “Cohen made it go away. He did his job.”
In comments to reporters at the White House before boarding a helicopter, Trump seemed to undercut Giuliani, a former federal prosecutor who the president recently hired to represent him. Giuliani conducted a series of news media interviews this week that only intensified the controversy involving Daniels, whose real name is Stephanie Clifford, and other matters.
“Rudy is a great guy, but he just started a day ago. But he really has his heart into it. He’s working hard. He’s learning the subject matter,” Trump said. Related Coverage U.S. judge questions special counsel's powers in Manafort case
“He’ll get his facts straight,” Trump added, though he did not specify the statements by Giuliani, who joined the president’s legal team on April 19, to which he was referring.
Giuliani late on Wednesday revealed that Trump had repaid Cohen for the $130,000 the lawyer had provided to Daniels. Trump previously had denied knowing about the payment.
The next morning, Trump said on Twitter that Cohen was paid back through a monthly retainer, not campaign funds, to stop Daniels’“false and extortionist accusations.” U.S. President Donald Trump gestures before boarding Marine One to travel to Texas from the South Lawn of the White House in Washington, U.S., May 4, 2018. REUTERS/Matej Leskovsek “COVERED WRONG”
Asked about the matter on Friday, Trump said, without explicitly mentioning Giuliani, that “virtually everything said has been said incorrectly, and it’s been said wrong, or it’s been covered wrong by the press.”
In his statement on Friday, Giuliani said, “My references to timing were not describing my understanding of the President’s knowledge, but instead, my understanding of these matters,” but did not provide specifics.
Giuliani in an appearance on Fox News on Wednesday had said Trump fired James Comey as FBI director last year because Comey declined to state publicly that Trump was not at the time a target of the agency’s investigation into Russia’s role in the election. Critics have pointed to Comey’s firing as evidence of obstruction of justice by Trump.
In his Friday statement, Giuliani said it was “undisputed” that Trump had the constitutional power to fire Comey and that doing so has turned out to be “plainly in the best interests of our nation.”
The Republican president, facing legal troubles on several fronts, also indicated he would be willing to be interviewed in Special Counsel Robert Mueller’s investigation, but only if he knew he would be treated fairly. Mueller is probing potential collusion between the Trump campaign and Russia and whether the president has unlawfully sought to obstruct the investigation.
“Nobody wants to speak more than me ... because we’ve done nothing wrong,” Trump said. FILE PHOTO: FBI Director Robert Mueller testifies before the House Judiciary Committee hearing on Federal Bureau of Investigation oversight on Capitol Hill in Washington, DC, U.S., June 13, 2013. REUTERS/Yuri Gripas/File Photo
“I have to find that we’re going to be treated fairly, because everybody sees it now, and it is a pure witch hunt,” Trump added, while incorrectly saying that Mueller, a Republican former FBI director, has a “group of investigators that are all Democrats.”
“If I thought it was fair, I would override my lawyer,” Trump added.
During a pretrial hearing in Virginia on Mueller’s charges against Trump’s former campaign chairman, Paul Manafort, U.S. District Judge T.S. Ellis III openly questioned whether the special counsel had exceeded his prosecutorial powers by bringing the case. Reporting by Roberta Rampton, Tim Ahmann and Susan Heavey; Writing by Will Dunham; Editing by Bernadette Baum and Jonathan Oatis | ashraq/financial-news-articles | https://www.reuters.com/article/us-usa-trump-russia/trump-says-lawyers-have-advised-him-against-mueller-talks-idUSKBN1I51S6 |
(Reuters) - DynCorp International Inc, a U.S. defense contractor owned by private equity firm Cerberus Capital Management LP, is exploring a sale that could fetch more than $1.3 billion, three people familiar with the matter said.
The move to sell DynCorp comes as Cerberus co-founder and CEO Stephen Feinberg was appointed by U.S. President Donald Trump as chairman of his administration’s intelligence advisory board to review the U.S. government’s intelligence operations.
Cerberus has hired two investment banks that are in the early stages of soliciting offers from potential buyers for DynCorp, the sources added. DynCorp could be valued at around eight times its 2018 earnings after taxes of $168 million, the sources said.
The sources asked not to be identified because the negotiations are confidential. A spokesperson for Cerberus declined to comment.
Last year, Cerberus said if its chief were to join the U.S. administration clearing hurdles associated with conflicts of interest would require Feinberg to provide “voluminous information” and disclosures to the Office of Government Ethics.
In 2010, Cerberus took DynCorp private for more than $1 billion. The company has had contracts to train Iraqi police and support U.S. troops in Afghanistan.
The timing of the sale may be opportune for Cerberus, after the Pentagon’s budget was increased to nearly $700 billion last year. Rising U.S. government spending for the Pentagon has fueled a spree of dealmaking among defense services companies.
Moody’s Investors Service Inc recently upgraded DynCorp’s rating on its debt. Moody’s analyst Bruce Herskovics said, “The upgrade reflects backlog growth coupled with improved profitability under existing contracts that should continue over 2018-2019.”
In April, weapons maker General Dynamics Corp ( GD.N ) bought CSRA Inc CSRA.N for $9.7 billion to expand its government services business.
This month, defense electronics company L3 Technologies Inc ( LLL.N ) sold Vertex, its aerospace and defense logistics support services unit, for $540 million.
Remington Outdoor Co Inc, which was once a Cerberus investment, and makes the Bushmaster rifle emerged from Chapter 11 bankruptcy last week.
Trade publication Debtwire reported news of DynCorp exploring a sale earlier on Wednesday.
Reporting by Mike Stone in Washington; editing by Greg Roumeliotis and Cynthia Osterman
| ashraq/financial-news-articles | https://www.reuters.com/article/us-dyncorp-m-a/cerberus-seeks-sale-of-u-s-defense-contractor-dyncorp-sources-idUSKCN1IP03Z |
* Possibility of Italian elections unnerves financial markets
* Euro weighed by sharp decline in German bund yields
* Dollar index around its highest since mid-November
By Shinichi Saoshiro
TOKYO, May 29 (Reuters) - The euro struggled near a 6-1/2-month low against the dollar on Tuesday, the bounce seen at the start of the week fading out as investors took a grim view of Italy seemingly heading towards another election.
The euro was little changed at $1.1629 after slipping overnight to $1.1607, its lowest since Nov. 9.
The euro had spiked to $1.1728 earlier on Monday after Italian President Sergio Mattarella rejected a vocal critic of the single currency as economy minister.
But Mattarella’s veto angered the anti-establishment parties which had been trying to forge an alliance, prompting them to abandon their coalition plans and setting the stage for fresh elections.
Financial markets fear that the elections, which could take place as early as August, are seen as a quasi-referendum over Italy’s role in the European Union and euro zone and could end up strengthening eurosceptic parties even further.
Such worries have resulted in a big sell-off of Italian debt and a surge in safe-haven German bond prices. As a result, the yield spread between 10-year Italian and German bonds has reached its highest since December 2013.
“The sudden, broad widening of euro zone yield spreads caught market participants off guard and is a key factor in the euro’s sell-off. Basically, German bund yields are declining and this is negative for the euro,” said Yukio Ishizaki, senior currency strategist at Daiwa Securities in Tokyo.
“There are still a lot of euro long positions that had been built up during the currency’s bull phase until May that need to be unwound, and the euro’s decline looks set to continue indefinitely.”
The dollar index against a basket of six major currencies stood at 94.394 and not far from a 6-1/2-month peak of 94.496 scaled on Monday.
The U.S. currency was 0.25 percent lower at 109.155 yen after rising briefly to 109.830 on Monday.
The euro was down 0.2 percent at 126.960 yen after brushing 126.820, its lowest since late June 2017.
The Australian and New Zealand dollars were steady at $0.7545 and $0.6939, respectively. (Reporting by Shinichi Saoshiro Editing by Eric Meijer)
| ashraq/financial-news-articles | https://www.reuters.com/article/global-forex/forex-euro-back-near-6-1-2-mth-lows-amid-italian-election-concerns-idUSL3N1T0012 |
The day that many sports fans and gamblers have been waiting for is here. Nevada's monopoly on legal sports betting will come to an end after the U.S. Supreme Court voided the Professional and Amateur Sports Protection Act, a federal law which prevented states from making individual decisions on matters such as the legalization of sports betting.
Sportsbook operator William Hill intends to offer sports betting in New Jersey locations as "soon as responsibly possible," according to CEO Joe Asher. "We're thinking in the realm of weeks."
MGM Resorts International CEO Jim Murren told CNBC on Monday that it will be able to offer sports betting around the country "very quickly."
"We have already established the architecture to deploy sports betting as soon as the states allow us to do that," Murren said. "We have already the software. We have our mobile app called PlayMGM that is already activated in Nevada."
Many casino stocks popped on the news, including MGM, and major sports team owners like Dallas Mavericks owner Mark Cuban said on Monday that the decision will increase team values by as much as double. But professional sports leagues are among the significant parties that still have major questions about how the legalized gambling rollout occurs across the states.
Here are a few of the biggest decisions yet to be figured out as states move to offer legalized sports bets.
1. How much do the pro sports leagues get paid? Leagues including the National Basketball Association and Major League Baseball initially pushed for a 1 percent integrity fee, though the amount they'll receive, if any, is likely to be slightly less and could differ on a state-by-state basis. New York state recently proposed a 0.25 percent integrity fee as part of legalized sports legislation. West Virginia has said it won't pay a fee to the leagues at all.
The NBA and other leagues have defended their reasoning for the fee as a need to police the game from criminals looking to fix games, and implement compliance systems across their leagues. The NBA maintained this stance after the U.S. Supreme Court ruling.
"We will remain active in ongoing discussions with state legislatures. Regardless of the particulars of any future sports betting law, the integrity of our game remains our highest priority," NBA Commissioner Adam Silver said in a written statement.
Critics of the fee argue that the leagues are hurting the potential sports betting business because the legal bookmakers won't be able to compete with the underground market if you decrease the margins.
show chapters MGM CEO: We are ready to deploy sports betting almost immediately 3 Hours Ago | 04:03 William Hill CEO Joe Asher said on a conference call after the court decision that moving bettors to the legal marketplace could be a difficult feat. He said illegal bookmakers have "structural advantages," and that's not only limited to the lack of league integrity fees.
Those books do not pay taxes and they don't have to deal with the compliance issues that regulated books will have. Asher said that states with high tax rates, such as Pennsylvania will find it difficult to compete with the underground market. Pennsylvania is a high tax state for existing gambling operations, and it's expected to treat sportsbooks similarly.
States are hoping to generate a new significant source of revenue from gambling businesses.
"Illegal bookies in Philadelphia and Pittsburgh could hypothetically give bettors a 25 percent rebate on losses and still be better off than the legal bookmakers," Asher said during the conference call with select media members, including CNBC, on Monday. "It's not as if the bookies are out today shopping for new careers."
Geoff Freeman, CEO of the American Gaming Association, is confident that the illegal market will be put out of business but says that it's going to take a partnership from the leagues. He said states structuring their legislation don't "need to reinvent the wheel."
"We have a functioning market and I hope [the states] look at what we have in Nevada," Freeman said on a conference call with the media Monday.
Currently, there is no integrity fee or tax written into any legislation anywhere in the U.S.
"No integrity tax currently in any of these states," Asher said. "[There's] never been an integrity tax in Nevada, no requirement to use league source data. That doesn't exist in Nevada."
Asher added that the integrity fee is not something William Hill believes is warranted.
"There is plenty of money to be made by the professional sports leagues without an integrity tax," Asher said. "They are going to be big winners throughout this for sure."
2. Will there be a federal framework? The NFL, like the other North American sports leagues, wants to protect the integrity of the game, but it hopes that Congress hands down a "core regulatory framework" for legalized betting as part of the effort to do so.
"The NFL's long-standing and unwavering commitment to protecting the integrity of our game remains absolute," NFL spokesman Brian McCarthy told CNBC via email.
"Congress has long-recognized the potential harms posed by sports betting to the integrity of sporting contests and the public confidence in these events. Given that history, we intend to call on Congress again, this time to enact a core regulatory framework for legalized sports betting. We also will work closely with our clubs to ensure that any state efforts that move forward in the meantime protect our fans and the integrity of our game."
The NBA also touched upon a federal structure in its statement on the Supreme Court's ruling. "We remain in favor of a federal framework that would provide a uniform approach to sports gambling in states that choose to permit it, but we will remain active in ongoing discussions with state legislatures," NBA Commissioner Silver stated.
Freeman can't envision a national approach to regulating sports betting, calling it "extremely unlikely."
"America long ago decided that gaming would be regulated on a state-by-state basis and I'm not sure how you're going to bring the federal government in here to tell the states what to do given that the states hold such great authority over betting." Freeman said, while adding that states have "proven to be effective regulators."
3. When will you be allowed to bet? New Jersey appears to be weeks away from offering sports bets.
Freeman of the American Gaming Association said he has heard rumors that the state will have wagering available by the start of the NBA Finals, which begin May 31. In the least, he expects many states to be up and running for the upcoming NFL season.
William Hill would like to offer bets in New Jersey in advance of a potential NBA Finals rematch between the Cleveland Cavaliers and Golden State Warriors. The summer is a historically slow sports betting period and having available action on the NBA series would be a lucrative venture. Still, Asher reiterates that the company "wants to be responsible about it." The company hopes to begin operations in other states by the time August rolls around.
"We clearly want to be open in advance of football season," Asher said. "We want to train staff and give them exposure to handling customers." | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/14/3-key-questions-after-supreme-courts-legal-sports-betting-decision.html |
NEW YORK--(BUSINESS WIRE)-- JPMorgan Chase & Co. (NYSE:JPM) (“JPMorgan Chase” or the “Firm”) plans to host conference calls to review financial results on the following dates:
First-quarter 2019 – Friday, April 12, 2019 at 8:30 a.m. (Eastern) Second-quarter 2019 – Tuesday, July 16, 2019 at 8:30 a.m. (Eastern) Third-quarter 2019 – Tuesday, October 15, 2019 at 8:30 a.m. (Eastern) Fourth-quarter 2019 – Tuesday, January 14, 2020 at 8:30 a.m. (Eastern)
The financial results are scheduled to be released at approximately 6:45 a.m. (Eastern) on the dates noted above, and live audio webcasts and presentation slides will be made available on www.jpmorganchase.com under Investor Relations, Events & Presentations. Dial-in information will be provided at a later date.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com .
View source version on businesswire.com : https://www.businesswire.com/news/home/20180531005898/en/
JPMorgan Chase & Co.
Investors:
Jason Scott, 212-270-7325
or
Media:
Joseph Evangelisti, 212-270-7438
Source: JPMorgan Chase & Co. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/31/business-wire-jpmorgan-chase-announces-conference-calls-to-review-first-quarter-second-quarter-third-quarter-and-fourth-quarter-2019.html |
May 20, 2018 / 8:21 AM / Updated 11 hours ago MIDEAST STOCKS-Jabal Omar up in Saudi, Drake and Scull heavily traded in Dubai Reuters Staff 2 Min Read
DUBAI, May 20 (Reuters) - Gulf stock markets were mixed in early Sunday trading in light volumes, with Dubai dragged down by real estate developer Emaar and the Saudi exchange trading up, supported by last week’s gains in oil prices.
Brent crude futures fell 79 cents, or 1 percent, to settle at $78.51 a barrel on Friday, but prices had logged a sixth week of gains and broke through $80 a barrel last week for the first time since November 2014.
In Saudi Arabia, where the index was up 0.5 percent after one hour of trading, most companies in the oil and gas and petrochemical sectors were higher, with Saudi Kayan Petrochemical up 0.6 percent.
Real estate developer Jabal Omar Development was among the best performers, up 6.1 percent, after announcing an agreement with Albilad Capital to sell 90 housing units for 1.1 billion riyals ($293 million).
The Dubai index was down 0.2 percent, with real estate companies such as Emaar Properties lower as continued concerns about the impact of ample supply of new homes weigh on the sector.
Building contractor Drake and Scull International was by far the most traded stock in the market, and was up 1.7 percent in the first hour. The contractor reported last week a net profit attributable to shareholders of 16.2 million dirhams ($4.4 million) for the first quarter, swinging from a net loss of 722.5 million dirhams in the corresponding period last year.
In Abu Dhabi, where trading volumes were very low and the index down 0.3 percent, Eshraq Properties was among the most traded stock and was up 1.4 percent after announcing last week it had swung to profit in the first quarter.
($1 = 3.6728 UAE dirham) | ashraq/financial-news-articles | https://www.reuters.com/article/mideast-stocks/mideast-stocks-jabal-omar-up-in-saudi-drake-and-scull-heavily-traded-in-dubai-idUSL5N1SR03X |
In honor of graduation season, Twitter users are sharing their wisdom using the viral hashtag #GraduationAdviceInFiveWords — and they're reminding me that, in my case, going from college to the real world was like being thrown off of a cruise ship into deep water and told to swim to shore.
For four blissful years at one of the top liberal arts schools in America, I was challenged and encouraged. Inside and out of the classroom, I met bright, curious people who helped me grow as a person. I learned, as the cliche goes, how to think.
But I did not learn how to earn money, choose the right job or, even in any rudimentary way, get by in the real world.
After graduating, I stumbled through two jobs and a bout of unemployment before I finally made real progress in my career. And though none of that is the fault of my college, my failures were not unrelated to my educational experiences.
I had been led to believe the workplace would be something like my campus, where, for the most part, students and teachers alike treated each other with a baseline respect, engaged in thoughtful dialogue and, when they fought, fought fair. It was not.
Instead of requiring that I pass a swimming test, it would have been far more useful if my school, before giving me my diploma, had insisted that I sit down and watch the 1992 David Mamet film about stressed-out salesmen who are forced to sink or swim, " Glengarry Glen Ross ."
Image source: New Line Cinema Alec Baldwin as Blake in Glengarry Glen Ross So that you new grads can learn, in advance, from my experiences, here are three of the main things that I didn't know I didn't know when I started my first job.
1. Your bosses aren't necessarily good at their jobs Probably because I was lucky enough to have intelligent, capable parents and smart, accomplished professors, it never really occurred to me that, when I got to the working world, I would so often answer to people who had no idea what they were doing .
My first boss was naturally timid and compensated by yelling and cursing. A lot. And he was a prince compared to his boss, who, directly before hanging up, once screamed into the phone loud enough for our whole section of the office to hear, "No, Mom, f--- you !"
Since that initial position, I've had a rogue's gallery of unstable or inept managers , including one who, in a matter of a few short months, ran a buzzy, promising start-up into the ground. Though I've also worked for inspiring and impressive managers — indeed, thank goodness, I am working for one right now — I've learned never to take competence for granted.
2. HR doesn't work for you — it works for the company One common misconception among entry-level employees is that Human Resources will be on their side. While HR departments can certainly be helpful, they don't exist to serve you; their primary purpose is to protect the company. That's why workers who approach HR to complain often find the results frustrating , a 20-year HR veteran explains in an article for Vox.
As that vet puts it, "How do you help organizations attract and retain great talent while also doing your job and protecting the company from lawsuits when something goes horribly wrong? The answer is that you can't."
Understand at the outset what HR can and cannot do for you, Lifehacker suggests, noting that "you shouldn't expect HR to keep anything confidential even if you ask."
Some HR departments are better skilled than others at advocating for employees. In one of my first jobs, HR didn't take me seriously until I had documented a year's worth of infractions. So take a tip from Uber whistle-blower Susan J. Fowler and former FBI director James Comey : Write everything down.
show chapters Why this billionaire used to crash meetings with Google’s co-founders 10:19 AM ET Thu, 30 March 2017 | 00:58 3. Make yourself indispensable If you want to stand out at your workplace, if you want to get noticed and get ahead, you have to be assertive. Don't assume it's enough to simply accomplish your assigned tasks. Even if you've done a good job, you can't wait to, or assume you will, be recognized. A good job is the bare minimum. A good job is what you're paid to do. If you want more, you have to show that you deserve it.
Hustle. Follow up on phone calls. Crash meetings . Pay attention to what your boss does, what she needs, what parts of the job frustrate her, and then use all of that data to figure out how else you could be useful. Is there something you could take off her plate?
Show that you're reliable. That can mean getting in early and staying late, or being visible on Slack, or volunteering to work when others don't want to, like on certain holidays. Then, once you've established yourself as trustworthy and important to the team, you can ask for more responsibilities — as well as for more flexibility, a larger salary, or whatever else would make your life as an employee better.
Once you've first proven your value, you're more likely to get what you need.
This is an update of a previously published story .
Don't miss: 3 skills 20-somethings should have to successfully launch their careers
show chapters Why most people should skip college 1:49 PM ET Wed, 15 Feb 2017 | 01:02 | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/17/3-things-no-one-tells-you-about-your-first-job-after-college.html |
FRANKFURT, May 3 (Reuters) - The following are some of the factors that may move German stocks on Thursday:
AUTO German monthly car sales data expected.
ADIDAS Q1 results due. Operating profit seen up 12 percent at 709 million euros ($850 million). Poll:
BAYER Q1 results due. Underlying EBITDA seen down 7 percent at 2.83 billion euros. Poll:
DEUTSCHE BOERSE Deutsche Boerse AG plans to cut around 300 jobs as new CEO Theodor Weimer seeks to lower operating costs by 100 million euros through to 2020, Handelsblatt reported on Wednesday.
DEUTSCHE TELEKOM A second round of wage talks covering 11,000 workers at T-Systems, Deutsche Telekom’s IT services arm, ended without result on Wednesday, labour union Verdi said. The next round of talks is set for May 15. Verdi is demanding a 5.5 percent raise over 12 months.
FRESENIUS Q1 results due. Adjusted net income seen down 4.4 percent at 437 million euros. Poll:
Fresenius alleged it uncovered “blatant fraud at the very top level” of U.S. generic drugmaker Akorn Inc after Fresenius agreed to acquire the company for $4.75 billion, according to a Delaware court filing.
FRESENIUS MEDICAL CARE Full Q1 results due. The group published preliminary results on April 22 and cut its 2018 sales target.
INFINEON Q2 results due. Operating profit seen up 1 percent at 298 million euros. Poll:
VONOVIA Q1 results due. FFO I seen up 10 percent at 241 million euros. Poll:
ALSTRIA OFFICE REIT Alstria Office REIT confirmed its guidance for 2018 after consolidated net result rose by 4.7 percent in the first quarter.
INNOGY Deadline for SSE and Innogy’s npower to submit measures to ease the competition concerns of Britain’s Competition and Markets Authority (CMA) over their proposed merger.
MTU AERO ENGINES Q1 results due. Adjusted EBIT seen down 3 percent at 153 million euros. Poll:
STADA Q1 results due.
COMPUGROUP MEDICAL Q1 results due.
MORPHOSYS The group reported Q1 results and affirmed its 2018 guidance.
OSRAM Full Q2 results due. The group published preliminary results on April 24 and slashed its guidance for adjusted core profit and earnings per share.
PFEIFFER VACUUM Q1 results due.
QIAGEN The group reported Q1 results and said it expected sales growth of roughly 5-6 pct in Q2.
XING Q1 results due.
HYPOPORT Full Q1 results due. The group published key figures on April 25.
KOENIG & BAUER Q1 results due. Operating profit seen down 82 percent at 0.88 million euros. Poll:
RATIONAL Q1 results due.
SIEMENS HEALTHINEERS Q2 results due.
ANNUAL GENERAL MEETINGS LINDE - 3.90 eur/shr dividend proposed
VOLKSWAGEN - 3.96 eur/preferred shr dividend proposed
HOCHTIEF - 3.38 eur/shr dividend proposed
HUGO BOSS - 2.65 eur/shr dividend proposed
LEONI - 1.40 eur/shr dividend proposed
DIALOG SEMICONDUCTOR - no dividend proposed
GRENKE - 0.70 eur/shr dividend proposed
OVERSEAS STOCK MARKETS Dow Jones -0.7 pct, S&P 500 -0.7 pct, Nasdaq -0.4 pct at close.
Japanese markets closed, Shanghai stocks -0.2 pct.
Time: 4.47 GMT.
GERMAN ECONOMIC DATA No economic data scheduled.
DIARIES REUTERS TOP NEWS ($1 = 0.8344 euros) (Reporting by Douglas Busvine and Maria Sheahan)
Our | ashraq/financial-news-articles | https://www.reuters.com/article/germany-stocks-factors/german-stocks-factors-to-watch-on-may-3-idUSL8N1S94OO |
Jim Chanos to Reuters: Musk did not want investors to focus on rapidly deteriorating finances 57 Mins Ago The “Fast Money Halftime Report” traders discuss comments from James Chanos, Kynikos Associates president and founder and Tesla short-seller. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/03/jim-chanos-to-reuters-musk-did-not-want-investors-to-focus-on-rapidly-deteriorating-finances.html |
* Canadian dollar at C$1.2880, or 77.64 U.S. cents
* The price of oil falls 1.4 percent
* Bond prices higher across the yield curve
TORONTO, May 24 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Thursday as oil prices fell and investors weighed the potential imposition of U.S. tariffs on car imports. The Trump administration has launched a national security investigation into car and truck imports that could lead to new U.S. tariffs, similar to those imposed on imported steel and aluminum in March. The investigation comes as the United States renegotiates the North American Free Trade Agreement with Canada and Mexico to return more auto production to the United States. Canada is a major exporter of autos to the United States so its economy could be hurt by U.S. auto tariffs or failure to reach a deal on NAFTA. Oil is also one of Canada's major exports. Its price fell by the most in two weeks as expectations rose that OPEC will end an output deal that has been in place since the start of 2017.
U.S. crude prices were down 1.4 percent at $70.84 a
barrel. At 9:08 a.m. EDT (1308 GMT), the Canadian dollar was trading 0.3 percent lower at C$1.2880 to the greenback, or 77.64 U.S. cents. The currency traded in a range of C$1.2829 to C$1.2898. On Wednesday, it touched its weakest in more than one week at C$1.2916. The Bank of Canada will probably hold interest rates steady on May 30 as uncertain trade policy and indebted consumers necessitate caution, but firmer price and wage inflation will prompt two increases in the second half of 2018, a Reuters poll predicted. Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 2 Canadian cents to yield 2.016 percent and the 10-year gained 7 Canadian cents to yield 2.436 percent.
(Reporting by Fergal Smith Editing by Nick Zieminski) | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/24/reuters-america-canada-fx-debt-c-slips-as-oil-prices-fall-u-s-mulls-auto-tariffs.html |
May 15, 2018 / 11:01 AM / Updated 28 minutes ago Europe not using good economic growth to reform, IMF says Jan Strupczewski 4 Min Read
BRUSSELS, May 15 (Reuters) - European economic growth is strong, mainly thanks to domestic demand, but governments are not taking sufficient advantage of the good times to reduce their debt and implement reforms, the International Monetary Fund said in a forecast on Tuesday.
The IMF forecast that growth in advanced European economies, mainly the euro zone, would slow to 2.3 percent this year from 2.4 percent in 2017 and then decelerate to 2.0 percent in 2019. The European Commission forecasts the same growth slow-down.
“Amid the good times, however, fiscal adjustment and structural reform efforts are flagging,” the IMF said.
“With economic prospects continuing to improve in the short term but medium-term prospects less bright, policymakers should seize the moment to rebuild room for fiscal manoeuvre and push forward with reforms to boost growth potential,” the IMF said.
Despite the strong growth, some of the biggest euro zone economies like France, Italy or Spain have been slow to further reduce their budget deficits towards a balanced position while others, like Belgium, are increasing the shortfall.
“In many economies, policymakers should strive to bring fiscal deficits within range of balance over the next few years,” the IMF said.
“This way, automatic stabilizers and fiscal stimulus can be deployed again, should downside risks materialize. Also, stabilizing and bringing down public debt would help economies better cope with the pressures from growing expenditures on pensions and health care,” it said.
The IMF also noted that the strong economic growth provided an opportunity for faster deepening of euro zone economic integration, primarily through the completion of the banking union, which already features a single supervisor for euro zone banks and a single resolution authority but still lacks a joint deposit guarantee scheme.
With Britain, a major financial centre, due to leave the European Union in March 2019, the EU should speed up the construction of a capital markets union to widen financing choices of small and medium-size firms, harmonise insolvency laws and protect cross-border investor rights, the IMF said.
The IMF also threw its weight behind the idea of creating a pool of money for the 19 countries that share the euro to help their economies against crises not of their own making.
The IMF called it the “central fiscal capacity (CFC)” and said it should work on the basis of loans, not permanent transfers.
“The CFC could employ something known as a ‘usage premium’, through which a country pays a premium in good times based on transfers it got in bad times,” the IMF said.
“Second, the CFC could place a cap on the amount countries must contribute to prevent some countries from becoming large net contributors. Finally, it could limit how much a country can receive, so that transfers do not substitute for necessary policy adjustment,” it said.
Euro zone countries are also considering ideas for such a loan-based budget. The European Commission proposed earlier this month it should be part of the overall long-term budget of the EU and total 55 billion euros. (Reporting by Jan Strupczewski Editing by Hugh Lawson) | ashraq/financial-news-articles | https://www.reuters.com/article/eurozone-imf-outlook/europe-not-using-good-economic-growth-to-reform-imf-says-idUSL5N1SL5O4 |
May 4, 2018 / 8:57 PM / in 10 hours Iowa governor signs 'fetal heartbeat' abortion ban into law Reuters Staff 3 Min Read
(Reuters) - Iowa Governor Kim Reynolds signed into law on Friday a bill outlawing abortion after a fetal heartbeat is detected, which often occurs at six weeks and before a woman even realizes she is pregnant, and Reynolds acknowledged the likelihood of a court challenge. The annual March for Life concludes at the U.S. Supreme Court where it is met by pro-choice counter-protesters in Washington January 27, 2017. REUTERS/James Lawler Duggan
The measure, which Iowa’s Republican-controlled state legislature passed on Wednesday, is the most restrictive abortion ban in the United States.
“I understand and I anticipate that this will likely be challenged in court, and that courts may even put a hold on the law until it reaches the Supreme Court,” Reynolds, also a Republican, said at Friday’s bill-signing, surrounded by children.
“However, this is bigger than just a law,” she added. “This is about life. I’m not going to back down from who I am or what I believe in.”
Chants from protesters were audible in the room where Reynolds signed the bill, in a ceremony that was broadcast live.
State senators who backed the measure said earlier this week that they were aiming to challenge the U.S. Supreme Court’s landmark Roe v. Wade decision that established that women have a constitutional right to an abortion.
Abortion opponents hoping to land the issue back in front of the nation’s top court believe the 5-4 conservative majority could sharply curtail abortion access or ban it outright.
At a rally in Des Moines outside the Capitol on Friday before Reynolds signed the bill, officials of Planned Parenthood, the women’s healthcare group and backer of abortion rights, said they would file a lawsuit to block the law.
“I am here to tell Governor Reynolds, We will see you in court,” Suzanna de Baca, president of Planned Parenthood of the Heartland, told demonstrators. “We will challenge this law with absolutely everything we have on behalf of our patients, on behalf of your rights, because Iowa will not go back.”
Iowa is just the latest battleground in the fight over access to abortions.
Mississippi’s Republican governor in March signed into law a bill banning abortion after 15 weeks with some exceptions, sparking an immediate court challenge by abortion rights advocates.
A similar court challenge is under way in Kentucky, which in April enacted a ban on a common abortion procedure from the 11th week of pregnancy.
The Iowa law requires any woman seeking an abortion to undergo an abdominal ultrasound to screen for a fetal heartbeat. If one is detected, healthcare providers are barred from performing an abortion.
Among the few exceptions are if the woman was raped or a victim of incest and has reported that to authorities.
The bill would ban most abortions in the state and was passed in the final days of the Iowa legislative session.
(Restriction on later abortion by U.S. state tmsnrt.rs/28YEvwZ ) Reporting by Bernie Woodall; Editing by Leslie Adler | ashraq/financial-news-articles | https://www.reuters.com/article/us-iowa-abortion/iowa-governor-signs-fetal-heartbeat-abortion-ban-into-law-idUSKBN1I52ID |
The Walt Disney Company is scheduled to report fiscal second-quarter earnings after the market close Tuesday.
Here's what Wall Street expects:
Earnings: $1.70 per share, forecast by Thomson Reuters Revenue: $14.11 billion, forecast by Thomson Reuters Disney's earnings report comes after its blockbuster deal to acquire many parts of Twenty-First Century Fox . The boards of both companies asked longtime CEO Bob Iger to stay on through the end of 2021.
If completed, Disney would get Fox's television and film studios, regional sports networks, cable channels National Geographic and FX. The entertainment giant would also grow its international presence through Asian pay-TV operator Star India and a stake in Sky TV. It would also get Fox's stake in Hulu. That plus its existing position would give Disney a controlling stake in the streaming service.
On Monday, CNBC reported that Comcast plans to make an all-cash bid for Fox if the Justice Department approves AT&T's acquisition of Time Warner . Comcast's offer would top Disney's and include a full acquisition of Sky, sources said.
CNBC previously reported that fear of being outspent on content content was one of the main reasons Rupert Murdoch decided to sell those Fox assets. Tech giants like Netflix and Amazon have poured money into their streaming services, making the content bidding wars increasingly competitive.
Disney's proposed acquisition of Fox assets would broaden the company's content portfolio, making it more competitive.
Fox is slated to report earnings after the market close on Wednesday.
Shares of Disney have fallen about 6 percent so far this year.
This is breaking news. Please check back for updates.
Programming note: Disney Chairman and CEO Bob Iger is scheduled to appear on CNBC's "Closing Bell."
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com. Comcast is a also a co-owner of Hulu. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/08/disney-earnings-q2-2018.html |
SHANGHAI, May 19 (Reuters) - China’s economy will likely expand around 6.7 percent in the second quarter this year, the State Information Center (SIC) said in an article published in the state-owned China Securities Journal on Saturday.
The forecast growth rate was slightly slower than an actual 6.8 percent expansion in the first quarter.
The SIC is an official think tank affiliated with the National Development and Reform Commission, the country’s top economic planning agency.
It forecast consumer inflation in the world’s second largest economy of around 2 percent and expected an increase of about 3.8 percent in producer price inflation in the second quarter from the same period a year earlier.
On the market-focused trade data, the official think tank expects dollar-denominated exports to grow around 8 percent in the second quarter versus a year earlier and imports to rise about 10 percent.
The SIC suggested the government “maintain flexibility in macro economic policy and actively deal with trade frictions between the United States and China ... to ensure a steady and healthy development of the country’s broader economy,” it was Quote: d as saying in the paper.
In the same article, the SIC also said it expects China’s industrial output to grow about 6.6 percent in the April to June period from a year earlier, fixed-asset investment growth to expand around 7.2 percent and retail sales to rise about 10 percent.
The Chinese government has set a GDP growth target of around 6.5 percent this year, down from the actual 6.9 percent in 2017.
China’s statistics bureau said this week that steady economic growth in April lays a good foundation for achieving the full-year growth target. (Reporting by Winni Zhou and David Stanway; Editing by Muralikumar Anantharaman)
| ashraq/financial-news-articles | https://www.reuters.com/article/china-economy-gdp/chinas-q2-gdp-growth-seen-at-around-6-7-pct-official-think-tank-idUSL3N1SQ01O |
The Late Morning Rundown: May 31, 2018 50 Mins Ago | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/31/the-late-morning-rundown-may-31-2018.html |
OMAHA, Neb. (Reuters) - Warren Buffett lost money but had a pretty good quarter.
Warren Buffett, CEO of Berkshire Hathaway Inc, talks to a reporter in the exhibit hall at the company's annual meeting in Omaha, Nebraska, U.S., May 5, 2018. REUTERS/Rick Wilking Berkshire Hathaway Inc ( BRKa.N ) on Saturday reported an unusual quarterly net loss, the result of an accounting change that Buffett had warned would produce “wild” but in his view meaningless swings in results.
But Berkshire also ended a long stretch of disappointing operating performance, posting record operating profit as insurance rebounded from a difficult quarter while economic growth bolstered results in railroad, industrial and consumer businesses.
Berkshire posted a first-quarter net loss of $1.14 billion, or $692 per Class A share, compared with net income of $4.06 billion, or $2,469 per share, a year earlier.
The accounting change required Berkshire to report $6.2 billion of unrealized losses in its marketable stock portfolio, which totaled $170.5 billion at year end, regardless of whether it planned to sell those stocks.
Related Coverage Highlights: 'Oracle of Omaha' Buffett comments on China, healthcare, deals Two of Berkshire’s biggest stock investments, Wells Fargo & Co ( WFC.N ) and Coca-Cola Co ( KO.N ), had tough first quarters, falling 13.6 percent and 5.3 percent, respectively.
Buffett has called the new accounting rule a “nightmare” that would produce “truly wild and capricious swings” in bottom-line results that could, depending on their direction, unnecessarily scare or embolden investors.
“It really is not representative of what’s going on in the business at all,” Buffett told shareholders at Berkshire’s annual meeting in Omaha, Nebraska.
Slideshow (4 Images) Berkshire said its operating profit, which Buffett considers a better performance measure, rose 49 percent to $5.29 billion, or about $3,215 per Class A share, from $3.56 billion, or $2,163 per share, a year earlier.
Analysts, on average, expected operating profit of about $3,116 per Class A share, according to Thomson Reuters I/B/E/S. Operating profit had previously fallen for five straight quarters, and missed Wall Street forecasts for eight straight.
Book value, which measures assets minus liabilities, also took a hit from falling stock prices, falling 0.3 percent to $211,184 per Class A share, even though Buffett boosted his stake in Apple Inc ( AAPL.O ) by $12.5 billion in the quarter.
Some analysts have said the stock losses have weighed on Berkshire shares, which are 10 percent below their record highs set on Jan. 29. In Friday trading, the Class A shares closed at$292,600, and the Class B shares at $195.64.
Buffett, 87, and Vice Chairman Vice Chairman Charlie Munger, 94, are answering five hours of questions from shareholders, journalists and analysts at the annual meeting.
PLENTY OF CASH Despite the Apple purchase, Berkshire ended the quarter with $108.6 billion of cash and equivalents, giving Buffett ammunition to make one or more “huge” non-insurance acquisitions he has said he wants.
Berkshire’s insurance businesses, which had been struggled with losses from hurricanes and other events, posted a $407 million underwriting profit, compared with a year earlier $267 million loss.
Buffett said the Geico car insurer had “quite a good-sized turnaround in profitability.” Pre-tax underwriting gains nearly quadrupled, as it sold more policies despite having raised rates, while the rate of policyholder losses fell.
“The trends look pretty good,” Tony Nicely, Geico’s chief executive, told Reuters on Friday. “The number of claims are down somewhat. Yet the costs keep going up.”
An improving economy led to higher business volume at the BNSF railroad, which saw profit rise 37 percent to $1.15 billion.
Pretax profit at industrial businesses such as Precision Castparts rose 32 percent, while lower taxes helped boost profit at the Berkshire Hathaway Energy unit by 22 percent.
Editing by Jennifer Ablan and Nick Zieminski
| ashraq/financial-news-articles | https://www.reuters.com/article/us-berkshire-results/berkshire-operating-results-improve-accounting-change-causes-net-loss-idUSKBN1I60FE |
May 8, 2018 / 3:01 PM / Updated an hour ago Swiss Islamic leader, facing propaganda charges, refused gun permit John Miller 4 Min Read
ZURICH (Reuters) - A man charged last year with promoting al Qaeda propaganda has been refused a firearms permit, in a ruling by Switzerland’s highest court which he said was driven by anti-Muslim discrimination.
Nicolas Blancho, chairman of the Islamic Central Council of Switzerland (ICCS), sought permission in 2014 to own a SIG Sauer P226 pistol. His bid was rejected, first by police and military officials and later by a Bern court, documents show.
In Blancho’s appeal, he contended the lower court had failed to appropriately weigh his private interests in obtaining a firearms license to protect himself and his family against the public’s interest in denying him access to a legal weapon.
In their rejection, a three-judge panel of the Swiss Federal Tribunal concluded his appeal failed to address the legal basis of the lower court’s decision and instead resorted to general criticisms that it could not consider.
They also underscored the lower court’s conclusion that Blancho failed to offer assurances he could responsibly own a weapon.
Documents show the lower court considered Blancho’s “radical beliefs,” such as encouraging others to oppose “interventionist Western forces” and what it said was his refusal to completely accept Swiss laws.
“There were concrete indications the complainant himself could jeopardize third parties,” the lower court concluded.
“Nor does the complainant have any guarantee that he would not illegally hand over a weapon acquired by him to other persons who might, in turn, endanger third parties.”
Switzerland has liberal gun ownership laws, but individuals generally must apply for a permit.
The ICCS describes itself as Switzerland’s largest Islamic organization and says it focuses on representing the local population.
Blancho was among three ICCS officials charged last September with offences under the Federal Act on the Proscription of Al-Qaeda, Islamic State and Associated Organizations over films made by members of the group in Syria and posted online.
The 2015 videos included interviews with leaders of a jihadist umbrella group and of Jabhat al-Nusra, which is affiliated with al Qaeda.
Prosecutors say the films were propaganda in which the filmmakers failed to explicitly distance themselves from al Qaeda activities in Syria. The ICCS contends the video was intended to shed light on a troubled region, not glorify extremists.
The ICCS has called the indictments “clearly politically motivated”. The trial is to open next week.
Blancho’s organization called the Federal Tribunal’s decision on Tuesday “scandalous” and said the case was one of several in which Muslims in Switzerland had been denied weapons permits.
In a written statement to Reuters, Blancho called the ruling “humiliating”.
“For a Swiss citizen to be prevented from owning a weapon because of my Islamic beliefs violates principles of equal treatment,” he said.
“It also shows that as a Muslim, I am considered a special case in which people just assume I represent a physical threat. That offends me and is unfair.” Reporting by John Miller; editing by Andrew Roche | ashraq/financial-news-articles | https://www.reuters.com/article/us-mideast-crisis-swiss-handgun/swiss-islamic-leader-facing-propaganda-charges-refused-gun-permit-idUSKBN1I922U |
May 14, 2018 / 10:40 AM / Updated 27 minutes ago Facebook suspends 200 apps over data misuse investigation Reuters Staff 2 Min Read
(Reuters) - Facebook Inc has so far suspended around 200 apps in the first stage of its review into apps that had access to large quantities of user data, in a response to a scandal around political consultancy Cambridge Analytica.
The apps were suspended pending a thorough investigation into whether they misused any data, said Ime Archibong, Facebook’s vice president of product partnerships.
Facebook said it has looked into thousands of apps till date as part of an investigation that Chief Executive Officer Mark Zuckerberg announced on March 21.
Zuckerberg had said the social network will investigate all apps that had access to large amounts of information before the company curtailed data access in 2014.
“There is a lot more work to be done to find all the apps that may have misused people’s Facebook data – and it will take time,” Archibong said.
“We have large teams of internal and external experts working hard to investigate these apps as quickly as possible.”
Facebook was hit by the privacy scandal in mid-March after media reports that Cambridge Analytica improperly accessed data to build profiles on American voters and influence the 2016 presidential election.
The incident led to backlash from celebrities and resulted in the company losing billions in market value. Zuckerberg apologized for the mistakes his company made and testified before the U.S. lawmakers.
The company, however, regained much of its lost market value after it reported a surprisingly strong 63 percent rise in profit and an increase in users when it announced quarterly results on April 25.
Shares of the company were up 0.4 percent at $187.65 in premarket trading on Monday.
(This version of the story corrects share price in last paragraph.) FILE PHOTO: Silhouettes of mobile users are seen next to a screen projection of Facebook logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration/File Photo Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur | ashraq/financial-news-articles | https://www.reuters.com/article/us-facebook-privacy/facebook-suspends-200-apps-over-data-misuse-investigation-idUSKCN1IF18H |
May 1 (Reuters) - Unisys Corp:
* UNISYS ANNOUNCES FIRST-QUARTER 2018 FINANCIAL RESULTS; OPERATING MARGIN EXPANDS YEAR-OVER-YEAR; COMPANY REAFFIRMS FULL-YEAR FINANCIAL GUIDANCE
* Q1 EARNINGS PER SHARE $0.62 * Q1 EARNINGS PER SHARE VIEW $0.21 — THOMSON REUTERS I/B/E/S
* Q1 NON-GAAP EARNINGS PER SHARE $0.19
* Q1 REVENUE $708.4 MILLION VERSUS I/B/E/S VIEW $654.4 MILLION
* SERVICES BACKLOG AT QUARTER-END WAS UP 26 PERCENT YEAR-OVER-YEAR AND 10 PERCENT SEQUENTIALLY, TO $4.7 BILLION Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-unisys-reports-q1-eps-062/brief-unisys-reports-q1-eps-0-62-idUSASC09YSX |
Just a few years ago, the New York City government was getting 20,000 tips annually about landlords illegally converting building spaces into apartments—far too many to investigate. So the housing department turned to an unlikely source to help zero in on probable violations: artificial intelligence. After churning through millions of data points, a computer program suggested that inspectors look for two signs: spikes in utility bills and sanitation problems. Sure enough, inspectors who heeded these clues started catching five times more violators than before.
Anecdotes... | ashraq/financial-news-articles | https://www.wsj.com/articles/aiq-review-getting-smarter-all-the-time-1527717048 |
May 28, 2018 / 10:19 PM / Updated 5 hours ago Australia shares to edge lower; NZ down Reuters Staff 1 Min Read May 29 (Reuters) - Australian shares were poised to slide marginally on Tuesday, as energy stocks appeared likely to take a beating from sinking oil prices, while investors may take comfort from a slight recovery in iron-ore futures. The local share price index futures fell 0.2 percent, a 14-point discount to the underlying S&P/ASX 200 index close. The benchmark shed half a percent on Monday. New Zealand's benchmark S&P/NZX 50 index edged 0.2 percent lower to 8,630.44 in early trade. (Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Peter Cooney) | ashraq/financial-news-articles | https://www.reuters.com/article/australia-stocks-morning/australia-shares-to-edge-lower-nz-down-idUSL3N1SZ4NG |
May 22, 2018 / 9:14 AM / Updated 35 minutes ago UPDATE 1-State Bank of India posts record quarterly loss after central bank rule change Reuters Staff
* SBI reports loss of $1.13 bln, far beyond analyst estimates
* Gross bad loan ratio rises to 10.91 pct from 10.35 pct in Q3
* Shares jump as much as 6.2 pct (Adds further earnings details, share movement, context)
May 22 (Reuters) - State Bank of India (SBI) reported its deepest-ever quarterly loss on Tuesday, far beyond analyst estimates, as the country’s biggest lender set aside more provisions for bad loans after a change in banking regulation.
Net loss for the three months ended March 31 was 77.18 billion rupees ($1.13 billion), versus an average 12.85 billion rupee loss from 16 analyst estimates complied by Thomson Reuters. The result also compared with a restated net loss of 34.42 billion rupees in the same period a year earlier.
Banks saw soured loans and provisions surge in the quarter after the central bank in February eliminated half a dozen loan restructuring schemes to hasten the clean-up of near-record levels of bad debt. Most state-run banks that have reported quarterly earnings so far have posted losses.
SBI’s bad-loan provisions for the quarter more than doubled from a year earlier to 280.96 billion rupees. Gross bad loans as a percentage of total loans rose to 10.91 percent from 10.35 percent three months earlier and 6.90 percent a year prior, the lender said in a statement.
Net interest income for the quarter fell 5.2 percent to 199.74 billion rupees.
Shares of the lender rose as much as 6.2 percent after the results in a broader Mumbai market that was 0.1 percent higher. $1 = 68.0350 Indian rupees Reporting by Vishal Sridhar in BENGALURU Editing by Christopher Cushing | ashraq/financial-news-articles | https://www.reuters.com/article/state-bank-india-results/update-1-state-bank-of-india-posts-record-quarterly-loss-after-central-bank-rule-change-idUSL3N1ST319 |
Spike Lee's "BlacKkKlansman" premieres in Cannes Monday, May 14, 2018 - 01:11
Spike Lee returns to Cannes almost 30 years after ''Do the Right Thing'' was tipped for, but failed to get, the Palme d'Or. Rough Cut (no reporter narration)
Spike Lee returns to Cannes almost 30 years after "Do the Right Thing" was tipped for, but failed to get, the Palme d'Or. Rough Cut (no reporter narration) //reut.rs/2KZDF28 | ashraq/financial-news-articles | https://www.reuters.com/video/2018/05/14/spike-lees-blackkklansman-premieres-in-c?videoId=426947581 |
May 24, 2018 / 2:58 PM / Updated 8 minutes ago The pressure is on for Japan's new boss Nishino Jack Tarrant 3 Min Read
TOKYO (Reuters) - Japan’s relatively routine build-up to the World Cup was shaken dramatically by the surprise decision to fire head coach Vahid Halilhodzic two months before the finals in Russia. Japan's national soccer team's new head coach Akira Nishino attends a news conference in Tokyo, Japan April 12, 2018. REUTERS/Toru Hanai
After leading Japan to their sixth consecutive World Cup, the Bosnian was dismissed and replaced with former Japan Football Association (JFA) technical director Akira Nishino.
The pressure is now on Nishino, seen very much as the company man within the JFA, to rebuild the fractious relationship between the players and coaching staff and justify the decision taken by his superiors to change things so close to the finals.
Part of the reason behind Halilhodzic’s removal was a run of poor performances in the friendlies since the team qualified for Russia in August.
The JFA and Nishino have both spoken of the communication gap between the Bosnian and many of his players being the reason for this poor form and the new head coach’s priority will be getting senior players back on side.
Nishino has just three friendly matches to prepare his side for arguably the World Cup’s most even group. They host Ghana on May 30, visit Switzerland on June 8 and play Paraguay in Austria four days later.
Although Japan will be pleased to have avoided the more dangerous top seeds, their Group H rivals Poland, Senegal and Colombia all possess the quality to hurt the Blue Samurai. Related Coverage Soccer: Japan World Cup factbox
The 63-year-old Nishino can rely on a wealth of experience in a defense that conceded only seven goals in their 10 qualifying matches.
Hiroki Sakai of Marseille, Gotoku Sakai of Hamburg, Southampton’s Maya Yoshida and international cap centurion Yuto Nagamoto of Galatasaray all bring top-flight European experience to a backline that will be hard to break down.
However, as Japan will face some of the world’s best attacking players in their group –- namely Poland’s Robert Lewandowski, Senegal’s Sadio Mane and Colombia’s James Rodriguez –- it seems inevitable that the Blue Samurai will need to score goals of their own to progress to the second round for the third time in their history.
The two Shinjis –- Kagawa of Borussia Dortmund and Okazaki of Leicester City –- will prove pivotal if Nishino’s vision of attacking football is to be realized.
Okazaki, who is Japan’s third highest goalscorer in history, has scored only seven goals this season for Leicester as he has struggled to hold down a starting role.
However, under Nishino the onus will likely be on him, supported by Kagawa and stalwart Keisuke Honda, to unlock opposing defenses. Editing by Clare Fallon | ashraq/financial-news-articles | https://www.reuters.com/article/us-soccer-worldcup-jpn-prospects/the-pressure-is-on-for-japans-new-boss-nishino-idUSKCN1IP2LL |
NEWPORT BEACH, Calif., May 25, 2018 (GLOBE NEWSWIRE) -- DPW Holdings, Inc. (NYSE: DPW) (" DPW " or the " Company "), a diversified holding company, will acquire a minority interest in a partnership that intends to construct a five-star ultra-luxury Manhattan hotel development, investing alongside venerable New York real estate development companies, Mactaggart Family & Partners LP (“Sponsor”), and Caspi Development.
To maximize long-term predictable cash flow for DPW, the investment will be made in a project with consistently strong luxury hospitality fundamentals, unique location advantages, and on terms pari-passu with top-tier New York City real estate investors.
DPW expects the property to form a long-term anchor of its hospitality assets. The Sponsor has signed a long-term contract with a 106-year, premier European hospitality group, which will share its flagship hotel’s name, sophistication and exclusive service with the 96 room Tribeca hotel. They are among the largest operators of 5-star luxury hotels and casinos in Europe.
The Sponsor expects to reveal the group as part of a branding effort that will commence in the fall of 2018.
The Sponsor has engaged AECOM Tishman Construction Corp. (“Tishman”) for the hotel’s construction which broke ground in December 2017 and is expected to be completed during the summer of 2020, with the opening anticipated to be immediately thereafter.
Based on a projected average daily rate (“ADR”) of $983 upon stabilization in 2021 (as compared to the competitive set’s May 2016 ADR of $1,060), the project is expected to produce a stable, unlevered yield on cost of 10%. A refinancing, three years after opening, is projected to return 50% of the invested equity and should generate cash-on-cash returns of 18% thereafter.
The 94,000 square foot hotel, located one block east of the Hudson River, in the heart of the TriBeCa North Historic District, will feature 96 opulently appointed rooms and suites, a lavish full-service spa and six first-class food and beverage venues, all exclusively designed by renowned designers Martin Brudnizki Design Studio and Stephen B. Jacobs Group.
A record-number Michelin star restaurateur is also contracted to oversee dining in the Hotel, including the New York manifestation of an iconic European institution in operation since the 1800’s.
London-based Mactaggart Family & Partners, LP has been operating in New York City since 1985. Its experience spans over 35 years of high-end office and residential development including 589 Fifth Avenue, 590 Fifth Avenue, 183 Madison Avenue, and 576 Fifth Avenue.
Family-run Caspi Development represents decades of real estate pedigree, which along with a comprehensive hands-on approach, has led to an unparalleled reputation for perfection in design, construction and project completion. With a track record of both metropolitan and suburban achievements, Caspi thrives in the competitive Westchester and New York City landscapes. Bringing three generations of experience to the table, Caspi taps into its knowledgeable site selection and financial entrepreneurship to succeed in a variety of markets.
“This is a unique opportunity to establish a firm foundation of predictable cash-flow at terms obtained by the leading real estate investors in New York City,” commented Milton “Todd” Ault III, DPW’s CEO and Chairman. “The asset itself is completely unique and will capitalize on the exploding business and residential growth of Lower Manhattan and this exclusive neighborhood.” For more information regarding the hotel project, please use this link where a live video feed is also featured streaming during the day, https://DPWHoldings.com/456luxhotelnyc/ .
ABOUT DPW HOLDINGS, INC.
Headquartered in Newport Beach, CA, DPW Holdings, Inc., www.DPWHoldings.com , is a diversified holding company with a growth strategy of acquiring undervalued assets, disruptive technologies, sustainable solutions, and exciting ventures for incubation and development to their full potential for long-term growth and investor returns. DPW, through its wholly owned subsidiary, Coolisys Technologies, Inc., is dedicated to providing world-class technology-based solutions for critical applications and lifesaving services, where innovation is the main driver. Coolisys serves the defense, aerospace, naval, homeland security, medical, telecom, datacom, and industrial markets. Its growth strategy targets core markets that are characterized by “high barriers to entry” and that require specialized products and services not likely to be commoditized. Through its portfolio companies, Coolisys develops and manufactures cutting-edge switching power products and power solutions utilizing its customized digital power management and resonant topology to achieve the highest efficiency and highest density power converters and inverters; specialized complex airborne high-frequency, radio frequency (RF), and microwave detector-log video amplifiers (DVLA), very high-frequency filters, and naval power conversion and distribution equipment. Coolisys provides its technology and services through its three primary groups: the Power Solutions Group (PSG); the Defense and Aerospace Solutions Group (DSG); and the Advanced Service Industries (ASI) Group. Coolisys manages six entities, including Digital Power Corporation, www.DigiPwr.com , a leading provider of electronics technology based in Northern California; Digital Power Limited dba Gresham Power Ltd., www.GreshamPower.com , a designer and manufacturer of power distribution systems primarily for Naval use based in Salisbury, UK.; Microphase Corporation, www.MicroPhase.com , a designer and manufacturer of microwave electronics technology based in Shelton, CT; and Power-Plus Technical Distributors, www.Power-Plus.com , a value-added distributor based in Sonora, CA; and Enertec Systems, www.Enertec.co.il , a developer and manufacturer of specialized advanced electronic systems for the defense and aerospace sectors based in Karmiel, Israel.
Digital Power Lending, LLC, www.DigitalPowerLending.com , a wholly owned subsidiary of the Company, is based in Fremont, CA, and is a California private lending company operating under Financial Lender’s License ##60DBO-77905 dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest. Super Crypto Mining, Inc. www.SuperCryptoMining.com is a wholly-owned subsidiary of the Company, is based in Fremont CA that leverages its engineering expertise and existing locations to create crypto currency mining facilities across the globe. Super Crypto Mining, Inc. operates the branded division, Super Crypto Power, www.SuperCryptoPower.com . Excelo, LLC, www.Excelo.com , a wholly-owned subsidiary of the Company, is a national search firm specializing in fulfilling strategic executive, professional and hi-tech placements for businesses delivering world-class services. DPW Holdings, Inc.’s headquarters is located at 201 Shipyard Way, Suite E, CA 92663; www.DPWHoldings.com . For Investor inquiries: [email protected] or 1-888-753-2235.
Forward-Looking Statements
The foregoing release contains “ ” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the acquisition and the ability to consummate the acquisition. These generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.DPWHoldings.com .
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Source:DPW Holdings, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/25/globe-newswire-dpw-holdings-acquires-ownership-in-legendary-european-hotelas-american-debut.html |
May 1, 2018 / 9:34 AM / Updated 10 hours ago India extends deadline to receive initial bids for Air India Manoj Kumar , Aditi Shah 2 Min Read
NEW DELHI (Reuters) - India has extended the deadline to receive initial bids for its stake in state-run carrier Air India to May 31 from May 14, according to a notification issued by the Ministry of Civil Aviation on Tuesday. FILE PHOTO: An Air India Airbus A320neo plane takes off in Colomiers near Toulouse, France, December 13, 2017. REUTERS/Regis Duvignau - RC1EDC9E2840/File Photo
India will announce the qualified bidders for the beleaguered airline on June 15, according to the statement.
Prime Minister Narendra Modi’s government, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 percent stake and offload about $5.1 billion of its debt.
After the terms were disclosed, no company has come forward to say it is interested or to reaffirm previous interest, while Jet Airways and rival IndiGo, owned by InterGlobe Aviation, have already publicly opted out of the race.
In April, sources told Reuters that India’s steel-to-autos conglomerate Tata Group, widely seen as a potential suitor for Air India, is also unlikely to consider a bid for the state-run carrier as the government’s terms are too onerous. Tata Group has not issued an official statement yet.
In its initial terms the government said the winning bidder cannot merge the airline with existing businesses as long as the government holds a stake. The winner may also be required to list Air India and would need to abide by rules set to safeguard employee interests, restricting its ability to cut staff.
Earlier on Tuesday, the civil aviation ministry made public 160 queries it had received from interested bidders seeking clarity on the initial terms. These were mainly about the impact of the government’s decision to hold a 24 percent stake, the make-up of the airline’s debt and liabilities, its latest financial performance and workforce. The Air India logo is seen on the facade of its office building in Mumbai, India, July 7, 2017. REUTERS/Danish Siddiqui/File Photo Reporting by Manoj Kumar and Aditi Shah; Editing by Biju Dwarakanath and Vyas Mohan | ashraq/financial-news-articles | https://in.reuters.com/article/air-india-divestment/india-extends-deadline-to-receive-initial-bids-for-air-india-idINKBN1I2380 |
MILAN (Reuters) - Shares in Italy’s banking sector hit their lowest level in nearly a year on Friday as the prospect of an anti-establishment government pushed the risk premium on Italian bonds to a four-year high.
FILE PHOTO: The Lower House building is seen as Italy's newly appointed Prime Minister Giuseppe Conte starts a round of consultations with Italy's political parties in Rome, Italy, May 24, 2018. REUTERS/Yara Nardi Concerns over a government program that combines tax cuts and higher spending have pushed investors to demand a premium of more than 2 percentage points for holding Italy’s 10-year debt instead of equivalent German paper.
Despite trimming their sovereign exposure in recent years, Italian banks are still large holders of domestic government bonds and falling bond prices are the main contagion threat for Italian lenders from the country’s political situation.
Banks are also exposed to a weakening in Italy’s economic growth. And there are also specific elements in the nascent government’s plans that risk undermining a tentative recovery in the banking industry, which was laid low by a deep recession that ended in 2014.
Proposed tax cuts would reduce the value of tax assets banks have accumulated. An ongoing bad loan clean-up process could also suffer if political risks depress the price of troubled loans or the new government drops a guarantee scheme that helped banks offload these assets.
Analysts generally give little credit to calls in the program for a revision of international banking rules, including so-called European ‘bail in’ rules imposing losses on investors in a bank before any state aid can be tapped.
Following is a summary of how different brokers assess potential impacts on Italian banks under a new government led by the far right League and the Five Star Movement:
1. Goldman Sachs analysts estimate that bond yields at current levels and a lower tax rate in line with the coalition’s latest proposal would reduce Italian banks’ core capital by 60 basis points in aggregate.
Heavyweights UniCredit and Intesa Sanpaolo would be the least affected with a reduction of around 50 basis points while the hit on smaller banks could reach 70-80 basis points.
Assuming a reduction of the corporate tax rate to 23.5 percent from 27.5 percent would imply in aggregate a 41 basis point reduction of the core capital ratio, with smaller banks the worst affected.
“We believe that the latest political developments may lead to further differentiation between the large players and the smaller banks,” Goldman analysts say.
“We increase cost of equity to reflect higher uncertainty on future earnings and NPE (non-performing exposures) disposals,” they say, confirming a ‘buy’ rating on UniCredit while downgrading Banco BPM to “neutral” from “buy”.
Goldman notes sustained foreign demand is key for Italian banks to continue to shed soured loans. A 10 percent drop in the average market price of 23 percent of a loan’s nominal value would cost banks 6 basis points in terms of aggregate core capital.
2. Mediobanca analysts start by saying they don’t expect the new government to implement the proposed measures, but they calculate that the re-assessed value of deferred tax assets (DTAs) could erode around 110 basis points of core capital for a sample of banks.
Banco BPM, Carige and Creval would be hit the hardest given the large amount of DTAs stemming from credit impairments not deducted in the past.
Monte dei Paschi would be little hit as the large losses suffered over the past years allowed it to transform deferred tax assets into tax credits. Credem and Popolare di Sondrio are at the opposite side of the spectrum, given the low amount of credit losses suffered.
Looking ahead, tax cuts could boost earnings per share by 15-20 percent, or 8 percent for UniCredit given its large foreign business.
3. Equita SIM estimates a further 12 percent downside for the banking sector from measures included in the government program following a 6 percent drop in the past two weeks.
A potential introduction of a flat tax of 2 percent on revenues banks generate in Italy could translate into a 10 percent hit on banks’ valuations, Equita says.
The broker also calculates a 60 basis point widening in Italy-Germany 10-year bond yield spread translated into a 2 percent hit on banks’ valuations so far. A further 1 percent hit could come from the new government’s possible decision to let a government guarantee scheme to ease bad loan disposals expire in September.
4. Credit Suisse analysts calculate that every 100 basis points of widening in sovereign spreads would result in a 94 basis point average hit to banks’ core capital ratios due from marking to market the entire Italian sovereign portfolio, including both the banking and insurance businesses as well as bonds classified in all categories.
Compiled by Valentina Za, Gianluca Semeraro and Danilo Masoni; Editing by Peter Graff
| ashraq/financial-news-articles | https://www.reuters.com/article/us-italy-politics-banks-factbox/factbox-impact-estimates-on-italian-banks-from-nascent-governments-plans-idUSKCN1IQ2CR |
May 22, 2018 / 8:05 PM / Updated 29 minutes ago Senate panel OKs bill to tighten foreign investment oversight Diane Bartz 3 The U.S. Senate Banking Committee voted on Tuesday to approve a bill that would tighten oversight of foreign investment to slow China’s acquisition of sensitive U.S. technology.
The House Committee on Financial Services is slated to consider a version of the measure on Tuesday.
The two chambers began the process in November with identical bills to expand the clout of the inter-agency Committee on Foreign Investment in the United States, or CFIUS, which reviews foreign investment to ensure it does not compromise national security.
Congress is considering the bills to address Defense Department concerns that U.S. soldiers could some day face on a battlefield U.S. technology like robotics or drones that had been acquired by foreign adversaries.
The Senate committee approved removing from the bill a section that would require CFIUS to review joint ventures that could lead to technology transfer, a process that would delay transactions. The approved bill also defines passive investments, which CFIUS normally considers approvable.
The House Financial Services Committee is expected to consider similar amendments on Tuesday.
Senator John Cornyn, the No. 2 Republican in the Senate and lead sponsor of the legislation, told reporters it would be “ideal” to attach CFIUS to the defense authorization bill or some other “must-pass” legislation.
“What we need to do is elevate everybody’s understanding of what China’s strategic long-term goals are and they are to dominate the United States economically and militarily,” said Cornyn. “They’ve got a very clear strategy for doing that and we need to wake up to that and make sure we’re responding in kind.”
The Senate Banking Committee voted to tack onto the bill a measure that would make it more difficult for the president to modify penalties on Chinese telecommunications companies such as ZTE Corp ( 000063.SZ ).
U.S. lawmakers have expressed concern that President Donald Trump would ease tough penalties on ZTE, saying the United States should not bow to pressure from Beijing to help the smartphone maker. Reporting by Diane Bartz; Additional reporting by Richard Cowan; Editing by Richard Chang | ashraq/financial-news-articles | https://www.reuters.com/article/us-usa-cfius-congress/senate-panel-oks-bill-to-tighten-foreign-investment-oversight-idUSKCN1IN2TC |
OSLO, May 9 (Reuters) - The export price of fresh farmed Norwegian salmon rose to 71.16 Norwegian crowns ($8.73) per kilo last week from 66.79 crowns the previous week, Statistics Norway said on Thursday.
Volumes exported fell to 13,735 tonnes from 14,510 tonnes over the same period, it added.
Norway is the world’s largest producer of farmed salmon. The sector is the Nordic country’s second-largest export industry after oil and gas production.
Leading Norwegian producers include Marine Harvest, Salmar, Leroy Seafood, Grieg Seafood , Austevoll Seafood and Norway Royal Salmon .
$1 = 8.1536 Norwegian crowns Reporting by Oslo newsroom
| ashraq/financial-news-articles | https://www.reuters.com/article/norway-salmon-prices/norwegian-salmon-export-price-rose-to-nok-71-16-last-week-ssb-idUSL8N1SF5YJ |
See inside a $15 million mansion on the ritzy island where Seattle's billionaires live 2 Hours Ago | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/16/inside-mansion-on-seattles-billionaire-hot-spot-mercer-island.html |
Hawaiian Airlines shares fall after Southwest plans 'low fares' between islands 1 Hour Ago | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/03/hawaiian-airlines-shares-fall-after-southwest-plans-low-fares-between-islands.html |
May 5, 2018 / 1:16 PM / Updated 3 hours ago Cambodia's 'last truly independent' newspaper sold to Malaysian Reuters Staff 3 Min Read
PHNOM PENH (Reuters) - Cambodia’s English-language daily The Phnom Penh Post was bought by a Malaysian investor, its chairman said on Saturday, amid concerns that the sale could signal the end of independent media in the country ahead of elections in July.
The news comes amid an ongoing crackdown by Prime Minister Hun Sen and his allies against perceived critics, including opposition politicians, independent media and human rights groups ahead of the vote.
Bill Clough, chairman of Post Media Ltd, publisher of The Phnom Penh Post, said in a statement the company had been sold to a little-known Malaysian investor, Sivakumar G. (Siva).
The paper’s former editor-in-chief Chad Williams said the government may have coerced the sale.
Founded in 1992, the Phnom Penh Post was reportedly slapped with a $5 million tax bill last year, according to reports by the Australian Broadcasting Corporation (ABC).
“From the outside looking in, the most troubling thing is the timing of the tax bill’s settlement and the Post’s subsequent sale. The odds of them not being connected seem incredibly remote,” Williams told Reuters.
“That’s troubling because it suggests the Cambodian government may have used the threat of a shutdown to essentially coerce the sale,” he said.
In his statement, Clough said the tax issue had been resolved and a court decision to confiscate the newspaper’s assets has been cancelled until an appeal is finished.
Describing Sivakumar G as “a well respected newspaper man”, he blamed the sale on declining advertising revenues.
“The recent times have been a challenge, as the worldwide decline in market share for newspaper advertising has also been felt here in Cambodia,” Clough said.
However, he said, the paper had been under a spotlight before the election “as the last remaining truly independent media group in the country”.
Cambodia Daily, another English-language paper, was shut down last year after it was given a month by the government to settle a $6.3 million tax bill.
Hun Sen is almost certain to win the election after the main opposition Cambodia National Rescue Party (CNRP) was dissolved by the Supreme Court last year at the request of Hun Sen’s party.
Huy Vannak, undersecretary of state at the Interior Ministry, denied the accusation about the sale of The Phnom Penh Post.
“It is a normal business, and it remains a newspaper,” he told Reuters.
And in a statement, Sivakumar G., said he would uphold the newspaper’s legacy and independence. Reporting by Prak Chan Thul; Editing by Amy Sawitta Lefevre and Clelia Oziel | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-cambodia-politics-media/cambodias-last-truly-independent-newspaper-sold-to-malaysian-idUKKBN1I60GR |
ST. LOUIS, May 31, 2018 /PRNewswire/ -- Signature Medical Group Inc., has named Vincent L. McVittie Executive Director of its episodic care management service line, Signature Care Management. McVittie brings a multifaceted background in healthcare management to Signature, having held executive leadership roles at Kaiser Permanente, Anthem and Tenet. Most recently, McVittie was Chief Administrative Officer for Highmark Health's Allegheny Health Network, a not-for-profit healthcare system with eight hospitals and 2,100 physicians.
Signature Medical Group is a convener in the Centers for Medicare and Medicaid Services' (CMS) current Bundled Payments for Care Improvement (BPCI Classic) initiative. Signature's value-based care services are provided through Signature Care Management, which now manages the largest orthopedic BPCI initiative in the country, overseeing 55 orthopedic practices in 27 states managing 45,000 Medicare surgical episodes annually.
"We're extremely pleased to bring on an executive of Vince's caliber to lead Signature Care Management," said Andrew Schwartzkopf, Chief Administrative Officer for Signature Medical Group. "As we build upon our successes in BPCI Classic, Vince's extensive executive leadership in both hospital system and physician organizations, will be integral to leading the expansion of our care management service line, including as a convener in CMS' next bundled payment model, BPCI Advanced."
BPCI Classic participants convened under Signature have achieved significant reductions in cost and adverse outcomes for orthopedic care including a 42% or $3,642 per episode cost reduction in post-acute care for elective hip and knee replacements over the 2016-2017-time frame when compared to historic baseline costs. Quality outcomes were also improved, including reductions in the incidence of hospital readmissions (28%) post-surgical infections (38%), heart attacks (41%) and pulmonary embolisms (53%).
"Bringing physicians together to manage healthcare cost and quality issues on a national scale is unusual enough, but the level of Signature's success is remarkable," said McVittie. "I am excited to join Signature and to help this innovative and influential physician organization continue to be catalyst for expanding the delivery of high quality, value-focused care locally, regionally and nationally."
About Signature Medical Group Inc.
Signature Medical Group, Inc., is a multispecialty physician group with headquarters in St. Louis, MO. Signature Care Management (SCM), a service of Signature Medical Group, is a leader in the transition to value-based care through innovative care delivery models. SCM provides national expertise in episodic care management, with tailored and effective strategies for healthcare organizations and physician groups. SCM helps its partners navigate the care redesign process to improve the quality, efficiency, and effectiveness of patient care while reducing costs.
The statements contained in this press release are solely those of Signature Medical Group, Inc., and do not necessarily reflect the views or policies of the Centers for Medicare and Medicaid Services. Signature Medical Group, Inc., assumes responsibility for the accuracy and completeness of the information contained in this press release.
Contact: Joel James
Company Name: Signature Medical Group, Inc.
Telephone: 314.662.3163
Email: [email protected]
Website: www.signaturemedicalgroup.com
View original content: http://www.prnewswire.com/news-releases/vincent-l-mcvittie-appointed-to-lead-signature-care-management-300657565.html
SOURCE Signature Medical Group Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/31/pr-newswire-vincent-l-mcvittie-appointed-to-lead-signature-care-management.html |
May 3 (Reuters) - QBE Insurance Group Ltd:
* EXPERIENCED PREMIUM RATE STRENGTH OF ABOUT 4 PERCENT (EXCLUDING CTP) IN Q1
* “OUR RATE INCREASES IN Q1 OF 2018 HAVE BEEN BROADLY IN LINE WITH OUR FORECASTS”
* “OUR YEAR TO DATE INVESTMENT RETURNS (ON AN ANNUALISED BASIS) WERE BELOW OUR FY18 TARGET RANGE”
* LOOKING FORWARD, DIVIDEND POLICY REMAINS THE SAME; EXPECTS TO CONTINUE TO PAY DIVIDEND OF UP TO 65% OF CASH PROFITS
* COMMENCED PREVIOUSLY ANNOUNCED SHARE BUYBACK FOR 2018 AND AS AT 1 MAY ACQUIRED A$23.5 MILLION OF SHARES ON MARKET UNDER PROGRAM
* SHAREHOLDERS SHOULD EXPECT A RETURN TO A MORE HISTORICALLY NORMAL DIVIDEND Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-qbe-insurance-group-expects-to-con/brief-qbe-insurance-group-expects-to-continue-to-pay-dividend-of-up-to-65-of-cash-profits-idUSFWN1S91B4 |
It's not just your eyes. Airline seats really are getting smaller. 3 Hours Ago Airplanes are more crowded than ever with airlines packing more customers into more seats. But that wasn't always the case. It's a process that happened over the course of decades. Here's a look back at the evolution of the airplane seat. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/17/airline-seats-passengers-squeeze-smaller-travel.html |
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