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Chicago Atlantic Real Estate Finance Upsizes Its Revolving Credit Facility To $65M

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Category: blogSource: benzingaMay 13th, 2022

Saga Partners 1Q22 Commentary: Carvana And Redfin

Saga Partners commentary for the first quarter ended March 31, 2022. During the first quarter of 2022, the Saga Portfolio (“the Portfolio”) declined 42.4% net of fees. This compares to the overall decrease for the S&P 500 Index, including dividends, of 4.6%. The cumulative return since inception on January 1, 2017, for the Saga Portfolio […] Saga Partners commentary for the first quarter ended March 31, 2022. During the first quarter of 2022, the Saga Portfolio (“the Portfolio”) declined 42.4% net of fees. This compares to the overall decrease for the S&P 500 Index, including dividends, of 4.6%. The cumulative return since inception on January 1, 2017, for the Saga Portfolio is 112.0% net of fees compared to the S&P 500 Index of 122.7%. The annualized return since inception for the Saga Portfolio is 15.4% net of fees compared to the S&P 500’s 16.5%. Please check your individual statement as specific account returns may vary depending on timing of any contributions throughout the period. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Interpretation of Results I was not originally planning to write a quarterly update since switching to semi-annual updates a few years ago but given the current drawdown in the Saga Portfolio I thought our investors would appreciate an update on my thoughts surrounding the Portfolio and the current market environment in general. The Portfolio’s drawdown over the last several months has been hard not to notice even for those who follow best practices of only infrequently checking their account balance. Outperformance vs. the S&P 500 since inception has flipped to underperformance on a mark-to-market basis and the stock prices of our companies have continued to decline into the second quarter. In past letters I have spent a lot of time discussing the Saga Portfolio’s psychological approach to investing to help prepare for the inevitable chaos that will occur while investing in the public markets from time-to-time. It’s impossible to know why the market does what it does at any point in time. I would argue that the last two years could be considered pretty chaotic, both on the upside speculation and now what appears to be on the downside fear and panic. I will attempt to give my perspective on how events played out within the Saga Portfolio with an analogy. Let’s say that in 2019 we owned a fantastic home that was valued at $500,000. We loved it. It was in a great neighborhood with good schools for our kids. We liked and trusted our neighbors; in fact, we gave them a spare key in case of emergencies. It was the perfect home for us to live in for many years to come. Based on the neighborhood becoming increasingly attractive over time, it was likely that our home may be valued around $2 million in ~10 years from now. This is strong appreciation (15% IRR) compared to the average home, but this specific home and neighborhood had particularly strong long-term fundamental tailwinds that made this a reasonable expectation. Then in 2020 a global pandemic hit causing a huge disorientation in the housing market. For whatever reasons, the appraised value of our home almost immediately doubled to $1 million. Nothing materially changed about what we thought our home would be worth in 10 years, but now from the higher market value, the home would only appreciate at a lower 7% IRR assuming it would still be worth $2 million in 10 years. What were our options under these new circumstances? We could move and try to buy a new home that provided a higher expected return. However, the homes in the other neighborhoods that we really knew and liked also doubled in price, so they did not really provide any greater value. Also, the risk and hassle of moving for what may potentially only be modestly better home appreciation did not make sense. We could buy a home in a less desirable neighborhood where prices looked relatively cheaper, but we would not want to live long-term. Even if we decided to live there for many years, the long-term fundamental dynamics of the crummy neighborhood were weak to declining and it was uncertain if the property would appreciate at all despite its lower valuation. We could sell our home for $1 million and rent a place to live for the interim period while holding cash and waiting for the market to potentially correct. However, we did not know if, when, or to what extent the market would correct and the thought of renting a place temporarily for our family was unappealing. For the Saga family, we decided to stay invested in the home that we knew, loved, and still believed had similar, if not stronger prospects following the COVID-induced surge in demand in our neighborhood. Now, for whatever reason, the market views our neighborhood very poorly and the appraised value of our home declined to $250,000, below any previous appraisals. It seems odd because it is the exact same home and the fundamentals of the neighborhood are much stronger than several years ago, suggesting that the expected $2 million value in the future is even more probable than before. It is a very peculiar situation, but the market can do anything at any moment. Fortunately, the lower appraisal value does not impact how much we still love our home, neighborhood, schools, or what the expected future value will be. In fact, we prefer a lower value because our property taxes will be lower! One thing is for certain, we would never sell our home for $250,000 simply because the appraised value has declined from prior appraisals. We would also never dream of selling in fear that the downward price momentum continues and then hopefully attempt to buy it back one day for $200,000. We can simply sit tight for as long as we want while the neighborhood around us continues to improve fundamentally over time, fully expecting the value of our home to eventually go up with it. It just so happens humans are highly complex beings and do not always react in what an economist may consider a rational way. Our emotions are highly contagious. When someone smiles at you, the natural reaction is to smile back. When someone else is sad, you feel empathy. These are generally great innate characteristics for helping to build the strong relationships with friends and family that are so important throughout life. But it also means that when other people are scared, it also makes you feel scared. And when more and more people get scared, that fear can cascade exponentially and turn into panic, which can cause people to do some crazy things, especially when it comes to making long-term decisions. As fear spreads, all attention shifts from thinking about what can happen over the next 5-10+ years to the immediate future of what will happen over the next day or even hour. Of course, during times of panic, “this time is always different.” It may very well be the case, but the world can only end once. Historically speaking, things have tended to work out pretty well over time on average. I am by no means immune to these contagious feelings. My way of coping with how I am innately wired is by accepting this fact and then trying to know what I can and cannot control. A core part of my investing philosophy is that I do not know what the market will do next, and I never will. Inevitably the market or a specific stock will crash, as it does from time-to-time. This “not timing the market” philosophy or treating our public investments from the perspective of a private owner may feel like a liability during a drawdown, but it is this same philosophy of staying invested in companies we believe to have very promising futures which positions us perfectly for the inevitable recovery. Eventually, emotions and the business environment will normalize, and the storm will pass. It could be next quarter, year, or even in several years, but we will be perfectly positioned for the recovery, at which point the stock price lows will likely be long gone. The whole investing process improves if one can really take the long-term view. However, it is not natural for people to think long-term particularly when it comes to owning pieces of publicly traded companies. It is far more natural to want to act by jumping in and out of stocks in an attempt to outsmart others who are trying to outsmart you. When the market price of your ownership in a business is available and fluctuating wildly every single day, it is hard to ignore and not be influenced by it. While one can get lucky through speculation, the big money is made by investing, by owning great businesses and letting them compound owner’s capital over many years. As the market has evolved over the last few decades, there appears to be an ever-increasing percent of “investors” who are effectively short-term renters, turning over the companies in their portfolios so quickly that they never really know the business that lies below the surface of the stock. While more of Wall Street is increasingly focused on the next quarter, a potentially looming recession, the Fed’s next interest rate move, or trying to time the market’s rotation from one industry into another, we are trying to think about what our companies’ results will be in the year 2027, or better yet 2032 and beyond. The most significant advantage of investing in the public market is the ability to take advantage of it when an opportunity presents itself or to ignore the market when there is nothing to do. The key to success is never giving up this advantage. You must be able to play out your hand and not be forced to sell your assets at fire sale prices. Significant portfolio declines are a good reminder of the importance of only investing money that you will not need for many years. This prevents one from being in a position where it is necessary to liquidate when adverse psychology has created unusually low valuations. However, we do not want to simply turn a blind eye to stock price declines of 50% or more and dig our heals into the ground believing the market is just being irrational. When the world is screaming at you that it believes your part ownership in these companies is worth significantly less than the market believed not too long ago, we attempt to understand if we are missing something by continually evaluating the long-term outlooks of our companies using all the relevant information that we have today from a first principles basis. Portfolio Update Instead of frequently checking a stock’s price to determine whether the company is making progress, I prefer looking to the longer-term trends of the business results. There will be stronger and weaker quarters and years since business success rarely moves up and to the right in a perfectly straight line. As a company faces headwinds or tailwinds from time-to-time, the stock price may fluctuate wildly in any given year, however the underlying competitive dynamics and business models that drive value will typically change little. Regarding our companies as a whole, first quarter results reflected a general softness in certain end markets, including the used car, real estate, and advertising markets. However, the Saga Portfolio’s companies, on average, provide a superior customer value proposition difficult for competitors to match. Most of them have a cost advantage compared to competitors; therefore, the worse it gets for the economy, the better it gets for our companies’ respective competitive positions over the long-term. For example, first quarter industry-wide used car volumes declined 15% year-over-year while Carvana’s retail units increased 14%. Existing home sales decreased 5% during the quarter while Redfin’s real estate transactions increased 1%. Digital advertising is expected to grow 8-14% in 2022 while the Trade Desk grew Q1’22 revenues 43% and is expected to grow them more than 30% for the full year 2022. While industry-wide TV volumes remain below 2019 pre-COVID levels, Roku gained smart TV market share sequentially during the quarter, continuing to be the number one TV operating system in the U.S. and number one TV platform by hours streamed in North America. Weaker industry conditions will inevitably impact our companies’ results; however, our companies should continue to take market share and come out on the other side of any potential economic downturn stronger than when they went in. For the portfolio update, I wanted to provide a more in-depth update on Carvana and Redfin which have both experienced particularly large share price declines and have recent developments that are worth reviewing. Carvana I first wrote about Carvana Co (NYSE:CVNA) in this 2019 write-up. I initially explained Carvana’s business, superior value proposition compared to the traditional dealership model, attractive unit economics, and how they were uniquely positioned to win the large market opportunity. Since then, Carvana has by far exceeded even my most optimistic initial expectations. While the company did benefit following COVID in the sense that customers’ willingness to buy and sell cars through an online car dealer accelerated, the operating environment over the last two years has been very challenging. Carvana executed exceedingly well considering the shifting customer demand in what is a logistically intensive operation and what has been a tight inventory environment due to supply chain issues restricting new vehicle production. Sales, gross profits, and retail units sold have grown at a remarkable 104%, 151%, and 87% CAGR over the last five years, respectively. Source: Company filings Shares have come under pressure following their first quarter results, which reflected larger than expected losses. The quarter was negatively impacted by a combination of COVID-related logistical issues in their network that started towards the end of the fourth quarter as Omicron cases spread. Employee call off rates related to Omicron reached an unprecedented 30% that led to higher costs and supply chain bottlenecks. As less inventory was available due to these problems, it led to less selection and longer delivery times, lowering customer conversion rates. Additionally, interest rates increased at a historically fast rate during the first quarter which negatively impacted financing gross profits. Carvana originates loans for customers and then sells them to investors at a later date. If interest rates move materially between loan origination and ultimately selling those loans, it can impact the margin Carvana earns on underwriting those loans. Industry-wide used car volumes were also down 15% year-over-year during the first quarter. While Carvana continues to grow and take market share, its retail unit volume growth was slower than initially anticipated, up only 14% year-over-year. Carvana has been in hyper growth mode since inception and based on the operational and logistical requirements of the business, typically plans, builds, and hires for expected capacity 6-12 months into the future. This has historically served Carvana well given its exceptionally strong growth, but when the company plans and hires for higher capacity than what occurs, it can lead to lower retail gross profits and operating costs per unit sold. When combined with lower financing gross profits in the quarter from rising interest rates, losses were greater than expected. In February, Carvana announced a $2.2 billion acquisition of ADESA (including an additional $1 billion plan to build out the reconditioning sites) which had been in the works for some time. ADESA is a strategic acquisition to help accelerate Carvana’s footprint expansion across the country, growing its capacity from 1.0 million units at the end of Q1’22 to 3.2 million units once complete over the next several years. It is unfortunate the acquisition timing followed a difficult quarter that had greater than expected losses, combined with a generally tighter capital market environment. Carvana ended up raising $3.25 billion in debt ($2.2 billion for the acquisition and $1 billion for the buildout) at a higher than initially expected 10.25% interest rate. Given these higher financing costs and first quarter losses, they issued an additional $1.25 billion in new equity at $80 per share, increasing diluted shares outstanding by ~9%. Despite the short-term speedbumps surrounding logistical issues, softer industry-wide demand, and a higher cost of capital to acquire ADESA, Carvana’s long-term outlook not only remains intact but looks even more promising than before. To better understand why this is the case and where Carvana is in its lifecycle, it helps to provide a little background on the history of retail. While e-commerce is a more recent phenomena that developed from the rise of the internet in the 1990s, the retail industry has undergone several transformations throughout history. In retailing, profitability is determined by two factors: the margins earned on inventory and the frequency with which they can turn inventory. Each successive retail transformation had a similar economic pattern. The newer model had greater operating leverage (higher fixed costs, lower variable costs). This resulted in greater economies of scale (lower cost per unit) and therefore greater efficiency (higher asset turnover) with size that enabled them to charge lower prices (lower gross margins) than the preceding model and still provide an attractive return on capital. The average successful department store earned gross margins of ~40% and turned inventory about 3x per year, providing ~120% annual return on the capital invested in inventory. The average successful big box retailer earned ~20% gross margins and turned its inventory 5x per year. Amazon retail earns ~10% gross margins (including fulfillment costs in COGS) and turns inventory at a present rate of 12x times annually. The debate that surrounds any subscale retailer, particularly in e-commerce, is whether they have enough capital/runway to build out the required infrastructure and then scale business volume to spread fixed costs over enough units. Before reaching scale, analysts may point to an online business’ lower price points (“how can they charge such low prices?!”), higher operating costs per unit (“they lose so much money per item!”), and ongoing losses and capital investments (“they spend billions of dollars and still have not made any money!”) as evidence that the model does not make economic sense. Who can blame them since the history books are filled with companies that never reached scale? However, if the retailer does build the infrastructure and there is sufficient demand to spread fixed costs over enough volume, the significant capital investment and high operating leverage creates high barriers to entry. If we look to Amazon as the dominant e-commerce company today, once the infrastructure is built and reaches scale, there is little marginal cost to serve any prospective customer with an internet connection located within its delivery footprint. For this reason, I have always been hesitant to invest in any e-commerce company that Amazon may be able to compete with directly, which is any mid-sized product that fits in an easily shippable box. As it relates to used car retailing, the infrastructure required to ship and recondition cars is unique, and once built, the economies of scale make it nearly impossible for potential competitors to replicate. Carvana is in the very early stages of building out its infrastructure. There is clearly demand for its attractive customer value proposition. It has demonstrated an ability to scale fixed costs in earlier cohorts as utilization of capacity increases, providing attractive unit economics at scale. Newer market cohorts are tracking at a similar, if not faster market penetration rate as earlier cohorts. Carvana is still investing heavily in building out a nationwide hub-and-spoke transportation network and reconditioning facilities. In 2021 alone, Carvana grew its balance sheet by $4 billion as it invested in its infrastructure while also reaching EBITDA breakeven for the first time. The Amazon story is a prime example (pun intended) of a new and better business model (more attractive unit economics) that delivered a superior value proposition and propelled the company ahead of its competition, similar to the underlying dynamics occurring in the used car industry today. Amazon invested heavily in both tangible and intangible growth assets that depressed earnings and cash flow in its earlier years (and still today) while growing its earning power and the long-term value of the business. The question is, does Carvana have enough capital/liquidity to build out its infrastructure and scale business volume to then generate attractive profits and cash flow? Following Carvana’s track record of scaling operating costs and reaching EBITDA breakeven in 2021, the market was no longer concerned about its liquidity position or the sustainability of its business model. However, the recent quarterly loss combined with taking on $3 billion in debt to buildout the 56 ADESA locations across the country raises the question of whether Carvana has enough liquidity to reach scale. Carvana’s current stock price clearly reflects the market discounting the probability that Carvana will face liquidity issues and therefore have to raise further capital at unfavorable terms. However, I think if you look a little deeper, Carvana has clearly demonstrated highly attractive unit economics. It has several levers to pull to protect it from any liquidity concerns if needed. The $2.6 billion in cash (as well as $2 billion in additional available liquidity in unpledged real estate and other assets) it has following the ADESA acquisition, is more than enough to sustain a potentially prolonged decline in used car demand. The most probable scenario over the next several quarters is that Carvana will address its supply chain and logistical issues that were largely due to Omicron. As the logistical network normalizes, more of Carvana’s inventory will be available to purchase on their website with shorter delivery times, which will increase customer conversion rates. This will lead to selling more retail units, providing higher inventory turnover and lower shipping costs, and therefore gross profit per unit will recover from the first quarter lows. Other gross profit per unit (which primarily includes financing) will also normalize in a less volatile interest rate environment. Combined total gross profit per unit should then approach normalized levels by the end of the year/beginning of 2023 (~$4,000+ per unit). Like all forms of leverage, operating leverage works both ways. For companies with higher operating leverage, when sales increase, profits will increase at a faster rate. However, if sales decrease, profits will decrease at a faster rate. While Carvana has high operating leverage in the short-term, they do have the ability adjust costs in the intermediate term to better match demand. When demand suddenly shifts from plan, it will have a substantial impact on current profits. First quarter losses were abnormally high because demand was lower than expected. Although, one should not extrapolate those losses far into the future because Carvana has the ability to better adjust and match its costs structure to a lower demand environment if needed. As management better matches costs with expected demand, operating costs as a whole will remain relatively flat if not decline throughout the year as management has already taken steps to lower expenses. As volumes continue to grow at the more moderate pace reflected in the first quarter and SG&A remains flat to slightly declining, costs per unit will decline with Carvana reaching positive EBITDA per unit by the second half of 2023 in this scenario. Source: Company filing, Saga Partners Source: Company filing, Saga Partners With the additional $3.2 billion in debt, Carvana will have a total interest expense of ~$600 million per year, assuming no paydown of existing revolving facilities or net interest income on cash balances. Management plans on spending $1 billion in capex to build out the ADESA locations. They are budgeting for ~$40 million in priority and elective capex per quarter going forward suggesting the build out will take ~6 years. Total capex including maintenance is expected to be $50 million a quarter. Carvana would reach positive free cash flow (measured as EBITDA less interest expense less total Capex) by 2025. Note this assumes the used car market remains depressed throughout 2022 and then Carvana’s retail unit growth increases to 25% a year for the remainder of the forecast and no benefit in lower SG&A or increased gross profit per unit from the additional ADESA locations was assumed. Stock based compensation was included in the SG&A below so actual free cash flow would be higher than the chart indicates. Source: Company filings, Saga Partners Note: Free cash flow is calculated as EBITDA less interest expense less capex After the close of the ADESA acquisition, Carvana has $2.6 billion in cash (plus $2 billion in additional liquidity from unpledged assets if needed). Assuming the above scenario, Carvana has plenty of cash to endure EBITDA losses over the next year and a half, interest payments, and capex needs. Source: Company filings, Saga Partners The above scenario does not consider the increasing capacity that Carvana will have as it continues to build out the ADESA locations. After building out all the locations, Carvana will be within one hundred miles of 80% of the U.S. population. This unlocks same-day and next-day delivery to more customers, leading to higher customer conversion rates, higher inventory turn, lower risk of delivery delays, and lower shipping costs, which all contribute to stronger unit economics. Customer proximity is key. Due to lower transport costs, faster turnaround times on acquired vehicles, and higher conversion from faster delivery speeds, a car picked up or delivered within two hundred miles of a recondition center generates $750 more profit than an average sale. It is possible that industry-wide used car demand remains depressed or even worsens for an extended period. If this were the case, management has the ability to further optimize for efficiency by lowering operating costs to better match demand. This is what management did following the COVID demand shock in March 2020. The company effectively halted corporate hiring and tied operational employee hours to current demand as opposed to future demand. During the months of May and June 2020, SG&A (ex. advertising expense and D&A) per unit was $2,600, far lower than the $3,440 reported in 2020 or $3,654 in 2021. Carvana has also historically operated between 50-60% capacity utilization, indicating further room to scale volumes across its existing infrastructure without the need for materially greater SG&A expenses. Advertising expense in older cohorts reached ~$500 per unit, compared to the $1,126 reported for all of 2021, while older cohorts still grew at 30%+ rates. If needed, Carvana could improve upon the $2,600 SG&A plus $500 advertising expense ($3,100 in total) per unit at its current scale and be far below gross profit per unit even if used car demand remains depressed for an extended period of time. When management optimizes for efficiency as opposed to growth, it has the ability to significantly lower costs per unit. Carvana has highly attractive unit economics and I fully expect management will take the needed measures to right size operating costs with demand. They recently made the difficult decision to layoff ~2,500 employees, primarily in operations, to better balance capacity with the demand environment. If we assume it takes six years to fully build out the additional ADESA reconditioning locations, Carvana will have a total capacity of 3.2 million units in 2028. If Carvana is running at 90% utilization it could sell 2.9 million retail units (or ~7% of the total used car market). If average used car prices decline from current levels and then follow its more normal longer-term price appreciation trends, the average 2028 Carvana used car price would be ~$23,000 and would have a contribution profit of ~$2,000 per unit at scale. This would provide nearly $5.6 billion in EBITDA. After considering expected interest expense, maintenance capex, and taxes, it would provide over $4 billion in net income. If Carvana realizes this outcome in six years, the company looks highly attractive (perhaps unreasonably attractive) compared to its current $7 billion market cap or $10 billion enterprise value (excluding asset-based debt). Redfin I recently wrote about Redfin Corp (NASDAQ:RDFN) in this December 2021 write-up. I explained how Redfin has increased the productivity of real estate agents by integrating its website with its full-time salaried agents and then funneling the demand aggregated on its website to agents. Redfin agents do not have to spend time prospecting for business but can rather spend all their time servicing clients throughout the process of buying and selling a home. Since Redfin agents are three times more productive than a traditional agent, Redfin is a low-cost provider, i.e., it costs Redfin less to close a transaction than a traditional brokerage at scale. It is a similar concept as the higher operating leverage of e-commerce relative to brick & mortar retailers. Redfin has higher operating leverage compared to the traditional real estate brokerage. Real estate agents are typically contractors for a brokerage. They are largely left alone to run their own business. Agents have to prospect for clients, market/advertise listings, do showings, and service clients throughout each step of the real estate transaction. Everything an agent does is largely a variable cost because few of their tasks are automated. Redfin, on the other hand, turned prospecting for demand, marketing/advertising listings, and investments in technology to help agents and customers throughout the transaction into more of a fixed cost. These costs are scalable and become a smaller cost per transaction as total transaction volumes grow across the company. Because Redfin is a low-cost provider, it has a relative advantage over traditional brokerages. No other real estate brokerage has lowered or attempted to lower the costs of transacting real estate in a similar way. This cost advantage provides Redfin with options about how to share these savings on each transaction. Redfin has primarily shared the cost savings with customers by charging lower commission rates than traditional brokerages. By offering a similar, if not superior, service to customers compared to other brokerages yet charging lower fees, it naturally attracts further demand which then provides Redfin with the ability to scale fixed costs per transaction even more, further widening their cost advantage to other brokerages. So far, the majority of those cost savings are shared with home sellers as opposed to homebuyers. Sellers are more price sensitive than homebuyers because the buyer’s commission is already baked into the seller’s contract and therefore buyers have not directly paid commissions to agents historically. Also, growing share of home listings is an important component of controlling the real estate transaction. The seller’s listing agent is the one who controls the property, decides who sees the house, and manages the offers and negotiations. Therefore, managing more listings enables Redfin to have more control over the transaction and further streamline/reduce inefficiencies for the benefit of both potential buyers and sellers. Redfin also spends some of their cost savings by reinvesting them back into the company by hiring software engineers to build better technology to continue to lower the cost of the transaction. This may include building tools for agents to service clients better, improving the web portal and user interfaces, on-demand tours for buyers to see homes first, automation to give homeowners an immediate RedfinNow offer, etc. Redfin also invests in building other business segments like mortgage, title forward, and iBuying which provide a more comprehensive real estate offering for customers which attracts further demand. So far, the lower costs per transaction have not been shared with shareholders in the form of dividends or share repurchases, and for good reason. In theory, Redfin could charge industry standard prices and increase revenue immediately by 30-40% which would drop straight to the bottom-line assuming demand would remain stable. However, giving customers most of the savings through lower commissions has obviously been one of the drivers for attracting demand and growing transaction volume, particularly for home sellers. The greater the number of transactions, the lower the fixed costs per transaction, which further increases Redfin’s cost advantage compared to traditional brokerages, which provides Redfin with even more money per transaction to share with either customers, employees, and eventually shareholders. With just over 1% market share, Redfin should be reinvesting in growing share which will increase the value of the business and inevitably benefit long-term owners of the company. Redfin’s stock price has experienced an especially large decline this year. I typically prefer to not attempt to place an explanation or narrative on short-term stock price movements, but I will do it anyways given the substantial drop. There are primarily two factors contributing to the market’s negative view of the company: first, the market currently dislikes anything connected to the real estate industry and second, the market currently has little patience for any company that reports net losses regardless of the underlying economics of the business. Real estate is currently a hated part of the market, and potentially for good reason. It is a cyclical industry, and the economy is potentially either entering or already in a recession. Interest rates are expected to continue to rise, negatively impacting home affordability, while an imbalance in the housing supply persists with historically low inventory available helping fuel an unsustainable rise in housing prices. From a macro industry-wide perspective, the real estate market will ebb and flow with the economy over time, but demand to buy, sell, and finance homes will always exist. I do not have the ability to determine how aggregate demand for buying or selling a home will change from year-to-year, but I do know that people have to live somewhere and if Redfin is able to help them find, buy or rent, and finance where they live better than alternative service providers, then the company will gain share and grow in value overtime. Redfin has also reported abnormally high losses of $91 million in the first quarter for which the current market has little appetite. It feeds the argument that Redfin does not have a sustainable business model. While losses can be a sign of unsustainable economics, that is not the case for Redfin. There are several factors that are all negatively hitting the income statement at the same time, and all should improve materially over the next year or two. Higher first quarter losses largely reflect: Agent Productivity: First quarter brokerage sales increased 7% year-over-year, but lead agent count increased 20%, which meant agents were less productive, leading to real estate gross profits declining $17 million from the prior year. Lower productivity was a result of a steeper ramp in agent hiring towards the end of the year against lower seasonal transaction volumes. It typically takes about six months for new agents to get trained and start closing transactions and then contributing to gross profits. Any accelerated hiring, particularly during a softer macro environment, will be a headwind while Redfin is paying upfront costs before any revenue is being generated. Further, closing transactions has been difficult particularly for buyers, which is where most new agents start. The housing market has been unbalanced where there is not enough inventory. A home for sale will typically receive many competing offers which makes it difficult for a buyer to win the deal. Since Redfin agents are mostly paid on commission (~20% salary plus the remainder being commission), it has been more difficult for new agents to earn a sufficient income in the current real estate environment. In response, Redfin started paying $1,500 retention bonuses for new agents who could guide customers to the point of bidding on a home, regardless of whether those bids win. While the bonus may impact gross profits in the near-term before a customer closes a transaction, it will not impact gross margins in the long-term when a transaction eventually takes place. Going forward, agent hiring will return to more normal rates and the larger number of new hires from recent quarters will ramp up which will improve productivity and gross profits. RentPath: Redfin bought RentPath out of bankruptcy for $608 million in April 2021, primarily to incorporate its rentals on its website which helps Redfin.com show up higher on Internet real estate searches. Prior to the acquisition, RentPath had no leadership direction for several years and declining sales and operating losses. RentPath had new management start in August 2021 and was integrated into Redfin.com in March. It finally started to see operational improvement with sales increasing in February and March year-over-year for the first time since 2019 despite a significant decrease in marketing expenses. While RentPath had $17 million in losses during the first quarter and is expected to have $22 million in losses in the second quarter, operations will improve going forward. Management made it clear that RentPath will be a contributor to net profits in its own right and not just a driver of site traffic and demand to Redfin’s brokerage business. Mortgage: A recent major development was the acquisition of Bay Equity for $135 million in April. Redfin was historically building out its mortgage business from scratch but after struggling to scale the operation decided to buy Bay Equity. Redfin was spending $13 million per a year on investing in its legacy mortgage business but going forward, mortgage will now be a net contributor to profits with Bay expected to provide $4 million in profit in the second quarter. The greater implication of having a scaled mortgage underwriter that is integrated with the real estate broker is that they can work together to streamline and expedite the transaction closing which has become an increasingly important value proposition for customers. Looking just a little further into the future, having a scaled and integrated mortgage underwriter can provide Redfin with the capability of providing buyers with the equivalent of an all-cash offer to sellers. Prospective homebuyers who offer all-cash offers to sellers are four times as likely to win the bid and sellers will often accept a lower price from an all-cash buyer vs. one requiring a mortgage. A common problem that many homeowners face is that when they are looking to move, it is difficult to get approved for a second mortgage while holding the current one. Much of their equity is locked in their current home. Frequently, a homebuyer wins an offer on a new home and then is in mad dash to sell their existing home in order to get the financing to work. It is not ideal to attempt to sell your home as fast as possible because it decreases the chance of getting the best price possible. A solution that Redfin could offer as a customer’s agent and underwriter is provide bridge financing between when a customer buys their new home and is then trying to sell their existing home and is therefore paying on two mortgages. Redfin would be able to make a reasonable appraisal for what a customer’s existing home will sell for (essentially what Redfin already does with iBuying) and underwriting the incremental credit exposure they are willing to provide the buyer. The buyer would then have “Redfin Cash” which would work like a cash offer. If this service helps buyers win a bid four times more often, it would even further differentiate Redfin’s value proposition and attract further demand. At least in the near-term, the mortgage segment will go from being a loss center to a contributor to net profits as well as further improving Redfin’s customer value proposition. Restructuring and transaction costs: Redfin had $6 million in restructuring expenses related to severance with RentPath and the mortgage business as well as closing the Bay Equity acquisition. $4 million in restructuring expenses are expected in the second quarter but these expenses will go away in future quarters. The combination of the above factors provided the headline $91 million net loss for the first quarter. Larger than normal losses between $60-$72 million are still expected in the second quarter. However, going forward losses are expected to continue to improve materially. While Redfin is not done investing in improving its service offerings, it should benefit from the significant investments it has already made over the last 16 years. Redfin has been building and supporting a nationwide business that only operated in parts of the country and had to incur large upfront costs. Going forward, it will benefit from the operating leverage baked into its cost structure with gross profits expected to grow twice as fast as overhead operating expenses. Redfin is expected to be cash flow breakeven in 2022 and provide net profits starting in 2024. Redfin has built a great direct to consumer acquisition tool that is unmatched by any real estate broker. It has spent the costs to acquire the customer and has now built out the different services to provide customers any of the real estate services that they may need, whether that is one or a combination of brokerage services, mortgage underwriting, title forward, iBuying, or rental search. Being able to monetize each customer that it has already acquired by offering them any of these services provides Redfin with a better return on customer acquisition costs that no other competitor is able to do to the same extent. Additionally, these real estate services work better when they are integrated under the same company. One does not have to dig very deep to see how attractive Redfin’s shares are currently priced. Shares are now selling around all-time historic lows since its IPO in August 2017. The prior all-time lows were reached during the COVID crash which was a time the world was facing an unknown pandemic that would shut down the economy and potentially put us through a great depression. At its current $1.2 billion market cap, Redfin is selling for 3x expected 2022 real estate gross profits, or 4x its current $1.7 billion enterprise value (excluding asset-based debt). Both are far below the historic average of 15x (which excludes peak multiples reached towards the end of 2020 and early 2021), or the previous all-time low of 6x reached in the depths of March 2020. If we assume Redfin can raise brokerage commissions by 30%, in line with traditional brokerage commission rates, and it does not lose business, Redfin would be able to provide ~20% operating margins. If we take a more conservative view and say Redfin can earn 10% net margins on its 2022 expected real estate revenues of $990 million, it would provide $99 million in net profits, providing a current 12x price-to-earnings ratio. This is for a company that has a long track record of being able to grow 20%+ a year on average, consistently gains market share each quarter, and has barely monetized its significant upfront investments and fixed costs with a long runway to continue to scale. This also does not place any value on its mortgage or iBuying segments which are now contributors to gross profits. There may be macro risks as well as other concerns today, however Redfin’s business and relative competitive advantage have never been stronger. The net losses reported are not representative of Redfin’s true underlying earning power. Redfin has untapped pricing power, an increasingly attractive customer value proposition, and a growing competitive advantage compared to alternative brokerages, which will help Redfin to continue to grow and take market share in what is a very large market. Conclusion Of course, the future can look scary, as it often does when headlines jump from one risk to the other. Despite what may be happening in the macro environment, our companies on average are stronger than they have ever been and are now selling for what we believe are the most attractive prices we have seen relative to their intrinsic value. I have no idea what shares will do in the near-term and I never will. Stock prices can swing wildly for many reasons, and sometimes seemingly for no reason at all. They can diverge, sometimes significantly from their true underlying value. I have no idea when sentiment will shift from optimism to pessimism and then back to optimism. This is what keeps us invested in both good times and in bad. The current selloff can continue further, but assuming our companies continue to execute over the coming years by winning market share and earning attractive returns on their investment spending, the market’s sentiment surrounding our portfolio companies will eventually reflect their underlying fundamentals. I will continue to look towards the longer-term operating results of our companies and not to the movements in their stock price as feedback to whether our initial investment thesis is playing out as expected. While the market can ignore or misjudge business success for a certain period, it eventually has to realize it. During times of greater volatility and periods of large drawdowns, I am reminded of how truly important the quality of our investor base is. It is completely natural to react in certain ways to rising or declining stock prices. It takes a very special investor base to look past near-term volatility and to trust us to make very important decision on their behalf as we continually try to increase the value of the Saga Portfolio over the long-term. As always, I am available to catch up or discuss any questions you may have. Sincerely, Joe Frankenfield Saga Partners Updated on May 16, 2022, 4:44 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMay 17th, 2022

AUTOCANADA REPORTS RECORD FIRST QUARTER RESULTS

Revenue was $1,342.4 million as compared to $969.8 million in the prior year, an increase of 38.4% and the highest first quarter revenue reported in the Company's history Net income for the period was $4.3 million versus $21.3 million in the prior year and includes a loss on extinguishment of embedded derivative of $(29.3) million and a loss on extinguishment of debt of $(9.9) million in Q1 2022 Adjusted EBITDA1 was $62.2 million versus $47.2 million in the prior year, an increase of 31.7%; normalized increase of 60.6% as compared to prior year normalized adjusted EBITDA1 of $38.7 million Adjusted EBITDA margin1 was 4.6% versus 4.9% in the prior year, a decrease of (0.3) percentage points; normalized increase of 0.6 percentage points as compared to prior year normalized adjusted EBITDA margin1of 4.0% Diluted earnings per share was $0.10, a decrease of $(0.61) from $0.71 in the prior year Indebtedness of $358.5 million at the end of Q1 2022 compares to $285.9 million at the end of Q4 2021 Net indebtedness1 of $248.8 million at the end of Q1 2022 compares to $212.7 million at the end of Q4 2021 EDMONTON, AB, May 4, 2022 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ), a multi-location North American automobile dealership group, today reported its financial results for the three month period ended March 31, 2022. "We opened 2022 with yet another record first quarter, reflecting ongoing positive momentum and our business as a whole continues to perform better than ever," said Paul Antony, Executive Chairman of AutoCanada. "Our Q1 results speak to the determination, agility and strength of our team, and the trend of sustainable improvement across all areas of our business. Continued strong performance from used vehicles, F&I, and our U.S. operations were key drivers in the quarter. "We continued to advance our acquisition strategy with the recent addition of the Audi Windsor and Porsche of London dealerships, further expanding our platform in Ontario while adding brand diversity and increasing the mix of luxury dealerships within our overall portfolio.  "Looking forward to the remainder of 2022, with our newly expanded executive team in place, we will continue to build on our strong momentum and focus on our strategic growth pillars to deliver industry-leading performance and enhance shareholder returns. We remain well positioned to continue to execute on our acquisition strategy in the coming quarters with several dealerships currently being evaluated. We also expect to see continued realization of synergies from our acquisitions which will further drive our 2022 Adjusted EBITDA performance." AutoCanada also announced today that Maryann Keller will be retiring from the Company's Board of Directors effective May 5, 2022. Mr. Antony continued, "On behalf of the Board and the management team at AutoCanada, I would like to thank Maryann for her dedication and capable guidance during her board tenure. Maryann has been with us since May 2015, including four years as our Lead Independent Director. Maryann has seen the Company through numerous critical transformations, leaving us with a strong foundation to pursue our growth strategy. We wish her all the best." 1    See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2    This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the three month period ended March 31, 2022 for further information regarding the composition of these measures. First Quarter Key Highlights and Recent Developments The Company set another first quarter record as revenue reached $1,342.4 million as compared to $969.8 million in the prior year, an increase of 38.4%. Record Q1 2022 results were driven by strong performance across all areas of our complete business model, in particular our used vehicle and finance and insurance ("F&I") business operations, and continued material improvements from our U.S. Operations. Net income for the period was $4.3 million, as compared to $21.3 million in Q1 2021, including a loss on extinguishment of embedded derivative of $(29.3) million and a loss on extinguishment of debt of $(9.9) million in Q1 2022. Diluted earnings per share was $0.10, an decrease of $(0.61) from $0.71 in the prior year. Adjusted EBITDA1 for the period was $62.2 million as compared to $47.2 million reported in Q1 2021, an improvement of 31.7%. Prior year results include $8.5 million of government assistance related to COVID. Excluding these typically non-recurring income items in the prior year, adjusted EBITDA1 of $62.2 million compares to normalized adjusted EBITDA1 of $38.7 million in the prior year, a normalized improvement of 60.6%. Adjusted EBITDA margin1 of 4.6% compares to normalized adjusted EBITDA margin1 of 4.0% in the prior year, an increase of 0.6 percentage points ("ppts"). Gross profit increased by $79.7 million to $247.3 million, an increase of 47.5%, as compared to prior year. This increase was largely driven by the increases of $13.6 million from used vehicles and $26.8 million from F&I. In addition, used retail vehicles2 sales increased by 4,338 units, up 44.6%, to 14,072, which contributed to the consolidated used to new retail units ratio2 moving to 1.55 from 1.18. F&I gross profit per retail unit average2 increased to $3,406, up 17.9% or $516 per unit. Gross profit percentage2 of 18.4% was a result of strong performance across all areas of the business and compares to 17.3% in the prior year. Our U.S. Operations continues to demonstrate strong growth and contributed $38.9 million of gross profit, an increase of $23.5 million or 152% as compared to prior year. This improvement in gross profit was driven by gains across all aspects of the business, resulting in a gross profit percentage of 18.4%. Proactive inventory management for both new and used vehicles continued to be a key driver to the Company's success in delivering both strong revenue and retail margin growth across all our business operations in the first quarter. We continue to manage our new vehicle inventory as the chip shortage remains an issue, particularly impacting new vehicle inventory supply. While we are gradually seeing improvements in both available new vehicle inventory and allocations, we are not expecting a return to "normalcy" in inventory levels until late 2023 to 2024. Compensating for reduced new vehicle supply, we more than doubled our used vehicle inventory position to $717.3 million as at March 31, 2022 as compared to $311.4 million in Q1 2021. Management continues to monitor the used vehicle market and actively manage our used vehicle inventory position to ensure it is appropriate to meet current market demand. Net indebtedness1 increased by $36.0 million from December 31, 2021 to $248.8 million at the end of Q1 2022. This increase is primarily driven by the repurchase and cancellation of $(31.2) million of shares under the authorized Normal Course Issuer Bid ("NCIB"). Free cash flow1 on a trailing twelve month ("TTM") basis was $93.6 million at Q1 2022 as compared to $144.6 million in Q1 2021; the decline in free cash flow1 between years was driven primarily by reduced government assistance in 2021, increased cash taxes, stock based compensation related cash payments, and changes in working capital. Additionally, our net indebtedness leverage ratio1 of 1.1x remained well below our target range at the end of Q1 2022, as compared to 0.7x in Q1 2021. Had all of the completed acquisitions, as identified in Section 5 Acquisitions, Divestitures, Relocations and Real Estate, occurred at April 1, 2021, consolidated pro forma net income would have been $155.7 million for the TTM ended March 31, 2022, as compared to consolidated pro forma net income of $174.8 million for the year ended December 31, 2021. Pro forma normalized adjusted EBITDA1 would be $282.4 million for the TTM ended March 31, 2022, as compared to pro forma normalized adjusted EBITDA1 of $266.4 million for the year ended December 31, 2021.  We remain well-positioned to continue to execute on our acquisition strategy in the coming quarters. We continue to develop a transaction pipeline with a number of dealerships currently being evaluated. The Company welcomed Jeffery Thorpe, President, Canadian Operations, Brian Feldman, Senior Vice President, Canadian Operations and Disruptive Technologies, and Lee Wittick, Senior Vice President, Operations and OEM Relations to the executive team April 2022 to continue to drive the Company's ongoing growth, synergies, and efficiencies. All three executive team members have significant industry expertise operating a dealership platform at scale using centralized services through head office, which closely mirrors AutoCanada's operating rhythm. With our 2022 strategic growth pillars and the new executive team in place, we are poised to demonstrate our best in class operations, and continue to grow our scalable and repeatable business model. Our performance, both in Canada and U.S. Operations, continues our trend of sustainable improvement and demonstrates the efficacy of our complete business model and strategic initiatives. We remain aware that uncertainty continues to exist in the macroeconomic environment given the ongoing challenges associated with the global pandemic and the Russia-Ukraine war. Uncertainties may include potential economic recessions or downturns, continued disruptions to the global automotive manufacturing supply chain, and other general economic conditions resulting in reduced demand for vehicle sales and service. We will continue to remain proactive and vigilant in assessing the impacts on our organization and remain committed to optimizing and building stability and resiliency into our business model to ensure we are able to drive industry-leading performance regardless of changing market condition. 1  See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2  This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the three month period ended March 31, 2022 for further information regarding the composition of these measures. Consolidated AutoCanada Highlights ANOTHER RECORD SETTING FIRST QUARTER AutoCanada delivered another record setting first quarter. Refer to Section 5 Acquisitions, Divestitures, Relocations and Real Estate of the Company's MD&A for the three month period ended March 31, 2022 for acquisitions included in Q1 2022 results. For the three-month period ended March 31, 2022: Revenue was $1,342.4 million, an increase of $372.6 million or 38.4% Total vehicles sold2 were 23,414, an increase of 4,707 units or 25.2% Used retail vehicles2 sold increased by 4,338 or 44.6% Net income for the period was $4.3 million (or $0.11 per basic share) versus $21.3 million (or $0.71 per diluted share) Loss on extinguishment of embedded derivative of $(29.3) million and loss on extinguishment of debt of $(9.9) million were recognized in Q1 2022 Adjusted EBITDA1 increased by 31.7% to $62.2 million, an increase of $15.0 million Adjusted EBITDA1 increased by 60.6% over prior year normalized adjusted EBITDA1 of $38.7 million, an increase of $23.5 million Adjusted EBITDA1 on a trailing twelve month basis was $266.8 million Net indebtedness1 of $248.8 million reflected an increase of $36.0 million from the end of Q4 2021 Canadian Operations Highlights OUTPERFORMED NEW RETAIL MARKET BY 6.6 PPTS, USED RETAIL UNIT2 SALES INCREASED BY 30% We outperformed the Canadian market, as same store new retail unit2 sales decreased by (6.8)% as compared to the market decrease of (13.4)%, for same store brands represented by AutoCanada as reported by DesRosiers Automotive Consultants ("DesRosiers"), an outperformance of 6.6 ppts. Our used vehicle and F&I segments were key drivers of the record earnings in Q1 2022. Used vehicle gross profit percentage2 increased to 7.0% as compared to 6.7% in the prior year. F&I gross profit per retail unit average2 increased to $3,368, up 12.7% or $379 per unit. Unless stated otherwise, all results for acquired businesses are included in all Canadian references in the MD&A. For the three-month period ended March 31, 2022: Revenue was $1,131.0 million, an increase of 30.9% Used retail vehicles2 sold increased by 2,620 or 29.6% Average TTM Canadian used retail unit2 sales per dealership per month, excluding Used Digital Retail Division dealerships2, improved to 54, as compared to 50 in the prior year Used to new retail units ratio2 increased to 1.50 from 1.29 TTM used to new retail ratio2 improved to 1.48 at Q1 2022 as compared to 1.01 at Q1 2021 F&I gross profit per retail unit average2 increased to $3,368, up 12.7% or $379 per unit Net loss for the period was $(1.0) million, down (104.8)% from a net income of $21.0 million in 2021 Loss on extinguishment of embedded derivative of $(29.3) million and loss on extinguishment of debt of $(9.9) million were recognized in Q1 2022 Adjusted EBITDA1 increased 23.6% to $53.4 million, an increase of $10.2 million Adjusted EBITDA1 increased by 33.1% over prior year normalized adjusted EBITDA1 of $40.1 million Adjusted EBITDA margin1 was 4.7% as compared to normalized adjusted EBITDA margin1 of 4.6% in the prior year, an increase of 0.1 ppts 1    See "NON-GAAP AND OTHER FINANCIAL MEASURES" below. 2    This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the three month period ended March 31, 2022 for further information regarding the composition of these measures. U.S. Operations Highlights REVENUE DOUBLED TO $211 MILLION U.S. Operations continues to improve under the new management team, as demonstrated by the fourth consecutive quarter of year-over year growth in adjusted EBITDA1. This growth was driven by improvements across all aspects of the business and resulted in a gross profit percentage of 18.4% and a 77.3% increase in total retail unit sales. Revenue was $211.4 million, an increase of 99%, from $106.0 million Used retail vehicles2 sold increased by 1,718 units or 192% F&I gross profit per retail unit average2 increased to $3,583 per unit, up 62.3% or $1,375 per unit Net income for the period increased by $5.0 million to $5.3 million, from $0.3 million Net income on a trailing twelve month basis was $22.1 million Adjusted EBITDA1 was $8.8 million as compared to $4.0 million, an increase of $4.8 million Normalized adjusted EBITDA1 for the prior year was $(1.4) million, resulting in a normalized increase of $10.2 million Adjusted EBITDA1 on a trailing twelve month basis was $36.0 million Same Store Metrics - Canadian Operations F&I GROSS PROFIT PER RETAIL UNIT AVERAGE2 INCREASED TO $3,702, UP 20% OR $617 PER UNIT We outperformed the Canadian market by 6.6 ppts as same store new retail units2 decreased by (6.8)% as compared to the market decrease of (13.4)%, for same store brands represented by AutoCanada as reported by DesRosiers. The continued optimization of the Company's complete business model is highlighted by the year-over-year 23.2% improvement in gross profit across each individual business segment which collectively totaled $179.6 million. Refer to Section 19 Same Stores Results Data of the Company's MD&A for the three month period ended March 31, 2022 for the definition of same store and further information. Revenue increased to $926.7 million, an increase of 17.2% Gross profit increased by $33.8 million or 23.2% Used to new retail units ratio2 increased to 1.46 from 1.19 Used retail unit2 sales increased by 14.0%, an increase of 1,144 units For the fourteenth consecutive quarter of year-over-year growth, F&I gross profit per retail unit average2 increased to $3,702, up 20.0% or $617 per unit; gross profit increased to $58.1 million as compared to $46.3 million in the prior year, an increase of 25.4% Parts, service and collision repair ("PS&CR") gross profit increased to $59.2 million, an increase of 17.3% PS&CR gross profit percentage2 decreased to 52.2% as compared to 54.6% in the prior year Financing and Investing Activities and Other Recent Developments ISSUED $350 MILLION SENIOR UNSECURED NOTES Net indebtedness1 of $248.8 million resulted in a net indebtedness leverage ratio1 of 1.1x. Financing and investing activities included the following: On January 12, 2022, S&P Global Ratings ("S&P") issued a research update and raised both the issuer credit rating and the Company's senior unsecured notes to 'B+'. On February 7, 2022, amended and extended our existing credit facility for total aggregate bank facilities of $1.3 billion, with a maturity date of April 14, 2025. On February 7, 2022, issued $350 million of Senior Unsecured Notes at 5.75%, due February 7, 2029, with the proceeds used to fund the redemption of the outstanding $250 million 8.75% Senior Unsecured Notes due February 11, 2025, to reduce the outstanding balance under its syndicated credit facility and for general corporate purposes including acquisitions. On May 2, 2022, the Company acquired substantially all of the assets used in or relating to the Audi Windsor and Porsche of London dealerships, located in London and Windsor, Ontario, respectively. The acquisition supports management's strategic objectives of further establishing the Company's presence in the province of Ontario, increasing both brand diversity and luxury mix within our portfolio. The acquisition included the underlying real estate for both dealerships. On May 4, 2022, the Company entered into an arrangement with the Bank of Nova Scotia to provide non-recourse mortgage financing for a previously purchased property in Maple Ridge, BC. The non-recourse mortgage arrangement will fund land value as well as construction costs associated with the development of two dealerships. The non-recourse mortgage is secured by the real estate as collateral. The credit facility allows for up to $100 million of non-recourse mortgage financing. The non-recourse mortgage liability is not considered a liability for purposes of calculating our credit facility financial covenants. 1   See "NON-GAAP AND OTHER FINANCIAL MEASURES" below.  2     This press release contains "SUPPLEMENTARY FINANCIAL MEASURES". See Section 15. NON-GAAP AND OTHER FINANCIAL MEASURES of the Company's Management's Discussion & Analysis (MD&A) for the three month period ended March 31, 2022 for further information regarding the composition of these measures.   First Quarter Financial Information The following table summarizes the Company's performance for the quarter: Three Months Ended March 31 Consolidated Operational Data 2022 2021 % Change Revenue 1,342,438 969,824 38.4% Gross profit 247,339 167,636 47.5% Gross profit % 18.4% 17.3% 1.1% Operating expenses 193,646 127,948 51.3% Operating profit 56,690 41,664 36.1% Net income for the period 4,322 21,334 (79.7)% Basic net income per share attributable to AutoCanada shareholders 0.11 0.77 (85.7)% Diluted net income per share attributable to AutoCanada shareholders 0.10 0.71 (85.9)%    Adjusted EBITDA1 62,196 47,234 31.7%    New retail vehicles2 sold (units) 9,052 8,233 9.9%    New fleet vehicles2 sold (units) 290 740 (60.8)%    Total new vehicles2 sold (units) 9,342 8,973 4.1%    Used retail vehicles2 sold (units) 14,072 9,734 44.6%    Total vehicles2 sold 23,414 18,707 25.2%    Same store new retail vehicles2 sold (units) 6,383 6,848 (6.8)%    Same store new fleet vehicles2 sold (units) 264 739 (64.3)%    Same store used retail vehicles2 sold (units) 9,306 8,162 14.0%    Same store total vehicles2 sold 15,953 15,749 1.3%    Same store2 revenue 926,660 790,798 17.2%    Same store2 gross profit 179,559 145,799 23.2%    Same store2 gross profit % 19.4% 18.4% 1.0%   SELECTED QUARTERLY FINANCIAL INFORMATION The following table shows the unaudited results of the Company for each of the eight most recently completed quarters. The results of operations for these periods are not necessarily indicative of the results of operations to be expected in any given comparable period. MD&AFootnote Reference3 Q1 2022 Q4 2021 Q3 2021 REVISED Q2 2021 REVISED Q1 2021 REVISED Q4 2020 Q3 2020 Q2 2020 Income Statement Data 4     New vehicles 4 7 511,195 467,085 498,142 547,593.....»»

Category: earningsSource: benzingaMay 4th, 2022

Ensign Group (ENSG) Ups Credit Facility to $600M to Fuel Growth

Ensign Group (ENSG) expands its credit facility by $250 million to continue with its series of acquisitions, renovation of projects, business requirements et al. The Ensign Group, Inc. ENSG and its subsidiaries recently hiked their credit facility by $250 million, leading to a total of $600 million. In this regard, it should be noted that the same was supported by a lending consortium arranged by Truist Securities.This new facility will mature on Apr 8, 2027. It even consists of a $400-million incremental expansion option among other things. The skilled nursing operator will utilize the funds for its upcoming pipeline of buyouts, renovation of current and future facilities, other business requirements, et al. The proceeds are also expected to cater to ENSG’s working capital needs, per management.Ensign Group has always been aggressive when it comes to maintaining its solvency level. The new credit facility was required for additional flexibility, given the current evolving nature of the healthcare sector. This helped it continue with its acquisitions. In the fourth quarter of 2021, ENSG successfully added 17 operations to its portfolio.It is nothing new for this hospital company to actively seek transactions to acquire real estate and lease both well-performing and struggling skilled nursing, assisted living and other healthcare-related businesses in new and existing markets. ENSG bought 278 facilities from January 2011 through December 2021.Ensign Group continues to pursue its acquisition spree in 2022 as well.ENSG now has a portfolio of 252 healthcare operations, 25 of which include senior living operations across 13 states. ENSG owns 103 real-estate assets.Its total debt is 13.3% of its capital, much lower than the industry’s average of 79.5%. Also, its times interest earned stands at 38.67X, which came against the industry’s negative average of 0.8X. As of Dec 31, 2021, it had $262.2 million of cash and cash equivalents, up 10.8% from the level at 2020 end, and a revolving line of credit of up to $350 million in available capacity, much higher than its long-term debt less current maturities of $152.8 million. This proves its balance sheet strength, which is required for carrying out growth-related investments.Zacks Rank and Price PerformanceIn the past six months, its shares have gained 13.3%, outperforming the industry's growth of 10.7%.Image Source: Zacks Investment ResearchENSG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Key PicksSome better-ranked stocks from the Medical space are Compugen Ltd. CGEN, Humana, Inc. HUM and Centene Corporation CNC, all carrying a Zacks Rank #2 (Buy) at present.Based in Holon, Israel, Compugen develops therapeutic and product candidates in the United States, Israel and Europe. In the last four quarters, CGEN’s earnings beat estimates thrice and met the same once, the average surprise being 22%. Shares of CGEN have lost 60.1% in six months’ time.Humana is one of the largest health care plan providers in the United States. Over the past seven days, HUM has witnessed its 2022 and 2023 earnings estimates move 0.1% and 0.03%, respectively. HUM’s earnings managed to surpass estimates in all its trailing four quarters, the average being 3.10%. HUM has a VGM Score of B. The stock has gained 3.2% in the past six months.Centene Corporation is a well-diversified, multi-national healthcare company that primarily provides a set of services to the government sponsored healthcare programs. CNC holds a VGM Score of A. Over the past seven days, CNC has witnessed its 2022 earnings estimates move 0.2% north. Over the past six months, CNC has gained 35.7%.  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report Compugen Ltd. (CGEN): Free Stock Analysis Report The Ensign Group, Inc. (ENSG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksApr 13th, 2022

Aaron"s (AAN) BrandsMart Buyout to Boost Sales & Customer Base

Aaron's (AAN) announces the completion of its BrandsMart acquisition for $230 million. This will solidify AAN's market position and help widen the customer base. The Aaron's Company, Inc. AAN is benefiting from its robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in the GenNext stores. Recently, management cited that AAN concluded its earlier-announced buyout of BrandsMart U.S.A. (BrandsMart), a renowned appliance and consumer electronics retailer. Aaron’s acquired BrandsMart for $230 million in cash.This buyout facilitates Aaron’s offer its customers high-quality furniture, appliances, electronics and other home goods on affordable lease and retail purchase options. This will strengthen AAN’s market position and help expand the customer base.Management highlighted that the consolidated business will generate solid revenues and a double-digit annual adjusted EBITDA growth in five years and beyond. With respect to the completion of the BrandsMart buyout, Aaron's replaced the $250-million unsecured revolving credit facility with a new one. The latest credit facility comprises an unsecured $375 million revolving credit facility and a five-year $175 million unsecured term loan.On Feb 23, Aaron’s informed that it inked a deal to buy BrandsMart. Management had then anticipated total annual revenues of more than $3 billion and an adjusted EBITDA of above $300 million from this transaction by 2026. Founded in 1977, BrandsMart delivered revenues of $757 million and an adjusted EBITDA of $46 million during the 12 months ended Dec 25, 2021.What’s More?Aaron’s is consistently witnessing strength in its e-commerce platform even after stores reopened. In fourth-quarter 2021, e-commerce lease revenues were up 13%, accounting for 14.6% of the total revenues. The uptick can be attributed to increased investments in digital marketing, an improved shopping experience, same-day and next-day delivery facilities, personalization of products and a broader assortment, including the latest product categories. Its express delivery program also bodes well.Aaron’s GenNext real-estate strategy also appears encouraging. These GenNext concept stores come with larger, brighter and easier-to-navigate main showrooms offering new furniture, appliances as well as electronics. The stores also feature an expanded assortment and payment methods, and enhanced shopping experience.This currently Zacks Rank #3 (Hold) stock has gained 3.2% in the past six months against the industry’s 6.1% dip.Eye These Solid PicksSome better-ranked stocks in the broader Consumer Discretionary space are Gildan Activewear GIL, Delta Apparel DLA and Columbia Sportswear COLM.Gildan Activewear flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Gildan Activewear’s 2022 sales and earnings per share (EPS) suggests growth of 8.9% and 3.3%, respectively, from the corresponding year-ago reported figures. GIL has a trailing four-quarter earnings surprise of 66.6%, on average.Delta Apparel currently carries a Zacks Rank #2 (Buy). DLA has a trailing four-quarter earnings surprise of 21.3%, on average.The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and EPS suggests growth of 12.3% and 19.1%, respectively, from the corresponding year-ago reported numbers.Columbia Sportswear currently has a Zacks Rank of 2. COLM has a trailing four-quarter earnings surprise of 203.3%, on average.The Zacks Consensus Estimate for Columbia Sportswear's current financial-year sales suggests growth of 17.7% while the same for EPS indicates a rise of 8.1% from the respective year-ago  reported figures. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buysAccess Zacks Top 10 Stocks for 2022 today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Aaron's Company, Inc. (AAN): Free Stock Analysis Report Columbia Sportswear Company (COLM): Free Stock Analysis Report Gildan Activewear, Inc. (GIL): Free Stock Analysis Report Delta Apparel, Inc. (DLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksApr 4th, 2022

Carlyle (CG) Rides on Organic Growth, Rising Expenses Ail

Carlyle's (CG) organic growth, backed by increasing AUM balance and fund management fees, is a positive. Yet, a rise in expenses and competition for investment opportunities are concerning. The Carlyle Group CG is growing organically though its increasing assets under management (“AUM”) balance and fund management fees. The company’s strong liquidity and sustainable capital deployment are positives as well. However, a rise in expenses and competition for investment opportunities are concerning.Carlyle has been witnessing solid organic growth as indicated by revenues that grew at a compound annual growth rate (CAGR) of 61.3% over the last three years (ended 2021). Moreover, its focus on expanding the scale of investment platforms, building out infrastructure and real estate credit, foraying into new avenues, and institutionalizing the firm to drive higher incremental margins might support the uptrend in revenues in the future.Further, Carlyle’s fee-earning AUM and total AUM consistently demonstrate strong growth, aided by decreasing net outflows. Over the last three years (2019-2021), fee-earning AUM witnessed a CAGR of 9.6% and total AUM recorded a CAGR of 15.8%. The company’s global presence and efforts to expand its business are likely to continue aiding AUM growth.As of Dec 31, 2021, Carlyle had total debt worth $2.07 billion. Nonetheless, as of the same date, it held $2.5 billion of cash and had full availability under a $775-million revolving credit line. Thus, with sound liquidity and a manageable debt level, the company is expected to be able to meet its near-term debt obligations even if the economic situation worsens.Also, the company’s capital-deployment activities seem impressive. In February 2022, its board of directors approved a hike in dividend, increasing the total to an annual rate of $1.30 per share. The dividend is scheduled to be paid in May 2022. Also, as of Dec 31, 2021, $38.2 million of repurchase capacity remained available under the share repurchase program. Such capital-deployment activities seem sustainable, given the company’s strong balance sheet position and consistent earnings strength.However, Carlyle has been witnessing a persistent rise in expenses over the past few years. The company’s costs witnessed a CAGR of 49.8% in the last three years (ended 2021). We believe that such escalating costs might weigh on its expense base to some extent in the upcoming quarters and hinder bottom-line growth.Also, Carlyle competes with a broad spectrum of regional and global financial institutions and markets for investment opportunities and investors. Competition is particularly stiff in the emerging markets where local firms tend to have more prominent relationships with the companies in which Carlyle targets to invest.This apart, greater reliance on advisory firms or in-house investment management may reduce fund of funds’ appeal to large institutional investors. As Carlyle continues to target high net worth investors, it also faces competition from mutual funds and investment firms that have competing products.Currently, Carlyle carries a Zacks Rank #3 (Hold). Over the past year, shares of the company have gained 27.2% compared with 7.4% growth recorded by the industry.Image Source: Zacks Investment ResearchFinance Stocks to ConsiderSome better-ranked stocks in the finance space are Bank of Hawaii BOH, First Business Financial Services FBIZ, and PCB Bancorp PCB. At present, Bank of Hawaii, FBIZ and PCB carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Over the past six months, shares of PCB have jumped 17.5%, whereas FBIZ and BOH stocks have rallied 16.4 and 3.1%, respectively.Over the past 30 days, the Zacks Consensus Estimate for First Business’ current-year earnings has been revised marginally upward, while the same for PCB Bancorp and Bank of Hawaii has stayed constant. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Business Financial Services, Inc. (FBIZ): Free Stock Analysis Report Carlyle Group Inc. (CG): Free Stock Analysis Report Bank of Hawaii Corporation (BOH): Free Stock Analysis Report PCB Bancorp (PCB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMar 29th, 2022

Why Is Realty Income Corp. (O) Up 2.5% Since Last Earnings Report?

Realty Income Corp. (O) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Realty Income Corp. (O). Shares have added about 2.5% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Realty Income Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Realty Income Tops Q4 FFO, Makes Record InvestmentsRealty Income’s fourth-quarter 2021 adjusted FFO per share of 94 cents surpassed the Zacks Consensus Estimate of 93 cents. The reported figure also compares favorably with the prior-year quarter’s 84 cents.Results reflect a better-than-expected improvement in revenues. This retail REIT is enhancing its global platform and during the fourth quarter, excluding its merger with VEREIT, it invested $2.63 billion in 401 properties and properties under development or expansion, including $1.04 billion in Europe.According to Sumit Roy, Realty Income's president and chief executive officer, “In addition to closing our merger with VEREIT, we expanded our global platform through our investment in Spain, a new growth vertical in Continental Europe. To that end, we invested a record $2.6 billion in high-quality real estate during the fourth quarter. This brings 2021 property-level acquisitions to $6.4 billion, setting an annual record for the company.”Total revenues for the reported quarter came in at $685 million, exceeding the Zacks Consensus Estimate of $592.3 million. The top line also jumped 64% year over year.Realty Income also apprised of its rental receipts through Dec 31, 2021 and noted that it collected 99.5% of the contractual rent due for the fourth quarter across its total portfolio. Further, O collected 99.8% of the contractual rent due for the fourth quarter from the top 20 tenants and 99.8% of the contractual rent from its investment-grade tenants. The company collected 100.0% of the contractual rent due for the fourth quarter from theater clients and 96.7% of the contractual rent from its health and fitness clients.Quarter in DetailDuring the fourth quarter of 2021, same-store rental revenues on 6,046 properties under lease increased 4.9% to $369.4 million from the prior-year period. Portfolio occupancy of 98.5%, as of Dec 31, 2021, shrank 30 basis points (bps) sequentially but rose 60 bps year over year. The company generated a rent recapture rate of 101.8% on re-leasing activity.During the reported quarter, excluding its merger with VEREIT, Realty Income invested $2.63 billion in 401 properties and properties under development or expansion, including $1.04 billion in Europe.Around 35% of rental revenues reaped from acquisitions during the December-end quarter came in from investment grade-rated tenants, their subsidiaries or affiliated companies.The company sold 58 properties, generating net proceeds of $126.8 million with a gain on sales of $20.4 million, during the October-December period.The theater industry, which represented 3.4% of annualized contractual rental revenues for Realty Income as of Dec 31, 2021, has been subject to disruptions due to the pandemic, raising concerns about the collectability of rents. As of Dec 31, 2021, this REIT was fully reserved for outstanding receivable balances for 34 theater properties. As of Dec 31, 2021, the receivables outstanding for its 81 theater properties aggregated $71.0 million.Balance SheetRealty Income exited 2021 with cash and cash equivalents of $258.6 million, down from $824.5 million witnessed at the end of 2020.As of Dec 31, 2021, the balance of borrowings outstanding under its revolving credit facility was $650.0 million. Also, as of that date, O had $901.4 million in commercial paper borrowings.Net debt to annualized pro forma adjusted EBITDAre was 5.3X, while the fixed charge coverage ratio was 5.6.During the fourth quarter, the company raised $1.72 billion from the sale of common stock at a weighted average price of $69.07 per share, mainly through its At-The-Market Program.GuidanceManagement projects 2022 adjusted FFO per share of $3.84 to $3.97.Management’s full-year 2022 projections assume same-store rent growth of 1.5% and occupancy of 98%. O expects full-year acquisition volume of more than $5.0 billion.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresCurrently, Realty Income Corp. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, Realty Income Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buysAccess Zacks Top 10 Stocks for 2022 today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Realty Income Corporation (O): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksMar 24th, 2022

Lennar"s Q1 2022 Operating Performance Reflects Continued Strength in the Housing Market

Net earnings per diluted share were $1.69 ($2.70, excluding mark-to-market losses on technology investments) Net earnings were $503.6 million ($800.2 million, excluding mark-to-market losses on technology investments) Revenues increased 16% to $6.2 billion Deliveries increased 2% to 12,538 homes New orders increased 1% to 15,747 homes; new orders dollar value increased 19% to $7.8 billion Backlog increased 24% to 27,335 homes; backlog dollar value increased 43% to $13.6 billion Homebuilding operating earnings increased to $1.1 billion, compared to operating earnings of $0.8 billion Gross margin on home sales improved 190 basis points ("bps") to 26.9% S,G&A expenses as a % of revenues from home sales improved 90 bps to 7.5% Net margin on home sales improved 280 bps to 19.4% Financial Services operating earnings of $90.8 million, compared to operating earnings of $146.2 million Multifamily operating earnings of $5.4 million, compared to operating loss of $0.9 million Lennar Other operating loss of $403.1 million, compared to operating earnings of $471.3 million Homebuilding cash and cash equivalents of $1.4 billion Controlled homesites increased to 58%, compared to 45% No borrowings under the Company's $2.5 billion revolving credit facility Homebuilding debt to total capital improved to 18.3%, compared to 24.0% Repurchased 5.3 million shares of Lennar common stock for $526.3 million Received Board approval for a new $2 billion stock repurchase authorization MIAMI, March 16, 2022 /PRNewswire/ -- Lennar Corporation (NYSE:LEN), one of the nation's leading homebuilders, today reported results for its first quarter ended February 28, 2022. First quarter net earnings attributable to Lennar in 2022 were $503.6 million, or $1.69 per diluted share, compared to first quarter net earnings attributable to Lennar in 2021 of $1.0 billion, or $3.20 per diluted share. Excluding mark-to-market gains and losses in both years, first quarter net earnings attributable to Lennar in 2022 were $800.2 million or $2.70 per diluted share, compared to first quarter net earnings attributable to Lennar in 2021 of $642.7 million, or $2.04 per diluted share. Stuart Miller, Executive Chairman of Lennar, said, "Our core operating performance in the first quarter reflects the continued strength in the housing market across the country. Our sales pace remained strong and consistent throughout the quarter, while strong traffic to our welcome home centers and website suggests that demand remains strong for the foreseeable future. While our new orders grew a controlled 1% compared to last year's first quarter, we achieved a homebuilding gross margin of 26.9% and homebuilding SG&A of 7.5%, leading to a 19.4% net margin. Both gross margin and net margin remained strong, even as materials costs and wages have increased, and home prices have continued to rise while remaining affordable even as interest rates have ticked up. Deliveries, though constrained by the supply chain disruption, were in line with the guidance given at the beginning of the quarter. "Clearly the volatility imbedded in our LENX investments have skewed our bottom line performance as we report first quarter earnings of $503.6 million, or $1.69 per diluted share, compared to $1.0 billion or $3.20 per diluted share for the first quarter last year. Excluding the significant upward impact last year and downward impact this quarter from these investments, first quarter 2022 earnings were $800.2 million, or $2.70 per diluted share, compared to $642.7 million or $2.04 per diluted share for the first quarter last year. "While our LENX investment strategy creates some volatility in our results, it nevertheless remains core to the future of our operating platform. Our LENX investments continue to provide significant operational efficiencies for both our homebuilding and financial services platforms, which flow through to our strong operating margins while vastly improving our homebuyers' experience."  Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "During the first quarter, our community count increased 4% year over year as we continued to make excellent progress on our land light strategy. This was evidenced by our controlled homesite percentage increasing to 58% from 45% for those same periods. We ended the quarter with $1.4 billion in cash, no borrowings on our $2.5 billion revolver and homebuilding debt to capital of 18.3%. We repurchased 5.3 million shares of our common stock for $526 million. These buybacks, combined with our significant earnings, contributed to a return on equity of 19.5%, a 180 basis point improvement over last year's first quarter." Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be intensely focused on production, even while our cycle time expanded about two weeks from the fourth quarter driven by the well documented, supply chain issues. The impact of supply chain issues and increased cycle times were partially offset by accelerated construction starts. We continue to strategize with our national supply vendors and local trades to minimize these ever changing challenges and are confident that we will successfully navigate through these unique dynamics. Our quarterly starts and sales pace remained strong and consistent at 4.7 homes and 4.3 homes per community, respectively, in the first quarter." Mr. Miller concluded, "The housing industry continues to exhibit strong demand, outweighing supply, and we are confident that we will continue to generate solid growth and enhance our current market position. As we look ahead to our second quarter and consider the industry supply chain issues already noted, we expect to deliver between 16,000 to 16,300 homes while we expect homebuilding gross margins to be between 28.0% – 28.25%. For the full year, we are increasing our guidance on both deliveries and gross margin. We expect to deliver about 68,000 homes (up from our prior guidance of 67,000) while we expect homebuilding gross margins to be between 27.25% – 28.0% (up from 27.0% – 27.5%). Overall, we are operating from a position of strength with an excellent balance sheet enabling us to continue to execute on our core strategies." RESULTS OF OPERATIONS THREE MONTHS ENDED FEBRUARY 28, 2022 COMPARED TO THREE MONTHS ENDED FEBRUARY 28, 2021 Homebuilding Revenues from home sales increased 17% in the first quarter of 2022 to $5.7 billion from $4.9 billion in the first quarter of 2021. Revenues were higher primarily due to a 2% increase in the number of home deliveries to 12,538 homes from 12,314 homes and a 15% increase in the average sales price to $457,000 from $398,000. Gross margin on home sales were $1.5 billion, or 26.9%, in the first quarter of 2022, compared to $1.2 billion, or 25.0%, in the first quarter of 2021. During the first quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher lumber costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of our focus on reducing debt. Selling, general and administrative expenses were $428.5 million in the first quarter of 2022, compared to $410.2 million in the first quarter of 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.5% in the first quarter of 2022, from 8.4% in the first quarter of 2021. This was the lowest percentage for a first quarter in the Company's history primarily due to a decrease in broker commissions and benefits of the Company's technology efforts. Financial Services Operating earnings for the Financial Services segment were $90.8 million in the first quarter of 2022, compared to $146.2 million in the first quarter of 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market. Other Ancillary Businesses Operating earnings for the Multifamily segment were $5.4 million in the first quarter of 2022, compared to an operating loss of $0.9 million in the first quarter of 2021. Operating loss for the Lennar Other segment was $403.1 million in the first quarter of 2022, compared to operating earnings of $471.3 million in the first quarter of 2021. Lennar Other operating loss in the first quarter of 2022 and Lennar Other operating earnings in the first quarter of 2021 was due to unrealized mark-to-market losses and gains, respectively, on the Company's publicly traded technology investments. Tax Rate For the three months ended February 28, 2022 and 2021, the Company had a tax provision of $167.4 million and $310.1 million, respectively, which resulted in an overall effective income tax rate of 25.0% and 23.6%, respectively. In the three months ended February 28, 2022, the overall effective income tax rate was higher primarily due to the expiration of the new energy efficient home tax credit. Shares Repurchases and New Authorization During the three months ended February 28, 2022, the Company repurchased 5.3 million shares of its common stock for $526.3 million at an average per share price of $99.90. On March 16, 2022, the Company's Board of Directors increased the authorization for the Company to repurchase its own shares from time to time by $2 billion. The repurchase authorization has no expiration date. Liquidity At February 28, 2022, the Company had $1.4 billion of Homebuilding cash and cash equivalents and no borrowings under its $2.5 billion revolving credit facility, thereby providing $3.9 billion of available capacity. 2022 Guidance The following are the Company's expected results of its homebuilding and financial services activities for the second quarter and fiscal year 2022: Second Quarter 2022 Fiscal Year 2022 New Orders 17,800 - 18,200 Deliveries 16,000 - 16,300 About 68,000 Average Sales Price About $470,000 $470,000 - $475,000 Gross Margin % on Home Sales 28.0% - 28.25% 27.25% - 28.0% S,G&A as a % of Home Sales 6.8% - 7.0% 6.6% - 6.8% Financial Services Operating Earnings $90 million - $100 million $440 million - $450 million About Lennar Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com. Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials, including lumber, and labor; cost increases related to real estate taxes and insurance; reduced availability or increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2021. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. A conference call to discuss the Company's first quarter earnings will be held at 11:00 a.m. Eastern Time on Thursday, March 17, 2022. The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-0110 and entering 5723593 as the confirmation number.   LENNAR CORPORATION AND SUBSIDIARIES Selected Revenues and Operating Information (In thousands, except per share amounts) (unaudited) Three Months Ended February 28, 2022 2021 Revenues: Homebuilding $       5,752,205 4,943,056 Financial Services 176,701 244,069 Multifamily 267,359 131,443 Lennar Other 7,251 6,900 Total revenues $       6,203,516 5,325,468 Homebuilding operating earnings $       1,109,850 833,180 Financial Services operating earnings 90,791 146,207 Multifamily operating earnings (loss) 5,427.....»»

Category: earningsSource: benzingaMar 16th, 2022

Here"s Why You Should Hold Reinsurance Group (RGA) Stock

Reinsurance Group (RGA) is poised to benefit from higher variable investment income, higher business volume on new and existing treaties as well as a solid cash position. Reinsurance Group of America, Incorporated’s RGA has been witnessing favorable claims experience, higher business volume, organic growth, new sales and effective capital deployment.Growth ProjectionsThe Zacks Consensus Estimate for Reinsurance Group’s 2022 earnings per share is pegged at $13.49, indicating a year-over-year increase of 250.4%.Zacks Rank & Price PerformanceReinsurance Group currently carries a Zacks Rank #3 (Hold). The stock has lost 4.9% in the past year, compared with the industry’s decrease of 7.9%.Image Source: Zacks Investment ResearchStyle ScoreReinsurance Group is well poised for progress, as is evident from its favorable VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.Business TailwindsIts Asia Pacific business is likely to gain from favorable claims experience, continued growth of Financial Solutions Reinsurance, higher investment income and investment-related gains. Contributions from recently executed asset-intensive transactions in Asia should benefit the top line of the Asia Pacific business.Higher variable investment income from investments in limited partnerships, real estate joint venture sales and new Financial Solutions transactions should benefit earnings before income taxes of U.S. and Latin America Operations. The top line of this segment is likely to gain from organic growth as well as new sales and higher variable investment income associated with investments in limited partnerships and private equity funds.The EMEA segment business is well-poised to gain from higher business volume on new and existing treaties, increased volumes of closed longevity block business and higher investment income on fixed-income securities and lifetime mortgages.In December 2021, Reinsurance Group completed the longevity reinsurance transaction with Aegon Netherlands to enhance the growth in the longevity business in continental Europe.Reinsurance Group boasts a solid capital position and sufficient financial flexibility. RGA’s excess capital position at third-quarter end was around $1 billion. Moreover, the insurer has access to an $850 million syndicated revolving credit facility. Leverage ratios remained well within the targeted range.Given its prudent capital management policy, Reinsurance Group undertakes shareholder-friendly moves. In the third quarter of 2021, it approved a dividend hike of 4%. RGA deployed $140 million into in-force transactions and repurchased shares for $46 million. Also, the life insurer generated $94 million of capital through an asset-intensive retrocession transaction that enhanced the returns.The insurer’s global platform, robust balance sheet and effective capital management strategy have played an important role in driving its success and positions it well for profitable growth.Stocks to ConsiderSome better-ranked stocks from the insurance space are Brighthouse Financial BHF, CNO Financial Group CNO and First American Financial FAF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Brighthouse Financial’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 67.61%. In the past year, Brighthouse Financial has surged 37.9%. The Zacks Consensus Estimate for BHF’s 2022 earnings has moved 0.6% north in the past 60 days.CNO Financial’s earnings surpassed estimates in three of the last four quarters, the average beat being 13.19%. In the past year, CNO has gained 6.4%. The Zacks Consensus Estimate for CNO Financial’s 2022 earnings has moved 2% north in the past 60 days.First American’s earnings surpassed The Zacks Consensus Estimate in each of the last four quarters, the average beat being 29.19%. In the past year, First American has rallied 44.9%. The Zacks Consensus Estimate for FAF’s 2022 earnings has moved 0.4% north in the past 30 days. Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through November, the Zacks Top 10 Stocks gained an impressive +962.5% versus the S&P 500’s +329.4%. Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.Be First To New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNO Financial Group, Inc. (CNO): Free Stock Analysis Report First American Financial Corporation (FAF): Free Stock Analysis Report Reinsurance Group of America, Incorporated (RGA): Free Stock Analysis Report Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 6th, 2022

Chicago Atlantic Real Estate Extends Senior Secured Credit To Michigan"s MEDfarms

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI), a commercial real estate finance company that manages a diversified portfolio of real estate credit investments in the cannabis space, announced on January 3 that it acted as sole lender on a new senior secured credit facility for MEDfa read more.....»»

Category: blogSource: benzingaJan 4th, 2022

Acadia (ACHC) Buys CenterPointe Assets, Boosts Missouri Footprint

Acadia Healthcare (ACHC) acquires the assets of Missouri-based CenterPointe Behavioral Health System in order to offer high-quality behavioral healthcare services across the state. Acadia Healthcare Company, Inc. ACHC recently closed the buyout of the leading Missouri-based behavioral healthcare provider CenterPointe Behavioral Health System. The purchased assets of CenterPointe comprise four inpatient hospitals (equipped with 260 acute care beds and 46 specialty beds for substance use) and 10 outpatient locations.Anticipated to be immediately accretive to Acadia Healthcare’s financial results, the transaction was financed by utilizing cash on hand and the borrowing capacity of ACHC’s revolving credit facility.The latest move highlights Acadia Healthcare’s collaborative approach to boost service offerings, provide enhanced patient care and expand its service accessibility to more patients. This, in turn, is anticipated to strengthen Acadia Healthcare’s presence in Missouri, which presents alluring prospects for acquisition deals. The recent development reflects ACHC’s efforts to bolster its foothold in high-growth markets. CenterPointe seems to be an apt choice for complementing Acadia Healthcare’s endeavors as the former operates behavioral health networks and boasts an expansive presence throughout Missouri.ACHC is committed to a prudent capital allocation framework for pursuing a growth strategy. Acadia Healthcare has been undertaking buyouts in numerous markets, which have added facilities, beds and hospitals to the company’s network. Following the acquisition of facilities and programs, ACHC undertakes further investments in a bid to broaden the facilities and introduce service offerings to address the solid demand for behavioral healthcare services. These buyouts provide added scale and cost savings to ACHC.In December 2021, Acadia Healthcare purchased the real estate of three non-operational facilities in Illinois to penetrate deeper into the greater Chicago region. In the beginning of 2021, ACHC acquired the 61-bed psychiatric hospital named Adventist Health Vallejo to cater to the behavioral health needs across Solano County.Apart from the buyouts, ACHC remains keen on entering into joint ventures (JVs) with established healthcare organizations. These efforts have not only bolstered the capabilities and treatment network of Acadia Healthcare but also enabled the healthcare provider to reach out to underserved communities. As of Sep 30, 2021, ACHC’s portfolio comprises 230 behavioral healthcare facilities across 40 states and Puerto Rico.The tie-up with Minnesota-based Fairview Health Services in December 2021 marked the 16th JV by Acadia Healthcare. In the same month, ACHC formed a JV with SCL Health for building a 144-bed freestanding behavioral health unit in the Denver area.Pursuing growth-related initiatives in the form of buyouts or JVs are not only beneficial to Acadia Healthcare but also to all of the United States, which has been grappling with the persistent incidence of behavioral health issues for quite some time. The resurgence of coronavirus cases with the advent of each new variant only highlights the dire need for accessible and improved behavioral healthcare services.Apart from Acadia Healthcare, healthcare providers like HCA Healthcare, Inc. HCA, Universal Health Services, Inc. UHS and Humana Inc. HUM offer high-quality behavioral healthcare services and can capitalize on robust demand for these services.HCA Healthcare operates as one of the leading U.S. acute care psychiatric providers. Behavioral healthcare services remain one of the fastest-growing business lines within the company. HCA continues to collaborate with hospital affiliates for better management of behavioral healthcare services.Making use of clinical resources and geographic presence, Universal Health Services enters into mutually beneficial collaborations with other healthcare systems. This has helped UHS to deliver enhanced and affordable behavioral healthcare services, thus resulting in better outcomes for patients.Humana follows an integrated approach of catering to the behavioral, physical and pharmacy needs of people. HUM follows a holistic approach to behavioral healthcare and provides web-based health coaching thereby resulting in better outcomes and reduced costs for members and employers.Price PerformancesShares of Acadia Healthcare have gained 20.2% in a year compared with the industry’s rally of 39.9%.Image Source: Zacks Investment ResearchACHC currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.While shares of HCA Healthcare and Humana have gained 54% and 12.6%, respectively, in a year, Universal Health Services stock has lost 3% in the same time frame. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 4th, 2022

Gladstone Commercial (GOOD) Sees High Occupancy in December

Solid demand for Gladstone Commercial's (GOOD) properties boosts occupancy in its portfolio. The company also collects 100% of the cash base rent for December. Gladstone Commercial Corporation GOOD has been witnessing active leasing, aiding solid occupancy, healthy rental collections and ample liquidity to back its acquisitions and growth efforts.As of Dec 31, 2021, the company’s portfolio occupancy was 97.1% due to successful leasing activities. Moreover, Gladstone Commercial collected 100% of the December cash base rents. Healthy levels of rental receipts have enabled GOOD to maintain its dividend rate.Gladstone Commercial is also focused on its growth measures. In December, it acquired a 120,000-square-foot industrial facility in the Atlanta, GA metropolitan statistical areas for $12 million. The property has 15 years of residual absolute NNN lease term.Gladstone Commercial also acquired a 300,000-square-foot industrial facility located in Crossville, TN for $29 million, with the tenant, CoLinx, LLC, having a remaining lease term of 11 years. The company’s fourth-quarter 2021 acquisitions totaled 581,460 square feet of industrial real estate for $53.8 million.Gladstone Commercial is also witnessing healthy demand for its properties. In its business update for 2021, the company noted that it has extended, expanded or leased 1.6 million square feet of space, comprising 15 tenants with a weighted average lease term of 7.7 years and a tenant improvement allowance of $2.92 per square foot. Compared with the prior rents, the combined straight-line rents for these transactions increased 7.1%.Further, management noted that as of Dec 31, 2021, the company’s available liquidity was $25.4 million, consisting of revolving credit facility and cash in hand. Gladstone Commercial continues to raise equity capital. In 2021, it issued 1.8 million shares of common stock for net proceeds of $36.6 million. Such an amount of liquidity supports Gladstone Commercial’s growth strategy.Shares of this Zacks Rank #2 (Buy) company have rallied 17.6% in the past three months, outperforming the industry’s growth of 14%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchStocks to ConsiderSome key picks from the REIT sector include Terreno Realty Corporation TRNO, CubeSmart CUBE and Rexford Industrial Realty REXR.Terreno Realty holds a Zacks Rank of 2 at present. Terreno Realty’s 2021 revenues are expected to increase 17.8% year over year.The Zacks Consensus Estimate for TRNO’s 2022 FFO per share has been revised marginally upward in the past two months.The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share has moved 2.4% north to $2.10 in the past two months.Currently, CubeSmart carries a Zacks Rank of 1. CUBE's long-term growth rate is projected at 11.2%.The Zacks Consensus Estimate for Rexford Industrial’s 2022 FFO per share has moved 1.2% north to $1.63 over the past two months.Currently, Rexford Industrial carries a Zacks Rank of 2. REXR's long-term growth rate is projected at 12.9%.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Terreno Realty Corporation (TRNO): Free Stock Analysis Report CubeSmart (CUBE): Free Stock Analysis Report Gladstone Commercial Corporation (GOOD): Free Stock Analysis Report Rexford Industrial Realty, Inc. (REXR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 4th, 2022

Lennar Reports Fourth Quarter and Fiscal 2021 Results

MIAMI, Dec. 15, 2021 /PRNewswire/ -- 2021 Fourth Quarter Highlights – comparisons to the prior year quarter Net earnings per diluted share increased 39% to $3.91 (increased 55% to $4.36, excluding mark to market losses on strategic technology investments) Net earnings increased 35% to $1.2 billion (increased 50% to $1.3 billion, excluding mark to market losses on strategic technology investments) Revenues increased 24% to $8.4 billion Deliveries increased 11% to 17,819 homes New orders increased 2% to 15,539 homes; new orders dollar value increased 16% to $7.3 billion Backlog increased 26% to 23,771 homes; backlog dollar value increased 45% to $11.4 billion Homebuilding operating earnings of $1.8 billion, compared to operating earnings of $1.1 billion Gross margin on home sales improved 300 basis points ("bps") to 28.0% S,G&A expenses as a % of revenues from home sales improved 150 bps to 6.0% Net margin on home sales improved 460 bps to 22.0% Financial Services operating earnings of $111.4 million, compared to operating earnings of $151.2 million Multifamily operating earnings of $9.3 million, compared to operating earnings of $26.7 million Lennar Other operating loss of $176.2 million, compared to operating loss of $1.2 million Years of supply owned homesites decreased to 3.0 years Controlled homesites increased to 59% Homebuilding cash and cash equivalents of $2.7 billion Retired $850 million of homebuilding senior notes due in fiscal year 2022 Repurchased 10 million shares of Lennar common stock for $977.4 million Homebuilding debt to total capital of 18.3%, the lowest in the Company's history 2021 Fiscal Year Highlights – comparisons to the prior year Net earnings, revenues, deliveries, new orders and net margin for 2021 were the highest in the Company's history Net earnings per diluted share increased 82% to $14.27 (increased 66% to $13.00, excluding mark to market gains on strategic technology investments) Net earnings increased 80% to $4.4 billion (increased 64% to $4.0 billion, excluding mark to market gains on strategic technology investments) Revenues increased 21% to $27.1 billion Deliveries increased 13% to 59,825 homes New orders increased 15% to 64,543 homes Net margin on home sales improved 510 bps to 19.7% Retired $1.15 billion of homebuilding senior notes due in fiscal year 2022 Repurchased 14 million shares of Lennar common stock for $1.37 billion Return on equity improved 790 bps to 22.6% Lennar Corporation (NYSE:LEN), one of the nation's largest homebuilders, today reported results for its fourth quarter and fiscal year ended November 30, 2021. Fourth quarter net earnings attributable to Lennar in 2021 were $1.2 billion, or $3.91 per diluted share, compared to $882.8 million, or $2.82 per diluted share in the fourth quarter of 2020. Net earnings attributable to Lennar for the year ended November 30, 2021 were $4.4 billion, or $14.27 per diluted share, compared to $2.5 billion, or $7.85 per diluted share for the year ended November 30, 2020. Stuart Miller, Executive Chairman of Lennar, said, "While supply chain challenges continued to dominate both the homebuilding and the broader economic narrative in the fourth quarter, we are pleased to report record fourth quarter earnings of $1.2 billion, or $3.91 per diluted share, compared to $882.8 million or $2.82 per diluted share for the quarter last year. Excluding mark to market losses on our public strategic technology investments, fourth quarter 2021 earnings were $1.3 billion, or $4.36 per diluted share. For the full year, we delivered just under 60,000 homes generating EPS of $14.27 per diluted share ($13.00 per diluted share before mark to market gains) for an 82% increase over the prior year (66% before mark to market gains)." "Our record fourth quarter results reflect both continued strength in the housing market across the country, and continued housing supply shortage driven by limited entitled land, labor and supply chain constraints, and 10 years of production shortfall. While our new orders grew a controlled 2% compared to last year's seasonally strong fourth quarter, we achieved a homebuilding gross margin of 28.0% and homebuilding SG&A of 6.0%, leading to a 22.0% net margin, all of which are all-time Company records." Rick Beckwitt, Co-Chief Executive Officer and Co-President of Lennar, said, "During the fourth quarter, our community count increased 7% year over year as we continued to make excellent progress on our land light strategy. This was evidenced by our years owned supply of homesites improving to our previously stated goal of 3.0 years at the end of the fourth quarter from 3.5 years last year, and our controlled homesite percentage increasing to 59% from 39% for those same periods." "We ended the quarter with $2.7 billion in cash, no borrowings on our $2.5 billion revolver and homebuilding debt to capital of 18.3%, an all-time Company low. Our land lighter model resulted in incremental cash flow generation during the fourth quarter which we used towards the repurchase of 10 million shares of our common stock for just under $1 billion, and debt reduction of $850 million. These transactions, combined with our significant earnings, contributed to a return on equity of over 22%." Jon Jaffe, Co-Chief Executive Officer and Co-President of Lennar, said, "During the quarter, our homebuilding machine continued to be laser focused on production, even while our cycle time expanded about two weeks from the third quarter driven by rapidly changing supply chain issues. The impact of supply chain issues and increased cycle times were partially offset by accelerated construction starts throughout the year." "In this turbulent environment, we are confident that we are implementing the right playbook with our Builder of Choice position and our simplified Everything's Included® business model to successfully navigate current supply chain dynamics. Our strong and deep-rooted relationships with our trade partners have helped mitigate the impact of labor and supply shortages. Our quarterly starts and sales pace remained strong and consistent at 4.5 homes and 4.3 homes per community, respectively, in the fourth quarter." Mr. Miller concluded, "The housing industry continues to exhibit strong demand, outweighing supply, and we are confident that we will continue to generate solid growth and enhance our current market position. Accordingly, as we look forward to 2022, we expect to deliver approximately 67,000 homes with a 27.0% - 27.5% gross margin for the year, with more or less 12,500 homes at a gross margin of approximately 26.75% in the first quarter. Overall, we are operating from a position of strength with an excellent balance sheet enabling us to continue to execute on our core strategies." RESULTS OF OPERATIONS THREE MONTHS ENDED NOVEMBER 30, 2021 COMPARED TOTHREE MONTHS ENDED NOVEMBER 30, 2020 Homebuilding Revenues from home sales increased 26% in the fourth quarter of 2021 to $8.0 billion from $6.3 billion in the fourth quarter of 2020. Revenues were higher primarily due to an 11% increase in the number of home deliveries and a 14% increase in the average sales price. New home deliveries increased to 17,819 homes in the fourth quarter of 2021 from 16,090 homes in the fourth quarter of 2020. The average sales price of homes delivered was $448,000 in the fourth quarter of 2021, compared to $393,000 in the fourth quarter of 2020. Gross margins on home sales were $2.2 billion, or 28.0%, in the fourth quarter of 2021, compared to $1.6 billion, or 25.0%, in the fourth quarter of 2020. During the fourth quarter of 2021, an increase in revenues per square foot was offset by an increase in costs per square foot as the majority of homes delivered during the fourth quarter of 2021 had higher costs from lumber purchases made earlier in the year. Overall, gross margins improved year over year as land costs on homes closed remained relatively flat while interest expense decreased as a result of our focus on reducing debt. Selling, general and administrative expenses were $477.6 million in the fourth quarter of 2021, compared to $475.1 million in the fourth quarter of 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.0% in the fourth quarter of 2021, from 7.5% in the fourth quarter of 2020. This was the lowest percentage for a quarter in the Company's history primarily due to a decrease in broker commissions and benefits of the Company's technology efforts. Financial Services Operating earnings for the Financial Services segment were $111.4 million in the fourth quarter of 2021, compared to $151.2 million in the fourth quarter of 2020. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market. Other Ancillary Businesses Operating earnings for the Multifamily segment were $9.3 million in the fourth quarter of 2021, compared to $26.7 million in the fourth quarter of 2020. Operating loss for the Lennar Other segment was $176.2 million in the fourth quarter of 2021, compared to an operating loss of $1.2 million in the fourth quarter of 2020. The Lennar Other operating loss for the fourth quarter of 2021 was primarily due to mark to market losses on the Company's strategic technology investments that went public during the year ended November 30, 2021. RESULTS OF OPERATIONS YEAR ENDED NOVEMBER 30, 2021 COMPARED TOYEAR ENDED NOVEMBER 30, 2020 Homebuilding Revenues from home sales increased 22% in the year ended November 30, 2021 to $25.3 billion from $20.8 billion in the year ended November 30, 2020. Revenues were higher primarily due to a 13% increase in the number of home deliveries and an 8% increase in the average sales price. New home deliveries increased to 59,825 homes in the year ended November 30, 2021 from 52,925 homes in the year ended November 30, 2020. The average sales price of homes delivered was $424,000 in the year ended November 30, 2021, compared to $395,000 in the year ended November 30, 2020. Gross margins on home sales were $6.8 billion, or 26.8%, in the year ended November 30, 2021, compared to $4.7 billion, or 22.8%, in the year ended November 30, 2020. The gross margin percentage on home sales increased primarily as a result of price appreciation as the increase in revenues per square foot outpaced the increase in costs per square foot. Selling, general and administrative expenses were $1.8 billion in the year ended November 30, 2021, compared to $1.7 billion in the year ended November 30, 2020. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 7.1% in the year ended November 30, 2021, from 8.1% in the year ended November 30, 2020, due to a decrease in broker commissions and benefits of the Company's technology efforts. Financial Services Operating earnings for the Financial Services segment were $491.0 million ($490.4 million net of noncontrolling interests) in the year ended November 30, 2021, compared to $481.0 million ($495.0 million net of noncontrolling interests) in the year ended November 30, 2020. The year ended November 30, 2020 included a $61.4 million gain on the deconsolidation of a previously consolidated entity. Excluding this gain, the improvement in operating earnings during the year ended November 30, 2021 was primarily due to an increase in volume and margin in the title businesses, partially offset by lower mortgage net margins driven by a more competitive mortgage market. Other Ancillary Businesses Operating earnings for the Multifamily segment were $21.5 million in the year ended November 30, 2021, compared to $22.7 million in the year ended November 30, 2020. Operating earnings for the Lennar Other segment were $733.0 million in the year ended November 30, 2021, compared to an operating loss of $10.3 million in the year ended November 30, 2020. The operating earnings for the year ended November 30, 2021 were primarily due to mark to market gains on the Company's strategic technology investments that went public during the year and the sale of our solar business. Debt Transactions In the fourth quarter of 2021, the Company retired $600 million aggregate principal amount of its 4.125% senior notes due January 2022 at par and retired early, at a premium, $250 million aggregate principal amount of its 5.375% senior notes due October 2022. The loss on early retirement of the $250 million senior notes was $7.4 million. During the year ended November 30, 2021, the Company retired $1.15 billion aggregate principal amount of senior notes which included those senior notes described above and $300 million aggregate principal amount of its 6.25% senior notes due December 2021. Tax Rate For the years ended November 30, 2021 and 2020, the Company had a tax provision of $1.4 billion and $656.2 million, respectively, which resulted in an overall effective income tax rate of 23.5% and 21.0%, respectively. The overall effective income tax rate was lower in 2020 primarily due to the retroactive extension of the new energy efficient home tax credit during the first quarter of 2020. Shares Repurchases During the fourth quarter of 2021, the Company repurchased 10 million shares of its common stock for $977.4 million at an average per share price of $97.74. For the year ended November 30, 2021, the Company repurchased 14.0 million shares of its common stock for $1.37 billion at an average per share price of $97.45. Liquidity At November 30, 2021, the Company had $2.7 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.5 billion revolving credit facility, thereby providing $5.2 billion of available capacity. 2022 Guidance The following are the Company's expected results of its homebuilding and financial services activities for the first quarter and fiscal year 2022: First Quarter 2022 Fiscal Year 2022 New Orders 14,800 - 15,100 Deliveries About 12,500 About 67,000 Average Sales Price About $460,000 About $460,000 Gross Margin % on Home Sales About 26.75% 27.0% - 27.5% S,G&A as a % of Home Sales 7.8% - 7.9% 6.8% - 6.9% Financial Services Operating Earnings $85 million - $90 million $440 million - $450 million About Lennar Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com. Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. Important factors that could cause such differences include the potential negative impact to our business of the ongoing coronavirus (COVID-19) pandemic; slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; reduced availability of mortgage financing, increased interest rates or increased competition in the mortgage industry; reductions in the market value of the Company's investments in public companies; decreased demand for our homes or Multifamily rental apartments; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; unfavorable losses in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the risks described in our filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended November 30, 2020. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. A conference call to discuss the Company's fourth quarter earnings will be held at 11:00 a.m. Eastern Time on Thursday, December 16, 2021. The call will be broadcast live on the Internet and can be accessed through the Company's website at www.lennar.com. If you are unable to participate in the conference call, the call will be archived at www.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3605 and entering 5723593 as the confirmation number.   LENNAR CORPORATION AND SUBSIDIARIES Selected Revenues and Operating Information (In thousands, except per share amounts) (unaudited) Three Months Ended Years Ended November 30, November 30, 2021 2020 2021 2020 Revenues: Homebuilding $ 8,015,636 6,354,416 25,545,242 20,981,136 Financial Services 228,956 258,319 898,745 890,311 Multifamily 188,395 205,424 665,232 576,328 Lennar Other 573 7,731 21,457 41,079 Total revenues $ 8,433,560 6,825,890 27,130,676 22,488,854 Homebuilding operating earnings $ 1,756,274 1,083,404 5,031,762 2,988,907 Financial Services operating earnings 111,404 151,230 491,014 480,952 Multifamily operating earnings 9,323 26,682 21,453 22,681 Lennar Other operating earnings (loss) (176,186) (1,211) 733,035 (10,334) Corporate general and administrative expenses (102,191) (86,631) (398,381) (333,446) Charitable foundation contribution (17,819) (8,828) (59,825) (24,972) Earnings before income taxes 1,580,805 1,164,646 5,819,058 3,123,788 Provision for income taxes (387,155) (273,737) (1,362,509) (656,235) Net earnings (including net earnings attributable to noncontrolling interests) 1,193,650 890,909 4,456,549 2,467,553 Less: Net earnings attributable to noncontrolling interests 3,159 8,149 26,438 2,517 Net earnings attributable to Lennar $ 1,190,491 882,760 4,430,111 2,465,036 Average shares outstanding: Basic 301,238 309,151 306,612.....»»

Category: earningsSource: benzingaDec 15th, 2021

SL Green"s (SLG) Credit Facility Refinancing Aids Flexibility (Revised)

With the refinancing of its credit facility, SL Green Realty (SLG) extends the maturity date, and reduces the borrowing cost and the overall size of its unsecured corporate credit facility. SL Green Realty Corp.  SLG recently refinanced its corporate credit facility. With this, SLG extended the maturity date as well as reduced the borrowing cost and the overall size of its unsecured corporate credit facility.The revolving line of credit component of the facility was lowered by $250 million to $1.25 billion and the maturity date extended from March 2023 to May 2027. The current borrowing cost for the same is lowered to 85 basis points (bps) over adjusted secured overnight financing rate (SOFR).The 5-year funded term-loan component of the facility diminished by $250 million to $1.25 billion while the current borrowing cost shrank to 95 bps over adjusted SOFR. The maturity date for the same was deferred to May 2027 from March 2023.However, the facility’s $200-million, 7-year funded term loan component remains unchanged and will mature in November 2024. Its current borrowing cost is 100 bps over adjusted SOFR.The new facility will enhance the liquidity position of SL Green. Moreover, it is in line with the long-term unsecured borrowing strategy of SLG.SL Green is poised to bank on the improving office real-estate market in the New York City, backed by its high-quality office properties in key locations.  Recently, it signed a 191,207-square-foot expansion lease with Bloomberg at 919 Third Avenue.In addition, SL Green signed a new 19,522-square-foot lease with Flexpoint Ford and a 6,554-square-foot expansion lease with  Stone Point Capital LLC at One Vanderbilt Avenue. With these, One Vanderbilt is now 92.7% leased.Moreover, SL Green continues to sell non-core assets and redeploy the proceeds to the development pipeline, share buybacks and debt repayment. In line with this,  SLG sold a 25 percent interest in One Madison Avenue to an international investor.SL Green also announced the sale of its ownership interest in the office and garage condominiums at 110 East 42nd Street  to  Meadow Partners for a gross sale price of  $117.1 million. Together with its joint-venture partner Stonehenge, SL Green announced the sale of its leasehold interest in 1080 Amsterdam Avenue  for a gross sale price of  $42.5 million.SL Green currently carries a Zacks Rank #3 (Hold). The stock has gained 8% over the past three months, outperforming the  industry’s rally of 1.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchStocks to ConsiderSome stocks worth considering from the REIT sector are OUTFRONT Media OUT, Cedar Realty Trust CDR and Alpine Income Property Trust Inc. PINE.The Zacks Consensus Estimate for OUTFRONT Media’s 2021 fund from operations (FFO) per share has been raised 13.8% over the past two months. OUT’s 2021 FFO per share is expected to increase 45.71% from the year-ago reported figure.OUTFRONT Media flaunts a Zacks Rank of 1 at present. Shares of OUT have rallied 5.9% in the past six months.The Zacks Consensus Estimate for Cedar Realty’s current-year FFO per share has been raised 2.6% to $2.36 in the past month. This suggests an increase of 16.9% from the year-ago reported figure.Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 46.7% in the past six months.Alpine Income carries a Zacks Rank #2 (Buy) at present. Over the last four quarters, PINE’s FFO per share surpassed the consensus mark thrice and missed the same once, the average surprise being 2.71%.The Zacks Consensus Estimate for Alpine Income’s 2021 FFO per share has been revised 2.8% upward in two months month to $1.49. Shares of PINE have inched up 1.3% in the past three months.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.(We are reissuing this article to correct a mistake. The original article, issued on December 8, 2021, should no longer be relied upon.)  Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SL Green Realty Corporation (SLG): Free Stock Analysis Report Cedar Realty Trust, Inc. (CDR): Free Stock Analysis Report OUTFRONT Media Inc. (OUT): Free Stock Analysis Report Alpine Income Property Trust, Inc. (PINE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 10th, 2021

SL Green"s (SLG) Credit Facility Refinancing Aids Flexibility

With the refinancing of its credit facility, SL Green (SLG) extends the maturity date, and reduces the borrowing cost and the overall size of its unsecured corporate credit facility. SL Green Realty Corp.  SLG recently refinanced its corporate credit facility. With this, SLG extended the maturity date as well as reduced the borrowing cost and the overall size of its unsecured corporate credit facility.The revolving line of credit component of the facility is decreased $250-$1.25 billion and the maturity date is extended from March 2023 to  May 2027. The current borrowing cost for the same is lowered to 85 basis points (bps) over adjusted SOFR.The 5-year funded term-loan component of the facility is diminished $250-$1.05 billion while and the current borrowing cost shrank to 95 bps over adjusted SOFR. The maturity date for the same is deferred to May 2027 from March 2023.However, the facility’s $200-million, 7-year funded term loan component remains unchanged and will mature in November 2024. Its current borrowing cost is 100 bps over adjusted SOFR.The new facility will enhance the liquidity position of SL Green. Moreover, it is in line with the long-term unsecured borrowing strategy of SLG.SL Green is poised to bank on the improving office real-estate market in the New York City, backed by its high-quality office properties in key locations.  Recently, it signed a 191,207-square-foot expansion lease with Bloomberg at 919 Third Avenue.In addition, SL Green signed a new 19,522-square-foot lease with Flexpoint Ford and a 6,554-square-foot expansion lease with  Stone Point Capital LLC at One Vanderbilt Avenue. With these, One Vanderbilt is now 92.7% leased.Moreover, SL Green continues to sell non-core assets and redeploy the proceeds to the development pipeline, share buybacks and debt repayment. In line with this,  SLG sold a 25 percent interest in One Madison Avenue to an international investor.SL Green also announced the sale of its ownership interest in the office and garage condominiums at 110 East 42nd Street  to  Meadow Partners for a gross sale price of  $117.1 million. Together with its joint-venture partner Stonehenge, SL Green announced the sale of its leasehold interest in 1080 Amsterdam Avenue  for a gross sale price of  $42.5 million.SL Green currently carries a Zacks Rank #3 (Hold). The stock has gained 8% over the past three months, outperforming the  industry’s rally of 1.1%. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchStocks to ConsiderSome stocks worth considering from the REIT sector are OUTFRONT Media OUT, Cedar Realty Trust CDR and Alpine Income Property Trust Inc. PINE.The Zacks Consensus Estimate for OUTFRONT Media’s 2021 fund from operations (FFO) per share has been raised 13.8% over the past two months. OUT’s 2021 FFO per share is expected to increase 45.71% from the year-ago reported figure.OUTFRONT Media flaunts a Zacks Rank of 1 at present. Shares of OUT have rallied 5.9% in the past six months.The Zacks Consensus Estimate for Cedar Realty’s current-year FFO per share has been raised 2.6% to $2.36 in the past month. This suggests an increase of 16.9% from the year-ago reported figure.Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 46.7% in the past six months.Alpine Income carries a Zacks Rank #2 (Buy) at present. Over the last four quarters, PINE’s FFO per share surpassed the consensus mark thrice and missed the same once, the average surprise being 2.71%.The Zacks Consensus Estimate for Alpine Income’s 2021 FFO per share has been revised 2.8% upward in two months month to $1.49. Shares of PINE have inched up 1.3% in the past three months.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SL Green Realty Corporation (SLG): Free Stock Analysis Report Cedar Realty Trust, Inc. (CDR): Free Stock Analysis Report OUTFRONT Media Inc. (OUT): Free Stock Analysis Report Alpine Income Property Trust, Inc. (PINE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 9th, 2021

Toll Brothers Reports FY 2021 4th Quarter Results

FORT WASHINGTON, Pa., Dec. 07, 2021 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (TollBrothers.com), the nation's leading builder of luxury homes, today announced results for its fourth quarter and fiscal year ended October 31, 2021. FY 2021's Fourth Quarter Financial Highlights (Compared to FY 2020's Fourth Quarter): Net income and earnings per share were $374.3 million and $3.02 per share diluted, compared to net income of $199.3 million and $1.55 per share diluted in FY 2020's fourth quarter. Pre-tax income was $499.7 million, compared to $267.0 million in FY 2020's fourth quarter. Home sales revenues were $2.95 billion, up 18% compared to FY 2020's fourth quarter; delivered homes were 3,341, up 14%. Net signed contract value was $3.00 billion, up 10% compared to FY 2020's fourth quarter; contracted homes were 2,957, down 13%. Backlog value was $9.50 billion at fourth quarter end, up 49% compared to FY 2020's fourth quarter; homes in backlog were 10,302, up 32%. Home sales gross margin was 23.5%, compared to FY 2020's fourth quarter home sales gross margin of 20.1%. Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 25.9%, compared to FY 2020's fourth quarter adjusted home sales gross margin of 24.0%. SG&A, as a percentage of home sales revenues, was 8.8%, compared to 9.9% in FY 2020's fourth quarter. Income from operations was $440.7 million. Other income, income from unconsolidated entities, and gross margin from land sales and other was $63.5 million. The Company repurchased approximately 1.73 million shares at an average price of $59.49 per share for a total purchase price of approximately $103.2 million. Full FY 2021 Financial Highlights (Compared to Full FY 2020): Net income was $833.6 million, and earnings per share were $6.63 diluted, compared to net income of $446.6 million and $3.40 per share diluted in FY 2020. Pre-tax income was $1.10 billion, compared to $586.9 million in FY 2020. Home sales revenues were $8.43 billion, up 22% compared to FY 2020; delivered homes were 9,986, up 18%. Net signed contract value was $11.54 billion, up 44% compared to FY 2020; contracted homes were 12,472, up 26%. Home sales gross margin was 22.5%, compared to FY 2020's home sales gross margin of 20.2%. Adjusted home sales gross margin, which excludes interest and inventory write-downs, was 25.0%, compared to FY 2020's adjusted home sales gross margin of 23.5%. SG&A, as a percentage of home sales revenues, was 10.9%, compared to 12.5% in FY 2020. Income from operations was $1.02 billion. Other income, income from unconsolidated entities, and gross margin from land sales and other was $164.3 million. The Company repurchased approximately 7.42 million shares at an average price of $50.97 per share for a total purchase price of approximately $378.3 million. Douglas C. Yearley, Jr., chairman and chief executive officer, stated: "We are very pleased with our fourth quarter results, which cap an extraordinary year of record revenues, earnings, contracts and backlog value for Toll Brothers. In the fourth quarter, we grew home sales revenues by 18%, achieved an adjusted gross margin of 25.9%, and nearly doubled our pre-tax income and earnings per share from one year ago. In addition, we continued to improve the capital efficiency of our land acquisition strategy, with optioned lots now representing 55% of our 80,900 total lots at quarter end, up from 43% one year ago. Our fourth quarter results, combined with our strategy of driving capital and operating efficiency, contributed to an 830 basis point increase in our full year return on beginning equity to 17.1%. "Demand remains very strong. The housing market continues to benefit from solid fundamentals, including favorable demographics, pent up demand from over a decade of underproduction of new homes, low mortgage rates, a tight resale market, and permanent changes to the way Americans view life, work and home. We believe these trends will continue to drive strong demand for our first-time, move-up and active adult communities well into the future. "We, like the rest of the industry, continue to be challenged by significant supply chain and labor constraints that are extending delivery times for our homes. Notwithstanding these issues, which we expect to continue for the foreseeable future, we project 20% revenue growth in FY 2022. "In a year of record sales, we increased our community count by 7% to 340 communities at fiscal year end. We continue to project 10% community count growth by FYE 2022 and currently own or control enough land for additional meaningful growth in FY 2023. Based on the strong pricing embedded in our all-time record backlog of $9.5 billion, we project a 250 basis point improvement in full year adjusted gross margin, which we expect to be second half weighted as peak lumber prices from the spring of 2020 flow through our first half deliveries. Driven in part by our permanent pivot to a more capital efficient land strategy, we are also projecting a further significant increase in our return on beginning equity to well over 20%." First Quarter and FY 2022 Financial Guidance:   First Quarter   Full Fiscal Year 2022 Deliveries 2,000 units   11,250 - 12,000 units Average Delivered Price per Home $865,000 - $885,000   $875,000 - $895,000 Adjusted Home Sales Gross Margin 25.5 %   27.5 % SG&A, as a Percentage of Home Sales Revenues 14.1 %   10.5 % Period-End Community Count 325   375 Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other $30 million   $100 million Tax Rate 26.0 %   26.0 %             Financial Highlights for the three months ended October 31, 2021 and 2020 (unaudited):   2021   2020 Net Income $374.3 million, or $3.02 per share diluted   $199.3 million, or $1.55 per share diluted Pre-Tax Income $499.7 million   $267.0 million Pre-Tax Inventory Impairments $10.5 million   $33.9 million Home Sales Revenues $2.95 billion and 3,341 units   $2.50 billion and 2,940 units Net Signed Contracts $3.00 billion and 2,957 units   $2.74 billion and 3,407 units Net Signed Contracts per Community 8.9 units   10.8 units Quarter-End Backlog $9.50 billion and 10,302 units   $6.37 billion and 7,791 units Average Price per Home in Backlog $922,100   $818,200 Home Sales Gross Margin 23.5 %   20.1 % Adjusted Home Sales Gross Margin 25.9 %   24.0 % Interest Included in Home Sales Cost of Revenues, as a percentage of Home Sales Revenues 2.0 %   2.5 % SG&A, as a percentage of Home Sales Revenues 8.8 %   9.9 % Income from Operations $440.7 million, or 14.5% of total revenues   $260.6 million, or 10.2% of total revenues Other Income, Income from Unconsolidated Entities, and Gross Margin from Land Sales and Other $63.5 million   $11.2 million Quarterly Cancellations as a Percentage of Signed Contracts in Quarter 4.6 %   5.4 % Quarterly Cancellations as a Percentage of Beginning-Quarter Backlog 1.3 %   2.7 % Financial Highlights for the fiscal year ended October 31, 2021 and 2020 (unaudited):   2021   2020 Net Income $833.6 million, or $6.63 per share diluted   $446.6 million, or $3.40 per share diluted Pre-Tax Income* $1.10 billion   $586.9 million Pre-Tax Inventory Impairments $26.5 million   $55.9 million Home Sales Revenues $8.43 billion and 9,986 units   $6.94 billion and 8,496 units Net Signed Contracts $11.54 billion and 12,472 units   $8.00 billion and 9,932 units Home Sales Gross Margin 22.5 %   20.2 % Adjusted Home Sales Gross Margin 25.0 %   23.5 % SG&A, as a percentage of Home Sales Revenues 10.9 %   12.5 % Income from Operations $1.02 billion, or 11.6% of total revenues   $550.3 million, or 7.8% of total revenues Other Income, Income from Unconsolidated Entities, and Land Sales Gross Profit $164.3 million   $51.1 million *Pre-tax income in the fiscal year ended October 31, 2021 includes charges of $35.2 million for the early retirement of debt.    Additional Information: The Company ended its FY 2021 fourth quarter with approximately $1.64 billion in cash and cash equivalents, compared to $1.37 billion at FYE 2020 and $946.1 million at FY 2021's third quarter end. At FY 2021 fourth quarter end, the Company also had $1.81 billion available under its $1.905 billion bank revolving credit facility, substantially all of which is scheduled to mature in November 2026. On October 22, 2021, the Company paid its quarterly dividend of $0.17 per share to shareholders of record at the close of business on October 8, 2021. Stockholders' Equity at FY 2021 fourth quarter end was $5.30 billion, compared to $4.88 billion at FYE 2020. FY 2021's fourth quarter-end book value per share was $44.08 per share, compared to $38.53 at FYE 2020. The Company ended its FY 2021 fourth quarter with a debt-to-capital ratio of 40.2%, compared to 41.6% at FY 2021's third quarter end and 44.8% at FYE 2020. The Company ended FY 2021's fourth quarter with a net debt-to-capital ratio(1) of 25.1%, compared to 33.1% at FY 2021's third quarter end, and 33.3% at FYE 2020. The Company ended FY 2021's fourth quarter with approximately 80,900 lots owned and optioned, compared to 79,500 one quarter earlier, and 63,200 one year earlier. Approximately 45% or 36,100, of these lots were owned, of which approximately 17,200 lots, including those in backlog, were substantially improved. In the fourth quarter of FY 2021, the Company spent approximately $290.7 million on land to purchase approximately 2,537 lots. The Company ended FY 2021's fourth quarter with 340 selling communities, compared to 314 at FY 2021's third quarter end and 317 at FY 2020's fourth quarter end. The Company repurchased approximately 1.7 million shares of its common stock during the quarter at an average price of $59.49 per share for an aggregate purchase price of approximately $103.2 million. In the fiscal year ended October 31, 2021, the Company repurchased approximately 7.4 million shares of its common stock at an average price of $50.97 per share for an aggregate purchase price of approximately $378.3 million. On October 31, 2021 the Company extended the maturity date of $1.78 billion of the $1.905 billion of revolving loans and commitments under its revolving credit facility from November 1, 2025 to November 1, 2026, with the remaining $125 million of revolving loans and commitments expiring on November 1, 2025. Also on October 31, 2021, the Company extended the maturity date of $584.4 million of its outstanding term loans from November 1, 2025 to November 1, 2026, with $101.6 million of term loans remaining due on November 1, 2025. No other provisions of either agreement were modified. On November 15, 2021, the Company repaid all $410 million of outstanding principal amount of its 5.875% senior notes due in February 2022. (1)   See "Reconciliation of Non-GAAP Measures" below for more information on the calculation of the Company's net debt-to-capital ratio. Toll Brothers will be broadcasting live via the Investor Relations section of its website, investors.TollBrothers.com, a conference call hosted by Chairman & CEO Douglas C. Yearley, Jr. at 8:30 a.m. (EST) Wednesday, December 8, 2021, to discuss these results and its outlook for the first quarter and FY 2022. To access the call, enter the Toll Brothers website, click on the Investor Relations page, and select "Events & Presentations." Participants are encouraged to log on at least fifteen minutes prior to the start of the presentation to register and download any necessary software. The call can be heard live with an online replay which will follow. ABOUT TOLL BROTHERS Toll Brothers, Inc., A FORTUNE 500 Company, is the nation's leading builder of luxury homes. The Company was founded over fifty years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol "TOL." The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, golf course development, smart home technology, and landscape subsidiaries. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations. 2021 marks the 10th year Toll Brothers has been named to FORTUNE magazine's World's Most Admired Companies® list. Toll Brothers has been honored as Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year by Professional Builder magazine. For more information visit TollBrothers.com. Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com). FORWARD-LOOKING STATEMENTS Information presented herein for the fourth quarter ended October 31, 2021 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures. This release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "can," "could," "might," "should," "likely," "will," and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: the impact of Covid-19 on the U.S. economy and on our business; expectations regarding inflation and interest rates; the markets in which we operate or may operate; our strategic priorities; our land acquisition, land development and capital allocation priorities; market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues; changes in profitability; changes in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims. Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to: the ongoing effects of the Covid-19 pandemic, which remain highly uncertain, cannot be predicted and will depend upon future developments, including the duration of the pandemic, the impact of mitigation strategies taken by applicable government authorities, the continued availability and effectiveness of vaccines, adequate testing and therapeutic treatments and the prevalence of widespread immunity to Covid-19; the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the price and availability of lumber, other raw materials, home components and labor; the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries; the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19; federal and state tax policies; transportation costs; the effect of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to our computer systems, theft of our and our homebuyers' confidential information or other forms of cyber-attack; and other factors described in "Risk Factors" included in our Annual Report on Form 10-K for the year ended October 31, 2020 and in subsequent filings we make with the Securities and Exchange Commission ("SEC"). Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements. Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section. TOLL BROTHERS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands)   October 31,2021   October 31,2020   (Unaudited)     ASSETS       Cash and cash equivalents $ 1,638,494       $ 1,370,944     Inventory 7,915,884       7,658,906     Property, construction and office equipment, net 310,455       316,125     Receivables, prepaid expenses and other assets 738,078       956,294     Mortgage loans held for sale 247,211       231,797     Customer deposits held in escrow 88,627       77,291     Investments in unconsolidated entities 599,101       430,701     Income taxes receivable     23,675       $ 11,537,850       $ 11,065,733             LIABILITIES AND EQUITY       Liabilities:       Loans payable $ 1,011,534       $ 1,147,955     Senior notes 2,403,989       2,661,718     Mortgage company loan facility 147,512       148,611     Customer deposits 636,379       459,406     Accounts payable 562,466       411,397     Accrued expenses 1,220,235       1,110,196     Income taxes payable 215,280       198,974     Total liabilities 6,197,395       6,138,257             Equity:       Stockholders' Equity       Common stock 1,279       1,529     Additional paid-in capital 714,453       717,272     Retained earnings 4,969,839       5,164,086     Treasury stock, at cost (391,656 )     (1,000,454 )   Accumulated other comprehensive income (loss) 1,109       (7,198 )   Total stockholders' equity 5,295,024       4,875,235     Noncontrolling interest 45,431       52,241     Total equity 5,340,455       4,927,476       $ 11,537,850       $ 11,065,733                         TOLL BROTHERS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data and percentages)(Unaudited)   Three Months Ended October 31,   Twelve Months Ended October 31,   2021   2020   2021   2020   $ %   $ %   $ %   $ % Revenues:                       Home sales $ 2,950,417       $ 2,495,974         $ 8,431,746         $ 6,937,357     Land sales and other 90,963       49,693         358,615         140,302       3,041,380       2,545,667         8,790,361         7,077,659                             Cost of revenues:                       Home sales 2,256,044   76.5 %   1,993,895     79.9 %   6,538,454     77.5 %   5,534,103   79.8 % Land sales and other 86,473   95.1 %   44,895     90.3 %   309,007     86.2 %   125,854   89.7 %   2,342,517       2,038,790         6,847,461         5,659,957                             Gross margin - home sales 694,373   23.5 %   502,079     20.1 %   1,893,292     22.5 %   1,403,254   20.2 % Gross margin - land sales and other 4,490   4.9 %   4,798     9.7 %   49,608     13.8 %   14,448   10.3 %                         Selling, general and administrative expenses 258,199   8.8 %   $ 246,306     9.9 %   922,023     10.9 %   867,442   12.5 % Income from operations 440,664       260,571         1,020,877         550,260                      .....»»

Category: earningsSource: benzingaDec 7th, 2021

The Real Good Food Company Reports Third Quarter 2021 Financial Results

Record Net Sales of $23.0 Million, a 136% Increase Year-Over-Year Pro Forma Cash Balance of $44 Million and Credit Facility Capacity Expanded to $70 Million Company Provides Full Year 2021 and 2022 Outlook and Provides Long-Term Targets CHERRY HILL, N.J., Dec. 07, 2021 (GLOBE NEWSWIRE) -- The Real Good Food Company, Inc. (NASDAQ:RGF) ("Real Good Foods" or the "Company"), a health- and wellness-focused frozen food company, today reported financial results for its third quarter ended September 30, 2021. Third Quarter 2021 Highlights Net sales increased 136% to $23.0 million Gross margin increased 1,190 basis points to 10.2% Adjusted gross margin(1) increased 410 basis points to 17.1% (All comparisons above are to the third quarter of 2020.) "We are pleased with our successful IPO during the month of November and our strong third quarter results," said Bryan Freeman, Executive Chairman. "These results demonstrate the strength of the Real Good Foods brand and consumers' desire for high protein, lower carbohydrate foods. We are in the early stages of penetrating our total addressable market opportunity and are more aggressively working to achieve gross margins in line with our peers." Successful Initial Public Offering Subsequent to the third quarter end, on November 9, 2021, the Company closed its initial public offering ("IPO") in which it offered 5,333,333 shares of its Class A common stock at a price to the public of $12.00 per share for net proceeds of approximately $59.5 million, after deducting underwriting discounts and commissions. The Company primarily intends to use the net proceeds from the offering for working capital and other general corporate purposes, which may include debt paydown, research and development and marketing activities, general and administrative matters, and capital expenditures. Following the completion of the IPO, there was a total of 25,747,566 shares of common stock outstanding, comprised of 6,169,885 shares of Class A common stock and 19,577,681 shares of Class B common stock. Financial Results for the Quarter Ended September 30, 2021 Net sales increased 136% to $23.0 million compared to $9.7 million in the third quarter of 2020. The increase was primarily due to strong growth in sales volumes of the Company's core products (Entrees and Breakfast), driven by expansion in the club channel, and greater demand from existing retail customers. The Company expects sales in its retail channel to continue to accelerate and be driven by recent new customer wins, expanded distribution with existing customers, continued strong velocity growth in core products and new product innovation. Gross profit increased $2.5 million to $2.4 million, and was 10.2% of net sales, for the third quarter of 2021, compared to a gross profit loss of $0.2 million, and a negative 1.7% of net sales for the prior year period. The increase in gross profit and gross margin was primarily due to the absence of $1.4 million in one-time costs resulting from financial hardship of a co-manufacturer and inventory write-downs that occurred in the third quarter of 2020. The remaining $1.1 million increase in gross profit was primarily driven by an increase in net sales, including an increase in the percentage of the Company's products that were self-manufactured, partially offset by increases in labor and raw material costs. Adjusted gross profit(1) increased $2.7 million to $3.9 million, reflecting adjusted gross margin of 17.1% of net sales, compared to $1.3 million, or 13.0% of net sales, in the third quarter of 2020. The increase in adjusted gross profit and adjusted gross margin was primarily due to the increase in net sales, including in the amount of products sold that were self-manufactured, partially offset by increases in labor and raw material costs. Total operating expenses increased by 184% to $7.9 million, or 34.5% of net sales, compared to $2.8 million, or 28.7% of net sales, in the third quarter of 2020. The increase in operating expenses, both in absolute dollars and as a percentage of net sales, was primarily driven by increased investments in marketing, research and development, and selling and distribution expenses to support the growth of the business. Adjusted EBITDA(1) was a loss of $3.0 million compared to a loss of $1.3 million in the third quarter of 2020. The increased adjusted EBITDA loss was primarily driven by higher operating expenses partially offset by higher net sales and gross profit. The higher operating expenses include increased investments in marketing to support brand growth, higher selling costs to support sales growth, and increased personnel expenses related to the build out of the Company's operations, finance and leadership teams. Loss from operations increased by $2.6 million to $5.6 million compared to $3.0 million in the third quarter of 2020. The increase in loss from operations was primarily due to higher operating expenses. These higher operating expenses were partially offset by the $2.5 million increase in gross profit. Net loss increased by $7.6 million to $11.8 million compared to $4.2 million in the third quarter of 2020. The increase in net loss was primarily due to the higher operating expenses, as well as the impact of a change in fair value of convertible debt, which reflects a non-cash adjustment. Balance Sheet Highlights As of September 30, 2021, the Company had cash and cash equivalents of $1.7 million and total debt was $63.6 million, which included $41.1 million of principal amount of convertible notes that converted into shares of Class A common stock and Class B common stock in connection with the IPO. Pro forma cash balance and pro forma debt balance give effect to the net proceeds received from the IPO, the conversion of the convertible notes, the pay down of outstanding debt, pay down of certain contingent liabilities, as well as cash borrowings under a newly amended credit facility, as described below. After considering the effects of the foregoing, the Company's September 30, 2021 pro forma cash balance was $44.0 million, and pro forma debt balance was $21.0 million. Amounts in millions:       Actual Cash at September 30, 2021 $           1.7   Net Proceeds Received from IPO   59.5   Pay down of Debt   (10.2 ) Transaction Expenses   (4.0 ) Contingent Payments   (3.0 ) Pro Forma Cash at September 30, 2021 $     44.0   After the quarter end, the Company amended its existing revolving credit facility to, among other things: 1) increase the maximum borrowing capacity under the revolving credit facility from $18.5 million to $50.0 million; 2) increase the borrowing capacity under the capital expenditure line from $3.0 million to $20.0 million; 3) reduce the interest rate on the revolving credit facility from 12.0% to approximately 7.0%; and 4) extend the maturity date of the facility to November 30, 2025. The Company believes that this pro forma cash balance, along with the increase in borrowing capacity, provide it with sufficient liquidity to fund the business for the foreseeable future. Outlook For the year ending December 31, 2021, the Company currently expects: Net sales of approximately $83 million to $85 million, reflecting an increase of approximately 113% to 118% compared to 2020 Adjusted gross margin of approximately 19.6% to 21.0% Adjusted EBITDA loss of approximately $8.0 million to $9.5 million For the year ending December 31, 2022, the Company currently expects: Net sales of approximately $115 million to $125 million, reflecting an increase of approximately 37% to 49% compared to 2021 Adjusted gross margin to increase on a year-over-year basis Adjusted EBITDA loss of approximately $8 million to $15 million Long-term, the Company currently expects: Net sales growth of at least 30% Adjusted gross margin of at least 30% The Company is not providing guidance for gross margin or net loss, the most directly comparable GAAP measures, and similarly cannot provide a reconciliation between its forecasted adjusted gross margin and gross margin and adjusted EBITDA and net loss 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. (1) Adjusted gross profit, adjusted gross margin, and adjusted EBITDA are non-GAAP financial measures. Adjusted gross profit means, for any reporting period, gross profit adjusted to exclude the impacts of costs and adjustments identified by management as affecting the comparability of our gross profit from period to period. Adjusted gross margin means adjusted gross profit as a percentage of net sales. Adjusted EBITDA means, for any reporting period, net income (loss) before depreciation and amortization, income taxes, and interest expense, adjusted to exclude the impact of transaction expenses, as well as other costs and adjustments identified by management as affecting the comparability of our operating results from period to period. See the information provided under the section entitled "Non-GAAP Financial Measures" within this release for a discussion of why we believe these measures are important, and the reconciliation table at the end of this release for a reconciliation thereof to the most directly comparable GAAP measures. Conference Call and Webcast Details The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details today at 4:30 p.m. ET. The conference call webcast and supplemental presentation will be available on the "Investors" section of the Company's website at www.realgoodfoods.com. To participate on the live call, listeners in the U.S. may dial (877) 451-6152 and international listeners may dial (201) 389-0879. A telephone replay will be available approximately two hours after the call concludes through December 21, 2021, and can be accessed by dialing (844) 512-2921 from the United States, or (412) 317-6671 internationally, and entering the passcode 13725258. About The Real Good Food Company Founded in 2016, Real Good Foods believes there is a better way to enjoy our favorite foods. Its brand commitment, "Real Food You Feel Good About Eating," represents the Company's strong belief that, by eating its food, consumers can enjoy more of their favorite foods and, by doing so, live better lives as part of a healthier lifestyle. Its mission is to make craveable, nutritious comfort foods that are low in carbohydrates, high in protein, and made from gluten- and grain-free real ingredients more accessible to everyone, improve human health, and, in turn, improve the lives of millions of people. Real Good Foods offers delicious options across breakfast, lunch, dinner, and snacking occasions available in over 16,000 stores nationwide, including Walmart, Costco, Kroger, and Target, and directly from its website at www.realgoodfoods.com. Learn more about Real Good Foods by visiting its website or on Instagram at @realgoodfoods, where it has one of the largest social media followings of any brand within the frozen food industry today with nearly 400,000 followers. Non-GAAP Financial MeasuresIn addition to our financial results determined in accordance with generally accepted accounting principles in the United States ("GAAP"), we believe that adjusted gross profit, adjusted gross margin, and adjusted EBITDA, each of which is a non-GAAP financial measure, are useful performance measures and metrics for investors to evaluate current trends in our operations and compare the ongoing financial and operating performance of our business from period to period. In addition, management uses these non-GAAP financial measures to assess our operating performance and for internal planning purposes. We also believe these measures are widely used by investors, securities analysts, and other parties in evaluating companies in our industry as measures of financial and operational performance. However, the non-GAAP financial measures included in this press release have limitations and should not be considered in isolation, as substitutes for, or as superior to, performance measures calculated in accordance with GAAP. Other companies may calculate these measures differently, or may not calculate them at all, which limits the usefulness of these measures as comparative measures. Because of these limitations, we consider, and you should consider, adjusted gross profit, adjusted gross margin, and adjusted EBITDA with other operating and financial performance measures presented in accordance with GAAP. To the extent the Company utilizes such non-GAAP financial measures in the future, it expects to calculate them using a consistent method from period to period. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding our projected financial results, including net sales, gross margin, gross profit, adjusted gross profit, adjusted gross margin, and adjusted EBITDA. We have attempted to identify forward-looking statements by using words such as "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," or "would," and similar expressions or the negative of these expressions.  Forward-looking statements represent our management's current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled "Risk Factors" in our Form S-1, as amended, filed in connection with our IPO. In addition, readers are cautioned that we may make future changes to our business and operations in response to the challenges and impacts of the COVID-19 pandemic, or in response to other business developments, which changes may be inconsistent with our prior forward-looking statements, and which may not be disclosed in future public announcements. Condensed Statements of Operations (In thousands)   THREE MONTHS ENDED   NINE MONTHS ENDED   SEPTEMBER 30,   SEPTEMBER 30,     2021       2020       2021   2020   Net sales $ 23,014     $ 9,745     $ 58,477     $ 27,799   Cost of sales   20,659       9,907       49,447       26,346   Gross profit   2,355       (162 )     9,030       1,453   Operating expenses:               Selling and distribution   4,323       1,754       10,291       5,703   Marketing   1,732       356       3,119       1,936   Administrative   1,875       682       7,677       1,755        Total operating expenses   7,930       2,792       21,087       9,394   Loss from operations   (5,575 )     (2,954 )     (12,057 )     (7,941 ) Interest expense   839       1,262       4,322       3,744   Other income   (309 )     -       (309 )     -   Change in fair value of convertible debt   5,730       -       6,100       -   Loss before income taxes   (11,835 )     (4,216 )     (22,170 )     (11,685 ) Income tax expense   -       -       -       13   Net Loss $ (11,835 )   $ (4,216 )   $ (22,170 )   $ (11,698 ) Preferred return on Series A preferred units   146       136       438       409   Net loss attributable to common unitholders $ (11,981 )   $ (4,352 )   $ (22,608 )   $ (12,107 )            .....»»

Category: earningsSource: benzingaDec 7th, 2021

Why You Should Hold Mid-America Apartment (MAA) Stock Now

A Sun Belt-focused portfolio, strategic redevelopment efforts and a robust balance sheet will support Mid-America Apartment's (MAA) performance. Yet, higher supply in the urban submarkets is a woe. Mid-America Apartment Communities MAA, also known as MAA, is seeing growth in demand and rent in its Sun Belt-focused portfolio, backed by favorable in-migration trends of jobs and households in the region. However, elevated supply, particularly among the apartment communities located in the urban submarkets, is a concern.MAA has a well-diversified portfolio in terms of markets, submarkets, product types and price points. Moreover, a high-quality resident profile resulted in solid collections even amid the pandemic. MAA noted that rent collections in third-quarter 2021 improved, sequentially.The residential REIT has been focusing on its three internal investment programs, such as interior redevelopment, property repositioning projects and Smart Home installations for a while. The programs will help MAA capture upside potential in rent growth, generate accretive returns and boost earnings from its existing asset base in late 2021 and 2022.Additionally, MAA enjoys a robust balance-sheet position, with low leverage and ample availability under its revolving credit facility, enabling it to navigate any negative externalities. As of Sep 30, 2021, $1 billion of combined cash and capacity was available under its unsecured revolving credit facility, net of commercial paper borrowings.Backed by an in-place at-the-market equity share offering program, MAA is well poised to source attractively-priced capital from the equity markets. It also generates 95.1% unencumbered net operating income (NOI), which offers scope for tapping additional secured debt capital if required.Shares of this presently Zacks Rank #2 (Buy) MAA have rallied 30.7% over the past six months, outperforming the industry’s growth of 14.6%. Additionally, the Zacks Consensus Estimate for 2021 funds from operations (FFO) per share has moved up marginally in the past week.Image Source: Zacks Investment ResearchHowever, the new supply of residential properties has been high for the past few years. This expanded supply adversely impacts landlords’ capability to demand more rents, thus resulting in lesser absorption, particularly among the apartment communities located in the urban sub-markets. Moreover, stiff competition in the residential real-estate market curtails MAA’s power to raise the rent or increase occupancy and induces aggressive pricing for acquisitions.While development activities are accretive for long-term value creation, the same require huge capital outlays. An extensive development pipeline heightens MAA’s operational risks by exposing it to construction cost overruns, entitlement delays and lease-up risks.Other Key PicksSome other top-ranked stocks from the REIT sector are Equity Residential EQR, AvalonBay Communities AVB and Equity Lifestyle Properties ELS.The Zacks Consensus Estimate for Equity Residential’s 2021 FFO per share has been raised marginally over the past month. EQR carries a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.Over the last four quarters, Equity Residential’s FFO per share surpassed the consensus estimate thrice and reported in-line results once, the average surprise being 4.20%. Shares of EQR have appreciated 2.5% in the past three months, outperforming the industry’s rally of 2.3%.The Zacks Consensus Estimate for AvalonBay’s current-year FFO per share has been raised 1.3% in the past month. AVB currently holds a Zacks Rank  of 2.Over the last four quarters, AvalonBay’s FFO per share surpassed the consensus estimate on three occasions and missed the mark on the remaining one, the average surprise being 0.82%. Shares of AVB have appreciated 4.8% in the past three months, outperforming the industry’s rally of 2.3%.The Zacks Consensus Estimate for Equity Lifestyle Properties’s 2021 FFO per share has moved 1.6% north in the past two months. ELS currently carries a Zacks Rank of 2.Over the last four quarters, Equity Lifestyle Properties’s FFO per share surpassed the consensus mark on all occasions, the average surprise being 7%. Shares of ELS have inched up 19.7% in the past six months against the industry’s decline of 16%.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AvalonBay Communities, Inc. (AVB): Free Stock Analysis Report Equity Residential (EQR): Free Stock Analysis Report MidAmerica Apartment Communities, Inc. (MAA): Free Stock Analysis Report Equity Lifestyle Properties, Inc. (ELS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Here"s Why You Should Retain Kimco Realty (KIM) Stock Now

Kimco Realty (KIM) is likely to benefit from its focus on the grocery-anchored centers and balance-sheet strengthening moves, though store closures and higher e-commerce adoption remain woes. Kimco Realty Corp. KIM, the owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets, has properties in the drivable first-ring suburbs of its top 20 major metropolitan Sunbelt and coastal markets, which offer several growth drivers. Also, the company’s acquisition of the grocery-anchored shopping center owner — Weingarten Realty Investors — has helped it to benefit from an increased scale, density in the key Sun Belt markets and a broader redevelopment pipeline.The grocery component has been the saving grace of the retail REITs and 79.4% of Kimco’s annual base rent came from the grocery-anchored centers in the third quarter. With a well-located and largely grocery-anchored portfolio that offers essential goods and services, the retail REIT witnessed a decent leasing activity in the third quarter. Kimco signed 411 leases, aggregating 2.1 million square feet of gross leasable area. The favorable trend is expected to continue. The rent-collection figures were also healthy. The company collected approximately 98% base rents during the third quarter.Along with focus on the grocery and home-improvement tenants, Kimco emphasizes the mixed-use assets clustered in the strong economic metropolitan statistical areas. Particularly, KIM is targeting an increase in the net asset value through a selected collection of mixed-use projects, redevelopments and an active investment management.Also, retailers are utilizing these last-mile stores as the indispensable fulfilment and the distribution centers to serve the dense population close by, and outperform the pure e-commerce players on delivery time and cost efficiency. Also, the curbside pick-up, combined with click-and-collect options, will likely continue to gain attention amid the current environment and in the post-COVID era, and the company is focused to capitalize on such trends. Such efforts are likely to enhance Kimco’s competitive advantage in current times.Kimco has been making efforts to bolster its financial flexibility. The retail REIT had more than $2.4 billion of immediate liquidity at the end of the reported quarter, including full availability under its $2-billion unsecured revolving credit facility. Kimco’s consolidated debt maturity profile is 8.7 years. Kimco has 474 unencumbered properties, which represent around 87% of its properties and 88% of its total net operating income.Shares of Kimco have gained 17.8% over the past six months, outperforming its industry’s increase of 4.6%. Moreover, the recent estimate revision trend indicates a favorable outlook as the Zacks Consensus Estimate for the 2021 funds from operations (FFO) per share has been revised marginally upward in the past week. Given the progress on fundamentals and the upward estimate revisions, the stock has decent upside potential for the near term.Image Source: Zacks Investment ResearchHowever, over the recent years, the retail real estate traffic has continued to suffer amid a rapid shift in the customers’ shopping preferences and patterns with online purchases growing by leaps and bounds. These have made retailers reconsider their footprint and eventually opt for store closures.Also, retailers unable to cope with competition are filing bankruptcies. This has emerged as a pressing concern for the retail REITs like Kimco as the trend is curtailing demand for retail real estate space. The situation has been further aggravated amid the social-distancing requirements and higher e-commerce adoption due to the COVID-19 crisis.Currently, Kimco carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Key PicksSome key picks from the retail REIT sector include Simon Property Group SPG, Federal Realty Investment Trust FRT and STORE Capital Corporation STOR.Simon Property Group holds a Zacks Rank of 2 (Buy) at present. Its 2021 FFO per share is expected to increase 23.8% year over year.The Zacks Consensus Estimate for Simon Property Group’s 2021 FFO per share has been revised nearly 3.8% upward in a month. Its long-term growth rate is projected at 8.70%.Federal Realty holds a Zacks Rank of 2 at present. Its long-term growth rate is projected at 8.40%.The Zacks Consensus Estimate for Federal Realty’s 2021 FFO per share has been revised 4.1% upward in a month to $5.32. This suggests a 17.7% increase year over year.The Zacks Consensus Estimate for STORE Capital’s ongoing-year FFO per share has moved marginally north to $1.89 over the past week.STORE Capital’s 2021 FFO per share suggests an increase of 3.3% year over year. Currently, STOR carries a Zacks Rank of 2.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Kimco Realty Corporation (KIM): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis Report STORE Capital Corporation (STOR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 24th, 2021

Here"s Why You Should Hold Regency Centers (REG) Stock Now

While Regency Centers (REG) benefits from the premium portfolio of grocery-anchored shopping centers, the efforts of online retailers to go deeper into the grocery business remain a concern. Regency Centers Corp. REG primarily focuses on building a premium portfolio of grocery-anchored shopping centers that are usually necessity-driven and drive dependable traffic.Regency’s premium shopping centers are situated in the affluent suburban and near urban trade areas, where consumers have high spending power, enabling these to attract top grocers and retailers. As more people are moving to the suburbs, Regency is likely to offer a long-term benefit to its suburban shopping center portfolio.In these uncertain times, the grocery component has been the saving grace of the retail REITs and Regency has numerous industry-leading grocers as tenants. It has a high-quality open-air shopping center portfolio with 80% grocery-anchored neighborhood and community centers. With its focus on necessity, service, convenience and value retailers, Regency’s portfolio comprised 45% of pro-rate annual base rent from the essential retail and services tenancy as of Sep 30, 2021. The significant essential retail businesses at Regency’s centers have enabled its properties to remain open during the pandemic.Regency is focused on strengthening its balance sheet. As of Sep 30, 2021, Regency had full capacity under its $1.2-billion revolving credit facility. Also, the company had no unsecured debt maturities until 2024. This low leverage with limited near-term maturities offers flexibility to REG.Regency also enjoys a large pool of unencumbered assets and good relationships with the lenders. As of Sep 30, 2021, 88.7% of its wholly-owned real estate assets were unencumbered. With a high percentage of such assets, the company can access the secured and unsecured debt markets.Shares of Zacks Rank #3 (Hold) REG have gained 15.8% in the past six months compared with the industry's rally of 5%. Also, the estimate revision trend for the 2021 funds from operations (FFO) per share indicates a favorable outlook for the company as the estimates have been revised 2.4% upward over the past month. Due to the progress on fundamentals and the upward estimate revisions, the REG stock has decent upside potential in the upcoming period.Image Source: Zacks Investment ResearchYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.However, move-outs, store closures and retailer bankruptcies are likely to affect the performance of the retail real estate market in the near term. The efforts of online retailers to go deeper into the grocery business have also emerged as a concern for Regency, which focuses on building a premium portfolio of grocery-anchored shopping centers.As of Sep 30, 2021, Regency’s in-process development and redevelopment projects had estimated net project costs of $327 million and an estimated $144 million of remaining costs to complete these projects, each at Regency’s share. Though a huge development and redevelopment-projects pipeline is encouraging, it exposes REG to various risks such as the rising construction costs and lease-ups.Key PicksSome key picks from the retail REIT sector include Simon Property Group SPG, Federal Realty Investment Trust FRT and STORE Capital Corporation STOR.Simon Property Group holds a Zacks Rank of 2 (Buy), at present. SPG's 2021 FFO per share is expected to increase 23.8% year over year.The Zacks Consensus Estimate for Simon Property Group’s 2021 FFO per share has been revised nearly 4% upward in a month.Federal Realty holds a Zacks Rank of 2, at present. FRT's long-term growth rate is projected at 8.40%.The Zacks Consensus Estimate for Federal Realty’s 2021 FFO per share has been revised 4.1% upward in a month to $5.32.The Zacks Consensus Estimate for STORE Capital’s ongoing-year FFO per share has moved 1.1% north to $1.89 over the past month.STORE Capital’s 2021 FFO per share suggests an increase of 3.3% year over year. Currently, STOR carries a Zacks Rank of 2.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis Report Regency Centers Corporation (REG): Free Stock Analysis Report STORE Capital Corporation (STOR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 22nd, 2021

Omni-Lite Industries Reports Third Quarter Fiscal 2021 Results And Announces Conference Call for Investors to Be Held on Tuesday, November 23, 2021

Third Quarter Fiscal 2021 Revenue of US$1.6 million, an increase of 36% compared to Second Quarter Fiscal 2021 and comparable to Third Quarter Fiscal 2020 Adjusted EBITDA loss of US$66,000, representing a 76% reduction over the year ago fiscal quarter despite comparable revenues in both fiscal quarters Third Quarter Fiscal 2021 Bookings of US$1.7 million, representing a Book-to-Bill ratio of 1.06 Quarter End Backlog of US$1.8 million, as compared to US$1.7 million at the End of Second Quarter Fiscal 2021 Year to Date Free Cash Flow Use of US$176,000, despite a 24% decrease in revenues         TSXV: OML OTCQX: OLNCF LOS ANGELES, Nov. 22, 2021 (GLOBE NEWSWIRE) -- Omni-Lite Industries Canada Inc. ((the ", Company", or "Omni-Lite", TSXV:OML) today reported results for the fiscal third quarter ending September 30, 2021. Full financial results are available at sedar.com. Third Quarter Fiscal 2021 Results Revenue for the third quarter of 2021 was approximately US$1.6 million, an increase of approximately 36% as compared to the second quarter of 2021, and flat as compared to the third quarter of 2020. The increase in revenue compared to the second quarter of 2021 was due to increases in commercial aerospace and defense electronics revenue. Backlog increased from US$1.7 million at end of the second quarter fiscal 2021 to US$1.8 million at the end of third quarter fiscal 2021, driven by a book-to-bill ratio of [1.06]. Adjusted EBITDA(1) loss of approximately US$(66,000) was an improvement of US$192,000 over the second quarter of 2021 and an improvement of US$206,000, or a 76% reduction, as compared to the third quarter of 2020. Free Cash Flow(1) was a use approximately US$236,000 in the third quarter, as compared to a use of approximately US$93,000 in the second quarter of 2021, driven primarily by increased working capital resulting from sequential quarterly revenue increase. Subsequent to the Company's fiscal 2021 third quarter end, Omni-Lite was awarded firm orders valued in excess of US$250,000 for military-use forged components used in consumable munition applications. The delivery of these orders is expected to occur over the next two years with the potential for follow-on contract opportunities. A key aspect of these contract wins was the Company‘s expansion of its sales channels in the European defense market with the appointment of a new reseller partner that could lead to further penetration of defense and commercial customer accounts in this strategic market for Omni-Lite. Management Comments David Robbins, Omni-Lite's CEO, stated "Omni-Lite Industries sales in third quarter fiscal year 2021 reflected the start of some recovery in the commercial aerospace market and an increase in defense electronics platform wins. A continuation of these trends including the expansion in the broader European markets would enable the Company to return to normalized positive adjusted EBITDA margins. We continue to focus on operational efficiency and performance and look to capitalize on increased needs for reliable suppliers to support production needs; and, our balance sheet and liquidity position remains strong. The Company ended the third quarter of fiscal 2021 with approximately US$1.4 million in cash and approximately US$1.5 million available under its revolving credit facility. We continue to evaluate M&A opportunities and are progressing with our efforts to monetize our real estate holding to fuel potential in this area," remarked, Mr. Robbins......»»

Category: earningsSource: benzingaNov 22nd, 2021