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May 27, 2018 / 8:29 AM / Updated 7 hours ago Qatar bans goods from UAE, Saudi as embargo anniversary approaches Reuters Staff 3 Min Read
DUBAI (Reuters) - Qatar said it was banning products originating from the United Arab Emirates, Saudi Arabia, Egypt and Bahrain, almost a year after those states imposed an embargo on Doha, accusing it of supporting terrorism. A woman shops in a supermarket in Doha, Qatar June 7, 2017. REUTERS/Stringer/Files
“Products originating from the blockading states, which as a result of the blockade cannot pass the Gulf Cooperation Council Customs Territory, have to undergo proper import inspections and customs procedures,” a government statement said late on Saturday.
“To protect the safety of consumers in the State of Qatar and to combat improper trafficking of goods, the government issued a directive to find new suppliers of the variety of goods impacted.”
The national Al Watan newspaper quoted a circular from the Ministry of Economy and Commerce telling traders and shops to stop dealing in products imported from the four countries. It said inspectors would monitor compliance with the policy.
The four states cut diplomatic and transport ties last June. Qatar, which had many of its imports trans-shipped from the UAE and received the bulk of its fresh food across the Saudi border, denied the accusations against it.
Imports into Qatar plunged about 40 percent from a year earlier in the initial weeks of the boycott, but they have since mostly returned to normal as Doha has found new sources of products in countries such as Turkey, and developed new shipping routes through places such as Oman. Qatar has also launched a drive to produce more things locally, including foods.
Since last June, some foods and other products from the embargo states have continued to find their way into Qatar through third countries.
A spokesman for Qatar’s government declined to give details but said any imports coming to the country must go through proper import inspections.
He was not immediately able to give the value of the goods affected by the new measures, and whether the ban would cover all products trans-shipped through the embargo states in addition to goods produced there.
Bahrain’s Foreign Minister Sheikh Khalid bin Ahmed al-Khalifa told Alsharq Alawsat newspaper on Sunday he saw no resolution to the diplomatic row in sight. Reporting by Aziz El Yaakoubi; Editing by Andrew Torchia and Alison Williams | ashraq/financial-news-articles | https://in.reuters.com/article/gulf-qatar-goods/qatar-bans-goods-from-uae-saudi-as-embargo-anniversary-approaches-idINKCN1IS06O |
May 21 (Reuters) - KLX Inc:
* . REPORTS STRONG FIRST QUARTER FINANCIAL RESULTS * Q1 REVENUE $499.1 MILLION VERSUS I/B/E/S VIEW $472.2 MILLION
* SEES FY 2018 REVENUE ABOUT $500 MILLION * Q1 EARNINGS PER SHARE VIEW $1.06 — THOMSON REUTERS I/B/E/S
* AS A RESULT OF PENDING SALE OF AEROSPACE SOLUTIONS GROUP TO BOEING, COMPANY WILL NO LONGER BE PROVIDING ASG SEGMENT LEVEL GUIDANCE
* COMPANY INCREASED ITS 2018 ESG GUIDANCE FOR REVENUES, ADJUSTED OPERATING EARNINGS AND ADJUSTED EBITDA
* COMPANY EXPECTS CONTINUED STRONG ORGANIC GROWTH IN REVENUES AND EARNINGS IN 2019
* SEES 2018 ADJUSTED EBITDA IS EXPECTED TO INCREASE ABOUT 300 PERCENT TO APPROXIMATELY $110 MILLION, OR 22 PERCENT OF REVENUES Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-klx-inc-reports-q1-earnings-per-sh/brief-klx-inc-reports-q1-earnings-per-share-0-62-idUSASC0A2ZA |
May 8 (Reuters) - One Stop Systems Inc:
* OSS REPORTS FIRST QUARTER 2018 RESULTS: REVENUE UP 12% TO $7.1 MILLION; REITERATES 2018 GUIDANCE
* SEES Q2 2018 REVENUE $6.7 MILLION TO $6.9 MILLION * Q1 NON-GAAP LOSS PER SHARE $0.04
* SEES FY 2018 REVENUE $36 MILLION TO $38 MILLION * Q1 REVENUE ROSE 12 PERCENT TO $7.1 MILLION Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-oss-reports-reiterates-2018-guidan/brief-oss-reports-reiterates-2018-guidance-idUSASC0A0LY |
May 14 (Reuters) - Altair Engineering Inc:
* ALTAIR ANNOUNCES FIRST QUARTER 2018 FINANCIAL RESULTS * Q1 NON-GAAP EARNINGS PER SHARE $0.08
* Q1 EARNINGS PER SHARE $0.05 * Q1 REVENUE $91.7 MILLION VERSUS I/B/E/S VIEW $86.9 MILLION
* Q1 EARNINGS PER SHARE VIEW $0.03 — THOMSON REUTERS I/B/E/S
* SEES Q2 2018 TOTAL REVENUE OF $91.0 MILLION TO $92.0 MILLION
* SEES FY 2018 TOTAL REVENUE OF $369.0 MILLION TO $373.0 MILLION
* SEES Q2 2018 GAAP NET INCOME OF $0.5 MILLION TO $1.0 MILLION
* SEES FY 2018 GAAP NET INCOME OF $11.0 MILLION TO $13.0 MILLION
* SEES Q2 2018 NON-GAAP NET INCOME $2.5 MILLION TO $3.0 MILLION
* SEES FULL YEAR 2018 NON-GAAP NET INCOME OF $19.0 MILLION TO $21.0 MILLION Source text for Eikon: Further company coverage:
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© 2018 Reuters. All Rights Reserved. | ashraq/financial-news-articles | https://www.reuters.com/article/brief-altair-engineering-q1-earnings-per/brief-altair-engineering-q1-earnings-per-share-0-05-idUSASC0A22K |
The Bill Gates book club has a new addition.
The co-founder of Microsoft and co-chair of the Gates Foundation has written a testimonial for John Doerr’s Measure What Matters , saying it’s a good choice “for anyone interested in becoming a better manager”.
The book focuses on a management system called OKRs (Objectives and Key Results), which is based on the ideas of Intel’s Andy Grove, who Gates says was a big influence on his own management style.
Doerr, a venture capitalist and chairman of Kleiner Perkins Caufield & Byers, has long worked with Gates on a variety of projects. In the book, though, he discussed the lasting impact a one-hour meeting with Grove had on him. In particular, he writes, employees were judged less on their expertise in a subject and more on their achievements.
“ It almost doesn’t matter what you know … To claim that knowledge was secondary and execution all-important—well, I wouldn’t learn that at Harvard,” writes Doerr in the book. “I found the proposition thrilling, a real-world affirmation of accomplishment over credentials. But Grove wasn’t finished, and he had saved the best for last. Over a few closing minutes, he outlined a system he’d begun to install in 1971, when Intel was three years old. It was my first exposure to the art of formal goal setting. I was mesmerized.”
Gates is arguably an even bigger fan of Grove, saying “I studied several of the business books he wrote early on, and Microsoft adopted some of the methods that Intel used. I consider Andy one of the great business leaders of the 20th century.” | ashraq/financial-news-articles | http://fortune.com/2018/05/18/bill-gates-says-every-manager-should-read-this-book/ |
Pompeo teases North Korea sanctions relief 3:03pm EDT - 01:17
U.S. Secretary of State Mike Pompeo said on Sunday that the U.S. could potentially provide North Korea with sanctions relief if it completely ends its nuclear program, and will allow private investors to help build an economy to rival South Korea. ▲ Hide Transcript ▶ View Transcript
U.S. Secretary of State Mike Pompeo said on Sunday that the U.S. could potentially provide North Korea with sanctions relief if it completely ends its nuclear program, and will allow private investors to help build an economy to rival South Korea. Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code https://reut.rs/2GcBN2G | ashraq/financial-news-articles | https://www.reuters.com/video/2018/05/13/pompeo-teases-north-korea-sanctions-reli?videoId=426579499 |
May 17, 2018 / 3:53 PM / Updated 3 hours ago Death toll from listeria outbreak in South Africa rises to more than 200 Reuters Staff 2 Min Read
JOHANNESBURG (Reuters) - The death toll from the world’s largest ever outbreak of the food-borne disease listeria has risen to 204, but the number of new cases has declined sharply after products were recalled, South African authorities said on Thursday.
The health department recalled processed meat products known as “polony”, after the source of the outbreak was traced to a factory owned by Tiger Brands unit Enterprise Foods in March resulting in a class action lawsuit filed against the company.
“Since identification of the source of the outbreak and recall of implicated products, the number of cases of listeria has declined drastically,” the Department of Health and the Department of Agriculture said in a joint statement.
The number of cases reported has risen to 1,033, the National Institute of Communicable Diseases (NICD) said.
But the number reported per week had decreased to an average of 6.4 since March 5, after the products were recalled, compared with 24.9 previously, it said.
The government said it would review its food safety legislation and would hold a consultative meeting regarding compulsory specifications for processed meat.
“Risk profiling of food processing premises is under way and preparations have been made for a program of inspections and laboratory testing of high risk processing facilities of food that may be at risk for Listeria contamination,” the departments of health and agriculture said.
Listeria is a bacterium found in soil, water and vegetation. People can be infected through animal products and fresh fruit and vegetables. Reporting by Tanisha Heiberg; editing by Andrew Roche | ashraq/financial-news-articles | https://www.reuters.com/article/us-safrica-disease-listeria/death-toll-from-listeria-outbreak-in-south-africa-rises-to-more-than-200-idUSKCN1II2BC |
May 24, 2018 / 1:03 PM / Updated 18 minutes ago First-time U.S. home buying posts first drop since 2014, report says Reuters Staff 3 Min Read
May 24 (Reuters) - Americans who had never previously owned a home bought 411,000 single-family homes in the first quarter, down 2 percent from a year ago, marking the first time this group purchased fewer homes on a year-on-year basis since 2014, a private report showed.
The purchase slowdown in the first quarter followed an unsustainable binge from first-time buyers over the past three years and a shortage of supply, especially of lower-priced homes, according to a report from Genworth Mortgage Insurance released on Thursday.
First-time buyers still play a crucial role in fueling housing demand, making up 40 percent of overall single-family home sales even in the face of rising mortgage rates and home appreciation, the company’s chief economist Tian Liu said in the report.
“In the housing market, first-time homebuyer demand is the most important driver behind the current seller’s market, characterized by low inventory and faster home price growth,” Liu wrote. “Millennial demand and the gradual release of pent-up demand explain this market condition.”
In 2017, 2.06 million homes were bought by first-time buyers, up 6 percent from the previous year and marking their strongest year since 2006, Liu said.
By comparison, 3.4 million single-family homes were sold to repeat buyers last year, unchanged from 2016.
However, there are 2.7 million potential first-time buyers who have stayed on the sidelines since the housing bust 11 years ago, according to Liu.
The home ownership rate among families headed by people who are younger than 35 was 35.3 percent in the first quarter, up 1 percentage point from a year earlier but still below its historical average of 39 percent.
Overall home ownership grew 0.6 percentage point to 64.2 percent in the first quarter.
“We believe that the housing market is becoming overheated, which is supported by this quarter’s growth of all-cash transactions and purchase loans made by investors, and the corresponding decrease in first-time homebuyers,” Liu cautioned.
Housing supply remains constrained due to a shortage of land and labor, lifting home prices at a 6 percent to 7 percent annual clip, analysts said.
As builders play catch-up to demand, Liu said some landlords may convert rental properties for sale to profit from rising prices, while some homeowners may opt to spend more on renovating current properties. That could provide some relief to the tight housing supply. Reporting by Richard Leong, Editing by Rosalba O'Brien | ashraq/financial-news-articles | https://www.reuters.com/article/usa-housing-firsthomebuyers/first-time-u-s-home-buying-posts-first-drop-since-2014-report-says-idUSL2N1SU1WV |
May 3 (Reuters) - United Overseas Bank Ltd:
* QTRLY NET INTEREST INCOME S$ 1,470 MILLION VERSUS S$1,303 MILLION
* QTRLY NET PROFIT AFTER TAX S$978 MILLION VERSUS S$807 MILLION
* QTRLY NET INTEREST MARGIN 1.84 PERCENT VERSUS 1.73 PERCENT
* AS AT END-MARCH, CET1 CAPITAL ADEQUACY RATIO 14.9 PERCENT
* NO DIVIDEND ON ORDINARY SHARES HAS BEEN DECLARED FOR Q1 OF 2018
* Q1 NPL RATIO 1.7 PERCENT VERSUS 1.5 PERCENT Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-united-overseas-bank-posts-q1-net/brief-united-overseas-bank-posts-q1-net-interest-income-of-s1470-mln-idUSFWN1S91AR |
TORONTO--(BUSINESS WIRE)-- Agellan Commercial Real Estate Investment Trust (“Agellan” or the “REIT”) (TSX: ACR.UN):
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES
Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX:ACR.UN) is pleased to report its financial results for the three month period ended March 31, 2018. All dollar amounts (except per Unit amounts) are in thousands of Canadian dollars (“CAD”), unless otherwise stated.
HIGHLIGHTS
Net Income increased $0.966 per Unit over the same quarter last year; Funds From Operations and Adjusted Funds from Operations per Unit increased 6.4% and 13.9% over the same quarter last year; and The REIT agreed to dispose of its Consumers Road complex for approximately $256.3M (subject to certain adjustments).
“The REIT continues to make strides on its strategic direction and the agreement to sell Parkway Place is the most significant step to date,” said Frank Camenzuli, the REIT’s Chief Executive Officer. “The REIT is excited to have achieved another strategic milestone and is looking forward to redeploying the proceeds and continuing to grow the REIT’s presence in U.S. industrial real estate.”
FINANCIAL AND OPERATIONAL HIGHLIGHTS March 31, 2018 December 31, 2017 Summary of Operational Information Number of Properties 45 44 Gross Leasable Area ("GLA") (in 000's) 6,695 6,652 Occupancy % (at period end) 96.5% 96.2% Average lease term to maturity (years) 3.9 4.0 Summary of Financial Information Gross Book Value (1) $883,907 $832,768 Debt (face value) $410,370 $392,507 Debt to Gross Book Value (1) 46% 47% Interest Coverage Ratio (annual) (1) 3.3x 2.3x Weighted average interest rate 4.2% 4.2% For the three month period ended March 31, 2018 March 31, 2017 Net Operating Income ("NOI") (1) $15,470 $14,024 Net Income $40,655 $6,949 Funds From Operations ("FFO") (1) $10,189 $8,313 Adjusted Funds From Operations ("AFFO") (1) $8,587 $6,569 Adjusted Cash Flow From Operations ("ACFO") (1) $8,246 $4,882 Basic and Diluted FFO per Unit (1) $0.301 $0.283 Basic and Diluted AFFO per Unit (1) $0.254 $0.223 Distributions Declared $6,836 $6,036 Distributions per Unit $0.202 $0.206 Payout Ratio (1) 83% 124% Units Outstanding at Period-end 33,771,703 32,770,050 Weighted Average Units Outstanding (Basic and Diluted) 33,813,424 29,401,636 (1) This is a non-IFRS financial measures. Please see “Non-IFRS supplemental measures” below. Summary of Significant Events:
Financial Highlights
For the three month period ended March 31, 2018, the REIT achieved net income of $40,655, compared to net income of $6,949 for the three month period ended March 31, 2017. This represents an increase in net income of $0.966 per Unit, primarily related to the fair value adjustment on the REIT`s investment properties. For the three month period ended March 31, 2018, the REIT achieved FFO per Unit of $0.301, compared to $0.283 for the three month period ended March 31, 2017. This represents a 6.4% increase in FFO per Unit. For the three month period ended March 31, 2018, the REIT achieved AFFO per Unit of $0.254, compared to $0.223 for the three month period ended March 31, 2017. This represents a 13.9% increase in AFFO per Unit. For the three month period ended March 31, 2018, the REIT’s ACFO was $8,246 and its Payout Ratio was 83%.
Operational Highlights
As at April 1, 2018, the overall occupancy rate of the REIT’s portfolio was 96.8%, representing an increase from the January 1, 2018 occupancy rate of 95.7%. This increase was primarily the result of additional leases beginning at the newly developed retail space located at the REIT’s Consumers Road complex. On January 9, 2018, the REIT entered into an agreement to purchase a 58,000 square foot multi-tenant industrial property located in Laurel, Maryland. The property is currently 92% occupied by 6 tenants with a weighted average remaining lease term of 4.5 years. The acquisition is expected to close before the end of May 2018 for total consideration of U.S. $5,280 (excluding closing costs), representing a going-in capitalization rate of 8.1%. The REIT anticipates financing the transaction with funds from its credit facility. On February 28, 2018, the REIT extended the maturity of its credit facility and increased the maximum funds available thereunder. The credit facility now matures on January 25, 2020 and the maximum availability thereunder has been increased from $120.0 million to $140.0 million. On March 27, 2018, the REIT entered into a purchase and sale agreement, and subsequently amended, to dispose of its Consumers Road complex, including the four office properties and newly developed retail space and parking garage. The sale price for the property is approximately $256.3 million (excluding closing costs) and is subject to certain adjustments in respect of, among other things, certain committed leasing costs. In conjunction with the sale of the REIT’s Consumers Road complex, the REIT has also agreed to an approximately $2.8 million vendor head lease with the purchaser in respect of certain vacant retail space. The REIT expects to use the sale proceeds (i) to repay all outstanding amounts owing under the REIT’s credit facility secured by the REIT’s Consumers Road complex, (ii) to acquire industrial assets located in the REIT’s target markets in the United States, (iii) to repay certain other outstanding debt of the REIT, (iv) to make a special distribution to Unitholders (as described in “Part IV – Distributions and Adjusted Cash Flow from Operations” in the REIT’s MD&A), and (v) for general business and working capital purposes,. On May 4, 2018, the purchaser waived the conditions in its favour under the purchase and sale agreement and closing of the transaction is expected to occur prior to the end of the second quarter. Following the sale of the REIT’s Consumers Road complex, the REIT expects to be retained by the purchaser to provide certain management services.
Subsequent Events
On April 18, 2018, the REIT declared a monthly distribution for the month ended April 30, 2018 of $0.0675 per Unit, representing $0.81 per Unit on an annualized basis. On April 30, 2018, the REIT acquired seven light industrial properties located in northeast Dallas, Texas. The properties comprise approximately 194,000 square feet of GLA, are 97% occupied and have a weighted average lease term of approximately 2.5 years. The acquisition price was approximately U.S. $12.2 million (before closing costs), representing a going-in capitalization rate of approximately 7.7%. The transaction was financed with funds from its credit facility and an $8.0 million first mortgage secured by the property.
The REIT will hold a conference call to discuss the REIT’s financial performance for the three month period ended March 31, 2018 on Wednesday, May 9, 2018 at 2:00 p.m. (Toronto time). To access the call, please dial 1-416-641-6104 or 1-800-806-5484 and enter the participant pass code: 6749642. For operator assistance during the call, please press *0.
A replay of the conference call will be available from 5:00 p.m. (Toronto time) on May 9, 2018 until midnight (Toronto time) on June 8, 2018. To access the replay, please call 1-905-694-9451 or 1-800-408-3053 and enter participant pass code: 5261030.
Other information:
Information appearing in this news release is a select summary of results. The REIT’s consolidated financial statements along with management’s discussion and analysis for the three month period ended March 31, 2018 (“MD&A”) are available electronically on the REIT’s website at www.agellanreit.com and under the REIT’s issuer profile at www.sedar.com .
The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select major urban markets in the United States and Canada.
The REIT’s 46 properties contain 7.3 million square feet of gross leasable area, with the REIT’s ownership interest at 6.9 million square feet. The properties are located in major urban markets in the United States and Canada.
Non-IFRS supplemental measures:
Certain terms used in this news release are not recognized under International Financial Reporting Standards (“IFRS”) and therefore these terms should not be construed as alternatives to IFRS measures, such as net income or cash flow from operating activities nor are these terms necessarily comparable to similar measures presented by other reporting issuers. These terms are used by management to measure, compare and explain the operating results and financial performance of the REIT. Management believes that these terms are relevant measures in comparing the REIT’s performance to industry data and the REIT’s ability to earn and distribute cash to holders of Units. These non-IFRS measures, including FFO, AFFO, ACFO, Payout Ratio, Gross Book Value, Interest Coverage Ratio, NOI, and related per Unit amounts are defined, FFO, is reconciled to net income, and AFFO and ACFO are reconciled to cash flows from (used in) operating activities in the REIT’s MD&A, which should be read in conjunction with this news release.
Forward-looking information:
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information can be identified by words or expressions including, but not limited to, “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “predicts”, ”projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “should”, “might”, “occur”, “be achieved” or “continue” or similar expressions. Forward-looking information is necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the REIT’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. As such, management can give no assurance that actual results will be consistent with the forward-looking information. While such assumptions are considered reasonable by management of the REIT based on the information currently available, any of these assumptions could prove to be inaccurate and, as a result, the forward-looking information based on those assumptions could be incorrect. These risks and uncertainties include, but are not limited to: the REIT’s future growth potential; results of operations; future prospects for additional investment opportunities in Canada and the US, including access to debt and equity capital at acceptable costs, the ability to obtain necessary approvals and to minimize any unexpected costs or liabilities, environmental or otherwise, relating to any acquisitions or dispositions; demographic and industry trends remaining unchanged, including occupancy levels, lease renewals, the exercise of any early termination rights, rental increases and retailer competition; future levels of the REIT’s indebtedness remaining at acceptable levels, including its credit rating; tax laws as currently in effect remaining unchanged, including applicable specified investment flow-through rules; and current economic conditions remaining unchanged, including interest rates and applicable foreign exchange rates. Readers, therefore, should not place undue reliance on any such forward-looking statements, as forward-looking information involves significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. All forward-looking information in this news release speaks only as of the date of this news release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities laws. All forward-looking statements in this news release are qualified by these cautionary statements. Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators, including its current annual information form and MD&A.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180508006828/en/
Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, 416-593-6800, ext. 226
Chief Executive Officer
[email protected]
Source: Agellan Commercial Real Estate Investment Trust | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/08/business-wire-agellan-commercial-real-estate-investment-trust-releases-first-quarter-2018-results.html |
PALO ALTO, Calif. (AP) _ Hercules Technology Growth Capital Inc. (HTGC) on Thursday reported first-quarter net income of $5.9 million, after reporting a loss in the same period a year earlier.
The Palo Alto, California-based company said it had net income of 7 cents per share. Earnings, adjusted for investment costs, came to 31 cents per share.
The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 30 cents per share.
The specialty finance company posted revenue of $48.7 million in the period, which missed Street forecasts. Six analysts surveyed by Zacks expected $49.4 million.
Hercules Tech shares have decreased 5.5 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $12.40, a decline of 19 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 HTGC at https://www.zacks.com/ap/HTGC | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/03/the-associated-press-hercules-tech-1q-earnings-snapshot.html |
Facebook Messenger chief on app redesign 41 Mins Ago CNBC's Julia Boorstin speaks with David Marcus, Facebook head of Messenger, about the company's overhaul of the popular messaging app and the impact on user engagement following the company's data privacy scandal. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/01/facebook-messenger-chief-on-app-redesign.html |
Apple's cash hoard,)
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."
PARTNERSHIP Hunnicutt | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/05/reuters-america-highlights-warren-buffett-comments-on-apple-other-berkshire-investments.html |
April 30 (Reuters) - KENT GIDA:
* Q1 REVENUE OF 192.3 MILLION LIRA VERSUS 158.8 MILLION LIRA YEAR AGO
* Q1 NET PROFIT OF 18.6 MILLION LIRA VERSUS 2.8 MILLION LIRA YEAR AGO Source text for Eikon: Further company coverage: (Gdynia Newsroom)
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-kent-gida-q1-net-profit-increases/brief-kent-gida-q1-net-profit-increases-to-18-6-million-lira-idUSFWN1S7149 |
Cramer on Apple CEO Tim Cook's privacy pitch 4 Hours Ago Apple CEO Tim Cook's commencement speech to college graduates may have been a pitch to future employees on why his company is more trustworthy than Facebook, CNBC's Jim Cramer said Monday. | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/14/cramer-on-apple-ceo-tim-cooks-privacy-pitch.html |
* NSE index up 0.5 pct, BSE index up 0.6 pct
* Tata Motors top pct loser on both indexes
By Krishna V Kurup
May 24 (Reuters) - Indian shares rose on Thursday, driven by IT stocks such as Infosys Ltd and Tata Consultancy Services Ltd on the back of a weak rupee.
The rupee has weakened by more than 7 percent so far this year, hitting its lowest since December 2016 at 68.46 per dollar on Wednesday, as surging crude oil prices weigh on India, the world’s third largest importer of the commodity, raising fears that soaring costs could drive up inflation and widen the trade deficit.
Bearish bets on the rupee climbed to their highest since August, a Reuters poll showed last week, with sentiment further soured by rising oil prices.
A weaker rupee could translate into higher returns from the U.S. market, the biggest source of revenue for IT companies.
With the market factoring in that the rupee will stay at current levels going forward, this will be an advantage for IT companies, said Sudheer Guntupalli, a technology sector analyst with Ambit Capital.
“Market is also expecting an uptick in IT spending in key client verticals such as BFSI (Banking, Financial services and Insurance), retail, etc after the recent U.S. tax reform,” said Guntupalli.
The Nifty IT index rose as much as 2 percent, its biggest intraday gain in nearly four weeks, and has gained 15.4 percent so far this year.
Infosys rose as much as 3 percent and TCS climbed 2.8 percent.
The broader NSE index was up 0.48 percent at 10,480.20 as of 0716 GMT, while the benchmark BSE index was 0.62 percent higher at 34,557.42.
Meanwhile, Tata Motors Ltd fell to its lowest since February 2016 after the automaker said fourth-quarter profit halved due to higher expenses and a one-off charge. Tata Motors was the top percentage loser on both the indexes.
Jet Airways (India) Ltd, the country’s second-largest airline by market share, hit its lowest since February 2017 on bleak quarterly results. (Reporting by Krishna V Kurup in Bengaluru; Editing by Subhranshu Sahu)
| ashraq/financial-news-articles | https://www.reuters.com/article/india-stocks/indian-shares-rise-on-surging-it-stocks-idUSL3N1SV2YY |
On Tuesday, Reuters journalists Wa Lone and Kyaw Soe Oo were honored at the PEN America Literary Gala in New York. Attending on their behalf to accept the PEN/Barbey Freedom to Write Award were Wa Lone’s brother Thura Aung and brother-in-law Win Khant Kyaw, and Kyaw Soe Oo’s wife Chit Thu Win, sister Nyo Nyo Aye and daughter Moe Thin Wai Zin.
Author Margaret Atwood presents an award to Thura Aung (R) on behalf of detained Reuters journalists Kyaw Soe Oo and Wa Lone at the PEN America Literary Gala in New York, U.S., May 22, 2018. REUTERS/Lucas Jackson Author Margaret Atwood presented the award – which recognizes an imprisoned writer targeted for exercising freedom of speech – and read a personal message from Wa Lone and Kyaw Soe Oo. “We are grateful for the support of PEN America, Reuters and all those others working on our behalf to help us regain our freedom. The award is an encouragement that we have the backing of people from around the world who love the freedom of the press and democratic values. We desperately miss our families, our friends and our newsroom. Your encouragement fortifies our hopes,” they wrote from prison.
Wa Lone and Kyaw Soe Oo were also honored at a luncheon in New York on Wednesday by Asia Society, where Reuters Asia Regional Editor Kevin Krolicki and Reuters Myanmar Correspondent Shoon Naing accepted the Osborn Elliott Award on their behalf.
Jury Chair Marcus Brauchli introduced the prize, noting that, “Four years ago, Reuters won the Osborn Elliott Prize for their coverage of the plight of the Rohingya. They have continued to prioritize coverage of the Rohingya’s desperate situation, backing reporting like that done by Wa Lone and Kyaw Soe Oo, and providing the earliest accounts of the horrific violence and sustained campaigns of ethnic cleansing in Myanmar. Work like this requires tenacity, commitment, and fearlessness.”
The families of Wa Lone and Kyaw Soe Oo are honored at the Asia Society. Krolicki and Naing then joined Irrawaddy reporter Lawi Weng and moderator Deborah Amos, an NPR correspondent, to discuss Wa Lone and Kyaw Soe Oo’s work and the challenges facing reporters and news organizations covering the situation of the Rohingya.
[Reuters Press Blog]
Media Contact:
Heather.Carpenter at thomsonreuters.com
| ashraq/financial-news-articles | https://www.reuters.com/article/rpb-penozzie/pen-america-and-asia-society-honor-reuters-journalists-wa-lone-and-kyaw-soe-oo-idUSKCN1IO39A |
Johnny Manziel didn’t find any NFL takers during his stint in The Spring League last month, so he says he’ll resume his playing career by signing with the Canadian Football League.
Cleveland Browns quarterback Johnny Manziel watches the Dallas Mavericks at Cleveland Cavaliers NBA game at Quicken Loans Arena, in Cleveland, Ohio, U.S., October 17, 2014. REUTERS/David Richard-USA TODAY Sports/File photo “Made the decision today to sign my contract with the CFL and further my football career after a long break. Very grateful for everyone that’s been supporting me along the way. I believe this is the best opportunity for me moving forward and I’m eager for what the future holds,” he tweeted Saturday morning.
Manziel’s CFL rights are held by the Hamilton Tiger-Cats, who extended a qualifying offer in January. CFL training camps start on May 16 for rookies.
Any deal with the Tiger-Cats would have to be for a minimum of two years, meaning Manziel is committed to the CFL through the 2019 season.
June Jones, the Hamilton coach, has said Manziel would have to win the job away from starter Jeremiah Masoli, who threw for 3,177 yards and 15 touchdowns with five interceptions in 12 games last season.
Manziel was released by the Cleveland Browns, who took him in the first round of the 2014 draft, in March 2016 after numerous off-field issues and a suspension under the NFL’s substance abuse policy.
Earlier this month, Manziel was hospitalized due to an adverse reaction to prescription medication after he attended the JMBLYA music festival in Houston.
Denise Michaels, Manziel’s representative, told TMZ, “It seems like he had a reaction to an adjustment in his prescription. He’s fine and headed home.”
“Thank you everyone for your concern and kind messages,” Manziel wrote on Instagram. “Unfortunately I had a reaction to an increased dosage in lithium which I take for my bipolar disorder. It was a scary moment and I’m especially grateful for the staff at the hospital and all that they’ve done in the last 24 hours.”
—Field Level Media
| ashraq/financial-news-articles | https://www.reuters.com/article/us-football-nfl-manziel/manziel-putting-nfl-dream-on-hold-signing-with-cfl-idUSKCN1IK0LW |
COLLINGSWOOD, N.J.--(BUSINESS WIRE)-- 1st Colonial Bancorp, Inc. (FCOB), holding company of 1 st Colonial Community Bank, today reported net income of $1.1 million, or $0.24 per diluted share, for the three months ended March 31, 2018 compared to net income of $977 thousand, or $0.22 per diluted share for the three months ended March 31, 2017. The earnings per diluted share were adjusted to give effect to the 5% stock dividend distributed to shareholders on April 16, 2018.
Gerry Banmiller, President and Chief Executive Officer, commented, “We are very pleased to announce our 11% growth in net income for the first quarter of 2018. Prudent loan growth and pricing similarly contributed to an 11% increase in net interest income, which is the driver of our earnings. Investments in our residential mortgage unit and our commercial lending group have us well positioned for prompt loan decisioning and continued growth in 2018 and beyond.”
Highlights for the three months ended March 31, 2018, included:
Balance Sheet Trends:
At March 31, 2018, total assets were $526.7 million and grew $23.2 million, or 4.6% from $503.5 million at March 31, 2017. Total loans were $383.1 million at March 31, 2018, an increase of $20.8 million, or 5.7%, from $362.3 million at March 31, 2017. Increases were recognized in commercial loans secured by real estate and home equity loans. Total deposits were $475.1 million at March 31, 2018 and increased $12.1 million, or 2.6%, from $463.0 million at March 31, 2017. In 2017, we ran a successful certificates of deposit promotion which helped grow such deposits by $56.7 million during the past year. Municipal deposits and brokered deposits declined $13.4 million and $14.0 million, respectively. Total shareholders’ equity was $39.4 million at March 31, 2018, an increase of $4.1 million, or 11.6%, from $35.3 million at March 31, 2017. 1 st Colonial's non-performing assets at March 31, 2018 were $2.4 million compared to $2.7 million at March 31, 2017. Non-performing assets to total assets at March 31, 2018 were 0.45% compared to 0.53% at March 31, 2017.
Income Statement and Other Highlights:
Net interest income for the three months ended March 31, 2018 increased $433 thousand, or 10.9%, to $4.4 million from $4.0 million for the three months ended March 31, 2017. The growth in net interest income was primarily related to an increase in interest income on loans and in the average yield earned on average interest-earning assets. During the past twelve months, the 75 basis point increase in the fed funds rate since March 2017 has had a positive impact on our variable rate loans and our interest-earning deposits. The improvement in interest income was partially offset by an increase in the interest paid on certificates of deposit. The net interest margin was 3.43% for the first quarter of 2018 compared to 3.32% for the first quarter of 2017. The increase in net interest margin was directly related to an increase in the yield on average interest-earning assets. For the three months ended March 31, 2018, we recorded a provision to the allowance for loan losses of $278 thousand compared to $100 thousand for the three months ended March 31, 2017. The increase in the quarter over quarter provision was related to an increase in specific reserves required on impaired loans. The loss allowance as a percentage of total loans was 1.33% at March 31, 2018 compared to 1.28% at March 31, 2017. Non-interest income for the first quarter of 2018 was $645 thousand, a decrease of $233 thousand, or 26.5%, from $878 thousand for the first quarter of 2017. Gains on the sale of small business administration (“SBA”) loans and the sale of residential mortgages declined $158 thousand and $50 thousand, respectively, due to a decline in the volume of loans sold. Additionally, in the first quarter of 2017, we sold a property that was a former branch location and recorded a gain of $29 thousand as a result of the sale. There were no such sales in the first quarter of 2018. Non-interest expense was $3.3 million for the quarter ended March 31, 2018 and increased $92 thousand, or 2.9%, from $3.2 million for the comparable period in 2017. Contributing to the increase in non-interest expense for the first quarter of 2018 was a $95 thousand increase in salaries and benefits related to an increase in headcount in the lending support and compliance functions. For the three months ended March 31, 2018, income tax expense was $388 thousand compared to $570 thousand for the three months ended March 31, 2017, respectively. The $182 thousand decrease in tax expense was related to H.R.1 (originally known as the “Tax Cuts and Jobs Act”) which was enacted on December 22, 2017. H.R. 1 lowered the maximum federal corporate tax rate to 21% from 35%.
Highlights as of March 31, 2018 and 2017, and a comparison of the three months ended March 31, 2018 to the three months ended March 31, 2017 include the following:
1 st COLONIAL BANCORP, INC.
CONSOLIDATED INCOME STATEMENTS
(Unaudited, dollars in thousands, except per share data)
For the three months ended March 31, 2018
2017
Interest income $ 5,207 $ 4,511 Interest expense 793 530 Net Interest Income 4,414 3,981 Provision for loan losses 278 100 Net interest income after provision for loan losses 4,136 3,881 Non-interest income 645 878 Non-interest expense 3,304 3,212 Income before taxes 1,477 1,547 Income tax expense 388 570 Net Income $ 1,089 $ 977 Earnings Per Share – Basic (1) $ 0.25 $ 0.23 Earnings Per Share – Diluted (1) $ 0.24 $ 0.22 SELECTED PERFORMANCE RATIOS:
For the three
months ended
March 31,
For the three
months ended
March 31,
2018
2017
Return on Average Assets 0.83 % 0.82 % Return on Average Equity 11.36 % 11.86 % At March 31, 2018
At March 31, 2017
Book value per share (1) $ 8.97 $ 8.17 Capital ratios: Tier 1 Leverage 7.36 % 6.92 % Total Risk Based Capital 12.61 % 11.92 % Common Equity Tier 1 11.36 % 10.67 % (1) Adjusted to give effect to the 5% stock dividend distributed to shareholders on April 16, 2018. 1 st COLONIAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands) At March 31, 2018 At March 31, 2017 Cash and cash equivalents $ 16,328 $ 17,182 Total investments 113,376 109,540 Mortgage loans held for sale 4,356 5,069 Total loans 383,103 362,331 Less Allowance for loan losses (5,106 ) (4,643 ) Loans and leases, net 377,997 357,688 Bank owned life insurance 8,494 8,251 Premises and equipment, net 963 919 Other real estate owned, net - 57 Accrued interest receivable 1,596 1,235 Other assets 3,556 3,605 Total Assets $ 526,666 $ 503,546 Total deposits $ 475,124 $ 463,000 Other borrowings 10,437 3,479 Other liabilities 1,746 1,813 Total Shareholders’ Equity 39,359 35,254 Total Liabilities and Equity $ 526,666 $ 503,546 1 st COLONIAL BANCORP, INC.
NET INTEREST INCOME AND MARGIN
(Unaudited, in thousands, except percentages)
For the three months ended For the three months ended March 31, 2018 March 31, 2017 Average
Balance
Interest Yield Average
Balance
Interest Yield Cash and cash equivalents $ 22,791 $ 76 1.35 % $ 16,325 $ 24 0.60 % Investment securities 116,314 512 1.79 % 112,503 382 1.38 % Mortgage loans held for sale 5,816 47 3.28 % 5,419 38 2.77 % Loans 377,313 4,572 4.91 % 352,156 4,067 4.68 % Total interest-earning assets 522,234 5,207 4.04 % 486,403 4,511 3.76 % Non-interest earning assets 12,323 12,849 Total average assets $ 534,557 $ 499,252 Interest-bearing deposits
NOW and money markets $ 233,099 $ 182 0.32 % $ 247,639 $ 179 0.29 % Savings 61,008 67 0.45 % 69,322 77 0.45 % Certificates of deposit 132,812 540 1.65 % 84,250 269 1.29 % Total interest-bearing deposits 426,919 789 0.75 % 401,211 525 0.53 % Borrowings 3,327 4 0.49 % 3,560 5 .57 % Total interest-bearing liabilities 430,246 793 0.75 % 404,771 530 0.53 % Non-interest bearing deposits 64,313 58,616 Other liabilities 1,420 1,580 Shareholders' equity 38,578 34,285 Total average liabilities and equity $ 534,557 $ 499,252 Net interest income $ 4,414 $ 3,981 Net interest margin 3.43 % 3.32 % Net interest spread 3.30 % 3.23 % 1st Colonial Community Bank, the subsidiary of 1 st Colonial Bancorp, provides a range of business and consumer financial services, placing emphasis on customer service and access to decision makers. Headquartered in Collingswood, New Jersey, the Bank also has a branch in the New Jersey community of Westville and administrative offices in Cherry Hill, New Jersey. To learn more, call (856) 858-8402 or visit www.1stcolonial.com .
This release contains forward-looking statements that are not historical facts and include statements about management’s strategies and expectations about our business. There are risks and uncertainties that may cause our actual results and performance to be materially different from results indicated by these forward-looking statements. Factors that might cause a difference include economic conditions; unanticipated loan losses, inability to close loans in our pipeline, lack of liquidity; varying and unanticipated costs of collection with respect to nonperforming loans; an inability to dispose of real estate owned; changes in interest rates, changes in FDIC assessments, deposit flows, loan demand, and real estate values; changes in relationships with major customers; operational risks, including the risk of fraud by employees, customers or outsiders; competition; changes in accounting principles, policies or guidelines; changes in laws or regulations and in the manner in which the regulators enforce same; new technology and other factors affecting our operations, pricing, products and services.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180430005942/en/
1st Colonial Bancorp, Inc.
Gerry Banmiller, 856-858-8402
Source: 1st Colonial Bancorp, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/04/30/business-wire-1st-colonial-bancorp-inc-reports-first-quarter-2018-net-income-of-1-point-1-million.html |
May 25, 2018 / 9:05 PM / Updated 7 hours ago Apple sees steep increase in U.S. national security requests Stephen Nellis 3 Min Read
(Reuters) - Apple Inc ( AAPL.O ) on Friday issued its twice yearly transparency report on government data requests, showing another sharp increase in U.S. national security-related requests. FILE PHOTO - An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo
Apple said it received as many as 16,249 national security requests affecting up to 8,249 accounts during the second half of 2017. The number of requests rose 20 percent compared with the first half of 2017, when Apple received 13,499 such requests.
But the most recent figures are more than two-and-a-half times higher than the comparable period a year earlier, when Apple received only 5,999 such requests.
Other tech firms also experienced a jump in national security request between the second half of 2016 and the first half of 2017. National security requests to Alphabet Inc’s ( GOOGL.O ) Google rose 36 percent, to almost 51,000. Similar requests to Facebook Inc ( FB.O ) nearly doubled, to almost 27,000.
Facebook and Google have not yet reported full numbers of national security requests for the second half of 2017 because both companies break out individual figures for both National Security Letters and requests under the Foreign Intelligence Surveillance Act, or FISA. The FISA numbers are subject to a six-month reporting delay by law. Apple publishes an aggregate number of both types of requests and so is able to report the figures sooner.
Apple also said on Friday that it would start reporting requests from governments to take down apps from its App Store.
Last year, Apple took down virtual private networking apps, or VPNs, from its App Store in China in order to comply with a new Chinese cyber security law. Such apps help users browse the internet more privately and were used to evade Chinese internet censorship rules. Chinese regulators also forced Apple to remove Microsoft Corp’s ( MSFT.O ) Skype internet phone and messaging app from the App Store in China.
Apple’s new tracking of app takedown requests starts on July 1, so the data will begin to appear starting one year from now. Reporting by Stephen Nellis; Editing by Dan Grebler | ashraq/financial-news-articles | https://in.reuters.com/article/apple-security/apple-sees-steep-increase-in-u-s-national-security-requests-idINKCN1IQ31X |
ISTANBUL, May 7 (Reuters) - Turkish discount retailer Sok’s Chief Executive Ugur Demirel said on Monday interest in the company’s upcoming initial public offering was high.
Sok will start trading on the Istanbul bourse on May 16. (Reporting by Can Sezer Writing by Ali Kucukgocmen Editing by Daren Butler)
Our | ashraq/financial-news-articles | https://www.reuters.com/article/turkey-ipo-ceo/interest-in-ipo-of-turkeys-discount-retailer-sokis-high-ceo-idUSI7N1S401E |
May 3, 2018 / 4:05 PM / Updated 28 minutes ago Thirteen trapped underground at South African gold mine Reuters Staff 1 Min Read
JOHANNESBURG (Reuters) - Thirteen South African miners were trapped underground in a gold mine on Thursday after a cave-in, operator Sibanye-Stillwater said.
The firm said it had made contact with three of the workers trapped in the Masakhane mine and had mobilized rescue teams.
“All efforts are being made to locate the 10 employees who remain unaccounted for, and safely recover all the affected employees,” the firm said in a statement.
South Africa is home to the world’s deepest mines and an often unforgiving geology. Reporting by Tanisha Heiberg; editing by John Stonestreet | ashraq/financial-news-articles | https://www.reuters.com/article/us-sibanye-miners/thirteen-trapped-underground-at-south-african-gold-mine-idUSKBN1I422H |
May 10, 2018 / 7:43 AM / in 9 hours BRIEF-Cyber security firm Avast down 7 pence on IPO price of 250 pence in early trading Reuters Staff 1 Min Read
May 10 (Reuters) - Avast Holding BV ( IPO-AVAS.L ):
* CYBER SECURITY FIRM AVAST DOWN 7 PENCE ON IPO PRICE OF 250 PENCE IN EARLY TRADING Further company coverage: (Reporting by Dasha Afanasieva) | ashraq/financial-news-articles | https://www.reuters.com/article/brief-cyber-security-firm-avast-down-7-p/brief-cyber-security-firm-avast-down-7-pence-on-ipo-price-of-250-pence-in-early-trading-idUSL8N1SH1KG |
MIAMI, May 24, 2018 /PRNewswire/ -- Spanish Broadcasting System, Inc. (the "Company" or "SBS") (OTCQX: SBSAA) today reported preliminary estimated financial results for the first quarter-ended March 31, 2018.
Financial Highlights
For the first quarter 2018, the Company currently estimates consolidated Net Revenue to be between approximately $32.9 and $33.9 million, an increase of between 5% and 8% over 2017 and Adjusted OIBDA*, which excludes non-cash stock-based compensation, to be between approximately $8.5 and $9.3 million, an increase of between 44% and 58% over 2017. Consolidated Operating Income is currently estimated to be between approximately $6.5 and $7.6 million, representing a growth rate of between 71% and 100% over 2017.
Discussion and Results
"Although extraordinary, unforeseen and non-recurring factors affected our Year End results for 2017, I am happy to report that our Q1 2018 results are the best in the Company's history. We are focused on growing our top line while maintaining strictly disciplined cost controls and delivering operating margins that are among the best in the industry.
Our experience in addressing the needs of the growing Hispanic market, combined with our stable of heritage brands, will serve us well in identifying growth opportunities throughout 2018 and beyond," commented Raúl Alarcón, Chairman and CEO.
Non-GAAP Financial Measures
Adjusted Operating Income (Loss) before Depreciation and Amortization, (Gain) Loss on the Disposal of Assets, net, and Impairment Charges and Restructuring Costs excluding non-cash stock-based compensation ("Adjusted OIBDA") is not a measure of performance or liquidity determined in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States. However, we believe that this measure is useful in evaluating our performance because it reflects a measure of performance for our stations before considering costs and expenses related to our capital structure and dispositions. This measure is widely used in the broadcast industry to evaluate a company's operating performance and is used by us for internal budgeting purposes and to evaluate the performance of our stations, segments, management and consolidated operations. However, this measure should not be considered in isolation or as a substitute for Operating Income, Net Income, Cash Flows from Operating Activities or any other measure used in determining our operating performance or liquidity that is calculated in accordance with GAAP. Adjusted OIBDA does not present station operating income as defined by our 12.5% Senior Secured Notes due 2017. In addition, because Adjusted OIBDA is not calculated in accordance with GAAP, it is not necessarily comparable to similarly titled measures used by other companies.
Included below are tables that reconcile Adjusted OIBDA to operating income (loss) for each segment and consolidated operating income (loss), which is the most directly comparable GAAP financial measure.
Quarter Ended March 31, 2018
(Unaudited and in millions)
Consolidated
Low Range
Consolidated
High Range
Net Revenue
$
32.9
$
33.9
Adjusted OIBDA
$
8.5
$
9.3
Less expenses excluded from Adjusted
OIBDA, but included in operating income
(loss):
Stock-based compensation
$
—
$
—
Depreciation and amortization
$
1.0
$
1.0
(Gain) loss on the disposal of assets, net
$
—
$
—
Recapitalization costs
$
1.0
$
0.7
Operating Income (Loss)
$
6.5
$
7.6
Quarter Ended March 31, 2017
(Unaudited and in millions)
Consolidated
Net Revenue
$
31.4
Adjusted OIBDA
$
5.9
Less expenses excluded from Adjusted OIBDA, but
included in operating income (loss):
Stock-based compensation
$
0.1
Depreciation and amortization
$
1.2
(Gain) loss on the disposal of assets, net
$
—
Recapitalization costs
$
0.8
Operating Income (Loss)
$
3.8
The financial information summarized above has been presented as a range of estimates because it is preliminary and does not reflect the final, or definitive, financial statements of the Company for the quarterly period ended March 31, 2018. This preliminary estimated financial information has been prepared solely on the basis of information that is currently available to management. As a result, it is subject to change based on the completion of the Company's financial closing procedures, which includes final adjustments, completion of the Company's internal review and the review by its independent registered public accounting firm of its financial statements, among other things. The Company's final financial statements for this period may contain material changes from the financial information summarized above (including by any one financial result, or all of the financial results, being below or above the range indicated) and also what one might expect to be in the final financial statements based on the financial information summarized above. The Company's independent registered public accounting firm has not audited or reviewed, and does not express an opinion with respect to, this preliminary estimated financial information.
About Spanish Broadcasting System, Inc.
Spanish Broadcasting System, Inc. owns and operates 17 radio stations located in the top U.S. Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, airing the Spanish Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40 and Latin Rhythmic format genres. SBS also operates AIRE Radio Networks, a national radio platform which creates, distributes and markets leading Spanish-language radio programming to over 250 affiliated stations reaching 94% of the U.S. Hispanic audience. SBS also owns MegaTV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. SBS also produces live concerts and events and owns multiple bilingual websites, including www.LaMusica.com , an online destination and mobile app providing content related to Latin music, entertainment, news and culture. For more information, visit us online at www.spanishbroadcasting.com .
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," "might," or "continue" or the negative or other variations thereof or comparable terminology. Factors that could cause actual results, events and developments to differ are included from time to time in the Company's public reports filed with the Securities and Exchange Commission. All forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
View original content: http://www.prnewswire.com/news-releases/spanish-broadcasting-system-inc-reports-preliminary-estimated-financial-results-for-the-first-quarter-ended-2018-300654253.html
SOURCE Spanish Broadcasting System, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/24/pr-newswire-spanish-broadcasting-system-inc-reports-preliminary-estimated-financial-results-for-the-first-quarter-ended-2018.html |
SHANGHAI (Reuters) - China Communications Construction Co (CCCC) ( 601800.SS )( 1800.HK ) has yet to receive documents from the Canadian government on its rejection of the Aecon Group ( ARE.TO ) deal, an official in the firm’s investor relations team told Reuters.
Canada on Wednesday blocked a proposed takeover of the construction company by a CCCC unit. The CCCC official said that it will issue a statement once it receives the documents.
CCCC International Holding Ltd, the overseas investment and financing arm of China Communications, had offered to buy Aecon for C$1.51 billion ($1.18 billion) in October.
Reporting by SHANGHAI Newsroom and Brenda Goh; Editing by Kim Coghill
| ashraq/financial-news-articles | https://www.reuters.com/article/us-aecon-group-m-a-china/chinas-cccc-says-has-not-received-notification-of-aecon-deal-rejection-from-canada-idUSKCN1IP07F |
Revenue of $68.6 million for the quarter High Speed Products increased to 86% of total revenue for the quarter
SAN JOSE, Calif.--(BUSINESS WIRE)-- NeoPhotonics Corporation (NYSE: NPTN), a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and data center applications, today announced financial results for its first quarter year ended March 31, 2018.
“Continuing our focus on 100G and above High Speed Products, which reached the highest proportion of revenue in our history at 86% in the quarter, we introduced and demonstrated new products for 400G and 600G coherent and datacenter applications. During the quarter we saw strength in metro and DCI deployments, driven by North America, and we have accelerating demand for these segments going into the remainder of the year,” said Tim Jenks, NeoPhotonics Chairman and CEO. “At the same time, while demand in China had stabilized, the recent regulatory and trade actions have introduced new uncertainty in that region, we continue to monitor and adjust plans accordingly.”
First Quarter Summary
Revenue was $68.6 million, down 4% year-over-year and 11% quarter-over-quarter Gross margin was 13.4%, compared to 20.4% in the prior quarter Non-GAAP Gross margin was 14.7%, compared to 21.3% in the prior quarter Net loss was $18.2 million, compared to a net loss of $14.3 million in the prior quarter Non-GAAP net loss was $14.6 million, compared to a net loss of $11.7 million in the prior quarter Diluted net loss per share was $0.41, in comparison to a net loss of $0.32 per share in the prior quarter Non-GAAP diluted net loss per share was $0.33, compared to a net loss of $0.27 in the prior quarter Adjusted EBITDA was negative $5.5 million, compared to negative $0.4 million in the prior quarter
Non-GAAP results in the first quarter of 2018 excludes $3.3 million of stock-based compensation expense, $0.3 million of amortization of acquisition-related intangibles and $0.1 million of restructuring charges. A reconciliation of the Non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release.
As of March 31, 2018, cash and cash equivalents, short-term investments and restricted cash, together totaled $86.9 million, compared to $93.9 million at December 31, 2017. Restricted cash as of March 31, 2018 was $2.7 million, flat compared to December 31, 2017.
Outlook for the Quarter Ending June 30, 2018
GAAP Non-GAAP Revenue $70 to $76 million Gross Margin 17% to 21% 18% to 22% Operating Expenses $25 to $26 million $22 to $23 million Earnings per share $0.34 to $0.24 net loss $0.26 to $0.16 net loss The Non-GAAP outlook for the second quarter of 2018 excludes the expected impact of stock-based compensation expense of approximately $3.4 million, of which $0.5 million is estimated for cost of goods sold, and the impact of expected amortization of intangibles of approximately $0.3 million.
Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures
The Company’s non-GAAP and adjusted EBITDA measures exclude certain GAAP financial measures. A reconciliation of the Non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. These non-GAAP financial measures differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. NeoPhotonics believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Conference Call
The Company will host a conference call today, Tuesday, May 8, 2018 at 5:00 P.M. Eastern Time (2:00 P.M. Pacific Time). The call will be available, live, to interested parties by dialing 800-263-0877. For international callers, please dial +1-323-794-2094. The Conference ID number is 4019636. A live webcast will be available in the Investor Relations section of NeoPhotonics’ website at: http://ir.neophotonics.com/phoenix.zhtml?c=236218&p=irol-calendar .
A replay of the webcast will be available in the Investor Relations section of the Company’s web site approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About NeoPhotonics
NeoPhotonics is a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications. The Company’s products enable cost-effective, high-speed data transmission and efficient allocation of bandwidth over communications networks. NeoPhotonics maintains headquarters in San Jose, California and ISO 9001:2000 certified engineering and manufacturing facilities in Silicon Valley (USA), Japan and China. For additional information visit www.neophotonics.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes statements that qualify as under the Private Securities Litigation Reform Act of 1995. These include statements about the following topics: future financial results, demand for the Company’s high-speed products, the Company’s market position, the outlook for the China region, and industry trends. Forward-looking statements are subject to certain risks and uncertainties that could cause the materially. Those risks and uncertainties include, but are not limited to, such factors as: the Company’s reliance on a small number of customers for a substantial portion of its revenues; market growth in China and other key countries; possible reduction in or volatility of customer orders or delays in shipments of products to customers; timing of customer drawdowns of vendor-managed inventory; potential governmental trade actions; possible disruptions in the supply chain or in demand for the Company’s products due to industry developments; the ability of the Company's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; ability of the Company to meet customer demand; volatility in utilization of manufacturing operations and manufacturing costs; reductions in the Company’s rate of new design wins, and/or the rate at which design wins go into production, and the rate of customer acceptance of new product introductions; potential pricing pressure that may arise from changing supply or demand conditions in the industry; the impact of any previous or future acquisitions or divestitures of assets and related product lines; challenges involving integration of acquired businesses and utilization of acquired technology; the discontinuance or end of life of certain other products; market adoption, revenue growth and margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements and forecasts; the timely and successful development and market acceptance of new products and upgrades to existing products; the difficulty of predicting future cash needs; the nature of other investment opportunities available to the Company from time to time; the Company’s operating cash flow; changes in economic and industry projections; a decline in general conditions in the telecommunications equipment industry or the world economy generally; and the effects of seasonality. For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2017. All are made as of the date of this press release, and the Company disclaims any duty to update such statements.
©2018 NeoPhotonics Corporation. All rights reserved. NeoPhotonics and the red dot logo are trademarks of NeoPhotonics Corporation. All other marks are the property of their respective owners.
NeoPhotonics Corporation Condensed Consolidated Balance Sheets (Unaudited) (In thousands) As of Mar. 31,
2018
Dec. 31,
2017
ASSETS Current assets: Cash and cash equivalents $ 71,867 $ 78,906 Short-term investments 12,351 12,311 Restricted cash 2,722 2,658 Accounts receivable, net 68,173 67,229 Inventories, net 68,971 67,301 Prepaid expenses and other current assets 32,306 36,235 Total current assets 256,390 264,640 Property, plant and equipment, net 125,311 127,565 Purchased intangible assets, net 4,017 4,294 Goodwill 1,115 1,115 Other long-term assets 3,288 5,339 Total assets $ 390,121 $ 402,953 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 61,331 $ 69,017 Notes payable and short-term borrowing 35,493 35,607 Current portion of long-term debt 2,981 6,005 Accrued and other current liabilities 44,936 43,242 Total current liabilities 144,741 153,871 Long-term debt, net of current portion 47,271 40,556 Other noncurrent liabilities 14,389 14,075 Total liabilities 206,401 208,502 Stockholders' equity: Common stock 111 111 Additional paid-in capital 549,189 545,953 Accumulated other comprehensive income 6,501 398 Accumulated deficit (372,081 ) (352,011 ) Total stockholders' equity 183,720 194,451 Total liabilities and stockholders' equity $ 390,121 $ 402,953 NeoPhotonics Corporation Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except percentages and per share data) Three Months Ended Mar. 31,
2018
Dec. 31,
2017
Mar. 31,
2017
Revenue $ 68,586 $ 76,871 $ 71,688 Cost of goods sold (1) 59,404 61,185 53,185 Gross profit 9,182 15,686 18,503 Gross margin 13.4 % 20.4 % 25.8 % Operating expenses: Research and development (1) 13,888 13,875 15,544 Sales and marketing (1) 4,124 4,847 4,932 General and administrative (1) 7,650 7,661 11,426 Amortization of purchased intangible assets 119 117 118 Acquisition and asset sale related costs 14 (99 ) 130 Restructuring charges 31 384 227 Gain on asset sale - (193 ) (2,000 ) Total operating expenses 25,826 26,592 30,377 Loss from operations (16,644 ) (10,906 ) (11,874 ) Interest income 93 57 73 Interest expense (708 ) (619 ) (137 ) Other income (expense), net (349 ) (93 ) 249 Total interest and other income (expense), net (964 ) (655 ) 185 Loss before income taxes (17,608 ) (11,561 ) (11,689 ) Income tax (provision) benefit (638 ) (2,722 ) 167 Net loss $ (18,246 ) $ (14,283 ) $ (11,522 ) Basic net loss per share $ (0.41 ) $ (0.32 ) $ (0.27 ) Diluted net loss per share $ (0.41 ) $ (0.32 ) $ (0.27 ) Weighted average shares used to compute basic net loss per share 44,259 44,079 42,615 Weighted average shares used to compute diluted net loss per share 44,259 44,079 42,615 (1) Includes stock-based compensation expense as follows for the periods presented: Cost of goods sold $ 650 $ 287 $ 147 Research and development 773 712 662 Sales and marketing 938 527 464 General and administrative 986 988 599 Total stock-based compensation expense $ 3,347 $ 2,514 $ 1,872 NeoPhotonics Corporation Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (In thousands, except percentages and per share data) Three Months Ended Mar. 31,
2018
Dec. 31,
2017
Mar. 31,
2017
NON-GAAP GROSS PROFIT: GAAP gross profit $ 9,182 $ 15,686 $ 18,503 Stock-based compensation expense 650 287 147 Amortization of purchased intangible assets 203 203 262 Depreciation of acquisition-related fixed asset step-up (69 ) (68 ) (66 ) Restructuring charges 92 248 39 Non-GAAP gross profit $ 10,058 $ 16,356 $ 18,885 Non-GAAP gross margin as a % of revenue 14.7 % 21.3 % 26.3 % NON-GAAP TOTAL OPERATING EXPENSES: GAAP total operating expenses $ 25,826 $ 26,592 $ 30,377 Stock-based compensation expense (2,697 ) (2,227 ) (1,725 ) Amortization of purchased intangible assets (119 ) (117 ) (118 ) Depreciation of acquisition-related fixed asset step-up (67 ) (69 ) (73 ) Acquisition and asset sale related costs (14 ) 99 (130 ) Restructuring charges (31 ) (384 ) (227 ) Litigation - - 64 Gain on asset sale - 193 2,000 Non-GAAP total operating expenses $ 22,898 $ 24,087 $ 30,168 Non-GAAP total operating expenses as a % of revenue 33.4 % 31.3 % 42.1 % NON-GAAP OPERATING LOSS: GAAP loss from operations $ (16,644 ) $ (10,906 ) $ (11,874 ) Stock-based compensation expense 3,347 2,514 1,872 Amortization of purchased intangible assets 322 320 380 Depreciation of acquisition-related fixed asset step-up (2 ) 1 7 Acquisition and asset sale related costs 14 (99 ) 130 Restructuring charges 123 632 266 Litigation - - (64 ) Gain on asset sale - (193 ) (2,000 ) Non-GAAP loss from operations $ (12,840 ) $ (7,731 ) $ (11,283 ) Non-GAAP operating margin as a % of revenue (18.7 )% (10.1 )% (15.7 )% NeoPhotonics Corporation Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (Continued) (In thousands, except percentages and per share data) Three Months Ended Mar. 31,
2018
Dec. 31,
2017
Mar. 31,
2017
NON-GAAP NET LOSS: GAAP net loss $ (18,246 ) $ (14,283 ) $ (11,522 ) Stock-based compensation expense 3,347 2,514 1,872 Amortization of purchased intangible assets 322 320 380 Depreciation of acquisition-related fixed asset step-up (2 ) 1 7 Acquisition and asset sale related costs 14 (99 ) 130 Restructuring charges 123 632 266 Litigation - - (64 ) Gain on asset sale - (193 ) (2,000 ) Income tax effect of Non-GAAP adjustments (126 ) (637 ) 189 Non-GAAP net loss $ (14,568 ) $ (11,745 ) $ (10,742 ) Non-GAAP net loss as a % of revenue (21.2 )% (15.3 )% (15.0 )% ADJUSTED EBITDA: GAAP net loss $ (18,246 ) $ (14,283 ) $ (11,522 ) Stock-based compensation expense 3,347 2,514 1,872 Amortization of purchased intangible assets 322 320 380 Depreciation of acquisition-related fixed asset step-up (2 ) 1 7 Acquisition and asset sale related costs 14 (99 ) 130 Restructuring charges 123 632 266 Litigation - - (64 ) Gain on asset sale - (193 ) (2,000 ) Interest expense, net 615 562 64 Provision (benefit) for income taxes 638 2,722 (167 ) Depreciation expense 7,686 7,402 5,798 Adjusted EBITDA $ (5,503 ) $ (422 ) $ (5,236 ) Adjusted EBITDA as a % of revenue (8.0 )% (0.5 )% (7.3 )% BASIC AND DILUTED NET LOSS PER SHARE: GAAP basic net loss per share $ (0.41 ) $ (0.32 ) $ (0.27 ) GAAP diluted net loss per share $ (0.41 ) $ (0.32 ) $ (0.27 ) Non-GAAP basic net loss per share $ (0.33 ) $ (0.27 ) $ (0.25 ) Non-GAAP diluted net loss per share $ (0.33 ) $ (0.27 ) $ (0.25 ) - SHARES USED TO COMPUTE GAAP AND NON-GAAP BASIC NET LOSS PER SHARE 44,259 44,079 42,615 SHARES USED TO COMPUTE GAAP DILUTED NET LOSS PER SHARE 44,259 44,079 42,615 SHARES USED TO COMPUTE NON-GAAP DILUTED NET LOSS PER SHARE 44,259 44,079 42,615
View source version on businesswire.com : https://www.businesswire.com/news/home/20180508006505/en/
NeoPhotonics Corporation
Beth Eby, +1-408-895-6086
Chief Financial Officer
[email protected]
or
Sapphire Investor Relations, LLC
Erica Mannion, +1-617-542-6180
Investor Relations
[email protected]
Source: NeoPhotonics Corporation | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/08/business-wire-neophotonics-reports-first-quarter-2018-financial-results.html |
April 30 (Reuters) - AL-WATANIAH TOWERS:
* Q1 NET INCOME AFTER TAX $269,836 VERSUS $142,526 YEAR AGO Source: ( bit.ly/2Fs5JaG ) Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-palestines-al-wataniah-towers-q1-p/brief-palestines-al-wataniah-towers-q1-profit-rises-idUSL3N1S72JK |
May 30, 2018 / 8:10 AM / Updated an hour ago Thailand is new dumping ground for world's high-tech trash, police say Amy Sawitta Lefevre , Juarawee Kittisilpa 3 Min Read
BANGKOK (Reuters) - Thailand is a new dumping ground for scrap electronics from around the world, say police and environmentalists, the latest country to feel the impact of China’s crackdown on imports of high-tech trash.
Police at Laem Chabang port, south of Bangkok, showed on Tuesday seven shipping containers each packed with about 22 tonnes of discarded electronics, including crushed game consoles, computer boards and bags of scrap materials.
Electronic refuse, or e-waste, is turning up from Hong Kong, Singapore and Japan, police said, some of it imported by companies without the required permits.
“This ... shows that electronic waste from every corner of the world is flowing into Thailand,” Deputy Police Chief Wirachai Songmetta said as he showed the containers to the media.
While “e-waste” — defined as any device with an electric cord or battery - can be “mined” for valuable metals such as gold, silver and copper, it can include hazardous material such as lead, mercury and cadmium.
Police said they filed charges against three recycling and waste processing companies in Thailand. Anyone found guilty could be jailed for up to 10 years.
“The companies that we have filed charges against don’t have a quota to import even a single ton of electronic waste,” Wirachai said.
China imposed a ban on overseas trash last year, telling the World Trade Organization (WTO) that it would stop accepting imports on 24 types of foreign waste, leading some to fear that the waste could end up in neighbouring countries. Blocks of electronic waste hidden in a freight container are seen during a search at Leam Chabang industrial estate, Chonburi province, Thailand, May 29, 2018. Picture taken May 29, 2018. REUTERS/Athit Perawongmetha
The ban has upended the world’s waste handling supply chain and caused massive pile-ups of trash from Asia to Europe, as exporters struggled to find new buyers for the garbage.
According to estimates in China’s state media last year, more than 70 percent of the world’s 500 million tonnes of electronic waste entered China in 2016.
Environmentalists say waste once destined for China is being re-routed to Southeast Asia, and new laws are needed or existing laws better enforced to prevent illegal imports.
“Especially after China’s ban, Thailand could become one of the biggest dumping grounds for e-waste,” said Penchom Saetang, director of Ecological Alert and Recovery Thailand (EARTH).
Thailand ratified in 1997 the Basel Convention, which aims to control trans-boundary movements of hazardous waste. But the convention does not completely prohibit these exports from more developed to less developed countries.
“The Basel Convention cannot prevent what is happening in Thailand because it has its limitations,” Penchon said in calling for an amendment that would ban these shipments. Slideshow (8 Images)
Thai Prime Minister Prayuth Chan-ocha vowed this week to step up nationwide inspections as part of a plan to combat illegal electronic waste. But environmentalists say they have not seen the details of how it will work.
“It isn’t clear how he will do this,” said Penchom. Reporting by Amy Lefevre and Juarawee Kittisilpa; Additionnal reporting by Athit Perawongmetha; Editing by Darren Schuettler | ashraq/financial-news-articles | https://in.reuters.com/article/thailand-pollution-ewaste/thailand-is-new-dumping-ground-for-worlds-high-tech-trash-police-say-idINKCN1IV0U4 |
May 14, 2018 / 6:49 AM / Updated 16 minutes ago Israeli forces kill dozens in Gaza as U.S. Embassy opens in Jerusalem Nidal al-Mughrabi , Jeffrey Heller 8 Min Read
GAZA/JERUSALEM (Reuters) - Israeli troops shot dead dozens of Palestinian protesters on the Gaza border on Monday as the United States opened its embassy to Israel in Jerusalem, a move that has fueled Palestinian anger and drawn foreign criticism that it undermines peace efforts.
It was the bloodiest single day for Palestinians since the Gaza conflict in 2014. Palestinian Health Ministry officials said 55 protesters were killed and 2,700 injured either by live gunfire, tear gas or other means.
The bloodshed drew calls for restraint from some countries, including France and Britain, and stronger criticism from others, with Turkey calling it “a massacre”.
The White House declined to join in urging Israel to exercise restraint and pinned the blame squarely on Gaza’s ruling Hamas group - backing Prime Minister Benjamin Netanyahu, who described the Israeli military’s actions as self-defense of his country’s borders.
In contrast to the scenes in Gaza, Israeli dignitaries and guests attended a ceremony in Jerusalem to open the U.S. Embassy following its relocation from Tel Aviv.
The move fulfilled a pledge by U.S. President Donald Trump, who in December recognized the holy city as the Israeli capital.
Netanyahu thanked Trump for “having the courage to keep your promises”.
“What a glorious day for Israel,” he said in a speech. “We are in Jerusalem and we are here to stay.”
Palestinians seek East Jerusalem as the capital of a state they hope to establish in the occupied West Bank and the Gaza Strip.
Israel regards all of the city, including the eastern sector it captured in the 1967 Middle East war and annexed in a move that is not recognized internationally, as its “eternal and indivisible capital”.
Most countries say the status of Jerusalem - a sacred city to Jews, Muslims and Christians - should be determined in a final peace settlement and that moving their embassies now would prejudge any such deal.
Peace talks aimed a finding a two-state solution to the conflict have been frozen since 2014.
Trump, in a recorded message, said he remained committed to peace between Israel and the Palestinians. He was represented at the ceremony by his daughter Ivanka and his son-in-law Jared Kushner, U.S. envoy to the Middle East. Related Coverage Netanyahu calls Israeli actions in Gaza self-defense against Hamas
Kushner said it was possible for both sides in the Israeli-Palestinian conflict to gain more than give in any peace deal. “Jerusalem must remain a city that brings people of all faiths together,” he said in a speech.
But Palestinian President Mahmoud Abbas said the United States had opened an “American settlement outpost in East Jerusalem”. He called the deaths in Gaza a massacre and announced a general strike on Tuesday.
South Africa said it was withdrawing its ambassador to Israel until further notice following what it called the “indiscriminate and grave” attack on Monday. BORDER BLOODSHED
In Gaza, Palestinian protests quickly turned into bloodshed. Tens of thousands had streamed to the edge of the coastal enclave’s land border, some approaching the Israeli fence.
“Today is the big day when we will cross the fence and tell Israel and the world we will not accept being occupied forever,” said Gaza science teacher Ali, who declined to give his last name.
Clouds of black smoke from tyres set alight by demonstrators rose in the air. Demonstrators, some armed with slingshots, hurled stones at the Israeli security forces, who fired volleys of tear gas and intense rounds of gunfire.
The protests are scheduled to culminate on Tuesday, the day Palestinians mourn as the “Nakba” or “Catastrophe” when, in 1948, hundreds of thousands of them were driven out of their homes or fled the fighting around Israel’s creation.
Netanyahu took to Twitter to direct the blame at Hamas.
“Every country has an obligation to defend its borders,” he wrote. “The Hamas terrorist organization declares it intends to destroy Israel and sends thousands to breach the border fence in order to achieve this goal. We will continue to act with determination to protect our sovereignty and citizens.”
Hamas denied instigating the violence, but the White House backed Netanyahu. “The responsibility for these tragic deaths rests squarely with Hamas. Hamas is intentionally and cynically provoking this response,” White House spokesman Raj Shah told a regular news briefing. A female Palestinian demonstrator gestures during a protest against U.S. embassy move to Jerusalem and ahead of the 70th anniversary of Nakba, at the Israel-Gaza border, east of Gaza City May 14, 2018. REUTERS/Mohammed Salem
The Israeli military said in a statement: “Rioters hurled firebombs and explosive devices at the security fence and Israeli troops”. The soldiers’ response, it said, was in accordance with “standard operating procedures”.
The 55 deaths included at least six people under 18 years of age, including one girl. The total number of fatalities since a series of protests to demand Palestinians’ right to return to their ancestral homes in Israel is now 100.
They also included a medic and a man in a wheelchair who had been pictured on social media using a slingshot. The Israeli military said three of those killed were armed militants who tried to place explosives near the fence.
Throughout the day sirens of ambulance vehicles carrying casualties to hospitals wailed almost non-stop. In Gaza mosques, loudspeakers mourned the dead, who were carried for burial in funeral marches. RESTRAINT
Trump’s recognition of contested Jerusalem as Israel’s capital in December outraged Palestinians, who said the United States could no longer serve as an honest broker in any peace process with Israel.
A senior Hamas leader, Khalil Al-Hayya, said at a border encampment that Monday’s protest was timed to coincide with the “deplorable crime of moving the U.S. Embassy to Jerusalem”.
He said: “Our people went out today to respond to this new Zionist-American aggression, and to draw by their blood the map of their return.”
France and Britain called on Israel to show restraint, with French President Emmanuel Macron planning to talk to all involved parties in the region over the next few days. U.N. Secretary-General Antonio Guterres said he was “deeply concerned” by the events in Gaza and said it showed the need for a two-state political solution.
Britain said it had no plans to move its Israel embassy from Tel Aviv to Jerusalem and it disagreed with the U.S. decision to do so. French Foreign Minister Jean-Yves Le Drian said the U.S. move flouted international law.
Other responses to the violence were stronger. Regional power Turkey accused Israeli security forces of carrying out a massacre and said the U.S. Embassy move had encouraged them.
More than 2 million people are crammed into the narrow Gaza strip, which is blockaded by Egypt and Israel.
“The policy of Israeli authorities to fire irrespective of whether there is an immediate threat to life on Palestinian demonstrators in Gaza, caged in for a decade and under occupation for a half century, has resulted in a bloodbath that anyone could have foreseen,” Human Rights Watch said. Slideshow (12 Images)
The Trump administration says it has nearly completed a new Israeli-Palestinian peace plan but is undecided on how and when to roll it out.
Palestinian Prime Minister Rami Hamdallah, in a statement on Monday, accused the United States of “blatant violations of international law”.
“Choosing a tragic day in Palestinian history (to open the Jerusalem embassy) shows great insensibility and disrespect for the core principles of the peace process,” Hamdallah wrote. Additonal reporting by Alex Winning, Steve Holland, Yara Bayoumy, Doina Chiacu and Ori Lewis; Writing by Jeffrey Heller; Editing by Angus MacSwan, Janet Lawrence, Nick Tattersall and David Stamp | ashraq/financial-news-articles | https://www.reuters.com/article/us-israel-usa-protests-palestinians/israeli-military-drops-warning-leaflets-into-gaza-as-border-protests-build-idUSKCN1IF0M8 |
39 Mins Ago | 08:36
Tech investor Tim Draper called Facebook founder and CEO Mark Zuckerberg a "total hero" Thursday and said the government is "trying to beat [Facebook] down."
"I think it's a huge mistake because Zuckerberg should be a model, an icon, somebody that we should all be looking up to and aspiring to be," Draper told CNBC's "Closing Bell."
"This schadenfreude government is not appropriate — it's not the right approach."
Zuckerberg has faced harsh criticism in recent months for what some claim is failure to control the beast he created.
After reports revealed that political research firm Cambridge Analytica was able to access personal Facebook information of up to 87 million without their permission, the company has faced government probes and widespread concerns around user privacy and data collection. But Draper thinks Facebook is being unfairly "picked on."
"The point is to put your data up there and he's giving it to you for free, and so he sells ads against it and he uses the data," Draper said. "So what?"
Facebook, for its part, has admitted it failed to adequately curtail abuse of its systems and has made changes to its policies and advertising systems.
Zuckerberg has repeatedly said he takes personal responsibility and vowed to be more hands on with the data policies. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/10/vc-tim-draper-icons-like-mark-zuckerberg-shouldnt-be-picked-on.html |
May 1, 2018 / 10:51 PM / in 19 hours Kanye West sounds off on slavery, his opioid addiction and Trump Reuters Staff 3 Min Read
LOS ANGELES (Reuters) - Rapper Kanye West on Tuesday described slavery as a choice, praised Donald Trump for doing “the impossible” by becoming U.S. president, and attributed his 2016 mental breakdown to opioid addiction. FILE PHOTO: U.S. President-elect Donald Trump and musician Kanye West pose for media at Trump Tower in Manhattan, New York, U.S., December 13, 2016. REUTERS/Andrew Kelly/File Photo
In the latest in a series of startling interviews, tweets and videos, West, 40, also revealed he had undergone liposuction some years ago because he did not want to be called fat.
The Grammy Award-winning musician’s most controversial comments came in a rambling video interview at the Southern California offices of celebrity website TMZ.com.
West emerged from a year’s silence on Twitter two weeks ago to post up to 20 tweets an hour on topics ranging from politics, to philosophy and fashion.
At one point in the TMZ interview, shown on its website, West says, “When you hear about slavery for 400 years. For 400 years? That sounds like a choice.”
Amid a social media outcry, West later said on Twitter, “Of course I know that slaves did not get shackled and put on a boat by free will. My point is for us to have stayed in that position even though the numbers were on our side means that we were mentally enslaved.”
The civil rights group NAACP said in a Twitter response addressed to West, “There is a lot of misinformation out there and we are happy to provide insight. Black people have fought against slavery since we first landed on this continent.” FILE PHOTO: Rapper Kanye West arrives at the 2016 MTV Video Music Awards in New York, NY, U.S., August 28, 2016. REUTERS/Eduardo Munoz/File Photo
On Tuesday, the “Jesus Walks” singer also gave the first details of his November 2016 admission to a Los Angeles psychiatric hospital after a series of curtailed concerts and political rants.
“I was drugged out,” he said in the TMZ interview. “Two days before I was taken to the hospital I was on opioids. I was addicted to opioids.”
He said he was given painkillers after undergoing previously unreported liposuction surgery, adding, “I got liposuction, because I didn’t want y’all to call me fat.”
In separate video released on Tuesday to match his new single “Ye vs. the People,” West discussed the support he voiced for Trump last week, which caused controversy among many of his fans.
Asked what he admired about Trump, West told fellow rapper T.I., “the ability to do what no one said you can do, to do the impossible.”
In the single, West raps lines like “Make America Great Again had a negative perception/I took it, wore it, rocked it, gave it a new direction.” Reporting by Jill Serjeant in Los Angeles; Editing by Matthew Lewis and Lisa Shumaker | ashraq/financial-news-articles | https://www.reuters.com/article/us-people-kanye-west/kanye-west-sounds-off-on-slavery-trump-and-his-opioid-addiction-idUSKBN1I24JG |
(Reuters) - Private equity firm Lantern Capital is nearing a deal to acquire the Weinstein Company, the TV and film studio that filed for bankruptcy after its co-founder Harvey Weinstein was accused of sexual assault, with a $310 million offer, people familiar with the matter said.
FILE PHOTO - Producer Harvey Weinstein speaks at the ceremony for the unveiling of the star for Italian composer Ennio Morricone on the Hollywood Walk of Fame in Hollywood, California February 26, 2016. REUTERS/Mario Anzuoni Hollywood trade paper Variety also reported, citing sources, that a second buyer submitted a late bid for the company on Tuesday.
The Weinstein Company filed for bankruptcy in March with the offer from Lantern Capital in hand as a so-called stalking horse bidder.
It had hoped to get better offers from other suitors, but no higher bid for the entire company emerged by a deadline set in a bankruptcy auction for Monday, the sources said.
It remains likely that Lantern will end up owning the company, but it is not a done deal yet, Variety reported.
There were some offers for parts of the company that were not accepted, one of the sources added.
The sources asked not to be identified ahead of an official announcement. The Weinstein Company declined to comment, while Lantern did not respond to a request for comment.
Hollywood trade publication Deadline Hollywood first reported earlier on Monday that Lantern was the winning bidder for the Weinstein Company.
The deal, which is subject to approval by a U.S. bankruptcy judge, would be the culmination of efforts by the Weinstein Company over several months to find a buyer.
When the allegations against Harvey Weinstein became public in October, the company’s board fired him, and Hollywood heavyweights distanced themselves from the studio.
Combined with lawsuits filed by Harvey Weinstein’s victims, the company was an unappealing acquisition target.
An offer for the studio from a group of investors led by former Obama administration official Maria Contreras-Sweet failed to produce a deal earlier this year, after New York Attorney General Eric Schneiderman filed a civil lawsuit against the company and demanded more compensation for Harvey Weinstein’s victims.
Following Schneiderman’s intervention, Contreras-Sweet’s offer was tweaked to include an $80 million to $90 million compensation fund that would supplement any insurance payouts victims would receive.
Harvey Weinstein, once one of Hollywood’s most influential men, has been accused of sexual misconduct including rape by more than 70 women.
He has denied having non-consensual sex with anyone. It is unclear how much money his alleged victims will receive should the deal with Lantern go through.
Co-founded with Bob Weinstein, Harvey’s brother, the Weinstein Company produced and distributed critically acclaimed hits including “The King’s Speech” and “Silver Linings Playbook,” as well as TV’s fashion reality competition “Project Runway.”
With its bankruptcy filing, the Weinstein Company said it released anyone “who suffered or witnessed any form of sexual misconduct by Harvey Weinstein” from nondisclosure agreements, contracts that prevented victims from speaking out.
As part of the deal, Lantern will acquire Weinstein’s prized asset, its library of 277 feature films that have generated over $2 billion in aggregate box office receipts worldwide.
Based in Dallas, Texas, Lantern is a buyout firm founded by Andy Mitchell, the former head of Ally Financial’s global special assets group.
Reporting by Jessica DiNapoli in New York; Additional reporting by Tom Hals in Wilmington, Delaware and Diptendu Lahiri in Bengaluru; Editing by Paul Simao and Arun Koyyur
| ashraq/financial-news-articles | https://www.reuters.com/article/us-weinsteinco-m-a-lanterncapital/weinstein-company-set-to-be-taken-over-by-lantern-capital-sources-idUSKBN1I22RS |
TORONTO, May 02, 2018 (GLOBE NEWSWIRE) -- Profound Medical Corp. (TSX-V:PRN) (OTCQX:PRFMF) (“Profound” or the “Company”), the only company to offer a therapeutic platform that provides the precision of real-time MR imaging combined with the safety and accuracy of directional (inside-out) and focused (outside-in) ultrasound technology for incision-free ablation of diseased tissue, will announce its first quarter 2018 financial results after market close on Thursday, May 10, 2018.
Profound management will host a conference call at 4:30 p.m. ET to review the financial results and discuss business developments in the period.
First Quarter 2018 Results Conference Call Details:
Date: Thursday, May 10, 2018 Time: 4:30 p.m. ET Live Call: 1-877-407-9210 (Canada and the United States) 1-201-689-8049 (International) Replay: 1-877-481-4010 (Canada and the United States) Replay ID: 29074 The call will also be broadcast live and archived on the Company's website at profoundmedical.com under "Investor Presentations" in the Investor Relations section.
About Profound Medical Corp.
The Profound Medical team is committed to creating the powerful combination of real-time MR-guidance as the imaging platform and ultrasound as the energy source for delivering non-invasive ablative tools to clinicians. These key technology pillars, linked with intelligent software and robotics, have the potential to fulfill unmet needs of patients and clinicians in many anatomies and disease states, including prostate cancer, uterine fibroids, and bone metastases. Our mission is to profoundly change the standard of care by creating a tomorrow where clinicians can confidently ablate tissue with precision; a tomorrow where patients have access to safe and effective treatment options, so they can quickly return to their daily lives.
Profound Medical is commercializing a novel technology, TULSA-PRO ® , which combines real-time Magnetic Resonance Imaging with transurethral, robotically-driven therapeutic ultrasound and closed-loop thermal feedback control that is designed to provide precise ablation of the prostate while simultaneously protecting critical surrounding anatomy from potential side effects. TULSA-PRO ® is CE marked and Profound Medical is currently conducting a pilot commercial launch of the technology in key European and other CE mark jurisdictions. The Company is also sponsoring a multicenter, prospective FDA-registered clinical trial, TACT, which, if successful, is expected to support its application to the FDA for clearance to market TULSA-PRO ® in the United States.
Profound Medical is also commercializing Sonalleve ® , an innovative therapeutic platform that combines real-time MR imaging and thermometry with thermal ultrasound to enable precise and incision-free ablation of diseased tissue. Sonalleve ® is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases. The Company is also in the early stages of exploring additional potential treatment markets for Sonalleve ® , such as non-invasive ablation of abdominal cancers and hyperthermia for cancer therapy, where the technology has been shown to have clinical application.
Forward-Looking Statements
This release includes forward-looking statements regarding Profound and its business which may include, but is not limited to, the expectations regarding the efficacy of Profound’s technology in the treatment of prostate cancer, uterine fibroids and palliative pain treatment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Profound. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the pharmaceutical industry, economic factors, the equity markets generally and risks associated with growth and competition. Although Profound has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Profound undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange), nor the OTCQX accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Stephen Kilmer
Investor Relations
[email protected]
T: 647.872.4849
Or
Aaron Davidson
Chief Financial Officer and Senior Vice-President of Corporate Development
T: 647.476.1350
Source:Profound Medical Corp. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/02/globe-newswire-profound-medical-to-release-first-quarter-2018-financial-results-on-may-10-2018-a-conference-call-to-follow.html |
May 2, 2018 / 9:38 AM / Updated 33 minutes ago BRIEF-Nova Reports Q1 Non-GAAP EPS Of $0.54 Reuters Staff
May 2 (Reuters) - Nova Measuring Instruments Ltd: * NOVA REPORTS FIRST QUARTER 2018 RESULTS
* Q1 NON-GAAP EARNINGS PER SHARE $0.54 * Q1 REVENUE ROSE 15 PERCENT TO $62.6 MILLION
* SAYS EXPECTS $57 MILLION TO $63 MILLION IN REVENUE FOR Q2 2018 * SEES Q2 2018 GAAP EARNINGS PER SHARE $0.30 TO $0.40
* SEES Q2 2018 NON-GAAP EARNINGS PER SHARE $0.35 TO $0.45 Source text for Eikon: Further company coverage: | ashraq/financial-news-articles | https://www.reuters.com/article/brief-nova-reports-q1-non-gaap-eps-of-05/brief-nova-reports-q1-non-gaap-eps-of-0-54-idUSASC09YVN |
Roku shares have given up their earlier gains, trading roughly one percent down Thursday, a day after an earnings beat revealed strong ad revenue.
Shares were trading as much as 7 percent higher in the morning. The streaming company saw its highest open in nearly two months.
By midday shares had fallen below $36.
On Wednesday, Roku reported a smaller-than-expected loss in the first quarter and posted higher revenue from its streaming platform than from the sale of its physical devices — indicating the company's advertising push is so far paying off.
The stock has seen a number of big moves since hitting the public markets last year . The company's single best day came in November after its first-ever earnings report, when shares rose nearly 55 percent.
Roku jumped nearly 9 percent Wednesday in anticipation of the first quarter report, but the stock was still down 30 percent on the year. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/10/roku-roku-set-to-open-higher-after-earnings.html |
WESTPORT, Conn.--(BUSINESS WIRE)-- Intensity Therapeutics, Inc. , a privately held biotechnology company developing proprietary cancer immune-based drug products for direct intratumoral injection, today announced that Mark A. Goldberg, MD has been appointed to the Company's Board of Directors effective May 1, 2018.
Dr. Mark A. Goldberg recently served as president and COO of PAREXEL International, one of the world’s largest global biopharmaceutical service providers, with consolidated service revenue of approximately $2.1B, over 18,000 employees, and 86 locations in 51 countries. He was responsible for overseeing all revenue generating business segments including Clinical Research Services, PAREXEL Informatics, and PAREXEL Consulting as well as sales, marketing, corporate quality, and information technology. Dr. Goldberg helped to pioneer PAREXEL’s strategic partnering approach with some of the world’s leading pharmaceutical companies and to build out the company’s global infrastructure, particularly in the Asia Pacific region, through both organic growth and acquisitions. Earlier in his PAREXEL career, he founded the company’s medical imaging business and helped establish its technology subsidiary, Perceptive Informatics (now PAREXEL Informatics).
Dr. Goldberg holds a BS degree in computer science from MIT and an MD from the University of Massachusetts Medical School. He completed residency training in radiology at Massachusetts General Hospital, where he also served as chief resident and a staff physician with academic appointments at Harvard Medical School.
“We are very pleased to welcome Mark to our board,” said Intensity Therapeutics’ President and CEO Lewis H. Bender . “Intensity will benefit greatly from his broad industry knowledge, operational experience, and medical imaging expertise. We look forward to the contributions and insights Mark will offer the Company as we continue the clinical development of our lead product, INT230-6, grow our business and advance through the regulatory process.”
“I am delighted to be joining the Board of Intensity Therapeutics,” said Dr. Mark A. Goldberg. “The data generated to date in the clinical study IT-01 for the Company’s lead anti-cancer product is encouraging. The potential to attenuate tumors and activate the immune system offers exciting possibilities. I look forward to working with the Company and the other Board members to help advance this promising new cancer treatment approach.”
About INT230-6
INT230-6 is a novel, anti-cancer drug for direct intratumoral injection. The product contains potent anti-cancer agents that disperse throughout tumors and diffuse into cancer cells. INT230-6 was identified from Intensity’s DfuseRx SM platform and is being evaluated in a clinical trial; IT-01. In preclinical studies INT230-6 administration eradicated tumors by a combination of direct tumor kill coupled with recruitment of dendritic cells to the tumor micro-environment that induced anti-cancer T-cell activation. Treatment with INT230-6 in in vivo models of severe cancer resulted in substantial improvement in overall survival compared to standard therapies. Further, INT230-6 provided complete responder animals with long-term, durable protection from multiple re-inoculations of the initial cancer and resistance to other cancers.
About Study IT-01
IT-01 is entitled A Phase 1/2 Safety Study of Intratumorally Administered INT230-6 in Adult Subjects with Advanced Refractory Cancers. The trial aims to enroll approximately 60 patients with different types advanced solid tumor malignancies in a multicycle dosing regimen. The study will be conducted in multiple countries and includes a cohort combining INT230-6 with an anti-PD-1 antibody. Currently the study is recruiting in the U.S. and in Canada. The study’s primary objective is to assess the safety and tolerability of multiple intratumoral doses of INT230-6. Secondary assessments are to understand preliminary efficacy of INT230-6 by measuring the injected and bystander tumor responses. The study will characterize the systemic pharmacokinetic profile of multiple doses of INT230-6’s drug substances after single and then multiple intratumoral injections. Exploratory analysis will characterize patient outcome, as well as evaluate various tumor and anti-tumor immune response biomarkers that may correlate with response. The trial includes several adaptive components that will allow for adjustments in patient groups, dosing schedule and dose volumes administered. Data will be used to assess the progression free and overall survival in subjects receiving INT230-6. Further information can be found at www.clinicaltrials.gov (NCT#03058289).
About Intensity Therapeutics, Inc.
Intensity Therapeutics, Inc. is a clinical-stage biotechnology company whose mission is to greatly extend the lives of patients with cancer. Intensity Therapeutics is pioneering a new immune-based approach to treat cancer. The Company uses its DfuseRx SM platform technology to create new drug formulations that following direct injection rapidly disperse throughout a tumor and diffuse therapeutic agents into cancer cells. Drug products created using the technology are capable of attenuating (killing) a tumor in a manner that allows for the adaptive immune system to recognize the cancer and attack distal tumors and micrometastases. Further information can be found at www.intensitytherapeutics.com .
Forward-Looking Statements
This press release contains forward-looking statements regarding Intensity Therapeutics’ plans, future operations and objectives. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual performance or achievements to be materially different from those currently anticipated. These forward-looking statements include, among other things, statements about the initiation and timing of future clinical trials.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180501006017/en/
Intensity Therapeutics, Inc.
Lewis Bender, 203-221-7377
President & CEO
[email protected]
Source: Intensity Therapeutics, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/01/business-wire-mark-a-goldberg-md-joins-intensity-therapeutics-inc-board-of-directors.html |
May 7 (Reuters) - Pacific Textiles Holdings Ltd:
* UPDATES ON INTERRUPTION OF BUSINESS OF FACTORY IN VIETNAM
* AS OF APRIL 2018, FACTORY’S PRODUCTION CAPACITY REACHED ABOUT 25% TO 30% OF DESIGNED CAPACITY
* FACTORY COMMENCED LIMITED PRODUCTION SINCE JAN 2018 ; VIEWS TO REACH ITS FULL CAPACITY BY END OF 2018 Source text for Eikon:
Our | ashraq/financial-news-articles | https://www.reuters.com/article/brief-pacific-textiles-updates-on-interr/brief-pacific-textiles-updates-on-interruption-of-business-of-factory-in-vietnam-idUSFWN1SD04G |
May 14 (Reuters) - Rio2 Ltd:
* RIO2 LIMITED ANNOUNCES $10 MILLION BOUGHT DEAL PRIVATE PLACEMENT
* RIO2 LTD - ENTERED INTO AN AGREEMENT WITH CLARUS SECURITIES INC. AND RAYMOND JAMES LTD.
* RIO2 LTD - UNDERWRITERS AGREED TO BUY FOR RESALE 10 MILLION SUBSCRIPTION RECEIPTS AT A PRICE OF $1.00 PER SUBSCRIPTION RECEIPT Source text for Eikon: Further company coverage:
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© 2018 Reuters. All Rights Reserved. | ashraq/financial-news-articles | https://www.reuters.com/article/brief-rio2-ltd-announces-10-mln-bought-d/brief-rio2-ltd-announces-10-mln-bought-deal-private-placement-idUSASC0A1XT |
May 2, 2018 / 8:17 PM / Updated 17 minutes ago Spotify operating loss narrows in first quarterly report Reuters Staff 2 Min Read
LONDON (Reuters) - Spotify Technology ( SPOT.N ) on Wednesday posted quarterly revenue in line with its recent outlook and sharply lower operating losses in the music streaming leader’s first financial report as a publicly traded company. FILE PHOTO: A trader is reflected in a computer screen displaying the Spotify brand before the company begins selling as a direct listing on the floor of the New York Stock Exchange in New York, U.S., April 3, 2018. REUTERS/Lucas Jackson/File Photo
The Swedish company, which began trading in an unorthodox public stock offering a month ago, reported a first-quarter operating loss of 41 million euros, a 55 percent improvement over the fourth quarter and 71 percent better than a year ago.
Revenue for the latest quarter was 1.139 billion euros ($1.36 billion), up 26 percent from a year earlier, or 37 percent excluding currency effects. That was broadly in line with the 1.10 billion euros to 1.15 billion euros the company had forecast.
Revenue was just shy of the 1.143 billion euro consensus estimate among 13 analysts tracked by Thomson Reuters I/B/E/S.
Spotify said it had 170 million active monthly users at the end of March, up 30 percent from the year-ago quarter. This included 75 million paying subscribers, up 45 percent year-on-year, from which the company generates the vast majority of its revenue.
The 75 million subscriber figure was slightly above the 74.43 million consensus estimate of analysts polled by Thomson Reuters. Reporting by Eric Auchard in London and Munsif Vengattil in Bengaluru; Additional reporting by Olof Swahnberg and Helena Soderpalm in Stockholm; Editing by Bill Rigby | ashraq/financial-news-articles | https://in.reuters.com/article/spotify-tech-results/spotify-operating-loss-narrows-in-first-quarterly-report-idINKBN1I32TA |
May 13, 2018 / 11:18 AM / Updated 21 minutes ago County Championship Div1 Standings Reuters Staff 1 Min Read May 13 (OPTA) - Standings of the County Championship Div1 on Sunday P W L T Ded RR PTS Nottinghamshire 5 3 2 0 0 70 Lancashire 5 1 2 2 0 51 Somerset 3 2 0 1 0 50 Yorkshire 4 2 1 1 0 48 Hampshire 4 1 2 1 0 39 Surrey 3 1 0 2 0 37 Essex 4 1 1 2 0 37 Worcestershire 4 0 3 1 0 21 Note: Ded-Deductions; RR-Net Run Rate | ashraq/financial-news-articles | https://uk.reuters.com/article/cricket-england-standings/county-championship-div1-standings-idUKMTZXEE5DNZ9FFC |
May 24, 2018 / 8:11 PM / Updated 10 minutes ago Tennis-Cibulkova to face Buzarnescu in Strasbourg semi-finals Reuters Staff 2 Min Read
May 24 (Reuters) - Slovakia’s Dominika Cibulkova beat defending champion Samantha Stosur 6-4 6-3 on Thursday to reach the Strasbourg international semi-finals where she will face fourth seed Mihaela Buzarnescu.
Romanian Buzarnescu beat Taiwan’s Su-Wei Hsieh 6-0 6-3.
Fifth seed Cibulkova hit 21 winners to her 10 unforced errors to oust Australian Stosur in just over 90 minutes to reach her second semi of the season ahead of the French Open.
Top seed Ashleigh Barty is also in the last four for the first time after the Australian beat China’s Wang Qiang 7-5 6-4.
Barty stormed back from a break down in the second set to win the last three games in a row to set up a semi-final clash with third seed Anastasia Pavlyuchenkova of Russia.
“I think it was a very tough match right from the first point,” Barty said. “I felt very clean off the ground today and felt like that was my best match so far this week.”
Pavlyuchenkova saw off Kazakh Zarina Diyas 6-4 6-2 with a disciplined effort, converting all five of her break points.
“It feels great because this season hasn’t been easy for me,” Pavlyuchenkova said. “At the start of the year I was struggling a lot with my shoulder. I still do, but it’s much better.” (Reporting by Simon Jennings in Bengaluru; Editing by Ken Ferris) | ashraq/financial-news-articles | https://uk.reuters.com/article/tennis-strasbourg/tennis-cibulkova-to-face-buzarnescu-in-strasbourg-semi-finals-idUKL5N1SV7NI |
May 2 (Reuters) - AL HAMMADI COMPANY FOR DEVELOPMENT AND INVESTMENT:
* Q1 NET PROFIT 30.9 MILLION RIYALS VERSUS 28 MILLION RIYALS YEAR AGO
* Q1 REVENUE 200.7 MILLION RIYALS VERSUS 180.2 MILLION RIYALS YEAR AGO Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-saudis-al-hammadi-q1-profit-rises/brief-saudis-al-hammadi-q1-profit-rises-idUSFWN1S9013 |
SHANGHAI, May 25, 2018 /PRNewswire/ -- Acorn International, Inc. (NYSE: ATV) ("Acorn" or the "Company") today announced that on May 23, 2018, its board of directors declared a special one-time cash dividend of US$0.75 per ordinary share, or approximately US$14.97 per American depositary share ("ADS"), each of which represents twenty ordinary shares. The aggregate amount of the special cash dividend is approximately US$40 million based on 53,437,890 outstanding ordinary shares which is equal to approximately 2,671,895 ADSs.
Record holders of the Company's ordinary shares at the close of business US Eastern Time on June 4, 2018 (the "Record Date") will be entitled to receive the special cash dividend. The Company expects Citibank N.A., the depositary bank for Acorn's ADS program, to distribute dividends to ADS holders as of the Record Date on or about June 22, 2018. Dividends to be paid to the Company's ADS holders through the ADS Depositary will be subject to the terms of the deposit agreement by and among the Company and the ADS Depositary, and the holders and beneficial owners of ADS issued thereunder, including the fees and expenses payable thereunder.
Acorn has continued to focus on the company turnaround and executing its core strategy of profitably growing its legacy brands, such a Babaka, and its other existing business units, on one hand, and, at the same time, incubating new businesses, such as Acorn Fresh and Acorn Entertainment, on the other hand. It has continued to streamline the business by reducing overhead expenses as well as by selling non-core assets. It is focusing on deploying an "asset light" model for its China operations.
"Our shareholders have repeatedly pointed out the opportunity to unlock value on our balance sheet, create liquidity and return cash to shareholders. In response to this and following the recent sale of our wholly-owned Hong Kong subsidiary Bright Rainbow Investments Limited, and underlying non-core assets, in Q1 this year, our board has approved this return of capital to our shareholders," said Mr. Jacob A. Fisch, CEO and President of Acorn. "Looking ahead, our capital management plan will focus on additional ways to create value for our shareholders while pursuing our core strategy of profitably growing our legacy brands and incubating new businesses."
Acorn's Executive Chairman, Mr. Robert W. Roche commented, "This special cash dividend demonstrates our commitment to maximizing shareholder value, and we believe it is an appropriate way to reward our shareholders for their support."
As of March 31, 2018, the Company had US$18.7 million in cash and equivalents. In April 2018, the Company received approximately US$50 million in net proceeds from the sale of its wholly-owned Hong Kong subsidiary Bright Rainbow Investments Limited, which owns Shanghai HJX Digital Technology Co., Ltd, which owns the land use rights to a plot of land in the Qingpu district of Shanghai, along with the warehouse on that land plot.
About Acorn International, Inc.
Co-founded in 1998 by Executive Chairman Robert Roche, Acorn is a marketing and branding company in China with a proven track record of developing, promoting and selling a diverse portfolio of proprietary-branded products, as well as well-established and promising new products from third parties. Its business is currently comprised of two main divisions, its direct sales platforms and its distribution network. For more information visit www.acorninternationalir.com .
Safe Harbor Statement
This news release contains These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These can be identified by terminology such as "anticipates," "believes," "estimates," "expects," "future," "going forward," "intends," "outlook," "plans," "target," "will," "potential," and similar statements. Such statements are based on management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance, or achievements to differ materially from those in the Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
Contact:
Acorn International, Inc.
Compass Investor Relations
Ms. Margaret Zhao
Ms. Elaine Ketchmere, CFA
Phone: +86-21-5151888
Phone: +1-310-528-3031
Email: [email protected]
Email: [email protected]
www.chinadrtv.com
www.compassinvestorrelations.com
View original content: http://www.prnewswire.com/news-releases/acorn-international-announces-special-one-time-cash-dividend-of-us14-97-per-ads-300654891.html
SOURCE Acorn International, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/25/pr-newswire-acorn-international-announces-special-one-time-cash-dividend-of-us14-point-97-per-ads.html |
Positive Net Revenue Performance
Strong Growth in Reported and Adjusted Operating Profit
NEW YORK--(BUSINESS WIRE)-- Coty Inc. (NYSE:COTY) today announced financial results for the third quarter of fiscal year 2018, ended March 31, 2018.
Results at a glance Three Months Ended March 31, 2018 Nine Months Ended March 31, 2018 Change YoY Change YoY (in millions, except per share data) Reported
Basis
Constant
Currency
Reported
Basis
Combined
Company *
Combined
Company
Constant
Currency *
Net revenues $ 2,222.7 9 % 3 % $ 7,098.6 31 % 10 % 6 % Operating income - reported 19.9 >100
%
223.0 >100% Operating income - adjusted* 227.8 9 % 770.4 13 % Net income - reported (77.0 ) 53 % 12.5 >100
%
Net income - adjusted* 96.2 (13 %) 409.7 (1 %) EPS (diluted) - reported $ (0.10 ) 55 % $ 0.02 >100
%
EPS (diluted) - adjusted* $ 0.13 (13 %) $ 0.54 (19 %) * As compared to combined Coty and P&G Beauty Business net revenues (herein defined as “Combined Company”). These measures, as well as “free cash flow,” are Non-GAAP Financial Measures. Refer to “Basis of Presentation” and “Non-GAAP Financial Measures” for a discussion of these measures. Net Income represents Net Income Attributable to Coty Inc. Reconciliations from reported to adjusted results can be found at the end of this release. Combined Company year-over-year change in net revenues is presented giving effect to the completion of the acquisition of the P&G Beauty Business (the "Merger"), as if the Merger had occurred as of July 1, 2016. Third Quarter Fiscal 2018 Summary
Net revenues of $2,222.7 million increased 9.4% as reported compared to the prior year and increased 3.4% at constant currency Excluding the contribution from the acquisitions of Burberry and one month of Younique, organic net revenues increased 0.2% on a constant currency basis Reported operating income of $19.9 million increased from a loss of $(192.5) million Adjusted operating income of $227.8 million increased 9.4% from $208.3 million Reported net loss of $(77.0) million decreased from $(164.2) million, and adjusted net income of $96.2 million decreased from $110.3 million Reported earnings per diluted share of $(0.10) increased from $(0.22) and adjusted earnings per diluted share of $0.13 decreased from $0.15 Net cash from operating activities was $(118.9) million compared to $43.3 million in the prior year
Nine Months Fiscal 2018 Summary
Net revenues of $7,098.6 million increased 31.2% as reported compared to the prior year net revenues, and increased 6.3% for the combined company at constant currency Excluding the contribution from the acquisitions of Burberry, seven months of Younique and five months of ghd, organic net revenues increased 0.3% on a constant currency basis Reported operating income of $223.0 million increased from $(158.8) million Adjusted operating income of $770.4 million increased from $682.7 million Reported net income of $12.5 million increased from $(117.4) million, and adjusted net income of $409.7 million was in line with the prior period of $411.9 million Reported earnings per diluted share of $0.02 increased from $(0.19), and adjusted earnings per diluted share of $0.54 decreased from $0.67 Net cash provided by operating activities was $188.9 million compared to $706.7 million in the prior year
Commenting on Coty's performance, Camillo Pane, Coty CEO said:
"Our results were generally in line with our expectations, as we delivered steady performance with modest positive organic top line growth and healthy adjusted operating profit improvement. The Luxury division continued to deliver very strong results, while our Professional Beauty division once again demonstrated consistent solid growth. The Consumer Beauty division continued its uneven performance, but with encouraging signs of stability.
We continued to reshape our growth profile by strengthening our iconic global brands, supported by recent relaunches. We are also fueling smaller brands with high growth potential and stabilizing the remaining portfolio including the conclusion of our previously communicated portfolio rationalization program. This streamlining of our portfolio is an important milestone that will allow us to focus on those brands where we believe we are particularly suited to drive long term revenue growth.
Though there is still much work to be done, including the continued integration of the P&G Beauty business, I am encouraged by how far we have come since embarking on our journey to transform Coty into a challenger in the global beauty industry.
As we have said, recovery will not be a straight line, but we continue to aim to deliver modest organic net revenue growth for the second half of the year. For adjusted operating margin, we continue to aim for a healthy improvement in the second half of the year versus the prior year, with most of the impact coming in Q4, as we continue to deliver on our merger synergies."
Basis of Presentation
To supplement financial results presented in accordance with GAAP, certain financial information is presented in this release using the non-GAAP financial measures described in this section. The term “combined company” describes net revenues of Coty Inc. and the P&G Beauty Business giving effect to the Merger for purposes of the nine months ended March 31, 2018, as compared to the nine months ended March 31, 2017, as if it had occurred on July 1, 2016. Combined company period-over-period and combined company constant currency period-over-period do not include any adjustments related to potential profit improvements, potential cost savings or adjustments to fully conform to the accounting policies of Coty. "Constant currency” describes net revenues excluding the effect of foreign currency exchange translations. The term “adjusted” primarily excludes the impact of restructuring and business realignment costs, amortization, costs related to acquisition activities, and certain interest expense and other (income) expense items to the extent applicable. Refer to “Non-GAAP Financial Measures” below for additional discussion of these measures as well as the definition of free cash flow.
Net revenues for the three months ended March 31, 2018, as compared to three months ended March 31, 2017, are reported by segment and geographic region and are presented on a reported (GAAP) and a constant currency basis. Net revenues for the nine months ended March 31, 2018, as compared to nine months ended March 31, 2017, are reported by segment and geographic region and are presented on a reported (GAAP), combined company and combined company constant currency basis. Certain percentages may not agree to the tables due to rounding. Operating income is reported by segment. All changes in margin percentage are described in basis points rounded to the nearest tenth of a percent.
Operating income, net income, operating income margin, gross margin, effective tax rate, and earnings per diluted share (EPS (diluted)) are presented on a reported (GAAP) basis and an adjusted (non-GAAP) basis. Adjusted EPS (diluted) is a performance measure and should not be construed as a measure of liquidity. Net revenues on a constant currency basis, net revenues on a combined company basis, net revenues on a combined company constant currency basis, adjusted operating income, adjusted operating income on a constant currency basis, adjusted operating income margin, adjusted effective tax rate, adjusted net income, adjusted gross margin, adjusted EPS (diluted) and free cash flow are non-GAAP financial measures. Refer to "Non-GAAP Financial Measures" below for additional discussion of these measures. A reconciliation between GAAP and non-GAAP results can be found in the tables and footnotes at the end of this release.
To the extent that Coty provides guidance, it does so only on a non-GAAP basis and does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, amortization expenses, adjustments to inventory, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
Third Quarter Fiscal 2018 Summary Operating Review
Net revenues of $2,222.7 million increased 9.4% as reported compared to the prior year and increased 3.4% on a constant currency basis. The 3.4% constant currency net revenue growth reflected a 3.2% contribution from Burberry Beauty and one month of Younique, and 0.2% increase in organic net revenue growth, which includes two months of Younique. Organic net revenue growth was driven by strong performance in Luxury and steady momentum in Professional Beauty, partially offset by a decline in Consumer Beauty.
Gross margin of 63.4% increased significantly from 59.8% in the prior year, while adjusted gross margin increased 100bps to 64.3% from 63.3% with strength in all three divisions and mainly due to the realization of benefits from our synergy program.
Reported operating income increased to $19.9 million from a loss of $(192.5) million, primarily due to higher gross profit and lower acquisition costs.
Adjusted operating income increased 9.4% to $227.8 million from $208.3 million driven by improved gross margin and tight cost controls, which were partially offset by increased marketing spend to support multiple brand relaunch efforts.
Reported effective tax rate was (7.9)% compared to 36.9%.
Adjusted effective tax rate was 23.8% compared to 22.2%.
Reported net loss decreased to $(77.0) million from $(164.2) million, primarily due to higher operating income partially offset by higher interest and tax expense.
Adjusted net income of $96.2 million decreased from $110.3 million, reflecting increased interest and redeemable non-controlling interest expense, partially offset by higher adjusted operating income.
Cash Flows
Net cash from operating activities in the quarter was $(118.9) million, compared to $43.3 million in the prior year, driven by higher working capital requirements due, in part, to the Burberry Beauty acquisition and build-up of inventory in preparation for consolidation of certain distribution centers. Negative free cash flow of $(205.4) million in the quarter compared to $(82.5) million in the prior year reflects higher cash used in operating activities partially offset by lower capital expenditures. On March 15, 2018, the Company paid a quarterly dividend of $0.125 per share for a total of $93.8 million. Cash and cash equivalents of $460.8 million decreased by $74.6 million compared to June 30, 2017.
Total debt of $7,931.2 million increased by $715.6 million while net debt of $7,470.4 million increased by $790.2 million from the balance on June 30, 2017 driven in part by the acquisition of the Burberry Beauty business.
Third Quarter Fiscal 2018 Business Review by Segment
Three Months Ended March 31, Net Revenues Change Reported Operating
Income
Adjusted Operating
Income
(in millions) 2018 2017 Reported
Basis
Constant
Currency
2018 Change 2018 Change Luxury $ 752.5 $ 634.6 19 % 12 % $ 59.4 (2 %) $ 100.4 17 % Consumer Beauty 1,021.7 988.6 3 % (1 %) 64.2 2 % 97.3 (20 %) Professional 448.5 408.9 10 % 2 % 11.4 >100
%
30.1 >100
%
Corporate — — N/A N/A (115.1 ) 61 % — N/A Total $ 2,222.7 $ 2,032.1 9 % 3 % $ 19.9 >100% $ 227.8 9 %
Luxury
Reported net revenues of $752.5 million increased 18.6% compared to the prior year and 11.8% on a constant currency basis. The increase in constant currency reflects 6.1% organic growth driven by the on-going success of Tiffany & Co. and Gucci Bloom fragrances as well as CK One and Chloe Nomade, and a 5.7% contribution from Burberry. Adjusted operating income of $100.4 million increased 16.6% from $86.1 million in the prior year.
Consumer Beauty
Net revenues of $1,021.7 million increased 3.3% compared to the prior year and decreased (1.2)% on a constant currency basis. The decrease in constant currency reflects a (4.4)% decline in organic growth, which includes two months of Younique. The decline in our organic net revenue growth was driven by certain U.S. brands not yet fully benefiting from relaunch efforts and the impact of pricing actions to improve profitability in our Brazil business, partially offset by growth in the rest of ALMEA. Adjusted operating income decreased 19.9% to $97.3 million from $121.5 million in the prior year.
Professional
Net revenues of $448.5 million increased 9.7% compared to the prior year and 1.9% on a constant currency basis. The 1.9% growth in the underlying business reflects higher net revenues from OPI due to on-going success of the gel restage as well as strength in lacquers. Wella Professionals also continues to benefit from the successful Wellaplex product launch. Adjusted operating income increased >100% to $30.1 million from $0.7 million in the prior year.
Third Quarter Fiscal 2018 Business Review by Geographic Region
Three Months Ended March 31, Net Revenues Change (in millions) 2018 2017 Reported
Basis
Constant
Currency
North America $ 712.8 $ 685.1 4 % 4 % Europe 976.5 848.4 15 % 3 % ALMEA 533.4 498.6 7 % 5 % Total $ 2,222.7 $ 2,032.1 9 % 3 %
North America
Reported net revenues increased 4.0% compared to the prior year and increased 3.5% on a constant currency basis, driven primarily by the contributions from Younique and Burberry, the on-going success of Tiffany & Co. and Gucci Bloom and certain mass fragrances, partially offset by declines in U.S. color cosmetics. OPI was also a contributor.
Europe
Reported net revenues increased 15.1% compared to the prior year and increased 2.7% on a constant currency basis driven primarily by incremental revenues from the success of fragrances including Tiffany & Co. and Gucci Bloom as well as Max Factor.
ALMEA
Reported net revenues increased 7.0% compared to the prior year and increased 4.8% on a constant currency basis reflecting incremental revenues from fragrances driven by the launches of Tiffany & Co. and Gucci Bloom, and higher revenues from color cosmetics driven by Max Factor in China, partially offset by lower revenues in Brazil.
Noteworthy Company Developments
Other noteworthy company developments include:
On April 5, 2018, Coty completed its previously announced offering of three series of U.S. dollar denominated and euro denominated senior unsecured notes in an aggregate principal amount of $550 million and €800 million, in a private offering. On April 5, 2018, Coty entered into a credit agreement which amended and restated the existing credit agreements. The credit agreement provides for senior secured credit facilities comprised of (i) a five year revolving credit facility in an aggregate principal amount up to $3.25 billion, (ii) a five year term loan A facility consisting of (a) $1.0 billion denominated in U.S. dollars and (b) €2.035 billion denominated in Euros and (iii) a seven year term loan B facility consisting of (a) $1.4 billion denominated in U.S. dollars and (b) €850 million denominated in Euros. On April 25, 2018, Coty announced the appointment of Esra Erkal-Paler as Chief Global Corporate Affairs Officer and member of the Executive Committee. On May 9, 2018, Coty announced a dividend of $0.125 per share, payable June 14, 2018 to holders of record on May 31, 2018. After the quarter close, Coty has completed the previously announced portfolio rationalization program.
Conference Call
Coty Inc. will host a conference call at 8:00 a.m. (ET) today, May 9, 2018 to discuss its results. The dial-in number for the call is (855) 889-8783 in the U.S. or (720) 634-2929 internationally (conference passcode number: 8276807). The call will also be webcast live at http://investors.coty.com . The conference call will be available for replay. The replay dial-in number is (855) 859-2056 in the U.S. or (404) 537-3406 outside the U.S. (conference passcode number: 8276807).
About Coty Inc.
Coty is one of the world’s largest beauty companies with approximately $9 billion in pro forma revenue, an iconic portfolio of brands and a purpose to celebrate and liberate the diversity of consumers’ beauty. We believe the beauty of humanity lies in the individuality of its people; beauty is at its best when authentic; and beauty should make you feel happy, never sad. As the global leader in fragrance, a strong number two in professional salon hair color & styling, and number three in color cosmetics, Coty operates three divisions: Consumer Beauty, which is focused on mass color cosmetics, mass retail hair coloring and styling products, body care and mass fragrances with brands such as COVERGIRL, Max Factor and Rimmel; Luxury, which is focused on prestige fragrances and skincare with brands such as Calvin Klein, Burberry, Marc Jacobs, Hugo Boss, Gucci and philosophy; and Professional Beauty, which is focused on servicing salon owners and professionals in both hair and nail, with brands such as Wella Professionals, Sebastian Professional, OPI and ghd. Coty has over 20,000 colleagues globally and its products are sold in over 150 countries. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.
For additional information about Coty Inc., please visit www.coty.com .
Forward Looking Statements
Certain statements in this release are “ ” within the meaning of the Private Securities Litigation Reform Act of 1995. These reflect the Company’s current views with respect to, among other things, establishing the Company as a global leader and challenger in beauty, the Company’s future operations and financial performance (including brand relaunches, revenue and profit trends, and any outlook for the remainder of the fiscal year and future reporting periods), synergies from, performance of and integration of (including costs associated therewith) the Company’s recent acquisitions (including the P&G Beauty business), ongoing and future cost-efficiency initiatives and the timing, presentation and cost of future cost saving and/or restructuring plans, strategic transactions (including mergers and acquisitions, joint ventures, divestitures, licenses and portfolio rationalizations), future liquidity, future performance in digital and e-commerce, future performance of the Company’s key brands and the Company’s Consumer Beauty division, dividends, and fiscal year and subsequent effective tax rates (including the future impact of the Tax Act). These are generally identified by words or phrases, such as “anticipate”, “are going to”, “estimate”, “plan”, “project”, “expect”, “believe”, “intend”, “foresee”, “forecast”, “will”, “may”, “should”, “outlook”, “continue”, “target”, “aim”, “potential” and similar words or phrases. These statements are based on certain assumptions and estimates that the Company considers reasonable, but are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results (including its financial condition, results of operations, cash flows and prospects) to differ materially from such statements, including:
the Company’s ability to achieve its global business strategies, compete effectively in the beauty industry and achieve the benefits contemplated by its strategic initiatives (including sell-through of its relaunched brands and reduction in discounts in certain markets) within the expected time frame or at all; the Company’s ability to anticipate, gauge and respond to market trends and consumer preferences, which may change rapidly, and the market acceptance of new products, including any relaunched or rebranded products, execution of new launches, and the anticipated costs and discounting associated with such relaunches and rebrands; use of estimates and assumptions in preparing the Company’s financial statements, including with regard to revenue recognition, stock compensation expense, income taxes, purchase price allocations, the assessment of goodwill, other intangible assets and long-lived assets for impairment, the market value of inventory, pension expense and the fair value of acquired assets and liabilities associated with acquisitions; managerial, integration, operational, regulatory, legal and financial risks, including diversion of management attention to and management of, cash flows, and expenses and costs (including operating costs and capital expenses) associated with multiple strategic initiatives and internal reorganizations, including current and future business realignment or restructuring activities; the continued integration of the P&G Beauty Business and other recent acquisitions with the Company’s business, operations, systems, financial data and culture and the ability to realize synergies, reduce costs and realize other potential efficiencies and benefits (including through the Company’s restructuring and business realignment programs to simplify processes and improve organizational agility) at the levels and at the costs and within the time frames currently contemplated or at all; increased competition, consolidation among retailers, shifts in consumers’ preferred distribution and marketing channels (including to digital and luxury channels), shelf-space resets, compression of go-to-market cycles, changes in product and marketing requirements by retailers, and other changes in the retail, e-commerce and wholesale environment in which the Company does business and sell its products; changes in law (including the Tax Act), regulations and policies and/or the enforcement thereof that affect its business, financial performance, operations or its products; the Company and its business partners' and licensors' abilities to obtain, maintain and protect the intellectual property used in its and their respective businesses, protect its and their respective reputations (including those of its and their executives), public goodwill, and defend claims by third parties for infringement of intellectual property rights; the effect of the divestiture and discontinuation of the Company’s non-core brands (including associated post-closing cost reduction programs) and rationalizing wholesale distribution by reducing the amount of product diversion to the value and mass channels; any unanticipated problems, liabilities or other challenges associated with an acquired business which could result in increased risk or new, unanticipated or unknown liabilities, including with respect to environmental, competition and other regulatory, compliance or legal matters; the Company’s international operations and joint ventures, including enforceability and effectiveness of its joint venture agreements and reputational, compliance, regulatory, economic and foreign political risks, including difficulties and costs associated with maintaining compliance with a broad variety of complex domestic and international regulations; the Company’s dependence on certain licenses (especially in its Luxury division), entities performing outsourced functions and third-party suppliers, including third party software providers; administrative, development and other difficulties in meeting the expected timing of market expansions, product launches and marketing efforts; global political and/or economic uncertainties, disruptions or major regulatory changes, including the impact of Brexit, the current U.S. administration and recent changes in tariffs and other international trade regulations and the U.S. tax code; the number, type, outcomes (by judgment, order or settlement) and costs of legal, compliance, tax, regulatory or administrative proceedings, and/or litigation; the Company’s ability to manage seasonal and other variability and to anticipate future business trends and needs; disruptions in operations, including due to disruptions in supply chain, restructurings and other business realignment activities, manufacturing or information technology systems, labor disputes, and natural disasters; restrictions imposed on the Company through its license agreements, credit facilities and senior unsecured bonds, its ability to refinance or recapitalize debt, and changes in the manner in which the Company finances its debt and future capital needs, including potential acquisitions; increasing dependency on information technology and the Company’s ability to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, costs and timing of implementation and effectiveness of any upgrades or other changes to information technology systems, and its failure to comply with any privacy or data security laws (including the EU General Data Protection Regulation) or to protect against theft of customer, employee and corporate sensitive information; the Company’s ability to attract and retain key personnel, including during times of integration, transition and restructurings; the distribution and sale by third parties of counterfeit and/or gray market versions of the Company’s products; and other factors described elsewhere in this document and from time to time in documents that the Company file with the SEC.
When used herein, the term “includes” and “including” means, unless the context otherwise indicates, “including without limitation”. More information about potential risks and uncertainties that could affect the Company’s business and financial results is included under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017 and other periodic reports the Company has filed and may file with the SEC from time to time.
All made in this release are qualified by these cautionary statements. These are made only as of the date of this release, and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance unless expressed as such, and should only be viewed as historical data.
Non-GAAP Financial Measures
The Company operates on a global basis, with the majority of net revenues generated outside of the U.S. Accordingly, fluctuations in foreign currency exchange rates can affect results of operations. Therefore, to supplement financial results presented in accordance with GAAP, certain financial information is presented excluding the impact of foreign currency exchange translations to provide a framework for assessing how the underlying businesses performed excluding the impact of foreign currency exchange translations (“constant currency”). Constant currency information compares results between periods as if exchange rates had remained constant period-over-period, with the current period’s results calculated at the prior-year period’s rates. The Company calculates constant currency information by translating current and prior-period results for entities reporting in currencies other than U.S. dollars into U.S. dollars using constant foreign currency exchange rates. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. The Company discloses the following constant currency financial measures: net revenues, combined company net revenues, gross profit and adjusted operating income.
The Company presents period-over-period comparisons of net revenues on a constant currency basis, on a combined company, combined company constant currency, and combined company constant currency excluding the impact of acquisitions other than the acquisition of the P&G Beauty Business ("combined company organic (LFL)") basis. The Company believes that combined company period-over-period and combined company constant currency period-over-period better enable management and investors to analyze and compare the Company's net revenues performance from period to period, as the total business and individual divisions are being managed on a combined company basis. In the periods described in this release, combined company period-over-period and combined company constant currency period-over-period give effect to the completion of the Merger for purposes of the nine months ended March 31, 2018, as compared to the nine months ended March 31, 2017, as if it has been completed on July 1, 2016. Combined company growth and combined company constant currency growth do not include any adjustments related to potential profit improvements, potential cost savings or adjustments to fully conform to the accounting policies of Coty. For a reconciliation of combined company period-over-period, combined company constant currency period-over-period, and combined company organic (LFL) period-over-period, see the table entitled “Reconciliation of Reported Net Revenues to Combined Company and Like-For-Like Net Revenues”. For a reconciliation of the Company's combined company period-over-period, combined company constant currency period-over-period and combined company organic (LFL) by segment and geographic region, see the tables entitled “Net Revenues and Adjusted Operating Income by Segment” and “Net Revenues by Geographic Regions."
The Company presents operating income, operating income margin, gross profit, gross margin, effective tax rate, net income, net income margin, net revenues and EPS (diluted) on a non-GAAP basis and specifies that these measures are non-GAAP by using the term “adjusted”. The Company believes these non-GAAP financial measures better enable management and investors to analyze and compare operating performance from period to period. In calculating adjusted operating income, operating income margin, gross profit, gross margin, effective tax rate, net income, net income margin and EPS (diluted), the Company excludes the following items:
Costs related to acquisition activities: The Company excludes acquisition-related costs and acquisition accounting impacts such as those related to transaction costs and costs associated with the revaluation of acquired inventory in connection with business combinations because these costs are unique to each transaction. The nature and amount of such costs vary significantly based on the size and timing of the acquisitions and the maturities of the businesses being acquired. Also, the size, complexity and/or volume of past acquisitions, which often drives the magnitude of such expenses, may not be indicative of the size, complexity and/or volume of any future acquisitions. Restructuring and other business realignment costs: The Company excludes costs associated with restructuring and business structure realignment programs to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the above referenced expenses from the non-GAAP financial measures, management is able to evaluate the Company’s ability to utilize existing assets and estimate their long-term value. Furthermore, management believes that the adjustment of these items supplement the GAAP information with a measure that can be used to assess the sustainability of the Company’s operating performance. Amortization expense: The Company excludes the impact of amortization of finite-lived intangible assets, as such non-cash amounts are inconsistent in amount and frequency and are significantly impacted by the timing and/or size of acquisitions. Management believes that the adjustment of these items supplement the GAAP information with a measure that can be used to assess the sustainability of the Company’s operating performance. Although the Company excludes amortization of intangible assets from the non-GAAP expenses, management believes that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Interest and other (income) expense: The Company excludes foreign currency impacts associated with acquisition-related and debt financing related forward contracts as the nature and amount of such charges are not consistent and are significantly impacted by the timing and size of such transactions. Noncontrolling interest: This adjustment represents the after-tax impact of the non-GAAP adjustments included in Net income attributable to noncontrolling interests based on the relevant non-controlling interest percentage. Tax: This adjustment represents the impact of the tax effect of the pretax items excluded from Adjusted net income. The tax impact of the non-GAAP adjustments are based on the tax rates related to the jurisdiction in which the adjusted items are received or incurred.
The Company has provided a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. For a reconciliation of adjusted gross profit to gross profit, adjusted EPS (diluted) to EPS (diluted), and adjusted net revenues to net revenues, see the table entitled “Reconciliation of Reported to Adjusted Results for the Consolidated Statements of Operations.” For a reconciliation of adjusted operating income to operating income and adjusted operating income margin to operating income margin, see the tables entitled “Reconciliation of Reported Operating Income to Adjusted Operating Income” and "Reconciliation of Reported Operating Income to Adjusted Operating Income by Segment." For a reconciliation of adjusted effective tax rate and adjusted cash tax rate to effective tax rate, see the table entitled “Reconciliation of Reported Income (Loss) Before Income Taxes and Effective Tax Rates to Adjusted Income Before Income Taxes, Effective Tax Rates and Cash Tax Rates.” For a reconciliation of adjusted net income and adjusted net income margin to net income, see the table entitled “Reconciliation of Reported Net Income to Adjusted Net Income.”
The Company also presents free cash flow. Free cash flow is defined as net cash provided by operating activities, less capital expenditures. Management believes that free cash flow is useful for investors because it provides them with an important perspective on the cash available for debt repayment and other strategic measures, after making necessary capital investments in property and equipment to support the Company's ongoing business operations, and provides them with the same measures that management uses as the basis for making resource allocation decisions. For a reconciliation of Free Cash Flow, see the table entitled “Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow.”
These non-GAAP measures should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
- Tables Follow -
COTY INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
Nine Months Ended
March 31, (in millions, except per share data) 2018 2017 2018 2017 Net revenues $ 2,222.7 $ 2,032.1 $ 7,098.6 $ 5,409.0 Cost of sales 812.4 816.1 2,711.7 2,153.2 as % of Net revenues 36.6 % 40.2 % 38.2 % 39.8 % Gross profit 1,410.3 1,216.0 4,386.9 3,255.8 Gross margin 63.4 % 59.8 % 61.8 % 60.2 % Selling, general and administrative expenses 1,252.3 1,092.4 3,764.0 2,741.5 as % of Net revenues 56.3 % 53.8 % 53.0 % 50.7 % Amortization expense 92.8 102.6 260.6 219.0 Restructuring costs 42.7 155.8 75.6 179.0 Acquisition-related costs 2.6 57.7 63.7 275.1 Operating income (loss) 19.9 (192.5 ) 223.0 (158.8 ) as % of Net revenues 0.9 % (9.5 %) 3.1 % (2.9 %) Interest expense, net 72.6 60.8 199.3 159.1 Other expense (income), net 3.0 (0.5 ) 10.1 0.2 (Loss) income before income taxes (55.7 ) (252.8 ) 13.6 (318.1 ) as % of Net revenues (2.5 %) (12.4 %) 0.2 % (5.9 %) Provision (benefit) for income taxes 4.4 (93.4 ) (28.8 ) (220.6 ) Net (loss) income (60.1 ) (159.4 ) 42.4 (97.5 ) as % of Net revenues (2.7 %) (7.8 %) 0.6 % (1.8 %) Net income (loss) income attributable to noncontrolling interests 1.1 3.5 (3.0 ) 14.2 Net income attributable to redeemable noncontrolling interests 15.8 1.3 32.9 5.7 Net (loss) income attributable to Coty Inc. $ (77.0 ) $ (164.2 ) $ 12.5 $ (117.4 ) as % of Net revenues (3.5 %) (8.1 %) 0.2 % (2.2 %) Net (loss) income attributable to Coty Inc. per common share: Basic $ (0.10 ) $ (0.22 ) $ 0.02 $ (0.19 ) Diluted $ (0.10 ) $ (0.22 ) $ 0.02 $ (0.19 ) Weighted-average common shares outstanding: Basic 750.1 747.3 749.4 607.9 Diluted 750.1 747.3 753.1 607.9 Cash dividend declared per common share $ 0.125 $ 0.125 $ 0.375 $ 0.525 COTY INC.
SUPPLEMENTAL SCHEDULES INCLUDING NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS FOR THE CONSOLIDATED STATEMENTS OF OPERATIONS
These supplemental schedules provide adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. Three Months Ended March 31, 2018 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) Foreign Currency
Translation Adjusted Results at
Constant Currency
Net revenues $ 2,222.7 $ 2,222.7 $ (120.1 ) $ 2,102.6 Gross profit 1,410.3 18.0 1,428.3 (77.5 ) 1,350.8 Gross margin 63.4 % 64.3 % 64.2 % Operating income 19.9 207.9 227.8 (1.6 ) 226.2 as % of Net revenues 0.9 % 10.2 % 10.8 % Net income attributable to Coty Inc. $ (77.0 ) $ 173.2 $ 96.2 as % of Net revenues (3.5 %) 4.3 % EPS (diluted) $ (0.10 ) $ 0.13 Three Months Ended March 31, 2017 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) Net revenues $ 2,032.1 $ 2,032.1 Gross profit 1,216.0 71.2 1,287.2 Gross margin 59.8 % 63.3 % Operating (loss) income (192.5 ) 400.8 208.3 as % of Net revenues (9.5 %) 10.3 % Net income attributable to Coty Inc. $ (164.2 ) $ 274.5 $ 110.3 as % of Net revenues (8.1 %) 5.4 % EPS (diluted)
$ (0.22 ) $ 0.15 (a) See “Reconciliation of Reported Operating Income to Adjusted Operated Income” and “Reconciliation of Reported Net Income to Adjusted Net Income” for a detailed description of adjusted items. Nine Months Ended March 31, 2018 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) Foreign Currency
Translation Adjusted Results at
Constant Currency
Net revenues $ 7,098.6 $ — $ 7,098.6 $ (266.9 ) $ 6,831.7 Gross profit 4,386.9 43.3 4,430.2 (166.5 ) 4,263.7 Gross margin 61.8 % 62.4 % 62.4 % Operating income 223.0 547.4 770.4 (13.7 ) 756.7 as % of Net revenues 3.1 % 10.9 % 11.1 % Net income attributable to Coty Inc. $ 12.5 $ 397.2 $ 409.7 as % of Net revenues 0.2 % 5.8 % EPS (diluted) $ 0.02 $ 0.54 Nine Months Ended March 31, 2017 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) Net revenues $ 5,409.0 $ 5,409.0 Gross profit 3,255.8 126.9 3,382.7 Gross margin 60.2 % 62.5 % Operating income (158.8 ) 841.5 682.7 as % of Net revenues (2.9 %) 12.6 % Net income attributable to Coty Inc. $ (117.4 ) $ 529.3 $ 411.9 as % of Net revenues (2.2 %) 7.6 % EPS (diluted) $ (0.19 ) $ 0.67 (a) See “Reconciliation of Reported Operating Income to Adjusted Operated Income” and “Reconciliation of Reported Net Income to Adjusted Net Income” for a detailed description of adjusted items. RECONCILIATION OF REPORTED OPERATING INCOME TO ADJUSTED OPERATING INCOME
Three Months Ended March 31, Nine Months Ended March 31, (in millions) 2018 2017 Change 2018 2017 Change Reported Operating Income (Loss) 19.9 (192.5 ) >100
%
223.0 (158.8 ) >100
%
% of Net revenues 0.9 % (9.5 %) 3.1 % (2.9 %) Amortization expense (a) 92.8 102.6 (10 %) 260.6 219.0 19 % Restructuring and other business realignment costs (b) 111.0 175.9 (37 %) 217.2 210.9 3 % Costs related to acquisition activities (c) 4.1 122.3 (97 %) 69.6 395.7 (82 %) Pension settlement charge (d) — — N/A — 15.9 (100 %) Total adjustments to Reported Operating Income 207.9 400.8 (48 %) 547.4 841.5 (35 %) Adjusted Operating Income 227.8 208.3 9 % 770.4 682.7 13 % % of Net revenues 10.2 % 10.3 % 10.9 % 12.6 % (a) In the three months ended March 31, 2018, amortization expense decreased to $92.8 from $102.6 in the three months ended March 31, 2017 primarily as a result of the acquisitions. In the three months ended March 31, 2018, amortization expense of $41.0, $33.1, and $18.7 was reported in the Luxury, Consumer Beauty and Professional Beauty segments, respectively. In the three months ended March 31, 2017, amortization expense of $25.2, $58.5, and $18.9 was reported in the Luxury, Consumer Beauty and Professional Beauty segments, respectively. In the nine months ended March 31, 2018, amortization expense increased to $260.6 from $219.0 in the nine months ended March 31, 2017, primarily as a result of the acquisitions. In the nine months ended March 31, 2018, amortization expense of $114.5, $92.1, and $54.0 was reported in the Luxury, Consumer Beauty and Professional Beauty segments, respectively. In the nine months ended March 31, 2017, amortization expense of $70.6, $110.9, and $37.5 was reported in the Luxury, Consumer Beauty, and Professional Beauty segments, respectively. (b) In the three months ended March 31, 2018, we incurred restructuring and other business structure realignment costs of $111.0. We incurred Restructuring costs of $42.7 primarily related to Global Integration Activities and 2018 Restructuring Actions, included in the Condensed Consolidated Statements of Operations. We incurred business structure realignment costs of $68.3 primarily related to our Global Integration Activities and certain other programs. This amount primarily includes $51.8 in Selling, general and administrative expense and $16.5 in Cost of sales. In the three months ended March 31, 2017, we incurred restructuring and other business structure realignment costs of $175.9. We incurred Restructuring costs of $155.8 primarily related to Global Integration Activities, included in the Condensed Consolidated Statements of Operations. We incurred business structure realignment costs of $20.1 primarily related to our Global Integration Activities, Organizational Redesign and certain other programs. Of this amount, $12.0 is included in selling, general and administrative expenses and $8.1 is included in cost of sales. In the nine months ended March 31, 2018, we incurred restructuring and other business structure realignment costs of $217.2. We incurred Restructuring costs of $75.6 primarily related to Global Integration Activities and 2018 Restructuring Actions, included in the Condensed Consolidated Statements of Operations. We incurred business structure realignment costs of $141.6 primarily related to our Global Integration Activities and certain other programs. This amount primarily includes $104.4 in Selling, general and administrative expense and $37.2 in Cost of sales. In the nine months ended March 31, 2017, we incurred restructuring and other business structure realignment costs of $210.9. We incurred Restructuring costs of $179.0 primarily related to the Global Integration Activities, included in the Condensed Consolidated Statements of Operations. We incurred business structure realignment costs of $31.9 primarily related to our Global Integration Activities, Organizational Redesign and certain other programs. Of this amount $20.4 is included in Selling, general and administrative expenses and $11.5 is included in Cost of sales. (c) In the three months ended March 31, 2018, we incurred $4.1 of costs related to acquisition activities. We recognized Acquisition-related costs of $2.6, included in the Condensed Consolidated Statements of Operations. These costs may include finder’s fees, legal, accounting, valuation, and other professional or consulting fees, and other internal costs which may include compensation related expenses for dedicated internal resources. We also incurred approximately $1.5 in Costs of sales primarily reflecting revaluation of acquired inventory in connection with the acquisition of the Burberry Beauty Business in the Condensed Consolidated Statements of Operations. In the three months ended March 31, 2017, we incurred $122.3 of costs related to acquisition activities. We recognized Acquisition-related costs of $57.7, included in the Condensed Consolidated Statements of Operations. These costs primarily consist of legal and consulting fees in connection with the acquisition of the P&G Beauty Business. We also incurred $28.3, $22.2 and $12.7 in costs of sales primarily reflecting revaluation of acquired inventory in connection with the acquisition of ghd, Younique and the P&G Beauty Business in the Condensed Consolidated Statements of Operations. In the nine months ended March 31, 2018, we incurred $69.6 of costs related to acquisition activities. We recognized Acquisition-related costs of $63.7, included in the Condensed Consolidated Statements of Operations.These costs were primarily incurred in connection with the acquisition of P&G Beauty Business. These costs include amounts paid for external consulting fees and internal costs for converting the data received from P&G during the transition period to satisfy the Company’s internal and external financial reporting, regulatory and other requirements, as well as legal, accounting, and valuation services, and fees paid directly to P&G. We also incurred $3.5 and $2.4 in Costs of sales primarily reflecting revaluation of acquired inventory in connection with the acquisitions of Younique and the Burberry Beauty Business, respectively, in the Condensed Consolidated Statements of Operations. In the nine months ended March 31, 2017, we incurred $395.7 of costs related to acquisition activities. We recognized Acquisition-related costs of $275.1, included in the Condensed Consolidated Statements of Operations. These costs primarily consist of legal and consulting fees in connection with the acquisition of the P&G Beauty Business. We also incurred $44.4, $22.2 and $48.8 in costs of sales primarily reflecting revaluation of acquired inventory in connection with the acquisitions of ghd, Younique and the P&G Beauty Business, respectively in the Condensed Consolidated Statements of Operations. d) During the nine months ended March 31, 2017, we incurred a charge of $15.9, in connection with the settlement of obligations related to the U.S. Del Laboratories, Inc. pension plan. The settlement of the plan was effectuated through the purchase of annuity contracts from a third-party insurance provider, effectively transferring the U.S. Del Laboratories, Inc. pension plan obligation to the insurance provider, during the three months ended March 31, 2017. The settlement charge is as a result of accelerating the recognition of losses previously deferred in other comprehensive income (loss). RECONCILIATION OF REPORTED INCOME (LOSS) BEFORE INCOME TAXES AND EFFECTIVE TAX RATES TO
ADJUSTED INCOME BEFORE INCOME TAXES, EFFECTIVE TAX RATES AND CASH TAX RATES
Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (in millions) Income
Before
Income
Taxes
(Benefit)
Provision for
Taxes
Effective Tax
Rate
(Loss)
Income
Before
Income
Taxes
(Benefit)
Provision for
Taxes
Effective Tax
Rate
Reported Income (Loss) Before Taxes $ (55.7 ) $ 4.4 (7.9 )% $ (252.8 ) $ (93.4 ) 36.9 % Adjustments to Reported Operating Income (a) (b) 207.9 31.8 400.8 126.3 Adjusted Income Before Taxes $ 152.2 $ 36.2 23.8 % $ 148.0 $ 32.9 22.2 % (a) See a description on adjustments under “Reconciliation of Reported Operating Income to Adjusted Operating Income”. (b) The tax effects of each of the items included in adjusted income are calculated in a manner that results in a corresponding income tax benefit/provision for adjusted income. In preparing the calculation, each adjustment to reported income is first analyzed to determine if the adjustment has an income tax consequence. The benefit/provision for taxes is then calculated based on the jurisdiction in which the adjusted items are incurred, multiplied by the respective statutory rates and offset by the increase or reversal of any valuation allowances commensurate with the non–GAAP measure of profitability. The adjusted effective tax rate was 23.8% for the three months ended March 31, 2018 compared to 22.2% for the three months ended March 31, 2017. The differences were primarily due to the expiration of foreign statutes of limitations.
Nine Months Ended
March 31, 2018 Nine Months Ended
March 31, 2017 (in millions) Income
Before
Income
Taxes
(Benefit)
Provision for
Income
Taxes
Effective Tax
Rate
(Loss)
Income
Before
Income
Taxes
(Benefit)
Provision for
Income
Taxes
Effective Tax
Rate
Reported income (loss) before income taxes $ 13.6 $ (28.8 ) (211.8 )% $ (318.1 ) $ (220.6 ) 69.3 % Adjustments to reported operating income (a)(b) 547.4 128.6 841.5 313.0 Adjustments to interest expense (b)(c) — — 1.4 0.6 Adjusted income before income taxes $ 561.0 $ 99.8 17.8 % $ 524.8 $ 93.0 17.7 % (a) See a description of adjustments under “Adjusted Operating Income for Coty Inc.” (b) The tax effects of each of the items included in adjusted income are calculated in a manner that results in a corresponding income tax expense/provision for adjusted income. In preparing the calculation, each adjustment to reported income is first analyzed to determine if the adjustment has an income tax consequence. The provision for taxes is then calculated based on the jurisdiction in which the adjusted items are incurred, multiplied by the respective statutory rates and offset by the increase or reversal of any valuation allowances commensurate with the non-GAAP measure of profitability. (c) See “Reconciliation of Reported Net (Loss) Income Attributable to Coty Inc. to Adjusted Net Income Attributable to Coty Inc.” The adjusted effective tax rate remained relatively stable at 17.8% compared to 17.7% in the prior-year period. RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED NET INCOME
Three Months Ended March 31, Nine Months Ended March 31, (in millions) 2018 2017 Change 2018 2017 Change Reported Net Income Attributable to Coty Inc. $ (77.0 ) $ (164.2 ) 53 % $ 12.5 $ (117.4 ) >100% % of Net revenues (3.5 %) (8.1 %) 0.2 % (2.2 %) Adjustments to Reported Operating Income (a) 207.9 400.8 (48 %) 547.4 841.5 (35 %) Adjustments to Interest Expense (b) — — N/A — 1.4 (100 %) Adjustments to noncontrolling interests (c) (2.9 ) — NM (21.6 ) — NM Change in tax provision due to adjustments to Reported Net Income Attributable to Coty Inc. (31.8 ) (126.3 ) 75 % (128.6 ) (313.6 ) 59 % Adjusted Net Income Attributable to Coty Inc. $ 96.2 $ 110.3 (13 %) $ 409.7 $ 411.9 (1 %) % of Net revenues 4.3 % 5.4 % 5.8 % 7.6 % Per Share Data Adjusted weighted-average common shares Basic 750.1 747.3 749.4 607.9 Diluted 754.0 751.5 753.1 613.4 Adjusted Net Income Attributable to Coty Inc. per Common Share Basic $ 0.13 $ 0.15 $ 0.55 $ 0.68 Diluted $ 0.13 $ 0.15 $ 0.54 $ 0.67 (a) See a description of adjustments under “Reconciliation of Reported Operating Income to Adjusted Operating Income”. (b) In the nine months ended March 31, 2017, the amount represents a net loss of $1.4 incurred in connection with the Hypermarcas Brands and subsequent intercompany loans, included in Interest expense, net in the Condensed Consolidated Statements of Operations. (c) The amounts represent the impact of non-GAAP adjustments to Net income attributable to noncontrolling interest related to the Company’s majority-owned consolidated subsidiaries. The amounts are based on the relevant noncontrolling interest’s percentage ownership in the related subsidiary, for which the non-GAAP adjustments were made. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Three Months Ended March 31, Nine Months Ended March 31, (in millions) 2018 2017 2018 2017 Net cash provided by operating activities $ (118.9 ) $ 43.3 $ 188.9 $ 706.7 Capital expenditures (86.5 ) (125.8 ) (318.7 ) (324.0 ) Free cash flow $ (205.4 ) $ (82.5 ) $ (129.8 ) $ 382.7 NET REVENUES AND ADJUSTED OPERATING INCOME BY SEGMENT
Three Months Ended March 31, Net Revenues Change Reported Operating
Income
Adjusted Operating
Income
(in millions) 2018 2017 Reported
Basis
Constant Currency
2018 Change 2018 Change Luxury $ 752.5 $ 634.6 19 % 12 % $ 59.4 (2 %) $ 100.4 17 % Consumer Beauty 1,021.7 988.6 3 % (1 %) 64.2 2 % 97.3 (20 %) Professional 448.5 408.9 10 % 2 % 11.4 >100% 30.1 >100% Corporate — — N/A N/A (115.1 ) 61 % — N/A Total $ 2,222.7 $ 2,032.1 9 % 3 % $ 19.9 >100%
$ 227.8 9 % Nine Months Ended March 31, Net Revenues Change Reported Operating
Income
Adjusted Operating
Income
(in millions) 2018 2017 Reported
Basis
Combined
Company
Year-
Over-Year
Combined
Company
Constant
Currency
2018 Change 2018 Change Luxury $ 2,468.1 $ 1,918.6 29 % 13 % 8 % $ 201.2 (1 %) $ 315.7 15 % Consumer Beauty 3,203.7 2,562.2 25 % 7 % 3 % 225.4 26 % 317.5 10 % Professional 1,426.8 928.2 54 % 15 % 10 % 83.2 2 % 137.2 15 % Corporate — — N/A N/A N/A (286.8 ) (54 %) — N/A Total $ 7,098.6 $ 5,409.0 31 % 10 % 6 % $ 223.0 >100% $ 770.4 13 % NET REVENUES BY GEOGRAPHIC REGION
Three Months Ended March 31, Net Revenues Change (in millions) 2018 2017 Reported Basis Constant
Currency
North America $ 712.8 $ 685.1 4 % 4 % Europe 976.5 848.4 15 % 3 % ALMEA 533.4 498.6 7 % 5 % Total $ 2,222.7 $ 2,032.1 9 % 3 % Nine Months Ended March 31, Net Revenues Change (in millions) 2018 2017 Reported
Basis
Combined
Company
Year-over-
Year
Combined
Company
Constant
Currency
North America $ 2,205.2 $ 1,727.4 28 % 7 % 6 % Europe 3,242.5 2,429.4 33 % 12 % 4 % ALMEA 1,650.9 1,252.2 32 % 13 % 11 % Total $ 7,098.6 $ 5,409.0 31 % 10 % 6 % RECONCILIATION OF REPORTED OPERATING INCOME TO ADJUSTED OPERATING INCOME BY SEGMENT
Three Months Ended March 31, 2018 (in millions) Reported
(GAAP)
Adjustments (a) Adjusted
(Non-GAAP)
Foreign
Currency
Translation
Adjusted
Results at
Constant
Currency
OPERATING INCOME (LOSS) Luxury $ 59.4 $ (41.0 ) $ 100.4 $ 1.9 $ 102.3 Consumer Beauty 64.2 (33.1 ) 97.3 (2.7 ) 94.6 Professional Beauty 11.4 (18.7 ) 30.1 (0.7 ) 29.4 Corporate (115.1 ) (115.1 ) — — — Total $ 19.9 $ (207.9 ) $ 227.8 $ (1.5 ) $ 226.3 OPERATING MARGIN Luxury 7.9 % 13.3 % 14.4 % Consumer Beauty 6.3 % 9.5 % 9.7 % Professional Beauty 2.5 % 6.7 % 7.1 % Corporate N/A N/A N/A Total 0.9 % 10.2 % 10.8 % Three Months Ended March 31, 2017 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) OPERATING INCOME (LOSS) Luxury $ 60.9 $ (25.2 ) $ 86.1 Consumer Beauty 63.0 (58.5 ) 121.5 Professional Beauty (18.2 ) (18.9 ) 0.7 Corporate (298.2 ) (298.2 ) — Total $ (192.5 ) $ (400.8 ) $ 208.3 OPERATING MARGIN Luxury 9.6 % 13.6 % Consumer Beauty 6.4 % 12.3 % Professional Beauty (4.5 %) 0.2 % Corporate N/A N/A Total (9.5 %) 10.3 % (a) See “Reconciliation of Reported Operating Income to Adjusted Operated Income” for a detailed description of adjusted items. Nine Months Ended March 31, 2018 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) Foreign
Currency
Translation
Adjusted
Results at
Constant
Currency
OPERATING INCOME (LOSS) Luxury $ 201.2 $ (114.5 ) $ 315.7 $ (1.7 ) $ 314.0 Consumer Beauty 225.4 (92.1 ) 317.5 (7.8 ) 309.7 Professional Beauty 83.2 (54.0 ) 137.2 (4.1 ) 133.1 Corporate (286.8 ) (286.8 ) — — — Total $ 223.0 $ (547.4 ) $ 770.4 $ (13.6 ) $ 756.8 OPERATING MARGIN Luxury 8.2 % 12.8 % 13.3 % Consumer Beauty 7.0 % 9.9 % 10.0 % Professional Beauty 5.8 % 9.6 % 9.8 % Corporate N/A N/A N/A Total 3.1 % 10.9 % 11.1 % Nine Months Ended March 31, 2017 (in millions) Reported
(GAAP) Adjustments (a) Adjusted
(Non-GAAP) OPERATING INCOME (LOSS) Luxury $ 203.6 $ (70.6 ) $ 274.2 Consumer Beauty 178.6 (110.9 ) 289.5 Professional Beauty 81.5 (37.5 ) 119.0 Corporate (622.5 ) (622.5 ) — Total $ (158.8 ) $ (841.5 ) $ 682.7 OPERATING MARGIN Luxury 10.6 % 14.3 % Consumer Beauty 7.0 % 11.3 % Professional Beauty 8.8 % 12.8 % Corporate N/A N/A Total (2.9 %) 12.6 % (a) See “Reconciliation of Reported Operating Income to Adjusted Operated Income” for a detailed description of adjusted items. RECONCILIATION OF REPORTED NET REVENUES TO COMBINED COMPANY AND LIKE-FOR-LIKE NET REVENUES
Three Months Ended March 31, 2018 vs. Three Months Ended March 31, 2017 Net Revenue Change of which Net Revenues Change YoY Reported Basis Constant Currency Impact from
Acquisitions 1
Organic (LFL) Luxury 19 % 12 % 6 % 6 % Consumer Beauty 3 % (1 )% 3 % (4 )% Professional Beauty 10 % 2 % — % 2 % Total Company 9 % 3 % 3 % — % 1 Acquisitions reflect the net revenue contribution in the current period from the acquisition of Burberry, and one month of the of Younique acquisition. Nine Months Ended March 31, 2018 vs. Nine Months Ended March 31, 2017 Net Revenue Change of which Net Revenues Change YoY Reported Basis vs
Legacy Coty
Combined
Company
Reported 1
Combined
Company
Reported at
Constant Currency
Impact from
Acquisitions 2
Combined
Company Organic
(LFL)
Luxury 29% 13% 8% 2% 6% Consumer Beauty 25% 7% 3% 8% (5)% Professional Beauty 54% 15% 10% 8% 2% Total Company 31% 10% 6% 6% —% ¹ Combined Company reflects combined Legacy-Coty and P&G Beauty Business net revenues in the current and prior-year period. ² Acquisitions reflect the net revenue contribution in the current period from the acquisition Burberry, seven months of the Younique acquisition and five months of the ghd acquisition. COTY INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions) March 31,
2018
June 30,
2017
ASSETS Current assets: Cash and cash equivalents $ 460.8 $ 535.4 Restricted cash 25.7 35.3 Trade receivables—less allowances of $93.6 and $58.5, respectively 1,555.4 1,470.3 Inventories 1,258.5 1,052.6 Prepaid expenses and other current assets 610.2 487.9 Total current assets 3,910.6 3,581.5 Property and equipment, net 1,689.2 1,632.1 Goodwill 8,972.8 8,555.5 Other intangible assets, net 8,662.1 8,425.2 Deferred income taxes 226.5 72.6 Other noncurrent assets 303.8 281.3 TOTAL ASSETS $ 23,765.0 $ 22,548.2 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 1,709.3 $ 1,732.1 Accrued expenses and other current liabilities 1,882.2 1,796.4 Short-term debt and current portion of long-term debt 231.6 209.1 Income and other taxes payable 118.7 66.0 Total current liabilities 3,941.8 3,803.6 Long-term debt, net 7,628.6 6,928.3 Pension and other post-employment benefits 588.7 549.2 Deferred income taxes 941.3 924.9 Other noncurrent liabilities 499.6 473.4 Total liabilities 13,600.0 12,679.4 COMMITMENTS AND CONTINGENCIES REDEEMABLE NONCONTROLLING INTERESTS 665.4 551.1 EQUITY: Preferred Stock — — Common Stock 8.1 8.1 Additional paid-in capital 10,835.3 11,203.2 Accumulated deficit (438.4 ) (459.2 ) Accumulated other comprehensive income 536.1 4.4 Treasury stock (1,441.8 ) (1,441.8 ) Total Coty Inc. stockholders’ equity 9,499.3 9,314.7 Noncontrolling interests 0.3 3.0 Total equity 9,499.6 9,317.7 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY $ 23,765.0 $ 22,548.2 COTY INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
March 31, (in millions) 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 42.4 $ (97.5 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 543.5 414.9 Deferred income taxes (157.7 ) (298.3 ) Provision for bad debts 15.4 23.3 Provision for pension and other post-employment benefits 33.3 44.7 Share-based compensation 26.1 19.1 Other 16.2 (0.6 ) Change in operating assets and liabilities, net of effects from purchase of acquired companies: Trade receivables (33.5 ) (216.2 ) Inventories (101.3 ) 172.6 Prepaid expenses and other current assets (76.2 ) (6.5 ) Accounts payable (80.2 ) 339.3 Accrued expenses and other current liabilities (27.4 ) 345.4 Income and other taxes payable 64.6 3.1 Other noncurrent assets (7.2 ) 9.9 Other noncurrent liabilities (69.1 ) (46.5 ) Net cash provided by operating activities 188.9 706.7 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (318.7 ) (324.0 ) Payment for business combinations, net of cash acquired (265.5 ) (742.6 ) Proceeds from sale of asset 3.5 10.5 Net cash used in investing activities (580.7 ) (1,056.1 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from short-term debt, original maturity more than three months — 9.5 Repayments of short-term debt, original maturity more than three months — (9.7 ) Net proceeds (repayments) of short-term debt, original maturity less than three months 5.1 (48.7 ) Proceeds from revolving loan facilities 2,298.1 1,809.4 Repayments of revolving loan facilities (1,535.8 ) (1,624.4 ) Proceeds from term loans — 1,075.0 Repayments of term loans (150.6 ) (95.7 ) Dividend payment (281.9 ) (279.2 ) Net proceeds from issuance of Class A Common Stock and Series A Preferred Stock 20.0 19.5 Payments for employee taxes related to net settlement of equity awards (3.5 ) — Payments for purchases of Class A Common Stock held as Treasury Stock — (36.3 ) Net (payments) proceeds from foreign currency contracts (2.7 ) 3.8 Purchase of additional noncontrolling interests — (9.8 ) Proceeds from noncontrolling interests 0.2 — Distributions to noncontrolling interests, redeemable noncontrolling interests and mandatorily redeemable financial instruments (54.0 ) (7.5 ) Payment of deferred financing fees (4.0 ) (24.8 ) Net cash provided by financing activities 290.9 781.1 EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS 16.7 (12.1 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (84.2 ) 419.6 CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period 570.7 372.4 CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period $ 486.5 $ 792.0 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid during the period for interest $ 194.2 $ 132.9 Cash paid during the period for income taxes, net of refunds received 83.9 63.6 SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING AND INVESTING ACTIVITIES: Accrued capital expenditure additions $ 104.3 $ 70.8 Non-cash Common Stock issued for business combination — 9,628.6 Non-cash debt assumed for business combination — 1,943.0 Non-cash redeemable noncontrolling interest for business combinations — 410.9 Non-cash contingent consideration for business combination 5.0 —
View source version on businesswire.com : https://www.businesswire.com/news/home/20180509005317/en/
Coty Inc.
Investor Relations
Kevin Monaco , +1-212-389-6815
[email protected]
or
Media
Jennifer Friedman , +1-917-754-8399
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Source: Coty Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/09/business-wire-coty-inc-reports-third-quarter-fiscal-2018-results.html |
LONDON, May 16 (Reuters) - Volvo is working on how to meet the challenges of electrification and self-driving cars and has the funds to do so regardless of whether the firm launches a stock market flotation, its boss said on Wednesday.
“We need to address these issues with electrification and automated drive,” Hakan Samuelsson said at a conference in London on Wednesday.
“That is the next step and we are doing that. Listed or not listed really doesn’t change anything for us as a company. We focus fully on that and we have the financial resources right now to be able to do that.”
China’s Zhejiang Geely Holding Group, the owner of Volvo Cars, has hired three investment banks for an initial public offering (IPO) this year that could value the Swedish carmaker in a broad range of $16 billion to $30 billion, a person familiar with the matter told Reuters last week. (Reporting by Costas Pitas, editing by Sarah Young)
| ashraq/financial-news-articles | https://www.reuters.com/article/volvo-cars-ipo-ceo/volvo-ceo-says-focussed-on-electrification-automation-regardless-of-ipo-idUSL8N1SA6WB |
May 2 (Reuters) - ESTERAD INVESTMENT CO:
* Q1 NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 611,673 DINARS VERSUS 718,473 DINARS YEAR AGO Source:( bit.ly/2KsMNfL ) Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-esterad-investment-q1-profit-falls/brief-esterad-investment-q1-profit-falls-idUSFWN1S80RI |
May 22, 2018 / 3:27 AM / Updated 17 hours ago Exclusive: Ousted MGM CEO explores bid for the U.S. movie studio - sources Liana B. Baker , Jessica Toonkel 3 Min Read
(Reuters) - Former MGM Holdings Inc Chief Executive Officer Gary Barber, who was ousted earlier this year, is speaking to investment banks about financing an offer to acquire the privately held U.S. movie studio, five people familiar with the matter said on Monday. Gary Barber, co-CEO of MGM, accepts the award for Best Action Movie for "Skyfall" at the 2013 Critics' Choice Awards in Santa Monica, California, January 10, 2013. REUTERS/Mario Anzuoni
MGM could be worth more than $5 billion including debt, and it is far from certain that Barber can raise the funds for a bid, the sources said. His potential bid, however, is aimed at convincing the hedge funds that own and control MGM to explore a sale, the sources added.
Barber owns about 9 percent of MGM through stock options after serving as its CEO between 2010 and 2018, according to the sources. He was let go abruptly in March from MGM after signing a five-year extension to his contract, according to the sources. MGM at the time did not give a reason for his departure.
The sources asked not to be identified because the matter is confidential.
Anchorage Capital Group LLC, the largest shareholder, along with the other owners, have high valuation expectations for the company and believe the company can still grow in value, the sources said.
A representative for Anchorage and another MGM owner, Highland Capital Management, declined to comment. Barber and MGM could not be reached for comment. Solus Alternative Asset Management, another investor in MGM, did not immediately respond to a request for comment.
Famous for its library that includes the James Bond franchise, “Rocky” and other classic movies, MGM co-produces and distributes television shows such as “The Handmaid’s Tale” on Hulu, “Vikings” on A&E and “Fargo” on FX. It also owns MGM-branded U.S. channels that play its films and international networks.
Barber led the company’s turnaround following its emergence from bankruptcy in 2010. Since Barber’s departure, MGM’s board created an “office of the CEO” comprised of a group of senior leaders to run the company.
Anchorage has a roughly 35 percent stake, according to sources, while a filing showed that Highland and Solus each own more than 10 percent of the company.
The hedge funds were creditors for MGM before it filed for bankruptcy, and it is unusual for them to keep their ownership stakes for almost a decade.
MGM has so far been in an acquisitive mode, rather than showing any willingness to sell. It bought the 81 percent stake in U.S. channel Epix it did not already own from Viacom Inc and Lions Gate Entertainment Corp for about $1 billion last year.
MGM has about $1.9 billion in debt, including a revolving credit line, according to Thomson Reuters Loan Pricing Corp. It generated annual revenue of $1.3 billion last year, up from $1.18 billion a year earlier. It reported net income of $548 million last year, up from $155 million in 2016. Reporting by Liana B. Baker and Jessica Toonkel in New York; additional reporting by Jessica DiNapoli; Editing by Cynthia Osterman and Lisa Shumaker | ashraq/financial-news-articles | https://in.reuters.com/article/mgm-holdings-m-a-barber/exclusive-ousted-mgm-ceo-explores-bid-for-the-u-s-movie-studio-sources-idINKCN1IN097 |
May 16, 2018 / 8:29 PM / Updated 9 minutes ago Telecom Italia boss says has board support, Elliott plans not discussed Agnieszka Flak 4 Min Read
MILAN (Reuters) - Telecom Italia (TIM) Chief Executive Amos Genish feels he has the full support of the board to push ahead with his three-year strategy plan and proposals put forward by activist fund Elliott are not being discussed, he said on Thursday. FILE PHOTO: A Telecom Italia tower is pictured in Rome, Italy March 22, 2016. REUTERS/Stefano Rellandini/File Photo
Elliott wrestled board control from top shareholder Vivendi this month after a two-month campaign to shake-up the way the French media group has been running TIM.
Beyond a governance overhaul, Elliott has proposed a spin-off and partial sale of the soon-to-be-created network company, a conversion of savings shares, a return to dividends and asset sales.
But it recently added it would be up to the new board and management to decide whether and when to consider such actions.
“It’s clear (the board support) is there and I feel very comfortable in moving forward with what needs to be done,” Genish told analysts in a post-results call. “I’m here for the long run.”
Genish has made his staying on as CEO conditional on being able to execute the three-year plan launched in March focusing on a digital transformation of TIM, fixing its finances and getting back investment grade credit rating.
The well-respected telecoms veteran said any additional opportunities would be evaluated as they arose.
He reiterated towers unit INWIT was strategic for the group, especially ahead of the arrival of 5G technology.
He also ruled out any sale of its business in Brazil, adding consolidation there should be “assessed carefully” so as not to jeopardize recovery and cash generation.
“Everyone is convinced that TIM Brasil on a standalone basis is a lucrative asset that’s doing extremely well,” he said.
TIM has launched a process to put its fixed line network into a legally separate company. The former state phone monopoly will keep an open mind regarding a possible floatation of Nekton, but will insist on TIM retaining control of the asset, he said. CONFLICT OF INTEREST
Genish dismissed any suggestion of a conflict of interest over Italian state lender CDP being a significant shareholder at TIM while also owning 50 percent of broadband rival Open Fiber. “CDP is a financial investor,” he said.
The executive is not concerned about Italy’s two anti-establishment parties set to form the next government, even if at least one of them has called for greater state role in the telecoms sector.
He said he expected any party to support policies that would favor investments in Italy’s digital roll-out.
TIM reported better than expected 1.7 percent growth in first-quarter domestic sales, lifted by solid mobile operations. Analysts had forecast a growth of 0.4 percent.
The domestic sales rise was “boosted by a surprisingly strong wireless unit. It was the fourth growing quarter in a row after eight years of decline,” Morgan Stanley said in a note.
TIM said comparable earnings before interest, tax, depreciation and amortization (EBITDA) fell 4.9 percent to 1.89 billion euros ($2.23 billion), hit by provisions made for fines Italy imposed on the phone group as part of the so-called golden power decree which the group is appealing.
Excluding the non-recurring items, underlying core earnings were in line with market consensus.
TIM said Vivendi was no longer a party exercising direction and coordination over the phone group, which started after the French investor appointed two-thirds of TIM’S board and named its own CEO as executive chairman.
Following Elliott’s proxy fight, the focus shifts back to TIM’S operational challenges, including its 25.5 billion euros of net debt and new rivals appearing in broadband and mobile.
A key headache is the pending arrival in Italy of French rival Iliad, which is likely to pressure margins.
TIM shares rose after the results but later retreated. The stock closed down 0.7 percent. Reporting by Agnieszka Flak; Editing by Keith Weir and Alexandra Hudson | ashraq/financial-news-articles | https://uk.reuters.com/article/us-telecomitalia-results/telecom-italia-first-quarter-earnings-fall-on-golden-power-provisions-idUKKCN1IH2WE |
Italy's Five Star Movement (M5S) and Lega party have reportedly agreed on who the next prime minister should be — taking another step closer to implementing their governing coalition and restoring a political structure to the country.
Speculation is rife that M5S and Lega's leaders, Luigi Di Maio and Matteo Salvini, have chosen a private law professor Giuseppe Conte as the new prime minister. Relatively unknown in political and public life, even Italian newspapers are publishing profiles and biographies on the professor to give the country's voters the lowdown on their next possible leader.
The 54-year-old comes from the Apulia region of southeast Italy and graduated from La Sapienza University in Rome after studying law, before "perfecting" his studies at places like Yale, Duquesne, the International Kultur Institut in Vienna, La Sorbonne in France, Cambridge and New York University, according to a profile page.
But the Corriere della Sera newspaper stated that while Conte has "a very long curriculum (vitae)" he doesn't "have a clue about politics." The newspaper did concede that Conte "is certainly a technician" and has experience in business and administrative, financial and civil law. La Stampa newspaper added that he has been the director of "numerous legal journals."
show chapters Lega members back coalition deal with Five Star Movement 14 Hours Ago | 02:30 In addition, the paper noted that Conte is a member of the Scientific Committee of the Italian Notary Foundation, was a part of the Board of the Italian Space Agency and in 2013 the Parliament appointed him as a member of the Board of Directors of Administrative Justice.
Meanwhile, La Repubblica newspaper noted that Conte's CV states that he is also an expert on "managing large companies in crisis," which the paper noted "will be useful in events such as Ilva or Alitalia." Ilva is an Italian steel company going through a pollution scandal and Alitalia is national airline that recently went bankrupt.
Conte has taught extensively in Italy and currently lectures in private law at universities in Florence and Bologna.
A friend of M5S Conte's name was initially flagged up by M5S just ahead of the election in March when the movement's leader, Di Maio, stated that the professor would be nominated as minister for public administration and simplification (a ministry charged with simplifying laws and regulations) in any M5S-led administration.
During the election campaign, Di Maio had called Conte a "sburocratizzatore" — akin to a "de-bureaucratizer" — while Conte himself declared during the campaign that Italy needs to "abolish useless laws" (he said there were more than the 400 indicated by Di Maio) and that Italy's anti-corruption laws need to be strengthened. He also stated that reforms to transform poorly-performing schools must be introduced.
Ahead of the election, Di Maio denied that a cabinet featuring experts and academics like Conte (and other professors then tipped to lead various ministries) would represent a technocratic cabinet, arguing instead that people like Conte "know what they are talking about," Reuters reported.
show chapters Italy's future governing parties over-promised during election campaigning: Analyst 12 Hours Ago | 02:56 Now, with M5S' all-but certain coalition with the Lega party, Di Maio and Salvini are expected to present Conte as their candidate for prime minister, as well as a proposed cabinet formed of M5S and Lega ministers. They will seek approval from Italy's President Sergio Mattarella Monday.
Salvini, leader of the anti-immigrant, euroskeptic Lega party, confirmed the deal over the leadership on Sunday, posting a message on Facebook stating, "We've closed the deal on the prime minister and ministers this morning."
The Lega leader did not give the names of the candidates but Conte is expected to be premier with Salvini taking the interior minister post and Di Maio becoming a minister for economic development or labor (and a possible melding of the two posts), according to Italian newspapers. The economy ministry would reportedly go to Giancarlo Giorgetti.
Inconclusive election in March Di Maio and Salvini's decision to elect a prime minister rather than take the role themselves comes after a delicate process of negotiation in a bid to form a coalition government in Italy after an inconclusive election in March. Obstacles have been presented by political alliances and antipathies along the way.
M5S was the single most popular party in the election but Lega was the most popular party in a coalition of far-right and center-right parties, which included former Prime Minister Silvio Berlusconi's Forza Italia party.
After multiple insults traded between Berlusconi and M5S' Di Maio, however, a possible coalition between M5S and the center-right coalition looked unlikely, leaving Lega's Salvini to take the lead and Berlusconi and other coalition partners seemingly out in the cold .
The alliance between Lega and M5S has yet to be tested, however, and could spell trouble for Europe with the maverick parties announcing Friday plans to increase public spending . They are also expected to call for an end to sanctions on Russia and want to renegotiate how much Italy pays into the EU budget — all plans that could create headaches for the European Union and euro zone. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/21/italys-next-prime-minister-could-be-a-mostly-unknown-law-professor.html |
Remains On-Track to Open 20+ Veterinary Services Clinic in 2018
Company Reiterates Outlook for Full Year 2018
EAGLE, Idaho, PetIQ, Inc. (“PetIQ” or the “Company”) (Nasdaq:PETQ), a leading pet medication and wellness company, today reported financial results for its
First Quarter 2018 Highlights Compared to Prior Year Period
Net sales were $115.1 million, an increase of 71.7% year-over-year Net loss was $4.0 million Adjusted EBITDA was $5.4 million
Cord Christensen, PetIQ’s Chairman and Chief Executive Officer commented, “We are very pleased with our start to the year which illustrates the strength of our diversified business model across products, services, and sales channels. We achieved record quarterly financial results, despite facing an extremely cold start to spring that effected the flea and tick category. This quarter also represented a significant corporate milestone for us with our strategic entrance into the large and rapidly growing veterinary services industry through our acquisition of VIP. We are quickly implementing our “Follow the Pets” growth initiatives and opened two VetIQ wellness center locations during the quarter and remain on-track to open 20 by the end of the second quarter. Our results show that PetIQ has created a differentiated business model, solely focused on the importance of offering regular, convenient access and affordable choice for pet preventive and wellness veterinarian products and services, which provides us with numerous opportunities to drive growth and returns for our shareholders.”
First Quarter 2018 Financial Results
Net sales increased 71.7% to $115.1 million for the first quarter of 2018, compared to $67.0 million for the same period in the prior year. Product segment sales were $97.9 million and the Services segment sales were $17.2 million in the first quarter of 2018. The increase in net sales reflects growth in existing and new retail partners and the expansion of the Company’s product and services offerings.
Gross profit was $15.9 million, an increase of 30.2%, as compared to $12.2 million in the same period last year. Gross profit includes a $1.5 million purchase accounting adjustment to fair value inventory. Excluding the inventory fair value adjustment, adjusted gross margin for the quarter was 15.1%, compared to 18.2% for the first quarter last year. Gross margin was impacted by 210 basis points of items that will not recur consisting of 70 basis points from the adoption of ASC 606 and 140 basis points from the fill order margin for product launch of PetLock Max and Advecta 3 in first quarter of 2017. The remaining 100 basis point change is related to mix shift towards distributed products.
Net loss was $4.0 million for the first quarter of 2018 with adjusted net income of $1.3 million. Adjusted net income includes $3.2 million in transaction costs associated with the acquisition of VIP, a purchase accounting inventory adjustment of $1.5 million, and an additional $0.5 million, of stock-based compensation expense, a fair value adjustment of a contingent note, clinic opening costs, integration expenses and costs associated with the discontinued clinics, partially offset by a tax benefit. This compares to adjusted net income of $4.3 million in the prior year period.
Adjusted EBITDA was $5.4 million for the first quarter of 2018 compared to $5.0 million guidance provided in early April. Adjusted EBITDA margin was 4.7%.
Adjusted net income, EBITDA and adjusted EBITDA are Non-GAAP financial measures defined under “Non-GAAP Measures,” and are reconciled to net income in the financial tables that accompany this release.
2018 Outlook
PetIQ reiterated the following fiscal 2018 financial outlook:
Consolidated net sales of $450 million to $500 million, an increase of 69% to 87% year-over-year Adjusted EBITDA of $40 million to $45 million, an increase of 79% to 102% year-over-year*
*The Company does not provide guidance for the most directly comparable GAAP measure, net income, and similarly cannot provide a reconciliation between its forecasted adjusted EBITDA and net income metrics without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future financial results.
Segment Review
As a result of the acquisition of VIP, the Company has redefined its two reporting segments to align its external financial reporting with its operating and internal financial model. The two reportable segments are (i) Products, which consists of the legacy PetIQ domestic operations and VIP’s product distribution business aggregated with International operations, and (ii) Services, which consists of all veterinary services provided by the Company directly to consumers.
Products: For the first quarter of 2018, Product segment net sales and operating income were $97.9 million and $8.9 million, respectively. This compare to Product segment net sales and operating income of $67.0 million and $9.2 million, respectively, for the first quarter of 2017. Comparability was impacted by the ASC 606 adoption.
Services: For the first quarter of 2018, Service segment net sales and operating loss were $17.2 million and $0.4 million, respectively. Services operating income was impacted by the purchase accounting adjustment related to acquired inventory. As a result of the ongoing integration of VIP, the Company discontinued approximately 370 host locations for mobile clinics after the end of the first quarter that did not meet its operating performance criteria. These discontinued clinics produced $0.4 million in service revenue and generated an operating loss of approximately $0.4 million during the first quarter of 2018. The Company has also optimized the frequency of certain mobile clinics and will continue to adjust these in real-time to maximize unit-level profitability. The Company opened two VetIQ wellness centers in the first quarter of 2018 and remains on track to open 20 VetIQ locations by the end of the second quarter of 2018.
Cash and Debt
As of March 31, 2018, the Company had cash and cash equivalents of $4.7 million, compared to $37.9 million at December 31, 2017. The Company’s long-term debt balance, which is largely comprised of its revolving credit facility and term loan, was $126.9 million as of March 31, 2018, compared to $17.2 million at December 31, 2017. The decrease in cash versus the prior year period is primarily due to the acquisition of VIP, which closed on January 17, 2018.
Adoption of New Revenue Recognition Standard
In the first quarter of 2018, the Company adopted the new revenue recognition standard (“ASC 606”) using the modified retrospective adoption method. The cumulative effect of adopting this guidance resulted in an adjustment to opening accumulated deficit of $0.3 million. This change will have no effect on 2017 results and prior periods will not be restated. This change will reduce net sales and profitability in the first and second quarters of 2018, with an offsetting increase in net sales and profitability in the third and fourth quarters, relative to past practice. The Company will also classify certain costs associated with the display of product as cost of goods sold at the point in time in the transfer of control to a customer occurs. Previously the Company had accounted for these costs as merchandising expenses in the period in which the displays were utilized.
Conference Call and Webcast
The Company and webcast where members of the executive management team will discuss these results with additional comments and details today, May 15, 2018, at 4:30 p.m. ET. The conference call will be available live over the Internet through the “Investors” section of the Company’s website at www.PetIQ.com . To participate on the live call listeners in North America may dial 877-451-6152 and international listeners may dial 201-389-0879.
A replay of the conference call will be archived on the Company’s website and telephonic playback will be available from 7:30 p.m. ET, May 15, 2018, through June 5, 2018. North American listeners may dial 844-512-2921 and international listeners may dial 412-317-6671 the passcode is 13679610.
About PetIQ
PetIQ is a leading, rapidly growing pet health and wellness company. Through over 40,000 points of distribution across retail and e-commerce channels, PetIQ and VIP Petcare, a wholly-owned subsidiary, have a mission to make pet lives better by educating pet parents on the importance of offering regular, convenient access and affordable choices for pet preventive and wellness veterinary products and services. PetIQ believes that pets are an important part of the family and deserve the best products and care we can give them. For more information, visit www.PetIQ.com .
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could" and similar expressions. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances, or achievements expressed or implied by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, our ability to grow our business through acquisitions; our ability to integrate, manage and expand VIP’s business; our dependency on a limited number of customers; our ability to implement our growth strategy effectively; our ability to achieve or sustain profitability; competition from veterinarians and others in our industry; reputational damage to our brands; economic trends and spending on pets; the effectiveness of our marketing and trade promotion programs; recalls or withdrawals of our products or product liability claims; our ability to manage our manufacturing and supply chain effectively; disruptions in our manufacturing and distribution chains; our ability to introduce new products and improve existing products; our failure to protect our intellectual property; costs associated with governmental regulation; risks related to our international operations; our ability to keep and retain key employees; and the risks set forth under the “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017.
Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or operating results. The forward-looking statements speak only as of the date on which they are made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Consequently, you should not place undue reliance on forward-looking statements.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. GAAP, PetIQ uses the following non-GAAP financial measures: Adjusted net income (loss), EBITDA and Adjusted EBITDA.
Adjusted net income consists of GAAP Net income (loss) adjusted for tax expense, costs to become a public company, acquisitions expenses, purchase accounting adjustments, integration costs and costs of discontinued clinics, new clinic launch expense, and stock based compensation expense. Adjusted Net Income is utilized by management: (i) to compare operations of the Company prior to our initial public offering and (ii) to evaluate the effectiveness of our business strategies.
EBITDA represents net income (loss) before interest, income taxes, and depreciation and amortization. Adjusted EBITDA represents EBITDA plus management fees, stock based compensation expense, acquisition expenses, and purchase accounting adjustments, fair value adjustments to contingent notes, integration costs and costs of discontinued clinics, and new clinic launch expense. Adjusted EBITDA adjusts for transactions that management does not believe are representative of our core ongoing business. Adjusted EBITDA Margin is Adjusted EBITDA stated as a percentage of Net sales. Adjusted EBITDA is utilized by management: (i) as a factor in evaluating management's performance when determining incentive compensation and (ii) to evaluate the effectiveness of our business strategies. The Company presents EBITDA because it is a necessary component for computing Adjusted EBITDA.
We believe that the use of Adjusted Net income, EBITDA and Adjusted EBITDA provide additional tools for investors to use in evaluating ongoing operating results and trends. In addition, you should be aware when evaluating Adjusted Net Income, EBITDA and Adjusted EBITDA that in the future we may incur expenses similar to those excluded when calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by these or other unusual or non-recurring items. Our computation of Adjusted Net Income, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies do not calculate Adjusted Net Income, EBITDA and Adjusted EBITDA in the same manner. Our management does not, and you should not, consider Adjusted Net Income, EBITDA or Adjusted EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted Net Income, EBITDA and Adjusted EBITDA is that they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. See a reconciliation of Non-GAAP measures to net income, the most comparable GAAP measure, in the financial tables that accompany this release.
CONTACT:
Investor Relations Contact: Media Relations Contact: Katie Turner Cory Ziskind ICR ICR 646-277-1228 646-277-1232 [email protected] [email protected]
PetIQ, Inc.
Condensed Consolidated Balance Sheets
($’s in 000’s except for share and per share amounts) March 31, 2018 December 31, 2017 Current assets (unaudited) 4,714 $ 37,896 Accounts receivable, net 58,962 21,759 Inventories 79,239 44,056 Supplier prepayments 2,215 3,173 Other current assets 3,389 1,991 Total current assets 148,519 108,875 Property, plant and equipment, net 25,275 15,000 Deferred tax assets 16,091 5,994 Other non-current assets 3,092 2,646 Intangible assets, net 92,036 3,266 Goodwill 117,389 5,064 Total assets $ 402,402 $ 140,845 Liabilities and equity Current liabilities Accounts payable $ 55,370 $ 14,234 Accrued wages payable 2,531 1,811 Accrued interest payable 927 115 Other accrued expenses 2,344 1,880 Current portion of long-term debt and capital leases 2,132 151 63,304 18,191 Long-term debt 126,915 17,183 Capital leases, less current installments 1,991 389 Contingent notes 9,641 — Other non-current liabilities 237 238 Total non-current liabilities 138,784 17,810 Commitments and contingencies 137,916 70,873 Class A common stock, par value $0.001 per share, 125,000,000 shares authorized, 16,132,043 and 13,222,583 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively 16 13 Class B common stock, par value $0.001 per share, 8,401,521 shares authorized, 8,401,521 and 8,268,188 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively 8 8 Accumulated deficit (5,696 ) (3,493 ) Accumulated other comprehensive loss (427 ) (687 ) Total stockholders' equity 131,817 66,714 Non-controlling interest 68,497 38,130 Total equity 200,314 104,844 Total liabilities and equity $ 402,402 $ 140,845
PetIQ, Inc.
Condensed Consolidated Statements of Income (Loss)
(Unaudited, $’s in 000’s, except for per share amounts) For the three months ended March 31, 2018 March 31, 2017 Product sales $ 97,851 $ 67,029 Services revenue 17,215 — Total net sales 115,066 67,029 Cost of products sold 84,586 54,829 Cost of services 14,597 — Total cost of sales 99,183 54,829 Gross profit 15,883 12,200 General and administrative expenses 18,968 7,405 Operating (loss) income (3,085 ) 4,795 Interest expense, net (1,765 ) (464 ) Foreign currency loss, net (78 ) (49 ) Other expense, net (96 ) (3 ) Total other expense, net (1,939 ) (516 ) Pretax net (loss) income (5,024 ) 4,279 Income tax (expense) benefit 1,067 — Net (loss) income (3,957 ) 4,279 Net (loss) income attributable to non-controlling interest (1,929 ) 4,279 Net (loss) attributable to PetIQ, Inc. $ (2,028 ) $ — Net loss per share attributable to PetIQ, Inc. Class A common stock (1) Basic $ (0.14 ) — Diluted $ (0.14 ) — Weighted average shares of Class A common stock outstanding (1) Basic 14,574,883 — Diluted 14,574,883 — (1) Basic and Diluted earnings per share is applicable only for periods after the Company’s IPO in July 2017.
PetIQ, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, $’s in 000’s) For the three months ended March 31, 2018 March 31, 2017 Cash flows from operating activities Net (loss) income $ (3,957 ) $ 4,279 Adjustments to reconcile net income (loss) to net cash (used in) operating activities Depreciation and amortization of intangible assets and loan fees 2,522 851 Foreign exchange loss on liabilities 53 8 (Gain) loss on disposition of property (20 ) 29 Stock based compensation expense 698 — Deferred tax adjustment (1,067 ) — Other non-cash activity (193 ) — Changes in assets and liabilities Accounts receivable (28,997 ) (9,515 ) Inventories (27,238 ) (13,813 ) Prepaid expenses and other assets 16 (1,765 ) Accounts payable 22,508 3,334 Accrued wages payable (482 ) (444 ) Other accrued expenses (2,274 ) 181 Net cash used in operating activities (38,431 ) (16,855 ) Cash flows from investing activities Proceeds from disposition of property, plant, and equipment 57 — Purchase of property, plant, and equipment (2,224 ) (518 ) Business acquisition (net of cash acquired) (91,986 ) — Net cash used in investing activities (94,153 ) (518 ) Cash flows from financing activities Proceeds from issuance of long-term debt 162,278 74,800 Principal payments on long-term debt (59,533 ) (56,770 ) Principal payments on capital lease obligations (242 ) (28 ) Tax distributions to Continuing LLC Owners (540 ) — Payment of deferred financing fees and debt discount (2,613 ) (25 ) Net cash provided by financing activities 99,350 17,977 Net change in cash and cash equivalents (33,234 ) 604 Effect of exchange rate changes on cash and cash equivalents 52 5 Cash and cash equivalents, beginning of period 37,896 767 Cash and cash equivalents, end of period $ 4,714 $ 1,376
PetIQ, Inc.
Reconciliation between Net Income (loss) and Adjusted EBITDA
(Unaudited) For the three months ended $'s in 000's March 31, 2018 March 31, 2017 Net (loss) income $ (3,957 ) $ 4,279 Plus: Tax (benefit) (1,067 ) — Depreciation 1,250 536 Amortization 1,140 260 Interest 1,765 464 EBITDA $ (869 ) $ 5,539 Acquisition costs (1) 3,215 — Management fees (2) — 190 Stock based compensation expense 698 — Purchase accounting adjustment to inventory 1,502 — Fair value adjustment of contingent note 141 — Integration costs and costs of discontinued clinics 371 — New clinic launch expenses (3) 365 — Adjusted EBITDA $ 5,423 $ 5,729 Adjusted EBITDA Margin 4.7 % 8.5 % (1) Acquisition costs relating to our acquisition of VIP, which was completed during the three months ended March 31, 2018.
(2) Represents annual fees paid pursuant to our management agreements with Eos, Highland and Labore. The management agreements terminated in connection with our IPO in July 2017;
(3) Clinic launch expenses represent the nonrecurring costs to open new veterinary wellness centers, primarily employee costs, training, marketing, and rent prior to opening for business.
PetIQ, Inc.
Reconciliation between Net Income (loss) and Adjusted Net Income (loss)
(Unaudited) Three months ended $'s in 000's March 31, 2018 March 31, 2017 Net (loss) income $ (3,957 ) $ 4,279 Plus: Acquisition costs (1) 3,215 — Tax (benefit) (1,067 ) — Stock based compensation expense 698 — Purchase accounting adjustment to inventory 1,502 — Fair value adjustment of contingent note 141 — Integration costs and costs of discontinued clinics 371 — New clinic launch expenses (2) 365 — Adjusted Net income $ 1,268 $ 4,279 (1) Acquisition costs relating to our acquisition of VIP, which was completed during the three months ended March 31, 2018.
(2) Clinic launch expenses represent the nonrecurring costs to open new veterinary wellness centers, primarily employee costs, training, marketing, and rent prior to opening for business.
Source:PetIQ, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/15/globe-newswire-petiq-inc-reports-first-quarter-2018-financial-results.html |
(Adds analyst comments)
SAN FRANCISCO, May 1 (Reuters) - Facebook Inc's announcement on Tuesday that it would add dating features to the world's largest social network sent shares of rival dating sites tumbling, as investors expressed concern about the entry of the much larger player.
Facebook Chief Executive Mark Zuckerberg announced the latest addition at the company's developer conference, one of a host of new features the tech company is adding in order to get users to spend more time on the site.
Shares of Match Group Inc, the owner of popular dating app Tinder, fell as much as 21 percent after the news, while IAC, Match's parent company, dropped nearly 14 percent.
Sparks Networks, owner of JDate and ChristianMingle, also fell 7 percent.
"Clearly there's significant potential for Facebook to be a big problem for Match," said Atlantic Equities analyst James Cordwell.
"But the initial functionality looks relatively basic compared to those offered by Match's services, so the impact Facebook has on the dating space will be down to how well it executes in this area," Cordwell added.
The difficulty of creating a popular dating site was also cited by Daniel Kurnos, an analyst at the Benchmark Company, who cautioned it was not an overnight project and one that requires much more than sheer machine learning.
"I think the reaction is a combination of the Facebook news along with concerns that Match was getting toppy," or expensive, Kurnos told Reuters. "I can't see Facebook supplanting Match any time soon too big a moat."
Facebook connects friends and acquaintances but until now, has not delved into the domain of match-making, where a host of competitors offer services, from privately held eHarmony to IAC-owned OkCupid and PlentyOfFish.
(Reporting by Arjun Panchadar and Alexandria Sage Additional reporting by Munsif Vengattil in Bengaluru; Editing by Sai Sachin Ravikumar) | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/01/reuters-america-update-1-dating-sites-match-iac-fall-after-facebook-enters-match-making.html |
May 21 (Reuters) - Evotec Ag:
* DGAP-ADHOC: EVOTEC AND CELGENE ENTER INTO STRATEGIC ONCOLOGY PARTNERSHIP
* UNDER TERMS OF AGREEMENT, EVOTEC WILL RECEIVE AN UPFRONT PAYMENT OF $65 MILLION
* CELGENE RECEIVES EXCLUSIVE OPT-IN RIGHTS TO LICENSE WORLDWIDE RIGHTS TO ALL PROGRAMMES DEVELOPED WITHIN THIS COLLABORATION
* EVOTEC MAY BE ELIGIBLE TO RECEIVE SIGNIFICANT MILESTONE PAYMENTS AS WELL AS TIERED ROYALTIES ON EACH LICENSED PROGRAMME Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-evotec-and-celgene-enter-into-stra/brief-evotec-and-celgene-enter-into-strategic-oncology-partnership-idUSASO00051G |
Joanna Geraghty Appointed President & COO
NEW YORK--(BUSINESS WIRE)-- JetBlue Airways Corp. (Nasdaq: JBLU) today announced it has named Joanna Geraghty to president and chief operating officer, along with other changes to the company’s senior leadership in the coming weeks designed to enhance day-to-day operations and better support execution of its longer term strategic initiatives.
Geraghty will report to Robin Hayes, who will remain chief executive officer and who will continue to oversee the company’s long-term strategy, its structural cost program and efforts to achieve superior margins, and its focus on expanding and evolving into new businesses such as JetBlue Travel Products. Geraghty will manage the day-to-day airline operation, focusing on efforts to deliver a leading customer service experience, execute key structural cost initiatives and enhance operational performance. She will also oversee JetBlue’s commercial team, led by Marty St. George, JetBlue’s executive vice president, commercial and planning.
Geraghty joined JetBlue in 2005 and was most recently executive vice president, customer experience, responsible for delivering the JetBlue experience to millions of customers annually through her leadership of 15,000 customer-facing crewmembers. She served as executive vice president, chief people officer from 2010-2014 and was previously the airline’s vice president and associate general counsel and director of litigation and regulatory affairs. Geraghty is president of the JetBlue Foundation and chairperson of the board of Concern Worldwide, an international not for profit. Prior to joining JetBlue she was a partner at a New York law firm.
“JetBlue has succeeded in this incredibly competitive industry with an unwavering commitment to our crewmembers and our customers, both of which fuel shareholder value. We first disrupted this industry nearly 20 years ago and we will continue to do so,” said Hayes. “This new structure will allow focus on the core airline business while providing an organizational structure to innovate and grow in the travel and vacations space. Joanna has played an important role in JetBlue, and I look forward to working closely with her for many years to come.”
“I’m honored and humbled to take on this role and I am committed to supporting our nearly 22,000 crewmembers at JetBlue as we continue to prove why we are the airline that inspires humanity,” said Geraghty. “We believe we can be a great business for our owners, a great place to work for our crewmembers, and the best airline for customers. Our passion for the crewmember and customer experience, combined with our commitment to low costs, makes us a unique player in the industry with a lot of runway ahead.”
Geraghty received her undergraduate degree from the College of the Holy Cross and her master’s in international relations and juris doctor from Syracuse University.
Leaders with additional responsibilities include:
Warren Christie has been named senior vice president safety, security and fleet operations reporting to Geraghty. His expanded role adds technical operations to his existing responsibilities that include flight operations, safety and security. A pilot himself, Christie joined the airline in 2003 and has served in various positions including senior vice president, safety, security and air operations; senior vice president, regulatory and training; vice president, operations planning and training; and vice president, JetBlue University. He is a graduate of the University of Notre Dame and served for nearly two decades in the U.S. Navy. He currently serves as vice chair of the board of the Boys & Girls Clubs of Central Florida and a member of the board of the Arnold Palmer Medical Center Foundation. Ian Deason has been named senior vice president, customer experience, adding inflight and customer support to his existing leadership of the airports team. In this new position Deason will report to Geraghty and lead 15,000 customer-facing Crewmembers with a shared purpose of delivering a personal, helpful and simple travel experience. In addition to the operating teams, Deason will also lead JetBlue’s customer experience programs group working to reimagine the future travel experience. He joined JetBlue in 2006 and has held several commercial and operational leadership roles. Most recently, he served as senior vice president, airports experience where he grew the airport footprint to more than 100 cities while achieving industry-leading safety performance. He serves on the board of EdVestors, a Boston-based organization focused on accelerating substantive improvement in urban schools, and is on the advisory board for ClimaCell, a weather technology business dedicated to improving the safety and efficiency of airline operations. He received his undergraduate degree from Northwestern University and an MBA from Harvard Business School.
Jeff Martin, currently executive vice president, operations, will take on a senior advisor role for JetBlue to ensure a smooth transition following this reorganization.
“I’d like to thank Jeff for his many years of service to JetBlue,” Hayes said. “Jeff has done an incredible job leading the safe and secure operation of the airline while helping evolve our fleet, invest in Tech Ops, and position us as a leader in NextGen. He has made a big mark on JetBlue and in particular I want to thank him for being a true champion as we transitioned to working with ALPA and secured our first pilot agreement.”
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale - Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 40 million customers a year to 102 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. For more information please visit www.jetblue.com .
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Media:
JetBlue Corporate Communications
+1 718-709-3089
[email protected]
Source: JetBlue Airways Corp. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/18/business-wire-jetblue-announces-senior-leadership-changes.html |
May 5, 2018 / 11:07 PM / Updated 4 hours ago British royal family releases first official photographs of Prince Louis Reuters Staff 2 Min Read
LONDON (Reuters) - Britain’s royal family released the first two official photographs of newly born Prince Louis on Sunday, one of which shows him being held by his sister Princess Charlotte, aged three. Britain's Princess Charlotte and her brother Prince Louis are seen in this photograph released by Kensington Palace, and taken by Britain's Catherine, Duchess of Cambridge, on Princess Charlotte's third birthday, at Kensington Palace in London, Britain May 2, 2018. Picture taken May 2, 2018. Catherine, Duchess of Cambridge/Courtesy of Kensington Palace/Handout via REUTERS
Louis, who is fifth in line to the British throne, was born on April 23 weighing 8lbs 7oz (3.83 kg).
Both the photographs were taken at Kensington Palace by Kate, the children’s mother and wife of Prince William, Queen Elizabeth’s grandson.
The first photograph, which the palace said was taken on April 26, shows Louis propped up against a white cushion, wearing a white jumper and trousers. Slideshow (2 Images)
The second photograph, taken on May 2, Charlotte’s third birthday, shows the princess holding her sleeping younger brother affectionately.
Due to a 2013 change in the law, Charlotte is the first British princess for whom the arrival of a younger brother does not mean being demoted down the line of succession.
Palace officials said Louis would not join the rest of his family at the May 19 wedding of his uncle, Prince Harry, to U.S. actress Meghan Markle. Reporting by David Milliken; Editing by Stephen Powell | ashraq/financial-news-articles | https://uk.reuters.com/article/us-britain-royals/british-royal-family-releases-first-official-photographs-of-prince-louis-idUKKBN1I60X9 |
CAYCE, S.C., May 29, 2018 /PRNewswire/ -- SCANA Corporation (NYSE: SCG) announced today that it has established a record date of May 31, 2018, and a meeting date of July 31, 2018, for a special meeting of its shareholders to consider and vote on a proposal to approve the previously announced stock-for-stock merger with Dominion Energy, Inc. (NYSE: D).
SCANA's Special Shareholder Meeting is scheduled for 9 a.m. EDT on July 31, 2018, at the Columbia Conference Center, 169 Laurelhurst Avenue, Columbia, SC 29210.
Additionally, SCANA separately established a record date of July 25, 2018, and a meeting date of September 12, 2018, for its 2018 Annual Shareholder Meeting. The 2018 Annual Shareholder Meeting is scheduled for 9 a.m. EDT on September 12, 2018, at the Columbia Conference Center, 169 Laurelhurst Avenue, Columbia, SC 29210.
SCANA shareholders of record at the close of business on the respective record dates will be entitled to receive notice of and vote on matters presented at the applicable meetings.
PROFILE
SCANA Corporation, headquartered in Cayce, SC, is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. Information about SCANA and its businesses is available on the company's website at www.scana.com .
SAFE HARBOR STATEMENT
Statements included in this press release which are not statements of historical fact are intended to be, and are hereby identified as, "forward-looking statements" for purposes of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements concerning the proposed merger with Dominion Energy, recovery of Nuclear Project abandonment costs, key earnings drivers, customer growth, environmental regulations and expenditures, leverage ratio, projections for pension fund contributions, financing activities, access to sources of capital, impacts of the adoption of new accounting rules and estimated capital and other expenditures. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "should," "expects," "forecasts," "plans," "targets," "anticipates," "believes," "estimates," "projects," "predicts," "potential" or "continue" or the negative of these terms or other similar terminology. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements due to the information being of a preliminary nature and subject to further and/or continuing review and adjustment. Other important factors that could cause such material differences include, but are not limited to, the following: (1) the occurrence of any event, change or other circumstances that could give rise to the failure by SCANA to consummate the proposed merger with Dominion Energy; (2) the ability of SCE&G to recover through rates the costs expended on Unit 2 and Unit 3, and a reasonable return on those costs, under the abandonment provisions of the BLRA or through other means; (3) uncertainties relating to the bankruptcy filing by WEC and WECTEC; (4) further changes in tax laws and realization of tax benefits and credits, and the ability or inability to realize credits and deductions, particularly in light of the abandonment of Unit 2 and Unit 3; (5) legislative and regulatory actions, particularly changes related to electric and gas services, rate regulation, regulations governing electric grid reliability and pipeline integrity, environmental regulations including any imposition of fees or taxes on carbon emitting generating facilities, the BLRA, and any actions affecting the abandonment of Unit 2 and Unit 3; (6) current and future litigation, including particularly litigation or government investigations or actions involving or arising from the construction or abandonment of Unit 2 and Unit 3 or arising from the proposed merger with Dominion Energy; (7) the impact of any decision by the Company to pay quarterly dividends to its shareholders or the reduction, suspension or elimination of the amount thereof; (8) the results of short- and long-term financing efforts, including prospects for obtaining access to capital markets and other sources of liquidity, and the effect of rating agency actions on the cost of and access to capital and sources of liquidity of SCANA and its subsidiaries (the Company); (9) the ability of suppliers, both domestic and international, to timely provide the labor, secure processes, components, parts, tools, equipment and other supplies needed which may be highly specialized or in short supply, at agreed upon quality and prices, for our construction program, operations and maintenance; (10) the results of efforts to ensure the physical and cyber security of key assets and processes; (11) changes in the economy, especially in areas served by subsidiaries of SCANA; (12) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial markets; (13) the impact of conservation and demand side management efforts and/or technological advances on customer usage; (14) the loss of electricity sales to distributed generation, such as solar photovoltaic systems or energy storage systems; (15) growth opportunities for SCANA's regulated and other subsidiaries; (16) the effects of weather, especially in areas where the generation and transmission facilities of the Company are located and in areas served by SCANA's subsidiaries; (17) changes in SCANA's or its subsidiaries' accounting rules and accounting policies; (18) payment and performance by counterparties and customers as contracted and when due; (19) the results of efforts to license, site, construct and finance facilities, and to receive related rate recovery, for generation and transmission; (20) the results of efforts to operate the Company's electric and gas systems and assets in accordance with acceptable performance standards, including the impact of additional distributed generation; (21) the availability of fuels such as coal, natural gas and enriched uranium used to produce electricity; the availability of purchased power and natural gas for distribution; the level and volatility of future market prices for such fuels and purchased power; and the ability to recover the costs for such fuels and purchased power; (22) the availability of skilled, licensed and experienced human resources to properly manage, operate, and grow the Company's businesses, particularly in light of uncertainties with respect to legislative and regulatory actions surrounding recovery of Nuclear Project costs and the announced potential merger; (23) labor disputes; (24) performance of SCANA's pension plan assets and the effect(s) of associated discount rates; (25) inflation or deflation; (26) changes in interest rates; (27) compliance with regulations; (28) natural disasters, man-made mishaps and acts of terrorism that directly affect our operations or the regulations governing them; and (29) the other risks and uncertainties described from time to time in the reports filed by SCANA with the SEC.
SCANA disclaims any obligation to update any forward-looking statements.
Capitalized terms not otherwise defined herein have the meanings as set forth in the Company's most recent periodic report filed with the Securities and Exchange Commission.
SCANA Corporation Contacts:
Media Contact:
Investor Contact:
Eric Boomhower
Bryant Potter
(803) 217-7701
(803) 217-6916
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SOURCE SCANA Corporation | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/29/pr-newswire-scana-corporation-sets-date-for-a-special-shareholder-meeting-for-vote-on-merger-agreement-with-dominion-energy.html |
TransMontaigne will expand its Brownsville, Texas operations, supported by the execution of long-term, fee-based terminaling and pipeline agreements for new storage and additional pipeline capacity Net earnings for the first quarter of 2018 totaled $12.2 million, compared to $13.0 million in the prior year first quarter, which includes increases in depreciation and amortization and interest expense Achieved record levels of both revenue and EBITDA for the first quarter 2018 Consolidated EBITDA for the first quarter of 2018 totaled $32.9 million, compared to $27.3 million in the prior year first quarter Distributable cash flow for the first quarter of 2018 totaled $23.0 million, compared to $23.5 million in the prior year first quarter Distribution coverage for first quarter 2018 was 1.39x; leverage as of March 31, 2018 was 4.35x on an as-adjusted basis for the acquisition of the West Coast terminal facilities Increased the quarterly cash distribution for the tenth consecutive quarter to $0.785, reflecting an 8.3% increase over prior year quarterly distribution
DENVER--(BUSINESS WIRE)-- TransMontaigne Partners L.P. (NYSE:TLP) (the Partnership, we, us, our) today announced first quarter 2018 financial and operating results.
“Our business continued to perform extremely well during the first quarter, achieving record levels of both revenue and EBITDA,” said Fred Boutin, Chief Executive Officer of TransMontaigne Partners. “Our sequential growth during the first quarter was driven by the continued geographic and organic expansion of our platform, including our recent West Coast terminal acquisition, the completion of our Collins terminal Phase I expansion and successful contracting efforts across our terminal portfolio. Our organic and acquisition expansion initiatives have resulted in a more diverse platform with greater scale, driving continued growth opportunities for the Partnership, including our ability to deliver our tenth consecutive quarter of distribution growth.”
“Today, I am excited to announce the entry into long-term customer contracts supporting new growth projects in Brownsville,” continued Mr. Boutin. “These projects involve construction of new tankage and related facilities and the conversion of our Diamondback Pipelines from propane service to gasoline and diesel. These are in addition to our recently announced growth projects of 870,000 barrels of new storage capacity at Collins and 125,000 barrels of new storage capacity at our recently acquired Richmond terminal. We remain committed to additional growth in our business over the long-term, and continue to execute on our expansion plans, including growth through asset optimization, organic expansions and potential acquisitions.”
FINANCIAL RESULTS
Revenue for the first quarter of 2018 totaled $56.4 million, an increase of $11.5 million, or approximately 26%, compared to $44.9 million for the first quarter of 2017. Consolidated EBITDA totaled $32.9 million for the first quarter of 2018, representing an increase of $5.6 million, or approximately 21%, compared to $27.3 million for the first quarter of 2017. The improvement compared to the prior year was primarily attributed to the acquisition of the West Coast terminals on December 15, 2017 and our Collins Phase I terminal expansion coming fully on-line in June 2017.
An overview of our financial performance for the quarter ended March 31, 2018 compared to the quarter ended March 31, 2017, includes:
Operating income for the quarter ended March 31, 2018 was approximately $19.1 million compared to $15.4 million for the quarter ended March 31, 2017. Changes in the primary components of operating income are as follows: Revenue increased approximately $11.5 million to $56.4 million due to our December 15, 2017 acquisition of the West Coast terminals adding approximately $9.5 million to revenue. In addition there were increases in revenue at our River and Southeast terminals of approximately $0.1 million and $3.1 million, respectively, partially offset by decreases in revenue at our Brownsville terminals of approximately $1.1 million. Revenue for the Gulf Coast and Midwest terminals were consistent. Direct operating costs and expenses increased approximately $3.6 million to $20.1 million due to our acquisition of the West Coast terminals adding approximately $3.1 million to expense. In addition there were increases in direct operating costs and expenses at our Gulf Coast, River and the Southeast terminals of approximately $0.3 million, $0.2 million, and $0.9 million, respectively, partially offset by decreases in our Brownsville terminals of approximately $0.8 million. Direct operating costs and expenses for the Midwest terminals was consistent. General and administrative expenses increased approximately $1.0 million to $5.0 million. Insurance expenses increased approximately $0.2 million to $1.2 million. Equity-based compensation expense increased approximately $0.2 million to $2.0 million. Depreciation and amortization expenses increased approximately $3.1 million to $11.8 million. Earnings from unconsolidated affiliates increased approximately $0.3 million to $2.9 million. Net earnings were $12.2 million for the quarter ended March 31, 2018 compared to $13.0 million for the quarter ended March 31, 2017. The decrease was principally due to the net increases in quarterly operating income discussed above, more than offset by an increase in interest expense of approximately $4.3 million. The increase in interest expense is attributable to financing the acquisition of the West Coast terminals, the issuance of senior notes and increases in LIBOR rates. Quarterly net earnings per limited partner unit was $0.52 per unit for the quarter ended March 31, 2018 compared to $0.62 per unit for the quarter ended March 31, 2017. Consolidated EBITDA for the quarter ended March 31, 2018 was $32.9 million compared to $27.3 million for the quarter ended March 31, 2017. Distributable cash flow for the quarter ended March 31, 2018 was $23.0 million compared to $23.5 million for the quarter ended March 31, 2017. The distribution declared per limited partner unit was $0.785 per unit for the quarter ended March 31, 2018 compared to $0.725 per unit for the quarter ended March 31, 2017. We paid aggregate distributions of $16.6 million for the quarter ended March 31, 2018, resulting in a quarterly distribution coverage ratio of 1.39x.
RECENT DEVELOPMENTS
Expansion of our Brownsville operations. In the first quarter, we entered into terminaling services agreements with third parties for the construction by either the Partnership, or Frontera, of new facilities in Brownsville for the storage of gasoline, diesel and additives for further transportation by truck and the Diamondback Pipeline to the U.S./Mexico border. The Diamondback pipeline consists of an 8” pipeline that previously transported propane approximately 16 miles from our Brownsville, Texas facilities to the U.S./Mexico border and a 6” pipeline, which runs parallel to the 8” pipeline that has been idle and can be used to transport additional refined products. We expect the first tanks of the additional storage capacity under construction to be completed and placed into commercial service by the end of 2018. We expect to recommission the Diamondback pipeline and resume operations by the end of 2019, with the additional storage capacity being completed and placed into commercial service at the same time.
Due to rights of first refusal held by our Frontera joint venture, it is uncertain at this time whether our Brownsville terminaling expansion efforts will be constructed and owned by the Partnership or Frontera. The anticipated aggregate cost of the above terminaling and pipeline expansion projects is estimated to be approximately $60 million.
Expansion of our Collins bulk storage terminal. Our Collins/Purvis, Mississippi terminal complex is strategically located for the bulk storage market and is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems. We previously entered into long-term terminaling services agreements with various customers for approximately 2 million barrels of new tank capacity at our Collins terminal. The revenue associated with these agreements came on-line upon completion of the construction of the new tank capacity at various stages beginning in the fourth quarter of 2016 through the second quarter of 2017. The aggregate cost of the approximately 2 million barrels of new tank capacity was approximately $75 million. With the completion of our Phase I expansion, our Collins/Purvis terminal complex has current active storage capacity of approximately 5.4 million barrels.
In addition to the Phase I expansion at our Collins terminal, in the second half of 2017 we obtained an air permit for an additional 5 million barrels of capacity for a Phase II buildout. We have started the design and buildout of 870,000 barrels of new storage capacity supported by a new long-term, terminaling services agreement, which constitutes the beginning of a Phase II buildout. To facilitate our further expansion of Collins, we also entered into an agreement with Colonial Pipeline Company for significant improvements to the Colonial Pipeline receipt and delivery manifolds and our related receipt and delivery facilities. The improvements will result in significant increased flexibility for our Collins customers. The anticipated cost of the approximately 870,000 barrels of new storage capacity and our share of the improvements to the pipeline connections is approximately $55 million. We are currently in active discussions with several other existing and prospective customers regarding additional future capacity at our Collins terminal. We expect the first of the new tanks and the Colonial Pipeline Company improvements to come online in the first quarter of 2019.
Expansion of our West Coast terminals. On December 15, 2017, we acquired the West Coast terminals from a third party for a total purchase price of approximately $276.8 million. The West Coast terminals are two waterborne refined product and crude oil terminals located in the San Francisco Bay Area refining complex with a total of 64 storage tanks with approximately 5 million barrels of active storage capacity. The West Coast terminals have access to domestic and international crude oil and refined products markets through marine, pipeline, truck and rail logistics capabilities.
Pursuant to a new long-term terminaling services agreement, we have begun the construction of an additional 125,000 barrels of storage capacity at our Richmond West Coast terminal. The cost of constructing this new capacity is expected to be about $8 million. We are also pursuing other high-return investment opportunities similar to this at these terminals. We expect the first of the new tanks to come online in the fourth quarter of 2018.
Public offering of senior notes. On February 12, 2018, we completed the sale of $300 million of 6.125% senior notes, issued at par and due 2026. The senior notes were guaranteed on a senior unsecured basis by each of our wholly owned subsidiaries that guarantee obligations under our revolving credit facility. Net proceeds were used primarily to repay indebtedness under our revolving credit facility.
Third Amended and Restated Omnibus Agreement. Since the inception of the Partnership in 2005 we have been party to an omnibus agreement with the owner of our general partner, which agreement has been amended and restated from time to time. The omnibus agreement provides for the provision of various services for our benefit. The fees payable under the omnibus agreement to the owner of our general partner are comprised of (i) the reimbursement of the direct operating costs and expenses, such as salaries and benefits of operational personnel performing services on site at our terminals and pipelines, which we refer to as on-site employees, (ii) bonus awards to key personnel who perform services for the Partnership, which are typically paid in the Partnership’s units and are subject to the approval by the compensation committee and the conflicts committee of our general partner, and (iii) the administrative fee for the provision of various general and administrative services for the Partnership’s benefit such as legal, accounting, treasury, insurance administration and claims processing, information technology, human resources, credit, payroll, taxes, engineering, environmental safety and occupational health (ESOH) and other corporate services, to the extent such services are not outsourced by the Partnership.
In accordance with the Second Amended and Restated Omnibus Agreement and the prior versions thereto, if we acquire or construct additional facilities, the owner of our general partner may propose a revised administrative fee covering the provision of services for such additional facilities, subject to the approval by the conflicts committee of our general partner. In connection with our previously discussed Phase II expansion activity at our Collins terminal, the expansion of the Brownsville terminal and pipeline operations and the December 2017 acquisition of the West Coast facilities, on May 7, 2018, the Partnership, with the concurrence of the conflicts committee of our general partner, agreed to an annual increase in the aggregate fees payable to the owner of the general partner under the omnibus agreement of $3.6 million beginning May 13, 2018.
To effectuate this $3.6 million annual increase in the aggregate fees payable to the owner of the general partner, on May 7, 2018 the Partnership, with the concurrence of the conflicts committee of our general partner, entered into the Third Amended and Restated Omnibus Agreement. The effect of the change to the omnibus agreement is to allow the Partnership to assume the costs and expenses of personnel performing engineering and ESOH services for and on behalf of the Partnership and to receive an equal and offsetting decrease in the administrative fee. These costs and expenses are expected to approximate $8.9 million in 2018. We expect that a significant portion of the assumed engineering costs will be capitalized under generally accepted accounting principles.
Prior to the $3.6 million annual increase and the effective date of the Third Amended and Restated Omnibus Agreement, the annual administrative fee was approximately $13.7 million and included the costs and expenses of the personnel performing engineering and ESOH services. Subsequent to the $3.6 million annual increase and the effective date of the Third Amended and Restated Omnibus Agreement, the annual administrative fee will be approximately $8.4 million and the Partnership will bear the approximately $8.9 million costs and expenses of the personnel performing engineering and ESOH services for and on behalf of the Partnership.
The administrative fee under the Third Amended and Restated Omnibus Agreement is subject to an increase each calendar year tied to an increase in the consumer price index, if any, plus two percent. If we acquire or construct additional facilities, the owner of our general partner may propose a revised administrative fee covering the provision of services for such additional facilities, subject to approval by the conflicts committee of our general partner.
We do not directly employ any of the persons responsible for managing our business. We are managed by our general partner, and all of the officers of our general partner and employees who provide services to the Partnership are employed by TLP Management Services, a wholly owned subsidiary of ArcLight. TLP Management Services provides payroll and maintains all employee benefits programs on behalf of our general partner and the Partnership pursuant to the omnibus agreement. The omnibus agreement will continue in effect until the earlier of (i) ArcLight ceasing to control our general partner or (ii) the election of either us or the owner, following at least 24 months’ prior written notice to the other parties.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2018, our total long-term debt was $582.4 million, which included $290.2 million of outstanding borrowings on our $850 million revolving credit facility. For the trailing twelve months, on an as-adjusted basis for our acquisition of the West Coast terminals, our Consolidated EBITDA was $134.0 million, resulting in a debt to Consolidated EBITDA ratio of 4.35x. Consolidated EBITDA is a non-GAAP financial performance measure used in the calculation of the leverage ratio requirement under our revolving credit facility. See Attachment B hereto for a reconciliation of Consolidated EBITDA to net earnings. See also Attachment C hereto for a table showing the calculation of our total leverage ratio and interest coverage ratio and a reconciliation of Consolidated EBITDA to Cash flows provided by operating activities.
For the first quarter of 2018, we reported $6.5 million in total capital expenditures. As of March 31, 2018, remaining expenditures for approved expansion projects are estimated to be approximately $120 million, assuming our Frontera joint venture does not exercise its rights of first refusal related to our Brownsville terminaling expansion efforts. Approved expenditures include the construction costs associated with the expansion at our Collins, Brownsville and West Coast terminals, as further discussed above.
QUARTERLY DISTRIBUTION
The Partnership previously announced that it declared a distribution of $0.785 per unit for the period from January 1, 2018 through March 31, 2018. This $0.015 increase over the previous quarter reflects the tenth consecutive increase in the quarterly distribution and represents annual growth of 8.3% over the prior year first quarter distribution. This distribution was paid on May 8, 2018 to unitholders of record on April 30, 2018.
CONFERENCE CALL
On Wednesday, May 9, 2018, the Partnership will hold a conference call for analysts and investors at 12:00 p.m. Eastern Time to discuss our first quarter results. Hosting the call will be Fred Boutin, Chief Executive Officer, and Rob Fuller, Chief Financial Officer. The call can be accessed live over the telephone by dialing (877) 407-4018, or for international callers (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers (412) 317-6671. The passcode for the replay is 13679778. The replay will be available until May 23, 2018.
Interested parties may also listen to a simultaneous webcast of the conference call by logging onto TLP’s website at www.transmontaignepartners.com under the Investor Information section. A replay of the webcast will also be available until May 23, 2018.
ABOUT TRANSMONTAIGNE PARTNERS L.P.
TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio Rivers, in the Southeast and on the West Coast. We provide integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Light refined products include gasolines, diesel fuels, heating oil and jet fuels, and heavy refined products include residual fuel oils and asphalt. We do not purchase or market products that we handle or transport. News and additional information about TransMontaigne Partners L.P. is available on our website: www.transmontaignepartners.com .
FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute forward looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Although the company believes that the expectations reflected in such forward looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the key risk factors that could negatively impact our assumptions on future growth prospects and acquisitions include, without limitation, (i) our ability to identify suitable growth projects or acquisitions; (ii) our ability to complete identified projects timely and at expected costs, (iii) competition for acquisition opportunities, and (iv) the successful integration and performance of acquired assets or businesses and the risks of operating assets or businesses that are distinct from our historical operations. Key risk factors associated with the West Coast terminals include, without limitation: (i) the successful integration and performance of the acquired assets, (ii) adverse changes in general economic or market conditions, and (iii) competitive factors such as pricing pressures and the entry of new competitors. Key risk factors associated with the Collins and Brownsville terminal and pipeline expansions and related improvements include, without limitation: (i) the ability to complete construction of the project on time and at expected costs; (ii) the ability to obtain required permits and other approvals on a timely basis; (iii) the occurrence of operational hazards, weather related events or unforeseen interruption; and (iv) the failure of our customers or vendors to satisfy or continue contractual obligations. Additional important factors that could cause actual results to differ materially from the Partnership’s expectations and may adversely affect its business and results of operations are disclosed in "Item 1A. Risk Factors" in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 15, 2018. The forward looking statements speak only as of the date made, and, other than as may be required by law, the Partnership undertakes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
ATTACHMENT A
SELECTED FINANCIAL INFORMATION AND RESULTS OF OPERATIONS
Our terminaling services agreements are structured as either throughput agreements or storage agreements. Our throughput agreements contain provisions that require our customers to make minimum payments, which are based on contractually established minimum volumes of throughput of the customer’s product at our facilities over a stipulated period of time. Due to this minimum payment arrangement, we recognize a fixed amount of revenue from the customer over a certain period of time, even if the customer throughputs less than the minimum volume of product during that period. In addition, if a customer throughputs a volume of product exceeding the minimum volume, we would recognize additional revenue on this incremental volume. Our storage agreements require our customers to make minimum payments based on the volume of storage capacity available to the customer under the agreement, which results in a fixed amount of recognized revenue.
We refer to the fixed amount of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.” Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as “ancillary.” In addition “ancillary” revenue also includes fees received from ancillary services including heating and mixing of stored products, product transfer, railcar handling, butane blending, proceeds from the sale of product gains, wharfage and vapor recovery.
The “firm commitments” and “ancillary” revenue included in terminaling services fees were as follows (in thousands):
Three months ended March 31, 2018 2017 Terminaling services fees: Firm commitments $ 42,133 $ 32,064 Ancillary 11,058 8,680 Total terminaling services fees 53,191 40,744 Pipeline transportation fees 869 1,716 Management fees 2,384 2,390 Total revenue $ 56,444 $ 44,850 The amount of revenue recognized as “firm commitments” based on the remaining contractual term of the terminaling services agreements that generated “firm commitments” for the three months ended March 31, 2018 was as follows (in thousands):
Remaining terms on terminaling services agreements that generated “firm commitments”: Less than 1 year remaining $ 6,901 16% 1 year or more, but less than 3 years remaining 13,787 33% 3 years or more, but less than 5 years remaining 19,133 45% 5 years or more remaining 2,312 6% Total firm commitments for the three months ended March 31, 2018 $ 42,133 The following selected financial information is extracted from our quarterly report on Form 10-Q for the quarter ended March 31, 2018, which was filed on May 9, 2018 with the Securities and Exchange Commission (in thousands, except per unit amounts):
Three months ended March 31, 2018 2017 Income Statement Data
Revenue $ 56,444 $ 44,850 Direct operating costs and expenses (20,145 ) (16,511 ) General and administrative expenses (4,981 ) (3,971 ) Earnings from unconsolidated affiliates 2,889 2,560 Operating income 19,136 15,400 Net earnings 12,174 12,954 Net earnings allocable to limited partners 8,408 10,111 Net earnings per limited partner unit—basic $ 0.52 $ 0.62 March 31, December 31, 2018 2017 Balance Sheet Data
Property, plant and equipment, net $ 650,037 $ 655,053 Investments in unconsolidated affiliates 234,030 233,181 Goodwill 9,428 9,428 Customer relationships, net 46,389 47,136 Total assets 975,618 987,003 Long-term debt 582,377 593,200 Partners’ equity 362,022 364,217 Selected results of operations data for each of the quarters in the years ended December 31, 2018 and 2017 are summarized below (in thousands):
Three months ended Year ending March 31, June 30, September 30, December 31, December 31, 2018 2018 2018 2018 2018 Revenue $ 56,444 $ — $ — $ — $ 56,444 Direct operating costs and expenses (20,145 ) — — — (20,145 ) General and administrative expenses (4,981 ) — — — (4,981 ) Insurance expenses (1,246 ) — — — (1,246 ) Equity-based compensation expense (2,017 ) — — — (2,017 ) Depreciation and amortization (11,808 ) — — — (11,808 ) Earnings from unconsolidated affiliates 2,889 — — — 2,889 Operating income 19,136 — — — 19,136 Interest expense (6,461 ) — — — (6,461 ) Amortization of deferred issuance costs (501 ) — — — (501 ) Net earnings $ 12,174 $ — $ — $ — $ 12,174 Three months ended Year ending March 31, June 30, September 30, December 31, December 31, 2017 2017 2017 2017 2017 Revenue $ 44,850 $ 45,364 $ 45,449 $ 47,609 $ 183,272 Direct operating costs and expenses (16,511 ) (15,984 ) (17,719 ) (17,486 ) (67,700 ) General and administrative expenses (3,971 ) (4,080 ) (5,247 ) (6,135 ) (19,433 ) Insurance expenses (1,006 ) (1,002 ) (999 ) (1,057 ) (4,064 ) Equity-based compensation expense (1,817 ) (352 ) (544 ) (286 ) (2,999 ) Depreciation and amortization (8,705 ) (8,792 ) (8,882 ) (9,581 ) (35,960 ) Earnings from unconsolidated affiliates 2,560 2,120 1,884 507 7,071 Operating income 15,400 17,274 13,942 13,571 60,187 Interest expense (2,152 ) (2,525 ) (2,656 ) (3,140 ) (10,473 ) Amortization of deferred issuance costs (294 ) (271 ) (320 ) (336 ) (1,221 ) Net earnings $ 12,954 $ 14,478 $ 10,966 $ 10,095 $ 48,493 ATTACHMENT B
DISTRIBUTABLE CASH FLOW
The following summarizes our distributable cash flow for the period indicated (in thousands):
January 1, 2018 through March 31, 2018 Net earnings $ 12,174 Depreciation and amortization 11,808 Earnings from unconsolidated affiliates (2,889 ) Distributions from unconsolidated affiliates 3,190 Equity-based compensation expense 2,017 Settlement of tax withholdings on equity-based compensation (341 ) Interest expense 6,461 Amortization of deferred issuance costs 501 Consolidated EBITDA (1) (2) 32,921 Interest expense (6,461 ) Unrealized loss on derivative instruments 42 Amortization of deferred issuance costs (501 ) Amounts due under long-term terminaling services agreements, net 28 Project amortization of deferred revenue under GAAP (187
) Project amortization of deferred revenue for DCF 582
Capitalized maintenance (3,389 ) “Distributable cash flow”, or DCF, generated during the period (2) $ 23,035 Actual distribution for the period on all common units and the general partner interest including incentive distribution rights $ 16,571 Distribution coverage ratio (2) 1.39x (1) Reflects the calculation of Consolidated EBITDA in accordance with the definition for such financial metric in our revolving credit facility. (2) Distributable cash flow, the distribution coverage ratio and Consolidated EBITDA are not computations based upon generally accepted accounting principles. The amounts included in the computations of our distributable cash flow and Consolidated EBITDA are derived from amounts separately presented in our consolidated financial statements, notes thereto and “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our quarterly report on Form 10-Q for the quarter ended March 31, 2018, which was filed with the Securities and Exchange Commission on May 9, 2018. Distributable cash flow and Consolidated EBITDA should not be considered in isolation or as an alternative to net earnings or operating income, as an indication of our operating performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Distributable cash flow and Consolidated EBITDA are not necessarily comparable to similarly titled measures of other companies. Distributable cash flow and Consolidated EBITDA are presented here because they are widely accepted financial indicators used to compare partnership performance. Further, Consolidated EBITDA is calculated consistent with the provisions of our credit facility and is a financial performance measure used in the calculation of our leverage and interest coverage ratio requirements. We believe that these measures provide investors an enhanced perspective of the operating performance of our assets, the cash we are generating and our ability to make distributions to our unitholders and our general partner. ATTACHMENT C
CREDIT FACILITY FINANCIAL COVENANTS
The primary financial covenants contained in our revolving credit facility are (i) a total leverage ratio test (not to exceed 5.25 to 1.0), (ii) a senior secured leverage ratio test (not to exceed 3.75 to 1.0), and (iii) a minimum interest coverage ratio test (not less than 2.75 to 1.0). These financial covenants are based on a non-GAAP, defined financial performance measure within our revolving credit facility known as “Consolidated EBITDA.” The following provides the calculation of “total leverage ratio”, “senior secured leverage ratio” and “interest coverage ratio” as such terms are used in our revolving credit facility for certain financial covenants (in thousands, except ratios):
Twelve months Three months ended ended June 30, September 30, December 31, March 31, March 31, 2017 2017 2017 2018 2018 Financial performance covenant tests: Consolidated EBITDA (1) $ 28,819 $ 25,381 $ 26,963 $ 32,921 $ 114,084 Permitted acquisition credit (2) 7,000 7,000 5,900 — 19,900 Consolidated EBITDA for the leverage ratios (1) $ 35,819 $ 32,381 $ 32,863 $ 32,921 $ 133,984 Revolving credit facility debt 290,200 6.125% senior notes due in 2026 300,000 Senior notes unamortized deferred issuance costs (7,823 ) Consolidated funded indebtedness $ 582,377 Senior secured leverage ratio 2.17 x Total leverage ratio 4.35 x Consolidated EBITDA for the interest coverage ratio (1) $ 28,819 $ 25,381 $ 26,963 $ 32,921 $ 114,084 Consolidated interest expense (1) (3) $ 2,487 $ 2,591 $ 3,217 $ 6,419 $ 14,714 Interest coverage ratio 7.75 x Reconciliation of consolidated EBITDA to cash flows provided by operating activities: Consolidated EBITDA for the total leverage ratio (1) $ 35,819 $ 32,381 $ 32,863 $ 32,921 $ 133,984 Permitted acquisition credit (2) (7,000 ) (7,000 ) (5,900 ) — (19,900 ) Interest expense (2,525 ) (2,656 ) (3,140 ) (6,461 ) (14,782 ) Unrealized loss (gain) on derivative instruments 38 65 (77 ) 42 68 Amortization of deferred revenue 10 (170 ) (122 ) (187 ) (469 ) Settlement of tax withholdings on equity-based compensation 25 304 — 341 670 Change in operating assets and liabilities (342 ) 4,477 (3,709 ) (2,262 ) (1,836 ) Cash flows provided by operating activities $ 26,025 $ 27,401 $ 19,915 $ 24,394 $ 97,735 (1) Reflects the calculation of Consolidated EBITDA and Consolidated interest expense in accordance with the definition for such financial metrics in our revolving credit facility. (2) Reflects a proforma credit of $7.0 million per quarter relating to the acquisition of the West Coast terminals, which qualified as a “Permitted Acquisition” under the terms of our revolving credit facility. For the three months ended December 31, 2017, such $7.0 million credit was reduced by approximately $1.1 million, which is the amount of actual Consolidated EBITDA we recognized during the period relating to the West Coast terminals following the acquisition on December 15, 2017. (3) Consolidated interest expense, used in the calculation of the interest coverage ratio, excludes unrealized gains and losses recognized on our derivative instruments.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180509005709/en/
TransMontaigne Partners L.P.
Frederick W. Boutin, (303) 626-8200
Chief Executive Officer
or
Robert T. Fuller, (303) 626-8200
Chief Financial Officer
Source: TransMontaigne Partners L.P. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/09/business-wire-transmontaigne-announces-first-quarter-results-and-expansion.html |
Tiger Management has sent a letter to the board of GameStop , urging the video game retailer to conduct a strategic review amid recent management upheaval.
"We view the recent management departures and crisis of confidence as an unprecedented opportunity for the Board to launch a strategic review and revive shareholder confidence in the sustainability of the GameStop business model," the letter, which was reviewed by CNBC, said.
Tiger Management, the nearly 3-decade-old hedge fund founded and led by Julian Robertson , has been building up its stake in GameStop this year. Crawford Hawkins, a portfolio manager at the firm, signed the letter. He declined to comment to CNBC.
Letters of this kind are associated with activist investors, or managers known for taking stakes in companies and suggesting strategic changes the company can pursue to boost the stock price.
Tiger Management said in the letter that it plans to "remain a passive shareholder" and has "no intention of becoming an activist investor."
"To the extent that you fail to implement a turnaround plan, we merely intend to sell our shares and redeploy capital toward more attractive investment opportunities," Tiger Management said.
GameStop did not immediately respond to a request seeking comment. The shares rose 2.2 percent in early trading Wednesday.
GameStop shares have declined about 45 percent over the last year compared with the Russell 2000's gain of about 15 percent. On Friday, GameStop announced that CEO Michael Mauler resigned abruptly after only three months on the job causing additional pressure on the shares. Co-founder Daniel DeMatteo was named the interim CEO.
Paul Raines had left the CEO post in November due to medical reasons and died in March. Mauler was named CEO in February and within days, GameStop fired two top executives.
The exact size of Tiger's stake couldn't be learned. Public disclosures indicate Tiger's stake at the end of the quarter of only 25,000 shares, but the firm has likely continued adding to the position since March 31 without breaching the 5 percent ownership threshold requiring additional filings.
David A. Grogan | CNBC Julian H. Robertson Jr. speaking at the 2017 Delivering Alpha conference in New York on Sept. 12, 2017. In the letter, Tiger Management urged management to reiterate its commitment to pause acquisitions, which the firm says have historically "resulted in a significant destruction of shareholder capital."
"We hope that this is only the first step and that you will strategically evaluate all facets of the business to develop a more detailed turnaround plan, which can then be communicated to shareholders," Tiger Management's Hawkins wrote.
Tiger Management said that GameStop should analyze cost-cutting measures, particularly surrounding administrative expenses. Tiger suggested that GameStop consider divestitures of "ancillary businesses that continue to drain valuable resources, specifically Technology Brands, ThinkGeek.com and International segments."
The firm also noted that GameStop's decision to "pay down debt rather than buying back deeply undervalued shares of common equity signals a lack of confidence in the core business and fuel investor concerns about the sustainability of dividend payments going forward."
Tiger Management said GameStop should communicate a capital allocation plan that restores investor confidence in the company.
The company reports earnings on May 24 and Tiger Management said it hopes GameStop will announce its strategic review prior to or in conjunction with that day. | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/16/hedge-fund-tiger-sends-letter-to-gamestop-urging-retailer-to-adopt-a-turnaround-plan.html |
Cramer: If Apple's cheap, then maybe the market's not so bad 2 Hours Ago The "Squawk on the Street" team discusses the billionaire summit with Berkshire Hathaway CEO Warren Buffett, Vice Chairman Charlie Munger and Microsoft Co-Founder Bill Gates on "Squawk Box." | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/07/cramer-if-apples-cheap-then-maybe-the-markets-not-so-bad.html |
(Repeats item issued earlier. The opinions expressed here are those of the author, a columnist for Reuters.)
* GRAPHIC: China LNG imports vs. spot price:
* reut.rs/2Jam75C
By Clyde Russell
LAUNCESTON, Australia, May 28 (Reuters) - The slack period for liquefied natural gas (LNG) in top consumer Asia is usually the shoulder season between winter and summer, or March to May, but this pattern hasn’t really repeated this year.
The spot price of the super-chilled fuel in Asia LNG-AS has been on a rising trend since the beginning of April, and hit $9.20 per million British thermal units (mmBtu) at the end of last week.
It touched its low for 2018 of $7 per mmBtu in the week ended March 29, remained unchanged the next week and then posted gains in six of the seven weeks since.
Last year, the shoulder season low of $5.40 per mmBtu was first reached in late March, and the price drifted in a narrow band until early July, when it started climbing from $5.45 in the week to July 7, 2017.
In 2016, the low was hit in early April before a mild rally for the northern summer, and then another dip in the autumn shoulder season before strong gains in the winter period.
What appears to be different so far this year is that while seasonal price fluctuations are still evident, the dip was shallower than in previous years and the rally from the low looks sharper so far.
Spot LNG fell 39 percent from its peak of $11.50 per mmBtu for the winter of 2018 to the low in late March, while in 2017 the slump from winter peak to shoulder season low was 45 percent, and it was 49 percent the prior year.
So far LNG has rallied 31 percent from the low, in the space of eight weeks.
In 2017, eight weeks after reaching the low, LNG had gained just 12 percent, while the increase was 26 percent in 2016.
What the numbers show is that while seasonality is still in place, the price lows aren’t as deep as in previous years and the rally from that low appears to be on track to be steeper and higher.
The easy explanation for this dynamic is China, which has continued to buy LNG at a frantic pace this year, after the 46.4 percent jump in imports in 2017 to a total of 38.1 million tonnes, making it the world’s second-biggest buyer behind Japan.
China’s LNG imports rose 58 percent to 15.8 million tonnes in the first four months of this year compared to the same period a year earlier, according to customs data.
This would put it on target for imports of more than 47 million tonnes for the full year, but this is likely to be a conservative estimate, given LNG buying tend to ramp up in the months ahead of the peak winter demand period.
MORE THAN CHINA But it’s not just China that is sucking up more LNG, with South Korea making a bid to reclaim its former place as the world’s second-biggest importer.
In the first four months of the year South Korea brought in 16.2 million tonnes of LNG, up 18.2 percent from the same period last year, according customs data.
Even top importer Japan is buying modestly more LNG, with imports in the first quarter up 1.1 percent from the same period in 2017, a faster pace of growth than the 0.4 percent for the whole of 2017.
It’s not only the top three importers that are showing growth, with total global seaborne LNG flows rising, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.
In the first five months of 2018, a total of 125.1 million tonnes of LNG has been discharged, a figure that may rise to closer to 133 million by the end of this month as more vessels are unloaded.
This would be some 14 million tonnes, or almost 12 percent, more than the 118.9 million tonnes discharged in the first five months of last year.
The data shows that while China is the standout when it comes to driving LNG demand and prices, it’s not the only show in town.
Editing by Richard Pullin
| ashraq/financial-news-articles | https://www.reuters.com/article/column-russell-lng-asia/column-lng-starts-rally-early-and-its-mainly-china-russell-idUSL3N1SZ1PY |
NEW YORK--(BUSINESS WIRE)-- Paramount Group, Inc. (NYSE:PGRE) (“Paramount” or the “Company”) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 today and reported results for the quarter ended March 31, 2018.
First Quarter Highlights:
Reported net income attributable to common stockholders of $1.1 million, or $0.00 per diluted share, for the quarter ended March 31, 2018, compared to $0.4 million, or $0.00 per diluted share, for the quarter ended March 31, 2017. Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $55.0 million, or $0.23 per diluted share, for the quarter ended March 31, 2018, compared to $51.5 million, or $0.22 per diluted share, for the quarter ended March 31, 2017. Reported a 15.2% increase in Same Store Cash Net Operating Income (“NOI”) and a 6.6% increase in Same Store NOI in the quarter ended March 31, 2018, compared to the same period in the prior year. Leased 285,167 square feet, of which the Company’s share was 216,848 square feet that was leased at a weighted average initial rent of $86.32 per square foot. Of the square footage leased, 161,215 square feet represented second generation space, for which the Company achieved a positive mark-to-market of 17.8% on a cash basis and 12.9% on a GAAP basis. Increased leased occupancy and same store leased occupancy by 50 basis points to 94.0% at March 31, 2018 from 93.5% at December 31, 2017. Amended its revolving credit facility, on January 10, 2018, to extend the maturity date from November 2018 to January 2022, with two six-month extension options and increase the capacity to $1.0 billion from $800.0 million. The interest rate on the extended facility, at current leverage levels, was lowered by 10 basis points from LIBOR plus 125 basis points to LIBOR plus 115 basis points, and the facility fee was reduced by 5 basis points from 25 basis points to 20 basis points. Increased the quarterly cash dividend on its common stock by 5.3% on March 15, 2018 to $0.10 per common share, which was paid on April 13, 2018.
Financial Results
Quarter Ended March 31, 2018
Net income attributable to common stockholders was $1.1 million, or $0.00 per diluted share, for the quarter ended March 31, 2018, compared to $0.4 million, or $0.00 per diluted share, for the quarter ended March 31, 2017.
Funds from Operations (“FFO”) attributable to common stockholders was $53.7 million, or $0.22 per diluted share, for the quarter ended March 31, 2018, compared to $51.6 million, or $0.22 per diluted share, for the quarter ended March 31, 2017. FFO attributable to common stockholders for the quarters ended March 31, 2018 and 2017 includes the impact of non-core items, which are listed in the table on page 8. The aggregate of these items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended March 31, 2018 by $1.3 million, or $0.01 per diluted share, and increased FFO attributable to common stockholders for the quarter ended March 31, 2017 by $0.1 million, or $0.00 per diluted share.
Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 8, was $55.0 million, or $0.23 per diluted share, for the quarter ended March 31, 2018, compared to $51.5 million, or $0.22 per diluted share, for the quarter ended March 31, 2017.
Portfolio Operations
Quarter Ended March 31, 2018
Same Store Cash NOI increased by $11.0 million, or 15.2%, to $83.8 million for the quarter ended March 31, 2018 from $72.8 million for the quarter ended March 31, 2017. Same Store NOI increased by $6.1 million, or 6.6%, to $98.1 million for the quarter ended March 31, 2018 from $92.0 million for the quarter ended March 31, 2017.
During the quarter ended March 31, 2018, the Company leased 285,167 square feet, of which the Company’s share was 216,848 square feet that was leased at a weighted average initial rent of $86.32 per square foot. This leasing activity, partially offset by lease expirations in the quarter, increased leased occupancy and same store leased occupancy (properties owned by the company in both reporting periods) by 50 basis points to 94.0% at March 31, 2018 from 93.5% at December 31, 2017. Of the 285,167 square feet leased in the first quarter, 161,215 square feet represented second generation space (space that had been vacant for less than twelve months) for which the Company achieved positive mark-to-markets of 17.8% on a cash basis and 12.9% on a GAAP basis. The weighted average lease term for leases signed during the first quarter was 8.3 years and weighted average tenant improvements and leasing commissions on these leases were $7.88 per square foot per annum, or 9.1% of initial rent.
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. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes, including changes to tax laws and regulations, and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, impairment losses on depreciable real estate and expense from real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.
FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.
NOI is used to measure the operating performance of our properties. NOI consists of property-related revenue (which includes rental income, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, net, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE's share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.
Same Store NOI is used to measure the operating performance of properties that were owned by us in a similar manner during both the current period and prior reporting periods and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, bad debt expense and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-lining of rental revenue and the amortization of above and below-market leases.
A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended March 31, 2018, which is available on our website.
Investor Conference Call and Webcast
The Company will host a conference call and audio webcast on Thursday, May 3, 2018 at 10:00 a.m. Eastern Time (ET), during which management will discuss the first quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.
The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 1:00 p.m. ET on May 3, 2018 through May 10, 2018 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13678478.
A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.paramount-group.com . A replay of the webcast will be archived on the Company’s website.
About Paramount Group, Inc.
Headquartered in New York City, Paramount Group , Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
Paramount Group, Inc.
Consolidated Balance Sheets
(Unaudited and in thousands)
ASSETS: March 31, 2018 December 31, 2017 Real estate, at cost Land $ 2,209,506 $ 2,209,506 Buildings and improvements 6,150,115 6,119,969 8,359,621 8,329,475 Accumulated (534,934 ) (487,945 ) Real estate, net 7,824,687 7,841,530 212,547 219,381 Restricted cash 33,032 31,044 Investments in unconsolidated joint ventures 67,355 44,762 Investments in unconsolidated real estate funds 7,276 7,253 Preferred equity investments, net 35,870 35,817 Marketable securities 24,984 29,039 Accounts and other receivables, net 17,036 17,082 Deferred rent receivable 234,758 220,826 Deferred charges, net 106,415 98,645 Intangible assets, net 333,983 352,206 Other assets 75,925 20,076 Total assets $ 8,973,868 $ 8,917,661 LIABILITIES: Notes and mortgages payable, net $ 3,560,230 $ 3,541,300 Revolving credit facility - - Due to affiliates 27,299 27,299 Accounts payable and accrued expenses 128,625 117,630 Dividends and distributions payable 26,627 25,211 Intangible liabilities, net 122,673 130,028 Other liabilities 54,344 54,109 Total liabilities 3,919,798 3,895,577 EQUITY: Paramount Group, Inc. equity 4,162,439 4,176,741 Noncontrolling interests in: Consolidated joint ventures 404,137 404,997 Consolidated real estate fund 51,456 14,549 Operating Partnership 436,038 425,797 Total equity 5,054,070 5,022,084 Total liabilities and equity $ 8,973,868 $ 8,917,661 Paramount Group, Inc.
Consolidated Statements of Income
(Unaudited and in thousands, except share and per share amounts)
For the Three Months Ended March 31, 2018 2017 REVENUES: Property rentals $ 145,741 $ 132,235 Straight-line rent adjustments 13,244 20,147 Amortization of above and below-market leases, net 4,420 3,008 Rental income 163,405 155,390 Tenant reimbursement income 14,246 12,852 Fee and other income 6,620 12,994 Total revenues 184,271 181,236 EXPENSES: Operating 68,978 65,971 Depreciation and amortization 65,156 62,992 General and administrative 12,631 13,581 Transaction related costs 120 275 Total expenses 146,885 142,819 Operating income 37,386 38,417 (Loss) income from unconsolidated joint ventures (62 ) 1,937 (Loss) income from unconsolidated real estate funds (66 ) 288 Interest and other income, net 2,016 3,200 Interest and debt expense (36,082 ) (37,018 ) Loss on early extinguishment of debt - (2,715 ) Unrealized gain on interest rate swaps - 1,802 Net income before income taxes 3,192 5,911 Income tax expense (477 ) (4,282 ) Net income 2,715 1,629 Less net (income) loss attributable to noncontrolling interests in: Consolidated joint ventures (1,055 ) (1,291 ) Consolidated real estate fund (430 ) 88 Operating Partnership (116 ) (54 ) Net income attributable to common stockholders $ 1,114 $ 372 Per share: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 Weighted average common shares outstanding: Basic 240,311,744 230,924,271 Diluted 240,338,698 230,958,441 Paramount Group, Inc.
Reconciliation of Net Income to FFO and Core FFO
(Unaudited and in thousands, except share and per share amounts)
For the Three Months Ended March 31, 2018 2017 Reconciliation of Net Income to FFO and Core FFO: Net income $ 2,715 $ 1,629 Real estate (including our share of unconsolidated joint ventures) 67,160 64,840 FFO 69,875 66,469 Less FFO attributable to noncontrolling interests in: Consolidated joint ventures (10,207 ) (7,195 ) Consolidated real estate fund (430 ) (140 ) FFO attributable to Paramount Group Operating Partnership 59,238 59,134 Less FFO attributable to noncontrolling interests in Operating Partnership (5,585 ) (7,545 ) FFO attributable to common stockholders $ 53,653 $ 51,589 Per diluted share $ 0.22 $ 0.22 FFO $ 69,875 $ 66,469 Non-core items: Our share of earnings from 712 Fifth Avenue in excess of
distributions received
1,195 - Realized and unrealized loss (gain) on unconsolidated real estate funds 131 (235 ) Transaction related costs 120 275 Loss on early extinguishment of debt - 2,715 Unrealized gain on interest rate swaps (including our share of unconsolidated joint ventures)
- (2,386 ) Core FFO
71,321 66,838 Less Core FFO attributable to noncontrolling interests in: Consolidated joint ventures (10,207 ) (7,661 ) Consolidated real estate fund (430 ) (140 ) Core FFO attributable to Paramount Group Operating Partnership 60,684 59,037 Less Core FFO attributable to noncontrolling interests in Operating Partnership (5,721 ) (7,532 ) Core FFO attributable to common stockholders $ 54,963 $ 51,505 Per diluted share $ 0.23 $ 0.22 Reconciliation of weighted average shares outstanding: outstanding 240,311,744 230,924,271 Effect of dilutive securities 26,954 34,170 Denominator for FFO and Core FFO per diluted share 240,338,698 230,958,441 Paramount Group, Inc.
Reconciliation of Net Income to Same Store NOI and Same Store Cash NOI
(Unaudited and in thousands)
Three Months Ended March 31, 2018 2017 Reconciliation of net income to Same Store NOI and Same Store Cash NOI: Net income $ 2,715 $ 1,629 Add (subtract) adjustments to arrive at NOI and Cash NOI: Depreciation and amortization 65,156 62,992 General and administrative 12,631 13,581 Interest and debt expense 36,082 37,018 Loss on early extinguishment of debt - 2,715 Transaction related costs 120 275 Income tax expense 477 4,282 NOI from unconsolidated joint ventures 4,740 4,823 Loss (income) from unconsolidated joint ventures 62 (1,937 ) Loss (income) from unconsolidated real estate funds 66 (288 ) Fee income (3,465 ) (9,556 ) Interest and other income, net (2,016 ) (3,200 ) Unrealized gain on interest rate swaps - (1,802 ) NOI 116,568 110,532 Less NOI attributable to noncontrolling interests in: Consolidated joint ventures (16,014 ) (12,029 ) Consolidated real estate fund 26 (141 ) PGRE's share of NOI 100,580 98,362 Acquisitions (2,306 ) - Dispositions - (6,300 ) Lease termination income (including our share of unconsolidated joint ventures) (190 ) (66 ) PGRE's share of Same Store NOI $ 98,084 $ 91,996 NOI $ 116,568 $ 110,532 Less: Straight-line rent adjustments (including our share of unconsolidated joint ventures) (13,197 ) (20,511 ) Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)
(4,257 ) (2,881 ) Cash NOI
99,114 87,140 Less Cash NOI attributable to noncontrolling interests in: Consolidated joint ventures (13,193 ) (7,882 ) Consolidated real estate fund 26 (141 ) PGRE's share of Cash NOI 85,947 79,117 Acquisitions (1,964 ) - Dispositions - (6,300 ) Lease termination income (including our share of unconsolidated joint ventures) (190 ) (66 ) PGRE's share of Same Store Cash NOI $ 83,793 $ 72,751
//www.businesswire.com/news/home/20180502006587/en/
Paramount Group, Inc.
Wilbur Paes, 212-237-3122
Executive Vice President, Chief Financial Officer
[email protected]
or
Christopher Brandt, 212-237-3134
Vice President, Investor Relations
[email protected]
or
Media:
212-492-2285
[email protected]
Source: Paramount Group, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/02/business-wire-paramount-announces-first-quarter-2018-results.html |
* April CPI up less than expected, core CPI growth slows
* S&P 500 tops 100-day avg, a day after claiming 50-day avg
* All 11 major S&P sectors higher, tech biggest boost
* L Brands, Booking Holdings drop on disappointing forecasts
* Indexes up: Dow 0.96 pct, S&P 0.97 pct, Nasdaq 0.90 pct (Updates to early afternoon)
By Sruthi Shankar
May 10 (Reuters) - U.S. stocks rose sharply on Thursday, with the benchmark S&P 500 topping a key technical level for the second straight day, after tepid inflation data eased worries of faster interest rate hikes this year.
The Labor Department’s consumer price index increased 0.2 percent in April, less than economists’ expectations, as rising costs for gasoline and rental accommodation were tempered by a moderation in healthcare prices.
Core CPI, which excludes food and energy components, edged up 0.1 percent in April, slower than the previous two months, and did little to alter traders’ expectations of a June rate hike.
“This data lends to the argument that the Fed can normalize patiently, but the flip side is that prolonged policy accommodation has yet failed to accelerate inflation,” Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York, wrote in a note.
The markets, after remaining subdued in the past few weeks on fears of rising inflation and its fallout, rallied broadly with all 11 major S&P sectors posting gains.
Technology stocks were the biggest boost to the S&P 500 on Apple’s 1.4 percent rise to a record high.
The S&P 500 reclaimed its 100-day moving average for the first time since April 19. That came a day after it topped its 50-day average, a key indicator of short-term momentum.
At 12:40 p.m. ET, the Dow Jones Industrial Average was up 234.65 points, or 0.96 percent, at 24,777.19, the S&P 500 was up 26.24 points, or 0.97 percent, at 2,724.03 and the Nasdaq Composite was up 65.76 points, or 0.90 percent, at 7,405.67.
CenturyLink gained 8 percent, the most on the S&P, after its first-quarter results. That helped the telecoms sector rise 1.56 percent, the most among the 11 sectors.
AXA Equitable Holdings, the U.S. division of French insurer AXA, slipped 0.5 percent in its market debut. Although its offering raised less than targeted, it was still the biggest U.S. IPO this year. The top losers on the S&P 500 included Victoria’s Secret owner L Brands, which fell 8.6 percent, and Booking Holdings, formerly called Priceline, which dropped 5.3 percent. Both companies gave disappointing outlooks.
Advancing issues outnumbered decliners for a 3.13-to-1 ratio on the NYSE and for a 2.19-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and two new lows, while the Nasdaq recorded 135 new highs and 20 new lows. (Reporting by Sruthi Shankar and Savio D’Souza in Bengaluru; Editing by Anil D’Silva)
| ashraq/financial-news-articles | https://www.reuters.com/article/usa-stocks/us-stocks-wall-st-rallies-on-tepid-inflation-data-idUSL3N1SH66A |
PLAINVIEW, N.Y., May 07, 2018 (GLOBE NEWSWIRE) -- NeuLion, Inc. (TSX:NLN), a leading technology product and service provider specializing in the digital video broadcasting, distribution and monetization of live and on-demand content to Internet-enabled devices, today closed its previously announced acquisition by sports and entertainment leader Endeavor.
Pursuant to the terms of the transaction, each share of NeuLion common stock that was issued and outstanding on May 7, 2018 was automatically converted into the right to receive $0.84 in cash, without interest and subject to deduction for any required withholding tax.
In connection with the completion of the transaction, NeuLion common stock will be delisted from the Toronto Stock Exchange. Stockholders of NeuLion will shortly receive instructions regarding the delivery of their share certificates and payment of their merger consideration.
About NeuLion
NeuLion, Inc. (TSX:NLN) offers solutions that power the highest quality digital experiences for live and on-demand content in up to 4K/HDR on any device. Through its end-to-end technology platform, NeuLion enables digital video management, distribution and monetization for content owners worldwide including the NFL, NBA, UFC, EFL, EuroLeague, World Surf League, Univision, Sky Sports, Eleven Sports Network and others. NeuLion powers the entire video ecosystem for content owners and rights holders, consumer electronic companies, and third party video integrators through its MainConcept business. NeuLion is headquartered in Plainview, NY.
CONTACT INFORMATION
Press Contact: Chris Wagner | | +1 516 622 8357
Investor Relations Contact: Rob Kelly | | +1 416 992 4539
Source: NeuLion, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/07/globe-newswire-neulion-announces-closing-of-acquisition-by-endeavor.html |
The Midday Rundown: May 29, 2018 1 Hour Ago | ashraq/financial-news-articles | https://www.cnbc.com/video/2018/05/29/the-midday-rundown-may-29-2018.html |
BRUSSELS (Reuters) - The European Commission proposed on Thursday setting up two new financial instruments worth a total of 55 billion euros ($64.4 billion) to back reforms in European Union states and help members hit by financial crises.
European Commission Vice-President Valdis Dombrovskis holds a new conference on the European Semester Spring package at the EU Commission headquarters in Brussels, Belgium May 23, 2018. REUTERS/Francois Lenoir The plan comes amid market turmoil triggered by political instability in Italy, the third-largest economy of the euro zone. The upheaval has revived concern about the future of the euro.
Under the plan, part of the EU’s proposed 1.1 trillion-euro budget, 25 billion euros would be made available from 2021 to 2027 for countries that embark on structural reforms agreed with Brussels, such as new pension plans or labor regulation.
The second facility, the European Investment Stabilization Function, would provide up to 30 billion euros in loans to member states hit by an “asymmetric shock” - a sudden economic crisis causing a surge in unemployment.
The money would help them to keep investing during periods of financial distress and could shorten or avert recessions, EU officials said.
“Around half” of all EU countries could have benefited from the facility if it had been in place during the financial crises over the last ten years, Commission Vice President Valdis Dombrovskis said.
The plan will require the approval of 27 EU states.
Rising unemployment contributed in crisis years to growing euroscepticism in several EU states. Italy, which has had double-digit jobless rates since the 2012 debt crisis, has seen a steady rise of anti-establishment and eurosceptic forces that are now the main parties in the historically pro-EU country.
Under the proposal, the money for the loans would be raised by the EU on the markets, using the EU budget as a guarantee. The loans provided would not charge interest, because other EU states would cover the costs.
Only countries that respect EU fiscal rules could get the cheap loans - an incentive for countries to rein in excessive spending.
The proposal is likely to be criticized in Italy and other anti-austerity states for being too restrictive, while Germany might consider it too lenient on profligate countries.
“This is moral hazard in its purest form,” said Markus Ferber, a German lawmaker who chairs the EU Parliament’s economic committee.
MONEY FOR REFORMS The money-for-reforms facility also provides a mild incentive for EU states to respect the commission’s belt-tightening economic recommendations which many states have often ignored, with no effective consequence.
Only those who accept recommended reforms will be eligible for the funding.
The money-for-reforms would be accessible to all EU states. EU countries who commit to join the euro would benefit from 2.16 billion euros in new funds, out of the 25 billion readied for the reforms instrument, to help them in the transition.
The added financial incentive to join the euro is part of a wider plan to push all 27 EU states to adopt the common currency, but falls short of French proposals to equip the euro zone with a separate, larger budget.
($1 = 0.8538 euros)
Reporting by Francesco Guarascio, editing by Larry King
| ashraq/financial-news-articles | https://www.reuters.com/article/us-eurozone-budget-commission/eu-readies-55-billion-euro-plan-to-help-reforms-investments-idUSKCN1IW12Y |
May 15 (Reuters) - One Group Hospitality Inc:
* SEES FOR 2018 COMPARABLE SALES GROWTH OF ABOUT 2% TO 3% * SEES FOR 2018 ADJUSTED EBITDA BETWEEN $9 MILLION AND $10 MILLION
* SEES FOR 2018: TOTAL CAPITAL EXPENDITURES OF APPROXIMATELY $3 MILLION
* REITERATING LONG-TERM GROWTH TARGETS FOR COMPARABLE SALES GROWTH Source text for Eikon: Further company coverage:
Our Standards: The Thomson Reuters Trust Principles. | ashraq/financial-news-articles | https://www.reuters.com/article/brief-one-group-hospitality-q1-gaap-earn/brief-one-group-hospitality-q1-gaap-earnings-per-share-0-01-idUSASC0A2GJ |
May 3 (Reuters) - Assured Guaranty Ltd:
* REPORTS RESULTS FOR FIRST QUARTER 2018 * Q1 NON-GAAP OPERATING EARNINGS PER SHARE $1.33
* Q1 EARNINGS PER SHARE $1.68 * Q1 EARNINGS PER SHARE VIEW $0.75 — THOMSON REUTERS I/B/E/S
* NET EARNED PREMIUMS IN Q1 2018 WERE $145 MILLION, COMPARED WITH $164 MILLION IN Q1 2017
* QTRLY TOTAL REVENUES $293 MILLION VERSUS $527 MILLION Source text for Eikon:
Our | ashraq/financial-news-articles | https://www.reuters.com/article/brief-assured-guaranty-reports-q1-eps-16/brief-assured-guaranty-reports-q1-eps-1-68-idUSASC09ZTL |
LONDON (Reuters) - The eastern Mediterranean region will face a sustained security threat if Cyprus continues unilateral operations there, Turkish President Tayyip Erdogan said on Monday.
The President of Turkey, Recep Tayyip Erdogan, speaks at Chatham House in central London, Britain May 14, 2018. REUTERS/Henry Nicholls Erdogan, on an official visit to Britain, made the comment in a speech at the Chatham House think tank in London. Turkey and Cyprus’s internationally recognized Greek Cypriot government have been locked in a public dispute over overlapping claims of jurisdiction for offshore oil and gas research.
Reporting by Karin Strohecker and Andrew MacAskill; Writing by David Dolan; Editing by Dominic Evans
| ashraq/financial-news-articles | https://www.reuters.com/article/us-britain-turkey-erdogan-cyprus/eastern-mediterranean-faces-security-threat-from-cyprus-operations-turkeys-erdogan-says-idUSKCN1IF16G |
May 31, 2018 / 10:44 AM / Updated 23 minutes ago Nokia sells digital health venture, executive to leave Reuters Staff 1 Min Read
HELSINKI (Reuters) - Nokia said on Thursday it had sold its small digital health business, including activity trackers and smartwatches, and said the head of its Technologies unit would step down. FILE PHOTO: The logo and ticker for Nokia are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 21, 2018. REUTERS/Brendan McDermid
The business was sold to Eric Carreel, co-founder and former chairman of the digital health business, for an undisclosed price. Nokia had announced the plan earlier this month.
Gregory Lee, the head of Nokia’s Technologies unit and former Samsung executive, will leave the company following the deal after less than a year in the job, Nokia said. Reporting by Jussi Rosendahl; Editing by Edmund Blair | ashraq/financial-news-articles | https://uk.reuters.com/article/us-nokia-health/nokia-sells-digital-health-venture-executive-to-leave-idUKKCN1IW1C1 |
4:15 PM EDT
Happy Monday, readers! This is Sy.
The common cold is so engrained into everyday life that it’s easy to forget just how, well, “common” it really is. American adults suffer an average of two to three colds per year and children catch even more, according to the Centers for Disease Control (CDC).
There are plenty of medications out there to treat annoying cold symptoms—but killing the viruses that cause it in the first place is a trickier feat. But researchers may have identified a compound that can stop some of the most common cold viruses, the rhinovirus, in its tracks, according to a new report published in the journal Nature .
To be clear: The scientists’ work is early-stage. But the mechanism it uses to tackle colds is striking. Developed at the Imperial College London, the molecule targets a protein in human cells that cold viruses use in order to replicate and conquer. By targeting this specific pathway, the compound could theoretically be used to thwart most viruses (and since it focuses on human proteins, it may not cause the virus to mutate its way away from danger).
An effective common cold cure would be significant not just as a mass market health need, but in treating more vulnerable people.
“The common cold is an inconvenience for most of us, but can cause serious complications in people with conditions like asthma and [chronic lung disease],” said lead researcher Ed Tate in a statement. “A drug like this could be extremely beneficial if given early in infection, and we are working on making a version that could be inhaled, so that it gets to the lungs quickly.”
But first things first: Proving that the current petri dish tech can be safe and effective in humans.
Read on for the day’s news. Sy Mukherjee @the_sy_guy DIGITAL HEALTH
Clover Health gets into the in-home genomic testing biz. Senior-focused health care startup Clover is getting into the genetic testing business—for free. The company is integrating genomic tests into its in-home primary care program at no cost (and on a voluntary basis). The goal? Better personalizing drug regimens for medically needy and vulnerable patients. ( Healthcare Dive ) Advertisement INDICATIONS
Medicare and drug price negotiations. Health and Human Services (HHS) Secretary Alex Azar on Monday answered a few more questions about the drug pricing proposal President Trump unveiled last Friday (you can read my initial writeup of Trump’s speech and the gigantic ensuing yawn by health stock investors here ). Azar did make some remarks that might startle the drug industry—including by pushing back on the oft-repeated big pharma talking point that lower prices automatically equates to less medical innovation. But he also argued strongly against the possibility that direct Medicare drug price negotiations would lower costs, arguing the only avenue for such a program to work would lead to undesirable care rationing. Still, drug makers will not be pleased with the administration’s plan to look into more negotiating power for pricey drugs under Medicare Part B, which are treatments that are administered by health care providers in a hospital setting. ( Reuters ) THE BIG PICTURE
WHO throws down the gauntlet on trans fat. The World Health Organization (WHO) is ringing the death knell for trans fats across to the globe with an ambitious new plan dubbed REPLACE. WHO Director-General Dr. Tedros Adhanom Ghebreyesus wants governments worldwide to ban trans fats by 2023 (a move that the U.S. FDA made after decades of lobbying battles between public health experts and big food makers). ( Fortune ) Advertisement | ashraq/financial-news-articles | http://fortune.com/2018/05/14/brainstorm-health-daily-05-14-18/ |
May 1, 2018 / 8:39 AM / Updated an hour ago UK factory growth sinks to 17-month low in April, further cuts chance of BoE hike in May Andy Bruce 4 Min Read
LONDON (Reuters) - British manufacturing growth slid to a 17-month low in April, sending sterling sinking and further reducing the chances of an interest rate hike by the Bank of England next week.
The pound fell below $1.37 for the first time in 3-1/2 months after Tuesday’s Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) dropped a full point to 53.9 in March, below the average forecast of 54.8 in a Reuters poll of economists.
It is the second disappointing data point in the space of a few days after official figures on Friday showed Britain’s economy barely grew in the first three months of 2018, with heavy snow only partly to blame.
Separate figures from the BoE showed consumers borrowing slowed sharply in March, in line with earlier data showing a big fall in retail sales that month.
“All in all, Markit’s manufacturing survey provides more evidence that the economy has fundamentally slowed this year, strengthening the case even more for the MPC to hold back from raising interest rates later this month,” Samuel Tombs, economist at consultancy Pantheon Macroeconomics, said.
Even before Friday’s weak growth figures, BoE Governor Mark Carney had said economic data had been mixed and suggested the BoE might wait rather than raise rates to a new post-financial-crisis high of 0.75 percent on May 10.
There was nothing in Tuesday’s PMI report to suggest British factories - which account for around a tenth of overall economic output - will regain the vigor they enjoyed in late 2017, when a recovery in the euro zone boosted British manufacturing.
Gauges of new orders and exports weakened to the lowest levels since mid-2017, while manufacturers took on staff at the slowest pace since February last year.
IHS Markit said weakness centered especially around producers of consumer goods who have been hit by the reduced spending power among households caused by last year’s rise in inflation.
The Bank of England data on Tuesday added to signs of a lacklustre consumer economy, as Britons borrowed only a net 254 million pounds ($347 million) in March - far weaker than the Reuters poll forecast for growth of 1.45 billion pounds.
The year-on-year growth rate in unsecured consumer lending tumbled to 8.6 percent, its slowest since November 2015, down from 9.4 percent in February.
The drop in the annual growth rate was the sharpest from one month to the next since August 2009. On a three-month on three-month basis, which gives a clearer idea of the short-term trend, lending growth slowed at the fastest pace since 2000 to an annualized rate of 6.3 percent.
“With real incomes barely rising, such a sharp fall in consumer credit does not bode well for either the high street or the overall growth outlook,” ING economist James Smith said.
IHS Markit said optimism among manufacturers dipped to a five-month low in April as concerns about Brexit, trade barriers and the overall economic climate remained widespread.
The PMI’s gauge of factory cost pressures cooled to a nine-month low, something that will be noted by BoE rate-setters who are keeping an eye on inflation pressures ahead of next week’s policy decision.
Separate PMIs for the construction industry and the much larger services sector are due on Wednesday and Thursday.
($1 = 0.7310 pounds) Plugs are placed on moulds for mugs in Hanley, Stoke-on-Trent, Britain March 28, 2018. REUTERS/Carl Recine Reporting by Andy Bruce; Additional reporting by David Milliken; Editing by Hugh Lawson | ashraq/financial-news-articles | https://uk.reuters.com/article/us-britain-economy-pmi/uk-factory-growth-sinks-to-17-month-low-in-april-further-cuts-chance-of-boe-hike-in-may-idUKKBN1I233H |
(Reuters) - As New York’s attorney general, Eric Schneiderman was one of the most visible and reliable members of the coordinated resistance to President Donald Trump’s policies. Before Trump was even elected president, Schneiderman buzzed around him like an angry bee, accusing Trump of defrauding Trump University students and launching an investigation into his charitable foundation. Since Trump took office, Schneiderman has stung repeatedly, filing more than 100 lawsuits or administrative actions in response to Trump’s environmental, labor and civil rights rollbacks.
In just the last month, the New York AG’s office brought challenges to new fuel economy standards, the prospective addition of a question about citizenship to the 2020 census, the proposed repeal of the Clean Power Plan and a Trump plan to grant amnesty to employers that violated state wage laws.
On Monday night, The New Yorker reported that four women who said they had had romantic relationships or encounters with Schneiderman alleged they had been subjected to nonconsensual physical violence. Reuters has not independently confirmed the accusations.
Schneiderman denied assaulting anyone or engaging in nonconsensual sex but resigned as New York’s AG within hours of the story’s publication, saying in a statement that the allegations would prevent him leading the AG’s office effectively. On Tuesday, New York Solicitor General Barbara Underwood was appointed acting AG.
So now what happens to the New York AG’s litigation against the Trump administration? Will Schneiderman’s resignation delay ongoing challenges to controversial Trump policies – or deter opposition to policies not yet announced?
Not according to six Democratic AGs who’ve worked with Schneiderman’s office on litigation to reverse Trump initiatives. In an interview, Washington, D.C., AG Karl Racine said he is “100 percent confident” that he and his colleagues will continue to collaborate on strategic opposition to Trump policies. In emailed statements, Attorneys General Xavier Becerra of California, Maura Healey of Massachusetts, Robert Ferguson of Washington state, Josh Shapiro of Pennsylvania and Hector Balderas of New Mexico all said they and their colleagues will be as aggressive as ever.
“Our multistate investigations and litigation will continue and we will not miss a beat,” Shapiro’s statement said.
“This work isn’t about one person, it’s about the dedicated women and men in Attorneys General’s offices around the country,” Healey’s statement said. “That work continues.”
When the New York AG’s office challenged Trump administration policies, it was almost always part of a coalition of Democratic state attorneys general, as a December 2017 report from the Democratic Attorneys General Association shows. Schneiderman was a leader on several important issues, including the travel ban, the rescission of the Deferred Action for Childhood Arrivals program and the ban on transgender troops, said DAGA spokeswoman Lizzie Ulmer.
But Ulmer said she expects other Democratic AGs to fill whatever void Schneiderman’s resignation creates. “We never relied on any single AG to file actions,” said Racine, the D.C. attorney general. “As co-chair of DAGA, I can tell you that no single office has carried the load in a disproportionate way.”
Washington AG Ferguson said Democratic AGs have learned to forge alliances to combat the Trump administration. He said there is no reason to think those partnerships will be weakened under New York’s acting AG, Underwood, who has been playing a leading role in the multistate opposition to DACA’s rescission, for instance.
Ulmer of the Democratic AGs’ group said the executive board, which convened by phone after the New Yorker article appeared, was “troubled” by the allegations against Schneiderman. The group’s executive director issued a statement decrying domestic and sexual violence and calling for the highest standards of accountability for state AGs. It’s significant, said Racine, that the allegations against Schneiderman relate only to his personal conduct, not his work as an AG and certainly not to multistate litigation in which the New York AG’s office was involved.
Ulmer said it’s impossible to know if the accusations against Schneiderman will diminish his former office’s influence in opposing Trump policies but said that, in a way, the question is beside the point. “It’s not a matter of what we’re losing,” she said. “What you’re going to see is continued evidence that Democratic state AGs will work together.”
The Democratic AGs will certainly be tested by Schneiderman’s resignation. He was a megaphone against President Trump’s policies. It will be interesting to see if other AGs have as loud a voice.
The views expressed in this article are not those of Reuters News.
| ashraq/financial-news-articles | https://www.reuters.com/article/legal-us-otc-ags/democratic-state-ags-vow-to-continue-trump-challenges-idUSKBN1I93DN |
(Reuters Health) - Children with eczema whose bath water contains added moisturizers may get no more relief from the itchy skin condition than they would without the extra bath products, a recent experiment suggests.
For the study, UK researchers followed 482 children aged 1 to 11 years old with eczema for one year. During the study, all of the kids stuck to their usual treatment routine - which could include moisturizing creams and ointments and topical corticosteroids as needed - and half of them were also randomly asked to bathe with one of three popular bath additives.
There was no meaningful difference in the severity of eczema symptoms between the two groups after four months, or after one year, the study found.
“This is important for families of children with eczema as it simplifies treatment in that they no longer need to use emollient bath additives, although they should continue to use their other treatments, including leave-on emollients, also known as moisturizers,” said lead study author Dr. Miriam Santer of the University of Southampton.
“Leave-on emollients such as moisturizers or topical creams or ointments help to lock moisture into the skin and lock out irritants,” Santer said by email. “Previously there was some suggestion that emollient bath additives poured into the water can leave a greasy ‘film’ on the child providing a similar effect, but our study shows this doesn’t work.”
Eczema is common in childhood, and is often treated with different forms of emollients, or moisturizers that can help soften and smooth irritated skin. During flare-ups of more severe symptoms, kids may also be prescribed topical corticosteroids.
Doctors generally agree that kids should use moisturizing creams and ointments, and that children shouldn’t wash with soap because it can irritate the skin, researchers note in The BMJ. But there’s less consensus in the medical community about whether children should also use emollient bath additives.
In the current study, doctors prescribed one of the three most-prescribed bath additives in the UK - Oilatum, Balneum or Aveeno - to the group chosen to add these to their treatment regimen. Kids could also use other bath additives, as long as they didn’t contain antimicrobials, which can irritate the skin.
Overall, 93 percent of parents of children in the bath additives group said they always used these products or did so at least half of the time. In the other group, 92 percent of parents said they never used bath additives or did it less than half of the time.
By the end of the study, there were no meaningful differences between groups in the number of eczema exacerbations, the impact of eczema on quality of life or the type or quantity of corticosteroids used for severe flare-ups.
One limitation of the study is that it wasn’t designed to test the effectiveness of different types of emollients, the authors note. While the findings suggest that bath additives don’t help eczema, the results don’t offer fresh insight into the effectiveness of leave-on creams and ointments to prevent eczema flare-ups or the use of emollients as soap substitutes.
“It is important to note that the study encouraged the use of emollient soap substitutes and regular emollient use during the day as well as anti-inflammatory treatment as prescribed by the local family doctor, so what the study says is that bath emollients do not have a significant add-on effect, in addition to standard care,” said Carsten Flohr, co-author of an accompanying editorial and a researcher with St. John’s Institute of Dermatology at King’s College London.
“Bath additives only stay on the skin for a short period of time and therefore are unlikely to have a large effect,” Flohr said by email.
SOURCE: bit.ly/2rTq3gt and bit.ly/2rU7qJc The BMJ, online May 3, 2018.
| ashraq/financial-news-articles | https://www.reuters.com/article/us-health-kids-eczema/moisturizing-bath-washes-may-not-help-kids-with-eczema-idUSKCN1IJ2I3 |
The Rolling Stones kick off tour in London. 8:14am IST - 01:50
The Rolling Stones thrilled fans in London, England with the first UK gig of their new tour. Rough Cut
The Rolling Stones thrilled fans in London, England with the first UK gig of their new tour. Rough Cut //reut.rs/2KNsRDw | ashraq/financial-news-articles | https://in.reuters.com/video/2018/05/23/the-rolling-stones-kick-off-tour-in-lond?videoId=429479913 |
Bankrupt Orianna Heath Systems’ proposed restructuring deal with its landlord and sponsor of its plan of reorganization is tainted by conflicts and should be rejected, according to the official creditors committee of the nursing home chain.
4 West Holdings Inc, which operates nursing homes in seven states as Orianna, reached a restructuring deal with its landlord Omega Healthcare Investors Inc and plan sponsor prior to its March bankruptcy filing in the U.S. Bankruptcy Court in Dallas.
To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2IP3KiX
| ashraq/financial-news-articles | https://www.reuters.com/article/4-west-holdings-bankrputcy/creditors-blast-conflicts-in-oriannas-bankruptcy-deal-idUSL2N1SW00F |
(Adds comment from ExxonMobil in 6th paragraph.)
SINGAPORE, May 14 (Reuters) - Sales of Kutubu Light crude oil cargoes will resume in the Asia spot market in July after a major earthquake in Papua New Guinea shut production from late February to early April, three industry sources said on Monday.
While production at the facility resumed in early April, producers of the light crude oil have been trying to meet previously committed cargoes to buyers which had been delayed due to the earthquake, one of the people said.
The sources declined to be identified because they were not authorised to speak with media.
The July-loading programme will be the first time since February that Kutubu Light crude will be fully available in the spot market, the source added.
ExxonMobil Corp will export one of two Kutubu Light cargoes for loading over July 1 to 5 and Australia’s Oil Search Ltd will export a cargo to load over July 17 to 21, two of the sources said.
An ExxonMobil spokeswoman said the company does not typically comment on commercial matters. Oil Search did not immediately reply to an email requesting comment.
The resumption of Kutubu Light crude oil could weigh on premiums of ultra-light crude oil cargoes as there is ample supply in the region, said one Singapore-based trader, who declined to be identified because he was not authorised to speak with media. (Reporting by Jessica Jaganathan and Florence Tan Editing by Kenneth Maxwell and Christian Schmollinger)
| ashraq/financial-news-articles | https://www.reuters.com/article/papua-kutubu/update-1-papua-new-guineas-kutubu-light-crude-oil-exports-to-resume-in-spot-trade-sources-idUSL3N1SL1YV |
ABUJA (Reuters) - Nigeria’s former vice president Atiku Abubakar will privatise parts of the country’s state oil company and allow the naira currency to float to attract foreign investment if elected as head of state, he told Reuters.
Former Nigerian Vice President Atiku Abubakar attends an interview with Reuters in Abuja, Nigeria May 11, 2018. REUTERS/Paul Carsten Abubakar also confirmed that he intends to run in next year’s presidential election, becoming the biggest opposition heavyweight to say he will take on Muhammadu Buhari.
The winner of February’s poll will lead Africa’s top oil producer and most populous nation, which is central to regional stability as it battles Islamist militants in the northeast.
Abubakar, a former key ally of President Buhari whose resources helped propel him to power, quit the ruling party in November and re-joined the opposition People’s Democratic Party (PDP) a month later.
He has long enjoyed support from the business elite in Nigeria’s commercial capital Lagos for his conservative-capitalist ideals and, as vice president in a PDP administration from 1999-2007, he implemented a programme of liberalisation in areas including telecoms sector.
NEXT STEPS Abubakar said he would go further if elected president.
“I am also going to expand it to include the oil and gas sector which have not been touched at all and other major sectors of the economy like mining, solid minerals,” he said.
Abubakar said he would privatise parts of Nigerian National Petroleum Corporation (NNPC) which has been beset by decades of mismanagement and is crucial to the OPEC member’s economic fortunes. He did not specify the parts that would be privatised.
“I am a strong believer in very, very small government and also the private sector,” he said.
A drop in crude oil prices from late 2014 pushed Nigeria into its first recession in 25 years in 2016, spawning chronic dollar shortages because oil receipts make up two-thirds of government revenue and most of the country’s foreign exchange.
The economy moved out of recession last year but growth remains weak and multiple exchange rates remain in place, imposed by the central bank to support Buhari’s insistence that the naira should not be allowed to float.
“I will allow the naira to float because I believe that is one of the ways foreign direct investment can be encouraged to come in,” said Abubakar, who hopes to replicate Buhari’s 2015 feat of winning a presidential election at the fourth attempt.
NORTH POLL Buhari, who took office in 2015, and whoever becomes president next will face challenges ranging from weak economic growth to communal violence between semi-nomadic herdsmen and farmers, as well as the Boko Haram insurgency.
Abubakar - who, like Buhari, is a Muslim from the north - said voters would welcome someone who could revive their fortunes, adding that of his three previous presidential campaigns he was only once rejected by the electorate. He was not selected as a party candidate on the other two occasions.
Parties must select their candidate by Oct. 7. The next president should be a northerner, under an unofficial power-sharing agreement under which the presidency alternates between the north and south after every two four-year terms.
Bismarck Rewane, chief executive of Lagos-based consultancy Financial Derivatives, said the former vice president’s familiarity and age could be a disadvantage.
“To upset the Buhari candidature, you need something different: someone young, energetic and charismatic. You need something distinct from the current leadership,” he said.
Abubakar lacked Buhari’s popularity in northern states and at 71, just four years younger than the president, would struggle to generate “inter-generational appeal”, Rewane said.
The U.N. estimates that the median age in Nigeria is 18.
Editing by Alexander Smith
| ashraq/financial-news-articles | https://in.reuters.com/article/nigeria-politics/exclusive-nigerias-abubakar-to-privatise-parts-of-state-oil-firm-if-elected-idINKCN1IE0QE |
Thursday's inflation data could be a catalyst for an important interest rate move Consumer inflation data could be big for markets if it doesn't hit the mark. A hotter-than-expected CPI reading could trigger a sell-off in Treasurys and drive interest rates higher. Bond prices move opposite yield. The focus is on the benchmark U.S. 10-year Treasury, a rate that is tied to many business and consumer loans, including the home mortgage. 5 Hours Ago | 04:46
If Thursday's consumer inflation data comes in hotter than expected, it could trigger an important interest rate move, which is being watched across financial markets.
Traders await the reaction in the benchmark 10-year Treasury yield to the 8:30 a.m. ET CPI data. The 10-year was hovering at 3 percent late Wednesday, just below a recent high of 3.033 percent. That is an important level it would need to test and break to reach 3.047 percent, an even more important technical level. A break above there could put yields on a trajectory higher.
The 10-year is important since it is the rate that many corporate and consumer loans are tied to, including home mortgages.
Economists expect the consumer price index to rise 0.3 percent, or 2.5 percent year over year on headline, with core up 0.2 percent or 2.2 percent year over year, according to Thomson Reuters.
"The CPI is going to decide the winners from the losers. PCE is something the Fed tracks, but this is the prices that most people see," said Aaron Kohli, fixed income strategist at BMO. "Which side of that tripwire of 3.033 you fall on is really up to CPI."
Kohli said whether inflation is going to start getting hotter was the topic of much debate in the bond market.
As the 10-year yield rose, so did the 2-year, and it reached a high of 2.55 percent Wednesday.
Inflation over 2 percent is important since that is the Fed's target, and if inflation rises much above that level, the market will begin to look for more Fed rate hikes. The next hike is expected in June, but the market is still unclear whether there will be one or two after that this year.
Quincy Krosby, Prudential Financial chief market strategist, said she's awaiting the reaction in the 10-year and its yield could slip if data disappoints. She said stocks could take a move higher in yields in stride, as long as it's not triggered by a sharp rise in inflation.
"When all is said and done this market is looking for direction. There's a tug of war in the market over where we're going with the economic data, the Fed, oil prices ... we could go on and on," she said.
Oil futures jumped 3 percent Wednesday with West Texas Intermediate above $71 per barrel for the first time since November 2014. Oil rose after President Donald Trump withdrew from the Iran nuclear agreement and said the U.S. would reinstate sanctions on Iran.
A 3 percent 10-year yield is important because as rates head higher to noticeable round levels some investors could see it as a reason to move some money from riskier assets into fixed income for the yield. Patti Domm CNBC Markets Editor Related Securities | ashraq/financial-news-articles | https://www.cnbc.com/2018/05/09/thursdays-inflation-data-could-be-a-catalyst-for-an-important-interest-rate-move.html |
DUBLIN, May 21 (Reuters) - Ryanair Chief Executive Michael O’Leary said on Monday he was not expecting strikes or disruptions over its discussions to recognise trade unions but could not rule them out and would face any action down.
Ryanair averted the threat of widespread Christmas strikes by unilaterally recognising unions in December for the first time in its 32-year history, but it has struggled to formalise relations in some countries.
“We’re not expecting them, but it’s important for investors that we don’t rule them out. If there are (strikes), we will take them as we have in Germany and Portugal. Being unionised means we will have occasional strikes,” O’Leary said in a video presentation following quarterly results.
O’Leary added that he expected to finalise pilot recognition agreements in Spain and Germany in the next few months and that Ryanair was also on track to sign its first cabin crew recognition agreements in a month or two. (Reporting by Padraic Halpin, editing by Louise Heavens)
| ashraq/financial-news-articles | https://www.reuters.com/article/ryanair-results-ceo/ryanair-ceo-says-not-expecting-strikes-but-cannot-rule-them-out-idUSS8N1NY00H |
FRANKFURT (Reuters) - Proxy adviser Glass Lewis has recommended that shareholders in Deutsche Bank ( DBKGn.DE ) vote against ratifying the actions of the management and supervisory boards at the lender’s 2018 annual general meeting next month.
FILE PHOTO: A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo German companies typically ask shareholders to approve the actions of their boards over the previous year at the annual shareholder meetings. Votes against the boards’ actions amount to a vote of no confidence but are largely symbolic.
Deutsche Bank declined to comment.
“There seems to be strong consensus that performance has fallen well short of expectations, that restructuring measures have taken too long to be implemented and have yet to yield any substantial results,” Glass Lewis wrote in a report.
Last week Deutsche Bank, under new Chief Executive Christian Sewing, announced it was paring back its global investment bank after a sharp fall in quarterly earnings.
Deutsche’s annual shareholder meeting is scheduled to take place on May 24.
(This story has been refiled to correct spelling in headline.)
Reporting by Tom Sims; Editing by David Goodman
| ashraq/financial-news-articles | https://www.reuters.com/article/us-deutsche-bank-agm/proxy-advisor-glass-lewis-urges-vote-against-deutsche-bank-board-actions-at-agm-idUSKBN1I1235 |
WESTFORD, Mass., Kadant Inc. (NYSE:KAI) announced today that its Board of Directors has authorized the repurchase of up to $20 million of its equity securities effective May 16, 2018 through May 16, 2019. Repurchases may be made in public or private transactions, including under Securities Exchange Act Rule 10b-5-1 trading plans. The timing and amount of any repurchases will be at the discretion of Company management and will be based on market conditions and other considerations, including limitations contained in our credit agreement entered into on March 1, 2017. Through May 16, 2018, under the existing $20 million authorization that will expire on May 17, 2018, the Company has not repurchased any shares of its common stock.
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with approximately 2,500 employees in 20 countries worldwide. For more information, visit www.kadant.com .
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements regarding any plans to repurchase our equity securities. These forward-looking statements represent our expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading "Risk Factors" in Kadant’s annual report on Form 10-K for the year ended December 30, 2017 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our customers’ ability to obtain financing for capital equipment projects; the variability and uncertainties in sales of capital equipment in China; international sales and operations; the oriented strand board market and levels of residential construction activity; development and use of digital media; currency fluctuations; price increases or shortages of raw materials; dependence on certain suppliers; our acquisition strategy; failure of our information systems or breaches of data security; changes in government regulations and policies and compliance with laws; our internal growth strategy; competition; soundness of suppliers and customers; changes in our tax provision or exposure to additional tax liabilities; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; economic conditions and regulatory changes caused by the United Kingdom’s likely exit from the European Union; our debt obligations; restrictions in our credit agreement; loss of key personnel; protection of patents and proprietary rights; fluctuations in our share price; soundness of financial institutions; environmental laws and regulations; anti-takeover provisions; and reliance on third-party research.
Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
[email protected]
or
Media Contact Information:
Wes Martz, 269-278-1715
[email protected]
Source:Kadant Inc | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/16/globe-newswire-kadant-authorizes-share-repurchase.html |
May 18, 2018 / 6:38 PM / Updated 3 hours ago Moisturizing bath washes may not help kids with eczema Lisa Rapaport 4 Min Read
(Reuters Health) - Children with eczema whose bath water contains added moisturizers may get no more relief from the itchy skin condition than they would without the extra bath products, a recent experiment suggests.
For the study, UK researchers followed 482 children aged 1 to 11 years old with eczema for one year. During the study, all of the kids stuck to their usual treatment routine - which could include moisturizing creams and ointments and topical corticosteroids as needed - and half of them were also randomly asked to bathe with one of three popular bath additives.
There was no meaningful difference in the severity of eczema symptoms between the two groups after four months, or after one year, the study found.
“This is important for families of children with eczema as it simplifies treatment in that they no longer need to use emollient bath additives, although they should continue to use their other treatments, including leave-on emollients, also known as moisturizers,” said lead study author Dr. Miriam Santer of the University of Southampton.
“Leave-on emollients such as moisturizers or topical creams or ointments help to lock moisture into the skin and lock out irritants,” Santer said by email. “Previously there was some suggestion that emollient bath additives poured into the water can leave a greasy ‘film’ on the child providing a similar effect, but our study shows this doesn’t work.”
Eczema is common in childhood, and is often treated with different forms of emollients, or moisturizers that can help soften and smooth irritated skin. During flare-ups of more severe symptoms, kids may also be prescribed topical corticosteroids.
Doctors generally agree that kids should use moisturizing creams and ointments, and that children shouldn’t wash with soap because it can irritate the skin, researchers note in The BMJ. But there’s less consensus in the medical community about whether children should also use emollient bath additives.
In the current study, doctors prescribed one of the three most-prescribed bath additives in the UK - Oilatum, Balneum or Aveeno - to the group chosen to add these to their treatment regimen. Kids could also use other bath additives, as long as they didn’t contain antimicrobials, which can irritate the skin.
Overall, 93 percent of parents of children in the bath additives group said they always used these products or did so at least half of the time. In the other group, 92 percent of parents said they never used bath additives or did it less than half of the time.
By the end of the study, there were no meaningful differences between groups in the number of eczema exacerbations, the impact of eczema on quality of life or the type or quantity of corticosteroids used for severe flare-ups.
One limitation of the study is that it wasn’t designed to test the effectiveness of different types of emollients, the authors note. While the findings suggest that bath additives don’t help eczema, the results don’t offer fresh insight into the effectiveness of leave-on creams and ointments to prevent eczema flare-ups or the use of emollients as soap substitutes.
“It is important to note that the study encouraged the use of emollient soap substitutes and regular emollient use during the day as well as anti-inflammatory treatment as prescribed by the local family doctor, so what the study says is that bath emollients do not have a significant add-on effect, in addition to standard care,” said Carsten Flohr, co-author of an accompanying editorial and a researcher with St. John’s Institute of Dermatology at King’s College London.
“Bath additives only stay on the skin for a short period of time and therefore are unlikely to have a large effect,” Flohr said by email.
SOURCE: bit.ly/2rTq3gt and bit.ly/2rU7qJc The BMJ, online May 3, 2018. | ashraq/financial-news-articles | https://uk.reuters.com/article/us-health-kids-eczema/moisturizing-bath-washes-may-not-help-kids-with-eczema-idUKKCN1IJ2I3 |
May 22 (Reuters) - Eagle Bancorp Montana Inc:
* EAGLE BANCORP MONTANA SAYS ON MAY 17, LARRY A. DREYER, CHAIRMAN OF BOARD, NOTIFIED CO OF INTENTION TO RETIRE EFFECTIVE OCTOBER 18, 2018 - SEC FILING
* EAGLE BANCORP MONTANA - OUTSIDE DIRECTOR AND VICE CHAIRMAN RICK HAYS WILL ASSUME POSITION OF CHAIRMAN UPON DREYER S RETIREMENT Source text: ( bit.ly/2LisDVU ) Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-eagle-bancorp-montana-says-chairma/brief-eagle-bancorp-montana-says-chairman-to-retire-effective-oct-18-sec-filing-idUSFWN1ST0LQ |
The closest I came to getting killed in Iraq was during the summer of 2005. I spotted an enemy fighter firing a rocket-propelled grenade right at my Humvee. Somehow he missed, but for a moment I was sure I wasn’t going home.
Whenever something like that happened, afterward came a mental flash. In my mind’s eye, I’d see my funeral or look down on my corpse. Soldiers think about mortality more than most. I still do. We also think—especially over Memorial Day weekend—about those who died on other battlefields.
... | ashraq/financial-news-articles | https://www.wsj.com/articles/a-fallen-and-forgotten-doughboys-legacy-1527201526 |
BEIJING, May 11 (Reuters) - London aluminium prices fell for a second session on Friday as technical selling continued to affect the light metal despite plunging London Metal Exchange (LME) inventories. FUNDAMENTALS * LME ALUMINIUM: Three-month aluminium on the LME was down by 1 percent to $2,312 a tonne by 0217 GMT, having closed down 1.3 percent in the previous session. * ALUMINIUM: The metal is down 1.6 percent in London so far this week but is still up 15.1 percent since April 5, the day before the United States imposed sanctions on Russian producer Rusal. * RUSAL: Rusal boosted first-quarter recurring net profit on Friday amid stronger aluminium prices, but warned that sanctions imposed by the United States in April could harm its business. * EGA: Emirates Global Aluminium's stock market listing is likely to slip to 2019 because of turmoil in global aluminium markets after the United States imposed sanctions on Rusal, three sources familiar with the deal said. * COPPER: LME copper edged down 0.1 percent, having jumped by 1.6 percent on Thursday as inventories continued to fall, and remains on course for a 1.2 percent gain this week. The most-traded July copper contract on the Shanghai Futures Exchange climbed 0.7 percent to 51,470 yuan ($8,113) a tonne. For the top stories in metals and other news, click or MARKETS NEWS * Asian markets started on a firm footing and the dollar eased on Friday as softer-than-forecast U.S. inflation data tempered expectations for faster Federal Reserve interest rate rises this year. DATA AHEAD (GMT) 1230 U.S. Import prices Apr 1230 U.S. Export prices Apr 1400 U.S. University of Michigan sentiment index May PRICES BASE METALS PRICES 0201 GMT Three month LME copper 6908 Most active ShFE copper 51470 Three month LME aluminium 2313 Most active ShFE aluminium 14675 Three month LME zinc 3091.5 Most active ShFE zinc 23705 Three month LME lead 2324 Most active ShFE lead 19125 Three month LME nickel 13905 Most active ShFE nickel 103980 Three month LME tin 20885 Most active ShFE tin 145420 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 401.98 LME/SHFE ALUMINIUM LMESHFALc3 -2343.08 LME/SHFE ZINC LMESHFZNc3 445.77 LME/SHFE LEAD LMESHFPBc3 609.39 LME/SHFE NICKEL LMESHFNIc3 -685.19 ($1 = 6.3440 Chinese yuan renminbi) (Reporting by Tom Daly; editing by Richard Pullin)
| ashraq/financial-news-articles | https://www.reuters.com/article/global-metals/metals-london-aluminium-slips-on-course-for-1-6-pct-weekly-drop-idUSL3N1SI1KI |
HOUSTON, Kraton Corporation (NYSE: KRA) (the "Company") today announced the results of the previously announced tender offer (the "Tender Offer") by its wholly-owned subsidiaries, Kraton Polymers LLC ("Kraton LLC") and Kraton Polymers Capital Corporation (together with Kraton LLC, the "Issuers"), to purchase any and all of the Issuers' outstanding 10.500% Senior Notes due 2023 (the "Notes"), which commenced on May 14, 2018 and expired at 5:00 p.m., New York City time, on May 18, 2018 (the "Expiration Date").
According to information provided by D.F. King & Co., Inc., the information agent and tender agent for the Tender Offer, $157,491,000 aggregate principal amount of the Notes were validly tendered and not validly withdrawn at or prior to the Expiration Date. D.F. King & Co., Inc. has also advised that an additional $839,000 aggregate principal amount of Notes were tendered in accordance with the guaranteed delivery procedures.
The Issuers intend to accept for purchase, and make payment for, the Notes that have been validly tendered and not validly withdrawn (including Notes delivered under the guaranteed delivery procedures) concurrently with the consummation of the previously announced offering by the Issuers of the 5.25% Senior Notes due 2026 (the "New Notes") and the borrowings by Kraton LLC of additional U.S. dollar denominated term loans (the "Incremental Term Loans") under the Company's existing senior secured term loan facility, which are expected to occur on May 24, 2018 (the "Settlement Date").
As previously announced, the Company will redeem on June 13, 2018 any and all Notes not purchased upon completion of the Tender Offer (the "Redemption"). Holders of such Notes will receive the "make-whole" redemption price as calculated and provided for under the indenture governing the Notes (the "Indenture"), and accrued and unpaid interest will be paid to the redemption date. In addition, the Issuers may satisfy and discharge the Notes pursuant to the terms of the Indenture as soon as the Settlement Date (the "Satisfaction and Discharge").
The Issuers retained J.P. Morgan Securities LLC and Credit Suisse (USA) LLC to act as dealer managers in connection with the Tender Offer. Questions may be directed to J.P. Morgan Securities LLC collect at (212) 270- 9375 or toll free at (866) 834-4666 or to Credit Suisse Securities (USA) LLC collect at (212) 538-2147 or toll free at (800) 820-1653, respectively. The Issuers retained D.F. King & Co., Inc. to act as the information agent and tender agent for the Tender Offer. Questions and requests for additional documents may be directed to D.F. King at (877) 361-7966 (toll free) or (212) 269-5550 (collect) or by email: [email protected] . Copies of the Offer to Purchase and Notice of Guaranteed Delivery are available at the following web address: www.dfking.com/kra .
This press release shall not constitute an offer to sell, or a solicitation of an offer to purchase, any securities, shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful, and shall not constitute a notice of redemption.
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release contain forward-looking statements. This press release includes forward-looking statements that reflect our plans, beliefs, expectations, and current views with respect to, among other things, our expectations regarding the consummation of the offering of the New Notes, the Incremental Term Loans, the Tender Offer, the Redemption and the Satisfaction and Discharge. Forward-looking statements are characterized by the use of words such as "outlook," "believes," "estimates," "expects," "projects," "may," "intends," "plans," "anticipates," "forsees" or "future."
All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed in forward-looking statements. These risks and uncertainties are more fully described in our latest Annual Report on Form 10-K, including but not limited to "Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" therein, and in our other filings with the Securities and Exchange Commission, and include, but are not limited to, risks related to: the Company's ability to repay its indebtedness and risks associated with incurring additional indebtedness; the Company's reliance on third parties for the provision of significant operating and other services; conditions in, and risks associated with operating in, the global economy and capital markets; fluctuations in raw material costs; limitations in the availability of raw materials; competition in the Company's end-use markets; and other factors of which we are currently unaware or deem immaterial. Readers are cautioned not to place undue reliance on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update such information in light of new information or future events.
For Further Information:
H. Gene Shiels 281-504-4886
View original content with multimedia: releases/kraton-corporation-announces-results-of-cash-tender-offer-for-any-and-all-of-the-outstanding-10-500-senior-notes-due-2023--300651614.html
SOURCE Kraton Corporation | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/21/pr-newswire-kraton-corporation-announces-results-of-cash-tender-offer-for-any-and-all-of-the-outstanding-10-point-500-percent-senior-notes.html |
May 24, 2018 / 1:55 AM / Updated 26 minutes ago Westfield shareholders approve Unibail-Rodamco $16 billion takeover offer Reuters Staff 1 Min Read
(Reuters) - Shareholders of Westfield Corp ( WFD.AX ), an Australian shopping mall giant, voted in favour of a $16 billion (12 billion pounds) takeover offer from Unibail-Rodamco ( UNBP.AS ), Westfield Chairman Frank Lowy said on Thursday, closing the biggest takeover offer of an Australian company on record. A Westfield Corp sign adorns the side of a building in central Sydney, Australia, December 12, 2017. REUTERS/David Gray
This was the final lap for the takeover, having already received the green signal from Unibail’s shareholders, boards of both companies, and Australia’s Foreign Investment Review Board.
Unibail, Europe’s biggest property firm, and Westfield announced the deal in December, looking to create a global leader in a sector that is grappling with the online shopping challenges led by Amazon.
Shares of Westfield had jumped nearly 15 percent on December 13 after the deal was announced.
Westfield shares were down 0.3 percent on Thursday, in line with the broader market’s decline of 0.2 percent. Reporting by Chris Thomas in Bengaluru, Editing by Sherry Jacob-Phillips | ashraq/financial-news-articles | https://uk.reuters.com/article/uk-westfield-m-a-unibail-rodamco/westfield-shareholders-approve-unibail-rodamco-16-billion-takeover-offer-idUKKCN1IP07L |
NEW YORK(Reuters) - (The writer is a Reuters contributor. The opinions expressed are his own.)
In Hollywood, fame can be fleeting and a career with staying power is even more unusual.
Antonio Banderas has managed to fashion the latter, developing from a young heartthrob to, well, an older heartthrob. He first made his mark in the 1980s in Spanish films, especially Spanish filmmaker Pedro Almodovar’s “Tie Me Up! Tie Me Down,” and was a megastar by 1998’s “The Mask of Zorro.” He is still rolling out several new projects per year.
For the latest in the Reuters series, “Life Lessons,” Banderas, 57, called in from the Hungarian set of National Geographic’s latest “Genius” anthology series, where he plays Pablo Picasso.
Q: Did your parents put you to work early when you were growing up in southern Spain?
A: They detected soon enough that I was in love with theater. I started going with them at age 10 to plays in Malaga. When I decided to jump into acting at age 15, they stopped loving it, and started hating it. They tried to stop me, but by then they couldn’t stop it.
Q: Was money tight in those early acting years?
A: Money didn’t even exist for me at that time. One year I lived in nine different places, and landlords kept throwing me out when they realized I didn’t have any money! I remember walking down the street and looking between the sidewalk and the cars, in the hope that somebody dropped some coins. I did that every single day for months at a time. That’s how desperate I was.
Q: After that lean period, was it strange to become extremely successful?
A: It only happened little by little. When you are doing theater you never really become famous, because it’s so local, and the number of people who see you is very limited. But then Pedro Almodovar came along.
I made a rule for myself: not to believe anything that was happening to me. That kept me sane. After all, in show business, people come and go all the time. You are only as good as the last thing you’ve done. But when I started to go to places I had never been, like Russia or Japan, and was getting recognized on the street, that is when I understood the worldwide dimension of cinema.
Q: What did you do with the money that was coming in?
A: I bought a little house for my parents in Malaga. But my father was so sweet. He didn’t really accept it as theirs. So he would write down everything he spent, like fixing a water tap, or buying a rubber band for five cents. He was trying to justify all his expenses. I said ‘Papa, it’s your home. You don’t have to do this!’ But that is how much respect he had for money. Why? Because he was raised without any.
Q: Beyond acting, you have a winery in Spain. What have you taken from that experience?
A: I have around eight acres in the north, where we produce 8,000 bottles a year from grapes like syrah, tempranillo and grenache. It’s not a real business, though. It’s something I do to cover the expenses, and mainly give the wine to my friends.
Where I really learned about business was in perfumes. I have worked with the company Puig for over 20 years, and we sell in something like 93 countries. I learned you can be very ethical and creative. Now I am designing watches, and glasses, and even studying fashion. It keeps me young.
Q: How do you maximize your philanthropic impact?
A: I have a foundation called Lagrimas y Favores. It does a lot of work in my hometown of Malaga, where the big tradition is Easter Week celebrations. So along with my brotherhood – the same kids I used to play in the streets with, decades ago – we fund things like scholarships for kids, and palliative care for terminal cancer patients, and a supermarket for families in need.
Q: What lessons do you pass along to your kids?
A: I have one biological child, and two stepkids I helped raise. I just try to respect them and help them to become independent people, with a capacity to think for themselves and stand up for what they believe in.
Editing by Beth Pinsker and Jeffrey Benkoe
| ashraq/financial-news-articles | https://www.reuters.com/article/us-money-lifelessons-banderas/unmasked-life-lessons-with-actor-antonio-banderas-idUSKCN1IF2B6 |
May 14 (Reuters) - Honey Badger Exploration Inc:
* HONEY BADGER ANNOUNCES PRIVATE PLACEMENT FINANCING * HONEY BADGER EXPLORATION - INTENDS TO OFFER FOR SALE “FLOW-THROUGH” COMMON SHARES OF COMPANY AT A PRICE OF $0.13 PER FT SHARE
* HONEY BADGER EXPLORATION - INTENDS TO OFFER FOR SALE NON-FLOW-THROUGH UNITS OF COMPANY AT A PRICE OF $0.10 PER NON-FT UNIT Source text for Eikon: Further company coverage:
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© 2018 Reuters. All Rights Reserved. | ashraq/financial-news-articles | https://www.reuters.com/article/brief-honey-badger-announces-private-pla/brief-honey-badger-announces-private-placement-financing-idUSASC0A24A |
May 2 (Reuters) - Halcon Resources Corp:
* HALCÓN RESOURCES ANNOUNCES FIRST QUARTER 2018 RESULTS, PROVIDES AN OPERATIONAL UPDATE AND REVISED 2018 GUIDANCE
* Q1 ADJUSTED LOSS PER SHARE $0.06 * Q1 REVENUE $49.3 MILLION VERSUS I/B/E/S VIEW $44.7 MILLION
* Q1 EARNINGS PER SHARE VIEW $-0.03 — THOMSON REUTERS I/B/E/S
* HALCON RESOURCES - AS OF MAY 2, 2018, HALCÓN HAD 10,673 BARRELS PER DAY OF OIL HEDGED FOR LAST NINE MONTHS OF 2018 AT AVERAGE PRICE OF $52.92/BARREL
* FOR 2019, COMPANY HAS 14,000 BBL/D OF OIL HEDGED AT AN AVERAGE PRICE OF $55.76 PER BARREL
* QTRLY LOSS PER SHARE $0.02 * EXPECTS Q2 2018 PRODUCTION TO AVERAGE BETWEEN 13,000 BOE/D AND 14,000 BOE/D NET
* SEES 2018 D&C CAPEX $425 MILLION - $475 MILLION
* SEES 2018 TOTAL PRODUCTION 15,000 BOE/D - 20,000 BOE/D Source text for Eikon: Further company coverage:
| ashraq/financial-news-articles | https://www.reuters.com/article/brief-halcn-resources-q1-adjusted-loss-p/brief-halcn-resources-q1-adjusted-loss-per-share-0-06-idUSASC09Z9N |
DALLAS—Two Fed officials said Friday they remain committed to a gradual path of interest-rate increases, indicating they see no need to lift borrowing costs more aggressively because of firming inflation.
“There are a host of reasons why I think we need to be moving gradually, not the least of which is, that’s what we told people that’s what we’re going to do,” Atlanta Fed President Raphael Bostic said during a panel discussion at a conference here. “Absent some really, really big information, I think we’re in a position where... | ashraq/financial-news-articles | https://www.wsj.com/articles/fed-officials-say-raising-rates-gradually-remains-the-best-approach-1527278325 |
May 7, 2018 / 1:48 PM / in 14 minutes UPDATE 3-Argentina peso closes down slightly despite rate hike Reuters Staff
(Updates prices, adds TV for media subscribers)
By Caroline Stauffer and Eliana Raszewski
BUENOS AIRES, May 7 (Reuters) - Argentina’s peso closed slightly weaker on Monday, though analysts remained optimistic the government and central bank had curbed a run on the currency with a massive rate hike and lower fiscal deficit target last week.
The local currency opened stronger on Monday but closed down 0.41 percent at 21.97 per U.S. dollar. The Merval stock index also opened higher but later fell 1.4 percent.
Last week, the peso hit an all-time low of 23 per greenback, prompting the government to announce additional fiscal belt tightening and the central bank to yank its key interest rate up to 40 percent on Friday. The peso closed up 5 percent on Friday but was still down 15 percent for the year.
The peso’s slump made Argentines nervous. Many still have strong memories of a 2001 bank run that led to years of hyperinflation, political instability and poverty.
“The peso may strengthen or weaken ... the idea is that there be little volatility,” Treasury Minister Nicolas Dujovne said on local television on Sunday night, reminding Argentines that the peso is a free floating currency.
The 40 percent rate “can temporarily support an exchange rate of 21.6, but the heavy positioning, loss of credibility, and reputational cost make 22 a new fair rate in our view,” BTG Pactual economists said in a note.
The bank forecast an exchange rate of 24 per dollar for the year-end and raised its annual inflation forecast to 24 percent - far higher than the central bank’s target of 15 percent.
The issue of credibility is crucial to Argentina, which returned to international capital markets after settling a dispute with holdout creditors after center-right President Mauricio Macri took office in late 2015, ending 12 years of leftist governments.
Argentina even sold an oversubscribed century bond last year to investors who had praised his policies. Latin America’s No. 3 economy still lacks an investor credit rating and is classified as a frontier rather than an emerging market by Morgan Stanley.
Marco Lavagna, an opposition congressman from a moderate Peronist party, tweeted on Monday that the expected approval on Wednesday of a long-awaited capital markets reform could also help calm markets. Its passage is seen as an important step to attracting more investment and achieving emerging market status. ‘EXCESSIVE FINANCING COSTS’
The central bank, which is not technically independent from the government, had lowered rates earlier in the year, arguing inflation would start falling in May when a series of government mandated price hikes on energy and transportation were scheduled to end. But higher rates abroad and an exodus from emerging markets last week appeared to have caught it off guard.
Dujovne said on Sunday that inflation in May would be lower than 2 percent.
Before announcing three emergency rate hikes starting on April 27, the bank tried to prop up the peso by selling nearly $8 billion in dollar reserves on the spot market since March. Friday was the first day the bank did not intervene in two weeks and traders said the bank had not intervened on Monday either.
Alfredo Blanco, an economist at the University of Cordoba, said the central bank had few options besides raising rates and had successfully stopped a dramatic currency deterioration.
“I think it will last, although it is necessary to watch the future decisions of the government,” he said. A 40 percent rate “cannot be maintained for very long due to its negative effects on activity,” he added. (Additional reporting by Hugh Bronstein and Walter Bianchi Editing by David Gregorio and Phil Berlowitz) | ashraq/financial-news-articles | https://www.reuters.com/article/argentina-rate/update-1-argentina-curbs-pesos-fall-though-risks-linger-idUSL1N1SE0GV |
KUALA LUMPUR, May 28 (Reuters) - Malaysia’s Felda Global Ventures Bhd, the world’s largest crude palm oil producer, on Monday said its net profit fell 24 percent in the first quarter from the same time last year amid lower prices for the commodity.
FGV reported net a profit of 1.3 million ringgit ($326,715) for the quarter that ended in March, versus 1.7 million ringgit in the same period the year before.
Revenue dropped to 3.6 billion ringgit, versus 4.3 billion ringgit last year.
The company said it expected its 2018 results to be “satisfactory” despite “challenges” in the market.
FGV’s plantation business recorded lower profits in the quarter despite higher sales volumes, hit by weaker average crude palm oil prices compared with the corresponding period a year ago, the company said in a statement released on the local stock exchange in the midday break.
FGV’s shares were trading 3.1-percent higher before the break, outperforming the benchmark index which was down 0.6 percent.
Benchmark palm oil prices were last down 1.6 percent at 2,415 ringgit a tonne.
Crude palm oil prices averaged 2,487 ringgit in the first quarter of 2018, down from 2,900 ringgit last year. ($1 = 3.9790 ringgit) (Reporting by Emily Chow Editing by Joseph Radford)
| ashraq/financial-news-articles | https://www.reuters.com/article/fgv-results/malaysian-palm-oil-company-felda-global-says-q1-net-profit-drops-nearly-25-pct-idUSL3N1SV1MA |
May 11, 2018 / 10:51 AM / Updated 20 minutes ago Thomson Reuters beats estimates, sees higher 2018 revenue Jessica Toonkel 3 Min Read
(Reuters) - Thomson Reuters Corp ( TRI.N )( TRI.TO ) on Friday reported slightly higher-than-expected first-quarter sales and earnings, and forecast low single-digit growth in 2018 revenue in its remaining business. The Thomson Reuters logo is seen on the company building in Times Square, New York, U.S., January 30, 2018. REUTERS/Andrew Kelly
The news and information company announced earlier this year that it is selling a majority stake of its Financial & Risk unit to private equity firm Blackstone Group LP ( BX.N ).
Thomson Reuters reported quarterly revenue of $1.38 billion, up from $1.33 billion a year ago. Adjusted for special items, first-quarter earnings were 28 cents per share.
Analysts on average were expecting revenues of $1.36 billion and earnings of $0.27 per share, according to Thomson Reuters I/B/E/S.
Thomson Reuters, the parent of Reuters News, competes for financial customers with Bloomberg LP as well as News Corp’s ( NWSA.O ) Dow Jones unit.
The company said it expects adjusted EBITDA to range between $1.2 billion to $1.3 billion for the year in the remaining business.
The company’s legal business reported revenue of $872 million in the first quarter, up 2 percent excluding currency. The Tax & Accounting unit reported revenue of $437 million, up 5 percent when factoring out currency.
Thomson Reuters’s news division reported $72 million in revenue, down 7 percent from a year ago.
After the Blackstone deal, Thomson Reuters will focus on expanding its Legal, Tax & Accounting and Regulatory businesses, the company has said.
In the quarter, the Financial and Risk business grew revenues 3 percent in constant currency to $1.58 billion. The unit is now counted as discontinued operations.
Under the agreement, the new F&R company will make minimum annual payments of $325 million to Reuters over 30 years to secure access to its news service, equating to almost $10 billion. The payments will be adjusted for inflation.
Thomson Reuters announced a new $500 million share repurchase program. Reporting By Jessica Toonkel; Editing by Nick Zieminski | ashraq/financial-news-articles | https://uk.reuters.com/article/us-thomsonreuters-results/thomson-reuters-sees-low-single-digit-growth-in-2018-revenue-idUKKBN1IC14S |
NEW YORK--(BUSINESS WIRE)-- Inter Parfums, Inc. (NASDAQ GS: IPAR) today announced that it will issue financial results for the first quarter ended March 31, 2018 on Tuesday, May 8, 2018 after the close of the stock market.
Management will conduct a conference call to discuss financial results and business developments at 11:00 am ET, on Wednesday, May 9, 2018. Interested parties may participate in the call by dialing (201) 493-6749; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.interparfumsinc.com and click on the Investor Relations section. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website.
About Inter Parfums, Inc.:
Founded more than 30 years ago, Inter Parfums, Inc. is a premier fragrance company with a diverse portfolio of prestige brands that includes Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Oscar de la Renta, Paul Smith, Repetto, Rochas, S.T. Dupont and Van Cleef & Arpels. The fragrance products developed, produced and distributed by Inter Parfums are sold in more than 100 countries throughout the world.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180501005975/en/
Inter Parfums, Inc.
Russell Greenberg, 212-983-2640
Exec. VP & CFO
[email protected]
www.interparfumsinc.com
or
Investor Relations Counsel
The Equity Group Inc.
Fred Buonocore, 212-836-9607
[email protected]
or
Linda Latman, 212-836-9609
[email protected]
www.theequitygroup.com
Source: Inter Parfums, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/01/business-wire-inter-parfums-inc-schedules-2018-first-quarter-release-for-tuesday-may-8th-and-conference-call-for-wednesday-may-9th.html |
May 3 (Reuters) - Control4 Corp:
* CONTROL4 REPORTS SOLID FINANCIAL PERFORMANCE FOR Q1 2018 * Q1 NON-GAAP EARNINGS PER SHARE $0.21
* Q1 REVENUE $59.1 MILLION * SEES Q2 NON-GAAP NET INCOME TO BE BETWEEN $0.30 AND $0.34 PER DILUTED SHARE
* SEES FULL YEAR 2018 NON-GAAP NET INCOME TO BE BETWEEN $1.26 AND $1.33 PER DILUTED SHARE
* Q1 EARNINGS PER SHARE VIEW $0.14, REVENUE VIEW $57.2 MILLION — THOMSON REUTERS I/B/E/S
* Q2 EARNINGS PER SHARE VIEW $0.32, REVENUE VIEW $68.0 MILLION — THOMSON REUTERS I/B/E/S
* FY2018 EARNINGS PER SHARE VIEW $1.23, REVENUE VIEW $272.3 MILLION — THOMSON REUTERS I/B/E/S Source text for Eikon:
Our | ashraq/financial-news-articles | https://www.reuters.com/article/brief-control4-reports-q1-eps-004/brief-control4-reports-q1-eps-0-04-idUSASC09ZNU |
NORCROSS, Ga., April 30, 2018 (GLOBE NEWSWIRE) -- Immucor, Inc., a global leader in transfusion and transplantation diagnostics, today announced that its next generation, fully automated Echo ® instrument, Echo Lumena TM , has received FDA clearance in the United States to best match donor-patient blood. Echo Lumena, designed for the small to mid-volume laboratory segment, is Immucor’s fifth generation immunohematology instrument and brings brilliant performance and clearer test results with the smallest benchtop footprint and the fastest type and screen turnaround time on the global market.
Together with its fully automated sibling, NEO® (currently available in the US for larger volume testing settings), Echo Lumena and NEO offer a total standardized workflow solution for any laboratory. When combined with our innovative data management solution, ImmuLINK, laboratories are able to combine serology and molecular immunohematology results into one view, greatly improving a laboratory’s productivity. “Whether conducting five or 500 type and screens per day, every lab shares a critical goal to accurately pinpoint the best possible compatible blood match for anyone that needs it, when and where they need it. When our automation solution is combined with the sensitivity of Capture® technology to identify antibodies sooner than alternative technologies, it truly means laboratorians can be confident in the results they are producing for physicians and their patients,” said Keith Chaitoff, Immucor’s Chief Marketing Officer.
Christie Otis, Senior Transfusion Franchise Director, said “Immucor has been innovating transfusion medicine for more than 30 years. We are excited to build on the international success of the Echo Lumena launch by bringing our latest innovation to the vast number of US laboratories that will benefit from the accuracy, flexibility and performance available in the newest generation of blood bank automation.”
Echo Lumena builds on Immucor’s heritage of blood banking automation leadership and proven Capture® technology. The Echo family has been helping small to mid-sized laboratories automate high quality transfusion medicine since 2007 and has a footprint of more than 1,500 placements worldwide. New capabilities for the improved Echo Lumena system include:
[Accuracy] Complementing highly sensitive Capture technology, the Echo Lumena’s enhanced reader module provides clearer, real-time results and easy on-screen verification. Hardware and software upgrades also power assay algorithm modifications that improve performance; [Flexibility] More process and reagent controls represent best-in-class technology to maximize safety and security with market-leading specificity and sensitivity. Plus load STAT samples at all times; [Performance] Improved software functionalities including an updated Microsoft Operating System and security updates. Built-in Integration for Data Management and Support
Echo Lumena and all Immucor transfusion solutions integrate with the Company’s comprehensive data management software solution, ImmuLINK ®, to aggregate all serology and molecular test results, generating a single report with a complete donor or patient testing history. Echo Lumena also includes a bi-directional interface with blud_direct SM , Immucor’s 24/7 remote diagnostics and instrument support solution.
Echo Lumena is part of Immucor’s commitment to immunohematology automation. Immucor’s innovative technologies provide high-quality, high-performance and scalable solutions to meet the operational needs of blood banks, donor centers and labs, regardless of size or volume. Immucor’s total solution extends beyond instrumentation to include serology, molecular and platelet specialty products. Echo Lumena along with the next generation of our high volume NEO instrument, the NEO Iris™, are both CE marked for use in Europe. Clinical trials for NEO Iris are in progress in the United States.
Request a Demonstration
To schedule a demonstration of Echo Lumena, NEO or any Immucor solution, Immucor clients may contact their Blood Bank Business Manager or call us at 855.IMMUCOR (855.466.8267). For more information about Immucor products or to learn the regulatory status of our products in your country, please contact your local Immucor representative or visit www.immucor.com .
About Immucor
Founded in 1982, Immucor is a global leader in transfusion and transplantation diagnostics that facilitate patient-donor compatibility. Our mission is to ensure that patients in need of blood, organs or stem cells get the right match that is safe, accessible and affordable. With the right match, we can transform a life together. For more information on Immucor, visit www.immucor.com .
Contact:
Michele Howard - 770.441.2051
Source:Immucor, Inc. | ashraq/financial-news-articles | http://www.cnbc.com/2018/04/30/globe-newswire-immucor-announces-fda-clearance-for-echo-lumenatm-next-generation-fully-automated-instrument-powers-smaller-to-mid-volume.html |
WASHINGTON—The House will soon vote on a Senate-approved bill to ease rules for small and midsize banks, House Speaker Paul Ryan (R., Wis.) said Tuesday, a move that would allow the bill to clear Congress and become law.
Passage of the measure would mark the most significant bipartisan overhaul of the financial rule book since Republicans took control of Washington last year, as well as the first major easing of the 2010 Dodd-Frank financial law. The House is also expected to advance a separate package of deregulatory measures... | ashraq/financial-news-articles | https://www.wsj.com/articles/house-to-vote-on-bank-deregulation-bill-in-may-1525794352 |
Revenues increase 7%, driven by consumer money transfer
Digital remains strong; westernunion.com money transfer revenues increase 23%
ENGLEWOOD, Colo.--(BUSINESS WIRE)-- The Western Union Company (NYSE: WU), a leader in cross border, cross currency money movement, today reported first quarter financial results and an updated outlook for 2018.
In the first quarter, the Company generated revenue of $1.4 billion, which increased 7% compared to the prior year, or 5% on a constant currency basis. The revenue increase was driven by strong growth in the consumer money transfer business.
“We were able to sustain the growth momentum generated at the end of 2017,” said president and chief executive officer Hikmet Ersek. “Our digital money transfer business posted another impressive quarter, with westernunion.com delivering a 23% revenue increase.”
Ersek added, “The positive traction in our core business helps enable us to pursue new customer segments in cross-border money movement.”
GAAP earnings per share in the quarter was $0.46 compared to $0.33 in the prior year period. On an adjusted basis, earnings per share was $0.45 compared to $0.35 in the prior year period. The increase in earnings per share was primarily due to revenue growth, a lower effective tax rate and fewer shares outstanding compared to the first quarter of 2017.
Executive Vice President and Chief Financial Officer Raj Agrawal stated, “We delivered strong revenue growth, profitability, and cash flow in the first quarter and are solidly on track to meet our full year targets.”
Q1 Business Unit Highlights
Consumer-to-Consumer (C2C) revenues, which represented 79% of total Company revenue in the quarter, increased 7%, or 5% constant currency, while transactions grew 4%. Geographically, revenue growth was led by sends originated in Latin America, North America, and Europe.
Westernunion.com C2C revenues increased 23%, or 20% constant currency, on transaction growth of 24% and represented 11% of total C2C revenue in the quarter. Western Union Business Solutions revenues increased 3% or decreased 2% on a constant currency basis. Business Solutions represented 7% of total Company revenues in the quarter. Other revenues, which primarily consist of bill payments businesses in the U.S. and Argentina, increased 4%, or 10% on a constant currency basis. Growth in the quarter was driven by the Pago Facil Argentina walk-in and the Speedpay U.S. electronic bill payments businesses. Other revenues represented 14% of total Company revenues in the quarter.
Additional Q1 Financial Highlights
GAAP operating margin in the quarter was 19.1%, which compares to 18.4% in the prior year period, or 19.5% in the prior year on an adjusted basis. The adjusted margin decrease was primarily due to higher marketing spending and the negative impact of foreign exchange, partially offset by operating leverage from revenue growth. The effective tax rate in the quarter was 8.9% compared to 24.1% in the prior year period. On an adjusted basis, the tax rate was 11.4% compared to 24.8% in the prior year period. The prior year tax rate reflected a negative impact from changes in the internal ownership structure of certain of the Company’s international subsidiaries, while the current year rate benefited from certain discrete items. Cash flow from operating activities for the quarter totaled $133 million, which included the impact of a $60 million payment for the previously announced NYDFS settlement and approximately $20 million of outflows for prior year WU Way expenses. The Company returned $88 million in dividends to shareholders in the first quarter.
Adjustment Items
Adjusted metrics for the 2018 first quarter exclude the impact of a $6 million tax benefit related to changes in estimates for the provisional accounting for United States tax reform legislation enacted in December 2017 (the “Tax Act”).
Adjusted metrics for the 2017 first quarter exclude $14 million of WU Way related expenses and the associated tax benefits.
2018 Outlook
The Company affirmed its revenue, operating margin, and cash flow outlooks for 2018, which were previously reported on February 13. The GAAP earnings per share outlook was increased to reflect a more favorable expected tax rate and the impact of the adjustment related to the 2017 Tax Act. An adjusted EPS outlook that excludes the Tax Act benefit has also now been provided.
Revenue
Low to mid-single digit increase in GAAP and constant currency revenue
Operating Profit Margin
Operating margin of approximately 20%
Tax Rate
GAAP effective tax rate of approximately 14% and adjusted tax rate of approximately 15% (previously 15% to 16%)
Earnings per Share
GAAP EPS in a range of $1.81 to $1.91 and adjusted EPS in a range of $1.80 to $1.90 (previously $1.78 to $1.90)
Cash Flow
Cash flow from operating activities of approximately $800 million, which includes approximately $200 million of outflows for the combination of anticipated final tax payments related to the agreement with the U.S. Internal Revenue Service announced in 2011, the NYDFS settlement payment, and WU Way payments related to 2017 expenses
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.
Beginning April 1, 2017, the Company implemented a new segment structure due to leadership and organizational structure changes. The new structure shifted all businesses previously in the historical Consumer-to-Business segment into Other.
Expenses related to the WU Way business transformation are not included in operating segment results, as they are excluded from the measurement of segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation. Expenses associated with the WU Way business transformation initiative were effectively complete as of December 31, 2017.
All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.
These non-GAAP financial measures include consolidated revenue change constant currency adjusted; Consumer-to-Consumer segment revenue change constant currency adjusted; Consumer-to-Consumer segment westernunion.com revenue change constant currency adjusted; Business Solutions segment revenue change constant currency adjusted; Other revenue change constant currency adjusted; consolidated operating income, excluding the impact from WU Way business transformation expenses; consolidated operating margin, excluding WU Way business transformation expenses; effective tax rate excluding WU Way business transformation expenses and Tax Act; earnings per share, excluding WU Way business transformation expenses and Tax Act; effective tax rate outlook, excluding Tax Act; earnings per share outlook, excluding Tax Act; and additional measures found in the supplemental tables included with this press release. Although the expenses related to the WU Way business transformation are specific to that initiative, the types of expenses related to the WU Way business transformation are similar to expenses that the Company has previously incurred and can reasonably be expected to incur in the future.
Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at http://ir.westernunion.com .
Investor and Analyst Conference Call and Slide Presentation
The Company will host a conference call and webcast, including slides, at 4:30 p.m. Eastern Time today. To listen to the conference call via telephone, dial 1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside the U.S.) ten minutes prior to the start of the call. The pass code is 4160099.
The conference call and accompanying slides will be available via webcast at http://ir.westernunion.com . Registration for the event is required, so please register at least five minutes prior to the scheduled start time.
A webcast replay will be available at http://ir.westernunion.com .
Please note: All statements made by Western Union officers on this call are the property of Western Union and subject to copyright protection. Other than the replay, Western Union has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our . Words such as "expects," "intends," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook" and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such . Readers of this press release of The Western Union Company (the "Company," "Western Union," "we," "our" or "us") should not rely solely on the and should consider all uncertainties and risks discussed in the "Risk Factors" section and throughout the for the year ended December 31, 2017. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.
Possible events or factors that could cause results or performance to differ materially from those expressed in our include the following: (i) events related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic and trade downturns, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including electronic, mobile and Internet-based services, card associations, and card-based payment providers, and with digital currencies and related protocols, and other innovations in technology and business models; political conditions and related actions in the United States and abroad which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents or clients; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; mergers, acquisitions and integration of acquired businesses and technologies into our Company, and the failure to realize anticipated financial benefits from these acquisitions, and events requiring us to write down our goodwill; failure to manage credit and fraud risks presented by our agents, clients and consumers; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place, including due to increased costs or loss of business as a result of increased compliance requirements or difficulty for us, our agents or their subagents in establishing or maintaining relationships with banks needed to conduct our services; decisions to change our business mix; changes in tax laws, or their interpretation, including with respect to United States tax reform legislation enacted in December 2017 (the "Tax Act") and potential related state income tax impacts, and unfavorable resolution of tax contingencies; adverse rating actions by credit rating agencies; our ability to realize the anticipated benefits from business transformation, productivity and cost-savings, and other related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; our ability to protect our brands and our other intellectual property rights and to defend ourselves against potential intellectual property infringement claims; our ability to attract and retain qualified key employees and to manage our workforce successfully; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations and industry practices and standards, including changes in interpretations in the United States, the European Union and globally, affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, and immigration; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators, including those associated with the settlement agreements with the United States Department of Justice, certain United States Attorney's Offices, the United States Federal Trade Commission, the Financial Crimes Enforcement Network of the United States Department of Treasury, and various state attorneys general (the "Joint Settlement Agreements"), and those associated with the January 4, 2018 consent order which resolved a matter with the New York State Department of Financial Services (the "NYDFS Consent Order"); liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory actions, including costs, expenses, settlements and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy and data use and security, including with respect to the General Data Protection Regulation ("GDPR") approved by the European Union ("EU"); the ongoing impact on our business from the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations or industry standards affecting our business; and (iii) other events, such as: adverse tax consequences from our spin-off from First Data Corporation; catastrophic events; and management's ability to identify and manage these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement. Our omnichannel platform connects the digital and physical worlds and makes it possible for consumers and businesses to send and receive money and make payments with speed, ease, and reliability. As of March 31, 2018, our network included over 550,000 retail agent locations offering Western Union, Vigo or Orlandi Valuta branded services in more than 200 countries and territories, with the capability to send money to billions of accounts. Additionally, westernunion.com , our fastest growing channel in 2017, is available in more than 40 countries to move money around the world. In 2017, we moved over $300 billion in principal in nearly 130 currencies and processed 32 transactions every second across all our services. With our global reach, Western Union moves money for better, connecting family, friends and businesses to enable financial inclusion and support economic growth. For more information, visit www.westernunion.com .
WU-G
THE WESTERN UNION COMPANY KEY STATISTICS (Unaudited) Notes* 1Q17 2Q17 3Q17 4Q17 FY2017 1Q18 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change 0 % 0 % 2 % 5 % 2 % 7 % Consolidated revenues (constant currency) - YoY % change a 3 % 2 % 3 % 4 % 3 % 5 % Consolidated operating income/(loss) (GAAP) - YoY % change (7
)
%
(18
)
%
(2
)
%
19 % (2
)
%
10 % Consolidated operating income (constant currency adjusted, excluding Goodwill impairment, NYDFS Consent Order, Joint Settlement Agreements and WU Way business transformation expenses) - YoY % change b 4 % 10 % 0 % 0 % 3 % 5 % Consolidated operating margin (GAAP) jj 18.4 % 15.6 % 19.4 % (17.5
)
%
8.6 % 19.1 % Consolidated operating margin (excluding Goodwill impairment, NYDFS Consent Order, Joint Settlement Agreements and WU Way business transformation expenses) c 19.5 % 21.7 % 20.7 % 18.0 % 20.0 % 19.1 % Consumer-to-Consumer (C2C) Segment Revenues (GAAP) - YoY % change 0 % (1
)
%
1 % 5 % 1 % 7 % Revenues (constant currency) - YoY % change g 2 % 1 % 1 % 4 % 2 % 5 % Operating margin (jj) 22.5 % 24.9 % 23.5 % 21.5 % 23.1 % 22.2 % Transactions (in millions) 65.3 69.9 69.2 71.4 275.8 67.8 Transactions - YoY % change 2 % 3 % 2 % 3 % 3 % 4 % Total principal ($ - billions) $ 19.1 $ 20.4 $ 21.0 $ 21.3 $ 81.8 $ 20.8 Principal per transaction ($ - dollars) $ 292 $ 293 $ 302 $ 300 $ 297 $ 307 Principal per transaction - YoY % change (2
)
%
(3
)
%
1 % 3 % 0 % 5 % Principal per transaction (constant currency) - YoY % change h (1
)
%
(2
)
%
0 % 0 % (1
)
%
2 % Cross-border principal ($ - billions) $ 17.3 $ 18.7 $ 19.0 $ 19.5 $ 74.5 $ 18.9 Cross-border principal - YoY % change 1 % 1 % 4 % 6 % 3 % 9 % Cross-border principal (constant currency) - YoY % change i 2 % 2 % 2 % 4 % 2 % 5 % NA region revenues (GAAP) - YoY % change aa, bb 3 % 3 % 1 % 3 % 2 % 4 % NA region revenues (constant currency) - YoY % change j, aa, bb 4 % 3 % 1 % 3 % 3 % 4 % NA region transactions - YoY % change aa, bb 5 % 4 % 2 % 1 % 3 % 1 % EU & CIS region revenues (GAAP) - YoY % change aa, cc (1
)
%
(2
)
%
2 % 6 % 1 % 14 % EU & CIS region revenues (constant currency) - YoY % change k, aa, cc 4 % 2 % 1 % 2 % 2 % 5 % EU & CIS region transactions - YoY % change aa, cc 8 % 7 % 7 % 7 % 7 % 8 % MEASA region revenues (GAAP) - YoY % change aa, dd (13
)
%
(12
)
%
(8
)
%
1 % (8
)
%
0 % MEASA region revenues (constant currency) - YoY % change l, aa, dd (10
)
%
(11
)
%
(8
)
%
0 % (7
)
%
(1
)
%
MEASA region transactions - YoY % change aa, dd (15
)
%
(10
)
%
(11
)
%
(2
)
%
(10
)
%
(2
)
%
LACA region revenues (GAAP) - YoY % change aa, ee 26 % 21 % 19 % 21 % 22 % 20 %
LACA region revenues (constant currency) - YoY % change m, aa, ee 25 % 22 % 22 % 23 % 23 % 25 % LACA region transactions - YoY % change aa, ee 17 % 16 % 17 % 17 % 17 % 17 % APAC region revenues (GAAP) - YoY % change aa, ff (2
)
%
(4
)
%
(1
)
%
0 % (2
)
%
2 % APAC region revenues (constant currency) - YoY % change n, aa, ff (1
)
%
(2
)
%
1 % 0 % 0 % 0 % APAC region transactions - YoY % change aa, ff (2
)
%
(1
)
%
0 % 3 % 0 % 1 % International revenues - YoY % change gg (2
)
%
(3
)
%
1 % 6 % 0 % 9 % International transactions - YoY % change gg 1 % 2 % 3 % 6 % 3 % 6 % International revenues - % of C2C segment revenues gg 66 % 66 % 67 % 67 % 66 % 67 % United States originated revenues - YoY % change hh 4 % 3 % 1 % 3 % 3 % 4 % United States originated transactions - YoY % change hh 4 % 4 % 1 % 0 % 2 % 1 % United States originated revenues - % of C2C segment revenues hh 34 % 34 % 33 % 33 % 34 % 33 % westernunion.com revenues (GAAP) - YoY % change ii 26 % 21 % 23 % 22 % 23 % 23 % westernunion.com revenues (constant currency) - YoY % change o, ii 28 % 23 % 23 % 22 % 24 % 20 % westernunion.com transactions - YoY % change ii 27 % 25 % 24 % 22 % 24 % 24 % % of Consumer-to-Consumer Revenue Regional Revenues: NA region revenues aa, bb 37 % 37 % 36 % 37 % 37 % 36 % EU & CIS region revenues aa, cc 30 % 31 % 31 % 31 % 31 % 32 % MEASA region revenues aa, dd 17 % 16 % 16 % 16 % 16 % 16 % LACA region revenues aa, ee 8 % 8 % 9 % 9 % 8 % 9 % APAC region revenues aa, ff 8 % 8 % 8 % 7 % 8 % 7 % westernunion.com revenues ii 9 % 9 % 10 % 10 % 10 % 11 % Business Solutions (B2B) Segment Revenues (GAAP) - YoY % change (6
)
%
(4
)
%
2 % (4
)
%
(3
)
%
3 % Revenues (constant currency) - YoY % change p (3
)
%
(1
)
%
1 % (8
)
%
(3
)
%
(2
)
%
Operating margin 2.6 % 5.5 % 9.1 % (3.2
)
%
3.6 % 2.9 % Other (primarily bill payments businesses in United States and Argentina) Revenues (GAAP) - YoY % change 7 % 9 % 9 % 11 % 9 % 4 % Revenues (constant currency) - YoY % change r 9 % 12 % 13 % 14 % 12 % 10 % Operating margin 12.4 % 12.1 % 10.5 % 7.9 % 10.7 % 10.1 % % of Total Company Revenue Consumer-to-Consumer segment revenues 78 % 79 % 79 % 80 % 79 % 79 % Business Solutions segment revenues 7 % 7 % 7 % 6 % 7 % 7 % Other revenues 15 % 14 % 14 % 14 % 14 % 14 % * See the "Notes to Key Statistics" section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures. THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in millions, except per share amounts) Three Months Ended March 31, 2018 2017 % Change Revenues $ 1,389.4 $ 1,302.4 7 % Expenses: Cost of services (a) 825.4 799.9 3 % Selling, general and administrative 299.1 262.4 14 % Total expenses (b) 1,124.5 1,062.3 6 % Operating income 264.9 240.1 10 % Other income/(expense): Interest income 0.7 1.1 (42)
%
Interest expense (35.5 ) (31.3 ) 13 % Other income, net (a) 4.4 3.2 40 % Total other expense, net (30.4 ) (27.0 ) 13 % Income before income taxes 234.5 213.1 10 % Provision for income taxes 20.9 51.4 (59)
%
Net income $ 213.6 $ 161.7 32 % Earnings per share: Basic $ 0.46 $ 0.34 35 % Diluted $ 0.46 $ 0.33 39 % Weighted-average shares outstanding: Basic 460.3 479.8 Diluted 463.6 483.4 Cash dividends declared per common share $ 0.19 $ 0.175 9 %
(a) On January 1, 2018, the Company adopted an accounting pronouncement that requires the non-service costs of the defined benefit pension plan to be presented outside a subtotal of income from operations, with adoption retrospective for periods previously presented. The adoption of this standard resulted in reductions to "Cost of services" and "Other income, net" of $0.6 million for the three months ended March 31, 2017 from the amounts previously reported. (b) For the three months ended March 31, 2017, total WU Way business transformation expenses were $14.3 million, including $4.2 million in cost of services and $10.1 million in selling, general and administrative, respectively. THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except per share amounts) March 31, December 31, 2018 2017 Assets Cash and cash equivalents $ 934.3 $ 838.2 Settlement assets 4,026.5 4,188.9 Property and equipment, net of accumulated depreciation of
$653.6 and $635.7, respectively 215.7 214.2 Goodwill 2,726.7 2,727.9 Other intangible assets, net of accumulated amortization of $1,071.8 and $1,042.7, respectively 569.2 586.3 Other assets 715.6 675.9 Total assets $ 9,188.0 $ 9,231.4 Liabilities and Stockholders' Deficit Liabilities: Accounts payable and accrued liabilities $ 594.1 $ 718.5 Settlement obligations 4,026.5 4,188.9 Income taxes payable 1,262.4 1,252.0 Deferred tax liability, net 173.8 173.0 Borrowings 3,143.4 3,033.6 Other liabilities 363.6 356.8 Total liabilities 9,563.8 9,722.8 Stockholders' deficit: Preferred stock, $1.00 par value; 10 shares authorized;
no shares issued — — Common stock, $0.01 par value; 2,000 shares authorized; 460.6 shares and 459.0 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively 4.6 4.6 Capital surplus 715.4 697.8 Accumulated deficit (819.8 ) (965.9 ) Accumulated other comprehensive loss (276.0 ) (227.9 ) Total stockholders' deficit (375.8 ) (491.4 ) Total liabilities and stockholders' deficit $ 9,188.0 $ 9,231.4 THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) Three Months Ended
March 31,
2018 2017 Cash Flows From Operating Activities Net income $ 213.6 $ 161.7 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 19.3 18.6 Amortization 47.4 47.8 Other non-cash items, net 8.9 76.0 Increase/(decrease) in cash resulting from changes in: Other assets (47.3 ) (20.4 ) Accounts payable and accrued liabilities (123.2 ) (192.7 ) Income taxes payable 11.5 (5.2 ) Other liabilities 2.5 0.5 Net cash provided by operating activities 132.7 86.3 Cash Flows From Investing Activities Capitalization of contract costs (10.3 ) (6.8 ) Capitalization of purchased and developed software (6.7 ) (11.7 ) Purchases of property and equipment (20.2 ) (7.9 ) Purchases of non-settlement related investments and other (4.3 ) (21.3 ) Proceeds from maturity of non-settlement related investments 10.0 — Purchases of held-to-maturity non-settlement related investments (1.4 ) (15.2 ) Proceeds from held-to-maturity non-settlement related investments — 12.3 Net cash used in investing activities (32.9 ) (50.6 ) Cash Flows From Financing Activities Cash dividends paid (87.5 ) (83.3 ) Common stock repurchased (11.6 ) (219.3 ) Net proceeds from commercial paper 110.0 310.0 Net proceeds from issuance of borrowings — 396.9 Proceeds from exercise of options 3.8 5.8 Other financing activities (5.2 ) — Net cash provided by financing activities 9.5 410.1 Net change in cash, cash equivalents and restricted cash 109.3 445.8 Cash, cash equivalents and restricted cash at beginning of period 844.4 877.5 Cash, cash equivalents and restricted cash at end of period $ 953.7 $ 1,323.3 THE WESTERN UNION COMPANY SUMMARY SEGMENT DATA (Unaudited) (in millions) Three Months Ended
March 31,
2018 2017 % Change Revenues: Consumer-to-Consumer $ 1,091.0 $ 1,015.0 7 % Business Solutions 96.7 93.6 3 % Other (a) 201.7 193.8 4 % Total consolidated revenues $ 1,389.4 $ 1,302.4 7 % Operating income (b): Consumer-to-Consumer $ 241.7 $ 228.0 6 % Business Solutions 2.8 2.4 19 % Other (a) 20.4 24.0 (15)
%
Total segment operating income (b) 264.9 254.4 4 % Business transformation expenses (c) — (14.3 ) (d)
Total consolidated operating income (b) $ 264.9 $ 240.1 10 % Operating income margin (b): Consumer-to-Consumer 22.2 % 22.5 % (0.3)
%
Business Solutions 2.9 % 2.6 % 0.3 % Other (a) 10.1 % 12.4 % (2.3)
%
Total consolidated operating income margin (b) 19.1 % 18.4 % 0.7 % | ashraq/financial-news-articles | http://www.cnbc.com/2018/05/01/business-wire-western-union-reports-first-quarter-results.html |
European shares set to extend winning streak on oil surge 1:31pm BST - 01:33
European shares dipped in morning trade but were on course for eight straight weeks of gains, supported by a rally in energy shares and a weaker euro, which helped investors shrug off worries over Italy. Ciara Lee reports ▲ Hide Transcript ▶ View Transcript
European shares dipped in morning trade but were on course for eight straight weeks of gains, supported by a rally in energy shares and a weaker euro, which helped investors shrug off worries over Italy. Ciara Lee reports Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code https://reut.rs/2IrEpzC | ashraq/financial-news-articles | https://uk.reuters.com/video/2018/05/18/european-shares-set-to-extend-winning-st?videoId=428080190 |
NEW YORK (LPC) - The US$38bn financing backing the merger of T-Mobile US and Sprint Corp is the latest high-profile M&A financing to hit the market, adding to a pipeline of deals that lenders expect will continue to grow.
A sign for a T-Mobile store is seen in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton Lenders have extended about US$679bn in loans backing global M&A deals so far this year, toppling the prior record of almost US$542bn set for the same period in 2007 before the financial crisis, according to Thomson Reuters LPC data.
These numbers promise to keep swelling, with Vodafone nearing a transformational deal to buy assets from cable giant Liberty Global.
“A generally business-friendly environment in Washington, DC, a positive economic outlook and favorable tax treatment, both in terms of corporate rates and being able to access foreign reserves in a tax efficient way, appears to be giving boards the confidence they need to pull the trigger on strategic transactions, some of which have been in the works for a while,” said Jason Kyrwood, a partner at Davis Polk.
Industry-specific factors, including the so-called Amazon effect and the need for international expansion to drive growth, are also at play, he said.
“Certainly there’s no shortage of financing available,” Kyrwood said. “There are more marquee deals than we’ve seen in a while, and banks are eager to participate.”
Corporations clamoring for growth and diversity are striking while the iron is hot, with borrowing costs still low and investor demand for the debt backing many of these transactions still high.
The US$1.7trn of global mergers and acquisitions announced this year, a record for this period, tops just over US$1trn during the same time a year ago, according to Thomson Reuters Deals Intelligence.
SIX-STRONG
Six banks initially committed US$38bn of loans to back the tie-up between the third- and fourth-largest US wireless carriers.
The financing comprises a US$4bn five-year revolving credit, a US$7bn seven-year senior secured term loan B, a US$19bn 364-day senior secured bridge loan and US$8bn in senior unsecured bridge loans that will be replaced by high-yield bonds.
Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley and RBC are providing the debt.
“The challenge with T-Mobile and Sprint is a very long regulatory period – 12 to 24 months of intense scrutiny,” said a senior banker.
Banks are being judicious, he said, moderating exposure to the huge deals to leave room for oncoming deals and to manage potentially long regulatory reviews that could tie up balance sheets.
“It’s not so much that banks are at capacity, but wanting to keep capacity open, because everybody sees a very strong and building pipeline for M&A and they hate to be stopped out of the next deals because they just locked up their balance sheet,” the senior banker said.
MORE SHOPPING Online retailer Amazon’s unconventional mash-up with grocery chain Whole Foods Market last summer has raised the stakes for atypical mergers, especially in industries where behemoth Amazon is perceived to be a potential competitor.
“Companies are trying to come up with the next killer combination or economic coupling that will generate more profit than traditional business models,” another senior banker said.
As the push for diversification and profit heats up, technology and healthcare are among the leaders in consolidation.
CVS Health Corp on Wednesday said it still expects its US$69bn deal to buy health insurer Aetna Inc, announced last December, to close during this year’s second half. That merger was followed in March by Cigna Corp’s plan to buy pharmacy benefits manager Express Scripts for US$52bn.
A rising tide of cross-border deals is also contributing to the global M&A spike.
There is the £23bn loan for US cable operator Comcast’s bid for London-based Sky and a potential new jumbo loan for Japanese drug company Takeda Pharmaceutical’s US$64bn offer for London-listed rare disease specialist Shire.
Lower US corporate tax rates and ready US cash stockpiles to put to work overseas are among factors driving the push across international lines. Also, Brexit uncertainty is encouraging some Continental European and Asian firms to look at the US and UK companies to look abroad.
“Clearly we are in a boom,” the first senior banker said. “Now four months into the year, the pace may normalize, but while it may be tough to maintain this breakneck pace, I don’t think that means it will be done or fall off sharply.”
Reporting by Lynn Adler; Editing by Michelle Sierra and Chris Mangham
| ashraq/financial-news-articles | https://www.reuters.com/article/us-t-mobile-m-a/t-mobile-adds-to-record-ma-spree-idUSKBN1I51JV |
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