National Health Investors (NYSE: NHI) announced today a 20 percent increase in its normalized funds from operations.
For the fourth quarter, NHI reported a Normalized FFO of $20 million, or 72 cents per basic share, compared to $16.7 million, or 60 cents per share, a year ago. The company reported Funds From Operations of $19.7 million, compared to $18.6 million for the year-ago quarter; and net income of $17 million, compared with $16.3 million in the year-ago quarter. Analysts, on average, had estimated earnings of 71 cents per share on an FFO of $20.1 million, according to Thomson Reuters.
Murfreesboro-based National Health Investors is a long-term health care real estate investment trust based in Murfreesboro. Its portfolio includes skilled nursing facilities, assisted living facilities, independent living facilities, medical office buildings and an acute care hospital.
Fourth quarter 2010 Normalized FFO: $20 million
Fourth quarter 2009 Normalized FFO: $16.7 million
Fourth quarter 2010 net income: $17 million
Fourth quarter 2009 net income: $16.3 million
Market reaction: NHI released it’s earnings report before the market opened Thursday. Shares closed Wednesday at $46.25. The 52-week range for the stock is $33.50 to $49.
National Health Investors, Inc., a real estate investment trust (REIT), invests in health care properties, primarily in the long-term care industry in the United States. As of December 31, 2008, it had investments in real estate assets and mortgage notes receivable investments in 123 health care facilities consisting of 83 long-term care facilities, 1 acute care hospital, 4 medical office buildings, 14 assisted living facilities, 4 retirement centers, and 17 residential projects for the developmentally disabled in 17 states. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. National Health Investors, Inc. was founded in 1991 and is based in Murfreesboro, Tennessee.
Disclosure I am long NHI shares.
Showing posts with label Earnings Surprise. Show all posts
Showing posts with label Earnings Surprise. Show all posts
Sunday, February 20, 2011
Saturday, February 19, 2011
Caterpillar January Sales Jump 49%, CAT Profit Soars on Farm Machinery Purchases
The company also raised its earnings prediction for the year.
Deere’s sales increase was driven by demand for heavy farm equipment, with revenue for four-wheel-drive tractors and large combines rising more than 50 percent.
Deere is expanding overseas operations, but its sales are rooted in North America, with United States and Canadian sales rising 35 percent in the quarter. Outside those core regions, sales rose 22 percent in the quarter.
The company said it earned $513.7 million, or $1.20 a share, in the quarter, up from $243.2 million, or 57 cents a share, a year earlier. Revenue in the period, which ended Jan. 31 and was the first quarter of Deere’s fiscal year, rose 27 percent, to $6.12 billion, from $4.83 billion.
Stock in Deere, which is based in Moline, Ill., rose $2.24, to $95.86 a share.
Deere said construction demand was up as well. Construction and forestry sales climbed 81 percent, and the unit turned an operating profit in the quarter after losing money a year earlier. Deere predicts net income this fiscal year of about $2.5 billion, up from a November prediction of $2.1 billion. Analysts currently predict $2.37 billion.
Disclosure I am Long DE shares.
Friday, February 18, 2011
Ship Finance (SFL) Posts Q4 EPS of 49c; Raises Qtr. Dividend by 5.5% to 38c/Share
Raises its quarterly dividend by 5.5% from 36c to 38c/share.
Disclosure I am long SFL shares.
CF Industries Q4 Profit Beats View on Rising Fertilizer Demand (CF)
Fertilizer maker CF Industries Holdings, Inc. (CF) late Thursday posted better-than-expected fourth quarter earnings results, aided by strong demand for its products and the addition of sales from its acquisition of rival Terra Nitrogen(TNH).
The Deerfield, IL-based company reported fourth quarter net income of $200.3 million, or $2.78 per share, compared with $51.4 million, or $1.04 per share, in the year-ago period. Excluding one-time items, adjusted profit was $2.65 per share.
Revenue more than doubled from last year to $1.24 billion.
On average, Wall Street analysts expected a smaller profit of $2.56 per share, on lower revenue of $1.19 billion.
CF Industries shares fell 81 cents, or -0.6%, in premarket trading Friday.
The Bottom Line
CF Industries (CF) has been an “aggressive” recommendation, but is not a name I think yield-focused investors should be considering. The company has a .27% dividend yield, based on last night’s closing stock price of $147.81.
Disclosure I am Long TNH shares.
The Deerfield, IL-based company reported fourth quarter net income of $200.3 million, or $2.78 per share, compared with $51.4 million, or $1.04 per share, in the year-ago period. Excluding one-time items, adjusted profit was $2.65 per share.
Revenue more than doubled from last year to $1.24 billion.
On average, Wall Street analysts expected a smaller profit of $2.56 per share, on lower revenue of $1.19 billion.
CF Industries shares fell 81 cents, or -0.6%, in premarket trading Friday.
The Bottom Line
CF Industries (CF) has been an “aggressive” recommendation, but is not a name I think yield-focused investors should be considering. The company has a .27% dividend yield, based on last night’s closing stock price of $147.81.
Disclosure I am Long TNH shares.
Northrop Grumman Beats on Improved Performance
Los Angeles-based leading shipbuilder and defense contractor, Northrop Grumman Corporation (NOC), reported impressive fourth quarter 2010 results of $1.27 per share compared with $1.19 in the fourth quarter of 2009. Northrop results also exceeded the Zacks Consensus Estimate of $1.01 for the quarter. The upside in earnings was attributable to better performance across all its segments, barring Electronic Systems.
Fiscal 2010 earnings came in at $6.77 per share, easily beating the Zacks Consensus Estimate of $5.98 and fiscal 2009 earnings of $4.87 per share.
Operational Performance
Sales for the reported quarter decrease 3.6% to $8.6 billion, from $8.9 billion in the year-ago quarter, and was 1.9% lower than the Zacks Consensus Estimate of $8.8 billion. In the reported quarter, earnings from continuing operations increased marginally to $376 million from $375 million in the fourth quarter of 2009. Net earnings in the reported quarter decreased to $376 million compared with $413 million in the prior-year period.
Fiscal 2010 revenue was $34.8 billion versus the Zacks Consensus Estimate of $34.1 billion. Full year revenue also outdid the $33.8 billion generated a year ago.
Segmental Performance
Aerospace Systems
Aerospace Systems quarterly sales declined 4% year over year to $2.7 billion, principally due to lower volume for civil space and missile defense programs; along with fewer working days. Aerospace Systems’ operating income increased 11% to $322 million. Operating margin increased to 12.1% from 10.5% in the year-ago quarter. Higher operating income and margin rate were driven by improved program performances and lower costs.
Electronic Systems
Electronic Systems sales declined 10% to $1.9 billion, due to fewer working days and lower volume for several programs nearing completion and contracts transitioning to their next phase. This was partially offset by higher volume for targeting systems programs. Electronic Systems’ operating income decreased 0.7% to $272 million. However, operating margin increased to 14.5% from 13.2% year over year. Higher margin rate reflects improved program performance for intelligence, surveillance and reconnaissance programs, including postal automation and improved performance for land and self-protection systems programs.
Information Systems
Information Systems sales of $2.1 billion were 4.1% lower than the year-ago period, principally due to fewer working days and lower volume for intelligence and defense programs. This was partially offset by higher volume for civil systems programs. Information Systems operating income increased 66.4% to $178 million. Operating margin increased to 8.5% from 4.9% year over year. Higher operating income and margin primarily reflect improved program performance for civil systems programs.
Shipbuilding
Shipbuilding sales increased 4% to $1.7 billion, driven by higher volume for submarine and expeditionary warfare programs. Operating income also rose 52.3% to $134 million. Similarly, operating margin rose to 7.7% from 5.3% in the year-ago quarter. The rise in operating income and rate reflect higher volume and improved program performance for expeditionary warfare, aircraft carrier and submarine programs.
Technical Services
Technical Services’ sales increased 6% to $795 million due to higher volume for integrated logistics and modernization programs. Technical Services operating income increased 22.5% to $49 million. Operating margin increased to 6.2% from 5.3% year over year. The improvements in operating income and margin were attributable to higher volume, improved business mix and improved performance.
Financial Condition
Northrop Grumman ended 2010 with cash and cash equivalents of approximately $3.7 billion compared with $3.3 billion at year-end 2009. Cash generated from operations in 2010 totaled $2.5 billion versus cash from operations of $2.1 billion in the year-ago period. Long-term debt marginally decreased to roughly $4 billion at fiscal 2010 end from $4.2 billion at the end of fiscal 2009.
Outlook
Northrop Grumman’s total order backlog at the end of fiscal 2010 stood at $64.2 billion compared with $69.2 billion at fiscal-end 2009. The company affirmed its revenue guidance for fiscal 2011 to about $27.5 billion. It expects its earnings per share (EPS) to be in the range of $6.40 - $6.60.
Los Angeles-based Northrop Grumman Corporation is one of the world’s leading shipbuilders and the second largest defense contractor in the U.S. The company supplies a broad array of products and services to the U.S. Department of Defense (DoD), including electronic systems, information technology, submarines and surface ships, aircraft, space technology and systems integration services.
Disclosure I am long NOC shares.
Fiscal 2010 earnings came in at $6.77 per share, easily beating the Zacks Consensus Estimate of $5.98 and fiscal 2009 earnings of $4.87 per share.
Operational Performance
Sales for the reported quarter decrease 3.6% to $8.6 billion, from $8.9 billion in the year-ago quarter, and was 1.9% lower than the Zacks Consensus Estimate of $8.8 billion. In the reported quarter, earnings from continuing operations increased marginally to $376 million from $375 million in the fourth quarter of 2009. Net earnings in the reported quarter decreased to $376 million compared with $413 million in the prior-year period.
Fiscal 2010 revenue was $34.8 billion versus the Zacks Consensus Estimate of $34.1 billion. Full year revenue also outdid the $33.8 billion generated a year ago.
Segmental Performance
Aerospace Systems
Aerospace Systems quarterly sales declined 4% year over year to $2.7 billion, principally due to lower volume for civil space and missile defense programs; along with fewer working days. Aerospace Systems’ operating income increased 11% to $322 million. Operating margin increased to 12.1% from 10.5% in the year-ago quarter. Higher operating income and margin rate were driven by improved program performances and lower costs.
Electronic Systems
Electronic Systems sales declined 10% to $1.9 billion, due to fewer working days and lower volume for several programs nearing completion and contracts transitioning to their next phase. This was partially offset by higher volume for targeting systems programs. Electronic Systems’ operating income decreased 0.7% to $272 million. However, operating margin increased to 14.5% from 13.2% year over year. Higher margin rate reflects improved program performance for intelligence, surveillance and reconnaissance programs, including postal automation and improved performance for land and self-protection systems programs.
Information Systems
Information Systems sales of $2.1 billion were 4.1% lower than the year-ago period, principally due to fewer working days and lower volume for intelligence and defense programs. This was partially offset by higher volume for civil systems programs. Information Systems operating income increased 66.4% to $178 million. Operating margin increased to 8.5% from 4.9% year over year. Higher operating income and margin primarily reflect improved program performance for civil systems programs.
Shipbuilding
Shipbuilding sales increased 4% to $1.7 billion, driven by higher volume for submarine and expeditionary warfare programs. Operating income also rose 52.3% to $134 million. Similarly, operating margin rose to 7.7% from 5.3% in the year-ago quarter. The rise in operating income and rate reflect higher volume and improved program performance for expeditionary warfare, aircraft carrier and submarine programs.
Technical Services
Technical Services’ sales increased 6% to $795 million due to higher volume for integrated logistics and modernization programs. Technical Services operating income increased 22.5% to $49 million. Operating margin increased to 6.2% from 5.3% year over year. The improvements in operating income and margin were attributable to higher volume, improved business mix and improved performance.
Financial Condition
Northrop Grumman ended 2010 with cash and cash equivalents of approximately $3.7 billion compared with $3.3 billion at year-end 2009. Cash generated from operations in 2010 totaled $2.5 billion versus cash from operations of $2.1 billion in the year-ago period. Long-term debt marginally decreased to roughly $4 billion at fiscal 2010 end from $4.2 billion at the end of fiscal 2009.
Outlook
Northrop Grumman’s total order backlog at the end of fiscal 2010 stood at $64.2 billion compared with $69.2 billion at fiscal-end 2009. The company affirmed its revenue guidance for fiscal 2011 to about $27.5 billion. It expects its earnings per share (EPS) to be in the range of $6.40 - $6.60.
Los Angeles-based Northrop Grumman Corporation is one of the world’s leading shipbuilders and the second largest defense contractor in the U.S. The company supplies a broad array of products and services to the U.S. Department of Defense (DoD), including electronic systems, information technology, submarines and surface ships, aircraft, space technology and systems integration services.
Disclosure I am long NOC shares.
Monday, February 14, 2011
Friedman Industries, FRD Incorporated Announces Third Quarter Results
Friedman Industries, Incorporated (NYSE Amex: FRD), a Texas-based company engaged in pipe manufacturing, steel coil processing and steel and pipe distribution, announced today its results of operations for the third quarter. For the quarter ended December 31, 2010, the Company recorded net earnings of $1,733,494 ($0.25 per share diluted) on sales of $31,135,887. During the quarter ended December 31, 2009, the Company recorded a net loss of $41,239 ($0.01 loss per share diluted) on sales of $13,470,721.
Disclosure I am Long FRD Shares.
Disclosure I am Long FRD Shares.
| SUMMARY OF OPERATIONS (unaudited) | ||||||||||||||||||
| THREE MONTHS ENDED DEC. 31, | NINE MONTHS ENDED DEC. 31, | |||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Net sales | $ | 31,135,887 | $ | 13,470,721 | $ | 89,711,381 | $ | 41,803,270 | ||||||||||
| Total costs, and other income | 28,510,988 | 13,443,389 | 82,271,525 | 42,382,602 | ||||||||||||||
| Earnings (loss) before income taxes | 2,624,899 | 27,332 | 7,439,856 | (579,332 | ) | |||||||||||||
| Income taxes | 891,405 | 68,571 | 2,486,794 | (169,098 | ) | |||||||||||||
| Net earnings (loss) | $ | 1,733,494 | $ | (41,239 | ) | $ | 4,953,062 | $ | (410,234 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 | ||||||||||||||
| Diluted | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 | ||||||||||||||
| Earnings (loss) per share: | ||||||||||||||||||
| Basic | $ | 0.25 | $ | (0.01 | ) | $ | 0.73 | $ | (0.06 | ) | ||||||||
| Diluted | $ | 0.25 | $ | (0.01 | ) | $ | 0.73 | $ | (0.06 | ) | ||||||||
Sunday, February 13, 2011
Intel Keeps the Bears at Bay
Worries about Intel’s (NASDAQ:INTC) future appear to be premature, for now.
The world’s largest chipmaker said after the closing bell Thursday that its fourth-quarter profit jumped 48%, easily beating what Wall Street had expected.
And next quarter appears safe too: Intel guided first-quarter revenue and gross margins above analysts’ expectations.
The report continued the upward momentum in the chipmaker’s shares, which have been rising this week after shares had fallen about 6% in the past month — underperforming both the semiconductor sector as a whole, as well as the broader market.
In after-hours trading, the stock tacked on another 1.7% to $21.71.
Perhaps even more importantly, the news suggests that the transition assumed to be underway from personal computers to tablets and other mobile computing options is far from complete, and that Intel can maybe continue to succeed while trying to lodge a foothold in the mobile-device chip space.
Specifically, Intel said net income for the quarter ended Dec. 31 rose to $3.4 billion, to 59 cents a share, from $2.3 billion, or 40 cents a share, a year earlier. Revenue climbed 8% to $11.5 billion.
Wall Street analysts, on average, had been expecting the company to post earnings of 53 cents a share on revenue of $11.4 billion.
Intel also said gross margins came in at 67%, while average selling prices for the company’s microprocessors was up slightly from the third quarter.
The company continues to be bullish on margins, saying they would be 64%, plus or minus a couple percentage points, in the first quarter, slightly above Street forecasts.
But with the crowd-pleasing press release that offered up to Wall Street the top- and bottom-line upside surprise came the figures that investors are most concerned about: namely, the appearance that growth is slowing in the company’s PC client business, which is 70% of Intel’s revenue.
That division grew 14% year-over-year three months ago; on Thursday, Intel said fourth-quarter PC client revenue rose only 3.5%. Those numbers dovetail a little too conveniently with research firm Gartner’s announcement on Wednesday that it was lowering its fourth-quarter PC growth forecast to 3.1% from 4.8%.
For investors who have seen this stock trade between $18 and $24 for nearly 18 months, and may see it climb to $22 on Friday off this earnings report, it may be time to wonder how much upside is left while Intel seeks a better growth model.
Disclosure I am long INTC shares.
The world’s largest chipmaker said after the closing bell Thursday that its fourth-quarter profit jumped 48%, easily beating what Wall Street had expected.
The report continued the upward momentum in the chipmaker’s shares, which have been rising this week after shares had fallen about 6% in the past month — underperforming both the semiconductor sector as a whole, as well as the broader market.
In after-hours trading, the stock tacked on another 1.7% to $21.71.
Perhaps even more importantly, the news suggests that the transition assumed to be underway from personal computers to tablets and other mobile computing options is far from complete, and that Intel can maybe continue to succeed while trying to lodge a foothold in the mobile-device chip space.
Specifically, Intel said net income for the quarter ended Dec. 31 rose to $3.4 billion, to 59 cents a share, from $2.3 billion, or 40 cents a share, a year earlier. Revenue climbed 8% to $11.5 billion.
Wall Street analysts, on average, had been expecting the company to post earnings of 53 cents a share on revenue of $11.4 billion.
Intel also said gross margins came in at 67%, while average selling prices for the company’s microprocessors was up slightly from the third quarter.
The company continues to be bullish on margins, saying they would be 64%, plus or minus a couple percentage points, in the first quarter, slightly above Street forecasts.
But with the crowd-pleasing press release that offered up to Wall Street the top- and bottom-line upside surprise came the figures that investors are most concerned about: namely, the appearance that growth is slowing in the company’s PC client business, which is 70% of Intel’s revenue.
That division grew 14% year-over-year three months ago; on Thursday, Intel said fourth-quarter PC client revenue rose only 3.5%. Those numbers dovetail a little too conveniently with research firm Gartner’s announcement on Wednesday that it was lowering its fourth-quarter PC growth forecast to 3.1% from 4.8%.
For investors who have seen this stock trade between $18 and $24 for nearly 18 months, and may see it climb to $22 on Friday off this earnings report, it may be time to wonder how much upside is left while Intel seeks a better growth model.
Disclosure I am long INTC shares.
DuPont Tops Estimates, Ups 2011 Forecast
DuPont's(DD - news) fourth-quarter earnings topped estimates and the chemicals maker raised its forecast for 2011.
DuPont earned $376 million, or 40 cents a share, in the quarter, down from year-earlier earnings of $441 million, or 48 cents a share. Excluding items, earnings in the latest quarter were 50 cents a share.
Analysts surveyed by Thomson Reuters expected DuPont to earn 32 cents a share in the fourth quarter.
DuPont said Tuesday it expects earnings in 2011 of $3.45 to $3.75 a share, up from its previous outlook of $3.30 to $3.60 a share. The company said the impact of the planned Danisco acquisition could cut 2011 earnings by 30 cents to 45 cents a share on a reported basis.
Disclosure NONE
DuPont earned $376 million, or 40 cents a share, in the quarter, down from year-earlier earnings of $441 million, or 48 cents a share. Excluding items, earnings in the latest quarter were 50 cents a share.
Analysts surveyed by Thomson Reuters expected DuPont to earn 32 cents a share in the fourth quarter.
DuPont said Tuesday it expects earnings in 2011 of $3.45 to $3.75 a share, up from its previous outlook of $3.30 to $3.60 a share. The company said the impact of the planned Danisco acquisition could cut 2011 earnings by 30 cents to 45 cents a share on a reported basis.
Disclosure NONE
Wayside Technology Group, Inc. Reports 2010 Fourth Quarter Results and Declares Quarterly Dividend
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) today reported financial results for the fourth quarter ended December 31, 2010. The results will be discussed in a conference call to be held on Friday, February 4, 2011 at 10:00 AM Eastern time. The dial-in telephone number is (866) 835 8907 and the pass code is "WSTG."
This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will also be available on the company's website at www.waysidetechnology.com.
Cash and marketable securities amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer's Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer's Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
"The fourth quarter of 2010 was a tremendous success for us," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings."
Sales for both segments showed strong growth. The increase in net sales for the three months and full year results for the period ended December 31, 2010, compared to the same periods in 2009, was mainly a result of our continued focus on the expanding virtual infrastructure-centric business, the addition of several key product lines, and the strengthening of our account penetration.
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer's Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer's Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Acronis, CA, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, and VMware.
Additional information can be found by visiting www.waysidetechnology.com.
The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.
-- Tables Follow --
This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will also be available on the company's website at www.waysidetechnology.com.
Cash and marketable securities amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer's Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer's Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
"The fourth quarter of 2010 was a tremendous success for us," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings."
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer's Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer's Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Acronis, CA, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, and VMware.
Additional information can be found by visiting www.waysidetechnology.com.
The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.
-- Tables Follow --
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
December 31, December 31,
2010 2009
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,955 $ 8,560
Marketable securities 4,528 7,571
Accounts receivable, net 42,486 27,040
Inventory - finished goods 1,164 967
Prepaid expenses and other current assets 1,250 998
Deferred income taxes 516 677
------------ ------------
Total current assets 60,899 45,813
Equipment and leasehold improvements, net 545 432
Accounts receivable long-term 6,866 6,901
Other assets 37 38
Deferred income taxes 336 483
------------ ------------
Total assets $ 68,683 $ 53,667
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 41,791 $ 29,230
Current portion - capital lease obligation 75 -
------------ ------------
Total current liabilities 41,866 29,230
Long term portion - capital lease obligation 138 -
Other liabilities - 78
------------ ------------
Total liabilities 42,004 29,308
------------ ------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares
issued, and 4,770,241 and 4,688,844 shares
outstanding, respectively 53 53
Additional paid-in capital 25,473 24,826
Treasury stock, at cost, 514,259 and 595,656
shares, respectively (3,570) (3,555)
Retained earnings 4,267 2,727
Accumulated other comprehensive income 456 308
------------ ------------
Total stockholders' equity 26,679 24,359
------------ ------------
Total liabilities and stockholders' equity $ 68,683 $ 53,667
============ ============
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Year ended Three months ended
December 31, December 31,
2010 2009 2010 2009
--------- --------- -------- ---------
(Unaudited) (Unaudited)
Revenues
Lifeboat segment $ 149,151 $ 98,058 $ 45,814 $ 28,927
Programmer's Paradise segment 57,579 48,326 19,122 13,365
--------- --------- -------- ---------
Total Revenue 206,730 146,384 64,936 42,292
Cost of sales
Lifeboat segment 135,448 88,117 41,538 25,849
Programmer's Paradise segment 51,272 42,674 17,175 12,092
--------- --------- -------- ---------
Total Cost of sales 186,720 130,791 58,713 37,941
--------- --------- -------- ---------
Gross Profit 20,010 15,593 6,223 4,351
Operating expenses
Selling costs 6,867 5,516 2,010 1,508
Stock based compensation 1,187 893 295 236
Other general and administrative
expenses 5,153 4,910 1,531 1,272
--------- --------- -------- ---------
Total Selling, general and
administrative expenses 13,207 11,319 3,836 3,016
--------- --------- -------- ---------
Income from operations 6,803 4,274 2,387 1,335
Interest income, net 405 521 89 118
Realized foreign exchange gain
(loss) 2 - (1) 1
--------- --------- -------- ---------
Income before income tax provision 7,210 4,795 2,475 1,454
Provision for income taxes 2,789 1,928 990 554
--------- --------- -------- ---------
Net income $ 4,421 $ 2,867 $ 1,485 $ 900
========= ========= ======== =========
Net income per common share -
Basic $ 1.01 $ 0.65 $ 0.34 $ 0.20
========= ========= ======== =========
Net income per common share -
Diluted $ 0.98 $ 0.65 $ 0.33 $ 0.20
========= ========= ======== =========
Weighted average common shares
outstanding - Basic 4,386 4,399 4,405 4,397
========= ========= ======== =========
Weighted average common shares
outstanding - Diluted 4,500 4,427 4,569 4,430
========= ========= ======== =========Disclosure I am long WSTG shares.
Friday, June 18, 2010
Fifth Street Finance Raises New Equity
Fifth Street Finance Corp (FSC) announced just after the Tuesday close that it has commenced a public offering of 8,000,000 shares of its common stock. According to the company's press release:
Fifth Street plans to grant the underwriters for the offering an option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments, if any. All shares will be offered by Fifth Street. Wells Fargo Securities, Morgan Stanley, UBS Investment Bank and RBC Capital Markets will act as joint book-running managers for the offering.
Fifth Street intends to use substantially all of the net proceeds from the offering to make investments in small and mid-sized companies in accordance with its investment objectives and strategies described in the prospectus supplement and accompanying prospectus and for general corporate purposes, including working capital requirements. Fifth Street may also use a portion of the net proceeds from the offering to repay its outstanding borrowings under its three-year credit facility with Wells Fargo Bank, N.A.
We're not surprised that Fifth Street Finance is raising more capital. The watchword in the BDC industry is raise money while/when the going is good. FSC has been having a good run of late, booking myriad new deals, (see our post of May 24, 2010) increasing its Revolver limit and reducing the pricing paid to its lenders (see our post of May 27, 2010).
This is a major offering, with the total stock being sold equal to 20% of the existing shares outstanding. FSC should raise $110mn at today's closing price. That's more than enough to pay off any borrowings under the Wells Fargo line (all of which has occurred since month end). The stock price is at a decent premium to the latest NAV : 13%, which is good for existing shareholders. The most obvious downside might be a delay in further dividend increases (most recently the quarterly distribution was up to 32 cents), but that's not for sure. FSC has been willing in the past to get the distribution up ahead of its Distributable Earnings Per Share and Net Investment Income Per Share.
Certainly, the balance sheet of the company seems recession proof. When we recently about the pro-forma impact of a double dip recession (see post of June 1, 2010) and wrote that half of the BDCs we track had virtually no debt, FSC was already on that blue chip list. This additional fillip of equity will only enhance a balance sheet which has only begun to grow. Total equity should be around $600mn after this equity offering closes, and with debt at less than zero, Fifth Street is sitting pretty from that standpoint.
The BDC Reporter, true to our name, seeks to avoid opining on whether or not a stock is a good value or a Buy or Sell. We leave that to the investment banks. However, we can say that the company's $1.28 annual dividend represents a 10.6% yield on today's closing price, and that the stock is trading just 11% below its 52 week high (using Yahoo Finance), which is also its all-time high. The analysts consensus for next fiscal year's earnings are $1.33 a share, which means FSC is trading a multiple of 9.1x.
Disclousre I am long FSC shares.
Fifth Street plans to grant the underwriters for the offering an option to purchase up to an additional 1,200,000 shares of common stock to cover over-allotments, if any. All shares will be offered by Fifth Street. Wells Fargo Securities, Morgan Stanley, UBS Investment Bank and RBC Capital Markets will act as joint book-running managers for the offering.
Fifth Street intends to use substantially all of the net proceeds from the offering to make investments in small and mid-sized companies in accordance with its investment objectives and strategies described in the prospectus supplement and accompanying prospectus and for general corporate purposes, including working capital requirements. Fifth Street may also use a portion of the net proceeds from the offering to repay its outstanding borrowings under its three-year credit facility with Wells Fargo Bank, N.A.
We're not surprised that Fifth Street Finance is raising more capital. The watchword in the BDC industry is raise money while/when the going is good. FSC has been having a good run of late, booking myriad new deals, (see our post of May 24, 2010) increasing its Revolver limit and reducing the pricing paid to its lenders (see our post of May 27, 2010).
This is a major offering, with the total stock being sold equal to 20% of the existing shares outstanding. FSC should raise $110mn at today's closing price. That's more than enough to pay off any borrowings under the Wells Fargo line (all of which has occurred since month end). The stock price is at a decent premium to the latest NAV : 13%, which is good for existing shareholders. The most obvious downside might be a delay in further dividend increases (most recently the quarterly distribution was up to 32 cents), but that's not for sure. FSC has been willing in the past to get the distribution up ahead of its Distributable Earnings Per Share and Net Investment Income Per Share.
Certainly, the balance sheet of the company seems recession proof. When we recently about the pro-forma impact of a double dip recession (see post of June 1, 2010) and wrote that half of the BDCs we track had virtually no debt, FSC was already on that blue chip list. This additional fillip of equity will only enhance a balance sheet which has only begun to grow. Total equity should be around $600mn after this equity offering closes, and with debt at less than zero, Fifth Street is sitting pretty from that standpoint.
The BDC Reporter, true to our name, seeks to avoid opining on whether or not a stock is a good value or a Buy or Sell. We leave that to the investment banks. However, we can say that the company's $1.28 annual dividend represents a 10.6% yield on today's closing price, and that the stock is trading just 11% below its 52 week high (using Yahoo Finance), which is also its all-time high. The analysts consensus for next fiscal year's earnings are $1.33 a share, which means FSC is trading a multiple of 9.1x.
Disclousre I am long FSC shares.
Tuesday, April 14, 2009
Wells Fargo Earnings Announcement To hot to Handle
Bloomberg reported Monday that Wells Fargo (WFC) may need an additional $5OB to pay back the U.S. Treasury and to cover loan losses. WFC surprised the market last week, by pre – announcing a $3B profit in the 1st quarter, but provided limited details of that pre – announcement.We should not be euphoric about this announcement, as there are some unknown details and negative headwinds that the company still faces.
With the current job losses continue to increase at a 700K per week clip, we can expect the credit losses for WFC will rise with the higher unemployment. This will reduce the company’s bottom line, and will impact their earnings going forward.
As reported by Bloomberg, WFC charge – off rate significantly increased to $3.3B in its current quarter compared to $2.8B from the last month.
Credit Suisse analyst Moshe Orenbuch stated,
I think this bank stock as a lot of work to do, this rise is premature, I do not hold the shares at this time and dont intend to buy in the near future.
With the current job losses continue to increase at a 700K per week clip, we can expect the credit losses for WFC will rise with the higher unemployment. This will reduce the company’s bottom line, and will impact their earnings going forward.
As reported by Bloomberg, WFC charge – off rate significantly increased to $3.3B in its current quarter compared to $2.8B from the last month.
Credit Suisse analyst Moshe Orenbuch stated,
“Given rising unemployment, continued home price declines and general macroeconomic headwinds, WFC’s consumer and commercial portfolios remain at risk for meaningfully higher credit losses over 2009 and 2010.”
I think this bank stock as a lot of work to do, this rise is premature, I do not hold the shares at this time and dont intend to buy in the near future.
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