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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

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

Bally"s Corporation Announces Third Quarter 2021 Results

PROVIDENCE, R.I., Nov. 4, 2021 /PRNewswire/ -- Bally's Corporation (NYSE:BALY) today reported financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial and Recent Highlights Record revenue of $314.8 million, an increase of $198.2 million, or 169.9%, year over year Net loss of $14.7 million compared to net income of $6.7 million for the comparable period; Adjusted EBITDA of $78.0 million, an increase of $40.0 million year over year Retail Casinos revenue was a record high of $301.6 million Retail Casinos net income of $49.4 million versus $22.1 million for the comparable period; Adjusted Retail Casinos EBITDAR of $106.5 million versus $43.5 million for the comparable period Completed acquisition of Gamesys on October 1st Gamesys Revenue of $278.6 million a record high on a constant currency basis; Net loss and Adjusted EBITDA of $8.7 million and $83.8 million, respectively(1) (1) The Company acquired Gamesys on October 1, 2021. Accordingly, Gamesys results are not included in the Company's results as of and for the three and nine months ended September 30, 2021. Lee Fenton, Chief Executive Officer said, "On October 1, 2021, Bally's completed its transformational acquisition of Gamesys Group - a strategic combination that further advances Bally's global, data-driven, omni-channel strategy. As a result, our business is evolving from a regional casino operator into an industry leader in retail, sports, media and iGaming, which will see us harness a set of assets that provides a formidable platform for growth as a digital-first leader in global gaming entertainment." Fenton continued, "This quarter, Retail Casinos had $301.6 million of revenue and $106.5 million of Adjusted Retail Casinos EBITDAR. The quarter was negatively impacted by approximately $6 million of losses related to natural disasters, including two hurricanes and wildfires in Nevada. North America Interactive sales doubled from last quarter at $11.4 million, with Adjusted EBITDA of ($5.5) million, which was in line with our expectations. Adjusted EBITDA for the Company of $78.0 million includes $11.4 million of rent expense and $11.1 million of corporate expense. Gamesys had record Revenue and Adjusted EBITDA on a constant currency basis for the quarter, which will be consolidated into Bally's results starting with the fourth quarter." Summary of Financial Results Three Months Ended September 30, (in thousands, except percentages) 2021 2020 Revenue $ 314,779 $ 116,624 Income from operations $ 27,734 $ 23,383 Income from operations margin 8.8 % 20.0 % Net (loss) income $ (14,747) $ 6,723 Net (loss) income margin (4.7) % 5.8 % Adjusted EBITDA(1) $ 77,977 $ 38,005 Adjusted EBITDA margin(1) 24.8 % 32.6 % Retail Casinos net income $ 49,387 $ 22,083 Retail Casinos net income margin 16.4 % 19.2 % Adjusted Retail Casinos EBITDAR(1) $ 106,534 $ 43,512 Adjusted Retail Casinos EBITDAR margin(1) 35.3 % 37.8 %  (1) Refer to tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP. Global Refinancing On August 20, 2021, the Company issued $750.0 million aggregate principal amount of senior notes due 2029 and $750.0 million aggregate principal amount of senior notes due 2031. On October 1, 2021, the Company entered into a credit agreement for senior secured credit facilities consisting of a $1.945 billion senior secured first lien term loan facility and an undrawn $620.0 million senior secured first lien revolving credit facility. The proceeds of the new credit facilities and the new senior notes plus other resources were used to repay the Company's existing debt, pay a portion of the Gamesys acquisition price and repay Gamesys debt. On October 1, 2021, gross debt was $3.445 billion with no drawings on the senior secured first lien revolving credit facility. Shares Outstanding As of October 31, 2021, the Company had 54,363,371 common shares issued and outstanding. Not included in the common shares outstanding are the Company-issued warrants, options and other contingent consideration provided as part of acquisitions and strategic partnerships that, as a result of the exercise of warrants and options, or the achievement of certain performance targets, may result in the issuance of common shares in future periods. These incremental shares are summarized below: Sinclair Penny Warrants 7,911,724 Sinclair Performance Warrants 3,279,337 Sinclair Options(1) 1,639,669 Monkey Knife Fight penny warrants 24,611 Monkey Knife Fight contingent shares 787,557 Telescope contingent shares 75,678 SportCaller contingent shares(2) 230,830 Outstanding awards under Equity Incentive Plans 895,988 14,845,394 (1) Consists of four equal tranches to purchase shares with exercise prices ranging from $30.00 to $45.00 per share, exercisable over a seven-year period beginning on the fourth anniversary of the November 18, 2020 closing of the Sinclair Agreement. (2)  The contingent consideration related to the SportCaller acquisition is 10M EUR, payable in shares subject to certain post-acquisition earnout targets and based on share price at time of payment.  For purposes of this estimate, the Company used the EUR>USD conversion rate of 1.1574 as of September 30, 2021 and the closing share price of Company common shares of $50.14 per share to calculate the shares expected to be issued if all earn-out targets are met. Reconciliation of GAAP Measures to Non-GAAP Measures To supplement the financial information presented on a generally accepted accounting principles ("GAAP") basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR margin, which exclude certain items described below. The Company believes these measures represent important measures of financial performance that provide useful information that is helpful in understanding the Company's ongoing operating results. The reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below. "Adjusted EBITDA" is earnings, or loss, for the Company, or where noted the Company's reportable segments, before, in each case, interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, acquisition, integration and restructuring expenses, share-based compensation, gain on sale-leaseback, and certain other gains or losses as well as, when presented for the Company's reporting segments, an adjustment related to the allocation of corporate costs among segments. Adjusted EBITDA margin is measured as Adjusted EBITDA as a percentage of revenue. "Adjusted Retail Casinos EBITDAR" is Adjusted EBITDA (as defined above) for the Company's East and West segments plus rent expense associated with triple net operating leases with GLPI for the real estate assets used in the operation of Bally's Evansville and Dover Downs and the assumption of the lease for real estate and land underlying the operations of the Bally's Lake Tahoe property. Adjusted Retail Casinos EBITDAR margin is measured as Adjusted Retail Casinos EBITDAR as a percentage of revenue. Management has historically used Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR margin when evaluating operating performance because the Company believes that these metrics are necessary to provide a full understanding of the Company's core operating results and as a means to evaluate period-to-period performance. Management also believes that Adjusted EBITDA is a measure that is widely used for evaluating operating performance of companies in the Company's industry and a principal basis for valuing resort and gaming companies like the Company. Management of the Company believes that while certain items excluded from Adjusted EBITDA and Adjusted Retail Casinos EBITDAR may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods presented or they may not relate specifically to current operating trends or be indicative of future results. Neither Adjusted EBITDA or Adjusted Retail Casinos EBITDAR should be construed as an alternative to GAAP net income or GAAP diluted EPS, respectively, as an indicator of the Company's performance. In addition, Adjusted EBITDA or Adjusted EBITDAR as used by the Company may not be defined in the same manner as other companies in the Company's industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Third Quarter Conference Call The Company's third quarter 2021 earnings conference call and audio webcast will be held today, Thursday, November 4, 2021 at 10:00 AM EDT. To access the conference call, please dial (877) 876-9176 (U.S. toll-free) and reference conference ID BALYQ32021. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company's website at www.ballys.com. An online archive of the webcast will be available on the Company's website for 120 days. Supplemental materials have also been posted to the Investors section of the website, under Events & Presentations. About Bally's Corporation Bally's Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 14 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 15 states. It also owns Gamesys Group, a leading, global, online gaming operator, Bally Interactive, a first-in-class sports betting platform, Monkey Knife Fight, the fastest growing daily fantasy sports site in North America, SportCaller, a leading, global B2B free-to-play game provider, and Telescope Inc., a leading provider of real-time fan engagement solutions. With approximately 10,000 employees, the Company's Casino operations include more than 15,800 slot machines, 500 table games and 5,300 hotel rooms. Upon closing the previously announced Tropicana Las Vegas (NV) transaction, as well as completing the construction of a land-based casino near the Nittany Mall in State College, PA, Bally's will own and manage 16 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY". Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws.  Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by BALY in this press release, its reports filed with the Securities and Exchange Commission (the "SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for BALY to predict or identify all such events or how they may affect it.  BALY has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included it the Company's Annual reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995.   Investor Contact Media Contact Robert Lavan Richard Goldman / David Gill Senior Vice President, Finance and Investor Relations Kekst CNC 401-475-8564 646-847-6102 / 917-842-5384 InvestorRelations@ballys.com BallysMediaInquiries@kekstcnc.com   BALLY'S CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share data) September 30,2021 December 31,2020 Assets Cash and cash equivalents $ 164,259 $ 123,445 Restricted cash 1,844,758 3,110 Accounts receivable, net 39,770 14,798 Inventory 12,048 9,296 Tax receivable 102,388 84,483 Prepaid expenses and other current assets 79,255 53,823 Total current assets 2,242,478 288,955 Property and equipment, net 780,656 749,029 Right of use assets, net 499,133 36,112 Goodwill 444,908 186,979 Intangible assets, net 996,686 663,395 Other assets 5,842 5,385 Total assets $ 4,969,703 $ 1,929,855 Liabilities and Stockholders' Equity Current portion of long-term debt $ 5,750 $ 5,750 Current portion of lease liabilities 20,567 1,520 Accounts payable 36,976 15,869 Accrued liabilities 207,283 120,055 Total current liabilities 270,576 143,194 Long-term debt, net 2,556,421 1,094,105 Long-term portion of lease liabilities 504,885 62,025 Pension benefit obligations 8,147 9,215 Deferred tax liability 63,123 36,983 Naming rights liabilities 190,270 243,965 Contingent consideration payable 43,691 — Other long-term liabilities 15,139 13,770 Total liabilities 3,652,252 1,603,257 Commitments and contingencies Stockholders' equity: Common stock ($0.01 par value, 200,000,000 shares authorized; 44,581,568 and 30,685,938 shares issued; 44,581,568 and 30,685,938 shares outstanding) 445 307 Preferred stock ($0.01 par value; 10,000,000 shares authorized; no shares outstanding) — — Additional paid-in-capital 1,368,908 294,643 Treasury stock, at cost — — Retained earnings (8,328) 34,792 Accumulated other comprehensive loss (47,334) (3,144) Total Bally's Corporation stockholders' equity 1,313,691 326,598 Non-controlling interest 3,760 — Total stockholders' equity 1,317,451 326,598 Total liabilities and stockholders' equity $ 4,969,703 $ 1,929,855   BALLY'S CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) Three Months EndedSeptember 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue: Gaming $ 227,594 $ 96,588 $ 585,791 $ 196,191 Racing 2,022 1,684 6,593 4,817 Hotel 32,903 6,874 68,277 16,635 Food and beverage 29,504 6,889 68,386 23,875 Other 22,756 4,589 45,731 13,178 Total revenue 314,779 116,624 774,778 254,696 Operating (income) costs and expenses: Gaming 75,174 25,996 182,059 59,080 Racing 1,996 1,681 5,715 4,877 Hotel 9,413 2,482 22,068 6,926 Food and beverage 21,419 6,016 50,632 21,951 Other 7,624 408 11,442.....»»

Category: earningsSource: benzingaNov 4th, 2021

VEREIT® Announces Third Quarter 2021 Operating Results

PHOENIX, Oct. 29, 2021 /PRNewswire/ -- VEREIT, Inc. (NYSE:VER) ("VEREIT" or the "Company") announced today its operating results for the three months ending September 30, 2021. The Company anticipates closing its previously announced merger with Realty Income Corporation on November 1, 2021. Third Quarter 2021 Financial and Operating Highlights Net income of $61.6 million and net income per diluted share of $0.25 Achieved $0.83 AFFO per diluted share, representing a 7.8% increase compared to the same quarter in 2020 Rent collection of 99.1% Compared to last quarter, Total debt - as reported increased from $5.6 billion to $5.7 billion; Adjusted Principal Outstanding remained at $5.8 billion; Net Debt increased from $5.5 billion to $5.8 billion; and Net Debt to Normalized EBITDA increased from 5.46x to 5.75x. Debt metrics were impacted by the redemption of $373.0 million of the Company's 6.7% Series F Preferred Stock during the quarter Year-To-Date Transaction Highlights as of October 27, 2021 Invested over $1 billion of capital, including $530.0 million in property acquisitions and build-to-suits placed into service, along with approximately $473.0 million allocated toward the full redemption of the Company's 6.7% Series F Preferred Stock Office dispositions totaled $287.4 million reducing office exposure to 14.2% as of quarter-end Strategic dispositions totaled $162.5 million Third Quarter 2021 Financial Results Total RevenuesTotal revenues for the quarter ended September 30, 2021 decreased $5.1 million to $290.2 million as compared to total revenues of $295.3 million for the same quarter in 2020. Net Income and Net Income Attributable to Common Stockholders per Diluted ShareNet income for the quarter ended September 30, 2021 decreased $37.3 million to $61.6 million as compared to net income of $98.9 million for the same quarter in 2020, and net income per diluted share decreased $0.16 to $0.25 for the quarter ended September 30, 2021, as compared to net income per diluted share of $0.41 for the same quarter in 2020. Normalized EBITDANormalized EBITDA for the quarter ended September 30, 2021 increased $0.7 million to $253.6 million as compared to Normalized EBITDA of $252.9 million for the same quarter in 2020. Funds From Operations Attributable to Common Stockholders and Limited Partners ("FFO") and FFO per Diluted Share FFO for the quarter ended September 30, 2021 increased $4.8 million to $176.0 million, as compared to $171.2 million for the same quarter in 2020, and FFO per diluted share decreased $0.03 to $0.76 for the quarter ended September 30, 2021, as compared to FFO per diluted share of $0.79 for the same quarter in 2020. Adjusted FFO Attributable to Common Stockholders and Limited Partners ("AFFO") and AFFO per Diluted ShareAFFO for the quarter ended September 30, 2021 increased $25.1 million to $191.6 million, as compared to $166.5 million for the same quarter in 2020, and AFFO per diluted share increased $0.06 to $0.83 for the quarter ended September 30, 2021, as compared to $0.77 for the same quarter in 2020. Balance Sheet and LiquidityAs of the end of the third quarter, the Company had corporate liquidity of approximately $1.4 billion, predominantly comprised of  $1.4 billion of availability under its credit facility. In addition, secured debt was reduced by $15.3 million. Consolidated Financial StatisticsFinancial Statistics as of the quarter ended September 30, 2021 are as follows:  Net Debt to Normalized EBITDA of 5.75x, Fixed Charge Coverage Ratio of 4.2x, Unencumbered Asset Ratio of 86.8%, Net Debt to Gross Real Estate Investments of 40.0%, and Weighted Average Debt Term of 5.5 years. Real Estate Portfolio As of September 30, 2021, the Company's portfolio consisted of 3,882 properties with total portfolio occupancy of 97.6%, investment grade tenancy of 38.0% and a weighted-average remaining lease term of 8.4 years. During the quarter ended September 30, 2021, same-store contract rental revenue (3,723 properties) increased 3.2% as compared to the same quarter in 2020.  The weighted-average rent coverage for retail and restaurant properties was 2.70x. Real Estate Leasing Activity During the third quarter, the Company entered into 56 new and renewal leases on approximately 1.2 million square feet, or 1.4% of the portfolio, including 0.2 million square feet of early renewals.  Year-to-date, the Company entered into 169 new and renewal leases on approximately 4.5 million square feet, or 5.1% of the portfolio, including 1.7 million square feet of early renewals. Rent recapture year-to-date approximated 98% of prior rents on an initial cash basis, including early renewals. AcquisitionsDuring the quarter ended September 30, 2021, the Company invested in 28 properties for $100.5 million at an average cash cap rate of 6.8%.  Office DispositionsDuring the quarter ended September 30, 2021, the Company disposed of one office property for an aggregate sales price of $16.6 million at a gain of $0.7 million. Strategic DispositionsDuring the quarter ended September 30, 2021, the Company disposed of 30 properties for an aggregate sales price of $46.6 million.  Of this amount, $5.4 million was used in the total weighted average cash cap rate calculation of 8.0%.  The gain on third quarter strategic dispositions was $2.6 million. COVID-19 Company UpdateAs of October 20, 2021, VEREIT had received rent of approximately 99.1% for the third quarter of 2021, which is based on the terms of lease agreements in effect at January 1, 2021 and excludes tenants being accounted for on a cash basis.  The property type breakdown for rent collection is as follows: Property Type Q3 2021 Total Retail 99% Casual Dining 100% Quick Service 98% Total Restaurant 99% Total Office 99% Total Industrial 99% As of October 20, 2021, we collected $16.8 million of deferred rent, representing approximately 100% of amounts due through September 30, 2021, or 88.3% of total executed deferrals. Subsequent Events AcquisitionsFrom October 1, 2021 through October 27, 2021, the Company acquired 16 properties for $81.4 million, bringing acquisitions and build-to-suits placed into service year-to-date through October 27, 2021, to $530.0 million. Strategic DispositionsFrom October 1, 2021 through October 27, 2021, the Company disposed of 4 properties for an aggregate sales price of $6.6 million, bringing strategic dispositions year-to-date through October  27, 2021, to approximately $162.5 million. Audio Webcast and Call DetailsIn light of the Company's proposed merger with Realty Income, the Company will no longer be holding earnings conference calls. About the CompanyVEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S.  The Company has total real estate investments of $14.6 billion including approximately 3,900 properties and 88.7 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. VEREIT uses, and until the merger closes intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.  Additional information about VEREIT can be found through social media platforms such as Twitter and  LinkedIn. About the Data Prior period shares and per share amounts have been updated to reflect the reverse stock split, which took effect on December 17, 2020. As previously disclosed, the Company identified an overstatement in amounts recorded to depreciation expense. The Company revised the accompanying statement of operations for the three months ended September  30, 2020 to reduce depreciation and amortization expense by $0.9 million. Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to cover estimated tax, insurance and common area maintenance expenses, including the Company's pro rata share of such amounts related to properties owned by unconsolidated joint ventures.  Percentages are based on the terms of the lease agreements in effect at January 1, 2021 and exclude rent due and cash received for leases being accounted for on a cash basis as of January 1, 2021. This change better reflects normalized collections and has a very modest impact of approximately 0.4%. Percentages  also exclude any tenants in bankruptcy prior to the pandemic. Descriptions of FFO and AFFO, EBITDA and Normalized EBITDA, Principal Outstanding and Adjusted Principal Outstanding, Net Debt, Interest Expense, Excluding Non-Cash Amortization, Fixed Charge Coverage Ratio, Net Debt to Normalized EBITDA Annualized Ratio, Net Debt Leverage Ratio, Unencumbered Asset Ratio, Contract Rental Revenue, and Rent Coverage are provided below. Refer to the subsequent tables for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure and the calculations of these financial ratios. Contract Rental Revenue Includes minimum rent, percentage rent and other contingent consideration, and rental revenue from parking and storage space and the Company's pro rata share of such revenues from properties owned by Unconsolidated Joint Ventures. Contract Rental Revenue excludes GAAP adjustments, such as straight-line rent and amortization of above-market lease assets and below-market lease liabilities. Contract Rental Revenue includes such revenues from properties subject to a direct financing lease. The Company believes that Contract Rental Revenue is a useful non-GAAP supplemental measure to investors and analysts for assessing performance. However, Contract Rental Revenue should not be considered as an alternative to revenue, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. Contract Rental Revenue may not be comparable to similarly titled measures of other companies. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") and Normalized EBITDA Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to unconsolidated partnerships and joint ventures. We calculated EBITDAre in accordance with Nareit's definition described above. In addition to EBITDAre, we use Normalized EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt and amortization of intangibles, above-market lease assets and below-market lease liabilities. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. The Company uses Normalized EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Normalized EBITDA may not be comparable to similarly titled measures of other companies. Fixed Charge Coverage RatioFixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization on Adjusted Principal Outstanding and (iii) dividends attributable to preferred shares divided by Normalized EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations. Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO")Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of a REIT. FFO is not equivalent to our net income or loss as determined under U.S. GAAP. Nareit defines FFO as net income or loss computed in accordance with U.S. GAAP adjusted for gains or losses from disposition of property, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to unconsolidated partnerships and joint ventures. We calculate FFO in accordance with Nareit's definition described above. In addition to FFO, we use AFFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. AFFO, as defined by the Company, excludes from FFO non-routine items such as acquisition-related expenses, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, straight-line rent, net direct financing lease adjustments, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, equity-based compensation and amortization of intangible assets, deferred financing costs, premiums and discounts on debt and investments, above-market lease assets and below-market lease liabilities. Management believes that excluding these items from FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. AFFO allows for a comparison of the performance of our operations with other publicly-traded REITs, as AFFO, or an equivalent measure, is routinely reported by publicly-traded REITs, and we believe often used by analysts and investors for comparison purposes. For all of these reasons, we believe FFO and AFFO, in addition to net income (loss), as defined by U.S. GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and AFFO the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate AFFO and its use as a non-GAAP financial performance measure. Gross Real Estate InvestmentsGross Real Estate Investments represent total gross real estate and related assets of Operating Properties, equity investments in the Cole REITs, investment in direct financing leases, investment securities backed by real estate and mortgage notes receivable, and the Company's pro rata share of such amounts related to properties owned by Unconsolidated Joint Ventures,  net of gross intangible lease liabilities. We believe that the presentation of Gross Real Estate Investments, which shows our total investments in real estate and related assets, in connection with Net Debt, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Interest Expense, Excluding Non-Cash Amortization Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of  the Unconsolidated Joint Ventures' outstanding principal balance.  This measure excludes the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP. We believe that the presentation of Interest Expense, excluding non-cash amortization, which shows the interest expense on our contractual debt obligations, provides useful information to investors to assess our overall solvency and financial flexibility. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP. Net Debt Leverage RatioNet Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments. We believe that the presentation of Net Debt Leverage Ratio provides useful information to investors because our management reviews Net Debt Leverage Ratio as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Debt, Principal Outstanding and Adjusted Principal Outstanding Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the Unconsolidated Joint Ventures' outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of the Unconsolidated Joint Ventures' cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Debt to Normalized EBITDA Annualized Ratio Net Debt to Normalized EBITDA Annualized ("Net Debt to Normalized EBITDA") equals Net Debt divided by the respective quarter Normalized EBITDA multiplied by four. We believe that the presentation of Net Debt to Normalized EBITDA Annualized provides useful information to investors because our management reviews Net Debt to Normalized EBITDA Annualized as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Rent CoverageRent Coverage is calculated as our tenants' property level EBITDAR (earnings before interest, tax, depreciation, amortization and rent), prior to the deduction of any corporate overhead expenses, for the most recently provided trailing twelve-month period, divided by annualized September 2021 rent per the lease terms. Unencumbered Asset RatioUnencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage. Unconsolidated Joint Ventures Unconsolidated Joint Ventures include the Company's investments in unconsolidated joint ventures formed to acquire and own real estate properties and exclude other investments in unconsolidated entities. Forward-Looking StatementsInformation set forth herein contains "forward-looking statements" which reflect the Company's expectations and projections regarding future events and plans, the Company's future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, rent relief requests, rent relief granted, the payment of future dividends, the impact of the coronavirus (COVID-19) on the Company's business, and the pending merger (the "Merger") with Realty Income Corporation. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are  difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the Company's ability to consummate the proposed Merger and the timing of the closing of the proposed Merger; the potential impact of the announcement of the proposed transactions or consummation of the proposed transactions on business relationships, including with tenants, clients, employees, customers and competitors;  litigation associated with the Merger; costs, fees, expenses and charges related to the proposed transactions; risks as a result of the restrictions imposed by operating covenants contained in the Merger Agreement restricting the Company generally from issuing equity, incurring or pre-paying debt and limitations on the use of its revolving credit facility; the duration and extent of the impact of COVID-19 on our business and the businesses of our tenants (including their ability to timely make rental payments) and the economy generally; federal, state or local legislation or regulation that could impact the timely payment of rent by tenants in light of COVID-19; the Company's ability to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all; risks associated with tenant, geographic and industry concentrations with respect to the Company's properties; risks accompanying the management of its industrial and office partnerships; the impact of impairment charges in respect of certain of the Company's properties; unexpected costs or liabilities that may arise from potential dispositions, including related to limited partnership, tenant-in-common and Delaware statutory trust real estate programs and the Company's management with respect to such programs; competition in the acquisition and disposition of properties and in the leasing of its properties including that the Company may be unable to acquire, dispose of, or lease properties on advantageous terms or at all; risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants, which are heightened as a result of the COVID-19 pandemic; risks associated with the Company's substantial indebtedness, including that such indebtedness may affect the Company's ability to pay dividends and that the terms and restrictions ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaOct 30th, 2021

CORRECTING and REPLACING – Quaint Oak Bancorp, Inc. Announces Third Quarter Earnings

SOUTHAMPTON, Pa., Oct. 29, 2021 (GLOBE NEWSWIRE) -- In a release issued October 27, 2021 under the same headline for Quaint Oak Bancorp, Inc. (OTCQB:QNTO), under the table heading "Per Common Share Data," the book value per share was stated as $17.47 at the three and nine months ended September 30, 2021. The correct figure should be $16.35. The corrected release follows: Quaint Oak Bancorp, Inc. (the "Company") (OTCQB:QNTO), the holding company for Quaint Oak Bank (the "Bank"), announced today that net income for the quarter ended September 30, 2021 was $1.8 million, or $0.89 per basic and $0.85 per diluted share, compared to $1.0 million, or $0.51 per basic and $0.50 per diluted share for the same period in 2020. Net income for the nine months ended September 30, 2021 was $4.3 million, or $2.17 per basic and $2.07 per diluted share, compared to $2.2 million, or $1.10 per basic and $1.08 per diluted share for the same period in 2020. Robert T. Strong, President and Chief Executive Officer stated, "I am very pleased to present the Company's earnings for the quarter ended September 30, 2021 which exceeded $1.7 million, an increase of 76.8% over the same period in 2020. Additionally, the Company's earnings for the nine months ended September 30, 2021 were $4.3 million, an increase of 99.0% over the same period in 2020. Total asset growth was 10.7% along with deposit growth of 22.7% and loan growth of 6.6% at quarter end when compared to balances of December 31, 2020. The Bank continued curtailment of high rate CD dependency as evidenced by a CD portfolio reduction of 15.3% coupled with growth in our checking accounts of 35.7% and MMA portfolio of 92.0% at period end when compared to balances of December 31, 2020. This strategic posturing has resulted in an average cost of funds for the three months ended September 30, 2021 of 0.96%." Mr. Strong added, "We recently announced the launch of Oakmont Commercial, LLC, a multi-state specialty commercial real estate finance company as an additional subsidiary company of Quaint Oak Bank. Oakmont Commercial is intended to expand our engagement in this specialty line of Commercial Real Estate lending to a National program level. We have been able to initiate the formation of this company through a staged addition of an experienced leadership team. The addition of this company adds to the synergy of our existing Family of Companies as we continue to grow together." Mr. Strong commented, "Our Bank is also in the process of expanding its wholly owned subsidiary, Quaint Oak Real Estate, LLC. Two new offices have been opened, one in Chalfont, Pa. along with one in Doylestown, Pa. This initiative expands the Real Estate Company into the Delaware Valley market in addition to the Lehigh Valley market initially served. With the expansion comes new, experienced, high profile management. Again, the purpose of this expansion is to add to the synergy of our existing Family of Companies." Mr. Strong continued, "Our Bank's wholly owned subsidiary, Quaint Oak Mortgage, LLC has again achieved the designation of one of the "Fastest Growing Companies" in the Lehigh Valley as designated by Lehigh Valley Business. The Mortgage Company has received this award for an astounding six years in a row. The Mortgage Company place tenth in a field of thirty companies who qualified for the award. This award was granted for increased volume during the year 2020 while operating in the depth of the pandemic. Quite an achievement. Additionally, in its own version of expansion, the Mortgage Company has recently launched "QO Direct". This program is a state of the art, automated application process that is intended to expand the Mortgage Company's field of service to a multi-state level." Mr. Strong concluded, "As previously reported, the Company declared a third quarterly cash dividend this year announced October 13, 2021 and payable November 8, 2021. Additionally, I am pleased to report that total stockholders' equity increased 21.9% at September 30, 2021 compared to December 31, 2020. As always, in conjunction with having maintained a strong repurchase plan, our current and continued business strategy includes long-term profitability and payment of dividends reflecting our strong commitment to shareholder value." As it has since the start of the COVID-19 pandemic, the Company continues to assess the effects of the pandemic on its employees, customers and the communities we serve. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted. The CARES Act contains many provisions related to banking, lending, mortgage forbearance and taxation. Since March 2020, the Company has continued to work diligently to help support its existing and new customers through the SBA Paycheck Protection Program ("PPP"), loan modifications, loan deferrals and fee waivers. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") became law. The Economic Aid Act opened a new PPP loan period for first loans and implemented a second loan draw for certain PPP borrowers, each through May 31, 2021. Under the first round the Company funded 854 PPP loans totaling $95.1 million. As of September 30, 2021, 831 of these first round PPP loans totaling $88.9 million were forgiven under the SBA forgiveness program. Under the second round of PPP the Company funded 985 PPP loans totaling $88.4 million as of September 30, 2021. As of September 30, 2021, 304 of the second round PPP loans totaling $18.6 million have been forgiven under the SBA forgiveness program. The Bank also continues to work with our customers affected by COVID-19 through payment accommodations on their loans. Borrowers who were current prior to becoming affected by COVID-19, that received payment accommodations as a result of the pandemic, generally are not reported as past due. Effects of COVID-19 may negatively impact management assumptions and estimates, such as the allowance for loan losses. The Bank continues to evaluate all payment accommodations to customers to identify and quantify any impact they might have on the Bank. However, it is difficult to assess or predict how and to what extent COVID-19 will affect the Company in the future. On January 4, 2021, Quaint Oak Bank, the wholly-owned subsidiary of Quaint Oak Bancorp, Inc., invested $3.0 million for a 51% majority ownership interest in Oakmont Capital Holdings, LLC ("Oakmont"), a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont has been providing commercial equipment financing and working capital throughout all 50 states since 1998. Quaint Oak Bank and Oakmont have had an existing business relationship since 2015. The investment in Oakmont provides additional financial resources to support Oakmont's national expansion plans within the equipment finance industry as well as support an expansion of Oakmont's business lines, while adding an equipment finance company to Quaint Oak Bank's subsidiary companies. The financial results that follow include Quaint Oak Bank's investment in Oakmont. Net income amounted to $1.8 million for the three months ended September 30, 2021, an increase of $774,000, or 76.8%, compared to net income of $1.0 million for the three months ended September 30, 2020. The increase in net income on a comparative quarterly basis was primarily the result of an increase in net interest income of $2.1 million and an increase in non-interest income of $1.7 million, partially offset by an increase in non-interest expense of $2.3 million, an increase in the provision for income taxes of $306,000, and an increase in the provision for loan losses of $356,000. The $2.1 million or 74.9% increase in net interest income for the three months ended September 30, 2021 over the comparable period in 2020 was driven by a $1.8 million, or 42.5%, increase in interest income. The increase in interest income was primarily due to a $128.0 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $360.5 million for the three months ended September 30, 2020 to an average balance of $488.5 million for the three months ended September 30, 2021, and had the effect of increasing interest income $1.4 million. Also contributing to the increase in interest income was a 36 basis point increase in the yield on average loans receivable, net, including loans held for sale, which increased from 4.51% for the three months ended September 30, 2020 to 4.87% for the three months ended September 30, 2021, and had the effect of increasing interest income $442,000.   The increase in yield was primarily due to the increase in amortization of deferred loan fees related to forgiven PPP loans. The $354,000, or 26.1%, decrease in interest expense was primarily attributable to an 82 basis point decrease in rate on average certificate of deposit accounts, which decreased from 1.86% for the three months ended September 30, 2020 to 1.04% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $344,000. Interest expense on deposits continues to be actively managed to lower our cost of funds. This decrease was also partially attributable to a $29.8 million decrease in average certificate of deposit accounts which decreased from an average balance of $198.0 million for the three months ended September 30, 2020 to an average balance of $168.2 million for the three months ended September 30, 2021, and had the effect of decreasing interest expense $138,000. This decrease in interest expense was partially offset by a $139.8 million increase in average money market accounts which increased from an average balance of $52.7 million for the three months ended September 30, 2020 to an average balance of $192.5 million for the three months ended September 30, 2021, and had the effect of increasing interest expense by $294,000. This increase in money market interest expense was partially offset by a 29 basis point decrease in the rate on average money market accounts, which decreased from 0.84% for the three months ended September 30, 2020 to 0.55% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $142,000. The average interest rate spread increased from 2.58% for the three months ended September 30, 2020 to 3.62% for the three months ended September 30, 2021 while the net interest margin increased from 2.84% for the three months ended September 30, 2020 to 3.82% for the three months ended September 30, 2021.   The $356,000, or 177.1%, increase in the provision for loan losses for the three months ended September 30, 2021 over the three months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $1.7 million, or 90.7%, increase in non-interest income for the three months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $657,000, or 54.3%, increase in net gain on loans held for sale, a $475,000 increase in loan servicing income, a $350,000 increase in gain on sales from SBA loans, a $204,000, or 51.0%, increase in mortgage banking, equipment lending, and title abstract fees, a $110,000 increase in net gains on sale and write-downs of other real estate owned, an $11,000, or 16.2%, increase in real estate sales commissions, net and a $3,000, or 2.3%, increase in insurance commissions. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the three months ended September 30, 2021. These increases were partially offset by a $106,000, or 73.6%, decrease in other fees and service charges. The $2.3 million, or 72.7%, increase in non-interest expense for the three months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $2.0 million, or 91.1%, increase in salaries and employee benefits expense, a $128,000, or 51.0%, increase in occupancy and equipment expense, a $67,000, or 25.9%, increase in other expense, a $59,000, or 155.3%, increase in FDIC deposit insurance assessment, a $57,000, or 32.2%, increase in data processing expense, and a $35,000, or 46.7%, increase in advertising expense. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the three months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense. The increase in non-interest expense was partially offset by a $9,000, or 81.8%, decrease in other real estate owned expense, a $5,000, or 4.5%, decrease in professional fees and a $3,000, or 4.9%, decrease in Directors' fees and expenses. The provision for income tax increased $306,000, or 77.3%, from $396,000 for the three months ended September 30, 2020 to $702,000 for the three months ended September 30, 2021 due primarily to the increase in pre-tax income. Net income amounted to $4.3 million for the nine months ended September 30, 2021, an increase of $2.2 million, or 99.0%, compared to net income of $2.2 million for the nine months ended September 30, 2020. The increase in net income was primarily the result of an increase in net interest income of $5.6 million and an increase in non-interest income of $4.3 million, partially offset by an increase in non-interest expense of $6.3 million, an increase in the provision for income taxes of $827,000, and an increase in the provision for loan losses of $638,000. The $5.6 million or 72.3% increase in net interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was driven by a $4.8 million, or 40.4%, increase in interest income. The increase in interest income was primarily due to a $167.8 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $311.1 million for the nine months ended September 30, 2020 to an average balance of $478.9 million for the nine months ended September 30, 2021, and had the effect of increasing interest income $6.2 million. This increase in interest income was partially offset by a 33 basis point decrease in the yield on average loans receivable, net, including loans held for sale, which decreased from 4.90% for the nine months ended September 30, 2020 to 4.57% for the nine months ended September 30, 2021, and had the effect of decreasing interest income $1.2 million. The decline in loan yield is primarily the result of lower yielding PPP loans funded from the second quarter of 2020 through the second quarter of 2021 and the impact of the Federal Reserve's 150 basis point rate cuts in March 2020, partially offset by the increase in the amortization of deferred loan fees related to forgiven PPP loans. The $791,000, or 19.0%, decrease in interest expense was primarily attributable to a 90 basis point decrease in rate on average certificate of deposit accounts, which decreased from 2.07% for the nine months ended September 30, 2020 to 1.17% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $1.2 million. Interest expense on deposits continues to be actively managed to lower our cost of funds. Also contributing to this decrease was a $13.1 million decrease in average certificate of deposit accounts which decreased from an average balance of $192.7 million for the nine months ended September 30, 2020 to an average balance of $179.6 million for the nine months ended September 30, 2021, and had the effect of decreasing interest expense $204,000. This decrease in interest expense was partially offset by a $129.1 million increase in average money market accounts which increased from an average balance of $37.7 million for the nine months ended September 30, 2020 to an average balance of $166.8 million for the nine months ended September 30, 2021, and had the effect of increasing interest expense by $793,000. This increase in money market interest expense was partially offset by a 19 basis point decrease in the rate on average money market accounts, which decreased from 0.82% for the nine months ended September 30, 2020 to 0.63% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $234,000. The decrease in interest expense was also partially offset by an increase in average other borrowings of $4.0 million which had the effect of increasing interest expense by $127,000. The average interest rate spread increased from 2.68% for the nine months ended September 30, 2020 to 3.20% for the nine months ended September 30, 2021, while the net interest margin increased from 2.97% for the nine months ended September 30, 2020 to 3.41% for the nine months ended September 30, 2021. The $638,000, or 102.7%, increase in the provision for loan losses for the nine months ended September 30, 2021 over the nine months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $4.3 million, or 95.1%, increase in non-interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $1.6 million, or 56.8%, increase in net gain on loans held for sale, a $1.0 million increase in loan servicing income, a $612,000, or 58.6%, increase in mortgage banking, equipment lending, and title abstract fees, a $565,000, or 795.8%, increase in gain on sales from SBA loans, a $362,000 gain on sale of investment securities available for sale, a $92,000 increase in net gains on sale and write-downs of other real estate owned, a $33,000, or 18.5%, increase in other fees and service charges, a $26,000, or 7.5%, increase in insurance commissions, and a $12,000, or 9.2%, increase in real estate sales commissions, net. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the nine months ended September 30, 2021. The increase in other fees and service charges was primarily due to the increase in loan prepayment fees. The $6.3 million, or 72.9%, increase in non-interest expense for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $5.0 million, or 85.2%, increase in salaries and employee benefits expense, a $470,000, or 69.8%, increase in occupancy and equipment expense, a $260,000, or 36.4%, increase in other expense, a $167,000, or 35.2%, increase in data processing expense, a $149,000, or 44.0%, increase in professional fees, a $136,000, or 160.0%, increase in FDIC deposit insurance assessment, a $113,000, or 50.4%, increase in advertising expense, and an $11,000, or 6.3%, increase in Directors' fees and expenses. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the nine months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense.   The increase in non-interest expense was partially offset by a $20,000, or 58.8%, decrease in other real estate owned expense. The provision for income tax increased $827,000, or 95.5%, from $866,000 for the nine months ended September 30, 2020 to $1.7 million for the nine months ended September 30, 2021 due primarily to the increase in pre-tax income. The Company's total assets at September 30, 2021 were $535.9 million, an increase of $51.8 million, or 10.7%, from $484.1 million at December 31, 2020.   This growth in total assets was primarily due to a $53.6 million, or 100.8%, increase in loans held for sale, and a $22.6 million, or 6.3%, increase in loans receivable, net. These increases were partially offset by a $19.6 million, or 57.8%, decrease in cash and cash equivalents and a $6.4 million, or 59.8%, decrease in investment securities available for sale at fair value. The largest increases within the loan portfolio occurred in commercial real estate which increased $24.9 million, or 18.9%, construction loans which increased $8.8 million, or 183.5%, one-to-four family non-owner occupied loans which increased $3.2 million, or 8.3%, and one-to-four family owner occupied loans which increased $2.7 million, or 35.2%. The increases within the loan portfolio were partially offset by commercial business loans which decreased $15.7 million, or 10.2%. Loans held for sale increased $53.6 million, or 100.8%, from $53.2 million at December 31, 2020 to $106.8 million at September 30, 2021 as the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $162.0 million of one-to-four family residential loans during the nine months ended September 30, 2021 and sold $184.4 million of loans in the secondary market during this same period. Additionally, the Bank reclassified $17.4 million of equipment loans from loans receivable, net, to loans held for sale, received $9.8 million of loans held for sale from the formation of Oakmont Capital Holdings LLC, and originated $98.4 million in equipment loans held for sale during the nine months ended September 30, 2021. During the nine months ended September 30, 2021 the Company sold $49.6 million of equipment loans.        Total deposits increased $80.7 million, or 22.7%, to $435.5 million at September 30, 2021 from $354.8 million at December 31, 2020. This increase in deposits was primarily attributable to increases of $91.7 million, or 92.0%, in money market accounts, and $19.4 million, or 35.7%, in non-interest bearing checking accounts. The increase in deposits was partially offset by a $30.6 million, or 15.3%, decrease in certificates of deposit. The increase in non-interest bearing checking accounts was primarily due to the checking accounts opened by PPP loan customers.   Total Federal Home Loan Bank (FHLB) borrowings increased $7.0 million, or 18.3%, to $45.2 million at September 30, 2021 from $38.2 million at December 31, 2020. During the nine months ended September 30, 2021, the Company used excess liquidity to pay down $10.0 million of FHLB short-term and $4.0 million of FHLB long-term borrowings. During the second and third quarters of 2021, the Company borrowed $10.0 million and $11.0 million, respectively, of short-term FHLB advances to provide additional liquidity in anticipation of loan funding needs. Federal Reserve Bank (FRB) long-term borrowings decreased $43.2 million, or 89.7%, to $5.0 million at September 30, 2021 from $48.1 million at December 31, 2020 as the Company paid off PPP loans pledged as collateral under the FRB's Paycheck Protection Program Liquidity Facility (PPPLF). The Company did not utilize the FRB's PPPLF to fund second round PPP loans. Other short-term borrowings increased to $933,000 at September 30, 2021 from none at December 31, 2020. Total stockholders' equity increased $6.3 million, or 21.9%, to $35.0 million at September 30, 2021 from $28.7 million at December 31, 2020. Contributing to the increase was noncontrolling interest of $2.2 million, net income for the nine months ended September 30, 2021 of $4.3 million, common stock earned by participants in the employee stock ownership plan of $187,000, amortization of stock awards and options under our stock compensation plans of $126,000, the reissuance of treasury stock for exercised stock options of $87,000, and the reissuance of treasury stock under the Bank's 401(k) Plan of $52,000 and net gain attributable to noncontrolling interest of $12,000. These increases were partially offset by dividends paid of $618,000, other comprehensive loss, net of $84,000, and the purchase of treasury stock of $25,000.        Non-performing loans amounted to $1.7 million, or 0.45%, of net loans receivable at September 30, 2021, one loan of which was on non-accrual status and one loan was 90 days or more past due and accruing interest. Comparably, non-performing loans amounted to $643,000 or 0.18% of net loans receivable at December 31, 2020, consisting of five loans, two loans of which were on non-accrual status and three loans were 90 days or more past due and accruing interest. The non-performing loans at September 30, 2021 include one one-to-four family residential non-owner occupied and one multi-family residential loan, and both are generally well-collateralized or adequately reserved for. The allowance for loan losses as a percent of total loans receivable, net was 1.13% at September 30, 2021 and 0.85% at December 31, 2020. Excluding PPP loans, which are 100% guaranteed by the SBA, the allowance for loan losses to total loans was 1.41% at September 30, 2021. Other real estate owned (OREO) amounted to $489,000 at September 30, 2021 consisting of one property that is collateral for a non-performing construction loan. During the nine months ended September 30, 2021, the Company made $203,000 of capital improvements to the property. Non-performing assets amounted to $2.2 million, or 0.41% of total assets at September 30, 2021 compared to $929,000, or 0.19% of total assets at December 31, 2020. Quaint Oak Bancorp, Inc. is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank's subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC and Quaint Oak Real Estate, LLC. These subsidiary companies conduct business from numerous locations within the Bank's market area. As of January 4, 2021, the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont's third quarter and year-to-date results are incorporated in the financial statements below. In October 2021, the Company formed Oakmont Commercial, LLC, a wholly-owned subsidiary of Quaint Oak Bank. This subsidiary will be based in Southampton, Pennsylvania and will operate as a multi-state specialty commercial real estate financing company. Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company's market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company's credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company's loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company's business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and fees. QUAINT OAK BANCORP, INC. Consolidated Balance Sheets (In Thousands)   At September 30,   At December 31,    2021    2020    (Unaudited)   (Unaudited)  Assets           Cash and cash equivalents $14,316   $33,913   Investment in interest-earning time deposits   7,892     9,463   Investment securities available for sale at fair value   4,312     10,725   Loans held for sale   106,828     53,191   Loans receivable, net of allowance for loan losses (2021: $4,303; 2020: $3,061)            381,690     359,122   Accrued interest receivable   3,338     3,054   Investment in Federal Home Loan Bank stock, at cost   2,018     1,665   Bank-owned life insurance   4,115     4,054   Premises and equipment, net   2,550     2,341   Goodwill   3,107     515   Other intangible, net of accumulated amortization   234     271   Other real estate owned, net   489     286   Prepaid expenses and other assets        4,977     5,475         Total Assets   $535,866     $484,075        .....»»

Category: earningsSource: benzingaOct 30th, 2021

First Industrial Realty Trust Reports Third Quarter 2021 Results

CHICAGO, Oct. 20, 2021 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE:FR), a leading fully integrated owner, operator and developer of industrial real estate, today announced results for the third quarter of 2021. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.33, compared to $0.28 a year ago and third quarter FFO was $0.51 per share/unit on a diluted basis, compared to $0.49 per share/unit a year ago. Excluding approximately $0.04 per share/unit of income related to the final settlement of an insurance claim, third quarter 2020 FFO was $0.45 per share/unit. "Our team continued its strong performance in the quarter producing excellent portfolio results and executing on our investment strategy," said Peter E. Baccile, First Industrial's president and chief executive officer. "We are achieving strong rent growth across our markets while driving external growth through our expanding development pipeline." Portfolio Performance In service occupancy was 97.1% at the end of the third quarter of 2021, compared to 96.6% at the end of the second quarter of 2021, and 96.3% at the end of the third quarter of 2020. Third quarter 2021 same property cash basis net operating income before termination fees ("SS NOI") increased 6.9%. Cash rental rates increased 22.8% and increased 36.2% on a straight-line basis in 3Q21. Cash rental rate growth on the 98% of 2021 rollovers completed and new leases signed to-date is 15.3%. The Company, to-date, has signed approximately 29% of 2022 rollovers by square footage at a cash rental rate increase of approximately 19.0%. Development Leasing During the third quarter and fourth quarter to-date, the Company: Leased its 548,000 square-foot First Park @ PV303 Building C in Phoenix prior to completion and signed an agreement for a 254,000 square-foot expansion with the tenant. Leased 100% of the 303,000 square-foot First Wilson Logistics Center I in the Inland Empire. The lease is expected to commence upon completion in the first quarter of 2022. Leased 100% of its 28,000 square-foot port-centric redevelopment in the South Bay submarket of Los Angeles. Investment and Disposition Activities In the third quarter, the Company: Commenced development of three projects totaling 691,000 square feet, with an estimated total investment of $108 million comprised of: First Park Miami Building 1 in South Florida - 219,000 square feet; 50% pre-leased; $39 million estimated investment. First Loop Logistics Park in Central Florida - four buildings totaling 344,000 square feet; $45 million estimated investment. First Steele in Seattle - 129,000 square feet; $24 million estimated investment. Acquired a 39,000 square-foot building in Fremont in Northern California for $8 million. Acquired three sites totaling 122 net acres in the Inland Empire East and Denver for $59 million that are developable up to 2.1 million square feet. Sold six buildings and four units totaling 159,000 square feet located in Detroit and South Florida for $14 million. In the fourth quarter, the Company: Plans to commence development of three projects totaling 800,000 square feet, with an estimated total investment of $130 million comprised of: First Pioneer Logistics Center in the Inland Empire - 461,000 square feet; $73 million estimated investment. FirstGate Commerce Center in South Florida - 132,000 square feet; $24 million estimated investment. First Bordentown Logistics Center in New Jersey - 208,000 square feet; $33 million estimated investment, includes $8 million for site acquisition in 4Q21. Acquired two additional sites comprised of ten acres in the Inland Empire and Northern California for a total of $10 million. Sold four buildings totaling 90,000 square feet located in Detroit for $7 million. "Our team is creating value for shareholders by delivering high quality distribution facilities to serve the logistics needs for tenants operating in a range of industries," said Johannson Yap, chief investment officer. "We will have $725 million of development projects underway including our three planned fourth quarter starts and we continue to replenish our pipeline by sourcing and entitling land in high-barrier locations."   Capital During the third quarter, the Company: On July 7, 2021, closed a $750 million senior unsecured revolving credit facility which amended and restated its previous facility. The facility matures on July 7, 2025 and has two six-month extension options. The agreement provides for interest-only payments currently at an interest rate of LIBOR plus 77.5 basis points based on the Company's current credit ratings and consolidated leverage ratio which is a 32.5 basis point reduction in the credit spread compared to the prior facility. On July 7, 2021, closed a new unsecured term loan facility that refinances its $200 million unsecured term loan facility previously scheduled to mature on July 15, 2021. The new term loan matures on July 7, 2026 and provides for interest-only payments currently at an interest rate of LIBOR plus 85 basis points based on the Company's current credit ratings and consolidated leverage ratio which is a 65 basis point reduction in the credit spread compared to the prior term loan. With the interest rate swap agreements in place, the fixed interest rate on the new term loan is 1.84%. Issued 1.1 million shares of its common stock at an average price of $55.35 per share through its "at-the-market" equity offering program generating approximately $59 million in net proceeds. Outlook for 2021 "We are raising our full year FFO per share guidance for 2021 by $0.02 at the midpoint due to our strong third quarter performance and our outlook for the fourth quarter," added Mr. Baccile. "With strategic land positions that support the development of more than 16 million square feet of additional space, we are well-positioned for future growth." Low End of High End of Guidance for 2021 Guidance for 2021 (Per share/unit) (Per share/unit) Net Income $ 1.48 $ 1.52 Add:  Real Estate Depreciation/Amortization 0.98 0.98 Less:  Gain on Sale of Real Estate, Net of Allocable Income Tax Provision Including Joint Ventures, Through October 20, 2021 (0.53) (0.53) FFO (NAREIT Definition) $ 1.93 $ 1.97 The following assumptions were used for guidance: In service occupancy at year-end fourth quarter of 96.75% to 97.75%. This implies a full year quarter-end average in service occupancy of 96.5% to 96.8%, an increase of 15 basis points at the midpoint. Fourth quarter SS NOI growth on a cash basis before termination fees of 6.0% to 7.5%. This implies a quarterly average SS NOI growth for the full year 2021 of 4.3% to 4.7%, an increase of 25 basis points at the midpoint. Same Store revenues for the full year 2020 excludes approximately $1 million of insurance settlement gain relating to a building destroyed by fire in 2016. General and administrative expense of approximately $34 million to $35 million, an increase of $1 million at the midpoint. Includes the incremental costs expected in 2021 related to the Company's developments completed and under construction as of September 30, 2021 and the aforementioned planned fourth quarter starts of First Pioneer Logistics Center, FirstGate Commerce Center and First Bordentown Logistics Center. In total, the Company expects to capitalize $0.08 per share of interest in 2021. Other than the transactions discussed in this release, guidance does not include the impact of: any future debt repurchases prior to maturity or future debt issuances, any future investments or property sales, or any future equity issuances.  Conference Call First Industrial will host its quarterly conference call on Thursday, October 21, 2021 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (866) 542-2938 and entering the conference ID 2499227. The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. The replay will also be available on the website. The Company's third quarter 2021 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab.  FFO Definition In accordance with the NAREIT definition of FFO, First Industrial calculates FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. First Industrial also excludes the same adjustments from its share of net income from unconsolidated joint ventures. About First Industrial Realty Trust, Inc. First Industrial Realty Trust, Inc. (NYSE:FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 67.7 million square feet of industrial space as of September 30, 2021. For more information, please visit us at www.firstindustrial.com. Forward-Looking Information This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors which could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the recent outbreak of coronavirus disease 2019 (COVID-19); our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2020, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the SEC. We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC. A schedule of selected financial information is attached.   FIRST INDUSTRIAL REALTY TRUST, INC. Selected Financial Data (Unaudited) (In thousands except per share/Unit data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Statements of Operations and Other Data:     Total Revenues $ 121,082 $ 116,194 $ 354,739 $ 335,739     Property Expenses (33,396) (30,355) (98,386).....»»

Category: earningsSource: benzingaOct 20th, 2021

Rickards: Systemic Risk Is Greater Than Ever

Rickards: Systemic Risk Is Greater Than Ever Authored by James Rickards via DailyReckoning.com, Contagion! There has been a litany of bad news recently, including the U.S. August humiliation in Afghanistan, China’s aggressive actions against Taiwan and increased tensions with Iran, North Korea and Russia. It will take the U.S. years, possibly decades, to recover from the debacle of August 2021 and the collapse of American prestige. All of these geopolitical events combine to undermine confidence in U.S. power. When that happens, a loss of confidence in the U.S. dollar is not far behind. And, perhaps most importantly of all recent bad news, is a market meltdown and slowing growth in China. Greatest Ponzi Ever I’ve long advised my readers that the Chinese wealth management product (WMP) system is the greatest Ponzi in the history of the world. Retail investors are led to believe that WMPs are like bank deposits and are backed by the bank that sells them. They’re not. They’re actually unsecured units in blind pools that can be invested in anything the pool manager wants. Most WMP funds have been invested in the real estate sector. This has led to asset bubbles in real estate (at best) and wasted developments that cannot cover their costs (at worst). When investors wanted their money back, the sponsor would simply sell more WMPs and use the money to pay back the redeeming investors. That’s what gave the product its Ponzi characteristic. The total amount invested in WMPs is now in the trillions of dollars used to finance thousands of projects sponsored by hundreds of major developers. Chinese investors are all-in with WMPs. Now the entire edifice is collapsing as I predicted it would. The largest property developer in China, Evergrande, is quickly headed for bankruptcy. That’s a multibillion-dollar fiasco on its own. Evergrande losses will arise in WMPs, corporate debt, unpaid contractor bills, equity markets and unfinished housing projects. China’s entire property and financial system is on the verge of a world-historic crack-up. And it won’t remain limited to China. It comes back to contagion. Financial Contagions Are Like Biological Contagions Unfortunately, since early last year, the world has learned a painful lesson in biological contagions. A similar dynamic applies in financial panics. It can begin with one bank or broker going bankrupt as the result of a market collapse (a “financial patient zero”). But the financial distress quickly spreads to banks that did business with the failed entity and then to stockholders and depositors of those other banks and so on until the entire world is in the grip of a financial panic as happened in 2008. Disease contagion and financial contagion both work the same way. The nonlinear mathematics and system dynamics are identical in the two cases even though the “virus” is financial distress rather than a biological virus. And unfortunately, each crisis is bigger than the one before and requires more intervention by the central banks. The reason has to do with the system scale. In complex dynamic systems such as capital markets, risk is an exponential function of system scale. Increasing market scale correlates with exponentially larger market collapses. Today, systemic risk is more dangerous than ever because the entire system is larger than before. This means that the larger size of the system implies a future global liquidity crisis and market panic far larger than the Panic of 2008. Too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books. Contagion and The Old Man and the Sea To understand the risk of contagion, you can think of the marlin in Hemingway’s The Old Man and the Sea. The marlin started out as a prize catch lashed to the side of the fisherman Santiago’s boat. But once there was blood in the water, every shark within miles descended on the marlin and devoured it. By the time Santiago got to shore, there was nothing left of the marlin but the bill, the tail and some bones. An even greater danger for markets is when these two kinds of contagion converge. This happens when market losses spill over into broader markets, and then those losses give rise to systematic trading against a particular instrument or hedge fund. When the targeted instrument or fund is driven under, credit losses spread to a wider group of fund counterparts that then fall under suspicion themselves. Soon a marketwide liquidity panic emerges in which “everybody wants his money back.” This is exactly what happened during the Russia/Long Term Capital Management (LTCM) crisis in 1998. To the Brink of Collapse It was an international monetary crisis that started in Thailand in June 1997, spread to Indonesia and Korea and then finally to Russia by August 1998. It was exactly like dominoes falling. LTCM wasn’t a country, although it was a hedge fund as big as a country in terms of its financial footings. I was right in the middle of that crash. I was the general counsel of that firm. I negotiated that bailout. The importance of that role is that I had a front-row seat. I was in the conference room, in the deal room, at a big New York law firm. There were hundreds of lawyers. There were 14 banks in the LTCM bailout fund. There were 19 other banks in a $1 billion unsecured credit facility. Included were Treasury officials, Federal Reserve officials, other government officials, Long Term Capital and our partners. I was on point for one side of the deal and had to coordinate all that. Wall Street Bailed out Itself It was a $4 billion all-cash deal, which we put together in 72 hours with no due diligence. Anyone who’s raised money for his or her company or done deals can think about that and imagine how difficult it would be to get a group of banks to write you a check for $4 billion in three days. Systematic pressure on LTCM persisted until the fund was almost broke. As Wall Street attacked the fund, they missed the fact that they were also the creditors of the fund. By breaking LTCM, they were breaking themselves. That’s when the Fed intervened and forced Wall Street to bail out the fund. Those involved can say they bailed out Long Term Capital. But if Long Term Capital had failed, and it was on the way to failure, $1.3 trillion of derivatives would’ve been flipped back to Wall Street. In reality, Wall Street bailed out itself. The panic of 2008 was an even more extreme version of 1998. We were days, if not hours, from the sequential collapse of every major bank in the world. The 2008 panic had its roots in subprime mortgages but quickly spread to debt obligations of all kinds, especially money market funds and European bank commercial paper. Think of the dominoes again. What had happened there? You had a banking crisis. Except in 2008, Wall Street did not bail out a hedge fund; instead, the central banks bailed out Wall Street. Systemic Risk Is Greater Than Ever The point, again, is that today systemic risk is more dangerous than ever, and each crisis is bigger than the one before. Remember, too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books. The ability of central banks to deal with a new crisis is highly constrained by low interest rates and bloated balance sheets, which have exploded even higher in response to the pandemic. The Fed’s balance sheet is currently about $8.5 trillion. Last March it was $4.2 trillion. In September 2008, it was under $1 trillion, so that just shows you how bloated the Fed’s balance sheet has become since the Great Financial Crisis. The threat of contagion is a scary reminder of the hidden linkages in modern capital markets. The conditions are in place. But you can’t wait for the shock to occur because by then it will be too late. You won’t be able to get your money out of the market in time because it’ll be a mad rush to the exits. The solution for investors is to have some assets outside the traditional markets and outside the banking system. Tyler Durden Thu, 10/14/2021 - 08:22.....»»

Category: blogSource: zerohedgeOct 14th, 2021

AFC Gamma Provides Justice Cannabis Co. With $75.4M Via Extended Credit Facility, Announces Funding Updates

Cannabis-focused commercial real estate finance company AFC Gamma, Inc. (NASDAQ: AFCG) has bolstered its senior credit facility with Justice Cannabis Co. to $75.4 million. read more.....»»

Category: blogSource: benzingaOct 4th, 2021

How Can Houses Be Unaffordable And Booming?

How Can Houses Be Unaffordable And Booming? Authored by John Rubino via DollarCollapse.com, Home prices have never been higher when compared to the average family’s income. This kind of imbalance is normally a sign of an impending crash in home sales, followed by a drop in prices. But that’s not happening. Some recent headlines: Home prices set records in July; Tampa 4th highest in nation With no slowdown in sight, Dallas home prices go up 23.7% Asking Price On Homes Increases 12% To An All-Time High How is it that homes are both unaffordable and soaring in price? As with so many other things that shouldn’t be, the answer can be found at the intersection of Wall Street and easy money. During the previous decade’s Great Recession, hedge funds and private equity firms figured out that they could borrow for next-to-nothing and buy up the houses that banks were repossessing, then rent those houses back to millions of newly homeless Americans for good returns. Combine these positive cash flows with massive recent price appreciation, and those foreclosed houses turned out to be phenomenal investments.  Now Wall Street is doubling down, using hundreds of billions of essentially free money to outbid individual buyers for whatever houses are still available. In some cases investment giants like Blackrock buy up entire neighborhoods at big premiums to the asking price, pushing everyone else out of the market. Hence the disconnect between home prices and family incomes.  But wait, there’s more. Now the securitization machine has discovered houses.  Zillow’s Home-Flipping Bonds Draw Wall Street Deeper Into Housing (Bloomberg Businessweek) — Zillow Group Inc. is best known for the addictive real estate listings that keep people browsing the internet all night, has dived into the house-flipping business, offering to quickly take properties off sellers’ hands. And in the process it’s helping pull Wall Street even deeper into the $2 trillion U.S. housing market. In August, Zillow raised $450 million from a bond backed by homes it’s bought but not yet sold. The offering, led by Credit Suisse Group AG, was modeled on the loan facilities that car dealerships use to finance floor models. The novelty of using that structure for houses didn’t scare off investors hungry for a new way to bet on the hottest housing market on record. The offering was over subscribed and Zillow, which declined to comment on its bond market activities, is now in the process of selling another $700 million in bonds.  Now those volumes are set to explode. Zillow expects to acquire homes at a pace of 5,000 a month by 2024. Another competitor, Offerpad Solutions Inc. could eventually buy 70,000 homes a year, based on its view of the future opportunity. Opendoor, still the largest iBuyer, has said its playbook calls for the company to capture 4% of all home sales in 100 markets. Together the three companies could soon be buying close to $100 billion worth of homes a year, requiring more than $20 billion in revolving credit facilities. Looks like housing is yet another example of how easy money perverts formerly free markets. Where family income used to dictate (and limit) home prices, now the driver is the yield on corporate and asset-backed bonds. The lower those rates go, the higher home prices climb. If individual buyers are priced out, well, they can just rent from Wall Street, on whatever terms our new landlords think is fair. Tyler Durden Sat, 10/02/2021 - 13:30.....»»

Category: dealsSource: nytOct 2nd, 2021

Vail Resorts Reports Fiscal 2021 Fourth Quarter and Full Year Results, Provides Fiscal 2022 Outlook, Announces Transformational Capital Plan and Declares Dividend

BROOMFIELD, Colo., Sept. 23, 2021 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:MTN) today reported results for the fourth quarter and fiscal year ended July 31, 2021, which were negatively impacted by COVID-19 and related limitations and restrictions, and reported results of season-to-date season pass sales. Vail Resorts also provided its outlook for the fiscal year ending July 31, 2022, announced a one-time transformational capital plan for calendar year 2022, and declared a dividend payable in October 2021. Highlights Net income attributable to Vail Resorts, Inc. was $127.9 million for fiscal 2021, an increase of 29.4% compared to fiscal 2020. Fiscal 2021 was negatively impacted by COVID-19 and related limitations and restrictions, including the early closure of Whistler Blackcomb on March 30, 2021 and "stay at home" orders and periodic resort closures impacting our Australian ski areas. The prior year period was negatively impacted by the early closure of the Company's North American destination mountain resorts and regional ski areas on March 15, 2020 due to COVID-19 (the "Resort Closures"). Resort Reported EBITDA was $544.7 million for fiscal 2021, an increase of 8.2% compared to fiscal 2020. Fiscal 2021 was negatively impacted by COVID-19 and related limitations and restrictions. The prior year period was primarily impacted by the Resort Closures, which included the resulting deferral of approximately $120.9 million of pass product revenue and $2.9 million of related deferred costs from fiscal 2020 to fiscal 2021 as a result of pass holder credits offered to 2019/2020 North American pass product holders. Pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 42% in units and approximately 17% in sales dollars as compared to the period in the prior year through September 18, 2020, without deducting for the value of any redeemed credits provided to certain North American pass product holders in the prior period. To provide a comparison to the season pass results released on June 7, 2021, pass product sales through September 17, 2021 increased approximately 67% in units and approximately 45% in sales dollars as compared to the period through September 20, 2019, with pass product sales adjusted to include Peak Resorts pass sales in both periods. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.79 between the Canadian dollar and U.S. dollar in all periods for Whistler Blackcomb pass sales. The Company issued its fiscal 2022 guidance range and expects Resort Reported EBITDA to be between $785 million and $835 million. The guidance includes an expectation that Resort Reported EBITDA for the first quarter of fiscal 2022 will be between negative $118 million and negative $106 million, which includes the negative impact from COVID-19 resort closures in Australia. Fiscal 2022 guidance assumes, among other assumptions described below, no material impacts associated with COVID-19 for the 2021/2022 North American ski season or the 2022 Australian ski season, other than an expected slower recovery for international visitation and group/conference business. The Company continues to maintain significant liquidity with $1.2 billion of cash on hand as of July 31, 2021 and $613 million of availability under our U.S. and Whistler Blackcomb revolving credit facilities. The Company declared a cash dividend of $0.88 per share payable in October 2021 and plans to exit the temporary waiver period under the Vail Holdings, Inc. revolving credit facility ("VHI Credit Agreement") effective October 31, 2021. The Company announced a transformational $315 million to $325 million capital plan for calendar year 2022 focused on the addition and/or upgrade of 19 new chairlifts and other improvements to enhance the guest experience ahead of the 2022/2023 North American ski season. Commenting on the Company's fiscal 2021 results, Rob Katz, Chief Executive Officer, said, "Given the continued challenges associated with COVID-19, we are pleased with our operating results for the year. Our results highlighted our data-driven marketing capabilities, the value of our pass products, the resiliency of demand for the experiences we offer throughout our network of world-class resorts and our disciplined cost controls. "Results continued to improve as the 2020/2021 North American ski season progressed, primarily as a result of stronger destination visitation at our Colorado and Utah resorts. Excluding Peak Resorts, total skier visitation at our U.S. destination mountain resorts and regional ski areas for fiscal 2021 was only down 6% compared to fiscal 2019. Whistler Blackcomb's performance was disproportionately negatively impacted due to the closure of the Canadian border to international guests, including guests from the U.S., and the resort closing earlier than expected on March 30, 2021 following a provincial health order issued by the government of British Columbia. Whistler Blackcomb's total skier visitation for fiscal 2021 declined 51% compared to fiscal 2019. Our ancillary lines of business were more significantly and negatively impacted by COVID-19 related capacity constraints and limitations throughout the 2020/2021 North American ski season. We generated Resort Reported EBITDA margin of 28.5% driven by our disciplined cost controls as well as a higher proportion of lift revenue relative to ancillary lines of business compared to prior periods." Regarding the Company's fiscal 2021 fourth quarter results, Katz said, "We are pleased with the strong demand across our North American summer operations during the fourth quarter, which exceeded our expectations and which we believe highlights our guests' continued affinity for outdoor experiences. In Australia, we experienced strong demand trends at the beginning of the 2021 Australian ski season. However, subsequent COVID-19 related stay-at-home orders and temporary resort closures negatively impacted financial results for the fourth quarter by approximately $8 million relative to our guidance expectations issued on June 7, 2021. Fourth quarter results were also negatively impacted relative to our June 7, 2021 guidance by a one-time $13.2 million charge for a contingent obligation with respect to certain litigation matters." Katz continued, "We remain focused on our disciplined approach to capital allocation, prioritizing our investments in our people, as well as high-return capital projects, strategic acquisition opportunities, and returning capital to shareholders. Our liquidity position remains strong, and we are confident in the free cash flow generation and stability of our business model. Our total cash and revolver availability as of July 31, 2021 was approximately $1.9 billion, with $1.2 billion of cash on hand, $418 million of revolver availability under the VHI Credit Agreement, and $195 million of revolver availability under the Whistler Blackcomb Credit Agreement. As of July 31, 2021, our Net Debt was 3.0 times trailing twelve months Total Reported EBITDA. Given our strong balance sheet and outlook, we are pleased to announce that the Company plans to exit the temporary waiver period under the VHI Credit Agreement effective October 31, 2021, declared a cash dividend of $0.88 per share payable in October 2021, and announced a transformational $315 million to $325 million capital plan for calendar year 2022 to add or upgrade 19 new chairlifts and make other investments to enhance the guest experience and are expected to generate strong returns for our shareholders." Operating Results A more complete discussion of our operating results can be found within the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company's Form 10-K for the fiscal year ended July 31, 2021, which was filed today with the Securities and Exchange Commission. The discussion of operating results below compares the results for the fiscal year ended July 31, 2021 to the fiscal year ended July 31, 2020, unless otherwise noted. The following are segment highlights: Mountain Segment Total lift revenue increased $163.5 million, or 17.9%, to $1,076.6 million primarily due to strong North American pass sales growth for the 2020/2021 ski season, including the deferral impact of the pass holder credits offered to 2019/2020 North American pass product holders from fiscal 2020 to fiscal 2021 as a result of the Resort Closures, partially offset by a decrease in non-pass visitation due to limitations and restrictions on our North American operations due to the impacts of COVID-19, which disproportionately impacted Whistler Blackcomb. Ski school revenue decreased $44.9 million, or 23.7%, dining revenue decreased $70.4 million, or 43.8%, and retail/rental revenue decreased $42.3 million, or 15.7%, each primarily as a result of by COVID-19 related capacity limitations and restrictions in the current year, partially offset by the Company operating for the full U.S. ski season in the current year as compared to the impact of the Resort Closures in the prior year. Operating expense decreased $65.9 million, or 5.4%, which was primarily attributable to cost discipline efforts in the current year associated with lower levels of operations and limitations, restrictions and closures of resort operations resulting from COVID-19. Mountain Reported EBITDA increased $50.3 million, or 10.1%, which includes $20.3 million of stock-based compensation for fiscal 2021 compared to $17.4 million in the prior year. Lodging Segment Lodging segment net revenue (excluding payroll cost reimbursements) decreased $26.4 million, or 11.1%, primarily due to operational restrictions and limitations of our North American lodging properties in the current year as a result of the ongoing impacts of COVID-19, partially offset by stronger summer demand in the U.S. during the fourth quarter of fiscal 2021. Lodging Reported EBITDA decreased $9.0 million, which includes $3.8 million of stock-based compensation expense in fiscal 2021 compared to $3.4 million of stock-based compensation expense in fiscal 2020. Resort - Combination of Mountain and Lodging Segments Resort net revenue was $1,907.9 million for fiscal 2021, a decrease of $50.9 million, or 2.6%, compared to resort net revenue of $1,958.9 million for fiscal 2020. Fiscal 2021 revenue included approximately $12 million of favorability from currency translation, which the Company calculated on a constant currency basis by applying current period foreign exchange rates to the prior period results. Resort Reported EBITDA was $544.7 million for fiscal 2021, an increase of $41.3 million, or 8.2%, compared to fiscal 2020. Fiscal 2021 includes the impact from the deferral of $118 million of pass product revenue and related deferred costs from fiscal 2020 to fiscal 2021 as a result of credits offered to 2020/2021 North American pass product holders, a one-time $13.2 million charge for a contingent obligation with respect to certain litigation matters, and approximately $2 million of favorability from currency translation from Whistler Blackcomb, which the Company calculated on a constant currency basis by applying current period foreign exchange rates to prior period results. Total Performance Total net revenue decreased $54.0 million, or 2.7%, to $1,909.7 million. Net income attributable to Vail Resorts, Inc. was $127.9 million, or $3.13 per diluted share, for fiscal 2021 compared to net income attributable to Vail Resorts, Inc. of $98.8 million, or $2.42 per diluted share, in fiscal 2020. Net income attributable to Vail Resorts, Inc. for fiscal 2021 and fiscal 2020 included tax benefits of approximately $17.9 million and $8.0 million, respectively, related to employee exercises of equity awards (primarily related to the CEO's exercise of SARs). Additionally, fiscal 2021 net income attributable to Vail Resorts, Inc. included approximately $3 million of unfavorability from currency translation, which the Company calculated by applying current period foreign exchange rates to the prior period results. Season Pass Sales Commenting on the Company's season pass sales for the upcoming 2021/2022 North American ski season, Katz said, "We are very pleased with the results of our season pass sales to date, which continue to demonstrate the strength of our data-driven marketing initiatives and the compelling value proposition of our pass products, driven in part by the 20% reduction in all pass prices for the upcoming season. Pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 42% in units and approximately 17% in sales dollars as compared to the period in the prior year through September 18, 2020, without deducting for the value of any redeemed credits provided to certain North American pass holders in the prior period. To provide a comparison to the season pass results released on June 7, 2021, pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 67% in units and approximately 45% in sales dollars as compared to sales for the 2019/2020 North American ski season through September 20, 2019, with pass product sales adjusted to include Peak Resorts pass sales in both periods. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.79 between the Canadian dollar and U.S. dollar in all periods for Whistler Blackcomb pass sales." Katz continued, "We saw strong unit growth from renewing pass holders and significantly stronger unit growth from new pass holders, which include guests in our database who previously purchased lift tickets or passes but did not buy a pass in the previous season and guests who are completely new to our database. Our strongest unit growth was from our destination markets, including the Northeast, and we also had very strong growth across our local markets. The majority of our absolute unit growth came from our core Epic and Epic Local pass products and we also saw even higher percentage growth from our Epic Day Pass products. Compared to the period ended September 18, 2020, effective pass price decreased 17%, despite the 20% price decrease we implemented this year and the significant growth of our lower priced Epic Day Pass products, which continue to represent an increasing portion of our total advance commitment product sales. "We are very pleased with the performance of our pass product sales efforts to date, which exceeded our original expectations for the impact of the 20% price reduction, particularly in the growth of new pass holders and in the trade up we are seeing from pass holders into higher priced products. As we enter the final period for pass product sales, we feel good about the current trends we are seeing. However, it is important to point out that we know a portion of the growth we have seen to date represents certain pass product holders purchasing their pass earlier in the selling season than in the prior year period and we saw strong growth in the late fall in the prior year period due to concerns around COVID-19, including questions about resort access as a result of our mountain access reservation system. Given these factors and the other changing economic and COVID-related dynamics, it is difficult to provide specific guidance on our final growth rates, which may decline from the rates we reported today." Capital Investments Commenting on the Company's capital investments, Katz said, "As previously announced, we are on track to complete several signature investments in advance of the 2021/2022 North American ski season. In Colorado, we are completing a 250 acre lift-served terrain expansion in the signature McCoy Park area of Beaver Creek, further differentiating the resort's high-end, family focused experience. We are also adding a new four-person high speed lift at Breckenridge to serve the popular Peak 7, replacing the Peru lift at Keystone with a six-person high speed chairlift, and replacing the Peachtree lift at Crested Butte with a new three-person fixed-grip lift. At Okemo, we are completing a transformational investment including upgrading the Quantum lift to replace the Green Ridge three-person fixed-grip chairlift. In addition to the transformational investments that will greatly improve uplift capacity, we are continuing to invest in company-wide technology enhancements, including investing in a number of upgrades to bring a best-in-class approach to how we service our guests through these channels. "We are encouraged by the outlook for our long-term growth and the financial stability we have created. The success of our advance commitment strategy, the expansion of our network and our focus on creating an outstanding guest experience remain at the forefront of our efforts. Toward that end, we are launching an ambitious capital investment plan for calendar year 2022 across our resorts to significantly increase lift capacity and enhance the guest experience as we drive increased loyalty from our guests and continuously improve the value proposition of our advance commitment products. These investments are also expected to drive strong financial returns for our shareholders. The plan includes the installation of 19 new or replacement lifts across 14 of our resorts that collectively will increase lift capacity in those lift locations by more than 60% and a transformational lift-served terrain expansion at Keystone, as well as additional projects that will be announced in December 2021 and March 2022. All of the projects in the plan are subject to regulatory approvals. "We expect our capital plan for calendar year 2022 will be approximately $315 million to $325 million, excluding any real estate related capital or reimbursable investments. This is approximately $150 million above our typical annual capital plan, based on inflation and previous additions for acquisitions, and includes approximately $20 million of incremental spending to complete the one-time capital plans associated with the Peak Resorts and Triple Peaks acquisitions. Given our recent financings and strong liquidity, the outlook for our business driven by the growth of our advance commitment strategy, and the tax benefit in 2022 from additional accelerated depreciation on U.S. investments, we believe this is the right time for our Company to make a significant investment in the guest experience at our resorts and expect this one-time increase in discretionary investments will drive an attractive return for our shareholders. Additional details associated with our calendar year 2022 capital plan can be found in our capital press release issued on September 23, 2021. We also intend to return our capital spending to our typical long-term plan in our calendar year 2023 capital plan, with the potential for reduced spending given the number of projects we would complete in calendar year 2022. We will be providing further detail on our calendar year 2022 capital plan in December 2021." Return of Capital Commenting on the Company's return of capital, Katz said, "The Company plans to exit the waiver period under the VHI Credit Agreement effective October 31, 2021, reinstating the required quarterly compliance with our financial maintenance covenants beginning with the first quarter of fiscal year 2022. We are also pleased to announce that the Board of Directors has reinstated our quarterly dividend by declaring a cash dividend on Vail Resorts' common stock of $0.88 per share, payable on October 22, 2021 to shareholders of record on October 5, 2021. This dividend payment equates to 50% of pre-pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model despite the ongoing risks associated with COVID-19. Our Board of Directors will continue to closely monitor the economic and public health outlook on a quarterly basis to assess the level of our quarterly dividend going forward." Guidance Commenting on guidance for fiscal 2022, Katz said, "As we head into fiscal 2022, we are encouraged by the robust demand from our guests, the strength of our advance commitment product sales and our continued focus on enhancing the guest experience while maintaining our cost discipline. Our guidance for net income attributable to Vail Resorts, Inc. is estimated to be between $278 million and $349 million for fiscal 2022. We estimate Resort Reported EBITDA for fiscal 2022 will be between $785 million and $835 million. We estimate Resort EBITDA Margin for fiscal 2022 to be approximately 32.1%, using the midpoint of the guidance range, which is negatively impacted as a result of COVID-19 impacts associated with Australia in the first quarter of fiscal 2022 and the anticipated slower recovery in international visitation and group/conference business. We estimate Real Estate Reported EBITDA for fiscal 2022 to be between negative $6 million and $0 million. The guidance assumes normal weather conditions, a continuation of the current economic environment and no material impacts associated with COVID-19 for the 2021/2022 North American ski season or the 2022 Australian ski season other than an expected slower recovery for international visitation, which is expected to have a disproportionate impact at Whistler Blackcomb, and group/conference business, which is expected to have a disproportionate impact in our Lodging segment. At Whistler Blackcomb, we estimate the upcoming winter season will generate approximately $27 million lower Resort Reported EBITDA relative to the comparable period in fiscal 2019, primarily driven by the anticipated reduction in international visitation. "Fiscal 2022 guidance includes an expectation that the first quarter of fiscal 2022 will generate net loss attributable to Vail Resorts, Inc. between $156 million and $136 million and Resort Reported EBITDA between negative $118 million and negative $106 million. We estimate the negative impacts of COVID-19 in Australia and the associated limitations and restrictions, including the current lockdowns, will have a negative Resort Reported EBITDA impact of approximately $41 million in the first quarter of fiscal 2022 as compared to the first quarter of fiscal 2020. "There continues to be uncertainty regarding the ultimate impact of COVID-19 on our business results in fiscal year 2022, including any response to changing COVID-19 guidance and regulations by the various governmental bodies that regulate our operations and resort communities, as well as changes in consumer behavior resulting from COVID-19, which are not factored into the guidance and could negatively impact it. The guidance assumes an exchange rate of $0.80 between the Canadian Dollar and U.S. Dollar related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.74 between the Australian Dollar and U.S. Dollar related to the operations of Perisher, Falls Creek and Hotham in Australia." The following table reflects the forecasted guidance range for the Company's fiscal 2022 first quarter ending October 31, 2021 and full year ending July 31, 2022, for Reported EBITDA (after stock-based compensation expense) and reconciles net (loss) income attributable to Vail Resorts, Inc. guidance to such Reported EBITDA guidance. Fiscal 2022 Guidance Fiscal 2022 Guidance (In thousands) (In thousands) For the Three Months Ending For the Year Ending October 31, 2021 (6) July 31, 2022 (6) Low End High End Low End High End Range Range Range Range Net (loss) income attributable to Vail Resorts, Inc. $ (156,000) $ (136,000) $ 278,000 $ 349,000 Net (loss) income attributable to noncontrolling interests (3,000) (7,000) 24,000 18,000 Net (loss) income (159,000) (143,000) 302,000 367,000 (Benefit) provision for income taxes (1) (60,000) (54,000) 82,000 100,000 (Loss) income before income taxes (219,000) (197,000) 384,000 467,000 Depreciation and amortization 63,000 61,000 250,000 238,000 Interest expense, net 41,000 38,000 150,000 142,000 Other (2) (5,000) (8,000) (5,000) (12,000) Total Reported EBITDA $ (120,000) $ (106,000) $ 779,000 $ 835,000 Mountain Reported EBITDA (3) $ (122,000) $ (110,000) $ 766,000 $ 814,000 Lodging Reported EBITDA (4) 3,000 5,000 16,000 24,000 Resort Reported EBITDA (5) (118,000) (106,000) 785,000 835,000 Real Estate Reported EBITDA (2,000) — (6,000) — Total Reported EBITDA $ (120,000) $ (106,000) $ 779,000 $ 835,000 (1) The (benefit) provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated (benefit) provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money. (2) Our guidance includes certain known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material. (3) Mountain Reported EBITDA also includes approximately $5 million and $21 million of stock-based compensation for the three months ending October 31, 2021 and the year ending July 31, 2022, respectively. (4) Lodging Reported EBITDA also includes approximately $1 million and $4 million of stock-based compensation for the three months ending October 31, 2021 and the year ending July 31, 2022, respectively. (5) The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges. (6) Guidance estimates are predicated on an exchange rate of $0.80 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.74 between the Australian Dollar and U.S. Dollar, related to the operations of our Australian ski areas. Earnings Conference Call The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (888) 204-4368 (U.S. and Canada) or (323) 994-2093 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through October 7, 2021, at 8:00 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 8866986. The conference call will also be archived at www.vailresorts.com. About Vail Resorts, Inc. (NYSE:MTN) Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. Vail Resorts' subsidiaries operate 37 destination mountain resorts and regional ski areas, including Vail, Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, and Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania; Alpine Valley, Boston Mills, Brandywine and Mad River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana. Vail Resorts owns and/or manages a collection of casually elegant hotels under the RockResorts brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE:MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com. Forward-Looking Statements Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including the statements regarding fiscal 2022 and the first quarter of fiscal 2022 performance (including the assumptions related thereto), including our expected net income and Resort Reported EBITDA; our expectations regarding our liquidity; the effects of the COVID-19 pandemic on, among other things, our operations; expectations related to our season pass products; our expectations regarding our ancillary lines of business; the payment of dividends and our expectations regarding electing out of the temporary waiver period under the VHI Credit Agreement; and our calendar year 2022 and calendar year 2023 capital plan and expectations related thereto. Readers are cautioned not to place undue reliance on ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 23rd, 2021

Healthpeak (PEAK) Boosts Flexibility With $3B Credit Facility

Healthpeak (PEAK) enhances financial flexibility with maturity extension and reduces borrowing costs of unsecured revolving credit facility. Healthpeak Properties, Inc. PEAK has announced the closing of a new $3-billion senior unsecured revolving credit facility. The move boosts the company’s financial flexibility, as its offers the extension of maturities and reduction in borrowing costs as well as supports its growth endeavors.The new credit facility increases the total revolving commitments from $2.5 billion to $3 billion, and extends the mature date to Jan 20, 2026. The maturity of the facility can be prolonged by using two six-month extension options.The interest rate on the new credit facility will be LIBOR plus 77.5 basis points (bps), marking five bps improvement from the pricing under the previous unsecured revolving credit facility. It carries a facility fee of 15 bps per annum on the entire revolving commitment.With an enhanced financial flexibility, the company is well poised to ride on its growth curve. Its life-science real estate is likely to witness decent demand on the back of drug innovations and developments. Therefore, its expansion efforts in this asset category augur well.The company will break ground on the development in the Sorrento Mesa submarket in the ongoing quarter. The construction of Sorrento Gateway, a Class-A development will comprise a five-story building, spanning nearly 163,000 square feet. It will be purpose-built with numerous amenities, enabling the company to capitalize on the demand from the existing and new tenants alike.Shares of this Zacks Rank#3 (Hold) company have gained 3.1% over the past three months, outperforming the industry’s growth of 1.6%.Image Source: Zacks Investment ResearchKey PicksThe Zacks Consensus Estimate for Alexander & Baldwin Holdings, Inc.’s ALEX ongoing-year FFO per share has been revised 32.4% upward over the past two months. The company carries a Zacks Rank of 2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.The Zacks Consensus Estimate for CubeSmart’s CUBE 2021 FFO per share has moved marginally upward over the past month. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Extra Space Storage Inc.’s EXR current-year FFO per share has moved marginally north in the past 30 days. The company carries a Zacks Rank of 2, at present.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. 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 Extra Space Storage Inc (EXR): Free Stock Analysis Report Alexander & Baldwin Holdings, Inc. (ALEX): Free Stock Analysis Report CubeSmart (CUBE): Free Stock Analysis Report Healthpeak Properties, Inc. (PEAK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Lancewood Capital expands lending platform’s national presence in 2021

Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in... The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly. Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in real estate debt. Justin Godner and Matt Schatzle, who have been instrumental in driving Lancewood’s originations, attribute the firm’s success and growth to its unique family office capitalization structure and the strength of Lancewood’s team who work tirelessly to provide the best execution for borrowers.   When asked about the platform, Justin Godner spoke about Lancewood’s family office capitalization structure, which allows for near-bank pricing, structural creativity and custom-tailored financing for their borrowers which he believes is the firm’s competitive advantage. When asked about the marketplace, Matt Schatzle noted the liquidity in the in the debt market and the options available to today’s borrowers, which he said makes it very important to consistently execute for borrowers in order to win repeat business. Stephen Zaro, who recently started at the firm, noted that Lancewood’s ability to provide near-bank pricing allows for the firm to win a lot of business. While Lancewood continues its growth in the New York metro area – with over $100 million of capital deployed in the area in 2020 – the company also seeks to expand in other primary markets, particularly Atlanta, Florida, California and Texas, according to Tino Martins, Lancewood’s Director of Commercial Mortgages. The company has been increasingly active in Florida and California, where Matt Schatzle and Stephen Zaro have originated bridge loans and Justin Godner set up two $50 million senior credit facilities with $19.2 million funded to date for FL and CA based real estate lenders. Below are some of the platform’s recent closings:  $6,450,000 bridge loan to finance the completion of a construction project in the Tribeca neighborhood of New York, NY. Lancewood Capital was able to provide capital to complete the project at a near-bank rate. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with initial advances of $7,500,000 and $3,300,000 for a Florida-based real estate lender. The underlying properties are located in Miami, FL. This transaction was structured by Justin Godner of Lancewood. $16,020,000 senior note financing for a $20,000,000 underlying loan secured by a mixed-use building in New York, NY. This transaction was structured by Justin Godner of Lancewood. $3,800,000 bridge loan to finance a mixed-use property in the Ybor City neighborhood of Tampa, FL. This transaction was structured by Stephen Zaro of Lancewood. $2,850,000 bridge loan to finance three buildings located in the Midtown East neighborhood of New York, NY. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with an initial advance of $1,720,000 for a Seattle-based real estate lender. The underlying industrial property is located in Los Angeles, California. This transaction was structured by Justin Godner of Lancewood. $6,500,000 senior note financing for a $12,000,000 underlying loan secured by a single-family residence in Miami, FL. The underlying lender is Florida-based. This transaction was structured by Justin Godner of Lancewood. $3,410,000 bridge loan to finance a 31-unit multifamily building in Fordham Heights neighborhood of New York. This transaction was structured by Matt Schatzle of Lancewood. $12,000,000 senior note financing for a $20,000,000 underlying loan for the completion of a ground-up development in the SoHo neighborhood of New York, NY. This transaction was structured by Justin Godner of Lancewood. $1,400,000 bridge loan to finance a 26,000sf owner occupied industrial building in Boynton Beach, FL. The borrower needed a quick closing to pursue a time-sensitive acquisition opportunity. This transaction was structured by Matt Schatzle of Lancewood. $7,360,000 senior note financing to finance a newly-constructed condominium building in New York, NY. The units were recently brought to market and the developer needed a condo inventory loan. This transaction was structured by Justin Godner of Lancewood. $50,000,000 senior credit facility with an initial loan advance of $7,800,000 for a New York-based real estate lender. The underlying property is located in Brooklyn, NY. This transaction was structured by Justin Godner of Lancewood. $3,000,000 bridge loan secured by an eight-unit condo building in the Bushwick neighborhood of Brooklyn, NY and four mixed-use buildings in the downtown area of White Plains, NY. This transaction was structured by Matt Schatzle of Lancewood. The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 21st, 2021

AT $170MM LOTUS ARRANGES ONE OF THE LARGEST PREDEVELOPMENT FINANCINGS EVER RECORDED IN FLORIDA

Lotus Capital Partners, LLC (“Lotus”), a boutique real estate capital advisory firm, announced today that it has successfully arranged and structured a $170 million recapitalization and predevelopment financing package for Newgard Development Group “Newgard” on one of the largest waterfront developmentsites in Brickell, Miami, the fastest growing downtown in the... The post AT $170MM LOTUS ARRANGES ONE OF THE LARGEST PREDEVELOPMENT FINANCINGS EVER RECORDED IN FLORIDA appeared first on Real Estate Weekly. Lotus Capital Partners, LLC (“Lotus”), a boutique real estate capital advisory firm, announced today that it has successfully arranged and structured a $170 million recapitalization and predevelopment financing package for Newgard Development Group “Newgard” on one of the largest waterfront developmentsites in Brickell, Miami, the fastest growing downtown in the United States. The prime waterfront site consists of 1.62 acres within the heart of Brickell with over 400 feet of frontage along the Miami River. Upon completion, the project will consist of three main components: (i) a 362-unit, Lofty-branded residential condominium tower, which is largely under contract; (ii) a 422-unit multifamily tower; and, (iii) a soon-to-be announced international five-star branded residence building. The financing package, funded by 3650 REIT, is unique in that it combines structural features of both an acquisition and a construction loan. Unlike traditional acquisition loans, which finance the acquisition of the land and fund some nominal soft costs, this financing package is designed to capitalize sales broker commissions, marketing, and nearly half of all anticipated soft costs for the overall development. “We are very happy to have worked with Harvey for a second time. The project represents one of the most exciting mixed-use developments in the City of Miami and we have been believers in his vision since he found the site,” said Lotus Managing Partner, Faisal Ashraf. “The folks at Lotus were instrumental on structuring this finance facility, looking forward to continuing collaborating with them,” said Newgard Development Group Founder and CEO, Harvey Hernandez. The post AT $170MM LOTUS ARRANGES ONE OF THE LARGEST PREDEVELOPMENT FINANCINGS EVER RECORDED IN FLORIDA appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyJul 2nd, 2022