{"doc": "And our foodservice Focus 6 product lines grew share year over year in broad-line distribution.\nChicken was a bright spot, where we saw our volumes improved 3.6%.\nAs discussed at Investor Day, we are also in the process of building 12 new plants.\nIn the quarter, our cost of goods sold was up 18% relative to the same period last year.\nAs a result, our average sales price for the quarter increased 19.6% relative to the same period last year.\nLast year, Tyson Foods donated more than 16 million pounds of protein, the equivalent of 64 million meals to fight hunger.\n1 in our sector in their rankings of the world's most admired companies.\nWe delivered solid operating income performance, up 40% for the quarter.\nFor example, we provided our hourly team members with more than $50 million in bonuses during the first quarter.\nWe saw chicken volumes grow 3.6% in the quarter, driven by strong fundamental demand and improved live production.\nIn prepared foods, volumes were down 2.6% in the first quarter.\nAbout half of the decline was related to pet treats divestiture.\nIn beef, volumes were down 6.2%, driven by labor shortages previously mentioned.\nWe expect these headwinds on volume to normalize over the course of fiscal 2022.\nOverall, we expect to grow our total company volumes by 2% to 3% in FY '22, outpacing protein consumption growth.\nChicken remains a top priority and we continue to execute against our road map to achieve an operating income margin of 5% to 7% on a run-rate basis by mid-fiscal '22.\nWe were pleased with our volume growth in the quarter and expect further improvements as we grow our harvest capacity utilization from an average of 37 million head per week in FY '21 to 40 million head per week by year end.\nThe program aims to deliver $1 billion in recurring productivity savings by the end of fiscal '24 relative to a fiscal 2021 cost baseline and has three critical focus areas, which are operational and functional excellence, digital solutions, and automation.\nAs a result of projects like these, we're on track to deliver $300 million to $400 million of savings in fiscal 2022.\nThis starts by returning our operating margin to the 5% to 7% level by the middle of fiscal 2022.\nOn capital alone, we're expected to invest $2 billion in fiscal year '22 with a disproportionate share focused on new capacity and automation objectives.\nDuring the quarter, we returned over $500 million in dividends and share repurchases.\nOur sales were up approximately 24% in the first quarter, largely a function of our pricing initiatives to offset inflationary pressures.\nLooking at our sales results by channel, retail drove almost $350 million of top-line improvements versus last year.\nImprovements in sales through the foodservice channel drove an increase of $1 billion and our export sales were nearly $333 million stronger than the prior-year period as we leveraged our global scale to grow our business.\nFirst-quarter operating income of $1.4 billion was up 40% relative to the same quarter last year due to increased earnings in beef, pork, and chicken.\nDriven by the strength in operating income, first-quarter earnings per share grew 48% to $2.87.\nSlide 10 bridges year-to-date operating income, which was $407 million higher than fiscal 2021.\nDeclines in beef and prepared foods were largely due to continued labor challenges in those segments.\nOur pricing actions led to approximately $2.1 billion in sales and price/mix benefits during the quarter.\nwhich offset the higher cost of goods sold of $1.6 billion.\nWe saw continued inflation across the business, in some instances, up 20% to 30%.\nAnd finally, SG&A was $88 million unfavorable to the same period last year, which was largely a result of cycling a $55 million benefit recorded last year for the recovery of cattle.\nSegment sales were more than $5 billion for the quarter, up 25% versus the same period last year.\nSales growth was driven by continued strong demand for beef products, which has supported higher average sales price.\nWe delivered segment operating income of $956 million, up 81% versus the prior comparable period.\nOur operating margin of 19.1% was notably higher than the same quarter last year but was down on a sequential basis versus the last two quarters as cost increases led to a narrowing of the spread.\nSegment sales were over $1.6 billion for the quarter, up 13% versus the same period last year.\nKey sales drivers for the segment included higher average sales price due to strong demand and increased hog costs, partially offset by a challenging labor environment.\nAverage sales price increased 12.8% and volumes were slightly higher relative to the same period last year.\nSegment operating income was $164 million for the quarter, up 41% versus the comparable period.\nOverall, operating margins for the segment improved to 10.1% for the quarter.\nSales were $2.3 billion for the quarter, up 10% relative to the same period last year.\nOperating margins for the segment were 8% or $186 million for the first quarter.\nSales were $3.9 billion for the quarter, up 37%.\nVolumes improved 3.6% in the quarter due to strong consumer demand and increased life production.\nAverage sales price improved around 20% in the first quarter compared to the same period last year.\nChicken delivered adjusted operating income of $117 million in the first quarter of fiscal 2022, representing an operating margin of 3%.\nOperating income in the quarter was negatively impacted by $185 million of higher feed ingredient costs.\nContinued strength in our earnings this quarter have further improved our leverage ratio to 1.1 times net debt to adjusted EBITDA.\nWe are maintaining our total company sales guidance of $49 billion to $51 billion, although we expect to perform at the upper end of the range.\nIn support of our sales growth, we still expect a 2% to 3% volume growth on a year-over-year basis as we work to optimize our existing footprint and run our plants full.\nLooking at AOI margin target ranges for our segments, in chicken, our operational turnaround is working and we still expect to achieve a run rate profitability of 5% to 7% by the middle of the year.\nWe expect full-year margins that also fall between 5% to 7%.\nPrepared foods is expected to deliver margins during fiscal '22 of between 7% and 9%.\nIn beef, we are maintaining our AOI margin at 9% to 11%, but we expect to perform at the upper end of the range.\nIn Pork, we expect similar performance during fiscal '22 to what we accomplished during fiscal '21, equating to a margin of between 5% and 7%.\nIn international/other, we expect margins of 2% to 3% as capacity expansions and strong global demand support volume growth and improved profitability.\nConsistent with our expectation for a meaningful increase in capex spending to pursue a healthy pipeline of projects with strong return profiles, we anticipate capex spending of approximately $2 billion during fiscal 2022.", "summaries": "About half of the decline was related to pet treats divestiture.\nWe expect these headwinds on volume to normalize over the course of fiscal 2022.\nOverall, we expect to grow our total company volumes by 2% to 3% in FY '22, outpacing protein consumption growth.\nThe program aims to deliver $1 billion in recurring productivity savings by the end of fiscal '24 relative to a fiscal 2021 cost baseline and has three critical focus areas, which are operational and functional excellence, digital solutions, and automation.\nOn capital alone, we're expected to invest $2 billion in fiscal year '22 with a disproportionate share focused on new capacity and automation objectives.\nDriven by the strength in operating income, first-quarter earnings per share grew 48% to $2.87.\nDeclines in beef and prepared foods were largely due to continued labor challenges in those segments.\nSales growth was driven by continued strong demand for beef products, which has supported higher average sales price.\nKey sales drivers for the segment included higher average sales price due to strong demand and increased hog costs, partially offset by a challenging labor environment.\nWe are maintaining our total company sales guidance of $49 billion to $51 billion, although we expect to perform at the upper end of the range.\nIn support of our sales growth, we still expect a 2% to 3% volume growth on a year-over-year basis as we work to optimize our existing footprint and run our plants full.\nIn international/other, we expect margins of 2% to 3% as capacity expansions and strong global demand support volume growth and improved profitability.\nConsistent with our expectation for a meaningful increase in capex spending to pursue a healthy pipeline of projects with strong return profiles, we anticipate capex spending of approximately $2 billion during fiscal 2022.", "labels": 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{"doc": "Revenue for the quarter was up 208% to $914 million and up over 112% to approximately $1.6 billion for the first half of 2021, both new records for our business.\nProfitability also reached new highs, with adjusted EBITDA of $164 million for the quarter and $292 million for the first six months of the year.\nDatatech's hardgoods sell-through in Q2 was up an impressive 40% versus 2019, and retail inventory levels remain extremely low, with only 2.2 months on hand at the end of June as industry supply chain strained to keep up with the last 12 months of unprecedented demand.\nAlso, we have become accustomed to adapting to these circumstances over the last 18 months, and thus, we're able to shift some portion of our production to other less-impacted factories.\nStill, given how lean inventories are already, the fact that nearly all our factories are running at 100% capacity, and that we'll need to shift production shortly toward next year's launches to protect that supply, these shutdowns will have an estimated $55 million negative impact on second-half revenues, primarily in our golf equipment segment and primarily in Q3.\nTo contextualize, year over year for the second quarter, we saw more than 30% comp store growth in our own retail stores versus 2019, the last period of unaffected by COVID as well as strong growth in sell-through at wholesale accounts and e-commerce.\nAnother fun fact is that we are not just seeing brand momentum in the target male audience buying for themselves, as approximately 30% of the direct-to-consumer sales that we track are her buying for him.\nLooking forward, and this assumes no major restrictions from COVID upticks, we feel same venue sales for Q3 will be above Q2 results, while we expect Q4 sales to be slightly slower than Q2 due to the corporate events mixed in that quarter and that the full year should end at approximately 90%.\nAt the end of the year, we will have 67 domestic venues in operation across three owned UPA venues for a total of 70 owned venues in operation.\nThe Toptracer business had a successful quarter as well, with over 2,000 bays installed in Q2, setting a new record as we continue to see strong demand and excellent customer feedback.\nWhile some challenges remain on the installation front due to COVID, we expect to meet or exceed our target of 8,000 new bays for the year.\nOn the supply chain side, our guidance assumes an estimated $55 million negative impact to our top-line growth, primarily in Q3, to account for current disruptions.\nI'll let Brian discuss the numbers in more detail, but the headline is that we expect our full-year 2021 sales to be over $1.3 billion higher than 2019 and adjusted EBITDA to be between $134 million and $149 million higher than 2019.\nAs of June 30, 2021, our available liquidity, which is comprised of cash on hand and availability under our credit facilities, was $877 million, compared to $483 million at June 30, 2020.\nIn evaluating our results for the second quarter and first half, you should keep in mind the following: First, our non-GAAP results exclude non-cash amortization expense of intangible assets acquired in acquisitions, including fair value adjustments to Topgolf's leases and debt; noncash depreciation expense from the fair value step-up of Topgolf assets; transaction and transition costs from the acquisitions; noncash amortization of the debt discount on the notes issued during the second quarter of 2020; the $174 million pre-tax non-cash impairment charge in the second quarter of 2020 related to the Jack Wolfskin goodwill and trade name; a $253 million non-cash gain related to the write-up of our premerger Topgolf investment; a $33 million benefit in the second quarter of 2021 from the reversal of a portion of the noncash valuation allowance related to certain of our deferred tax assets and certain other nonrecurring items.\nLooking at Slides 10 and 11.\nWith that said, consolidated second quarter 2020 revenues were $914 million, compared to $297 million for the same period in 2020, an increase of $617 million or 208%.\nThis increase was led by a 98% increase in the golf equipment and soft goods businesses as well as an incremental $325 million from the Topgolf business.\nChanges in foreign currency rates had an $18 million favorable impact on second-quarter 2021 revenues.\nConsolidated second-quarter 2020 revenues also increased $467 million or 105% compared to the same period in 2019, including a 37% increase in golf equipment and 21% increase in our soft goods business.\nAs a result, consolidated revenue for the first half of 2021 increased $826 million or 112% compared to 2020 and increased $602 million or 63% compared to the same period in 2019.\nTotal cost and expenses were $806 million in the second quarter of 2021, compared to $474 million in the second quarter of 2020.\nOn a non-GAAP basis, which excludes, among other things, the $174 million non-cash impairment charge in the second quarter of 2020, our total costs and expenses increased $503 million to $796 million for the second quarter of 2021, compared to $293 million in the second quarter of 2020.\nTopgolf added $301 million of total costs and expenses.\nWe are also reporting for the second quarter of 2021 operating income of $107 million, an increase of $285 million, compared to a loss of $177 million for the same period in 2020.\nOn a non-GAAP basis, which excludes the impairment charge in 2020, operating income for the second quarter of 2021 was $118 million, a $114 million increase, compared to $4 million for the same period in 2020.\nThe increase in second-quarter non-GAAP operating income was led by a $96 million increase in segment operating income from our golf equipment and soft goods businesses as well as an incremental $24 million from the Topgolf business.\nNon-GAAP operating income for the first half of 2021 increased $167 million to $215 million, compared to $47 million for the first half of 2020.\nOther expense was $31 million in the second quarter of 2021, compared to other income of $2 million in the same period of the prior year.\nOn a non-GAAP basis, other expense was $27 million in the second quarter of 2021, compared to other income of $3 million for the comparable period in 2020.\nThe $30 million decrease was primarily related to $14 million of higher interest expense related to the Topgolf business in the second quarter of 2021 and an $11 million gain from the settlement of a cross-currency swap arrangement in the second quarter of 2020.\nNon-GAAP other expense for the first half of 2021, which excludes, among other things, the $253 million non-cash gain related to the write-up of the company's premerger investment in Topgolf, was $33 million of expense, compared to $1 million of income in the first half of 2020.\nEarnings per share was $0.47 on approximately 194 million shares in the second quarter of 2021, compared to a loss per share of $1.78 on approximately 94 million shares in the second quarter of 2020.\nNon-GAAP earnings per share was $0.36 in the second quarter of 2021, compared to earnings per share of $0.06 for the second quarter of 2020.\nNon-GAAP fully diluted shares were 194 million in the second quarter of 2021, compared to 95 million shares for the same period in 2020.\nFull-year estimated diluted shares is approximately 178 million shares, which includes the weighted average shares issued in connection with the merger over approximately a 10-month period.\nAs of June 2021, we had approximately 186 million shares that were issued and outstanding.\nAdjusted EBITDA was $164 million in the second quarter of 2021 compared to $29 million in the second quarter of 2020 and $66 million in the second quarter of 2019.\nTopgolf contributed adjusted EBITDA of $57 million.\nFor the first half of 2021, adjusted EBITDA was $292 million compared to $89 million in the first half of 2020 and $159 million in the first half of 2019.\nTopgolf contributed adjusted EBITDA of $17 million for the four months.\nAs of June 30, 2021, available liquidity, which represents availability under our credit facilities, plus cash on hand, was $877 million compared to $483 million at the end of the second quarter of 2020.\nAt June 30, 2021, we had total net debt of $1.1 billion, including $652 million of Topgolf-related net debt.\nThe Topgolf debt includes demand -- I mean, deemed landlord financing of $263 million related to financing of its venue businesses.\nOur consolidated net accounts receivable was $325 million, an increase of 52% compared to $214 million at the end of the second quarter of 2020.\nThe legacy business sales outstanding decreased to 58 days on June 30, 2020, compared to 79 days as of June 30, 2020.\nThe increase in net accounts receivable is primarily attributable to the increase in second-quarter revenue but also includes an incremental $9 million of Topgolf accounts receivable.\nAlso displayed on Slide 12, our inventory balance decreased by 12% to $335 million at the end of the second quarter of 2021 compared to $379 million at the end of the second quarter of the prior year.\nThis $44 million decrease was due to the high demand we were experiencing in the golf equipment business and better-than-expected performance in our soft goods business.\nTopgolf added approximately $14 million of inventory this quarter.\nCapital expenditures for the first six months of 2021 were $96 million, net of expected REIT reimbursements.\nThis includes $66 million related to Topgolf.\nFrom the full-year 2021 forecast perspective, the golf equipment and soft goods business forecast is $65 million, consistent with our previous forecast.\nThe 2021 full-year forecast for Callaway and Topgolf is approximately $243 million, net of reimbursements, primarily related to the new venue openings.\nThe foregoing does not include approximately $33 million in capital expenditures for Topgolf in January and February premerger.\nDepreciation and amortization expense was $43 million in the second quarter of 2021.\nNon-GAAP depreciation and amortization expense was $36 million in the second quarter of 2021, compared to $8 million in 2020.\nThis includes $27 million of non-GAAP depreciation and amortization related to Topgolf.\nFor the full year in 2021, we expect non-GAAP depreciation and amortization expense to be approximately $133 million, which includes $95 million for the Topgolf business.\nThe foregoing does not include approximately $18 million of Topgolf non-GAAP depreciation and amortization for January and February in the aggregate.\nPlease note this guidance only includes the post-merger Topgolf results for 10 months of 2021.\nFor the full year, we expect revenue to range from $3.025 billion and $3.055 billion.\nThat compares to $1.590 billion in 2020 and $1.701 billion in 2019.\nThe company's full-year 2021 net sales estimate assumes continued positive demand fundamentals for our golf equipment and soft goods segment; no further business, supply chain, and retail shutdowns due to COVID; and the Topgolf's 10 months of segment sales approach 2019 full year levels of $1.06 billion.\nThe outlook also assumes $55 million of supply chain risk due to the current Southeast Asia COVID shutdowns, almost all of which is expected to occur in the third-quarter 2021.\nFrom a cost perspective, full-year 2021 non-GAAP operating expenses for our golf equipment and soft goods businesses are estimated to be approximately $100 million higher than full-year 2019 non-GAAP operating expenses.\nThis is $20 million to $30 million higher than we previously guided at the beginning of the year, and the increase is related primarily to variable costs associated with the strong performance of the business this year, accelerated investments in the TravisMathew brand to support its faster-than-expected growth and additional corporate infrastructure costs to support a larger organization.\nInvestors should also note that approximately 85% of the incremental $100 million in expense is expected to be incurred in the second half of 2021 due in part to the Callaway apparel business in Korea that we took over from our licensee in July and a more normalized level of spend in the second half of 2021 to support all of our businesses.\nFull-year adjusted EBITDA is projected to be between $345 million and $360 million.\nThe company's full-year 2021 adjusted EBITDA estimate assumes the Topgolf segment will deliver over $100 million in adjusted EBITDA for the 10 months beginning March 8, 2021.\nFrom a third-quarter perspective, we expect revenue to range from $775 million to $790 million versus 2020 revenue of $476 million and 2019 revenue of $426 million.\nWe expect adjusted EBITDA for the third-quarter 2021 to be between $51 million to $58 million versus 2020 of $87 million and 2019 of $57 million.", "summaries": "With that said, consolidated second quarter 2020 revenues were $914 million, compared to $297 million for the same period in 2020, an increase of $617 million or 208%.\nEarnings per share was $0.47 on approximately 194 million shares in the second quarter of 2021, compared to a loss per share of $1.78 on approximately 94 million shares in the second quarter of 2020.\nNon-GAAP earnings per share was $0.36 in the second quarter of 2021, compared to earnings per share of $0.06 for the second quarter of 2020.\nFrom a third-quarter perspective, we expect revenue to range from $775 million to $790 million versus 2020 revenue of $476 million and 2019 revenue of $426 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "For fiscal 2021 third quarter, we had net sales of $112 million, adjusted gross margin of 27%, adjusted EBITDA of $17 million and adjusted net income of $1 million equal to $0.02 per diluted share.\nMoreover, our cash position significantly improved to more than $80 million at the end of Q3 from $34 million at the end of the preceding quarter.\nWe used the proceeds from the refinancing on some cash to retire our outstanding Term B loan balance of approximately $540 million.\nWe estimate that the transaction will add approximately $50 million of free cash flow in the first year alone.\nSimilarly, I'd like to note that the part of this financing, the second-lien investors received warrants in Lannett, which have historic price of $6.88.\nMost recently, we launched two products in Q3 including Levorphanol, IR tablets 3 mg a partnered product and Chlorpromazine, an internally developed product.\nThus far in Q4, we launched Venlafaxine ER tablets 75 mg and expect to launch a few more products in the next few months.\nIn addition, we have more than 18 products in development, another 11 pending with the FDA including partnered products, plus four additional products that are approved and pending launch.\nSo the FDA's feedback is very encouraging as they reviewed in detail our human pilot study where our insulin glargine met all the primary pharamakinetic and pharmadynamic safety endpoints and the FDA has indicated the same type of study with glargine produced at commercial scale to complete the new facility will be sufficient to file a 351(k) biosimilar application.\nMoreover, the structure of the new debt substantially increased our free cash flow potential around $50 million in the first year alone that will allow us to further invest in growth opportunities.\nFor the 2021 third quarter, net sales were $112.4 million, compared with $144.4 million for the third quarter of last year.\nGross profit was $30.4 million or 27% of net sales, compared with $52.3 million or 36% of net sales for the prior year third quarter.\nResearch and development expenses declined to $6.0 million from $7.4 million.\nSG&A expenses declined to $14.4 million from $17.7 million.\nInterest expense decreased to $9.8 million from $12.7 million in last year's third quarter.\nNet income was $1.0 million or $0.02 per diluted share, compared with $11.7 million or $0.27 per diluted share.\nAdjusted EBITDA was $17.0 million, which was positively impacted by lower R&D expenses in the quarter due to timing.\nAt March 31, 2021, cash and cash equivalents totaled approximately $81 million, up significantly from $34 million at December 31.\nFor the last six plus years, we have made excellent progress paying down this debt reducing by more than half the original outstanding debt balance of approximately $1.3 billion.\nThe refinancing included two new debt instruments, specifically, $350 million of first lien senior secured notes and $190 million of second lien loans, which were used to retire the approximately $540 million outstanding balance of our Term B loan.\nAs part of the transaction, we also upsized our revolving credit facility to $45 million from $30 million.\nThe second lien facility is junior in priority to the new first lien senior secured notes and included 8.28 million warrants exercisable into the company's common equity at a strike price of $6.88.\nWith that context, the revised guidance items are as follows: adjusted interest expense of approximately $44 million, up from $41 million to $42 million.\nAnd income tax in the range of $1 million of expense to $1 million of benefit.", "summaries": "For fiscal 2021 third quarter, we had net sales of $112 million, adjusted gross margin of 27%, adjusted EBITDA of $17 million and adjusted net income of $1 million equal to $0.02 per diluted share.\nFor the 2021 third quarter, net sales were $112.4 million, compared with $144.4 million for the third quarter of last year.\nNet income was $1.0 million or $0.02 per diluted share, compared with $11.7 million or $0.27 per diluted share.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Bob was the great grandson of our founder and worked at Fluor for 42 years before retiring in 2009.\nFor 27 years, he led the Fluor Foundation, our charitable and community involvement organization that was established by his father and his uncle Si Fluor in 1952.\nIn mining, work is tracking broadly to our expectations for the next 18 months.\nBacklog for mining declined by approximately $1 billion in the quarter.\nLast week, we were notified by TxDOT that our co-lead joint venture was selected to design, construct and maintain the 6.5-mile long I-35E Phase two project here in Dallas.\nRegarding our legacy infrastructure portfolio, I want to provide an update on the Gordie Howe Bridge Project and the $138 million charge we announced today.\nDesign is essentially complete, and we have procured approximately 85% of the materials required.\nWe have been revising the forecast along the way, and this contract was previously included in our 0 margin projects in backlog.\nWe have just under $1 billion in backlog remaining for this project and anticipate substantial completion by the end of 2024.\nIn June, we fully demobilized our people and successfully completed our assignment in Afghanistan after 13 years.\nAt its peak, Fluor had 26,000 employees from 65 countries, speaking 39 languages at 76 sites and supporting over 100,000 troops.\nThis included 191,000 meals prepared per day and the establishment of the first-ever biodiesel program for the U.S. military deployed overseas.\nUnder this program, we produced over 0.5 million gallons of fuels for the bases.\nThese positive segment margin results were partially offset by a $20 million loss recognized on an embedded derivative, which is excluded from our adjusted earnings per share numbers.\nThis program started in January 2020 and included the installation of nearly 6,500 piles.\nIf laid end to end, the piles would extend 130 miles.\nThese pieces of equipment for Train one include the 345 ton, 50-meter-long main cryogenic heat exchanger and two precooler units, each weighing over 280 tons.\nFluor is relying on its 50 years at the forefront of the gasification industry and has executed more than 30 pre-FEED and FEED projects.\nFor the first seven months of this year, NuScale has received $192 million in outside investments from JGC and GS Energy, Doosan, Samsung and IHI, among others.\nWe are currently working on or have recently completed pre-EPC work that represents over $150 billion in total installed costs.\nAdditionally, we are pursuing another 200 study in FEED projects, representing almost $200 billion in TIC over the next several years.\nSo while we are seeing some near-term headwinds in 2021 with new word lumpiness, we have considerable opportunity to capture projects that are in the pipeline, and they're well suited for Fluor.\nFor the second quarter of 2021, we are reporting a diluted adjusted earnings per share amount of $0.32.\nOur diluted share count was $156 million for the quarter, up from $140 million in the first quarter.\nIn the third quarter, we expect our diluted share count to be approximately $170 million, as the effects of the issuance will be for a full quarter.\nWith the expected debt retirement, our debt to total capitalization ratio will decline to below 40% by year-end, fulfilling the goal that we set on Strategy Day.\nSince completing the offer, we have retired $26 million in debt, to date, and anticipate additional substantial retirements by the end of 2021.\nOur overall segment profit for the quarter was $67 million or 2.1%, and included the $20 million charge for embedded derivatives in Energy Solutions and quarterly new scale expenses of $19 million.\nExcluding these expenses and the effect of the embedded derivative, improves our total segment profit margin to 3.3%, in line with our guidance for the year.\nOur ending cash balance was $2.7 billion, and includes the unutilized proceeds from the convertible offering and the completion of a P3 sale in North America.\nCash flow from operations was $77 million for the quarter, and we expect cash flow generation to be positive for the second half of this year.\nWe also completed the sale of AMECO North America in the second quarter and received cash proceeds of $71 million.\nOur G&A expense was $31 million compared to $66 million last quarter.\nAt the end of the quarter, our backlog contained $1.2 billion in projects that are in a 0 margin or loss position.\nOutside of the Gordie Howe project, we have just over $200 million in backlog remaining for projects in a loss position, virtually all of which will complete by the end of 2022.\nFurthermore, looking at this slate of more recently awarded projects, project gross margin in all three segments is about 40 basis points higher than as sold gross margin, which shows there more disciplined approach to bidding is resulting in more predictable and profitable results.\nOur previous adjusted earnings per share guidance of $0.50 to $0.80 per share was based on a share count of 140 million shares and thus, implied net income of $71 million to $113 million for 2021.\nBased on the performance we see in the businesses and considering the additional shares related to the convertible preferred offering, we are raising our adjusted earnings per share guidance to a range of $0.60 to $0.80, which correlates to an adjusted net income of $94 million to $128 million for the full year.\nWe are also adjusting our segment level guidance for the second half of the year and expect segment margins to be approximately 3% to 4% in Energy Solutions, which excludes any fluctuation from the embedded foreign currency derivative, 3% to 4% in Urban Solutions, and 2.5% to 3% in Mission Solutions.\nThese margins also underpin Q3 and Q4 performance to support the updated diluted and adjusted earnings per share range of $0.60 to $0.80.\nOn our Strategy Day in January, we provided long-term 2024 earnings per share guidance of $3 to $3.50.\nThis range was provided using our 2020 share count of 140 million shares.\nAdjusting for a diluted share count of 170 million shares in 2024, we are updating our long-term earnings per share guidance to a range of $2.50 to $2.90.\nTo reinforce, we are not changing our income assumptions, just adding to the denominator.", "summaries": "So while we are seeing some near-term headwinds in 2021 with new word lumpiness, we have considerable opportunity to capture projects that are in the pipeline, and they're well suited for Fluor.\nBased on the performance we see in the businesses and considering the additional shares related to the convertible preferred offering, we are raising our adjusted earnings per share guidance to a range of $0.60 to $0.80, which correlates to an adjusted net income of $94 million to $128 million for the full year.\nThese margins also underpin Q3 and Q4 performance to support the updated diluted and adjusted earnings per share range of $0.60 to $0.80.\nTo reinforce, we are not changing our income assumptions, just adding to the denominator.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n1"}
{"doc": "Our gross profit margin expanded 200 basis points from the prior quarter to a record 32.4%, significantly exceeding our estimated sustainable range of 28% to 30% on net sales of $2.09 billion.\nOur increased gross profit margin, combined with diligent expense control, increased our non-GAAP earnings per diluted share to $1.80, a 37.5% increase from the prior quarter, and generated strong cash flow from operations of $296.3 million.\nOur shipments surpassed our expectations, increasing 5.9% over the prior quarter despite typical third quarter normal seasonal customer shutdowns and vacation schedules.\nDespite these mill price increases, our average selling price per ton sold in the third quarter was down 4.3% compared to the second quarter, primarily as a result of product mix changes that Karla will discuss in more detail.\nThe 200 basis points improvement in our gross profit margin to a record 32.4% was the major highlight of our third quarter financial performance, which drove a 40.6% increase in our non-GAAP pre-tax income over the prior quarter.\nAs such, we remain cautiously optimistic that demand for nonresidential construction activity will continue to improve through the end of the year based on healthy backlogs and positive customer sentiment.\nAs a result, we believe we are well positioned to maintain our presence as a dominant player in the energy spaces and support any further recovery in that market.\nWe have increased our 2020 capital expenditure budget by $80 million to a total of $270 million in response to opportunities to better service our customers, including the toll processing expansion in Texas and to maintain and upgrade our equipment to provide our customers with the highest-quality products and services.\nIn regard to stockholder returns, we are pleased to maintain our payment of a regularly quarterly dividend, as we have for 61 consecutive years, without ever suspending payment or reducing our dividend rate.\nWe've increased our dividend 27 times since our 1994 IPO, including the most recent increase of 13.6% in the first quarter of 2020.\nAnd we are pleased to have achieved our companywide goal of 4.7 inventory turns during the third quarter.\nIt is through their efforts that the unique aspects of our business model were able to really shine through, enabling us to achieve significant gross profit margin expansion to a record 32.4%.\nOur net sales of $2.09 billion for the third quarter of 2020 decreased 22.4% from the third quarter of 2019, with our tons sold down 13.1% and our average selling price down 11%.\nCompared to the second quarter of 2020, net sales increased 3.3%, with our tons sold up 5.9% and our average selling price per ton sold down 4.3%.\nOur tons sold exceeded our expectations of flat to up 2% from the prior quarter as demand in many of our end markets improved, with the most notable strength in nonresidential construction.\nAlthough not included in our tons sold metric, the significant rebound in our toll processing operations contributed meaningfully to our increased sales, with toll processing volumes up 81.5% from the lows experienced in the second quarter of 2020.\nAnd our average selling price per ton sold declined 4.3% compared to the second quarter.\nThe most significant shift was a 14.9% decrease in our aerospace tons sold in the third quarter, the majority of which was heat-treated aluminum and titanium products, which represent some of the higher-priced products we sell.\nOur gross profit margin for the third quarter of 2020 was a record at 32.4% and well above our estimated sustainable range of 28% to 30%.\nThis ties our record gross profit margin set in the fourth quarter of 2019 when we recorded LIFO income of $81 million compared to LIFO income of $12.5 million in the current quarter.\nOn a non-GAAP FIFO basis, which we believe is the best measure of our day-to-day operations, our gross profit margin of 31.8% increased 300 basis points from 28.8% in the third quarter of 2019 and increased 160 basis points from 30.2% in the second quarter of 2020.\nWe recorded LIFO income of $12.5 million or $0.15 of earnings per diluted share in the third quarter of 2020 compared to LIFO income of $40 million or $0.44 of earnings per share in the third quarter of 2019 and LIFO income of $5 million or $0.06 of earnings per share in the second quarter of 2020.\nAnd given our current estimate of $50 million of annual LIFO income in 2020, we expect to record $12.5 million of LIFO income in the fourth quarter of 2020.\nAnd our LIFO reserve was $100.1 million at September 30.\nOur third quarter non-GAAP SG&A expenses decreased $75.2 million or 14.5% compared to the third quarter of 2019 on a 13.1% reduction in shipments.\nThe decline in SG&A expense was mainly due to reduced variable expenses, such as plant supplies and freight costs, along with lower average head count, which was down 13.8%; as well as lower performance-based compensation.\nWhen compared to the second quarter of 2020, our non-GAAP SG&A expenses increased only 2.6% on a 5.9% increase in our tons shipped, demonstrating the efficiencies gained through our state-of-the-art processing equipment along with our continuous improvement and innovation initiative.\nDuring the third quarter of 2020, we recorded impairment and restructuring charges of $14.6 million as we continued to close or merge a few of our smaller locations and wrote off certain intangibles due to our outlook for a more challenging environment in certain markets.\nWe recorded an additional $14.6 million in nonrecurring charges, comprised of settlement charges related to the termination of multiple small, frozen, defined benefit plans and settlement of an obligation in our SERP plan.\nWe also recorded $1.8 million in debt restructuring charges related to our financing activities in the quarter for total nonrecurring charges of $31 million in the third quarter of 2020.\nWe remain solidly profitable in the third quarter of 2020, with non-GAAP pre-tax income of $158 million and a non-GAAP pre-tax margin of 7.6%.\nOur effective income tax rate for the third quarter was 22.6%, down from 25% in the third quarter of 2019 and up from 20.9% in the second quarter of 2020.\nAnd at this time, we estimate our effective tax rate for the full year of 2020 will be approximately 22.5%.\nNon-GAAP net income attributable to Reliance for the third quarter of 2020 was $120.9 million, resulting non-GAAP earnings per diluted share of $1.87, down from $2.39 in the third quarter of 2019 and mainly due to lower pricing, demand levels; and up from $1.36 in the second quarter of 2020 due to our strong gross profit margin and recovering demand.\nOn a GAAP basis, our earnings per diluted share were $1.51 in the third quarter 2020.\nWe generated strong cash flow of -- from operations of $296.3 million during the third quarter and $942.8 million during the first nine months of 2020 due to our continued profitable operations and effective working capital management, including a continued focus on rightsizing our inventory levels, which resulted in achieving our inventory turn goal of 4.7 times.\nDuring the quarter, we issued $400 million of 1.3% 5-year senior notes and $500 million of 2.15% 10-year senior notes through a public offering.\nAdditionally, in early September, we entered into an amended and restated $1.5 billion five year unsecured revolving credit facility that replaced our previous credit agreement and includes an increase option for up to an additional $1 billion.\nAt September 30, 2020, our total debt outstanding was $1.66 billion, resulting in a net-debt-to-total-capital ratio of 17.3%.\nOur net debt-to-EBITDA multiple was 1.1 times.\nAnd as of the end of the third quarter, no borrowings were outstanding on our $1.5 billion revolving credit facility.\nIn regard to capital allocation, our increased 2020 capital expenditure budget of $270 million includes additional strategic investments to address our customers' needs and drive organic growth.\nIn the third quarter of 2020, we invested $38.2 million in capital expenditures and returned $41.2 million to our stockholders through dividends and share repurchases.\nWhile macroeconomic uncertainty stemming from the COVID-19 pandemic continues, based on current expectations and market conditions, we anticipate that overall demand will continue to slowly improve in the fourth quarter of 2020.\nAs a result, we estimate our tons sold will be down 4% to 6% in the fourth quarter of 2020 compared to the third quarter of 2020.\nAs a result, we expect our average selling price in the fourth quarter of 2020 will be flat to up 2% compared to the third quarter of 2020.\nBased on these expectations, we currently anticipate non-GAAP earnings per diluted share in the range of $1.30 to $1.40 for the fourth quarter of 2020.", "summaries": "As such, we remain cautiously optimistic that demand for nonresidential construction activity will continue to improve through the end of the year based on healthy backlogs and positive customer sentiment.\nAs a result, we believe we are well positioned to maintain our presence as a dominant player in the energy spaces and support any further recovery in that market.\nOur net sales of $2.09 billion for the third quarter of 2020 decreased 22.4% from the third quarter of 2019, with our tons sold down 13.1% and our average selling price down 11%.\nOur tons sold exceeded our expectations of flat to up 2% from the prior quarter as demand in many of our end markets improved, with the most notable strength in nonresidential construction.\nOur third quarter non-GAAP SG&A expenses decreased $75.2 million or 14.5% compared to the third quarter of 2019 on a 13.1% reduction in shipments.\nNon-GAAP net income attributable to Reliance for the third quarter of 2020 was $120.9 million, resulting non-GAAP earnings per diluted share of $1.87, down from $2.39 in the third quarter of 2019 and mainly due to lower pricing, demand levels; and up from $1.36 in the second quarter of 2020 due to our strong gross profit margin and recovering demand.\nOn a GAAP basis, our earnings per diluted share were $1.51 in the third quarter 2020.\nWhile macroeconomic uncertainty stemming from the COVID-19 pandemic continues, based on current expectations and market conditions, we anticipate that overall demand will continue to slowly improve in the fourth quarter of 2020.\nAs a result, we estimate our tons sold will be down 4% to 6% in the fourth quarter of 2020 compared to the third quarter of 2020.\nAs a result, we expect our average selling price in the fourth quarter of 2020 will be flat to up 2% compared to the third quarter of 2020.\nBased on these expectations, we currently anticipate non-GAAP earnings per diluted share in the range of $1.30 to $1.40 for the fourth quarter of 2020.", "labels": "0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n1"}
{"doc": "By year-end, we will have transformed the balance sheet by repaying over $3 billion of debt, achieving our deleveraging target ahead of schedule.\nWe expect to have total liquidity of approximately $5 billion, creating the foundation to confidently execute our strategy and invest in our competitive advantages and we will have put the business in position to deliver another strong year in 2022.\nWith revenues of nearly $6 billion in the quarter, the quality of our earnings demonstrates a business model that is increasingly built upon capability and cost differentiation.\nWe are finalizing an agreement with a strategic partner to produce up to 500,000 tons annually of pig iron at Gary Works.\nWe expect the value-added capabilities of mini mill number two to drive an approximately $650 million of incremental EBITDA contribution from this investment once fully ramped.\nThis line will have 325,000 tons of annual capability and will sustainably produce both Galvalum and galvanized product.\nWe expect the investment to contribute another $60 million of annual run rate EBITDA to Big Rivers already industry-leading results.\nWe expect the line to produce a mix of 75% Galvalum and 25% hot-dip galvanizing.\nWhen we closed on the Big River Steel acquisition at the start of the year, we carried $7 billion of debt and expect to end the year with $3.9 billion.\nWeve extended the maturity profile and expect next years run rate cash interest expense to be approximately $225 million.\nReinstating the $0.05 per share quarterly dividend and moving quickly on a $300 million stock buyback demonstrates our commitment to ensuring our strategy is indeed best for all.\nIn addition, the option for Stelco to acquire 25% of Minntac remains in place through January of 2027 and presents an opportunity to return up to $500 million of incremental capital to stockholders.\nWe delivered adjusted EBITDA and EBITDA margin of over $2 billion and 34%, respectively.\nThis represents a nearly $750 million or a 58% increase over the second quarter.\nAdjusted earnings per share in the quarter was $5.36 per diluted share.\nWe also generated approximately $1.3 billion of free cash flow in the quarter, including a $400 million investment in working capital.\nYear-to-date, we have repaid approximately $2.7 billion of debt and expect to end the year with $3.9 billion of debt on the balance sheet, an amount we are confident is sustainable and supports the investments we are making in our business.\nWe ended the quarter with net debt to last 12 months EBITDA of 0.6 times and expect to end the year at 0.2 times.\nWith the balance sheet strengthened, 80% of our remaining debt due in 2029 and beyond and a fully funded pension plan, we are well positioned for a future of value creation.\nOur Flat-Rolled segment delivered record EBITDA and EBITDA margin of over $1.1 billion and 32%, respectively.\nThis represents an approximately 60% improvement versus the second quarter.\nThird quarter EBITDA was $464 million or an industry-leading 42% EBITDA margin.\nWe currently expect the fourth quarter to be another record for our mini mill segment, potentially exceeding $500 million of EBITDA in the fourth quarter.\nEBITDA was $418 million in the quarter or 33% EBITDA margin.\nThis will remove approximately 250,000 tons of lost steel equivalent capacity from the market in the fourth quarter.\nWe are executing a robust contract process with customers, in most instances, having begun discussions 90 days sooner than we have historically.\nWeve also listened to our customers and in some instances, have signed agreements beyond 12 months.", "summaries": "Adjusted earnings per share in the quarter was $5.36 per diluted share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "These statements are made in reliance on the safe harbor provision of the Private Securities Litigation Reform Act of 1995.\nWith respect to our renewal book, our policy retention rate remained very strong at 94% for the quarter.\nAnd overall, our renewal premium was down 11% on a year-over-year basis.\nDue to declines in both frequency and severity for lost time claims, we've lowered our current accident year loss and LAE ratio on voluntary business to 63.6% 63.9%, down from 65.5% a year ago and 64.3% at year-end.\nWe underwent a reduction in force, which impacted approximately 7% of our workforce.\nAs a result, our first quarter underwriting and general and administrative expenses of $46.6 million will be the high watermark for 2021, and you will see immediate and significant expense reductions for the remainder of the year.\nDuring the quarter, we delivered a 4.8% annualized return on adjusted equity and a combined ratio of 93.9% within our largest operating segment employers.\nOur net premiums earned were $134 million, a decrease of 20% year-over-year.\nOur losses and loss adjustment expenses were $70 million, a decrease of 33%.\nThe company recognized $13 million of favorable prior year loss reserve development on its voluntary business during the quarter, which related primarily to accident years 2017 and prior versus $3 million of favorable prior year loss reserve development a year ago.\nCommission expenses were $17 million, a decrease of 21%.\nUnderwriting and general and administrative expenses were $47 million, largely unchanged from a year ago.\nDuring the first quarter, we recognized a onetime $2.3 million acceleration in share-based compensation in connection with the retirement of our former CEO, Doug Dirks, Also, as Kathy mentioned previously, future quarters will reflect an immediate reduction in expenses from actions taken and completed during the first quarter.\nOur other expenses were $2.9 million, representing employee severance costs associated with our first quarter 2021 reduction in force.\nFrom a reporting segment perspective, our Employers segment had underwriting income of $8 million for the quarter versus $1 million a year ago, and its combined ratios were 93.9% and 99.5%, respectively.\nOur Cerity segment had an underwriting loss of $4 million for the quarter, consistent with its underwriting loss a year ago.\nOur net investment income was $18 million for the quarter, down 8%.\nAt quarter end, our fixed maturities had a duration of 3.8 and an average credit quality of A+, and our equity securities and other investments represented 10% of our total investment portfolio.\nOur net income this quarter was favorably impacted by $8 million of after-tax unrealized gains from equity securities and other investments, which are reflected on our income statement.\nConversely, our shareholders' equity and book value per share this quarter were each unfavorably impacted by $36 million of after-tax unrealized losses from fixed maturity securities, which are reflected on our balance sheet.\nAnd finally, during the quarter, we repurchased $10 million of our common stock at an average price of $32.21 per share, and our remaining share repurchase authority currently stands at just under $19 million.\nAs Mike mentioned, our Cerity operating segment, which offers digital workers' compensation insurance solutions directly to consumers, is gaining traction and has written $0.5 million in premium thus far in 2021.", "summaries": "Our net premiums earned were $134 million, a decrease of 20% year-over-year.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our growth was especially strong in CRM Precision at 24%.\nOur EBIT margins for the third quarter were 15.8%, which exceeded our 2020 margins and significantly outpaced the comparable period in 2019.\nNet income and earnings per share for the quarter grew by more than 13% versus 2020 and were also significantly above our 2019 results.\nWe currently expect our full year organic growth to be approximately 9% and our full year EBIT margin to exceed our year-to-date margin for the nine months ended September 30, 2021 of 15.1%.\nOmnicom Media Group acquired Jump 450 Media, a performance marketing agency.\nJump 450 will form the foundation for a dedicated performance media platform and business operation within OMG.\nOSK has been in the top-10 of PR and comms agencies in Germany since 2008 and is the undisputed number-one for automotive.\nOmni is a unique and powerful tool for us, and we now have over 40,000 Omnicom colleagues provisioned on the platform in over 60 countries.\nHundreds of our clients, including all of our top-20, utilized Omni.\nWe recently expanded the curriculum for our DE&I and OPEN2.0 strategies.\nSlide 3 shows our third quarter improvement across our income statement, where our revenue growth and expense control drove an 8% increase in operating profit.\nOur effective tax rate for the third quarter was 24.1%, down from our estimated effective rate for 2021 of between 26.5% and 27%.\nThis was primarily due to the favorable settlement of uncertain tax positions in certain jurisdictions, the impact of which was approximately $10 million.\nThese items positively impacted net income and diluted earnings per share, which was $1.65, up $0.20 or 13.8% versus Q3 of last year and up $0.33 versus the third quarter of 2019.\nAnd finally, our $0.70 quarterly dividend, which was raised back in February, is 7.7% higher than last year.\nOur total revenue growth was 7.1%.\nOrganic growth for the quarter was 11.5% or $367 million, which represents a significant improvement compared to Q3 of 2020 when the pandemic drove an organic revenue decline of 11.7%.\nThe impact of foreign exchange rates increased our revenue by 1.6% in the quarter as the dollar continued to weaken against most of our larger currencies compared to the prior year.\nIf FX rates stay where they were on October 15, we expect foreign exchange to decrease our reported revenue by approximately 1% for the fourth quarter and increase our reported revenue by 2% for the full year.\nThe impact on revenue from net acquisitions and dispositions decreased revenue by 5.9%.\nBased on transactions that have been completed through September 30, 2021, our estimate is the net impact of our acquisition and disposition activity for the balance of the year will decrease reported revenue by approximately 7% in the fourth quarter and by approximately 4% for the full year.\nAdvertising, our largest discipline at 53% of our total revenues, posted 8.6% organic growth with very strong performance from both our creative agencies and our media agencies.\nPlease note that reported Advertising growth is down 0.4%, due primarily to the disposition of ICON in Q2 of 2021.\nOur agencies focused on direct, digital and marketing transformation consulting services in our precision marketing discipline also posted strong organic growth at 24.3%.\nCRM Commerce and Brand Consulting was up 18%, with our branding agencies leading the discipline's performance.\nCRM Experiential was up 50%.\nCRM Execution & Support was up 8.3%, reflecting a recovery in client spend compared to the prior year in our field marketing businesses, while our research businesses continued to lag.\nPR was up 10.5%.\nAnd finally, our Healthcare discipline was up 6.6% organically.\nOutside the U.S., where total organic growth was 16%.\nIn addition, experiential growth outside the U.S. was over 100% in total.\nIn the U.S., we generated 7.7% organic growth, which was boosted by strong double-digit growth in our precision marketing and PR disciplines as well as solid growth at our healthcare agencies.\nThese costs increased by 7.6% in total, and they tend to fluctuate with the change in revenue.\nWe would also note that Q3 2020 salary and service cost amounts were reduced by reimbursements received from government programs of $68.7 million.\nThe tight labor market will create challenges in the near term that we are confident our management teams will overcome.\nThird-party service costs, which fluctuate with changes in revenue, decreased 6.9% during the quarter due to our net disposition activity, primarily related to the disposition of ICON and partially offset by the organic growth in revenue as well as the effects of foreign currency exchange rate changes.\nOccupancy and other costs, which are not directly linked to changes in revenue, were up 4.5% year-on-year or 2.9% when excluding foreign exchange rate translation impacts.\nSG&A expense levels were up 5.3% on a year-over-year basis or 4.2% when excluding foreign exchange rate translation impacts.\nWith the strong revenue growth we discussed earlier, coupled with good expense control, you can see a notable improvement in our operating profit on a year-over-year basis at the bottom of the slide, up 8% for the quarter and 60.1% year-to-date.\nFor the third quarter, our operating profit margin was 15.8% as expressed in terms of our reported total revenues.\nLastly, on this slide, our reported EBITDA for the quarter was $560.3 million, up 7.4% for the quarter and 56.3% year-to-date.\nLet's now turn to our cash flow performance on Slide 10, where you can see that in the first nine months of 2021, we generated $1.2 billion of free cash flow excluding changes in working capital, a $114 million or 10% increase versus the same period last year.\nOur total debt was down about $500 million since this time last year as we eliminated the extra liquidity we added early on in the pandemic.\nWe did this through the early retirement in Q2 of $1.25 billion of our 3.65% senior notes, which were due next year, partially replaced with the issuance of $800 million of 2.6% 10-year notes due in 2031.\nAs for our debt ratios, due to our overall operating improvement versus Q3 of 2020 and our recent refinancing activity, we've reduced our total debt-to-EBITDA ratio to 2.2 times and our net debt-to-EBITDA ratio to 0.4 times.\nBoth metrics increased substantially over the 2020 levels.", "summaries": "Our EBIT margins for the third quarter were 15.8%, which exceeded our 2020 margins and significantly outpaced the comparable period in 2019.\nThese items positively impacted net income and diluted earnings per share, which was $1.65, up $0.20 or 13.8% versus Q3 of last year and up $0.33 versus the third quarter of 2019.\nOrganic growth for the quarter was 11.5% or $367 million, which represents a significant improvement compared to Q3 of 2020 when the pandemic drove an organic revenue decline of 11.7%.\nThe tight labor market will create challenges in the near term that we are confident our management teams will overcome.\nThird-party service costs, which fluctuate with changes in revenue, decreased 6.9% during the quarter due to our net disposition activity, primarily related to the disposition of ICON and partially offset by the organic growth in revenue as well as the effects of foreign currency exchange rate changes.\nBoth metrics increased substantially over the 2020 levels.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "The Company closed the third quarter with record sales of $2,323 million and record GAAP and adjusted diluted earnings per share of $1.12 and $1.09 respectively.\nSales were up 11% in US dollars and up 10% in local currencies compared to the third quarter of 2019.\nSales in the third quarter increased by 9% organically.\nAnd sequentially, sales were up 17% in US dollars and 15% in local currencies and organically.\nBreaking down sales into our two segments, the interconnect business, which comprised 96% of our sales was up 11% in US dollars and 10% in local currencies compared to the third quarter of last year.\nOur cable business, which comprised 4% of our sales, was up 2% in US dollars and 5% in local currencies compared to the third quarter of last year.\nOperating income was $476 million in the third quarter of 2020.\nOperating margins were 20.5%, which was up a very strong 250 basis points sequentially and up 80 basis points compared to the third quarter of 2019.\nFrom a segment standpoint, in the interconnect segment, margins were 22.4% in the third quarter of 2020, which increased from 21.7% in the third quarter of 2019 and 20% in the third quarter -- sorry, in the second quarter of 2020.\nIn the cable segment, margins were 10.7%, which increased from 10.2% in the third quarter of 2019 and 9.4% in the second quarter of 2020.\nInterest expense for the quarter was $28 million, which was down from $30 million in the third quarter of last year.\nThe Company's GAAP effective tax rate for the third quarter of 2020, including excess tax benefit of $11 million associated with stock option exercises during the quarter, was 22.1% compared to 24.5% in the third quarter of 2019.\nExcluding the excess tax benefit just mentioned, the Company's adjusted effective tax rate was 24.5% for both the third quarter of 2020 and 2019.\nAdjusted net income of $336 million was 14% of sales in the third quarter of 2020, another confirmation of the strength of the Company's financial performance.\nOn a GAAP basis, diluted earnings per share increased by 22% to $1.12 in the third quarter of 2020 compared to $0.92 in the third quarter of 2019.\nAdjusted diluted earnings per share increased by 15% to $1.09 in the third quarter of 2020 from $0.95 in the third quarter of 2019.\nOrders for the quarter were $2,275 million, which was up 9% compared to the third quarter of 2019 and up 15% sequentially, resulting in a book-to-bill of 0.98 to 1.\nCash flow from operations was a strong $398 million in the third quarter or 119% of adjusted net income.\nOur free cash flow was $330 million or 98% of adjusted net income.\nFrom a working capital standpoint, inventory and accounts receivable and accounts payable were $1.4 billion, $1.9 billion and $1.1 billion respectively at the end of September.\nAnd inventory days, days sales outstanding and payable days were 79, 72 and 61 days respectively.\nDuring the third quarter, our cash flow from operations of $398 million, along with the proceeds from the exercise of stock options of $104 million, were used primarily to repurchase 1.9 million shares of the Company's stock for $202 million or an average price of $108, fund dividend payments of $75 million, fund net capital expenditures of $68 million, fund acquisitions of $50 million and fund net purchases of short-term investments of $9 million.\nAt September 30, cash and short-term investments were $1.5 billion, a majority of which is held outside of the US.\nTotal debt at September 30 was $3.8 billion with no maturities before the third quarter of 2021.\nAnd net debt at September 30 was $2.4 billion.\nTotal cash on hand plus the remaining availability under our credit facilities was $4 billion at the end of the quarter.\nAnd third quarter EBITDA was $568 million and our pro forma net leverage ratio was 1.2 times.\nWith respect to the third quarter, amid what has been clearly an unprecedented and volatile year, I'm truly proud that we at Amphenol achieved record sales and adjusted earnings per share in the third quarter, realizing levels significantly above our guidance that we issued just 90 days ago.\nSales reached $2,323 million, an increase from prior year of 11% in US dollars, 10% in local currencies and 9% organically.\nWe are particularly proud to have achieved a very robust 17% sequential growth from the second quarter, which was significantly higher than our original expectations.\nAs Craig mentioned, the Company booked $2,275 million in orders, and that represented a book-to-bill of 0.98 to 1.\nNow, despite experiencing some continued operational challenges related to the pandemic, we generated excellent operating margins of 20.5% in the third quarter, and this was a full 250 basis point increase from our second quarter levels.\nJust want to say that the Company's financial position remains extremely strong with our operating cash flow of $398 million, and that was particularly notable given the stronger-than-expected sequential growth from the second quarter.\nAnd we continue to leverage that financial strength to return capital to our shareholders, both through our repurchase last quarter of 1.9 million shares of the Company's stock as well as the Board of Directors' approval of a 16% increase in our quarterly dividend that we are announcing today.\nThe military market represented 12% of our sales in the third quarter.\nSales in this market increased by 6% from prior year, driven in particular by growth in military vehicles, naval, space, communications and airframe applications.\nSequentially, our sales increased by a strong 30% as we recovered from the impact of production restrictions that hit certain of our facilities related to government measures implemented in the second quarter to control the COVID-19 pandemic.\nThe commercial aerospace market represented 2% of our sales in the third quarter.\nSales were down by 40%, a very significant level, as the commercial aircraft market once again experienced unprecedented declines in demand for new aircraft due to the pandemic-related disruptions to the global travel industry.\nSequentially, our sales were a bit better than expected, rising 4% from the second quarter.\nAccordingly, we expect an approximately 20% sequential reduction in our sales to this market in the fourth quarter.\nAnd for the full year 2020, we expect a roughly 35% decline from prior year due to the unprecedented demand disruptions that our customers are experiencing.\nThe industrial market represented 22% of our sales in the quarter.\nAnd our sales to the industrial market exceeded our expectations, increasing by 21% in US dollars and 18% organically, a very strong performance.\nAlthough we had expected sales to be modestly lower than the second quarter, we actually realized 11% sequential growth here in the third quarter, a very strong performance.\nThe automotive market represented 17% of our sales in the third quarter.\nOur team's outstanding execution led to an increase in sales from prior year by 4% in US dollars and 1% organically, well ahead of our expectations.\nSequentially, our sales increased by truly significant 78% from the second quarter as our team was able to execute quickly on a recovery in demand from automotive customers in all regions.\nThe mobile devices market represented 16% of our sales in the quarter.\nAnd our sales to mobile device customers increased by a stronger-than-expected 25% from prior year, driven in particular by increased sales of products incorporated into laptops, tablets and wearables, and this was offset in part by slightly lower year-over-year sales to smartphones.\nSequentially, our sales increased by a much stronger-than-expected 37%.\nThe mobile networks market represented 6% of our sales in the quarter.\nAnd sales decreased as we had expected from prior year by 19% in US dollars and 21% organically, driven by lower sales to wireless operators, as well as some continued impact from the US government restrictions on certain Chinese entities that we have previously discussed.\nLooking into the fourth quarter, we expect a further seasonal sales reduction of approximately 25% related to both OEMs and service providers.\nThe information technology and data communications market represented 21% of our sales in the quarter.\nSales in the third quarter were once again much better than we had anticipated, rising from prior year by a very strong 24% in US dollars and 21% organically.\nSequentially, sales were down by less-than-expected 10% from our extremely strong second quarter.\nThe broadband market represented 4% of our sales in the quarter.\nSales increased by 5% from prior year, driven by stronger demand for home installation-related equipment from broadband operators.\nOn a sequential basis, sales increased by a stronger-than-expected 13% as our customers continued to upgrade their networks in support of the increased demand for high-speed data.\nAssuming no new material disruptions from the pandemic, as well as constant exchange rates, for the 4th quarter, we expect sales in the range of $2,160 million to $2,200 million and adjusted diluted earnings per share in the range of $0.98 to $1.00.\nThis represents both sales and adjusted diluted earnings per share growth versus prior year of flat to up 2%.\nOur fourth quarter guidance also represents an expectation for full-year sales of $8,333 million to $8,373 million and full year adjusted diluted earnings per share of $3.59 to $3.61.\nThis outlook represents sales growth versus prior year of 1% to 2% and an adjusted diluted earnings per share decline of 3% to 4%.", "summaries": "The Company closed the third quarter with record sales of $2,323 million and record GAAP and adjusted diluted earnings per share of $1.12 and $1.09 respectively.\nFrom a segment standpoint, in the interconnect segment, margins were 22.4% in the third quarter of 2020, which increased from 21.7% in the third quarter of 2019 and 20% in the third quarter -- sorry, in the second quarter of 2020.\nOn a GAAP basis, diluted earnings per share increased by 22% to $1.12 in the third quarter of 2020 compared to $0.92 in the third quarter of 2019.\nAdjusted diluted earnings per share increased by 15% to $1.09 in the third quarter of 2020 from $0.95 in the third quarter of 2019.\nAnd we continue to leverage that financial strength to return capital to our shareholders, both through our repurchase last quarter of 1.9 million shares of the Company's stock as well as the Board of Directors' approval of a 16% increase in our quarterly dividend that we are announcing today.\nAssuming no new material disruptions from the pandemic, as well as constant exchange rates, for the 4th quarter, we expect sales in the range of $2,160 million to $2,200 million and adjusted diluted earnings per share in the range of $0.98 to $1.00.\nOur fourth quarter guidance also represents an expectation for full-year sales of $8,333 million to $8,373 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{"doc": "For the third quarter of 2021, net sales were $178.2 million and diluted earnings were $1.98 per share.\nFor the comparable prior year period, net sales were $145.7 million and diluted earnings were $1.39 per share.\nFor the first nine months of 2021, net sales were $562.7 million and diluted earnings were $6.64 per share.\nFor the corresponding period in 2020, net sales were $399.6 million and diluted earnings were $3.31 per share.\nCompared to the second quarter of 2021, profitability declined principally due to three factors: First, all of our firearms facilities took a very well-deserved shutdown week in July, which reduced the number of workdays in the quarter to 59 compared to 64 workdays in Q2.\nDuring the first nine months of 2021, we generated $117 million of cash from operations.\nWe reinvested $15.6 million of that back into the company in the form of capital expenditures.\nWe estimate that 2021 capital expenditures will be approximately $20 million, predominantly related to new product development.\nOur cash and short-term investments, which are invested in U.S. T-bills totaled $192.7 million.\nOur current ratio was 3.8:1, and we had no debt.\nOur stockholders' equity was $338.1 million, which equates to a book value of $19.21 per share, of which $10.95 per share was cash and short-term investments.\nIn the first nine months of 2021, we returned $45.2 million to our shareholders through the payment of dividends.\nOur Board of Directors declared a $0.79 per share quarterly dividend for shareholders of record as of November 15, 2021, payable on November 30, 2021.\nUpon receiving this $0.79 quarterly dividend, shareholders will have received $3.36 of dividends per share in 2021.\nAs a reminder, our quarterly dividend is approximately 40% of net income, and therefore, it varies quarter-to-quarter.\nWe've just begun to replenish the distributor and retail inventories that were largely depleted over the past 18 months, putting us in a great position as we head into the fourth quarter, which has traditionally been a period of strong demand.\nThe estimated unit sell-through of the company's products from the independent distributors to retailers increased 9% in the first nine months of 2021 compared to the prior-year period.\nFor the same period, the National Instant Criminal Background Check System, background checks, as adjusted by the National Shooting Sports Foundation, commonly referred to as NICS checks, decreased 11%.\nThe MAX-9 pistol and the Ruger LCP MAX pistol, which were both launched in 2021 remain in strong demand.\nIn the first nine months of 2021, new product sales represented $116 million or 22% of firearm sales compared to $88 million or 24% of firearm sales in the first nine months of 2020.\nSince March of 2020, our workforce has been strengthened by 370 folks, an increase of just over 20%, and our quarterly unit production has increased by more than 160,000 units or 45% during that period.\nA 20% increase in personnel yielding a 45% increase in production.\nDespite the growth in production at the end of third quarter 2021, our finished goods inventories remained near historic lows and distributor inventories of Ruger products were 150,000 units lower than they were at the end of 2019, the last time inventories were at what we would consider normal or expected pre-COVID-19 levels.\nIn the third quarter, we added a 225,000 square foot facility in Mayodan, North Carolina, about 1.5 miles down the road from our original Mayodan building that we purchased in 2013.", "summaries": "For the third quarter of 2021, net sales were $178.2 million and diluted earnings were $1.98 per share.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In fact, hotel RevPAR was within 20% of the comparable quarter in 2019 with 12 of our 31 hotels actually exceeding the comparable quarter results in 2019, and five hotels setting all-time highs.\nOur portfolio took nearly 1,300 basis points of RevPAR index from our competitors in the third quarter.\nIn total, this powerful combination enabled DiamondRock to generate a healthy $38.9 million of adjusted EBITDA and $0.10 of positive adjusted FFO per share.\nWe saw BT revenue jumped to 84% of the comparable 2019 levels with occupancy up 26 percentage points over the second quarter.\nEncouragingly, business transient ADR was just 1% below Q3 2019 levels.\nLead generation in the third quarter grew to over 12,400 leads, representing over 2.1 million future room nights.\nJuly was the best month for lead volume with over 750,000 room nights.\nOur Vail Resort accessioned $40 million repositioning.\nWe expect the repositioning to allow us to push average rate by $15 and to generate several million dollars of incremental retail and bar sales.\nThese ROI repositionings are expected to deliver IRRs north of 30%.\nAs a testament to DiamondRock's track record, I'm proud to announce that The Gwen was named in Conde Nast Travelers 2021 Readers Choice Awards as the number 1 hotel in Chicago, and number 8 in the world.\nIn fact, the Destin Beach Resort, that deal is now tracking to be an 8.8% cap rate on 2021 NOI.\nI'll start by highlighting DiamondRock's excellent liquidity, we finished the quarter with $538 million of total liquidity, comprised of $67 million of corporate cash, $71 million of hotel-level cash and $400 million of capacity on our revolver.\nLeverage is conservative with only $1 billion of total debt outstanding against roughly $3.5 billion in hotels and resorts.\nWe have over $300 million of investment capacity today while operating within our long-term leverage targets.\nMidweek occupancy at our urban hotels was up 26 percentage points over the second quarter.\nSince completion early in the third quarter, total RevPAR is nearly $460 a night with ADR up over $100 a night from the second quarter.\nThird quarter ADR is 22% higher than 2019, whereas prior to renovation, ADR was 4% below 2019.\nAverage daily rate was over $300 per night and among the 10 best in the portfolio.\nOur pair hotels in Key West continued to deliver strong performance with third quarter EBITDA margins 3,000 basis points above 2019 levels.\nI must recognize the Henderson Park Inn, our newest acquisition for beating our underwriting with the third highest total RevPAR in the quarter, $777 a night, $777s.\nThird quarter would have been even better, if not for the impact of wildfires in Northern California, which forced a six-week closure at The Landing at Lake Tahoe and resulted in $1.8 million of lost profit.\nThird quarter wages and benefits were 30.4% of revenue, just 50 basis points higher than 2019 owing to a 2% improvement in man hours per occupied room.\nThis is how we held gross operating profit flow-through at a constant 45% in the third quarter versus the second quarter and why comparable third quarter hotel EBITDA margins were up over 300 basis points from the second quarter.\nGroup revenue on the books for 2022 increased 14% from the second quarter, an acceleration from 8% in Q2.\nGroup revenue on the books for 2022 is now nearly 50% above the forecast for 2021.\nGroup rates for 2022 are $50 a night higher than 2021 year-to-date, owing to the fact many of DiamondRock's key group markets like Boston, Chicago, San Diego and Phoenix have strong convention calendars next year.\nAcross the entire portfolio, citywide room nights for 2022 increased 7% from the second quarter.\nAnd compared to 2019, citywide room nights for Boston, Chicago and San Diego collectively are up 3% in 2022 and up 5% in 2023.\nThis benefit is amplified by last year's conversion of nearly 20% of our portfolio from Marriott brand management, which should add over 50 basis points of portfolio margin expansion alone.\nThere is no better evidence than stealing nearly 1300 basis points of share last quarter.", "summaries": "In total, this powerful combination enabled DiamondRock to generate a healthy $38.9 million of adjusted EBITDA and $0.10 of positive adjusted FFO per share.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Debt increasing sequentially by 6% of which 3% was due to FX.\nAs a reminder, those two end-markets total more than 60% of our sales.\nOn a year-over-year basis, organic sales declined by 21% on top of an 11% year-over-year decline in the prior year quarter.\nAdjusted EBITDA margin improved by 40 basis points to 11.3% versus 10.9% in the prior year quarter.\nOperating expense as a percentage of sales increased 23% due to lower sales.\nHowever, in total dollar terms decreased 18% year-over-year.\nOur target for operating expense remains at 20%.\nAdjusted earnings per share was $0.03 compared to $0.17 in the prior year quarter, reflecting the factors I just named as well as a higher adjusted effective tax rate.\nBased on the monthly sales results in Q1, early indications from our October sales, assuming that there is no additional second wave of COVID-19 lockdowns in the quarter, we expect Q2 to see low to mid-single digit growth sequentially, which would be above our normal sequential growth pattern of 1% to 2%.\nOn the operational excellence side, simplification, modernization initiatives are on track to deliver approximately $80 million in benefits this year, increase of 67% over last year.\nThat will bring the total cumulative savings from inception of the program to $180 million, which is within the original target we set in December 2017, despite much lower volumes than were envisioned at that time.\nThis will result in significantly lower capex levels going forward, including this fiscal year where total capex is expected to be reduced by approximately 50% to be $110 million and $130 million.\nThis strategy opens a 40% increase in served market opportunity while offering better service, and tooling options to our customers.\nFor example, during the quarter, in the full-solution application space within general engineering, we introduced two best-in-class products, HPX Solid Carbide Drill which delivers 2 to 3 times more productivity than competing products, KCFM 45 face milling cutter, which offers greater flexibility and a cost-effective user friendly solution for a broad range of CNC machines.\nChris mentioned, demand trends improved off low levels throughout the quarter and outpaced the 10% sequential seasonal decline we normally experienced in Q1.\nFor the quarter, sales declined 23% year-over-year.\nOn organic basis, sales were down 21% year-over-year.\nForeign currency in a business divestiture, each had a negative effect of 1% in the quarter.\nHowever, sales did increase 6% on a sequential basis, with approximately 3% attributed to foreign currency.\nAdjusted gross profit margin of 27% was down 50 basis points year-over-year.\nYear-over-year performance was primarily due to the effect of lower volumes and associated under-absorption, partially offset by the positive effect of the raw materials, which contributed approximately 650 basis points, incremental simplification/modernization benefits and temporary cost control actions.\nAdjusted operating expenses of $93 million were down $21 million or 18% year-over-year.\nAdjusted EBITDA margin was 11.3%, up 40 basis points from the previous-year quarter.\nAdjusted operating margin of 2.9% was down 180 basis points year-over-year.\nAdjusted effective tax rate in the quarter of 33.4% was higher year-over-year due to the combined effects of geographical mix and the continued effect of GILTI on the low level of U.S. taxable income.\nAlthough we expect our adjusted effective tax rate to remain elevated in the low to mid 30% range with these lower levels of earnings, we still expect our tax rate to be in the low to mid 20% range when we return to higher levels of profitability.\nWe reported a GAAP earnings per share loss of $0.26 versus earnings per share of $0.08 in the prior year period, reflecting the reduced volumes and higher tax rate, partially offset by raw materials, simplification/modernization benefits and temporary cost control actions.\nOn an adjusted basis, earnings per share was $0.03 per share versus $0.17 in the prior year.\nEffective operations this quarter amounted to negative $0.28, this compares positively to both the negative $0.60 in the prior year period and the negative $0.68 in Q4 of fiscal year 2020.\nThe largest factors contributing to the $0.28 was the effect of significantly lower volumes and associated under-absorption, partially offset by positive raw materials of $0.30 in strong cost control actions.\nSimplification/modernization benefits increased again this quarter totaling $0.20 on top of $0.07 in the prior year.\nThis brings the total benefit since inception from simplification modernization to a $123 million.\nAs Chris mentioned, our expectations continue to be that simplification/modernization benefits will be approximately $0.80 for fiscal year 2021, driven by actions already taken or announced and bringing the total expected cumulative savings to $180 million by the end of fiscal year 2021.\nIncremental savings from our restructuring actions contributed to $17 million of the $22 million in simplification/modernization savings this quarter.\nSlide 7 and 8 detailed the performance of our segments this quarter.\nMetal cutting sales in the first quarter declined 23% organically on top of an 11% decline in the prior year period.\nAll regions posted year-over-year sales decreases, the largest decline in the Americas at negative 29% followed by EMEA at 24%, Asia Pacific posted the smallest year-over-year decline at 9%.\nPerformance in Asia Pacific reflects more positive economic activity in the region with approximately 10% growth in China year-over-year, partially offsetting weakness in other countries such as India.\nFrom an end market perspective, although improving sequentially, we still experienced year-over-year declines in transportation of 21% and general engineering of 20%.\nAdjusted operating margin came in at 1% compared to 7.9% in the prior year quarter.\nThe decrease was primarily driven by a decline in volume and mix, partially offset by incremental simplification/modernization benefits, temporary cost control actions and raw materials that contributed 230 basis points.\nOrganic sales declined 18% on top of a decline of 11% in the prior year period.\nOther factors affecting infrastructure total sales were a divestiture of 4%, partially offset by a benefit from business days of 1%.\nRegionally, again the largest decline was in the Americas at 27% then EMEA at 9%, but this time followed by a 1% growth in Asia Pacific.\nBy end market, the results were primarily driven by energy, which was down 31% year-over-year, reflecting the effect of the significant decline in the U.S. land only rig count.\nGeneral engineering was down 14%, earthworks was down 11%, reflecting a continued production decline in Appalachian coal.\nAdjusted operating margin of 6.5% was up 700 basis points year-over-year.\nThis increase was mainly driven by favorable raw materials, which contributed 1,330 basis points, simplification/modernization benefits and temporary cost control actions partially offset by lower volumes and associated under-absorption.\nOur current debt maturity profile is made up of two $300 million notes maturing in February of 2022 and June of 2028 as well as a U.S. $700 million revolver that matures in June of 2023.\nAt quarter end, we had combined cash and revolver availability of approximately $760 million and largely repaid the $500 million revolver draw from last quarter.\nPrimary working capital decreased year-over-year to $623 million, but was up sequentially as the decrease in inventory was more than offset by an increase in accounts receivable and accounts payable.\nOn a percentage of sales basis primary working capital increased to 36.4%, a reflection of the continued decline in sales.\nCapital expenditures were $39 million, a decrease of approximately $33 million from prior year as expected.\nWe continue to expect fiscal year '21 capital expenditures will be between $110 million to $130 million with the majority in the first half.\nOur first quarter free operating cash flow was negative $29 million that represents a year-over-year improvement of $15 million, largely reflecting the decline in capital expenditures.\nIn addition, we paid the dividend of $17 million in the quarter.\nSequentially, the increase in cost in the second quarter will be in the range of $5 million to $10 million.\nThe tungsten prices remaining in the $210[Phonetic] to $230[Phonetic] range, raw materials are expected to continue to be a tailwind in the second quarter, although at a reduced rate in neutral, for the second half on a year-over-year basis.\nAlthough, depreciation, amortization was flat year-over-year in the first quarter, we still expect it to be $10 million to $20 million higher for the full year, starting in the second quarter, as our new equipment comes online.\nAs a reminder, our target for working capital remains 30%.\nWe expect to be at target savings of $180 million for the program by the end of this fiscal year, despite much lower volumes.\nSo I'm fully confident we will achieve our adjusted EBITDA profitability target of 24% to 26%, when markets recover such that sales reach the target sales range of 2.5 to [Technical Issues].", "summaries": "Adjusted earnings per share was $0.03 compared to $0.17 in the prior year quarter, reflecting the factors I just named as well as a higher adjusted effective tax rate.\nWe reported a GAAP earnings per share loss of $0.26 versus earnings per share of $0.08 in the prior year period, reflecting the reduced volumes and higher tax rate, partially offset by raw materials, simplification/modernization benefits and temporary cost control actions.\nOn an adjusted basis, earnings per share was $0.03 per share versus $0.17 in the prior year.", "labels": 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{"doc": "Revenue increased 55.3% to $264.9 million in the fourth quarter of 2020, and we continue to execute strongly across all areas of the business.\nEarnings per diluted share were $2.36, a 42.2% increase over the prior year period.\nFor the fourth quarter, income from operations was $38 million, an increase of 103% versus the same period last year.\nGrowth was driven by significant year-over-year and sequential improvements in the number of active earning OPTAVIA Coaches, which grew to 44,200 in the fourth quarter, another new record.\nAdditionally, productivity per active earning coach increased 13.4% to $5,932 during the quarter compared to the prior year period.\nThe company's focus continues to be supporting our growing community of independent OPTAVIA Coaches as they develop and focus on the four competencies that drive our business success, namely, attracting new clients, supporting clients on the Optimal Weight 5&1 Plan and supporting new coaches and developing coach leaders.\nWe remain on track to support a $2 billion revenue business by the end of 2021, creating ample headroom for several years depending on the trajectory of future growth.\nWe will also launch the beta version of the OPTAVIA client app, which focuses on meal planning on the OPTAVIA Weight 5&1 plan.\nThe U.S. weight loss market that is core to OPTAVIA's business has been growing at about 6% per annum and is worth $20 billion today.\nRoughly 70% of the U.S. population is overweight or obese, and this segment is growing at 2% per annum, which highlights the importance of a proven health and wellness solution like the one we offer.\nAround 63% of Americans report that they have adopted new positive health routines since March of 2020.\nAnd of those, 96% plan to continue embracing healthy habits this year.\nRevenue in the fourth quarter of 2020 increased 55.3% to $264.9 million from $170.6 million in the fourth quarter of 2019.\nAs Dan highlighted, we achieved another record quarter of active earning coaches ending the quarter with 44,200.\nThis represents 39% growth as compared to 31,800 coaches in the same period last year and a 5% increase from the end of the third quarter of 2020.\nAverage revenue per active earning coach for the quarter was 5,932 and compared to 5,229 for the fourth quarter of 2019 and down $6,329 in the third quarter of 2020, mainly due to timing of promotional activity from one quarter to another.\nOPTAVIA branded products grew to 87.2% of our total company consumable units sold in the fourth quarter, up from 79% in the prior year period.\nGross profit for the fourth quarter of 2020 increased 55.6% to $199.2 million compared to $128.1 million in the prior year period.\nGross profit as a percentage of revenue was 75.2%, a slight increase compared to 75.1% in the fourth quarter of 2019.\nSG&A for the fourth quarter of 2020 increased $51.9 million to $161.3 million compared to $109.4 million for the fourth quarter of 2019.\nSG&A as a percentage of revenue decreased 320 basis points year-over-year to 60.9% versus 64.1% in the fourth quarter of 2019.\nIncome from operations increased $19.3 to $38 million from $18.7 million in the prior year period, primarily as a result of increased gross profit, partially offset increased SG&A expenses.\nIncome from operations as a percentage of revenue was 14.3% for the quarter, an increase of 340 basis points from the year-ago period.\nThe effective tax rate was 26% for the fourth quarter of 2020 compared to 22.4% for the September 30, 2020 year-to-date and compared to a tax benefit of 4.7% in the year-ago period.\nDuring the fourth quarter of 2020, the effective tax rate increased 3.8%, which reduced earnings per diluted share by $0.12 due to a discrete tax reserve recorded during the period.\nFor the full year of 2020, earnings per diluted share was negatively impacted by $0.12 due to this discrete tax reserve.\nThe fourth quarter of 2019 tax benefit reflected the impact of federal tax benefits from share-based compensation, partially offset by increases in the effective state tax rate of 2%.\nNet income in the fourth quarter of 2020 was $28 million or $2.36 per diluted share, based on approximately 11.9 million shares outstanding.\nThis compares to net income of $19.9 million or $1.66 per diluted share-based on approximately 11.9 million shares outstanding in the prior year.\nOur balance sheet remains very strong with cash, cash equivalents and investment securities of $174.5 million as of December 31, 2020, compared to $92.7 million at December 31, 2019.\nOur Board of Directors declared a quarterly cash dividend in the fourth quarter of $13.4 million or $1.13 per share, which was paid on February 5, 2021.\nThere was -- there are approximately 2,323,000 shares of common stock remaining under our stock repurchase program.", "summaries": "Revenue increased 55.3% to $264.9 million in the fourth quarter of 2020, and we continue to execute strongly across all areas of the business.\nEarnings per diluted share were $2.36, a 42.2% increase over the prior year period.\nRevenue in the fourth quarter of 2020 increased 55.3% to $264.9 million from $170.6 million in the fourth quarter of 2019.\nNet income in the fourth quarter of 2020 was $28 million or $2.36 per diluted share, based on approximately 11.9 million shares outstanding.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "For the third quarter of 2021, GAAP results included after-tax transformation and other charges of $54 million or $0.06 per diluted share.\nIn the 17 months that I've been CEO, I've learned that no matter what comes our way, UPSers deliver.\nConsolidated revenue rose 9.2% from last year to $23.2 billion, driven by another quarter of improved revenue quality across all three of our operating segments.\nConsolidated operating profit grew 23.4% to $3 billion, driven by solid revenue growth and strong expense control.\nWe will now cover about 90% of the U.S. population on Saturday for both residential and commercial pickups and deliveries.\nIn the U.S., SMB average daily volume, including platforms, was up 10.9% year over year.\nvolume, up 380 basis points from one year ago.\nAnd outside the U.S., SMB average daily volume growth was 3.9%.\nAnd just on COVID-19 vaccines, we are on track to deliver more than 1 billion vaccine doses by the end of this year with 99.9% on-time delivery.\nIn the U.S. we drove a measurable improvement in productivity as PPH, or pieces per hour, increased by 2.5%.\nAdditionally, as Nando described at our June Investor Day, through our ongoing efforts to optimize loads in our trailers, cube utilization in the third quarter was up 520 basis points versus last year.\nThis helped us eliminate more than 10% of daily trailer loads year over year.\nSo to reduce turnover and improve productivity, we are converting around 1,000 part-time supervisor positions in our operations into nearly 400 full-time positions at no additional cost to our company.\nTurning to what we refer to as Transformation 2.0 or plans to optimize our nonoperating expense.\nWe are on track to eliminate $500 million in nonoperating costs this year, with about $500 million of additional opportunity in 2022.\nSo far this year, we've generated a record $9.3 billion in free cash flow.\nAnd we expect full-year 2021 return on invested capital to be around 29%, which is a 730-basis-point improvement from what we reported at the end of last year.\nenabling qualified applicants to receive a job offer within 30 minutes of applying.\nThe 2022 increase will be 5.9%, reflecting the value of the services we offer and cost inflation pressures.\nIHS is forecasting fourth-quarter global GDP will grow 3.8% and U.S. GDP is expected to grow 4.9%, which remain above historic GDP growth rates.\nMoving to our third-quarter consolidated performance.\nConsolidated revenue increased 9.2% to $23.2 billion.\nConsolidated operating profit totaled $3 billion, 23.4% higher than last year.\nConsolidated operating margin expanded to 12.8%, which was 150 basis points above last year, and diluted earnings per share was $2.71, and up 18.9% from the same period last year.\nAs we expected, average daily volume in the U.S. was down 540,000 pieces or 2.7% due to a decline in SurePost of 576,000 packages per day.\nIn fact, customer mix continued to be positive as higher-yielding SMB average daily volume, including platforms, was up 10.9%.\nAnd in the third quarter, SMBs made up 27.4% of U.S. domestic volume, compared to 23.6% last year.\nRegarding our delivery mix, our commercial business continued to recover and grew 6.8%, representing 42% of our volume in the third quarter, compared to 39% in the third quarter of last year.\nFor the quarter, U.S. domestic generated revenue of $14.2 billion, up 7.4%, driven by a 12% increase in revenue per piece with fuel driving 270 basis points of the revenue per piece growth rate.\nTotal expense grew 5.8% and with fuel driving 180 basis points of the year-over-year expense growth rate.\nAnd in the third quarter, we made improvements in nearly every area of our operations, led by preload, which improved by 6.5%.\nCombined, these improvements contributed to a decrease in direct labor hours per day of 5.1%.\nThe U.S. Domestic segment delivered $1.4 billion in operating profit, an increase of $281 million or 24.8% compared to last year, and operating margin expanded 140 basis points.\nDue to tough year-over-year comparisons and some supply chain disruptions, growth in average daily volume moderated in the third quarter and was up 1.9%.\nB2B average daily volume grew 3.8% on a year-over-year basis and offset a decline in B2C volume, which was down 2.3%.\nOn a two-year stack, total average daily volume was up 14%.\nTotal export average daily volume was up 1.3% on a year-over-year basis.\nExport growth in Europe and the Americas offset a 4.8% decrease in export average daily volume out of Asia.\nRelative to our plan, we had 137 fewer flights out of Asia than we anticipated.\nFor the quarter, international revenue was up 15.5% to $4.7 billion with strong growth across all regions.\nRevenue per piece was up 14%, including a 500 basis point benefit from fuel.\nIn the third quarter, international delivered its fourth consecutive quarter of profits over $1 billion.\nOperating profit was $1.1 billion, an increase of 14%, and operating margin was 23.5%.\nRevenue increased 8.4% to $4.3 billion with all major business categories contributing to profit growth.\nIn the third quarter, supply chain solutions generated record operating profit of $448 million, and the operating margin was an impressive 10.5%.\nWalking through the rest of the income statement, we had $177 million of interest expense.\nOther pension income was $285 million.\nAnd lastly, our effective tax rate came in at 22.3%, which was lower than last year due to favorable changes in jurisdictional tax rates and discrete items.\nSo far, in 2021, we have generated a record $11.8 billion in cash from operations and $9.3 billion in free cash flow.\nAnd in the first nine months of this year, UPS has distributed $2.6 billion in dividends.\nIn August, we announced a $5 billion share repurchase plan.\nwith the intent to repurchase $500 million of shares in 2021, which we completed in the third quarter.\nOn a consolidated basis, we expect full-year 2021 revenue growth of around 13.8% year over year, which takes into account the divestiture of UPS freight.\nAdditionally, consolidated operating margin should be around 13%.\nIn U.S. domestic, we anticipate full-year 2021 revenue growth of about 12.7% with revenue growing faster than volume.\nWe anticipate the full-year 2021 U.S. operating margin will be around 10.5%.\nAnd second, we are lapping more than $550 million in peak season surcharges in addition to the early customer pricing actions we implemented last year as a part of our revenue quality initiatives.\nWe expect full-year revenue growth of around 20.7%, with an operating margin of about 23.9%.\nAnd in the supply chain solutions segment, we anticipate full-year revenue growth of around 10.3% and operating margin of about 10%.\nAdditionally, for the full year in 2021, we expect free cash flow to be around $10.5 billion, and return on invested capital will be around 29%.\nCapital expenditures are now expected to be approximately $4.2 billion.\nAnd lastly, our effective tax rate for the full year is expected to be about 22.5%.", "summaries": "For the third quarter of 2021, GAAP results included after-tax transformation and other charges of $54 million or $0.06 per diluted share.\nConsolidated revenue rose 9.2% from last year to $23.2 billion, driven by another quarter of improved revenue quality across all three of our operating segments.\nAnd we expect full-year 2021 return on invested capital to be around 29%, which is a 730-basis-point improvement from what we reported at the end of last year.\nMoving to our third-quarter consolidated performance.\nConsolidated revenue increased 9.2% to $23.2 billion.\nConsolidated operating margin expanded to 12.8%, which was 150 basis points above last year, and diluted earnings per share was $2.71, and up 18.9% from the same period last year.\nOn a consolidated basis, we expect full-year 2021 revenue growth of around 13.8% year over year, which takes into account the divestiture of UPS freight.\nAdditionally, for the full year in 2021, we expect free cash flow to be around $10.5 billion, and return on invested capital will be around 29%.\nCapital expenditures are now expected to be approximately $4.2 billion.", "labels": "1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "Our NSR for the fourth quarter increased by 6.5%, which marked a third consecutive quarter of accelerating organic growth and included the strong contributions from both the Americas and International businesses.\nWe delivered a 14.8% segment adjusted operating margin in the fourth quarter and 13.8% for the full year.\nTo put this performance in context, our margin in the fourth quarter is more than 600 basis points higher than in fiscal 2018.\nToday, we are ahead of schedule on our plans, and we have even greater conviction in our 17% longer-term goal, which we now view as achievable rather than aspirational.\nFull-year adjusted EBITDA was $830 million and adjusted earnings per share was $2.82, which marked an 11% and 31% increase respectively.\nFree cash flow was $583 million and was driven by our strong earnings and continued high cash flow conversion.\nWe have repurchased more than $1 billion of stock since last September, or 13% of the Company.\nAnd we have $940 million remaining under our current authorization.\nWe delivered $3.7 billion of wins in the fourth quarter, including a 1.2 book-to-burn ratio in the design business.\nOur contracted backlog, which is a key indicator of revenue growth increased by 18% and included 4% growth in design business.\nAnd based on our clients' strengthening funding backdrop, including benefits from the $1.2 trillion infrastructure bill in the US, we expect our backlog to continue to grow.\nThis includes winning significantly expanded program management and design roles in transformational projects in Saudi Arabia, such as for AlUla City and a large transportation project in Qatar, where more than 100 employees have joined AECOM from the incumbent to support this work.\nIn the US, the $1.2 trillion Infrastructure and Jobs Act marks a generational investment in America's infrastructure.\nWe've initiated adjusted EBITDA and adjusted earnings per share guidance of between $880 million and $920 million and between $3.20 and $3.40.\nThis reflects 8% and 17% growth at the respective midpoints.\nUnderpinning this growth is an expectation for another year of accelerating organic NSR growth and at least 30 basis point increase in our margins to another record high of 14.1%.\nBased on our strong performance to date and the returns we expect on our investments, we are raising our long-term adjusted earnings per share guidance to at least $4.75 in fiscal 2024.\nThis represents a more than doubling of our fiscal 2020 earnings and a nearly 20% CAGR from 2021 to 2024.\nWe delivered: Accelerating NSR growth; the highest margins in our Company's history; another year of double-digit adjusted EBITDA growth; more than 30% adjusted earnings per share growth and; a seventh consecutive year of free cash flow at or above our guidance range.\nIn the Americas, NSR increased by 7% in the fourth quarter, including growth in both design and construction management businesses.\nContracted backlog increased by 21% to set a new record.\nI should note that our awarded backlog was reduced by $1.3 billion as a result of this client only advancing the first phase of this project at this time.\nThe fourth quarter adjusted operating margin was 19.8%, a 290 basis point increase from the prior year to a new all-time high and reflects strong execution.\nNSR increased by 6% in the fourth quarter, including growth across all of our largest regions, and backlog increased by 10%.\nOur adjusted operating margin in the third quarter was 7.4%, an 80 basis point improvement from the prior year.\nFourth quarter free cash flow of $299 million contributed to full year free cash flow of $583 million.\nWe have now repurchased nearly 20.5 million shares since September 2020, or approximately 13% of our starting share count at an average price of approximately $51.\nTo that point, we expect free cash flow of between $450 million and $650 million in fiscal 2022.\nImportantly, our investments in growth and innovation will continue to separate us from our peers, and we are progressing toward our 17% longer-term margin target.\nFor fiscal 2022, we are guiding to adjusted EBITDA of between $880 million and $920 million or 8% growth at the midpoint and adjusted earnings per share of $3.20 and $3.40 or a 17% growth at the midpoint.\nWe expect our MSR growth to accelerate to approximately 6% in fiscal 2022.\nIn addition, we project a further 30 basis points of margin expansion to 14.1% as we continue to expand our lead on the industry while investing in people, clients and innovation.\nAlso incorporated into our guidance is a 26% effective tax rate.\nThis includes our expectation to now achieve adjusted earnings per share of at least $4.75 in fiscal 2024, which is 10% above our prior projection and is nearly 20% compounded annual growth rate from 2021 to 2024.", "summaries": "We've initiated adjusted EBITDA and adjusted earnings per share guidance of between $880 million and $920 million and between $3.20 and $3.40.\nNSR increased by 6% in the fourth quarter, including growth across all of our largest regions, and backlog increased by 10%.\nFor fiscal 2022, we are guiding to adjusted EBITDA of between $880 million and $920 million or 8% growth at the midpoint and adjusted earnings per share of $3.20 and $3.40 or a 17% growth at the midpoint.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "Our annualized return on average assets, average common equity and average tangible common equity for the three months ending December 31, 2020 were: we made 1.63% on average assets; we made 8.98% return on average common equity, and we made a 19.5% return on average tangible common equity.\nRespectively, Prosperity's efficiency ratio, net gains -- excluding the net gains and losses on the sale or writedown of assets and taxes was 40.7% for the three months ended December 30, 2020.\nOur net income was $137 million for the three months ended December 31, 2020, compared with $86 million for the same period in 2019.\nHowever, the net income for the fourth quarter of 2019 included a $46.4 million of merger-related expenses.\nOur earnings per diluted common share were $1.48 for the three months ended December 31, 2020, compared with $1.01 for the same period in 2019 and were impacted by the merger-related expenses of $46.4 million or $0.43 per diluted common share in the fourth quarter of 2019.\nOur loans at December 31, 2020 were $20.2 billion, an increase of $1.4 billion or 7.4% compared with $18.8 billion at December 31, 2019.\nOur linked quarter loans decreased $548 million or 2.6% from $20.7 billion at September 30, 2020, primarily due to a $430 million decrease in PPP loans.\nAt December 31, 2020, the company had $963 million of PPP loans outstanding.\nOur deposits at December 31, 2020 were $27.3 billion, an increase of $3.1 billion or 13% compared with $24.2 billion at December 31, 2019.\nLinked-quarter deposits increased $901 million or 3.4% from $26.4 billion at September 30, 2020.\nOur asset quality, the non-performing assets decreased $2 million or 14.3% from the quarter ended September 30, 2020.\nOur non-performing assets totaled $59 million or 20 basis points of quarterly average interest earning assets at December 31, 2020 compared with $62 million or 25 basis points of quarterly average interest earning assets at December 31, 2019, and as mentioned, $69 million or 24 basis points of quarterly average interest earning assets as of September 30, 2020.\nAlso, Samsung recently mentioned a $10 billion plant expansion in the Austin area.\nThe Federal Reserve Bank of Dallas has projected achieving a nationwide 5% GDP growth by year-end 2021 and an unemployment rate of 4.5% noting the first half of the year will be slower with an expected increase in the second half of the year.\nNet interest income before provision for credit losses for the three months ended December 31, 2020 was $257.6 million compared to $232 million for the same period in 2019, an increase of $25.6 million or 11%.\nThe increase was primarily due to three months of combined bank earnings for the fourth quarter 2020, resulting from the Legacy merger on November 1, 2019 and reduced cost of funds partially offset by the decrease in loan discount accretion of $7.7 million.\nThe net interest margin on a tax equivalent basis was 3.49% for the three months ended December 31, 2020 compared to 3.66% for the same period in 2019 and 3.57% for the quarter ended, September 30, 2020.\nExcluding purchase accounting adjustments, the core net interest margin for the quarter ended December 31, 2020 was 3.26% compared to 3.26% for the same period in 2019 and 3.25% for the quarter ended September 30, 2020.\nNoninterest income was $36.5 million for the three months ended December 31, 2020 compared to $35.5 million for the same period in 2019 and $34.9 million for the quarter ended September 30, 2020.\nNon-interest expense for the three months ended December 31, 2020 was $120.2 million compared to $156.5 million for the same period in 2019, which included $46.4 million in the merger-related expenses.\nOn a linked quarter basis, non-interest expense increased $2.3 million primarily due to salaries and benefits.\nFor the first quarter 2021, we expect non-interest expense of $118 million to $120 million, which includes elevated employment-related taxes for vested restricted stock.\nThe efficiency ratio was 40.8% for the three months ended December 31, 2020 compared to 58.1% for the same period in 2019, which included $46.4 million in merger-related expenses and 48.2% for the three months ended September 30, 2020.\nWe estimate fair value loan income for the first quarter 2021 to be around $7 million to $10 million based on the current fair value discount for each loan amortized over its remaining loan life.\nIn the fourth quarter of 2020, we recognized $10 million from the fair value loan amortization and additional $6 million from early payoffs for a total of $16.1 million in fair value loan income.\nThe bond portfolio metrics at 12/31/2020 showed a weighted average life of 2.8 years and projected annual cash flows of approximately $2.4 billion.\nOur non-performing assets at quarter end December 31, 2020 totaled $59,570,000, a 29 basis points of loans and other real estate compared to $69,542,000 or 33 basis points at September 30, 2020.\nThis represents approximately a 14% decline.\nThe December 31, 2020 non-performing asset total was made up of $48,884,000 in loans, $93,000 in repossessed assets and $10,593,000 in other real estate.\nOf the $59,570,000 in non-performing assets, $10,682,000 or 18% are energy credits, $10,147,000 of which are service company credits and $535,000 are production credits.\nSince December 31, 2020, $2,715,000 in non-performing assets have been put under contract for sale.\nThis represents approximately 5% of the non-performing assets.\nNet charge-offs for the three months ended December 31, 2020 were $7,567,000 compared to $10,570,000 for the quarter ended September 30, 2020.\nThe average monthly new loan production for the quarter ended December 31, 2020 was $439 million.\nLoans outstanding at December 31, 2020 were $20.2 billion, which includes $963.2 million in PPP loans.\nThe December 31, 2020 loan total is made up of 38% fixed rate loans, 38% floating rate loans, and 24% resetting at specific intervals.", "summaries": "Our earnings per diluted common share were $1.48 for the three months ended December 31, 2020, compared with $1.01 for the same period in 2019 and were impacted by the merger-related expenses of $46.4 million or $0.43 per diluted common share in the fourth quarter of 2019.\nNet interest income before provision for credit losses for the three months ended December 31, 2020 was $257.6 million compared to $232 million for the same period in 2019, an increase of $25.6 million or 11%.", "labels": "0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "These top line improvements, along with our steadfast focus on cost controls, resulted in 7% growth in consolidated total revenues; 20% growth in adjusted earnings before interest, taxes, depreciation and amortization or adjusted EBITDA; and a 40% increase in diluted earnings per share.\nSpecifically, full year consolidated products and services revenues increased to $4.4 billion.\nConsolidated gross profit increased 6% to $1.3 billion.\nAdjusted EBITDA increased 11% to nearly $1.4 billion, and diluted earnings per share was $11.54, an 18% improvement.\nWe achieved a 25% reduction in total reportable incidents across the enterprise in 2020, and for the fourth consecutive year, we achieved a companywide world-class lost time incident rate.\nThese superior financial and safety results are directly attributable to the dedication and agility of our nearly 9,000 talented employees.\nAggregate shipments declined 2% to nearly 187 million tons, reflecting anticipated lower infrastructure shipments in portions of North Carolina, reduced energy sector demand and headwinds from COVID-19 disruptions.\nAggregates average selling price increased 4% on a mix adjusted basis, in line with our expectations.\nOur cement operations established new records for shipments, which increased 2% to nearly four million tons.\nPricing increased 3% on a mix adjusted basis, demonstrating the resilient price fundamentals of core products in the state of Texas.\nReady mixed concrete shipments increased 3%, excluding shipments from acquired operations and from our Southwest division's former concrete business in Arkansas, Louisiana and Eastern Texas, which we divested in January 2020.\nConcrete pricing increased 2%.\nOur Colorado asphalt and paving business established a new record for asphalt shipments, increasing 15% to three million tons.\nAsphalt pricing increased nearly 3%.\nDriving this achievement was our Building Materials business, which delivered record products and services revenues of $4.2 billion, a 1% increase, and record product gross profit of $1.2 billion, a 7% increase.\nAggregates product gross margin expanded 130 basis points to 30.6%, a new record, and unit profitability improved 8%.\nWe achieved 90% kiln reliability this year, up from 82% in 2019, which facilitated increased throughput and fixed cost absorption at both our Midlothian and Hunter plants.\nThese factors, combined with mix adjusted pricing strength and lower fuel costs contributed to the 510 basis point improvement in cement product gross margin to 37.8%.\nReady mixed concrete product gross margin increased 10 basis points to 8.4% as pricing growth offset higher raw material costs.\nAsphalt and paving achieved gross profit of $60 million and a 100 basis point improvement in gross margin, driven by double-digit revenue growth.\nThe 12% top line improvement in the quarter, however, was not enough to offset demand declines experienced earlier in the year.\nAs a result, full year product revenues decreased 12% to $221 million.\nImpressively, product gross margin improved 80 basis points to 40.6% as we proactively responded to lower shipments with effective cost control measures.\nOperating cash flow of $1.05 billion increased 9%, driven by earnings growth.\nFor 2020, we invested $360 million of capital into our business and returned $190 million to shareholders through both an increased dividend and the first quarter repurchase of 211,000 shares of our common stock.\nIn August 2020, our Board approved a 4% increase in our quarterly cash dividend, underscoring its continued confidence in our future performance and continuing Martin Marietta's track record of dividend growth.\nSince our repurchase authorization announcement in February 2015, we have returned more than $1.8 billion to shareholders through a combination of meaningful and sustainable dividends as well as share repurchases.\nWe ended 2020 with a debt-to-EBITDA ratio of 1.9 times, slightly below our target leverage range of two to 2.5 times, which offers us the flexibility to pursue accretive investment opportunities.\nOur solid balance sheet, combined with $1.1 billion of availability on our credit facilities, provides the financial strength for Martin Marietta to respond to, then execute on disciplined capital allocation priorities and continue profitably growing our business.\nKeep in mind, our top five states: Texas, Colorado, North Carolina, Georgia and Florida, are disproportionately important to us, representing 71% of our 2020 Building Materials business total revenues.\nAdditionally, DOTs were recently granted nearly $10 billion of targeted relief as part of the Coronavirus Response and Relief Act passed in December 2020 to help offset pandemic-driven transportation revenue shortfalls.\nBased on preliminary estimates, over $2 billion of this assistance will be apportioned to Martin Marietta's top five states.\nIn November 2020, voters sent a powerful message of support for state and local transportation investment, approving 94% of ballot measures, the highest ever approval rating.\nThese initiatives are estimated to generate an additional $14 billion in onetime and recurring transportation funding, of which 82% is in Texas, our top revenue-generating state.\nBipartisan support exists for new surface transportation legislation aimed at increasing funding levels not seen in over 15 years, with both the United States House of Representatives and Senate previously advancing proposed bills.\nWe expect increased infrastructure investment to provide volume stability and drive aggregate shipments in that end-use closer to our 10-year historical average of 43% of our total shipments.\nFor reference, aggregate shipments to the infrastructure market accounted for 36% of 2020 shipments.\nAggregate shipments to the nonresidential market accounted for 34% of 2020 shipments.\nAggregates to the residential market accounted for 24% of 2020 shipments.\nWe currently expect 2021 aggregates shipment growth to range from up 1% to up 4%, reflecting single-family housing strength, expanded infrastructure investment and heavy industrial projects of scale that will support our near-term shipment levels.\nFor 2021, we expect annual aggregates price increases, which become effective from January one to April 1, to increase in a range of up 3% to up 5%.\nCombined with contributions from our Cement, Downstream and Magnesia Specialties businesses, on a consolidated basis, we expect adjusted EBITDA of $1.350 billion to $1.450 billion.\nTo conclude, we're proud of our 2020 record financial results and industry-leading safety performance.", "summaries": "Consolidated gross profit increased 6% to $1.3 billion.\nTo conclude, we're proud of our 2020 record financial results and industry-leading safety performance.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "All of our 34 plants around the world are operating and we are satisfying all of our customer needs.\nOverall, our sales were down 27% from the second quarter last year on a pro forma basis and down 24% from the first quarter.\nI think it is helpful to understand where the 24% decline in sales from the first quarter came from and I'll first do this on a geographic basis.\nThe Americas declined 35%, EMEA declined 23% and Asia-Pacific declined 4%.\nAsia-Pacific declined 4%, with most of declines in India and Southeast Asia.\nApril was the lowest month of the quarter and May was only a little better as we saw a 1% sequential monthly increase in net sales.\nIn June, we did see a much more significant improvement as net sales increased 20% from May's levels.\nMetalworking declined the most and decreased 30% sequentially from the first quarter, due primarily to automotive OEM and related suppliers having prolonged shutdowns or significantly reduced production in the quarter.\nOur other customer industry groups of metals and global specialty businesses were less impacted and showed declines of 21% and 16%, respectively.\nI hope these different cuts of our 24% sequential sales decline help provide insight into what was happening in the quarter.\nAs our analysis continues to show, we had total organic sales growth due to net share gains of 2% in the second quarter of '20 versus the second quarter of '19.\nWhat may not be apparent is that our product margins actually increased approximately 2% from last year with our raw material synergies being the vast majority of the increase.\nThis pandemic and its impacts has been similar in many ways to what we went through in late 2008.\nWe stopped new hires, executive pay cuts were implemented, some positions were furloughed, and our planned capital expenditures have been cut by over 30%.\nFor 2020, our current estimate is $53 million of cost synergies achieved versus our earlier estimate of $35 million.\nIn this quarter, we achieved $12 million of synergies and we expect sequential improvement during our future quarters.\nAlso, while our EBITDA was nearly cut in half from the first quarter, we still generated good cash flow and have less net debt now by $13 million.\nLast quarter, we said that we expect our full-year adjusted EBITDA to be more than $200 million.\nSo please see slides 6 through 8 now while I review some highlights.\nSo, while our actual sales are up significantly to $286 million in Q2 compared to $206 million in the prior year, this is due to the inclusion of Houghton and Norman Hay.\nOn a pro forma basis, including Houghton in Q2 of last year, net sales declined about 27%.\nBut we also saw a negative foreign exchange impact on the top line of about 4%, due primarily to the significant weakening of the Brazilian real, the Mexican peso and the RMB versus the dollar.\nOur gross margin of 34% for Q2 was down from 36.5% in the prior year quarter, which we attribute primarily to the steep decline in volumes and the related impact on fixed manufacturing costs.\nAs Mike mentioned, we realized meaningful procurement synergies in the quarter and our product margins were up approximately 2%, which was masked by the impact of fixed manufacturing costs on our significantly lower volumes.\nThe drag from COVID is also evident in our non-GAAP operating income of $11.2 million compared to $25.5 million in Q2 of '19 and $36 million in Q1 of 2020.\nSimilarly, our non-GAAP earnings per share of $0.21 was down from $1.56 in Q2 of last year and $1.35 sequentially.\nOur effective tax rate in the current quarter was 57.9% compared to 24.2% in Q2 of last year.\nExcluding all unusual items, we expect our effective tax rate for the full year 2020 will be in the range of 22% to 25%.\nAs Mike mentioned earlier, our Q2 adjusted EBITDA $32.1 million is in line with our guidance at roughly half of our Q1 adjusted EBITDA of $60.5 million.\nAnd we continue to expect our full-year adjusted EBITDA will be more than $200 million.\nWith the decline in adjusted EBITDA, our net leverage has picked up about 0.2 times to 3.7 times on a reported basis and 3.1 times on a bank calculated basis, which is still comfortably below our bank covenant of 4.25 times.\nIn addition, we're benefiting from the current low interest rate environment as the average interest rate on our debt is now about 1.9% as compared to 2.4% at March 31.\nWe're pleased to report that our operating cash flow doubled year-to-date to $44.7 million versus first half of last year of $22.4 million.\nIn addition, our Q2 operating cash flow of $24.5 million exceeded the prior quarter of $20.2 million.\nWe saw this in the 2008-2009 crisis, and we are seeing it now.\nIn addition, our low capital intensity allows us flexibility in our capex spending and we're on pace to reduce capex by about 30% from our initial combined company estimates as we mentioned last quarter.\nBut we're encouraged by some positive trends in business performance and the increase in cash flow I just mentioned, as well as the $12 million of cost synergies realized this quarter.\nIn addition, the increase in total synergies we expect to realize this year, which is up from $35 million to $53 million and the disciplined cost reduction actions we've taken will help mitigate the impact this difficult economic and business environment.", "summaries": "Last quarter, we said that we expect our full-year adjusted EBITDA to be more than $200 million.\nSo, while our actual sales are up significantly to $286 million in Q2 compared to $206 million in the prior year, this is due to the inclusion of Houghton and Norman Hay.\nSimilarly, our non-GAAP earnings per share of $0.21 was down from $1.56 in Q2 of last year and $1.35 sequentially.\nAnd we continue to expect our full-year adjusted EBITDA will be more than $200 million.", "labels": 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{"doc": "Subscription revenues were up 31% organically.\nCRPO was up 32%, subscription billings were up 28%, operating margin was 26%.\nWe again have raised our guidance for the full year, strengthening our clear path to $15 billion-plus in revenue by 2026.\nIDC has consistently sized this opportunity at $7.8 trillion over a four-year period.\nIn its low-code development technologies report, Gartner estimates that 70% of new applications developed by 2025 will use low-code or no-code technologies.\nThe number of deals greater than $1 million was 63, up 50% year over year, signaling substantial adoption of our platform strategy.\nITSM was in 18 of our top 20 deals while IT Operations Management had 10 deals over $1 million.\nIn Q3, they chose ServiceNow to consolidate 12 complex systems into a single platform to support the agency's mission-critical operations.\nEmployee Workflows also had a fantastic quarter with HR in 13 of our top 20 deals.\nMomentum continues for Customer Workflows with CSM in 12 of our top 20 deals and eight deals over $1 million.\nCreator Workflows, which helps businesses build their own applications, was exceptional in Q3 in 18 of our top 20 deals.\nServiceNow's Employee Center can now be directly embedded in Microsoft Teams, reaching 250 million monthly users.\nQ3 subscription revenues were $1.43 billion, $22 million above the high end of our guidance range and growing 31% year over year, inclusive of 100 basis points tailwind from FX.\nRPO ended the quarter at approximately $9.7 billion, representing 34% year-over-year growth.\nCurrent RPO was approximately $5 billion, representing 32% year-over-year growth and a 2-point beat versus our guidance.\nQ3 subscription billings were $1.38 billion, representing 28% year-over-year growth and a $55 million beat versus the high end of our guidance.\nFX and duration were 150 basis points tailwind year over year.\nOur renewal rate was a healthy 98% in Q3, a testament to the value ServiceNow delivers to our customers.\nThat land-and-expand motion has manifested into a base of 1,266 customers paying us over $1 million in ACV, up 25% year over year.\nWe closed 63 deals greater than $1 million net new ACV in the quarter, up over 50% year over year.\nAnd in Q3, all of our top 20 deals included four or more products.\nOperating margin was 26%, 3 points above our guidance, primarily driven by the strong revenue beat.\nOur free cash flow margin was 15%.\nBy delivering more intelligent automation that provides even better experiences, we are well-positioned as the workflow standard on our journey to becoming a $15 billion-plus revenue company.\nWe're raising our subscription revenue outlook by $32 million at the midpoint to a range of $5.565 billion to $5.57 billion, representing 30% year-over-year growth, including 200 basis points of FX tailwinds.\nWe are raising our subscription billings outlook by $61 million at the midpoint to a range of $6.379 billion to $6.384 billion, representing 28% year-over-year growth.\nExcluding the early customer payments in 2020, our normalized subscription billings growth outlook would be 32% year over year at the midpoint.\nGrowth includes a net tailwind from FX and duration of 200 basis points.\nWe continue to expect 2021 subscription gross margin of 85%, and we're raising our full-year 2021 operating margin from 24.5% to 25%.\nWe're also raising our full-year 2021 free cash flow margin by 50 basis points from 31% to 31.5%.\nAnd we expect diluted weighted average outstanding shares of 202 million.\nFor Q4, we expect subscription revenues between $1.515 billion and $1.52 billion, representing 28% year-over-year growth, including a negligible impact from FX.\nWe expect CRPO growth of 27% year over year.\nOn a constant currency basis, we expect CRPO growth to be 28.5%.\nWe expect subscription billings between $2.305 billion and $2.31 billion, representing 26% year-over-year growth.\nExcluding the early customer payments in Q4 of 2020, our normalized subscription billings growth outlook would be 32% year over year at the midpoint.\nGrowth includes a net headwind from FX and duration of 50 basis points.\nWe expect an operating margin of 22%, which includes accelerated demand generation spend in the quarter to set us up for a strong start in 2022, and we expect 203 million diluted weighted outstanding shares for the quarter.\nI'm happy to announce that in September, we committed to reaching our net-zero emissions goal by 2030, two decades earlier than our previous goal.", "summaries": "Q3 subscription revenues were $1.43 billion, $22 million above the high end of our guidance range and growing 31% year over year, inclusive of 100 basis points tailwind from FX.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Ongoing earnings per share were $1.40, reflecting nearly 45% growth compared to last year and sales increased more than 22% on an organic basis.\nExcluding COVID testing-related sales, which totaled $1.9 billion in the quarter, organic sales increased 12% versus last year.\nThis has been a consistent theme throughout the pandemic, as evidenced by an increase in total company sales, excluding COVID tests, of 11% on an organic basis through the first nine months of this year compared to our 2019 pre-pandemic baseline, which highlights that our growth is real and not simply a function of easy comps versus last year.\nAs a result of our strong performance and outlook, today, we increased our full year adjusted earnings per share guidance range now at $5 to $5.10, which reflects nearly 40% growth compared to last year.\nAnd I'll start with Nutrition, where sales increased 9% compared to last year.\nIn Pediatric Nutrition, sales grew over 8.5% in the quarter, led by strong growth in the US from continued share gains in our infant formula and toddler portfolio.\nIn Adult Nutrition, sales grew over 9% in the quarter, including mid-teens growth internationally, as we continue to see strong demand for our Ensure and Glucerna brands, including new users entering these categories and existing customers increasing their usage.\nSales increased more than 45% overall and 12.5%, excluding COVID testing-related sales.\nIn total, during the quarter, we sold more than 225 million COVID tests globally and have now shipped over 1 billion tests since the start of the pandemic.\nAbbott has established a global leadership position in rapid testing, including a supply capacity of more than 100 million tests per month.\nMoving to Established Pharmaceuticals, where sales grew more than 15%, driven by strong execution and a steady cadence of new product introductions.\nStrong sales performance in the quarter was broad-based across several countries, including double-digit growth in China, Russia and India, which led to overall sales growth of 18% in our key emerging markets.\nAnd lastly, I'll cover Medical Devices, where sales grew 13% in the quarter compared to last year and more than 16% compared to pre-pandemic sales in the third quarter of 2019.\nAfter adjusting for this impact, CardioMEMS demonstrated a 28% reduction in heart failure hospitalizations.\nAnd I'll wrap up with Diabetes Care, where strong growth was led by FreeStyle Libre sales of nearly $1 billion.\nDuring the quarter, we added over 200,000 new users, bringing the total global user base for Libre to well over 3.5 million users.\nAnd based on the strength of our performance and outlook, we're raising our earnings per share guidance for the year, which now reflects growth of nearly 40% compared to last year.\nSales for the third quarter increased 22.4% on an organic basis, which was led by strong performance across all of our businesses, you along with global COVID testing-related sales of $1.9 billion in the quarter.\nExcluding COVID testing-related sales, organic sales growth was 12.1% versus last year and 11.7% compared to the third quarter of 2019.\nForeign exchange had a favorable year-over-year impact of 1% on third quarter sales, resulting in total reported sales growth of 23.4% in the quarter.\nRegarding other aspects of the P&L for the quarter, the adjusted gross margin ratio was 58.8% of sales, adjusted R&D investment was 6% of sales and adjusted SG&A expense was 25% of sales.\nOur third quarter adjusted tax rate was 15.5%, which reflects an adjustment to align our year-to-date tax rate with our revised full year effective tax rate forecast of 15%.\nWe forecast $1 billion to $1.4 billion of COVID testing-related sales and forecast organic sales growth, excluding COVID testing-related sales, in the low double-digits versus last year.\nAnd based on current rates, we would expect exchange to have an unfavorable impact of around one-half of 1% on our fourth quarter reported sales.", "summaries": "In total, during the quarter, we sold more than 225 million COVID tests globally and have now shipped over 1 billion tests since the start of the pandemic.\nAbbott has established a global leadership position in rapid testing, including a supply capacity of more than 100 million tests per month.\nWe forecast $1 billion to $1.4 billion of COVID testing-related sales and forecast organic sales growth, excluding COVID testing-related sales, in the low double-digits versus last year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "During the third quarter, we delivered revenue growth of 10%.\nWe grew adjusted operating income by 12.5%.\nWe generated adjusted earnings per share of $1.97 and strong cash flow from operations of $5.5 billion.\nGiven these results and our outlook, we are raising our adjusted earnings per share guidance to $7.90 to $8.\nWe added over 1.3 million new integrated pharmacy and medical members through the 2021 and 2022 selling season.\nThis market-leading solution offers a national network of physicians virtually and access to convenient face-to-face care in our MinuteClinic locations when needed, often with 0 co-pay.\nOur program has grown to 30 customer accounts with over 750,000 eligible members as of January 1, 2022.\nHealthcare benefits revenue increased 9.5% year over year.\nStrength in government services helped drive an adjusted operating income increase of 2.4% versus prior year despite higher costs related to COVID-19, net of deferred care primarily within our commercial book.\nOur medical benefit ratio of 85.8% was above our expectations, driven by COVID-related costs, primarily driven by commercial.\nYear to date, Medicare Advantage membership has grown 9.2%.\nOur strong performance in Stars continues, as you saw for 2022, with 87% of our members in Star plans rated four and higher, up from 83% in 2021.\nIn our commercial business, we expect moderate growth in 2022 for national accounts, driven by both increased sales, which are up approximately 50% year over year, and a 95% client retention rate.\nEnrollment began on Monday, and we anticipate our co-branded CVS Aetna offering and benefit design focused on consumer choice will result in gains of at least 100,000 new members in 2022.\nWe delivered third quarter revenue growth of 9.3% and adjusted operating income growth of 9.5% year over year.\nFor the 2022 selling season, we achieved a 98% retention rate.\nWe drove $10.4 billion of growth new business, resulting in $8.9 billion of net new business wins, providing evidence of our market-leading trend management, transparency customer service, and integrated offerings.\nWe maintained a strong momentum this quarter with specialty revenue up 8.7% versus prior year.\nWe delivered 10% revenue growth and 22% adjusted operating income growth year over year.\nPharmacy sales and prescriptions filled both increased 8% year over year, largely driven by COVID-19 vaccine administration and core pharmacy services.\nOur patient satisfaction scores remain high with approximately 90% satisfied with their experience in our CVS Health locations.\nWe administered 11.6 million COVID-19 vaccines and 8.5 million COVID-19 tests in the quarter.\nSince our program began, we have administered 43 million vaccines and approximately 38 million tests.\nThis new capability has driven over 1 million visits per month to vaccination records on cvs.com.\nFront store sales momentum also continued with revenue growth of 13% versus prior year.\nIn fact, this year, 12.5% of new COVID-19 testing customers chose to fill new prescriptions or receive a COVID-19 vaccination with CVS Health.\nNext, we are further strengthening the consumer experience through the expansion of digital services and platforms that connect to health services and in-person channels for our more than 35 million unique digital customers.\nFor example, more than 70% of CVS Pharmacy customers are enrolled in our text messaging programs today.\nWithin that group this quarter, adherence outreach drove 10% growth in prescriptions filled.\nLast quarter, we announced the phased increase in the minimum wage to $15 an hour by July 2022.\nNearly 20,000 pharmacists, pharmacy technicians, and nurses recently joined the CVS Health team supporting flu season, as well as COVID-19 vaccinations and testing.\nIn addition to targeted vaccine and booster education efforts, we provided 31 million meals this year to people suffering from food insecurity and invested in 2,800 affordable housing units in 30 cities.\nBy helping address the social determinants of health, permanent housing can reduce healthcare costs by 59%.\nWe are guiding to a strong year end, all possible due to the leadership and commitment of our over 300,000 CVS Health colleagues that bring their heart to every moment of our customers' health.\nTotal revenues of $73.8 billion increased 10% year over year with robust growth in all three segments.\nWe reported adjusted operating income of $4.1 billion, a 12.5% increase versus the prior year.\nwith year-to-date cash flow from operations now exceeding $14 billion.\nAdjusted earnings per share of $1.97 represent a nearly 19% year-over-year increase, generated by our adjusted operating income growth and lower interest expense resulting from our ongoing deleveraging efforts.\nHealthcare benefits revenue increased by 9.5% year over year, driven by sustained growth in our Government Services business, slightly offset by the repeal of the health insurance fee.\nIn the third quarter, we saw Medicaid membership grow sequentially by 67,000 members across multiple geographies.\nMedicare Advantage membership also continued to grow in the quarter, increasing by 42,000 members sequentially and representing year-over-year growth of 9.8%.\nOur Medicare Advantage franchise continues to be a powerful growth engine with Medicare Advantage membership more than doubling since the third quarter of 2015, representing a 15% compound annual growth rate.\nSecond, COVID testing costs, which we had expected to moderate during the third quarter, also approached January 2021 levels and were more than 1.5 times the average we experienced in the second quarter.\nIt is critical to recognize the outsized impact of COVID testing on overall claim costs as testing costs represented approximately 35% of gross COVID costs in the quarter.\nThe resultant medical benefit ratio for the quarter of 85.8% was above our forecast and driven almost entirely by the higher-than-expected commercial COVID testing and treatment costs.\nDays claims payable of 51 at the end of the third quarter is three days higher sequentially and two days above prior year.\n2021 is expected to be the second year of adjusted operating income growth in excess of 10%.\nThis sustained growth has been driven by our track record of delivering industry-leading drug trend on behalf of our clients, our proven industry-leading capabilities, particularly in the specialty pharmacy arena our outstanding customer service, as reflected by our over 98% renewal rate for 2022.\nDuring the third quarter, pharmacy revenues increased by 9.3% year over year, driven by increased pharmacy claims volume, growth in specialty pharmacy, and brand inflation.\nTotal pharmacy membership increased by 1.6 million lives sequentially, primarily reflecting growth in government programs.\nTotal pharmacy claims processed grew nearly 7% above the prior year.\nPharmacy adjusted operating income exceeded expectations in the quarter, up more than $150 million or 9.5% year over year.\nTotal revenue of just under $25 billion increased by $2.3 billion or 10% year over year.\nApproximately half or $1.2 billion is attributable to the contributions from the more than 11 million COVID vaccines and over 8 million COVID tests we administered combined with strong front store sales driven by demand for over-the-counter COVID test kits and related treatment categories.\nWith this quarter's results, we are now on pace to deliver about 44 million to 49 million COVID vaccines and 28 million to 33 million COVID tests for full year 2021.\nThe remaining half or 1.1 billion was driven by a combination of sustained pharmacy growth and broad strength in front store trends across a range of categories, partially offset by continued pharmacy reimbursement pressure.\nThis strong revenue growth, combined with a 70-basis-point improvement in adjusted operating margin, produced adjusted operating income that exceeded our forecast and drove a year-over-year increase of $300 million.\nOur liquidity and capital position remained excellent at the end of the third quarter with cash from operations of $5.5 billion for the quarter and $14.3 billion year to date.\nThrough our proactive liability management transaction in August, we paid down $1.1 billion in net long-term debt in the quarter.\nAs of the end of the third quarter 2021, we have repaid a net total of $18.7 billion in long-term debt since the close of the Aetna transaction.\nIn addition, we returned over $650 million to shareholders through our quarterly dividend.\nWe are raising our total revenue outlook to $286.5 billion to $290.3 billion and adjusted operating income outlook to $16.4 billion to $16.6 billion.\nWe are also increasing expected full year cash flow from operations to a range of $13 billion to $13.5 billion.\nFor the healthcare benefits segment, we are lowering our full year adjusted operating income guidance from $5.25 billion to $5.35 billion to $4.9 billion to $5 billion.\nWe expect the full year medical benefit ratio to be in a range of 84.4% to 85.6% or an increase of 30 basis points from our prior range.\nFor pharmacy services, given the continued strength in the quarter and our visibility to the remainder of the year, we are increasing full year 2021 adjusted operating income guidance to $6.85 billion to $6.94 billion, representing year-over-year growth of 20.5% to 22%.\nIn the retail/long-term care segment, we are also increasing our full year 2021 adjusted operating income guidance to $6.98 billion to $7.07 billion.\nWhile there are still many factors to play out, we believe that current analyst estimates for 2022 adjusted earnings per share of approximately $8.20 are within our anticipated initial guidance range.\nWe estimate these factors combined represent approximately $0.40 per share.\nUsing the midpoint of our updated 2021 adjusted earnings per share guidance range, which is $7.95, these adjustments create a 2021 baseline of $7.55.\nFor retail, we expect that COVID-19 vaccine and testing volume, which is expected to generate over $3 billion of revenue in 2021, will decline significantly in 2022 to 30% to 40% of the volume we administered in 2021.\nWith all of this in mind, the current consensus of analyst estimates of approximately $8.20 for adjusted earnings per share would represent about an 8% increase over the 2021 baseline.", "summaries": "We grew adjusted operating income by 12.5%.\nWe generated adjusted earnings per share of $1.97 and strong cash flow from operations of $5.5 billion.\nGiven these results and our outlook, we are raising our adjusted earnings per share guidance to $7.90 to $8.\nIn fact, this year, 12.5% of new COVID-19 testing customers chose to fill new prescriptions or receive a COVID-19 vaccination with CVS Health.\nTotal revenues of $73.8 billion increased 10% year over year with robust growth in all three segments.\nWe reported adjusted operating income of $4.1 billion, a 12.5% increase versus the prior year.\nAdjusted earnings per share of $1.97 represent a nearly 19% year-over-year increase, generated by our adjusted operating income growth and lower interest expense resulting from our ongoing deleveraging efforts.\nApproximately half or $1.2 billion is attributable to the contributions from the more than 11 million COVID vaccines and over 8 million COVID tests we administered combined with strong front store sales driven by demand for over-the-counter COVID test kits and related treatment categories.\nWe are also increasing expected full year cash flow from operations to a range of $13 billion to $13.5 billion.", "labels": "0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Q2 revenue was $567 million, which was down 12% as compared to the prior year period on a constant currency basis.\nThe decline in revenue is due to the negative impact from COVID-19, which we estimate caused a net negative impact of approximately $130 million or approximately 20%.\nIf we were to normalize for the negative COVID impact, we estimate that we grew our underlying business by approximately 8% on a constant currency basis, or near the high end of our initially provided 2020 full year constant currency revenue growth rate range.\nFrom an earnings per share perspective, like revenue, our adjusted earnings per share of $1.93 in the quarter also significantly exceeded our internal expectations.\nAs I mentioned, quarter two revenue declined 12% on a constant currency basis and 13.1% on an as-reported basis.\nThe decline in revenue was primarily due to COVID-19, which we estimate had a negative impact of approximately $144 million across several global product categories.\nThis was somewhat offset by approximately $14 million of additional revenue within our vascular access and other product categories, which experienced higher-than-expected demand as a result of COVID-19.\nFrom a margin perspective, we generated adjusted gross and operating margins of 53.9% and 21.8%, respectively.\nThis translated into a year-over-year decline of 380 basis points on the gross margin line and 340 basis points on the operating margin line, as reduced sales volumes and unfavorable revenue mix impacted by COVID were major headwinds.\nAdjusted earnings per share was $1.93, down 27.4% year-over-year, but well ahead of our internal expectations as the business started to recover during the quarter.\nNetting these two impacts, we estimate that COVID was a $130 million headwind or an approximate 20% detractor from our 2Q revenue growth.\nSpecifically, Interventional Urology year-over-year revenue was down approximately 79% in April.\nIt was down approximately 30% in May and then down approximately 8% in June.\nYear-over-year revenue declined approximately 30% in April, approximately 28% in May, and then it was down approximately 2% in June.\nAnd finally, our Surgical business experienced year-over-year revenue declines of approximately 34% in April, 31% in May and then approximately 21% in June.\nAs a result of the uncertainty associated with the scope and duration of COVID-19, we made the decision not to reinstate our 2020 financial guidance at this time.\nThe Americas delivered revenues of $312.5 million in the second quarter, which represents a 16% decline.\nWe estimate that the Americas would have grown approximately 8% excluding an estimated 24% impact of COVID on the region.\nEMEA reported revenues of $131.6 million in the second quarter, representing an 8% decline.\nAdjusting for COVID, we estimate approximately 1% underlying growth for the region.\nRevenues totaled $67.1 million in the second quarter, which represents a decline of 7.8%.\nAnd lastly, our OEM business reported revenues of $55.8 million in the second quarter, or 70 basis points recurring on a constant currency basis.\nExcluding the estimated COVID-19 impact, the business grew roughly 25%, which includes a 16% benefit from HPC.\nDue to the growth within both our central venous catheter and EZ-IO products, Q2 revenues increased 8.8% to $164.9 million.\nWe estimate that COVID-19 positively impacted the growth rates of our vascular products during the second quarter by approximately 5%.\nSecond quarter revenue was $82.6 million, which is lower than the prior year by 20.3%.\nWe estimate that underlying growth was in the mid-single digits, adjusting for an approximate 24% COVID-19 headwind.\nQ2 revenues were $64.9 million, which is lower than the prior year by 23%.\nWe estimate that COVID had an approximate 22% negative impact in the quarter.\nRevenue declined by 28.4% to $67.3 million, driven by lower sales of our ligation portfolio and instruments.\nWe estimate a significant 30% headwind from COVID during 2Q.\nQ2 revenue decreased 40.9% to $40.1 million.\nWe estimate an approximate $58 million COVID-19-related headwind during 2Q.\nAnd finally, our other category, which consists of our respiratory and urology care products grew 5.4%, totaling $91.4 million.\nThe results from the first study compared sexual function outcomes of 849 sexually active men who received daily treatments with an alpha blocker, 5-alpha-reductase inhibitor, either alone or in combination and 190 men from combined clinical studies of the UroLift System at 12, 24, 36 and 48 months.\nResults from the analysis showed that patients treated with the UroLift System experienced significant improvement in ejaculatory function and erectile function at 12 and 24 months post treatment.\nPatients also reported significant improvement in overall sexual satisfaction through 48 months post treatment.\nThe study compared 53 non-retention patients from two U.S. sites.\nWe plan to hold a market acceptance test for this product in late 2020.\nAnd while we estimate that between only 5% and 10% of the market have an obstructive median lobe, this enhancement demonstrates our commitment to invest in R&D to expand our leadership position in BPH.\nThe national campaign will run from July to December, and the strategic role of DTC is important, as about half of the 12 million men being treated for BPH believe prescription medications are their only solution.\nAdditionally, we submitted the UroLift two for 510(k) FDA approval at the end of the second quarter.\nAnd lastly, I would like to congratulate the interventional urology team on surpassing 200,000 patients treated with UroLift.\nWhile this is a significant milestone, with DTC in the U.S., approximately 2,700 urologists trained and major market launches scheduled over the next few years, we have only scratched the surface in treating the approximate 100 million men globally estimated to have BPH.\nWe recently began enrolling for a prospective single-arm IDE study, targeting 150 patients across approximately 15 sites within the U.S. to evaluate the performance of Teleflex coronary guidewires and specialty catheters in chronic total inclusion percutaneous coronary intervention procedures.\nFor the quarter, adjusted gross profit was $305.8 million versus $376.6 million in the prior year quarter, or a decrease of approximately 19%.\nAdjusted gross margin totaled 53.9% during the quarter, which is a decrease of 380 basis points versus the prior year period.\nIn total, we estimate that COVID-19 negatively impacted our adjusted gross profit by approximately $100 million in the quarter.\nAs a result of the efforts, we estimate that operating expenses were reduced in the second quarter by approximately $35 million.\nAdjusted operating profit was $123.9 million as compared to $164.7 million in the prior year or a decrease of approximately 25%.\nSecond quarter operating margin was 21.8% or down 340 basis points year-over-year, driven by the gross margin declines and loss of operating leverage, partly offset by the reduction in operating expense.\nFor the quarter, net interest expense totaled $15.5 million, which is a decrease of approximately 24% versus the prior year quarter.\nDuring the quarter, we took steps to further improve our liquidity by issuing $500 million of 8-year senior notes at 4.25%.\nFor the second quarter of 2020, our adjusted tax rate was 15.8% as compared to 13.4% in the prior year period.\nAt the bottom line, second quarter adjusted earnings per share decreased 27.4% to $1.93.\nIncluded in this result is an estimated adverse impact from COVID-19 of $1.18 as well as a foreign exchange headwind of approximately $0.04.\nDuring the second quarter of 2020, we committed to a workforce reduction plan, designed to improve the profitability by streamlining certain sales and marketing functions in our EMEA segment and certain manufacturing operations within our OEM segment.\nWe estimate that we will incur aggregate pre-tax restructuring charges of between $10 million and $13 million, consisting primarily of termination benefits, which will also result in future cash outlays.\nOnce the plans are fully implemented, we project annual pre-tax savings of between $11 million and $13 million, and we expect the savings will begin in 2020.\nIncluding the latest workforce reduction plan, savings across all programs are expected to be between $59 million and $72 million.\nApproximately 1/2 of the savings are expected to be realized in 2020 and 2021 and in the remaining 1/2 over the period 2022 through 2024.\nThis also adds to our confidence that our prior LRP financial targets of 6% to 7% revenue growth, 60% to 61% gross margin and 30% to 31% operating margin remain the right goals for Teleflex.\nFor the first half of 2020, cash flow from operations totaled $134 million as compared to $157.3 million in the prior year period or a year-over-year decrease of $23.3 million.\nThe decrease is attributed to a $10 million pension contribution made in the first half of 2020 and was not made in the first half of the prior year and a $54 million increase in first half 2020 contingent consideration payments versus payments made in the first half of 2019.\nAt the end of the second quarter, our cash balance was $553 million versus $406 million at the end of the first quarter.\nNet leverage at quarter end was approximately 2.6 times, providing comfortable headroom when compared to our covenant, which requires that we stay below 4.5 times.", "summaries": "Q2 revenue was $567 million, which was down 12% as compared to the prior year period on a constant currency basis.\nFrom an earnings per share perspective, like revenue, our adjusted earnings per share of $1.93 in the quarter also significantly exceeded our internal expectations.\nAdjusted earnings per share was $1.93, down 27.4% year-over-year, but well ahead of our internal expectations as the business started to recover during the quarter.\nAs a result of the uncertainty associated with the scope and duration of COVID-19, we made the decision not to reinstate our 2020 financial guidance at this time.\nWe plan to hold a market acceptance test for this product in late 2020.\nAt the bottom line, second quarter adjusted earnings per share decreased 27.4% to $1.93.\nDuring the second quarter of 2020, we committed to a workforce reduction plan, designed to improve the profitability by streamlining certain sales and marketing functions in our EMEA segment and certain manufacturing operations within our OEM segment.\nWe estimate that we will incur aggregate pre-tax restructuring charges of between $10 million and $13 million, consisting primarily of termination benefits, which will also result in future cash outlays.\nOnce the plans are fully implemented, we project annual pre-tax savings of between $11 million and $13 million, and we expect the savings will begin in 2020.", 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{"doc": "We had an excellent second quarter with a 24% increase in adjusted earnings per share from the second quarter of 2020 and a record 1.8 gigawatts of renewables under long-term contracts added to our backlog bringing our total to 8.5 gigawatt.\nWe remain on track to achieve 7% to 9% average annual growth in adjusted earnings per share and parent-free cash flow through 2025.\nAs you may recall, during our Investor Day in March, we outlined our plan to invest $2.3 billion to transform our two U.S. Utilities, AES Ohio and AES Indiana.\nStarting with AES Ohio on slide 5 where we expect to nearly double the rate base by growing 12% annually through 2025.\nNow, moving on to AES Indiana on slide 6 where we're investing $1.5 billion over the next five years as part of our grid modernization program and our transition to more renewables-based generation.\nWe recently received regulatory approval for our 195 megawatt Hardy Hills Solar Project.\nAnd we announced an agreement to acquire the Petersburg Solar Project, which includes 250 megawatts of solar and a 100 megawatt hours of energy storage.\nWe expect to grow the rate base at AES Indiana by more than 7% annually.\nNow, turning to the second theme of renewables growth on slide 7; last year was a record-breaking year of renewable contracts for us with over 3 gigawatt signed.\nSo far this year, we have already signed almost 3 gigawatt of contracts for wind, solar, and energy storage nearly double the amount at the same time last year.\nMore than 90% of the new contracts are in the U.S. and we are well on our way toward achieving or exceeding our target of 4 gigawatts for 2021.\nAt the same time, more than 80% are with C&I customers negotiated on a bilateral basis.\nOur progress so far this year includes our recent agreement to acquire 612 megawatts of operating wind assets in New York as shown on slide 8.\nThis year we announced the world's first ever large scale 24/7 carbon-free energy netted on an hourly basis supplying Google's Virginia data centers.\nWe have since replicated similar structures with other large-scale customers helping them to achieve their sustainability targets while supporting our renewables growth goals or a total of 1.5 gigawatts of these Clean Energy products signed or awarded thus far this year.\nTurning to slide 10, with nearly 3 gigawatts of renewables and energy storage projects added this year we now have a backlog of 8.5 gigawatt including 2.5 gigawatts currently under construction.\nWe expect to bring 1.4 gigawatts online during the remainder of 2021.\nThe strength of our U.S. renewables growth in the rapidly expanding market will support achieving our goal of having 50% of our earnings from renewables and utilities and 50% of our earnings from the U.S. by 2025.\nAs you can see on slide 11, we now have a pipeline of 37 gigawatts, among the largest in the world.\nMore than 60% of this pipeline is in the U.S. including 8 gigawatts in the hottest market in the country, California.\nNow to decarbonization on slide 12; last month, AES Andes announced that 1.1 gigawatts of coal-fired generation would be voluntarily retired as soon as January 2025 and will be replaced with 2.3 gigawatt of newly contracted renewable.\nSince 2017, we have announced the sale or retirement of almost 12 gigawatts of coal-fired generation, which is among the largest programs of any American company.\nI am pleased to report that these exits along with our substantial renewable additions reduce our generation from coal to approximately 20% of total generation on a pro forma basis, an additional reduction of 5 percentage points since last quarter.\nWith 90% of the equipment needed for our 8.5 gigawatt backlog already secured, we feel very comfortable in our ability to execute on our strong pipeline over the short- and medium-term.\nFor example, we have benefited significantly from our Energy Storage business, which we started over 10 years ago and which now is one of the largest in the industry.\nSpecifically, the award was for the AES Alamitos Battery Energy Storage System consisting of 400 megawatt hours of energy storage that can supply power to tens of thousands of homes in milliseconds.\nTurning to slide 15, similarly, we continue to benefit from our investment in Uplight, which provide cloud-based energy efficiency solutions to more than a 110 million households and businesses through its numerous utility customers, including AES Ohio in AES Indiana.\nIn July, we closed the previously announced transaction with Schneider Electric and a group of investors that valued Uplight at $1.5 billion.\nNot only are we well-positioned to achieve all of our financial goals but we are on track to hit our transformational targets of more than 50% of our earnings from renewables and utilities and more than 50% from the U.S. while having less than 10% of our generation from coal by 2025.\nTurning to our financial results for the second quarter on slide 17; adjusted earnings per share was up 24% to $0.31, primarily reflecting execution on our growth plan, demand recovery at our U.S. Utilities and parent interest savings.\nTurning to slide 18, adjusted pre-tax contribution or PTC was $303 million for the quarter, an increase of $65 million versus the second quarter of 2020.\nIn the U.S. & Utilities Strategic Business Unit or SBU, PTC was up $71 million driven primarily by the demand recovery at our utilities, higher contributions from about 1 gigawatt of new renewable assets, and the commencement of Power Purchase Agreements or PPAs at Southland Energy in California.\nFor Q2 on a weather-normalized basis demand at AES Ohio is up 9% and demand at AES Indiana is up 4%.\nSeparately, in California, our 2.3 gigawatt Southland legacy units are well-positioned to contribute to the State's pressing energy needs and its transition to a more sustainable carbon free future.\nIn fact, the State Water Board is considering the California Energy Agencies' recommendation for our 876 megawatt Redondo Beach facility to be extended for two years through 2023 to align with our remaining legacy units.\nTurning to slide 24; with our first half results we are on track to achieve our full year 2021 adjusted earnings per share guidance of $1.50 to $1.58.\nAs we have discussed in the past, our typical quarterly earnings profile was more back-end weighted with roughly 40% of earnings occurring in the first half of the year.\nGrowth in the year-to-go will be primarily driven by 1.4 gigawatts of new renewables assets coming online in the remainder of the year, continued demand recovery across our markets, reduced interest expense and cost savings benefits.\nWe are also reaffirming our expected 7% to 9% average annual growth target through 2025.\nWe expect the positive momentum in these metrics to continue enabling us to reach BBB ratios by 2025.\nNow to our 2021 parent capital allocation plan on slide 26; consistent with our prior disclosures, sources shown on the left hand side of this slide reflect approximately $2 billion of total discretionary cash.\nThis includes $800 million of parent-free cash flow, $100 million of proceeds received from the sale of Itabo in the Dominican Republic, and the successful issuance of the $1 billion of equity units in March.\nNow to uses on the right hand side, we'll be returning $450 million to shareholders this year consistent of our common share dividend and the coupon of the equity units.\nAnd we plan to invest approximately $1.4 to $1.5 billion in our subsidiaries, as we capitalize on attractive opportunities for growth.\nApproximately 60% of these investments are in global renewables reflecting our success in originations during 2020 and our expectations for 2021.\nAnd about 25% of these investments are in our U.S. Utilities to fund rate based growth with a continued focus on grid and fleet modernization.\nIn the first half of the year, we invested approximately $700 million primarily in renewables, which is roughly 50% of our expected investments for the year.\nWe have the most innovative new products and an 8.5 gigawatt backlog and a 37 gigawatt pipeline of projects.\nAll-in-all we are enthusiastic about our future and we feel confident about delivering on our 7% to 9% average annual growth rate.", "summaries": "Turning to our financial results for the second quarter on slide 17; adjusted earnings per share was up 24% to $0.31, primarily reflecting execution on our growth plan, demand recovery at our U.S. Utilities and parent interest savings.\nTurning to slide 24; with our first half results we are on track to achieve our full year 2021 adjusted earnings per share guidance of $1.50 to $1.58.\nWe expect the positive momentum in these metrics to continue enabling us to reach BBB ratios by 2025.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For 2021, we reported net income of $2.56 per share, which is an 11% increase compared to net income from continuing operations of $2.30 per share in 2020.\nUnemployment rates in this area declined to 3.9% in December 2021, compared to 7.3% a year ago.\nHome sales were up 10% during 2021 compared to 2020, with the average sales price up 16%.\nAnd new single-family permits issued were up 12% with multifamily permits up 37% in Oregon this past year compared to the prior period.\nThis translated into over 11,000 new customers connecting to our gas system during 2021 for a growth rate of 1.5%.\nStrong residential housing construction, primarily in Idaho and Texas, translated into a 3% organic customer growth rate.\nThe combination of organic growth and acquisitions increased our water utility connections by nearly 30% last year.\nDespite these increases, our customers continued to pay nearly 30% less for their natural gas today than they did 15 years ago.\nAdded to its performance benefits, natural gas enjoys up to a 60% price advantage over an electric or oil formats for the typical home we serve.\nThe request includes a revenue requirement increase of $73.5 million based on a 50-50 cap structure and ROE of 9.5% and a cost of capital of about 6.7%.\nWe filed an increase in average rate base of $294 million since the last rate case.\nThe Oregon Commission and stakeholders have 10 months to review the case, and we expect new rates to be effective November 1.\nAt the same time, we continue to make progress under the Landmark Oregon Senate Bill 98 Legislation, which supports renewable energy procurement and investment by natural gas utilities.\nTo date, we signed agreements with options to purchase or develop RNG on behalf of our customers, totaling about 3% of Northwest Natural's current annual sales volume in Oregon.\nTo put it in perspective, today, wind and solar account for about 11% of our total nation's electricity supply after decades of investment.\nA new survey conducted by an independent leading opinion search -- research firm showed that 77% of Oregon and Southwest Washington voters want access to all forms of energy, renewable energy, hydro, wind, solar and renewable natural gas for a balanced low-carbon future.\nIn fact, 78% of voters value the natural gas system for its critical role in lowering emissions with both affordability and reliability and, of course, resiliency as top priorities.\nAnd nearly 80% of owners support local government's efforts to encourage the use of natural gas.\nOur annual dividend -- indicated dividend rate is now $1.93 per share.\nI'll describe earnings drivers on an after-tax basis using the statutory tax rate of 26.5%.\nFor the quarter, we reported net income of $40.5 million or $1.32 per share, compared to net income of $45.8 million or $1.50 from continuing operations for the same period in 2020.\nThe decrease in net income over last year was driven by results of our gas utility, which posted a $0.15 per share decline in earnings.\nThe other businesses posted a $0.03 per share decrease in earnings, driven by higher business development costs.\nUtility margin in the gas distribution segment increased $4.5 million as a result of the new rates and customer growth.\nUtility O&M increased $5.7 million, reflecting higher levels of expense for payroll and benefits, contractor and professional services and information technology upgrades.\nUtility and depreciation and general taxes increased $1.6 million due to higher property, plant and equipment as we continue to invest in our system.\nFor the full year 2021, we reported net income of $78.7 million or $2.56 per share, compared to net income from continuing operations of $70.3 million or $2.30 per share for 2020.\nThis $0.26 per share increase was driven by both the gas utility, which contributed an additional $0.16; and our other businesses that contributed an additional $0.10 per share.\nUtility margin increased $30.7 million as higher customer rates and customer growth contributed $30.9 million.\nUtility O&M increased $14.2 million, driven by higher employee compensation and benefit costs, lease expenses for our new operations and headquarters building and higher costs related to information technology system upgrades.\nDepreciation and general taxes increased $9 million.\nNet income from our other businesses increased $3 million, largely due to higher asset management revenues from the cold weather event in February.\nFor 2021, cash provided by operating activities was $160 million, an increase of $15 million compared to last year.\nWe invested $300 million into the business, most of which was for the gas utility capital expenditures.\nGas utility capital expenditures for the year are expected to be in the $310 million to $350 million range, including significant projects related to system reinforcement and technology upgrades.\nConsistent with these business drivers, the company initiated 2022 earnings guidance today for net income in the range of $2.45 to $2.65 per share.\nAs a result, we are now targeting a long-term earnings-per-share growth rate of 4% to 6% from 2022 to 2027.\nThis report illustrates different possible scenarios to transform into a provider of carbon-neutral energy by 2050.\nOur Destination Zero analysis is the next evolution for us and built off our 2016 carbon savings goal for our customers' use, and the 2019 study we commissioned with the Environmental Consultant E3, Paris Climate Accord reduction targets by 2050.\nAnd as you know, we've already taken our first steps with a 20-year RNG supply agreement and a total of $50 million investment.\nMike brings more than 25 years of experience in this sector, and I know we're ready and resourced to pursue these opportunities.\nSince announcing our initial transaction four years ago, we solidified our water strategy and increased the number of customers we serve fivefold through nearly 20 acquisitions across four states.\nAnd most notably, we signed our largest acquisition today to acquire Far West Water and wastewater utilities in Yuma, Arizona, which serves approximately 25,000 customers.\nSo in conclusion, your company is financially strong, and I'm pleased the opportunities in the renewables and water sectors have allowed us to increase our long-term earnings-per-share growth rate of 4% to 6%.", "summaries": "For 2021, we reported net income of $2.56 per share, which is an 11% increase compared to net income from continuing operations of $2.30 per share in 2020.\nFor the full year 2021, we reported net income of $78.7 million or $2.56 per share, compared to net income from continuing operations of $70.3 million or $2.30 per share for 2020.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our dedicated team has done a remarkable job closing on the merger ahead of schedule and implementing an integration plan that included onboarding and training over 100 new employees, significant systems integration and property management, all while staying focused on executing our strategy.\nOur pro-rata U.S. occupancy is up 20 basis points to 94.1 percent, while anchor occupancy remained flat at 96.9 percent.\nAnd small shop occupancy rose 180 basis points over prior quarter to 87.3 percent, an increase of 60 basis points year-over-year.\nNew lease spreads were a positive 5 percent, with 141 new leases signed, totaling 605,000 square feet.\nSpreads for renewals and options finished at positive 4.9 percent.\nWe closed the quarter with 270 renewals and options totaling 1.4 million square feet, exceeding the five-year average number of renewals and options reported during the third quarter by 40 percent and exceeded average GLA renewed by 38 percent.\nCombined spreads for third quarter 2021 were positive 4.9 percent and with total 3Q, '21 deal volume reaching 411 deals totaling 2,050,321 square feet.\n411 leases executed represents the most transactions reported during a quarter since the first quarter of 2018.\nOur same-site NOI growth was positive 12.1 percent, including a 30 basis point contribution from redevelopments.\nWith the continued strength in leasing, we have maintained our 300 basis point spread of leased versus economic occupancy similar to last quarter.\nAs of September 30, 2021, we had over 400 signed leases representing $44.8 million of pro-rata annualized base rents awaiting rent commencement.\nSubsequent to quarter end, we acquired the remaining 70 percent interest in a portfolio of six Publix-anchored Sunbelt-region shopping centers from our existing joint venture partner, Jamestown, for a gross purchase price of $425.8 million.\nThe Publix-anchored assets represent over 1.2 million square feet of gross leasable area in infill markets throughout the Southeast, with five located in the top-performing South Florida market and one in the high-growth Atlanta market.\nSubsequently, Kimco entered into a joint venture partnership with Blackstone Real Estate Income Trust, under which we will both own 50 percent and Kimco will continue to manage the portfolio.\nAlso post quarter end and in line with our value creation strategy, we were successful in buying out our partner's 85 percent interest in two grocery-anchored centers in California.\nThe gross purchase price of the two assets was $134 million.\nOn that front, we completed a $21.5 million mezzanine financing on a strong performing center in San Antonio called Alamo Ranch.\nTwo single tenant boxes and an undeveloped parcel for a total of $23.5 million at a flat 5 percent cap.\nAs you might expect, the completion of the $5.9 billion Weingarten merger, which closed in early August was a key contributor.\nNAREIT FFO was $173.7 million or $0.32 per diluted share and includes $47 million or $0.08 per diluted share of merger-related expenses.\nThis compares to the third quarter 2020 NAREIT FFO of $106.7 million or $0.25 per diluted share, which includes aggregate charges of $16.1 million or $0.04 per diluted share related to severance for our voluntary early retirement program and early redemption of $485 million of unsecured bonds.\nThe increase in FFO was primarily driven by higher NOI of $98.7 million, of which the Weingarten merger contributed $62.6 million.\nIn addition, NOI benefited from lower credit loss of $30.7 million and higher straight-line rent of $14.5 million, including $2 million from the Weingarten portfolio.\nSpecifically, during the third quarter, we collected approximately 98 percent of base rents.\nWe also collected 80 percent of rents due from cash basis tenants, up from 77 percent last quarter.\nFurthermore, collections of prior period amounts from cash basis tenants totaled $8 million during the third quarter of 2021.\nOur cash basis tenants comprise 9.1 percent of pro-rata annualized base rents.\nIf we excluded the addition of the Weingarten cash basis tenants, this amount would have been 7.3 percent, which compares favorably to the 8.8 percent level reported last quarter.\nIn connection with the preliminary purchase price allocation for the Weingarten transaction, the debt we assumed was recorded at a fair value, which was $107 million higher than the face amount.\nThis resulted in $6.2 million of fair market value amortization for the third quarter, which reduces interest expense and is also part of the FFO improvement.\nDuring the third quarter, FFO also included approximately $6 million or $0.01 per diluted share related to one-time contributions from several joint ventures and higher lease termination fees.\nWe issued a new $500 million unsecured bond at a coupon of 2.25 percent, the lowest coupon for 10-year unsecured financing in the company's history.\nWe also opportunistically used our ATM equity program to issue 3.5 million shares of common stock, raising almost $77 million in net proceeds to fund some of the investment activity Ross just mentioned.\nThis is in addition to the 179.9 million shares of common stock issued in connection with the Weingarten merger valued at $3.7 billion.\nWe also assumed $1.8 billion of debt, including the fair value adjustment as part of the Weingarten merger.\nTotal common shares outstanding at quarter-end was 616.4 million, and we expect this should be a good guide for the fourth quarter.\nOn a pro forma basis, including a full quarter of EBITDA from Weingarten, look through net debt-to-EBITDA would be 6.3 times, representing the lowest level since we began tracking this metric.\nWe ended the third quarter with over $450 million of cash and full availability on our $2 billion revolving credit facility.\nIn addition, during the third quarter, the value of our Albertsons marketable security investment climbed to more than $1.2 billion after increasing by $457 million, which is included in net income but not FFO for the quarter.\nAs our overall business continues to recover from the effects of the pandemic and as we begin to benefit from the successful merger and integration of the Weingarten portfolio, we are raising our full-year 2021 NAREIT FFO per share guidance range to $1.36 to $1.37, which includes $0.10 per diluted share of merger-related costs and the inclusion of the Weingarten portfolio for five months.\nThis compares to previous NAREIT FFO per share guidance of $1.29 to $1.33, which did not include any impact from the Weingarten merger except $0.01 related to merger costs.\nAs I touched upon, our third quarter FFO includes a total of $0.03 per share related to items that were more onetime in nature and which were not budgeted for as recurring items.\nThis includes $0.02 per diluted share from improvements in credit loss and another $0.01 from contributions from joint ventures and lease termination fees.", "summaries": "Our same-site NOI growth was positive 12.1 percent, including a 30 basis point contribution from redevelopments.\nNAREIT FFO was $173.7 million or $0.32 per diluted share and includes $47 million or $0.08 per diluted share of merger-related expenses.\nAs our overall business continues to recover from the effects of the pandemic and as we begin to benefit from the successful merger and integration of the Weingarten portfolio, we are raising our full-year 2021 NAREIT FFO per share guidance range to $1.36 to $1.37, which includes $0.10 per diluted share of merger-related costs and the inclusion of the Weingarten portfolio for five months.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "Sales were down 5.8%.\nHowever, we saw gross profit margin of 43.4% expand 170 basis points and reported operating profit margin expand 180 basis points against the prior year.\nI have been at Acuity Brands for a little over 12 months and what I continue to see every day is a team that is striving for success, that is not shy about changing and that believes in Acuity and where we are going.\nTrevor brings 27 years of industry experience to the role.\nOur recent accomplishment of achieving carbon neutrality across Scope 1 and 2 emissions in our operations is the result of this work and demonstrates our commitment to continually improving our communities.\nAs I previously mentioned, we have now repurchased nearly 10% of our outstanding shares since May 2020.\nOur associates pulled together to deliver a solid performance and the fourth consecutive quarter of gross profit margin over 42%.\nMoving to our second quarter results, net sales were $777 million, a decrease of 5.8% compared to the prior year, which we believe was a very good performance in this market.\nRetail channel sales declined approximately 24% as compared to the prior year as a result of strong year-over-year pre-pandemic comparison.\nFinally, sales in corporate accounts declined just over 50% as compared to the prior year.\nGross profit margin was 43.4% for the second quarter of fiscal 2021, an increase of 170 basis points over the prior year.\nGiven this gross profit margin improvement, we believe attaining a gross profit margin above 42% is reasonable on an annualized basis.\nReported operating profit margin was 11.7% of net sales for the second quarter of fiscal 2021, an increase of 180 basis points over the prior year.\nAdjusted operating profit margin was 14% of net sales for the second quarter of fiscal 2021, an increase of 170 basis points over the prior year.\nAs previously discussed, this quarter, we were able to share with our associates that we achieved 100% carbon neutrality within our operations by prioritizing efficiency improvements in operations and some offsetting measures.\nThe effective tax rate for the second quarter of fiscal 2021 was 23.5% compared with 23.4% in the prior year quarter.\nWe currently estimate that our blended effective income tax rate will be around 24% for the full year fiscal 2021.\nDiluted earnings per share of $1.74 increased $0.30 or 20.8% over the prior year and adjusted diluted earnings per share of $2.12 increased $0.28 or 15.2% over the prior year.\nNet cash from operating activities for the first half of fiscal 2021 was relatively flat at approximately $213 million compared to the prior year.\nWe invested $21 million or 1.4% of net sales in capital expenditures during the first half of fiscal 2021 and currently expect to invest approximately 1.5% of net sales in capital expenditures in the full year of fiscal 2021.\nOn February 28, 2021, we had cash and cash equivalent balance of $499 million.\nOver the last 12 months, we have been extremely judicious around our capital allocation decisions.\nAs a result, we have repurchased 3.2 million shares of common stock during the first half of fiscal 2021 for a total of $338.3 million, at an average price of $104 per share, with 4.4 million shares still remaining under our current Board authorization.\nWhether commodity prices increase or decline, we believe we can hold gross profit margin above 42% by controlling what we can control and through the ongoing improvements throughout our business.", "summaries": "Diluted earnings per share of $1.74 increased $0.30 or 20.8% over the prior year and adjusted diluted earnings per share of $2.12 increased $0.28 or 15.2% over the prior year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "Through September, 71%, 69%, 72% and 77% of strategy composites outperformed their respective benchmarks across the four key time periods.\nFiscal year long-term inflows doubled to $365 billion from the prior year, notably, the U.S., which is our largest sales region with over $1.1 trillion in AUM was net flow positive for the year.\nIn terms of other accomplishments, our alternative asset strategies, an important area of focus for us, generated positive net flows in each quarter during the year and grew by 19% from the prior year to $145 billion in AUM with contributions from a diverse group of strategies, including real estate infrastructure, private debt and hedge funds.\nUpon the close of this transaction, we expect our alternative AUM to approach approximately $200 billion and over $1 billion in revenue, excluding performance fees.\nWe are a top three provider in SMAs with $125 billion in assets under management, which is one of the fastest growing segments in retail.\nOur SMA business grew by 22% in AUM year-over-year and generated positive net flows in each quarter during the fiscal year.\nCanvas was launched in late 2019 and has seen strong growth since its inception and now represents $1.9 billion of the firm's total AUM of $6.3 billion as of September 30.\nAs an active manager approximately 95% of our AUM represents strategies that consider ESG factors as part of the investment process and ESG specific strategies representing over $200 billion in AUM were net flow positive in each quarter this fiscal year.\nFourth quarter long-term net outflows were $9.9 million, which were partially offset by the acquisition of Diamond Hill's high yield focused U.S. corporate credit mutual funds, which added $3.5 billion in AUM and closed in July.\nThis quarter included the previously disclosed $5.4 billion 529 plan redemption, which included $4.7 billion of long-term assets and $2 billion fixed income, institutional redemption that have minimal impact to revenue and $800 million of fixed income outflows from the non-management fee, earning India credit funds that are in the process of liquidation.\nReinvested dividends were $2.3 billion in this quarter.\n1% higher average assets under the management of $1.55 trillion compared to the prior quarter, plus $69 million of performance fees generated $1.66 billion in adjusted revenue for the fourth quarter.\nInvestment management fees, excluding performance fees was 3% higher compared to the prior quarter.\nAdjusted operating expenses of $1.01 billion for the quarter were 3% lower due to lower compensation and lower G&A as a result of last quarter's upfront closed-end fund expenses.\nThis led to an 80% increase in adjusted operating income of $647 million and an adjusted operating margin of 39%.\nFourth quarter adjusted net income and adjusted diluted earnings per share increased 31% to $645 million, or $1.26 per share.\nThese results include favorable discrete tax items of $135 million or $0.30 per share for the quarter.\nFor the full year, adjusted revenues were $6.32 billion and adjusted operating expenses were $3.94 billion, an increase of 63% and 65% respectively.\nThis led to fiscal year adjusted operating income of $2.38 billion, which was 60% higher compared to the prior year.\nOur adjusted operating margin was 37.7%.\nCompared to the prior year, fiscal year adjusted net income increased 46% to $1.92 billion and adjusted diluted earnings per share increased 43% to $3.74 per share, which included the impact of favorable discrete tax items of $175 million or $0.34 per share for the full year.\nAs planned, we have achieved a run rate of 85% of our targeted merger-related cost synergies of $300 million this year.\nWe anticipate that 100% of these synergies will be achieved by the end of fiscal year 2022.\nFor the fiscal year ended September 30, we returned $782 million to shareholders through dividends and share repurchases.\nSpecifically, we issued $850 million of 1.6% senior notes due 2030 and $350 million, 2.95% notes due 2051.\nWe redeemed $250 million of 6.38% Legg Mason Junior subordinated notes due 2056 on March 15, 2021, and $500 million of 5.45% Legg Mason Junior subordinated notes due 2056 on September 15 2021.\nWe ended the quarter with $6.93 billion of cash and investments.\nAs outlined in the transaction summary document, Lexington Partners is a global leader in secondary private equity and co-investments with current fee based AUM of $34 billion.\nSince its founding in 1994, Lexington has raised over $55 billion in aggregate capital commitments and currently has a team of 135 employees across eight global offices.\nIt is expected to generate revenue of approximately $350 million and EBITDA of approximately $150 million in 2022.\nAs Jenny mentioned earlier, this transaction takes us one important step further in creating a larger and more diversified alternative asset business that will result in pro forma fiscal year 2022 alternative asset AUM of approximately $200 billion, producing approximately $1 billion in annual management fee revenue, excluding performance fees at a margin of approximately 40%.\nTurning to financial terms of the transaction, we're acquiring 100% Lexington Partners for $1 billion in cash at closing plus a further $750 million in cash over the next three years.\nConsistent with this, we will be simultaneously issuing grants equal to 25% of Lexington to employees of Lexington, subject to five year vesting and establishing a performance based cash retention pool of $338 million to be paid over the next five years.", "summaries": "1% higher average assets under the management of $1.55 trillion compared to the prior quarter, plus $69 million of performance fees generated $1.66 billion in adjusted revenue for the fourth quarter.\nFourth quarter adjusted net income and adjusted diluted earnings per share increased 31% to $645 million, or $1.26 per share.", "labels": 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{"doc": "For the second quarter, we generated consolidated adjusted EBITDA of $1.023 billion and distributable cash flow of approximately $340 million on revenue of over $3 billion.\nWe generated a net loss of approximately $329 million, due primarily to the unrealized derivative accounting treatment required on our hedges and on our Integrated Production Marketing, or IPM transactions, which Zach will discuss in more detail in a few minutes.\nWe now forecast 2021 consolidated adjusted EBITDA of $4.6 billion to $4.9 billion and distributable cash flow of $1.8 billion to $2.1 billion.\nJust after the quarter ended, we signed our third IPM agreement in support of Corpus Christi Stage 3, this time, with Tourmaline, the largest natural gas producer in Canada.\nSo far in 2021, we've entered into fixed fee sales agreements for portfolio volumes with multiple counterparties aggregating approximately 12 million tons of LNG volume between this year and 2032, in addition to the IPM deal with Tourmaline.\nOn the production side, the record we set in the first quarter for LNG exports didn't stand very long as we broke that record in the second quarter with 139 cargoes of LNG exported from our two facilities.\nYear-to-date, Asia is the top destination of Cheniere cargoes with approximately 45% of our cargoes exported having landed in Asia, followed by Europe with roughly 35%, and Latin America with about 20%.\nSouth Korea and China are the top two countries importing our LNG so far this year, and those two alone account for over 1/4 of all cargo deliveries.\nSpeaking of Train 6, a significant milestone was met last month with the introduction of fuel gas into the train, signaling the start of early commissioning activities.\nAt the site, 17 systems were turned over to the start-up team in June, another 12 in July.\nWith the project approximately 90% complete Bechtel continues to progress this project against an accelerated schedule.\nAs a reminder, our Stage three project at Corpus Christi is fully permitted, and if fully constructed, would have over 10 million tons of LNG capacity per year.\nOur excitement around the potential investment opportunities at the Corpus Christi site doesn't end with Stage 3.\nAs you may recall, we have acquired approximately 500 acres adjacent to our existing site, which provides us with a platform for major future development potential.\nAs you can see from the aerial view of the land position at Corpus Christi, the site possesses a substantial running room for growth well beyond Stage 3.\nAs reflected by the historically high LNG prices in both Europe and Asia, markets remain tight through this past winter, with global LNG demand growing by 9% year-over-year in the second quarter, slightly surpassing the fourth quarter demand levels despite the second quarter historically being a shoulder period in the market.\nGlobal LNG production rebounded 8% year-over-year in Q2, primarily on U.S. volume growing 80% compared to last year when customers were exercising their cargo cancellation rights.\nThrough the first half of the year, U.S. LNG production is up 43% year-over-year approximately 35 million tons.\nOverall, U.S. LNG flows to Asia increased over 10% in the first half of '21 to 48% of total U.S. exports compared to 38% in the first half of 2020.\nMeanwhile, flows to Europe dropped over 15 percentage points from 51% to 34% year-over-year, coinciding with natural gas storage inventories again at multiyear lows.\nLNG flows into Europe were 9% or roughly 2.1 million tons lower year-on-year in Q2 as a result of tight global LNG supply balances.\nEuropean inventories currently stand at record low levels, with a 16 BCM deficit to the five year average, which is equivalent to roughly 170 LNG cargoes.\nThese supply and demand dynamics were reflected in European gas prices during the second quarter, with Dutch TTF settlement averages increasing by over $6 an MMBtu to $7.82 in MMBtu and almost 350% increase year-over-year.\nJack mentioned a moment ago that Korea and China alone imported over 25% of all our LNG production year-to-date.\nAsia imported 65 million tons of LNG in the second quarter, an increase of eight million tons or 14% year-on-year.\nThe JKT region contributed over 20% of that growth despite higher nuclear availability in Japan.\n10 nuclear units have restarted in Japan as of July 21, the highest number of operating units since the Fukushima disaster over a decade ago.\nA particular note, Taiwan retired 25% of its nuclear fleet in the second quarter and has a stated goal to become nuclear-free by 2025.\nImports in China surged 22% to 20 million tons in the second quarter, making China the largest LNG importer on a global basis surpassing Japan.\nLatin America's imports increased more than 70% year-on-year in the second quarter, with Cheniere-produced cargoes making up nearly 40% of total imports.\nFlows into Latin America represented 17% of total U.S. exports, increasing over 5% from the comparable 2020 period.\nIn the European Union, carbon prices reached all-time highs in the second quarter, reaching over EUR55 per ton during the quarter and continuing higher to nearly EUR60 per ton, or roughly $3.50 an MMBtu equivalent in early July.\nWhile this market is nascent today, as of mid-July, there were 12 carbon-neutral LNG cargoes in 2021 globally.\nFor the second quarter, we generated revenue of approximately $3 billion, consolidated adjusted EBITDA of approximately $1 billion and distributable cash flow of approximately $340 million and a net loss of $329 million.\nThe unfavorable pre-tax impact from changes in the fair value of our commodity and FX derivatives during second quarter 2021 was approximately $672 million, most of which was noncash, but was the primary driver of our recognized net loss for the second quarter.\nFor the second quarter, we recognized in income 522 TBtu of physical LNG, including 508 TBtu from our projects and 14 TBtu from third parties.\nApproximately 80% of these LNG volumes recognized in income were sold under long-term SPAs or from volumes procured under our IPM agreement.\nWe received $36 million related to sales of commissioning cargoes in the second quarter from LNG, which was in transit at the end of the first quarter, corresponding to six TBtu of LNG.\nAs you may recall, we established an initial debt reduction for 2021 to pay down at least $500 million of outstanding debt.\nDuring the second quarter, we fully repaid the remaining outstanding borrowings under Cheniere's term loan and fully repaid Cheniere's convertible notes due May 2021, with $500 million of cash-on-hand and the remainder about $130 million from borrowings under the CEI revolver.\nSo as of June 30, we have already achieved our minimum full year goal of $500 million in debt reduction.\nContinuing with the balance sheet management, since our last call, we have locked in a further $200 million of long-term amortizing fixed rate notes at SPL on a private placement basis, with multiple counterparties.\nYear-to-date, we have locked in approximately $347 million of such notes, which will fund on a delayed draw basis in late 2021 and will economically refinance a portion of SBL's outstanding 6.25% notes due 2022.\nS&P cited the EBITDA and cash flow growth resulting from the successful completion of eight trains, accelerated schedule of Train 6, and the expectation of significant improvement in leverage levels over the next two years as we execute on our stated deleveraging plan.\nJack and Anatol have both discussed the success we've had so far in 2021 on marketing and origination, with 12 million tons of midterm deals done as well as the recent 15-year Tourmaline IPM transaction.\nAggregating the midterm and IPM transactions we've completed year-to-date, we have sold approximately 25 million tons of LNG which will generate over $3 billion in fixed fees into the next decade, which clearly has derisked our cash flows further.\nAs previously mentioned, today, we are increasing our guidance ranges for full year 2021 consolidated adjusted EBITDA and distributable cash flow by $300 million and $200 million, respectively, bringing total increases to $700 million and $600 million, respectively, above the original ranges we provided in November of last year.\nOur revised guidance ranges are $4.6 billion to $4.9 billion in consolidated adjusted EBITDA and $1.8 billion to $2.1 billion in distributable cash flow.\nWhen we updated guidance on the last call, one of the primary drivers was an improvement in market margins from approximately $2 in February to approximately $3 in May.\nSince then, that margin has gone up by another over $3, and our production forecast has increased as well.\nWe currently forecast that the dollar change in market margin would impact EBITDA by less than $25 million for the rest of the full year 2021.\nEntering 2021, we forecasted free cash flow at around $1 billion for the year.\nAs Bcf guidance has moved up $600 million in the subsequent six months, it's reasonable to think our FCF forecast has moved up largely in lockstep with DCF.\nSo over $1.5 billion.", "summaries": "We received $36 million related to sales of commissioning cargoes in the second quarter from LNG, which was in transit at the end of the first quarter, corresponding to six TBtu of LNG.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "January started off stronger than we anticipated for our portfolio returning to greater than $60 RevPAR with South Florida and Washington DC offsetting lock downs on the West Coast and the Northeast.\nMost corporate accounts anticipate returning to at least 50% of pre-COVID travel by the end of 2021 and more than 40% of these accounts expect a full recovery in corporate travel by 2022.\nThis portfolio of hotels is about 25% of our pre-pandemic EBITDA, had a weighted average occupancy nearing 40% and realized ADR growth of 2% for the full year 2020.\nAcross the country in Key West the Parrot Key Hotel and Villas was our best performing asset during the fourth quarter, generating 55% occupancy and 8.4% year-over-year ADR growth to $306 for the period.\nThe holiday weeks were especially strong, most notably the period between Christmas and New Year's which had greater than 90% occupancy and saw ADR exceed 2019 levels at the hotel.\nOur largest asset the Cadillac Hotel and Beach Club on Miami Beach is seeing increased demand on weekends entering special events, generating occupancies approximating 90% with rate on pace to improve incrementally throughout the balance of the quarter.\nThe Ritz Carlton Georgetown was able to hold a $1,000 ADR for the peak nights for the few leisure guests in town.\nOne of our better performing markets during the fourth quarter from our forecast perspective was our New York City portfolio, finishing the quarter with close to 40% occupancy, which came in spite of having few leisure oriented attractions open in the city.\nThese customers, the New York Fire and Police Departments and a few medical groups continue to get rest at the new hotel Brooklyn and the Hampton Inn Seaport resulting in January occupancy of 97% and 51% respectively.\nIt may not actualize as high as 25% as some of predicted, but the confirmed closures in 2020 alone provide a concrete realism that the supply will contract.\nOur goal is to generate $150 million to $200 million in proceeds from asset sales to pay down our senior credit facility.\nThe 6 recently announced asset sales will generate net proceeds of approximately $191 million.\nThe residents in Coconut Grove, Capitol Hill Hotel Washington and Holiday Inn Express Cambridge are all expected to close by the end of the first quarter, while the sale of the Duane Street Hotel is slated to close in early Q2.\nMany of these hotels represented those with capital intensive projects on the horizon and the successful completion of these sales will lower our capex budget by approximately $20 million over the coming years.\nWe transacted at a discount to pre-COVID value, but we focused our sales on mature hotels, hotels that we don't for nearly 10 years, hotels that would require additional capital investment during the recovery, and the slowest growth hotel in each of our geographic clusters.\nWe were also pleased to announce last week and fund just yesterday our strategic financial commitment with affiliates of Goldman Sachs Merchant Bank providing a $150 million unsecured term loan, which can be expanded to $200 million.\nAmazon announcing the addition of 3,000 jobs in the Boston Seaport, walking distance from our Envoy Hotel.\nLast week, we announced a strategic financing commitment with affiliates of Goldman Sachs Merchant Bank to provide a $150 million in unsecured notes, which can be upsized to $200 million at any point on or before September 30th of this year with a maturity date on the notes of February of 2026.\nThis capital is unsecured and fully subordinated to our bank facility and allows us to defer cash interest on 50% of our financing for the first year, creating substantial near-term cash savings and providing us additional runway during this period of recovery.\nLast week, we also highlighted that we went under contract to sell two additional hotels, bringing our year-to-date total asset value of disposition to $178.5 million.\nThe successful closing closing of these sales in addition to the Sheraton Wilmington, which closed in December and the Duane Street Hotel, which is expected to close during the second quarter will generate total proceeds of $216 million, and following the repayment of the $25 million mortgage loan on the Capitol Hill Hotel net proceeds from these dispositions will amount to approximately $191 million, which we will utilize in tandem with the proceeds from our unsecured notes to pay off our 2021 term loan and reduce our overall debt by approximately $150 million.\nWith the resulting reduction of overall leverage and the payment in current feature of our unsecured notes we estimate that our cash interest expense will decrease by approximately $4 million in 2021, and that our total interest expense including the deferred interest from the notes will remain similar to our 2020 interest expense.\nWe completed these asset sales and closed on the unsecured notes placement contemporaneously with the amendment of our revolving credit facility, and we're very pleased with the continued support from our consortium of over 15 Bank group members.\nResults at our properties of incrementally improved over the past 6 weeks and ultimately led to the validation of our breakeven forecast during January, in what is seasonally the slowest month of the year our properties generated positive property-level cash flow during the month of January on 40% occupancy with RevPAR levels 60% below January of 2020.\nIn January, 20 of our 36 operational hotels broke even on the GOP line with 14 achieving EBITDA breakeven level.\nThese results represent a 75% increase and 40% increase in properties that broke even on the EBITDA line compared to November and December respectively.\nBased on January's results and our forecast for the first quarter, we are comfortable with our previous estimates that the entire portfolio breaks even at property level with GOP with a 60% RevPAR decline.\nAt the corporate level, our RevPAR breakeven occurs at a 40% decline.\nThe model affords flexibility to continue to operate in current staffing levels at our breakeven occupancies approximating 30% up to 55% to 60% at some of the hotels.\nAs occupancies increased at our hotels we are seeing flow throughs as high as 70% on the GOP line, and as we push both rate and occupancy we anticipate maintaining them for the remainder of the year.\nOur total property-level cash burn for the fourth quarter was $5.9 million and in January the property generated property-level cash flow for the first time since March of last year.\nCorporate cash burn of $4.3 million in January represents a 60% reduction compared to April of 2020 at the depths of the crisis.\nAs you may recall, following our 2016 transaction where we sold a majority of this portfolio and in which we netted a gain of $213 million, we retained a subordinated minority interest in the portfolio, which was junior to thin debt to equity position.\nWe removed these 7 hotels from our portfolio count and they will no longer be part of our operating results after the first quarter.\nWe ended the 4th quarter with $23.6 million in cash and cash equivalents and deposits.\nDuring the quarter we received $8.1 million dollars in business interruption proceeds from Hurricane Irma's impact on our South Florida portfolio, and these receivables had a positive impact on our AFFO performance in the quarter.\nWe spent $4.3 million on capital projects last quarter, bringing our 2020 spend to $26 million, approximately $15 million below our forecast at the beginning of the year.\nOur 2021 capex load will be primarily focused on maintenance capex and life safety renovation, and we anticipate it will be roughly 35% below our 2020 spent.\nAs we have very minimal capex moving forward after the $200 million we have spent on capital projects since 2017 and the recent disposition of lower growth, higher cost hotels our portfolio will experience very little disruption or capital spend for the coming years.\nThese actions increased our weighted average debt maturity to 3.6 years and resulted more than 88% of our debt being either fixed or swapped.", "summaries": "The residents in Coconut Grove, Capitol Hill Hotel Washington and Holiday Inn Express Cambridge are all expected to close by the end of the first quarter, while the sale of the Duane Street Hotel is slated to close in early Q2.\nWe ended the 4th quarter with $23.6 million in cash and cash equivalents and deposits.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "Revenue growth of 8% and increase in adjusted diluted earnings per share of 15% highlighted the robust demand for our best-in-class integrated risk assessment offerings.\nAdditionally, we've raised our adjusted diluted earnings per share guidance to be in the range of $11.55 to $11.85.\nMIS revenue grew 4%.\nThat's despite the tough prior year comparable, while MA achieved its highest ever quarterly revenue, up 15% from last year.\nOn an organic constant currency basis, MA revenue increased 8%.\nMoody's adjusted operating income rose 12% to $861 million, and the adjusted operating margin expanded 200 basis points to 55.4%.\nAdjusted diluted earnings per share was $3.22, up 15%.\nAlthough overall issuance declined by 16%, as you can see on the chart, second quarter issuance was still well above the historical 10-year average as shown on the blue line.\nAnd in the second quarter, transactional MIS revenue grew 3%, while MIS rated issuance declined 16%.\nAnd you can see that issuance was down 68% in the second quarter versus the prior year.\nHowever, leveraged loans, which has a greater proportion of issuers on per issuance or pay-as-you-go commercial programs, represented by the dark blue bubble on the far right, saw issuance up over 200%.\nOur emphasis on renewable sales has increased the proportion of recurring revenue by four percentage points in the trailing 12-month period to 92%.\nOur industry-leading product offerings and solutions leverage information on hundreds of millions of entities and ownership structures as well as detailed profiles on over 13 million politically exposed individuals.\nWe further expanded our capabilities to include asset and liability management and balance sheet solutions, portfolio analytics and other tools to help address new accounting standards such as IFRS 17 and CECL.\nTogether, this has contributed to our ability to deliver 20% organic revenue growth over the trailing 12 months in this segment.\nThis offering combines Moody's ESG scoring methodology with company-specific data and predictive analytics to produce ESG scores for over 140 million small- and medium-sized enterprises.\nAnd since 2012, we provided hundreds of second-party opinions across 30 countries with over 60 second-party opinions provided just in the first half of this year.\nI'm pleased that we ranked number two on Chartis' STORM Top 50, demonstrating our position at the forefront of digital transformation in our sector.\nI'm also enormously proud that Moody's was named a Top 50 Company for Diversity by DiversityInc.\nAnd finally, I'm thrilled that Moody's joined the Fortune 500 earlier this quarter.\nIn the second quarter, MIS revenue increased 4%, supported by a 3% rise in transaction revenue, while global MIS rated issuance declined 16%.\nAs a result of favorable mix, corporate finance revenue declined 4% versus a 26% decrease in issuance.\nFinancial institutions revenue rose 6%, above the 1% increase in issuance.\nRevenue from public, project and infrastructure finance declined 2% compared to a 45% decrease in issuance as increased non-U.S. project and infrastructure activity was offset by a reduction in U.S. infrastructure supply.\nStructured finance revenue increased 73%, supported by an over 200% growth in issuance.\nThis is due to approximately 200 CLO deals this quarter, our highest on record, predominantly attributable to refinancing activity.\nMIS' adjusted operating margin expanded 230 basis points to 66.3%.\nSecond quarter revenue rose 15% or 13% on an organic basis.\nIn RD&A, revenue increased 19% or 16% on an organic basis.\nFor ERS, recurring revenue rose 16%, driving overall ERS growth of 5% or 3% organically.\nThis reflected the demand for our insurance and asset management offerings, tools supporting upcoming accounting standards implementations such as IFRS 17 as well as our SaaS-based credit assessment and origination solutions.\nAdditionally, ERS' recurring revenue comprised 88% of second quarter revenue, up eight percentage points from the prior year period.\nMA's adjusted operating margin expanded 310 basis points to 31.8%.\nOur full year 2021 guidance is underpinned by the following macro assumptions: a rise in the 2021 U.S. and euro area GDP to a range of 6% to 7% and 4% to 5%, respectively; benchmark interest rates will remain low, with U.S. high-yield spreads remaining below approximately 500 basis points; the U.S. unemployment rate will decline to under 5% by year-end; and the global high-yield default rate will fall below 2% by year-end.\nSpecifically, our forecast for the balance of 2021 reflects U.S. exchange rates for the British pound of $1.38 and $1.19 for the euro.\nGiven our improved revenue outlook and expense stability, we now project Moody's adjusted operating margin to be approximately 51%.\nWe raised the diluted and adjusted diluted earnings per share guidance ranges to $10.95 to $11.25 and $11.55 to $11.85, respectively.\nWe increased our free cash flow forecast to be between $2.2 billion and $2.3 billion.\nAnd we anticipate full year share repurchases to remain at approximately $1.5 billion subject to available cash, market conditions and other ongoing capital allocation.\nWe are raising our issuance forecast for leveraged loans to be up approximately 75% and for high-yield bonds to be up approximately 25%.\nThese are meaningful increases compared to our prior outlook of up 55% and approximately flat, respectively, and is the result of better-than-expected second quarter issuance as well as ongoing favorable refinancing conditions and heightened M&A activity.\nWe expect that the increase in leveraged loan supply will continue to drive CLO creation and are therefore also improving the structured issuance outlook to be up approximately 75%.\nFollowing a very active 2020, full year investment-grade supply is now forecast to decrease by approximately 40%.\nThat's slightly lower than our previous guidance, which anticipated volumes to decline 30%.\nAlso, after a surge in activity in the second quarter, we are increasing our guidance for new mandates to be in the range of 950 to 1,050.\nMIS' adjusted operating margin guidance remains at approximately 61% as our improved top line outlook is partially offset by higher incentive compensation accruals and an acceleration in ESG, technology and automation investments in the second half of the year.\nWe are raising MA's adjusted operating margin guidance to be in the range of 30% to 31% as we continue to effectively manage our expense base while accelerating strategic investment back into the business.", "summaries": "Adjusted diluted earnings per share was $3.22, up 15%.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "This quarter, delivering an 84% improvement in adjusted EBITDA.\nImportantly, North America returns to profitability and generated $4.8 million in operating income in an unprecedentedly tough market.\nTurning to slide 8; reported net sales decreased 16.8% and constant currency net sales decreased 12.9%, primarily driven by growth in respiratory and more than offset by declines in Mobility and Seating and non-bed lifestyle products.\nGross profit increased 130 basis points to 28.9%, primarily due to favorable product mix and lower material and freight costs, partially offset by unfavorable foreign exchange.\nConstant currency SG&A decreased 13.2% or $8.8 million, driven by reduced employment costs and lower commercial expenses.\nOperating loss improved by $2.3 million, driven by reduced SG&A expenses, partially offset by lower net sales and higher restructuring costs.\nAdjusted EBITDA was $6.6 million, up nearly 84% driven by reduced SG&A expense and improved gross profit as a percentage of sales.\nThe company's free cash flow usage was $1.9 million, an increase of $2.1 million, due to higher capital expenditures.\nAs a result, reported net sales in Europe decreased 24%, and constant currency net sales decreased 20.7%, driven by declines in sales in Mobility and Seating and non-bed lifestyle product.\nGross profit decreased 90 basis points, driven by unfavorable product mix.\nOperating income decreased $3.3 million, due to reduced gross profit from the lower net sales and unfavorable foreign exchange, partially offset by reduced SG&A expenses and a gain recognized on the sale of a German facility.\nReported net sales decreased 3.3% and constant currency net sales decreased 3%, with growth in respiratory products more than offset by declines in Mobility and Seating and non-bed lifestyle products.\nWithin Mobility and Seating, higher value power mobility products were resilient, only experiencing a slight decline of 1%.\nGross profit increased 230 basis points or $2.4 million, driven by favorable product mix and lower operational cost, including reduced material and freight costs as a result of previous transformation initiatives.\nThe North America segment returned to profitability, with operating income of $4.8 million, an improvement of $6.1 million driven primarily by lower SG&A expenses primarily in employment costs and the benefit of reduced operational costs.\nTurning to slide 12; All Other, which comprises the sales in the Asia-Pacific region, increased by 8.1% on a constant currency basis, driven by higher sales of lifestyle and Mobility and Seating products.\nOperating loss increased by $300,000, driven by higher corporate SG&A expense, primarily related to equity compensation, partially offset by improved operating income in the Asia-Pacific business, attributable to lower SG&A expense.\nMoving to slide 13; as of June 30, 2020, the company had total debt of $319 million, excluding operating lease obligations of $15.9 million, capitalized on the balance sheet.\nAt the end of the quarter, the company had approximately $104 million of cash on its balance sheet.\nBased on the loosening of public health restrictions and renewed access to healthcare facilities, the company anticipates reported net sales in the range of $810 million to $840 million.\nAdjusted EBITDA, similar to the prior year in the range of $20 million to $30 million, and free cash flow usage, in line with the prior year in the range of $7 million to $10 million.", "summaries": "Based on the loosening of public health restrictions and renewed access to healthcare facilities, the company anticipates reported net sales in the range of $810 million to $840 million.\nAdjusted EBITDA, similar to the prior year in the range of $20 million to $30 million, and free cash flow usage, in line with the prior year in the range of $7 million to $10 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "For the first quarter, organic sales were down 10% compared to a year ago as a result of lower volumes at Aerospace.\nEarnings per share were $0.38, down 46% from last year's adjusted $0.71, so firmly exceeding the high end of our February expectation.\nFor the segment, orders were up 25% organically, with a book to bill of approximately 1.1 times.\nSequential orders were up 7% further exemplifying the momentum we're seeing.\nAnd despite the semiconductor issue that's impacting automotive bills, IHS still predicts 2021 global production to be up 12% over last year.\nWithin the segment, our Molding Solutions business had strong orders across all brands, up 35% organically.\nOur larger end markets, automotive, medical, packaging and personal care, each saw in excess of 25% orders growth, some well above that.\nBook-to-bill was approximately 1.1 times.\nBacklog, which is predominantly our longer cycle mold systems, grew by approximately 25% year-over-year and low double digits from the fourth quarter of 2020.\nEngineered Components generated organic orders growth in excess of 25% and organic revenue growth in the low double digits.\nAs a result of this issue, we estimate a first quarter impact of approximately $1 million, with the second quarter impact likely to be in the range of $4 million to $5 million before recovering in the second half.\nWe now expect 2021 to deliver total growth of 20%, with organic growth in the mid-teens, again, better than our February expectation.\nOverall, for the Industrial segment, we see 2021 organic growth in the mid-teens, with operating margins of approximately 13%.\nOur Aerospace business experienced continuing impact from the pandemic as OEM sales were down 32% from the prior year and aftermarket sales were down 48%, not surprising as commercial aviation remain significantly disrupted.\nWe did see a second consecutive quarter of good orders and OEM book-to-bill was approximately 1.5 times.\nFor example, in the first few months of the year, we completed an extension of our West Chester, Ohio facility, expanding our capabilities, received supplier recognitions from Boeing and Rolls-Royce and announced a significant B-2 Bomber Exhaust System Contract award from Northrop Grumman.\nSegment operating margin is anticipated to be approximately 13%.\nFirst quarter sales were $302 million, down 9% from the prior year period with organic sales declining 10% as ongoing impacts from the pandemic offset our Aerospace end markets.\nThe divested Seeger business had a negative impact of 2% on sales, while FX had a positive impact of 3%.\nOperating income was $32.4 million versus $49.3 million a year ago.\nCompared to last year's adjusted operating income of $51.7 million, the first quarter was down 37% and operating margin of 10.7%, decreased 490 bps from last year's adjusted 15.6%.\nInterest expense was $3.9 million, a decrease of $400,000 as a result of lower average borrowings, offset in part by a higher average interest rate.\nFor the quarter, our effective tax rate was 28.1%, lower than last year's 31.5% tax rate.\nNet income was $19.4 million or $0.38 per diluted share, compared to $29.7 million or $0.58 per diluted share a year ago.\nOn an adjusted basis, net income per share was down 46% from last year's $0.71.\nLast year's first quarter adjusted net income per diluted share excluded $0.13 of Seeger divestiture adjustments.\nFirst quarter sales were $220 million, up 10% from a year ago.\nOrganic sales increased 8%.\nThe foregone sales from the Seeger divestiture had a negative impact of 3%, while favorable FX primarily driven by the euro to US dollar exchange increased sales by 5%.\nRelative to the fourth quarter of 2020, sequential sales were up 5%.\nIndustrial's operating profit for the first quarter was $21.3 million versus $17.9 million in the prior year period.\nOn an adjusted basis, which excludes $2.4 million of Seeger divestiture adjustments last year, first quarter operating income was up 5% from last year's $20.3 million.\nCompared to a year ago, adjusted operating margin was down 50 bps from 10.2%.\nIn the first quarter, we experienced approximately $1 million of combined freight and material inflation in the Industrial segment.\nFor the full year, we expect an impact of about $6 million, which is built into our outlook.\nMoving to Aerospace, sales were $82 million for the first quarter, down 38% from last year.\nOperating profit of $11.1 million was down 65%, primarily driven by the lower sales volume.\nOperating margin was 13.6%, versus a strong 23.9% a year ago.\nAerospace OEM backlog ended the quarter at $600 million, up 5% from the fourth quarter and we expect to ship 45% of this backlog over the next 12 months.\nFirst quarter cash provided by operating activities was $36 million, a decrease of $12 million versus a year ago, free cash flow was $28 million, versus $35 million last year, and capital expenditures of $8 million were down about $4 million from a year ago.\nRegarding the balance sheet, our debt-to-EBITDA ratio, as defined by our credit agreement, was 3.1 times at quarter end, essentially flat to the prior quarter result.\nOur first quarter average diluted shares outstanding was 51 million shares.\nWe now expect organic sales to be up 10% to 12% for the year, an increase from our prior view of up 6% to 8%, driven by stronger industrial growth.\nFX is expected to have a 2% favorable impact on sales, while divested revenue -- divested Seeger revenues will have a small negative impact.\nOperating margin is forecasted to be approximately 13%.\nEPS is expected to be in the range of $1.78 to $1.98, up 9% to 21% from 2020's adjusted earnings of $1.64, that expectation is an increase from our prior view of $1.65 to $1.90, and we expect the first half of the year to contribute approximately 43% of 2021's earnings.\nInterest expense is anticipated to be approximately $16 million, while other expense is forecasted at [Phonetic] $8 million, both a bit better than our prior view.\nWe now expect capex to be approximately $50 million, down $5 million, average diluted shares of 51 million and cash conversion of over 100% are consistent with our prior outlook.\nAnd lastly, we forecast a full year tax rate of approximately 30%.", "summaries": "Earnings per share were $0.38, down 46% from last year's adjusted $0.71, so firmly exceeding the high end of our February expectation.\nFirst quarter sales were $302 million, down 9% from the prior year period with organic sales declining 10% as ongoing impacts from the pandemic offset our Aerospace end markets.\nNet income was $19.4 million or $0.38 per diluted share, compared to $29.7 million or $0.58 per diluted share a year ago.\nCompared to a year ago, adjusted operating margin was down 50 bps from 10.2%.\nWe now expect organic sales to be up 10% to 12% for the year, an increase from our prior view of up 6% to 8%, driven by stronger industrial growth.\nEPS is expected to be in the range of $1.78 to $1.98, up 9% to 21% from 2020's adjusted earnings of $1.64, that expectation is an increase from our prior view of $1.65 to $1.90, and we expect the first half of the year to contribute approximately 43% of 2021's earnings.\nWe now expect capex to be approximately $50 million, down $5 million, average diluted shares of 51 million and cash conversion of over 100% are consistent with our prior outlook.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n1\n0"}
{"doc": "For the second quarter, I'll start at Slide 8, our net income decreased by $11.7 million to $5.3 million and that is a difference from a $0.35 gain in the second quarter of 2019 to an $0.11 gain in the second quarter of 2020, is that we had no rate relief from the California Commission.\nThere is a total of $29.1 million that we believe would have been achieved versus additional pre-tax income if the Commission has rendered a decision on a favorable basis to the Company.\nAnd of that, for the second quarter, $10.9 million represents the pure delay of -- resulting from the settlement agreement that the Company filed with the consumer advocate back in October of 2019.\nAnd then $18.2 million, which represents income from our disputed cost recovery regulatory mechanisms and those, remember, are mechanisms that we've had for many years, first of all, to decouple our sales from revenue.\nAnd had we recorded them in the quarter, we estimate an additional revenue of -- would have been $18.2 million.\nWe had $6.5 million of increased water production expenses, of which $5.7 million would have been offset by those regulatory mechanisms and we had $2.1 million of increased pension benefit expenses which also would have been offset by those regulatory mechanisms, had they have been in place.\nOther factors for the quarter, we saw a rebound in our unrealized benefit plan investment performance that was $3 million higher than in the second quarter of 2019.\nSo it was up $2.2 million in the second quarter and that's related to increased plant investments in 2019, and we did have an increase in our maintenance costs of about $1 million.\nSo, our net income decreased by $24.4 million to a loss of $15 million on a year-to-date basis.\nIn terms of earnings per share, we have a loss of $0.31 per year to date as compared to a gain of $0.19 in 2019.\nBut, again, the two factors related to the rate case, we believe that had a rate case been adopted and it was favorable to the Company on these matters, the $19.8 million representing the delay of the settlement agreement amounts and $26 million related to our regulatory balancing accounts that we've been discussing.\nFor the year-to-date basis, our unrealized benefit plan investment performance was $4 million lower than in the first half of 2019 and that's really due to a comparatively strong market conditions in the first quarter of 2019.\nWe see depreciation expense increase $4.3 million and maintenance expense increase $1.6 million.\nAs shown in the table on that chart, we believe the benefit is between $38.9 million at $42.2 million on an annual basis.\nOur 2020 sales forecast, as we mentioned in last quarter, are about 7% lower than the 2019 adopted sales.\nAnd, as I mentioned earlier, we would have been allowed to record additional revenue of $5.6 million to $10.9 million in the second quarter if the settlement had have been adopted, with the low end of the revenue range linked with $5.2 million reduction in depreciation expense.\nI just wanted to point out that -- the two things that are the WRAM and the MCBA, we believe that on the -- in the second quarter, that's about $14.9 million that would have been recorded in those balancing accounts and the pension and medical cost balancing accounts, we believe, would have been $3.3 million.\nIt certainly has been an interesting second quarter dealing with the COVID-19 pandemic as, I think most people know, utility workers are considered essential workers, and therefore, most of our employees, 90%-plus of our employees have been at work, in the field every day.\nAs you may recall, the Company allocated $0.5 million for charitable contributions.\nAnd remember, this is due in part to the increased unemployment rate and also in part to the regulatory commissions telling us that we can't have collection activity.\nOur bills that are outstanding more than 90 days and those are the bills that would normally have been sent to collection, those bills increased to $3.4 million.\nThis is the bad debt reserve balance for doubtful accounts from $0.8 million to $1.6 million as of the end of the second quarter.\nAnd in the second quarter, we recorded approximately $600,000 of incremental operating expenses to the memorandum account.\nIn addition to the $600,000 of incremental operating expenses, when we do have bad debts and those do go to collection at the end of this period that will be included in our request to the Commission for recovery.\nAt the end of June, at the end of the quarter, we had $114 million in cash and additional current capacity on our lines of credit of more than $170 million.\nJust to remind everyone, California has Ag business that's over $60 billion.\nIt's the largest Ag state in the Union and we're growing in population from almost 40 million to 45 million over the next decade.\nWe have a lot of efforts focused on basically asking for a halt to get more evidence on the record and to have a full examination of all the data that's available for the last 12 years of decoupling.\nLooking at the capital investments for the quarter, and this, frankly, was a highlight with everything going on that's been kind of negative news, it's nice to see that our capital program was up 9.5% compared to the same period last year.\nSo we had $133.5 million invested in the first half of 2020.\nThe Company previously estimated it would spend between $260 million and $290 million in capital during 2020.\nIn addition, we've added an incremental $5 million in capital investment for our Rainier View acquisition that closed during the second quarter.\nYou'll see -- you see in the slides that Rainier View added approximately 18,500 customers, the Kalaeloa system will add about 200 customers, and per the history of us [Phonetic], that's the -- a former Barbers Point air base on O'ahu that's going to be redeveloped into residential and commercial properties.\nSo, you add those up, closing out the two in Hawaii, that would add just under 4% to our total customer connection count for the year of 2020 which we think is very healthy, given all we've been dealing with the pandemic and everything else.\nSo on the capital investment history slide, which is Slide 19, we did update our 2021 projection to include an additional $5 million of investment in former Rainier View Water.\nI will add and apologies that it's not in the deck, but you'll notice on Slide 20, we have -- the third row is called advice letters included in the settlement of about $150 million that's the California settlement.\nThis is a 96 point -- I think it's a $96 million authorized advice letter for that very large project -- the largest project in the Company's history, and we did make that advice letter filings.", "summaries": "For the second quarter, I'll start at Slide 8, our net income decreased by $11.7 million to $5.3 million and that is a difference from a $0.35 gain in the second quarter of 2019 to an $0.11 gain in the second quarter of 2020, is that we had no rate relief from the California Commission.\nAnd remember, this is due in part to the increased unemployment rate and also in part to the regulatory commissions telling us that we can't have collection activity.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "IDACORP's 2021 second quarter earnings per diluted share were $1.38, an increase of $0.19 per share from last year's second quarter.\nEarnings per diluted share over the first six months of 2021 were $2.27, which were $0.33 above the same period last year.\nToday, we also increased our full year 2021 IDACORP earnings guidance estimate to be in the range of $4.70 to $4.90 per diluted share, with our expectation that Idaho Power will not need to utilize in 2021, any of the additional tax credits that are available to support earnings under its Idaho of regulatory settlement stipulation.\nYou'll see on Slide five that the growth remained strong in the second quarter, increasing 2.9% since June 2020.\nAs of the end of June, unemployment in our service area was 3.5% compared with 6% in June 2020 and the current mark of 5.9% nationally.\nTotal employment in our service area has increased 6% over the past 12 months.\nMoody's forecasted GDP calls for very strong economic growth of 7.6% in 2021 and 6.9% in 2022.\nAnd just this past week, Lamb Weston announced a $415 million investment in the planned construction of a new French fries processing line at its existing facility in American Fall with expected capacity to produce more than 350 million pounds of frozen French fries and other potato products annually by mid-2023.\nThis expansion is expected to add approximately 130 jobs.\nCurrent weather projections for August through October shows 50% to 60% chance of above-normal temperatures and a 33% to 50% chance of below-normal precipitation in Idaho Power service area.\nIdaho Power hit a new all-time peak load of 3,751 megawatts on June 30, and we have exceeded the previous 2017 peak demand of 3,422 megawatts, more than 60 separate hours on 12 different days so far this summer.\nAnd our company also recently issued a request for proposal to add another 80 megawatts of a capacity resource to meet peak energy needs by summer 2023.\nB2H will allow Idaho Power to import up to 500 megawatts, which will help meet customers' peak summer demand and increased reliability for our system as well as the region.\nOur Idaho rates currently reflect a recovery time line through 2034, but preliminary analysis indicate the potential exit of all four units at the plant sooner than the current time line.\nIf our filing with the Idaho Commission is approved as filed, rates would increase $30.8 million in December of this year.\nExiting the Jim Bridger plant early also aligns with our goal to provide 100% clean energy by 2045.\nOn our last earnings call, I stated Idaho Power did not plan to make -- do not plan to file a general rate case in Idaho or Oregon in the next 12 months.\nI also commend them for their resilience over the past 17 months as we navigate the challenges of the pandemic together.\nOn the table of quarter-over-quarter changes, you'll see our continuing customer growth added $3.9 million to operating income.\nAlso, increased usage per customer drove operating income higher by $22.9 million.\nIrrigation and residential per customer usage increased 25% and 10%, respectively.\nA return to more normal economic conditions combined with the hot weather also drove a respective 12% and 8% increase in usage per customer in the commercial and industrial classes.\nContinuing down the table, the higher usage for residential and small general service customers was partially offset by $5.1 million lower revenues from the PCA -- or the FCA mechanism.\nNext, you'll see a decrease in operating income of $6.8 million that relates to the change in the per megawatt hour revenue, net of power supply costs and power cost adjustment impacts quarter-to-quarter.\nRecall that Idaho customers generally bear 95% of power supply cost fluctuations.\nThe heatwave also affected transmission wheeling-related revenues, which increased operating income by $3.9 million.\nIn addition, wheeling customers paid 10% more for Idaho Power's open access transmission tariff rate that increased last October to reflect higher transmission costs.\nNext on the table, other operating and maintenance expenses increased by $5.3 million.\nFinally, our higher pre-tax earnings led to an increase in income tax expense of $4.2 million this quarter.\nThe changes collectively resulted in a net increase to Idaho Power's net income of $9.6 million, or $0.19 per share.\nCash flows from operations were about $39 million higher than the first six months of last year.\nWe now expect IDACORP's 2021 earnings to be in the range of $4.70 to $4.90 per diluted share.\nRecall that above a 10% return on equity in the Idaho jurisdiction, Idaho customers would receive 80% of any excess earnings.\nOur expected full year O&M expense guidance remains in the range of $345 million to $355 million.\nWe also reaffirm our capex forecast for this year in the range of $320 million to $300 million -- $330 million, excuse me.", "summaries": "IDACORP's 2021 second quarter earnings per diluted share were $1.38, an increase of $0.19 per share from last year's second quarter.\nToday, we also increased our full year 2021 IDACORP earnings guidance estimate to be in the range of $4.70 to $4.90 per diluted share, with our expectation that Idaho Power will not need to utilize in 2021, any of the additional tax credits that are available to support earnings under its Idaho of regulatory settlement stipulation.\nWe now expect IDACORP's 2021 earnings to be in the range of $4.70 to $4.90 per diluted share.", "labels": "1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "First quarter organic net revenue growth was 1.9%.\nThat reflects solid performance in the U.S., an organic decrease of 20 basis points, and strong international growth of 6.3%, with increases in every world region.\nIn the U.S., you'll recall that we are comparing to very strong underlying performance in the first quarter of 2020 when we faced headwinds of nearly 4% due to certain 2019 client losses that we previously identified.\nOur international performance was paced by 12.4% growth in Continental Europe, where we had a strong start to the year by our media, data and tech offerings as well as McCann Worldgroup.\nFrom the standpoint of our operating segments, Our IAN segment grew 3.2% organically, led by media, data and technology and by the healthcare specialty agencies.\nWe continue to be highly confident that, over time, we are well positioned to realize the full level of permanent operating expense savings that we've talked about previously, which, as a reminder, annualized at $160 million.\nOur first quarter net income as reported was $92 million, which includes the expense of certain nonoperating items.\nOur adjusted EBITA was $266 million, a level which is approximately 2.5 times the first quarters of recent years.\nOur adjusted EBITA margin was 13.1%.\nDiluted earnings per share was $0.23 as reported and was $0.45 as adjusted mainly for our loss on the early extinguishment of debt, the disposition of certain small nonstrategic agencies, both of which are nonoperating expenses, and our expense for the amortization of acquired intangibles.\nGiven our strong start to the year, and based on the assumption that there'll continue to be a reasonably steady course of public health and global economic recovery, we believe that we can deliver organic growth for the full year in the range of 5% to 6%.\nWith that level of growth, we would expect to achieve 2021 adjusted EBITA margin of approximately 15.5%.\nFirst quarter adjusted EBITDA, before a small restructuring adjustment, was $265.9 million and margin was 13.1%.\nDiluted earnings per share was $0.23 as reported and $0.45 as adjusted.\nDuring the quarter, we refinanced $1 billion of senior notes that had been scheduled to mature over the next few years.\nWe placed the $1 billion in new notes maturing in 10- and 20-year tranches.\nOur net revenue in the quarter was $2.03 billion, an increase of $55.6 million.\nCompared to Q1 2020, the impact of the change in exchange rates was positive 1.5%, with the dollar weaker against currencies in most of our largest markets.\nNet divestitures were negative 60 basis points.\nOur organic net revenue increase was 1.9%.\nOur IAN segment was -- grew 3.2% organically, a terrific result against last year, largely non-COVID first quarter.\nAt IPG DXTRA, the organic change in the quarter was negative 4.8%, which reflects the weight of live events and sports marketing within the segment, the disciplines that have been most significantly impacted by the pandemic.\nIn the U.S., which was 65% of net revenue in the quarter, our organic decrease was 20 basis points against the challenging comparisons underlying our headline number from a year ago.\nInternational markets were 35% of our net revenue in the quarter and increased 6.3% organically.\nContinental Europe grew 12.4%, with increases in every major national markets, including Spain, Germany, Italy and France, driven by increased spend from existing clients.\nThe U.K. increased 3.5% organically and, again, this is net of continuing headwinds in the events discipline We had solid growth at McCann at our media, data and tech offerings and at MullenLowe.\nAsia Pac grew 3.4% organically.\nOur organic growth in LatAm was 5%, with particularly strong results across Mexico, Colombia, Argentina and Chile.\nOur Other Markets group grew 7.3%, with notably strong performance in the Middle East.\nOur net operating expenses, excluding billable expenses and the amortization of acquired intangibles, decreased 6% from a year ago and to 2.8% growth of our net revenue.\nThe result was first quarter margin expansion to 13.1% from 4.9% a year ago.\nAs you can see on this slide, our ratio of total salaries and related expense as a percentage of net revenue improved by 340 basis points to 68.7% compared with 72.1% a year ago.\nUnderneath that, we drove very strong leverage on our expense for base payroll, benefits and tax, which improved by 360 basis points.\nWe had a lower severance expense ratio, which was only 30 basis points of net revenue compared to 120 basis points in Q1 2020.\nAt quarter end, total worldwide headcount was approximate 51,200, a decrease of 6.1% from a year ago as a result of our restructuring and regular severance actions taken over the course of last year as well as our business dispositions.\nAlso on this slide, our office and other direct expense decreased as a percentage of net revenue by 480 basis points to 14.4%.\nWe continue to have significant decreases in our expenses for occupancy, driving year-on-year leverage of 110 basis points.\nWe leveraged all other office and other direct expense by 370 basis points, which includes the decreased expense for travel and bad debt.\nOur SG&A expense was 1.4% of net revenue, an increase of 30 basis points.\nOur expense for the amortization of acquired intangibles in the second column was $21.6 million.\nThe restructuring charges were $1.3 million.\nBelow operating expenses, in column 3, we had a pre-tax loss in the quarter of $12.5 million in other expenses due to the disposition of a few small nonstrategic businesses.\nTo the right of that, our pre-tax loss due to the early extinguishment of debt was $74 million, which relates to the refinancing and extending the maturities of $1 billion of our senior notes.\nAt the front of the slide, you can see the after-tax impact per diluted share of each of these adjustments, which bridges our diluted earnings per share as reported at $0.23 to adjusted earnings of $0.45 per diluted share.\nCash used in operations was $249.8 million compared with the use of $277.1 million in Q1 2020.\nDuring this year's first quarter, cash used in working capital was $496.9 million and follows our fourth quarter of last year, where we generated over $1 billion from working capital.\nIn our investing activities, we used $28 million for capex in the quarter, which was essentially offset by the net proceeds from the sales of investments.\nOur financing activities in the quarter is $212.7 million, which reflects the redemption and issuance of long-term debt and our common stock dividends.\nOur net decrease in cash for the quarter was $492.7 million.\nWe ended the quarter with $2.02 billion of cash and equivalents compared with $1.55 billion a year ago.\nUnder current liabilities, the current portion of long-term debt refer to our $500 million, 3.75% senior notes, which matures in October of this year.\nAgain, we have the maturity in October this year and then only $250 million due in April 2024.\nWe've increasingly seen the amounts of time people spend online, picking out content that's engaging, informative, entertaining, or some combination of all 3.\nSince the start of the year, we onboarded or promoted top talents across the organization, once again received high levels of industry recognition and saw solid new business performance, where we remain net positive for the past 12 months.\nAlong with most awarded networks of 2020 in the Drum rankings, McCann New York came in at number four on that list in terms of the top 100 agencies worldwide.\nLooking forward, we will stay focused on unlocking the enormous opportunities that exist due to the changes and disruptions that have accelerated during these past 12 months.", "summaries": "Diluted earnings per share was $0.23 as reported and was $0.45 as adjusted mainly for our loss on the early extinguishment of debt, the disposition of certain small nonstrategic agencies, both of which are nonoperating expenses, and our expense for the amortization of acquired intangibles.\nWith that level of growth, we would expect to achieve 2021 adjusted EBITA margin of approximately 15.5%.\nDiluted earnings per share was $0.23 as reported and $0.45 as adjusted.\nOur net revenue in the quarter was $2.03 billion, an increase of $55.6 million.\nAt the front of the slide, you can see the after-tax impact per diluted share of each of these adjustments, which bridges our diluted earnings per share as reported at $0.23 to adjusted earnings of $0.45 per diluted share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "It was a successful year across EnPro as we continue to rise to the occasion to meet the challenges and opportunities that have arisen over the past 12 months.\nFor the year, sales grew 6.3% to $1.14 billion.\nOrganic sales grew 14.4%.\nAdjusted EBITDA of $208.4 million, increased by 23.8% compared to 2020.\nAdjusted EBITDA margin of 18.3%, increased 260 basis points, driven primarily by organic sales increases.\nFurther, we expect to maintain our strong recurring revenue streams with aftermarket revenue across our businesses approaching 50% of total company revenue.\nAs reported, sales of $280.8 million in the fourth quarter, increased 1.7% year over year.\nOrganic sales for the fourth quarter increased 10.4% compared to the fourth quarter of 2020.\nAdjusted EBITDA of $47.7 million, decreased 0.8% compared to the prior-year period.\nCorporate expenses of $26.9 million in the fourth quarter of 2021 were up from $10.6 million a year prior, driven primarily by acquisition-related expenses associated with the NxEdge transaction, as well as increased incentive compensation expenses, driven mainly by our fourth quarter share price performance.\nAdjusted diluted earnings per share of $1.23 was essentially flat compared to the prior-year period.\nSuch amortization -- amortization of acquisition-related intangible assets in the fourth quarter was $12.7 million, compared to $10.9 million in the prior-year period, reflecting the additions of Alluxa and NxEdge.\nDue to the impact of divestitures, Sealing Technology sales of $143.9 million, decreased 7% versus the prior year.\nExcluding the impact of divested businesses and foreign exchange translation, sales increased 12% versus the prior-year period, driven primarily by strong demand in heavy-duty truck, aerospace, nuclear, and food and pharma markets.\nAlso due to businesses divested in 2020 and 2021, adjusted segment EBITDA decreased 12.3% versus the prior-year period.\nExcluding the impact of divestitures and foreign exchange translation, adjusted segment EBITDA increased 3% compared to the prior-year period.\nFourth quarter sales of $69.1 million, increased 38.5% versus the prior-year period, driven by strong demand in the semiconductor market and the acquisitions of Alluxa and NxEdge.\nExcluding the impact of acquisitions and foreign exchange translation, sales increased 16.6% versus the prior-year period.\nFor the fourth quarter, adjusted segment EBITDA increased 35.7% versus the prior-year period, driven by the acquisitions and strong organic sales growth.\nExcluding the impact of the acquisitions and foreign exchange translation, adjusted segment EBITDA increased 10.4% compared to the prior-year period.\nIn Engineered Materials, sales decreased 7.3% versus the prior-year period, driven by the divestitures of the GGB bushing block and CPI businesses.\nFourth quarter adjusted segment EBITDA decreased 21.9% versus the prior-year period, driven by raw material inflation and supply chain headwinds, as well as the decline in automotive production in Europe and the United States.\nExcluding the impact of divestitures and foreign exchange translation, adjusted segment EBITDA decreased by a comparable amount around 20.2% compared to the prior-year period.\nWe ended the fourth quarter with cash of $338.1 million, $310 million of which is located outside the United States.\nAt December 31, we had $213.6 million available for borrowing under our revolving credit facility.\nFree cash flow in 2021 was $123.2 million, up from $39.3 million in the prior year, driven by higher operating profits and lower cash taxes resulting from a tax refund associated with a federal income tax audit resolution, partially offset by working capital investments supporting stronger demand.\nDuring the fourth quarter, we paid a $0.27 per share quarterly dividend.\nFor the year, dividend payments totaled $22.4 million.\nOur board of directors voted to increase our quarterly dividend to $0.28 per share effective with the March payment representing our 7th consecutive annual increase in our quarterly dividend since we began paying dividends in 2015.\nTaking into consideration all the factors that we know at this time, we expect low double-digit revenue growth over reported 2021 sales of $1.14 billion and we expect adjusted EBITDA to be in the range of $263 million to $275 million, implying adjusted EBITDA margins north of 20%.\nFurther, we expect adjusted diluted earnings per share from continuing operations to be in the range of $6.70 to $7.25 using a normalized 27% tax rate, reduced from 30% last year.\nThe reduction in our normalized tax rate assumption for 2022 results from the portfolio actions completed late in 2021 which tilt our portfolio to a higher portion of earnings in the United States.\nOur guidance assumes depreciation and amortization expense, excluding amortization of acquisition-related intangible assets of $37 million to $39 million and net interest expense of $30 million to $33 million.\nOur 2022 guidance implies adjusted EBITDA margins around 21%, up from the 14% in 2019 when we first began our portfolio reshaping strategy.", "summaries": "As reported, sales of $280.8 million in the fourth quarter, increased 1.7% year over year.\nAdjusted diluted earnings per share of $1.23 was essentially flat compared to the prior-year period.\nTaking into consideration all the factors that we know at this time, we expect low double-digit revenue growth over reported 2021 sales of $1.14 billion and we expect adjusted EBITDA to be in the range of $263 million to $275 million, implying adjusted EBITDA margins north of 20%.\nFurther, we expect adjusted diluted earnings per share from continuing operations to be in the range of $6.70 to $7.25 using a normalized 27% tax rate, reduced from 30% last year.\nThe reduction in our normalized tax rate assumption for 2022 results from the portfolio actions completed late in 2021 which tilt our portfolio to a higher portion of earnings in the United States.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0"}
{"doc": "In fact Range's unhedged realized price for the quarter was approximately $3.20 per mcfe, which was $0.51 above the NYMEX Henry Hub equivalent price of $2.69.\nIn fact Range's pre-hedge margin improved by over $1 per mcfe in the first quarter when compared to the 2020 average.\nGiven the improved fundamental backdrop for natural gas liquids with approximately 65% of our activity in the liquids-rich window this year, Range is very well positioned to continue to benefit from this dynamic.\nDuring the quarter, Range was also able to benefit from improved daily prices in the natural gas market, realizing a natural gas differentials that was $0.08 better than the midpoint of guidance only partially offset by higher transportation fuel costs, again benefiting margins and cash flow.\nOn the back with this improved pricing, Range generated $193 million in cash flow from operations before changes in working capital, and with capital spending, coming in at just $105 million for the quarter, Range generated solid free cash flow.\nTouching on the all-in capital investment of $105 million on the quarter, it's clear that the team's operational execution was superb.\nWhen combining our low well costs, strong recoveries, and shallow base decline of under 20%, Range is operating at a high level of capital efficiency that provides a solid foundation for generating sustainable free cash flow, what further differentiate Range is our ability to deliver this level of efficiency for an extended period of time giving our multi-decade core inventory.\nFor some added context on our inventory, Range is turning to sales approximately 60 wells this year, but we have approximately 2,000 Marcellus locations with EURs that are greater than 2 Bcfe per 1,000 foot of lateral.\nFirst quarter capital spending came in at $105 million or approximately 25% of our 2021 program budget.\nOur first quarter production level of 2.08 Bcf equivalent per day was a direct result of recent strong well results combined with exceptional field run time for the quarter due in large part to the near flawless winter operations planning and execution by our production operations team.\nUnderpinning our first quarter production including turning to sales, 16 wells spread across are dry, wet, and super-rich acreage.\nOur Q1 turn-in lines consisted of an average horizontal length in excess of 11,500 feet and added just under 200,000 producing lateral feet to Range's Appalachia assets.\nThe results of these turn-in lines increased Range's average oil production to a level exceeding 8,000 barrels per day in Q1 and, has increased overall liquids production in similar levels seen during the first half of 2020.\nThis level of wet production contribution is expected to continue through the end of this year with second quarter production projected at approximately 2.1 Bcfe per day.\nThis will position us to achieve our 2021 maintenance target of 2.15 Bcfe per day through additional margin enhancing liquids production while spending $425 million or less.\nDuring the first quarter, 15 wells were drilled across our dry, wet, and super-rich footprint.\nFour of these wells are in the top 20 lateral links for Range's Marcellus program history with all four exceeding 17,800 feet.\nDrilling efficiencies continued with nearly three-quarters of the new wells drilled on pads with existing production, coupled with a 5% increase in daily lateral footage drilled compared to 2020.\nOn the completion side, 16 wells were completed during the quarter.\nOverall, the team completed just under 1,200 frac stages while setting a first quarter winter operations efficiency record by averaging over eight frac stages per day.\nThis efficiency level exceeds Range's previous best first quarter in winter operations record by 14%.\nThe water operations team built upon prior water recycling successes by utilizing nearly 2 million barrels of third-party produced water, a first quarter record and as a result, reduced overall completion costs for the quarter by more than $4.5 million.\nLease operating expense for the first quarter was consistent with our prior year's Appalachia level and remained low at $0.09 per Mcfe.\nThese efforts generated a field runtime that exceeded 99% with a weather-related production impact of less than 0.5 million cubic feet per day for the quarter, a remarkable achievement.\nThe average lateral length of the original wells was just over 3,000 feet per well.\nIn stark contrast, the average lateral length of the new wells is nearly 16,000 feet per well, more than 5 times longer.\nNo additional earth disturbance was needed for 5 times the acreage development and no additional production, gathering, and processing infrastructure was required to add these new wells.\nTo put this into perspective, Range has close to 250 developed pads in Southwest PA and as of today, we've returned 84 of these locations to drill additional wells.\nThe three new wells were completed late last year, utilizing our contracted electric fracturing fleet which displaced 470,000 gallons of diesel fuel.\nThis reduced our cost by approximately $300,000 per well along with large reductions and associated emissions.\n40% of the water used to complete these new wells was recycled water from Range's producing wells along with third-party water, sourced from our water sharing process.\nThe balance of the water was pumped from our water pipeline network, which was installed nearly a decade ago, further reducing emissions associated with truck traffic by more than 13, 400 truck trips.\nThe average initial production of these wells exceeded 44 million cubic feet equivalent per day including more than 9,700 barrels per day of combined condensate and natural gas liquids per well, placing them in the top tier of wells in our Marcellus program history.\nThese efforts have underpinned our operational efficiency gains and give us confidence in the durability around keeping our drilling complete cost below $600 per foot, all while achieving our environmental goals and producing best-in-class wells.\nAs a result of this increased inspection frequency, an additional 7,400 metric tons of CO2 equivalent emissions was removed from our program, resulting in a 67% reduction for those related components.\nConsistent with our environmental results, Range's safety performance saw similar improvements delivering an over 30% improvement in recordable incidents for the quarter, which was the best Q1 performance versus the prior five years.\nPreliminary results for US propane and butane or LPG reveal that Q1 2021 domestic demand was 13% higher year-on-year while supply decreased by 4%.\nSimilarly, condensate supply in the Northeast is estimated to have decreased by 15% to 20% year-on-year.\nAt $24.83 per barrel, Range's Mont Belvieu equivalent barrel was at 38% over the prior quarter and 83% compared to the first quarter of 2020.\nPropane prices led the way, increasing nearly 60% versus the prior quarter and 140% versus Q1 of 2020.\nAdditionally Range's premium to a Mont Belvieu equivalent barrel increased by approximately $1.50 per barrel versus the prior quarter as Range realizes this highest premium to Mont Belvieu in the company's history.\nThis past winter, propane posted its largest seasonal withdrawal and well over a decade, leaving the end of March propane stocks at a 33% deficit to last year and a 17% deficit to the five-year average.\nAs a result, we expect propane prices to transact at levels at or above 60% of WTI crude this fall and the upcoming winter.\nOn the natural gas side, cold weather during mid-Q1 equated to the third coldest February, when looking at the past 10 years.\nThrough utilization of our diverse transportation portfolio, Q1 resulted in a differential of $0.14 under NYMEX, including basis hedging.\nWithin this constructive outlook for natural gas, Range is on track with its differential guidance of $0.30 to $0.40 for the year.\nCash flow from operations before working capital was $193 million compared to $105 million in capital spending.\nSignificant improvements in free cash flow compared to past periods were driven by a 50% improvement in pre-hedge realized prices per unit of production versus the prior-year period, which reached $3.20 per mcfe in the first quarter.\nThis realized price per unit is $0.51 above NYMEX Henry Hub, driven by improved natural gas basis and importantly further enhanced by a 77% increase in NGL price per barrel, which reached $26.35 pre-hedge.\nRealized NGL price on Mmcfe [Phonetic] basis equates to $4.39 per mcfe and condensate realizations equate to $8.17 per mcfe.\nAdditionally, Range's NGL prices exceeded a Mont Belvieu NGL barrel by $1.52 due to our unique portfolio of domestic and international sales contracts.\nLease operating expenses declined over 40% year-over-year to $0.09 per unit on the back of consistent, efficient, Marcellus operations, despite the winter weather and the divestiture of higher-cost assets.\nCash G&A expenses declined to $28 million or $0.15 per unit in the first quarter.\nCash interest expense was roughly $55 million.\nFor perspective, an increase of $1 per NGL barrel equates to approximately $0.01 per mcfe and cost.\nTurning to the balance sheet, Range has diligently and successfully managed the debt profile, such that liability management projects reduced bond maturities through 2024 by almost $1.2 billion while at the same time improving liquidity to nearly $2 billion.\nDuring the first quarter, we issued new bonds due 2029 in the amount of $600 million, which combined with the reaffirmation of our facilities, $3 billion borrowing base and $2.4 billion in commitments provide substantial liquidity and a strong evidence of what we believe is durable asset value.\nDuring the first quarter, we called in $63 million in near-term maturities of senior and senior subordinated notes closing on the redemption in early April.\nAs can be seen in the recently filed proxy, leverage metrics have been incorporated into long-term compensation criteria with the target of 1.5 times debt to EBITDA were better.", "summaries": "This will position us to achieve our 2021 maintenance target of 2.15 Bcfe per day through additional margin enhancing liquids production while spending $425 million or less.\nWithin this constructive outlook for natural gas, Range is on track with its differential guidance of $0.30 to $0.40 for the year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In the third quarter, revenue was $5.1 billion, up 11% year-over-year in constant currency.\nOur operating profit for the quarter was $151 million.\nExcluding Mexico restructuring and ettain acquisition transaction costs, operating profit was $162 million.\nReported operating margin was 2.9%, and after excluding Mexico restructuring and acquisition costs, operating profit margin was 3.2%.\nReported earnings per diluted share was $1.77 and $1.93 after excluding Mexico restructuring and acquisition costs and both were significantly above the prior year.\nThis strong demand is again evident in our Q4 ManpowerGroup Employment Outlook Survey of more than 40,000 employers in 43 countries.\nAll countries are reporting improved hiring intentions year-on-year and in 14 of the 43 countries, employers are reporting hiring intentions at the highest levels in more than 10 years.\nAs-adjusted operating profit was $162 million, representing a significant increase from the prior year period which was heavily impacted by the pandemic.\nAs-adjusted operating profit margin was 3.2%, which was at the top end of our guidance.\nBreaking our revenue trend down into a bit more detail, after adjusting for the positive impact of currency of about 1%, our constant currency revenue increased 11%.\nDue to the impact of net dispositions and slightly fewer billing days, the organic days-adjusted revenue increase was 12%.\nComparing to pre-pandemic levels, our third quarter revenues were below 2019 levels by 5% on an organic days-adjusted constant currency basis, which is slightly lower than the second quarter trend on this same basis due to the impact of new regulations in Mexico and the exiting of a low-margin arrangement in Australia.\nTurning to the earnings per share bridge on Slide 4, earnings per share was $1.77, which included $0.07 related to Mexico restructuring costs and $0.09 related to acquisition transaction costs.\nExcluding these costs, adjusted earnings per share was $1.93 which exceeded the mid-point of our guidance range.\nWalking from our guidance mid-point, our results included: improved operational performance of $0.02; slightly lower than expected foreign currency exchange rates which had a negative impact of $0.03; a slightly better than expected effective tax rate that added $0.02; and favorable other expenses which added $0.02.\nLooking at our gross profit margin in detail, our gross margin came in at 16.6%.\nUnderlying staffing margin contributed 20 basis point increase.\nPermanent recruitment contributed an 80 basis point GP margin improvement as hiring activity was strong across our largest markets.\nA lower mix of Right Management career transition business this year drove 30 basis points of GP margin reduction.\nOther and accrual adjustments included a 10 basis point margin improvement from our Experis managed services business in Europe and a 10 basis point improvement from consulting and MSP services, partially offset by a 10 basis point reduction from lower direct cost adjustments in the current year as favorable direct cost adjustments in Latin America were less than the prior year favorable adjustments in France.\nDuring the quarter, the Manpower brand comprised 63% of gross profit.\nOur Experis professional business comprised 22%, and Talent Solutions comprised 15%.\nDuring the quarter, our Manpower brand reported an organic constant currency gross profit year-over-year growth of 15%.\nCompared to pre-pandemic levels, this represented a decrease of 4% from the third quarter of 2019 on an organic constant currency basis.\nGross profit in our Experis brand increased 24% on an organic constant currency basis year-over-year during the quarter.\nOrganic gross profit increased 16% in constant currency year-over-year.\nThis represented an increase of 14% from the third quarter of 2019 on an organic constant currency basis.\nAs the recovery strengthens, our Right Management business continues to see significant run-off in outplacement activity, primarily in the U.S., and experienced a reduction in gross profit of 42% year-over-year.\nOur SG&A expense in the quarter was $703 million and represented a 6% increase on a reported basis from the prior year.\nExcluding Mexico restructuring charges and acquisition costs in the current year and restructuring charges and a loss from dispositions in the prior year, SG&A was 13% higher on a constant currency basis.\nThis compares to an increase in gross profit of 17% in constant currency and reflects investment in incremental recruiters and sales talent based on increased market activity, as well as ongoing technology initiatives.\nThe underlying increases consisted of operational costs of $78 million and currency changes of $6 million.\nSG&A expenses as a percentage of revenue, after excluding restructuring and acquisition costs, represented 13.4% in the third quarter.\nThe Americas segment comprised 19% of consolidated revenue.\nRevenue in the quarter was $1 billion, an increase of 8% in constant currency.\nOUP was $41 million.\nExcluding Mexico restructuring costs and ettain acquisition costs, OUP was $52 million and OUP margin was 5.2%.\nThe U.S. is the largest country in the Americas segment, comprising 65% of segment revenues.\nRevenue in the U.S. was $645 million, representing an 11% increase compared to the prior year.\nExcluding ettain acquisition costs in the current year and restructuring charges in the prior year, OUP for our U.S. business is flat year-over-year at $34 million in the quarter as decreases from Right Management's career placement run-off was offset by improvements across all other businesses.\nExcluding the acquisition costs, OUP margin was 5.3%.\nWithin the U.S., the Manpower brand comprised 33% of gross profit during the quarter.\nRevenue for the Manpower brand in the U.S. increased 9% during the quarter.\nThe Experis brand in the U.S. comprised 33% of gross profit in the quarter.\nWithin Experis in the U.S., IT skills comprise approximately 80% of revenues.\nExperis U.S. revenues grew 17% during the quarter and we anticipate continued strong double-digit organic growth in the fourth quarter.\nTalent Solutions in the U.S. contributed 34% of gross profit and experienced revenue growth of 9% in the quarter.\nIn the fourth quarter, on an organic basis, we expect ongoing underlying improvement and revenue growth for the U.S. in the range of 1% to 5% year-over-year.\nThis represents a 1% decline compared to 2019 levels using the midpoint of our guidance.\nSeparately, we estimate ettain revenues within a range of $175 million to $185 million in the fourth quarter.\nOur Mexico operation experienced a revenue decline of 46% in constant currency in the quarter.\nWe estimate that fourth quarter revenues in Mexico will decrease by approximately 55% to 60% year-over-year.\nMexico represented 2.8% of our 2020 revenues.\nRevenue in Canada increased 15% in constant currency during the quarter.\nSouthern Europe revenue comprised 46% of consolidated revenue in the quarter.\nRevenue in Southern Europe came in at $2.4 billion, growing 12% in constant currency.\nOUP equaled $111 million and OUP margin was 4.6%.\nFrance revenue comprised 55% of the Southern Europe segment in the quarter and increased 8% in constant currency.\nCompared to the same period in 2019, France revenues were down 10%.\nOUP was $62 million in the quarter and OUP margin was 4.7%.\nAs we begin the fourth quarter, we are estimating a year-over-year constant currency increase in revenues for France in the range of 2% to 6%.\nComparing estimated fourth quarter revenues to pre-crisis levels in constant currency, this represents an 8% decline compared to 2019 levels in the fourth quarter using the midpoint of our guidance.\nRevenue in Italy equaled $456 million in the quarter, reflecting an increase of 28% in days-adjusted constant currency.\nOUP equaled $31 million and OUP margin was 6.7%.\nWe estimate that Italy will continue to perform very well in the fourth quarter with year-over-year constant currency revenue growth in the range of 7% to 11%.\nRevenue in Spain increased 1% in days-adjusted constant currency from the prior year and revenue in Switzerland increased 21% in days-adjusted constant currency.\nOur Northern Europe segment comprised 23% of consolidated revenue in the quarter.\nRevenue increased 19% in constant currency to $1.2 billion, driven by all major markets.\nOUP represented $17 million and OUP margin was 1.4%.\nOur largest market in Northern Europe segment is the U.K., which represented 37% of segment revenues in the quarter.\nDuring the quarter, U.K. revenues grew 26% in constant currency.\nWe expect continued growth in the 4% to 8% constant currency range year-over-year in the fourth quarter.\nIn Germany, revenues increased 13% in days-adjusted constant currency in the third quarter.\nIn the Nordics, revenues grew 19% in constant currency.\nRevenue in the Netherlands increased 5% in constant currency.\nBelgium experienced days-adjusted revenue growth of 10% in constant currency during the quarter.\nThe Asia Pacific Middle East segment comprises 12% of total company revenue.\nIn the quarter, revenue grew 4% in constant currency to $611 million.\nOUP was $23 million and OUP margin was 3.7%.\nRevenue in Japan grew 13% in constant currency which represents an improvement from the 10% growth rate in the second quarter.\nRevenues in Australia were down 29% in constant currency, reflecting the exit of a low-margin client arrangement during the second quarter.\nDuring the first nine months of the year, free cash flow equaled $343 million compared to $685 million in the prior year reflecting significant accounts receivable declines in the prior year period.\nOur third quarter free cash flow of $172 million exceeded the prior year free cash flow of $108 million, representing strong current period cash collections.\nAt quarter end, days sales outstanding was flat year-over-year at 58 days.\nCapital expenditures represented $40 million for the nine-month period and $15 million during the third quarter.\nOur year-to-date purchases stand at 1.5 million shares of stock for $150 million.\nAs of September 30th, we have 1.9 million shares remaining for repurchase under the 2019 share program and 4 million shares remaining under the share program approved in August of 2021.\nOur balance sheet was strong at quarter-end with cash of $1.61 billion and total debt of $1.07 billion, resulting in a net cash position of $547 million.\nOn October 1st, we utilized $800 million of cash to fund the acquisition of ettain.\nOur debt ratios at quarter-end reflect total gross debt to trailing 12-months Adjusted EBITDA of 1.63 and total debt to total capitalization at 30%.\nAlthough our revolving credit facility for $600 million remained unused at September 30th, we did draw $150 million on October 1st in conjunction with the funding of the ettain acquisition.\nAs we previously indicated, we intend to pay this down over the next 12 months.\nOn that basis, we are forecasting earnings per share in the fourth quarter to be in the range of $1.99 to $2.07, which includes an unfavorable foreign currency impact of $0.04 per share and a positive $0.13 impact from ettain.\nThis does not include the impact of acquisition transaction costs of approximately $9 million or integration costs of $4 million to $6 million which will be broken out separately from ongoing operations.\nOur constant currency revenue guidance growth range is between 5% and 9% and, after adjusting for ettain, our organic constant currency growth range is estimated between 2% and 6%.\nThe midpoint of our constant currency guidance is 7%.\nA minor decrease in billing days in the fourth quarter and the impact of net acquisitions, driven by ettain, impact the growth rate, resulting in an outlook for organic days-adjusted revenue growth of 4% at the midpoint.\nThis would represent a fourth quarter organic constant currency decline in the range of minus 2% to minus 4% compared to 2019 revenues, representing an improvement from our third quarter trend.\nAlthough final purchase accounting for the ettain acquisition will be finalized in the months ahead, we currently estimate that intangible asset amortization will be approximately $24 million annually.\nWe estimate that EBITA margin during the fourth quarter will be up 30 basis points at the midpoint compared to the prior year with ettain contributing 20 basis points of the improvement.\nWe expect our operating profit margin during the fourth quarter to be up 20 basis points at the midpoint compared to the prior year with ettain contributing 10 basis points of the improvement.\nWe estimate that the effective tax rate in the fourth quarter will be 32%.\nAs usual, our guidance does not incorporate restructuring charges or additional share repurchases and we estimate our weighted average shares to be 55.3 million.\nOur most recent global Talent Shortage survey found that shortages are at a 15-year high for the second consecutive quarter, with 69% of employers stating they cannot find the talent they need.\nOur successful Manpower MyPath program has impacted over 129,000 lives to date and is a great example of this.", "summaries": "In the third quarter, revenue was $5.1 billion, up 11% year-over-year in constant currency.\nReported earnings per diluted share was $1.77 and $1.93 after excluding Mexico restructuring and acquisition costs and both were significantly above the prior year.\nTurning to the earnings per share bridge on Slide 4, earnings per share was $1.77, which included $0.07 related to Mexico restructuring costs and $0.09 related to acquisition transaction costs.\nExcluding these costs, adjusted earnings per share was $1.93 which exceeded the mid-point of our guidance range.\nOn that basis, we are forecasting earnings per share in the fourth quarter to be in the range of $1.99 to $2.07, which includes an unfavorable foreign currency impact of $0.04 per share and a positive $0.13 impact from ettain.", "labels": "1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "As of June 30, 2020, Vector Group maintained significant liquidity with cash and cash equivalents of $540 million, including cash of $61 million at Douglas Elliman and $218 million at Liggett, and investment securities and investment partnerships with a fair market value of $137 million.\nThe cash balances at Liggett include $132 million of deferred federal excise tax payments, which will be paid in the third quarter.\nDuring the second quarter, our liquidity increased by $53 million from the issuance of 5 million shares of common stock.\nVector Group's revenues for the three months ended June 30, 2020 were $445.8 million compared to $534.8 million in the 2019 period.\nOur tobacco segment reported an increase of $18 million in revenues due to price increases and increased unit volume.\nNet income attributed to Vector Group for the second quarter of 2020 was $25.8 million or $0.16 per diluted share compared to net income of $39.3 million or $0.25 per diluted common share in the second quarter of 2019.\nThe Company recorded adjusted EBITDA of $76.5 million compared to $83.5 million in the prior year.\nAdjusted net income was $28.7 million or $0.19 per share diluted compared to $43.2 million or $0.28 per diluted share in the 2019 period.\nFor the six months ended June 30, 2020, Vector Group's revenues were $900.2 million compared to $959.4 million in the 2019 period.\nOur tobacco segment reported an increase of $48.3 million in revenues.\nNet income attributed to Vector Group for the six months ended June 30, 2020 was $22.5 million or $0.14 per diluted share compared to net income of $54.3 million or $0.03 per diluted common share for the six months ended June 30, 2019.\nThe Company recorded adjusted EBITDA of $136.7 million compared to $133.2 million in the prior year.\nAdjusted net income was $68.6 million or $0.45 per diluted share compared to $56.1 million or $0.36 per diluted share in the 2019 period.\nFor the six months ended June 30, 2020, Douglas Elliman reported $298.5 million in revenues, a net loss of $74.1 million and an adjusted EBITDA loss of $8.8 million compared to $404.8 million in revenues, net income of $4.7 million and adjusted EBITDA of $7.7 million in the first six months of 2019.\nDouglas Elliman's net loss for the six months ended June 30, 2020 included pre-tax and non-cash impairment charges of $58.3 million and pre-tax restructuring charges of $3 million.\nAs a result, in the second quarter of 2020, Douglas Elliman's revenues in the New York metropolitan area declined by 52% from the second quarter of 2019.\nTo address the impact of COVID-19, Douglas Elliman implemented a reduction of personnel by 25% in April 2020 and began consolidating offices and reducing other administrative expenses.\nThese expense reduction initiatives resulted in a decline in Douglas Elliman's second quarter 2020 operating and administrative expenses by approximately $20 million from the second quarter in 2019.\nYear-over-year volume and market share increased during the second quarter, contributing to a 14.5% increase in tobacco adjusted operating income.\nAs noted on previous calls, we are well into the income growth phase of our EAGLE 20's business strategy, and I'm very pleased with the results we have achieved so far.\nWe began increasing prices on EAGLE 20's in late 2018 and have grown volume, share and profit since then.\nOur market programs and promotions have proven successful, and we remain optimistic about EAGLE 20's continued growth going forward.\nFor the three and six months ended June 30, 2020, Liggett revenues were $312.5 million and $599.6 million respectively, compared to $294.5 million and $551.3 million for the corresponding 2019 periods.\nTobacco operating income for the three and six months ended June 30, 2020 was $79.3 million and $148.5 million respectively, compared to $68.7 million and $128.8 million respectively.\nTobacco adjusted operating income for the three and six months ended June 30, 2020 was $79.4 million and $148.5 million respectively, compared to $69.3 million and $129.5 million for the corresponding periods a year ago.\nAccording to Management Science Associates, overall industry wholesale shipments for the second quarter were down 4.5%, while Liggett's wholesale shipments increased 1% versus the prior year quarter.\nFor the second quarter, Liggett's retail shipments increased 0.2% over the prior year quarter, while industry retail shipments decreased 2.2% during the same period.\nLiggett's retail share for the second quarter increased 11 basis points to 4.3%.\nEAGLE 20's retail volume for the second quarter grew by nearly 7% compared to the prior year period, and it remains the third largest discount brand in the US.\nEAGLE 20's is now sold in approximately 78,000 stores nationwide, and its growth continues to provide an effective volume and profit complement to PYRAMID and other Liggett brands.\nThe brand continues to deliver substantial profit and market presence for the company, has strong distribution and is currently sold in approximately 100,000 stores nationwide.\nAnd as we look ahead, we remain focused on generating operating income from the strong sales and distribution base of PYRAMID, while delivering volume, share and profit growth from EAGLE 20's.", "summaries": "Vector Group's revenues for the three months ended June 30, 2020 were $445.8 million compared to $534.8 million in the 2019 period.\nNet income attributed to Vector Group for the second quarter of 2020 was $25.8 million or $0.16 per diluted share compared to net income of $39.3 million or $0.25 per diluted common share in the second quarter of 2019.", "labels": "0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "On a U.S. GAAP basis for the first quarter of 2021, NOV reported revenues of $1.25 billion and a net loss of $115 million.\n2020 is 1-2 punch of an oil supply price war, followed closely by an oil demand crushing global pandemic led to a sharp decline in demand for oilfield equipment and consumables through the year.\nAs we reported in our operational update on March 16, the quarter was further impacted by other factors: severe winter weather and power outages in Texas and Oklahoma led to 63 NOV facilities being shuttered for a week or more.\nNevertheless, the first quarter sequential decline in capital equipment revenues reflect the pummeling our backlog took in 2020, which led to consolidated revenue declines of 6%.\nBy year-end, more than 100 North American oil and gas companies had filed for Chapter 11 bankruptcy protection with a combined debt of over $100 billion.\nWere not for a couple of large projects that were awarded before the lockdown, FIDs for offshore projects in 2020 would have marked the lowest since 1960.\nAlthough the recovery has begun taking hold in many markets, average first quarter rig counts were down 46% for North America land, 36% for international land and down 31% for offshore year-over-year.\nConsequently, NOV's oilfield backlogs fell throughout the year and first quarter annualized revenue run rate is down 45% from just five quarters ago.\n160 years of oilfield history demonstrates that this dynamic is always temporary.\nFor instance, the G10 plus China passed more than $20 trillion of stimulus in the aggregate.\nThe U.S. M2 is up 27% year-over-year, as an example.\nThroughout this historic period, NOV has been steadfast in: one, reducing our costs, which are down $12.6 billion since 2014, including approximately $2 billion in annual fixed cost reductions; two, improving our cash flow, which has delevered our balance sheet; and three, investing in the next-generation of technologies, both for the oilfield as well as emerging renewables opportunities.\nDrilling motor demand is also increasing and downhole friction reduction tools are completely sold out in certain North American markets as revenues were up more than 30% sequentially.\nIn our international markets, we expect our wired drill pipe jobs to increase over 25% in the second quarter.\nAnd despite continuing day rate pressure on drilling contractors, Grant Prideco posted a book-to-bill greater than 100% as operators are requiring larger 5.5-inch drill pipe to accommodate better hydraulic performance, leading drilling contractors to purchase this pipe with our proprietary Delta premium connections.\nHowever, the CAPS segment saw its book-to-bill for new capital equipment orders above 100% for the first time since the fourth quarter of 2019, an indication of better results to come.\nNorth American production chokes backlog popped 30% and our reciprocating pump backlog grew 69% sequentially.\nAnd healing for our capital equipment businesses always begins with rising orders, which we started to see in many businesses for the first time in 1.5 years.\nNOV's consolidated revenue fell $78 million or 6% sequentially to $1.25 billion during the first quarter of 2021.\nOngoing cost-out initiatives, a higher-margin revenue mix and better pricing, limited sequential decremental margins to 22%.\nDuring Q1, we realized $52 million in annualized cost savings and identified an additional $31 million in opportunities, bringing the total we expect to achieve in 2021 to $106 million.\nDuring the first quarter, our operations used $27 million in cash and capital expenditures totaled $49 million.\nWe ended the first quarter with $1.61 billion in cash and $1.85 billion in gross debt or net debt of $244 million.\nFollowing the end of the quarter, we fully redeemed the remaining $183 million of our senior notes due in December 2022 with cash on hand.\nAs a result, our next bond maturity does not occur until December 2029, and interest expense should decline roughly $1 million per quarter.\nOur Wellbore Technologies segment generated $413 million in revenue during the first quarter, an increase of $40 million or 11% sequentially.\nCost cutting, improved absorption in our manufacturing plants, a more favorable sales mix and better pricing drove 55% incremental margins and a $22 million increase in EBITDA to $34 million or 8.2% of sales.\nOur ReedHycalog drill bit business achieved 20% revenue growth with strong improvements across the Western Hemisphere.\nShare gains, improved absorption, better pricing and cost-cutting drove incremental margins of almost 50%.\nOur Downhole Tool business realized a 13% sequential improvement in revenue, led by sales growth that meaningfully outpaced the increase in drilling activity in the Western Hemisphere, partially offset by seasonal declines in the Eastern Hemisphere.\nA more favorable sales mix, higher volumes, improved operational efficiencies and better pricing allowed the business to deliver 50% incremental margins during the quarter.\nOur WellSite Services business realized a 16% sequential increase in revenue, primarily from improving results in its solid control operations.\nOur Tuboscope pipe coating and inspection business posted a 10% sequential increase in revenue.\nDemand for inspection services improved globally and was particularly strong in the U.S., where piece counts from steel mills and outside processors improved 43%.\nThe business unit achieved a 104% book-to-bill, which should allow for another sequential improvement in Q2.\n31% of our orders came from North America, the highest percentage in quite a while.\nAs Clay mentioned, we saw strong demand for 5.5-inch pipe driven by operators seeking greater hydraulic efficiencies consistent with the driver we're seeing for our high flow rate drilling tools at a time when there continues to be ample supplies of 4.5- and 5-inch customer-owned drill pipe in the U.S. For our Wellbore Technologies segment, we expect activity gains in the U.S. and Latin America to moderate and activity in the Eastern Hemisphere to recover, resulting in sequential revenue growth of 8% to 10% during the second quarter.\nWe also expect continued improvement in the segment's cost structure and better pricing, which should allow incremental EBITDA margins near 50%.\nOur Completion & Production Solutions segment generated $439 million in revenue during the first quarter, a decrease of $107 million or 20% sequentially.\nEfforts to reduce costs and improve operational efficiencies limited decremental margins to 30% and EBITDA declined $32 million to a loss of $4 million.\nOrders for the segment improved $57 million sequentially to $338 million, resulting in a book-to-bill of 127%; the segment's first book-to-bill greater than 100% since the fourth quarter of 2019.\nExcluding this addition, our book-to-bill would have been 115%.\nOur Fiber Glass Systems business realized a 25% sequential decline in revenue.\nWe anticipated absorption challenges resulting from five straight quarters with a book-to-bill below 1, but severe COVID-19 and weather-related disruptions also impacted operations.\nA significant pickup in orders in March for our fuel handling products allowed the unit to post a book-to-bill north of 100%.\nDespite continued weakness in the North American market, the segment achieved its second straight quarter with a book-to-bill greater than 1.\nDuring Q1, we booked an order to convert 16 Tier two frac pumps to new Tier four DGB dual fuel units that can run on a combination of diesel fuel and natural gas, lowering operating costs and emissions.\nAdditionally, we're seeing growing interest in our ideal e-frac stimulation equipment, which recently finished its first field trial where our pump completed more than 200 stages at rates up to 22 barrels per minute, nearly 3 times that of a traditional 2,500 horsepower unit.\nOur XL Systems conductor pipe business experienced a sharp sequential decline in revenue during the quarter, resulting from a backlog that was depleted after eight straight quarters with a book-to-bill of less than 1.\nOur team limited decremental margins to only 17%, and we achieved a 143% book-to-bill indicative of improving market conditions.\nFortunately, our technological and quality differentiation allows us to win a sufficient number of projects that are not entirely driven by pricing, such as the award we received associated with the industry's first 20,000-psi well development project.\nFor the second quarter of 2021, we anticipate revenue from our Completion & Production Solutions segment will improve between 15% to 25% sequentially, with incremental margins in the mid-20% range.\nOur Rig Technologies segment generated revenues of $431 million in the first quarter, a decrease of $6 million or 1% sequentially.\nA less favorable revenue mix and weather-related disruptions resulted in a $6 million decline in EBITDA to $13 million or 3% of sales.\nOrders for the segment declined $78 million sequentially to $112 million, yielding a book-to-bill of 59%; the segment's sixth quarter out of the last seven with a book-to-bill of less than 1.\nQuotation levels increased 25% sequentially, and the conversion of quotes to orders also improved, however, only quotes for small orders converted to bookings.\nWhile customers in the Middle East and Asia continue to express the need for newbuild rigs and offshore customers require meaningful upgrades for reactivations, we expect the lack of urgency will keep the book-to-bill for our traditional rig equipment business below 1 times.\nAs a reminder, the plant has a commitment for 50 drilling rigs over the next 10 years and accounted for $1.8 billion in backlog.\nIn our Aftermarket business, spare part bookings increased 22%, led by demand from the Middle East and U.S. land markets as the ability to cannibalize stacked rigs has nearly run its course.\nOur Q1 offshore wind order intake was modest relative to the opportunities we are pursuing, which include over $400 million in potential projects that could be awarded before the end of the year.", "summaries": "On a U.S. GAAP basis for the first quarter of 2021, NOV reported revenues of $1.25 billion and a net loss of $115 million.\nNOV's consolidated revenue fell $78 million or 6% sequentially to $1.25 billion during the first quarter of 2021.\nWe ended the first quarter with $1.61 billion in cash and $1.85 billion in gross debt or net debt of $244 million.\nOur Completion & Production Solutions segment generated $439 million in revenue during the first quarter, a decrease of $107 million or 20% sequentially.\nOrders for the segment improved $57 million sequentially to $338 million, resulting in a book-to-bill of 127%; the segment's first book-to-bill greater than 100% since the fourth quarter of 2019.\nOrders for the segment declined $78 million sequentially to $112 million, yielding a book-to-bill of 59%; the segment's sixth quarter out of the last seven with a book-to-bill of less than 1.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "Reported sales growth was 6.3%, and adjusted earnings per share was $0.83, and that's $0.03 better than our outlook.\nOrganic sales grew 4.9%, driven by higher consumption.\nIn Q1, our online sales increased by 54% year-over-year and as a percentage of total sales were 14.8% in Q1 compared to 10.2% in Q1 of 2020.\nWe continue to expect online sales for the full year to be 15% as a percentage of total sales.\n60% of vaccinated consumers are optimistic that they will return to a normal or new normal as we are seeing the first signs that consumers are willing to spend more time in stores based on a study by IRI.\nOf the 16 categories in which we compete, 8 grew consumption in Q1, in some cases, on top of big consumption gains in Q1 of 2020.\nOf those 8 categories, 5 saw a double-digit growth, gummy vitamins, toothache, battery-powered toothbrush, pregnancy test kits and women's electric grooming.\nLooking at market shares in Q1, 8 out of our 13 power brands met or gained share within our U.S. Consumer Domestic business, which grew organic sales 5.1%.\nVITAFUSION and L'IL CRITTERS gummy vitamins saw great consumption growth in Q1, up 24% with the help of the new launches described in the release.\nOne survey showed that consumers who are new to the category had a 90% repeat rate.\nWATERPIK grew consumption 15% in Q1 as it continues to recover from COVID lows and benefit from the heightened consumer focus on health and wellness.\nWhile BATISTE remains impacted by social distancing, consumption was up 6%, and we achieved a record high quarterly balance share of 39%, behind our International Women's Day campaign.\nDespite European lockdowns, our International business came through with 3.2% organic growth in the quarter, primarily driven by strong growth in our Global Markets Group.\nOur Specialty Products business delivered a positive quarter with 6% growth, primarily due to higher pricing.\nIt is the first and only sanitizing laundry additives that boost stain fighting and eliminates 99.9% of bacteria and viruses.\nWATERPIK launched WATERPIK ION, a water flosser which is 30% smaller and contains a long-lasting lithium ion battery and is specifically designed for smaller bathroom spaces.\nTo capitalize on its earlier success, WATERPIK SONIC-FUSION, the world's first flossing toothbrush, was upgraded to SONIC-FUSION 2.0 with two brush head sizes and two brush speeds.\nWe continue to expect full year adjusted earnings per share growth of 6% to 8%, which is in line with our Evergreen target, despite the heightened input cost.\nGiven our expectations, for consumer consumption, we have raised our full year outlook for reported sales growth from 4.5% to now 5% to 6%.\nOrganic sales growth expectations were raised from 3% to 4% to 5%.\nAnd if you look at consumption trends through the middle of April, 14 of our 16 categories were up in consumption year-over-year.\nFirst quarter adjusted EPS, which excludes the positive earn-out adjustment, was $0.83, flat to prior year.\n$0.83 was better than our $0.80 outlook, primarily due to continued increase in consumer demand for many of our products.\nReported revenue was up 6.3%.\nOrganic sales were up 4.9%, driven by a volume increase of 3.1% and a positive price mix of 1.8%.\nOrganic sales increased by 5.1% due to the higher volume and positive price mix.\nConsumer International delivered 3.2% organic growth due to higher volume, partially offset by lower price and product mix.\nFor our SPD business, organic sales increased 6% due to higher pricing, partially offset by lower volume.\nOur first quarter gross margin was 44.5%, a 120 basis-point decrease from a year ago.\nGross margin drag was impacted by 350 basis points of higher manufacturing costs, primarily related to commodities, distribution, tariffs and COVID impacts.\nCommodities, which were exacerbated due to the Texas freeze were a 90 basis-point drag on margin.\nTariff costs negatively impacted gross margin by 40 basis points.\nThese costs were partially offset by a plus 190 basis points from price/volume mix and a positive 170 basis points from productivity programs as well as a 10 basis-point positive impact from favorable currency.\nAs a reminder, our outlook for the quarter on gross margin was down 50 basis points.\nMarketing was up $2.3 million year-over-year as we invested behind our brand.\nMarketing expense as a percentage of net sales decreased 30 basis points to 8%.\nFor SG&A, Q1 adjusted SG&A increased 60 basis points year-over-year, primarily due to acquisition-related intangible amortization.\nOther expense all-in was $11.6 million, a $3.6 million decline due to lower interest expense from lower interest rates.\nAnd for income tax, our effective rate for the quarter was 24.2% compared to 23.2% in 2020, an increase of 100 basis points, primarily driven by lower stock option exercises.\nFor the first three months of 2021, cash from operating activities decreased 57% to $100 million due to higher cash earnings, which was offset by an increase in working capital.\nAs of March 31st, cash on hand was $128 million.\nOur full year capex plan continues to be approximately $180 million as we continue to expand manufacturing and distribution capacity, primarily focused on laundry, litter and vitamins.\nFor Q2, we expect reported sales growth of approximately 4.5%, organic sales growth of approximately 4% and gross margin contraction of 350 basis points as higher input costs continue and we lap artificially low promotional levels from a year ago.\nAdjusted earnings per share is expected to be $0.69 per share, a 10% decrease from last year's adjusted Q2 EPS.\nWe expect the earnings per share impact in Q2 to be approximately $0.04 for the quarter and we are seeking reimbursement by insurance.\nWe now expect full year 2021 reported sales growth to be 5% to 6%, which is above our previous 4.5% outlook.\nWe're also raising our full year organic sales growth to approximately 4% to 5%, up from the previous outlook of 3%.\nWe had previously expected gross margin expansion of 50 basis points for the year.\nWe're absorbing $90 million of incremental costs for the full year.\nOur full year tax rate expectations are now 22%, higher versus our last expectations due to lower stock option exercises.\nThis is a $0.02 headwind versus our previous full year outlook.\nAdjusted earnings per share expectations continue to be in the range of $0.03 to $3.06, a 6% to 8% increase year-over-year.\nOur cash from operations outlook continues to be $1 billion, while we continue to pursue accretive acquisitions.", "summaries": "Reported sales growth was 6.3%, and adjusted earnings per share was $0.83, and that's $0.03 better than our outlook.\nGiven our expectations, for consumer consumption, we have raised our full year outlook for reported sales growth from 4.5% to now 5% to 6%.\nOrganic sales growth expectations were raised from 3% to 4% to 5%.\nFirst quarter adjusted EPS, which excludes the positive earn-out adjustment, was $0.83, flat to prior year.\n$0.83 was better than our $0.80 outlook, primarily due to continued increase in consumer demand for many of our products.\nFor Q2, we expect reported sales growth of approximately 4.5%, organic sales growth of approximately 4% and gross margin contraction of 350 basis points as higher input costs continue and we lap artificially low promotional levels from a year ago.\nAdjusted earnings per share is expected to be $0.69 per share, a 10% decrease from last year's adjusted Q2 EPS.\nWe now expect full year 2021 reported sales growth to be 5% to 6%, which is above our previous 4.5% outlook.\nWe're also raising our full year organic sales growth to approximately 4% to 5%, up from the previous outlook of 3%.\nAdjusted earnings per share expectations continue to be in the range of $0.03 to $3.06, a 6% to 8% increase year-over-year.", "labels": 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{"doc": "As we announced earlier this year, Bob is retiring in June after more than 35 years at ALLETE.\nThese financial results were firmly within our 2021 earnings guidance range of $3 to $3.30 per share.\nWe're committed to ALLETE's long-term five-year objective of achieving consolidated average annual earnings per share growth within a range of 5% to 7%, and I'm confident in our ability to achieve this for our investors.\nWe're making significant progress on Minnesota Power's vision to provide 100% carbon free energy to customers by 2050.\nAnd it has been great to see that Minnesota Power's taconite customers finished 2021 at full production of approximately 40 million tons.\nWe anticipate 2022 production to be closer to average at around 35 million tons as reflected in Minnesota Power's rate case.\nWith the recently completed 303 megawatt Caddo wind facility now in service, ALLETE Clean Energy's total wind capacity has increased to more than 1,300 megawatts.\nToday ALLETE reported 2021 earnings of $3.23 per share or net income of $169.2 million.\nEarnings for 2020 were $3.35 per share or net income of $174.2 million.\nEarnings in 2021 reflected a $0.16 per share gain recorded in the fourth quarter for the sale of a portion of the Nemadji Trail Energy Center by South Shore Energy, ALLETE's non-rate regulated Wisconsin subsidiary.\nEarnings in 2021 reflected a $0.07 per share charge resulting from the Minnesota Public Utilities Commission decision to order refunds in Minnesota Power's fuel adjustment clause filing, covering the periods of July 2018 through December 2019.\nNet income in 2021 also included a $0.10 per share negative impact of ALLETE Clean Energy's Diamond Spring wind energy facility related to the extreme weather in the first quarter of 2021.\nOverall, ALLETE's consolidated results for the fourth quarter exceeded our expectations with earnings at $1.18 per share, compared to $0.90 per share for the same quarter in 2020.\nAt least regulated operations segment recorded net income of $29.7 million in the fourth quarter of 2021, as compared to $25.3 million in 2020.\nEarnings reflected higher net income at Minnesota Power, primarily due to higher megawatt hour sales to retail and municipal customers, including a 10% increase from taconite customers and positive income tax expense timing differences.\nALLETE Clean Energy recorded fourth quarter 2021 net income of $14.6 million, compared to $13.1 million in 2020.\nOur corporate and other businesses recorded net income of $17.6 million in 2021, compared to net income of $8.7 million in 2020.\n2021 included an $8.5 million after-tax gain from South Shore Energy sale of a portion of its interest in the Nemadji Trail Energy Center.\nAlso positively impacting 2021 results are higher earnings from our investment in the Nobles 2 energy facility, which commenced operations in December 2020, and higher net income from land sales at ALLETE properties.\nToday, we initiated 2022 earnings guidance of $3.60 to $3.90 per share, a net income of $195 million to $210 million.\nThe midpoint of our guidance range represents a 16% increase over 2021 results and reflects our expectations of improving returns and positive momentum around our clean energy investments.\nThis guidance range is comprised of our regulated operations within a range of $2.60 to $2.80 per share in ALLETE Clean Energy and our Corp. and other businesses within a range of $1 to $1.10 per share.\nTo provide visibility into 2022, ALLETE provided a preliminary estimated earnings guidance range of $3.70 to $4 per share.\nThe reason for the approximately $0.10 difference between our preliminary guidance estimate and our 2022 guidance issued today relates primarily to ALLETE Clean Energy's expectation of lower megawatt hour generation from its legacy wind energy facilities.\nOur guidance reflects interim rates for the Minnesota Power retail rate case of approximately $87 million.\nMinnesota Power's investor sales are expected to range between 6 million to 6.5 million megawatt hours, which reflects anticipated production from our taconite customers of approximately 35 million tons.\nALLETE Clean Energy expects total wind generation of approximately 4 million megawatt hours this year, compared to 3 million megawatt hours last year with the expectation of normal wind resources.\nFor our Corp. and other businesses, we expect slightly higher earnings from our investment in the Nobles 2 wind energy facility and earnings from a new Minnesota solar project expected to be completed later this year.\nEarnings per share reflects $50 million of additional equity issuances to fund the Caddo project and other growth initiatives.\nAs previously disclosed, we plan to repower and sell the now 100 megawatt Northern Wind project, which consists of the existing Chanarambie and Viking facilities to a subsidiary of Xcel Energy.\nALLETE Clean energy has experienced inflationary increases and significant cost pressures related to this project, and as a result, now anticipates a slight loss on the eventual sale of this project, which resulted in an approximately $2 million after-tax charge in the fourth quarter of 2021.\nThe 20 megawatt Rock Aetna portion of this project is positioned to move forward in tandem with the Northern wind power as a shovel-ready project with attractive future profit potential.\nWe are finalizing development plans to begin and complete construction of the 92 megawatt Red Barn build-on transfer project, the closing expected in early 2023.\nThe extension of this project, and a testament to our strong relationships with optionality to serve C&I customers or regional utilities, the 68 megawatt whitetail development project is also advancing with its advanced transmission Q position and landowner relationships for either a long-term PPA or build-on transfer project.\nLeveraging ALLETE Clean Energy safe harbor turbines, we continue to advance the 200 megawatt Ruso wind project in North Dakota and are working with various regulators on permitting and citing for this facility.\nI have worked with Steve for over 20 years, and I found him to be an individual of very high integrity and rock solid in terms of his financial expertise, leadership qualities, and strategic mindset.\nWe begin 2022 with a strong balance sheet, conservative capital structure at approximately 40% total debt, and an excess of $260 million in operating cash flow.\nA notable achievement on the financing side was our ability to secure approximately $240 million in tax equity financing of the $450 million project under very competitive terms.\nOf the $200 million in total equity investment, $50 million will be raised through our ATM program, as Steve noted earlier in his 2022 guidance overview.\nAs Bethany stated, we are committed and confident in our ability to achieve ALLETE's longer-term average annual growth objective within a range of 5% to 7%.\nAs a reminder, this is comprised of 4% to 5% from the regulated utility businesses and at least 15% for the non-regulated businesses.\nAs promised, Slide 10 represents our traditional capex table, and Slide 12 is the financing and support of this $1.8 billion capex plan, highlighting significant clean energy investments in the next five years.\nIn conjunction with Minnesota Power's outstanding IRP process currently under consideration by the MPUC, our projected spend in this updated capex table is approximately $1.8 billion over the next five years and is predominantly for regulated or utility-like clean energy infrastructure, representing a 19% compounded annual growth rate over 2021 levels, and translate into rate base growth of over 5%.\nAs renewable generation continues to expand, our planned expansion of our 550 megawatt DC transmission line by 65% to -- or 900 megawatts is a key component in the solution to address this issue.\nMinnesota Power's mission to deliver 100% carpentry energy by 2050 will require significant investment in renewable generation and in transmission and distribution over the next decade or so.\nOur non-regulated business segment, which is comprised primarily of ALLETE Clean Energy, is expected to continue to exceed our 15% growth objective in the foreseeable future.", "summaries": "Today ALLETE reported 2021 earnings of $3.23 per share or net income of $169.2 million.\nOverall, ALLETE's consolidated results for the fourth quarter exceeded our expectations with earnings at $1.18 per share, compared to $0.90 per share for the same quarter in 2020.\nToday, we initiated 2022 earnings guidance of $3.60 to $3.90 per share, a net income of $195 million to $210 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Each 10, as we've seen, be whipsawed by markets in just the short term.\nEarnings per share were further boosted by lower weighted average shares outstanding, or WASO, and from a lower tax rate, resulting in a 39.4% increase in GAAP earnings per share and a 31.8% increase in adjusted EPS.\nRevenues of $711.5 million were up $103.6 million, compared to revenues of $607.9 million in the prior-year quarter.\nGAAP earnings per share of $1.77 in 2Q '21, compared to $1.27 in 2Q '20.\nAdjusted earnings per share for the quarter were $1.74, which compared to $1.32 in the prior-year quarter.\nThe difference between our GAAP and adjusted earnings per share in 2Q '21 reflects $3.1 million in a fair value remeasurement of acquisition-related contingent consideration, which increased GAAP earnings per share by $0.09, and a $2.4 million of noncash interest expense related to our convertible notes, which reduced GAAP earnings per share by $0.06.\nNet income of $62.8 million, compared to $48.2 million in the prior-year quarter.\nSG&A of $133.9 million were 18.8% of revenues.\nThis compares to SG&A of $126.9 million or 20.9% of revenues in the second year -- in the second quarter of 2020.\nSecond-quarter 2021 adjusted EBITDA of $92.3 million or 13% of revenues, compared to $75.8 million or 12.5% of revenues in the prior-year quarter.\nOur second-quarter effective tax rate of 19.3%, compared to 23.1% in the prior-year quarter.\nWithout this change, our second-quarter '21 effective tax rate would have been 23.3%.\nFor the balance of '21, we expect our effective tax rate to be between 22% and 25%.\nFully diluted WASO for Q2 of 35.4 million shares declined 2.5 million shares, compared to 37.9 million shares in 2Q '20.\nOur convertible notes had a potential diluted impact on earnings per share of approximately 872,000 shares for the quarter.\nIncluded in WASO, as our average share price of $140.72 this past quarter was above the $101.38 conversion threshold rate.\nBillable head count increased by 470 professionals or 10.1% that's compared to the prior-year quarter.\nNoteworthy, in May, we closed on our acquisition of The Rhodes Group, welcoming 38 billable professionals to our construction solutions practice within our FLC segment.\nAnd in July last year, we acquired Delta Consulting, adding 151 billable professionals.\nSequentially, billable head count decreased by 27 professionals or half of 1%.\nIn Corporate Finance & Restructuring, revenues of $231 million decreased 6.1% compared to the prior-year quarter.\nAdjusted segment EBITDA of $40.2 million or 17.4% of segment revenues, compared to $76.3 million or 31% of segment revenues in the prior-year quarter.\nAdjusted segment EBITDA was negatively impacted by the continued downturn in restructuring activity compared to the record demand that saw in 2Q '20 in the initial wake of COVID as well as higher compensation, primarily related to a 19.8% increase in billable head count.\nOn a sequential basis, revenue increased $4.8 million or 2.1%, a strong growth in both our business transformation and transactions businesses and related success fees more than offset the continued decline in demand for our restructuring services.\nRevenues of $150.7 million increased 41.7% compared to the prior-year quarter.\nAdjusted segment EBITDA of $18 million or 11.9% of segment revenues, compared to a loss of $9 million in the prior year quarter.\nThe year-over-year increase in adjusted segment EBITDA was primarily due to higher revenues and a 14 percentage point increase in utilization, which was partially offset by higher variable compensation and a 5.5% increase in the billable head count.\nSequentially, revenues were flat but adjusted segment EBITDA decreased $11.4 million, primarily due to increased compensation, acquisition-related costs, and certain revenue deferrals.\nOur economic consulting segment's record revenues of $183.3 million increased 21% compared to the prior-year quarter.\nOur adjusted segment EBITDA of $30.7 million or 16.7% of segment revenues, compared to $21.7 million or 14.3% of segment revenues in the prior-year quarter.\nThe increase in adjusted segment EBITDA was due to higher revenues, which was partially offset by higher variable compensation and a 9.1% growth in billable head count.\nSequentially, revenues increased $14 million or 8.3%, which was primarily driven by increased demand for financial economics and M&A-related antitrust services.\nThe adjusted segment EBITDA improved $4.1 million.\nIn technology, revenues of about $78.6 million increased 67% compared to the prior-year quarter.\nAdjusted segment EBITDA of $18.5 million or 23.5% of segment revenues, compared to $6.4 million or 13.7% of segment revenues in the prior-year quarter.\nAdjusted segment EBITDA declined $3.1 million sequentially, which was largely due to an increase in SG&A expense.\nRevenues in the strategic communications segment of $67.8 million increased 19.2% compared to the prior-year quarter.\nAdjusted segment EBITDA of $13.5 million or 19.9% of segment revenues, compared to $10 million or 17.6% of segment revenues in the prior-year quarter.\nSequentially, revenues increased $7.3 million, primarily due to higher demand for corporate reputation and public affairs services.\nAdjusted segment EBITDA increased $3.1 million.\nWe generated net cash from operating activities of $125.6 million, which decreased by $27.4 million, compared to $153 million in the second quarter of 2020.\nWe generated free cash flow of $105.8 million in the quarter.\nTotal debt, net of cash, decreased $93.5 million sequentially from $252.8 million on March 31, 2021, to $159.4 million on June 30, 2021.\nWe now expect revenues will range between $2.7 billion and $2.8 billion, up from our prior range of between $2.575 billion and $2.7 billion.\nGAAP earnings per share is now expected to range between $5.89 and $6.39, up from a prior range of between $5.60 and $6.30.\nWe now expect adjusted earnings per share to range between $6 and $6.50, up from our prior range of between $5.80 and $6.50.\nThe $0.11 per share variance between earnings per share and adjusted earnings per share guidance for full-year 2021 includes the estimated tax-affected impact of noncash interest expense of $0.20 per share that's related to our 2023 convertible notes and the second-quarter 2021 $0.09 per share gain related to some fair value remeasurement.", "summaries": "Revenues of $711.5 million were up $103.6 million, compared to revenues of $607.9 million in the prior-year quarter.\nGAAP earnings per share of $1.77 in 2Q '21, compared to $1.27 in 2Q '20.\nAdjusted earnings per share for the quarter were $1.74, which compared to $1.32 in the prior-year quarter.\nGAAP earnings per share is now expected to range between $5.89 and $6.39, up from a prior range of between $5.60 and $6.30.\nWe now expect adjusted earnings per share to range between $6 and $6.50, up from our prior range of between $5.80 and $6.50.", "labels": "0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "After nearly 30 years of distinguished service to RPM.\nCombined sales in these three segments increased more than 15% and their adjusted EBIT was up more than 40%.\nDuring this supply disruption, we lost the equivalent of nearly 300 production days across RPM facilities around the globe during the 2022 first quarter.\nWe estimated the negative impact and consolidated sales during this first quarter was about $200 million due to these challenges and disruptions.\nSales and earnings for our consumer group decreased during the quarter as a result of these factors, as well as a difficult comparison to the prior-year period when sales increased on an organic basis by 34% and adjusted EBIT was up 122%.\nAlso on this slide, you'll see an image from 178,000 square foot plant we purchased 120 acres in Texas.\nFrom a more long-term macro viewpoint, there are a number of market opportunities in industry trends that we are well-positioned to capitalize on for continued growth and success among the market opportunities on Slide 5 are the following: The increasing need for investment in infrastructure with spending estimated to be $2.8 trillion globally.\nTurning to Slide 6, on a consolidated basis, our sales increased to a record $1.65 billion up 2.7% over a strong fiscal 2021 first quarter, which grew 9.1%.\nThe growth was 2.1% from recent acquisitions and 1.6% due to foreign currency translation tailwinds.\nMore than offsetting in organic sales declines of 1%.\nAdjusted diluted earnings per share of a dollar rate decreasing 25% compared to the prior-year periods extraordinary adjusted diluted earnings per share growth approved 52%.\nOur consolidated adjusted EBIT of 206.8 million decreased 23.2% due to supply chain challenges, inflation, and consumer groups' tough comparison against the prior year.\nIts organic growth at 15% was particularly impressive given that non-residential construction put in place a relevant market indicator for the segment is down 11.6% this calendar year.\nDuring the first quarter of fiscal 2022, this segment experienced a negative sales impact of roughly $100 million from production outages due to supply constraints and disruptions.\nHowever, the consumer groups' fiscal 2020 to first-quarter sales were 12.3% above pre-pandemic levels of the first quarter of fiscal 2020 in spite of the negative sales impact from supply chain challenges during the current year.\nI'll now move on to Slide 11, as we look ahead to our fiscal 2022 second quarter we anticipate that raw material, trade, and wage inflation will persist.\nIn addition, we face another difficult comparison to the prior year when sales on a consolidated basis increased 6% and adjusted EBIT increased nearly 30%, driven by a 66% increase in the consumer segments adjusted EBIT.\nWe expect our fiscal 2022 second-quarter consolidated sales to increase in the mid-single digits.\nOur consumer group is anticipated to experience a double-digit decrease in sales due to continued raw materials shortages and a difficult comparison to the prior-year period when pandemic fuels demand rapidly drove organic growth up 15%.\nHowever, in a similar manner to the first quarter, we expect the consumer segment's second-quarter sales to be above its pre-pandemic level, which is a fair comparison.\nSo adjusted EBIT is expected to be down 15% to 25%.", "summaries": "Turning to Slide 6, on a consolidated basis, our sales increased to a record $1.65 billion up 2.7% over a strong fiscal 2021 first quarter, which grew 9.1%.\nI'll now move on to Slide 11, as we look ahead to our fiscal 2022 second quarter we anticipate that raw material, trade, and wage inflation will persist.\nWe expect our fiscal 2022 second-quarter consolidated sales to increase in the mid-single digits.\nHowever, in a similar manner to the first quarter, we expect the consumer segment's second-quarter sales to be above its pre-pandemic level, which is a fair comparison.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n1\n0"}
{"doc": "Third quarter revenue was $247 million, compared to $352 million in Q2, and $302 million in Q3 of last year.\nOur Q3 revenue guidance coming into the quarter was a range of $225 million to $250 million.\nProducts and services were at the high-end of the range, but remember that we had lowered our expectations by 70% to 80%, because of the significant impact of COVID-19 shutdowns on the cinema industry.\nNow looking at total company quarter-over-quarter, revenue was down by about $105 million from Q2, roughly half of that was driven by timing of revenue under contracts, as well as lower recoveries, and roughly the other half of that was attributable to the impact from COVID-19, which includes lower royalties from unit shipments across a variety of devices, lower sales of cinema products and services and lower revenue from box office share at Dolby Cinemas.\nNow looking at total company year-over-year, revenue was down by about $55 million versus last year's Q3, and that was predominantly attributable to COVID-19, and similar to what I said a minute ago, lower unit shipments, lower products and services and lower Dolby Cinema revenue.\nThe composition of Q3 revenue was $235 million in licensing; and $12 million in products and services.\nBroadcast represented about 38% of total licensing in the third quarter.\nBroadcast revenues were down about 34% year-over-year, and that was driven by lower recoveries and lower unit volume due to the pandemic, despite the fact that adoption of Dolby Vision and Dolby Atmos into TVs and set-top boxes is higher than last year.\nOn a sequential basis, Broadcast was down by about 31% due to lower recoveries and lower unit volume.\nMobile represented approximately 33% of total licensing in Q3.\nMobile was up by about 65% over last year, due to higher recoveries and revenues from our patent programs, offset partially by unit volume impact from the pandemic.\nOn a sequential basis, Mobile was up by about 3%, driven by recoveries offset partially by unit volume impact from the pandemic.\nPC represented about 10% of total licensing in the third quarter.\nPC was down by about 4% year-over-year, due to lower recoveries and lower unit volume, although, its worth noting that adoption of Dolby Vision and Dolby Atmos of the PCs has increased since last year.\nAnd sequentially PC was down nearly 50%, due to timing of revenue under contracts and also lower recoveries.\nConsumer electronics represented about 9% of total licensing in the third quarter and on a year-over-year basis CE licensing was down by about 29%, driven by lower volume and lower recoveries.\nOn a sequential basis, CE was down by nearly 60%, due to timing of revenue under contracts, as well as lower unit volume.\nOther markets represented about 10% of total licensing in the third quarter.\nThey were down by about 34% year-over-year due to significantly lower revenues from Dolby Cinema, because nearly all of those screens were closed for the quarter and lower revenues from gaming due to console life cycles.\nOn a sequential basis, Other Markets was down by about 16% driven by lower revenue from Dolby Cinema and from via admin fees and those are the fees in the patent pool program that we administer.\nBeyond licensing our products and services revenue was $11.8 million in Q3, compared to $23 million in Q2, and $30.3 million in last year's Q3.\nTotal gross margin in the third quarter was 87.9% on a GAAP basis, and 89% on a non-GAAP basis.\nProducts and services gross margin on a GAAP basis was minus $5.5 million in the third quarter, due to fixed cost not fully covered by the lower volume that we ran.\nAnd as a reminder, the guidance I gave at the beginning of the quarter was for GAAP gross product margin to range from minus $6 million to minus $9 million.\nProducts and services gross margin on a non-GAAP basis was minus $3.5 million in the third quarter for the same reasons as I just went over in the GAAP discussion, and there as a reminder, our guidance for non-GAAP product gross margin was minus $5 million to minus $8 million.\nOperating expenses in the third quarter on a GAAP basis were $182.9 million, compared to $209 million in Q2.\nOperating expenses in Q3 were about $8 million less than the low end of the range we've guided, mostly driven by timing of certain marketing programs that were pushed into Q4, lower legal expenses and lower travel and outside services.\nOperating expenses in the third quarter on a non-GAAP basis were $159.2 million, compared to $188.4 million in the second quarter.\nOperating income in the third quarter was $34.1 million on a GAAP basis, or 13.8% of revenue, compared to $34.3 million or 11.3% of revenue in Q3 of last year.\nAnd last year's Q3 included a $30 million charge for restructuring mostly associated with an early exit from a leased facility.\nOperating income in the third quarter on a non-GAAP basis was $60.5 million, or 24.5% of revenue, compared to $85.9 million or 28.4% of revenue in Q3 of last year.\nIncome tax was a $27.4 million benefit in Q3 on a GAAP basis, and a $21.2 million benefit on the non-GAAP basis.\nThe Q3 income tax amounts include approximately $36 million of discrete benefits for a specific item that were resolved during the quarter.\nNet income on a GAAP basis in the third quarter was $67.3 million, or $0.66 per diluted share, compared to $39.6 million or $0.38 per diluted share in last year's Q3.\nNet income on a non-GAAP basis in the third quarter was $87.5 million or $0.86 per diluted share, compared to $79.3 million, or $0.76 per diluted share in Q3 of last year.\nDuring the third quarter, we generated about $134 million in cash from operations, which compares to about $91 million generated in last year's third quarter, and we ended the third quarter with a little over $1.1 billion in cash and investments.\nDuring Q3, we bought back about 500,000 shares of our common stock and ended the quarter with about $230 million of stock repurchase authorization still available.\nWe also announced today a cash dividend of $0.22 per share, which will be payable on August 26, 2020 to shareholders of record on August 17th, 2020.\nWe estimate that products and services revenue in Q4 could range from $10 million to $15 million.\nWe estimate that licensing revenue in Q4 could range from $215 million to $240 million, that's in comparison to the $235 million that we had in Q3.\nOur Q4 scenario assumes that there will roughly be a 5% improvement in unit shipments plus or minus blended across all device categories.\nSo to summarize, our scenario for total revenue in Q4 is a range of $225 million to $255 million.\nIf I compare that to last year's Q4 actual revenue of $299 million, the majority of the potential decline would be attributable to the economic ripple effect of the pandemic, and the remainder would largely be due to lower recoveries.\nGross margin for Q4 on a GAAP basis is estimated to range from 85% to 86%; and non-GAAP gross margin is estimated to be about 1 percentage point higher than the GAAP number.\nAt the revenue range in the outlook I provided, products and services gross margin on a GAAP basis could range from minus $6 million to minus $9 million in Q4; and on a non-GAAP basis, it could range from minus $5 million to minus $8 million.\nOperating expenses in Q4 are estimated to range from $187 million to $197 million on a GAAP basis; and from $167 million to $177 million on a non-GAAP basis.\nOther income is projected to range from $2 million to $3 million for the quarter; and our income tax rate for the fourth quarter is projected to range from 19% to 21% on both the GAAP and non-GAAP basis.\nBased on a combination of the factors I just reviewed, we estimate the Q4 diluted earnings per share on the GAAP basis could range from five -- from about $0.05 to about $0.20; and then on a non-GAAP basis, we estimate, it would range from about $0.22 to $0.37.\nAnd as for the full-year, if you do the math, that would mean that our FY '20 revenue for the full-year could range from $1,115 million to $1,145 million; GAAP diluted earnings per share could range from $2.04 to $2.19; and non-GAAP diluted earnings per share could range from $2.76 to $2.91.\nApple, which supports Dolby Vision and Dolby Atmos across most of their devices, announced that AirPods Pro will support Dolby Atmos with the release of iOS 14.\nIn FY '19, Dolby Vision was included on about 10% of 4K TV shipments, and we are on track to materially increase that adoption rate for fiscal '20 with a significant growth opportunity still ahead of us.", "summaries": "Net income on a GAAP basis in the third quarter was $67.3 million, or $0.66 per diluted share, compared to $39.6 million or $0.38 per diluted share in last year's Q3.\nNet income on a non-GAAP basis in the third quarter was $87.5 million or $0.86 per diluted share, compared to $79.3 million, or $0.76 per diluted share in Q3 of last year.\nSo to summarize, our scenario for total revenue in Q4 is a range of $225 million to $255 million.\nBased on a combination of the factors I just reviewed, we estimate the Q4 diluted earnings per share on the GAAP basis could range from five -- from about $0.05 to about $0.20; and then on a non-GAAP basis, we estimate, it would range from about $0.22 to $0.37.\nAnd as for the full-year, if you do the math, that would mean that our FY '20 revenue for the full-year could range from $1,115 million to $1,145 million; GAAP diluted earnings per share could range from $2.04 to $2.19; and non-GAAP diluted earnings per share could range from $2.76 to $2.91.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n1\n0\n0"}
{"doc": "Specific to the financial metrics, which Rob will detail shortly, revenue, EBITDA, DEPS and cash flow, all grew north of 20% in the quarter.\nOur software businesses, which now make up over 55% of our revenue base performed very well in the quarter.\nSpecifically, on an organic basis, we grew our Application Software segment 9% and grew our software businesses within our NSS segment 10%.\nAcross our software businesses, we saw the acceleration of our recurring revenue growth, approximately 80% of our soft revenues from mid-singles to high-singles and a solid recovery of perpetual license activity.\nImportantly, and consistent with our guidance over the last three quarters, we continue to delever our balance sheet at a rapid pace now under 4 times debt to EBITDA.\nTotal revenue increased 22% to $1.59 billion another record for any Roper quarter.\nQ2 organic revenue growth was 7% versus last year's comp of minus 3.\nQ2 EBITDA grew 26% to $579 million and EBITDA margin increased to 110 basis points to 36.4%.\nAdjusted DEPS was $3.76, 28% above prior year and also above our Q2 guidance range of $3.61 to $3.65.\nFree cash flow was $409 million, up a very strong 30% versus last year.\nNet working capital was negative 8%, we continue to benefit from Roper's transformation to a high recurring revenue, majority software business model that is structurally designed to consistently drive high cash conversion.\nLastly, we have been laser-focused on debt reduction this year after last year's record capital deployment and we continue to make great progress on that front with an additional $375 million paid down in Q2.\nThrough the first half of 2021, we have now reduced our net debt by nearly $900 million, raising the total debt reduction to approximately $1.4 billion, since completing the 2020 acquisitions late last year.\nOur debt reduction along with the meaningful contributions from our 2020 acquisitions has enabled us to rapidly lower our net debt to EBITDA ratio from 4.7 times to 3.8 times in only six months.\nRevenues in this segment were $592 million, up 9% on an organic basis.\nAs a reminder, this segment grew 1% organically last year aided by strong results from our lab software franchises that were critical to the COVID response.\nEBITDA margins were 43.7% in the quarter.\nAcross the segment, we saw organic recurring revenue, which is a touch north of 75% of the revenue for the segment increased approximately 9%.\nTo that end, the non-recurring organic revenue in this segment grew 9% as well.\nTurning to Page 10.\nRevenues in our network segment were $459 million, up 5% on an organic basis, and EBITDA margins were 42.5% in the quarter.\nOur software businesses in this segment about 65% of the revenues were, up 10% on an organic basis.\nThis growth was broad-based among our software businesses and driven by organic recurring revenue growth of approximately 11%.\nBased on the New York TransCore project pushing to the right, we now expect about $40 million of this projects revenue to push-out of the second half of the year and into 2022.\nAs we turn to Page 11, revenues and our MAS segment were $397 million, up 7% on organic basis.\nOrganic growth in this segment excluding Verathon was north of 20%.\nEBITDA margins for the segment were 33.4% in the quarter.\nVerathon coming off unprecedented demand for their intubation family of products a year ago is roughly 40% larger today versus 2019.\nAs we turn to Page 12, revenues in our Process Tech segment were $140 million, up 13% on an organic basis.\nEBITDA margins improved by over 500 basis points to 32.8% in the quarter.\nAs we turn to the outlook for the balance of the year, we expect 20%-plus organic growth based on improving market conditions and continued easing comps.\nNow please turn to Page 14 and I'll highlight our increased guidance for 2021.\nBased on strong first half performance improvement to our recurring revenue growth rates and improving market conditions, we are raising our full-year adjusted DEPS to be in the range of $15 and $15.20 per share.\nOf note, our prior high-end DEPS guidance was 15% now the bottom end of our range.\nAlso, we are increasing our guidance notwithstanding pushing roughly $40 million of the TransCore New York City project into next year, providing everyone a good sense of how strong the balance of our portfolio is performing.\nOur full-year organic growth is expected to be 7% or a touch higher.\nOur tax rate should continue to be in the 21% to 22% range.\nFor the third quarter, we're establishing adjusted DEPS guidance to be between $3.80 and $3.84.\nTurning to Page 15, and our closing summary.\nThis is a very strong quarter for enterprise with softer revenues growing on an organic basis 9% in our Application Software segment and 10% for our software businesses and our NSF segment.\nWe performed very well virtually in every financial metric, growing 20% plus in revenue, EBITDA, DEPS and cash flow.\nEBITDA margins expanded by 110 basis points and free cash flow increased 30%, to $409 million in the quarter.\nAs promised, we continue to delever our balance sheet, reducing debt by $375 million in the quarter and by $1.4 billion, since completing our 2020 acquisitions in Q4 of last year.", "summaries": "Total revenue increased 22% to $1.59 billion another record for any Roper quarter.\nAdjusted DEPS was $3.76, 28% above prior year and also above our Q2 guidance range of $3.61 to $3.65.\nBased on strong first half performance improvement to our recurring revenue growth rates and improving market conditions, we are raising our full-year adjusted DEPS to be in the range of $15 and $15.20 per share.\nFor the third quarter, we're establishing adjusted DEPS guidance to be between $3.80 and $3.84.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "As we mentioned in the release, while some of our associates have begun returning to our office, the majority of Old Republic's more than 9,000 associates continue to work remotely, ensuring that our services are delivered uninterrupted to our customers, agents and brokers and all in our remote work efforts have gone extremely well.\nEarlier today, we announced second quarter net income excluding all investment gains and losses of $124 million or $0.42 per share and that's down approximately 7% from last year.\nFor the first six months of 2020, earnings per share was $0.89, up nearly 4%.\nConsolidated net premiums and fees earned grew by 1.5 percentage points during the second quarter and 5.7% for the first half of this year.\nOur Title Insurance Group as Craig said continues to set the pace with an increase of almost 10% for the quarter and 16% year-to-date.\nGeneral Insurance recorded relatively modest decline of 3.8% and 0.6% for the quarter and the first six months of the year, as the pandemic further impacted economic activity here in the US.\nNet investment income dropped by 3.8% for the quarter and 1% year-to-date, and that's mostly caused by lower yields, which offset the generally higher invested asset balances.\nTurning to underwriting results, this quarter's consolidated combined ratio ticked upward by less than 1 percentage point to 96% from 95.2% last year.\nFor this year's first six months, the combined ratio was 95.4% and that was largely unchanged from the same period a year ago.\nClaim reserves on a consolidated basis dropped or developed favorably for the current quarter and year-to-date periods, reducing the reported claim ratios by 0.4 percentage points and 0.6 percentage points.\nPrior year development for the comparable 2019 period was again favorable by 0.2 percentage points and 0.9 percentage points.\nAt June 30th, the allocation of the investment portfolio remained relatively consistent, roughly 75% is invested in bonds and short-term investments, with the remaining 25% directed toward equity securities.\nTurning to -- during this year's first quarter, disruption to the financial markets resulted in a 24% or $963 million decline in the value of our equity portfolio.\nDuring the second quarter, the financial markets improved considerably resulting in a $354 million recovery in the valuation of our equities portfolio.\nAnd I would also add that as of yesterday's close, the portfolio had rebounded by an additional $126 million on top of the $354 million.\nOld Republic's book value per share increased from $17.29 at March 31st to $19.68 at the end of June, driven both by operating income and increases in the fair value of the investment portfolio.\nBook value is now up slightly for the year after consideration of the regular cash dividends paid year-to-date, which now generate nearly a 5% yield.\nA significant portion of these still reported almost 41% of total delinquencies outstanding at June.\nSo in combination, these additional reserves resulted in the $5 million pre-tax operating loss and escalated claim ratios that were reported.\nSo as the release indicates, compared to the second quarter, General Insurance saw quarter-over-quarter operating revenue decreased by 3.6% and quarter-over-quarter pre-tax operating income decreased by 1.8%.\nFor the General Insurance Group, quarter-over-quarter combined ratio, we saw that it rose slightly to 98.4% from 98.1%, while the expense ratio remained very steady.\nAs shown in the financial supplement, net premiums earned in commercial auto decreased by 2.5% quarter-over-quarter, attributable to a decline in the exposure base resulting from the economic downturn, along with tighter risk selection criteria, offset by the positive effect of rate increases that have continued at a pace in the percentages in the lower teens.\nContinuing with financial supplement, workers' compensation experienced a 14.3% decrease.\nTurning to the line of coverage claim ratios in the financial supplement, our second quarter commercial auto claim ratio increased to 83.4% compared with 79.6% in the same period of 2019.\nTurning to the workers' compensation claim ratio, the second quarter came in at 65.7%, compared to 69.3% in the second quarter of 2019.\nAs we discussed following the first quarter, it's important to remember that more than 90% of our COVID-19 workers' compensation claims emanate from loss-sensitive business such as large deductibles.\nAnd furthermore, greater than 90% of the COVID-19 claims that we see in workers' compensation are mild in nature, with very low claim payments.\nAnd ultimately less than 1% of those workers' comp claims are severe and less than 1% result in a fatality.\nFor commercial auto workers' comp, general liability combined given that we usually provide these coverages together to our customers, we like to look at it that way as well and quarter-over-quarter that claim ratio came in at 74.6% compared to 75.3% last year.\nFor the second quarter, total premium and fee revenue was up 9.9% and up 16.4% year-to-date.\nOur pre-tax operating income of $65.4 million for the quarter, compared to $60.2 million in last year's second quarter was an increase of $5.2 million or 8.6%.\nYear-to-date, pre-tax operating of $108.7 million compared to $80.8 million in the prior year-to-date period and the increase of $27.9 million or 34.6%.\nYear-to-date 2020, our composite ratio of 93.1% compares favorably to the 94.3% reported for the comparable 2019 period.\nDespite all the unknowns surrounding COVID-19, we remain cautiously optimistic going into the third quarter, with a robust order count in both purchase and refinance transactions, a strong real estate market, the 30-year mortgage rates remain historically low around 3% and expectations for these favorable rates to continue for this foreseeable future.\nAs with past challenges, we rely on the same guiding principles of integrity, managing for the long-run, financial strength, protection of our policyholders and the well-being of our employees and customers that have served us well over the last 100 plus years.", "summaries": "Earlier today, we announced second quarter net income excluding all investment gains and losses of $124 million or $0.42 per share and that's down approximately 7% from last year.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We also increased our dividend to an annualized rate of $1.08 per share as we promised when we released our original outlook for 2021 back in December.\nTo put this in perspective, this is the fourth consecutive annual increase in our dividend since 2017, when we were paying an annual dividend of $0.50 per share.\nAnd we have accomplished that while maintaining a real focus on our balance sheet, having reduced our debt from its peak of almost $43 billion in 2015 to $30.7 billion today, a decrease of over $12 billion, quite an improvement.\nWe do that in Texas, too, but we also have a purchase and sale business.\nAnd we view our Texas intrastates as roughly 80% or so take-or-pay.\nIt also reveals the value of preparation in such circumstances in which supply and demand conditions causing prices to go up by more than 100 times, we were able to perform well financially, as well as operationally.\nwhich during that week at the Houston Ship Channel, range from $180 MMBtu to $400 versus $3 earlier in the same month.\nThe contract work, as designed and particularly with prices as high as $9,000 a megawatt hour, we earned a substantial financial benefit, while letting those megawatts be made available to serve human needs.\nThis is great flexibility that we've now built into a part of our business that consumes about 340 megawatts in the state of Texas.\nTransport volumes were down about 3% or approximately 1.1 million dekatherms per day versus the first quarter of '20.\nPhysical deliveries to LNG facilities off of our pipeline averaged approximately 4.7 million dekatherms per day.\nThat's greater than a 25% increase versus the first quarter of 2020.\nLNG volumes were down from the approximately 5 million dekatherms per day in the fourth quarter of '20.\nDuring the storm, total LNG exports dropped to under 2 million dekatherms per day.\nIn the first quarter, Kinder Morgan pipes moved approximately 47% of the volume going to LNG export facilities.\nExports to Mexico on our pipes were up about 3% when compared to the first quarter of '20.\nOur share of Mexico deliveries in the first quarter ran about 55%.\nOne, on our natural gas gathering volumes, they were down about 25% in the quarter compared to the first quarter of '20.\nSo compared to the fourth-quarter volumes, first-quarter volumes were down about 11%.\nApproximately two-thirds of that 11% reduction are related to KinderHawk, which is our gathering asset in the Haynesville.\nBut given that there are 45 rigs deployed in that basin, we expect that our volumes will increase sequentially each quarter for the balance of the year, although it will be a little bit slower than what we've budgeted.\nIn our products pipeline segment, refined products volumes were down about 10% for the quarter versus the first quarter of 2020.\nGasoline volumes were up 6% versus the first quarter of '20.\nThat's an improvement from the fourth quarter when they were off about 10% versus the fourth quarter of 2019.\nJet volumes remain weak off about 29%, but that's a big improvement from the fourth quarter when they were off 47% versus the fourth quarter of '20.\nAnd diesel volumes were up 6%, and that's relatively flat to the percentage in the fourth quarter.\nMarch volumes were up slightly versus 2020, and they were down about 6% versus 2019.\nCrude and condensate volumes were down about 28% in the quarter versus the first quarter of 2020.\nSequentially, they were up 2%.\nOur liquids utilization percentage, which reflects the tanks that we have under contract remains high at 95%.\nIf you exclude tanks out of service for required inspection, utilization is about 98%.\nExcluding the storm impact, oil production was down approximately 15%.\nCO2 sales volumes were down 26%.\nOur net realized oil price was down about $3.50 per barrel.\nAs we said in the release, we're currently projecting full-year DCF of $5.1 billion to $5.3 billion versus our budget of $4.45 billion.\nWe estimate that the Uri impact, and this is across all of our segments, was roughly worst-season hand grenades $1 billion, leaving a variance, again, very roughly, of $200 million to $350 million versus our budget.\nI know $200 million doesn't add up perfectly, but that's because these are very large rounded numbers.\nLet me start with the $200 million variance.\nWe estimate that sustaining capex will be approximately $75 million higher than our budget due to the decision to replace some pipe in rural South Texas as opposed to continuing to spend money running inspection tools and repairing the pipe.\nWhat I'll classify as pandemic-related impacts is roughly $80 million, and that includes weaker petroleum products volumes and lower renewal rates on Jones Act tankers.\nThose two items explain about 75% of the variance, but there are a lot of other moving parts.\nThose two items are roughly offset by positive performance in the CO2 segment, from higher CO2 and oil volumes and price.\nFinally, the sale of our 12.5% interest on NGPL creates a negative variance versus our budget.\nFor example, The high end of the guidance range assumes petroleum products volume 3% below plan for the balance of the year versus the low end of the guidance assumes they're about 5% below plan for the balance of the year.\nSo for the first quarter of 2021, as Rich mentioned, we are declaring a dividend of $0.27 per share, which is 3% up from last quarter.\nNow looking at the financial performance for the first quarter of this year versus the first quarter of last year, we generated revenues of $5.2 billion, up $2.1 billion.\nWe had partial offsets in our -- a partial offset in our cost of sales with an increase of $1.3 billion there.\nSo our gross margin was up $759 million, mostly driven by our strong performance during the winter storm.\nAnd that's the main item in the $106 million favorable O&M amount.\nIn the first quarter of 2020, we also took impairments in our CO2 segment of $950 million, which explains most of the $975 million favorable in the item -- the line item called gain and loss on divestitures and impairments.\nThis past quarter, we wrote off the value of our Ruby subordinated note, which was a reduction of $117 million in the earnings from equity investments.\nWe also reflected a $206 million gain on the sale of a partial interest in NGPL, and that appears in the other net line item.\nSo overall, we generated net income of $0.62 per share, which is very favorable versus the $0.14 loss in the first quarter of 2020.\nOn an adjusted earnings per share basis, and then that's where we show earnings per share before certain items, we generated $0.60 per share versus $0.24 per share a year ago.\nOur natural gas segment was up $915 million for the quarter, mostly explained by favorable intrastate margins as well as increased revenue on our Tennessee Gas Pipeline, both as a result of the February winter storm performance.\nProduct segment was down $10 million, driven by lower refined product volumes on SFPP, lower crude oil volumes on KMCC, and lower recontracting rates at HH, partially offset by greater contributions from our transmix business.\nOur terminal segment was down $30 million.\nOur CO2 segment was up $116 million this quarter versus a year ago.\nOur G&A at corporate and corporate charges were higher by $8 million.\nThat brings us to adjusted EBITDA, which was $966 million, or 52% higher than Q1 2020.\nInterest expense was favorable by $52 million.\nFor the quarter, sustaining capital was favorable by $34 million, and that was driven by lower terminals and natural gas segment capex.\nBut all of that is timing, and we expect to spend more sustaining capital for the full year versus 2020.\nSo our total DCF was $2.329 billion and was up $1.068 billion, or 85%.\nAnd our DCF per share was $1.02, up $0.47 from last year's $0.55 per share.\nWe ended the quarter with net debt to adjusted EBITDA of 3.9 times, down nicely from the 4.6 times at year-end.\nAnd we currently project to end 2021 at 3.9 times to 4.0 times, and that's consistent with the ranges that Kim walked through.\nOur longer-term leverage target of 4.5 times has not changed.\nWe ended the quarter with almost $1.4 billion of cash on hand and only have $500 million of consolidated debt maturing for the rest of the year.\nSo our net debt, which includes our cash on hand, ended the quarter at $30.7 billion, down $1.348 billion for the year -- from the year.\nAnd now, our net debt has declined by $12.1 billion or almost 30% since Q1 of 2015, as Rich mentioned, but is worth reiterating.\nSo our quarter change to reconcile the change in debt of $1.35 billion for the quarter.\nWe generated $2.329 billion in DCF.\nWe paid dividends of $600 million.\nWe made $200 million of contributions to our growth projects as well as to JVs.\nWe received $413 million from the NGPL sale, and we had $600 million of -- approximately $600 million of working capital uses, primarily interest expense payments, AR increases, and a rate case settlement on SFPP.", "summaries": "We do that in Texas, too, but we also have a purchase and sale business.\nwhich during that week at the Houston Ship Channel, range from $180 MMBtu to $400 versus $3 earlier in the same month.\nTransport volumes were down about 3% or approximately 1.1 million dekatherms per day versus the first quarter of '20.\nExports to Mexico on our pipes were up about 3% when compared to the first quarter of '20.\nThose two items are roughly offset by positive performance in the CO2 segment, from higher CO2 and oil volumes and price.\nFor example, The high end of the guidance range assumes petroleum products volume 3% below plan for the balance of the year versus the low end of the guidance assumes they're about 5% below plan for the balance of the year.\nSo for the first quarter of 2021, as Rich mentioned, we are declaring a dividend of $0.27 per share, which is 3% up from last quarter.\nWe had partial offsets in our -- a partial offset in our cost of sales with an increase of $1.3 billion there.\nSo overall, we generated net income of $0.62 per share, which is very favorable versus the $0.14 loss in the first quarter of 2020.\nOn an adjusted earnings per share basis, and then that's where we show earnings per share before certain items, we generated $0.60 per share versus $0.24 per share a year ago.\nBut all of that is timing, and we expect to spend more sustaining capital for the full year versus 2020.\nAnd we currently project to end 2021 at 3.9 times to 4.0 times, and that's consistent with the ranges that Kim walked through.", "labels": "0\n0\n0\n1\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "With respect to business trends, we got off to a good start in July with sales running more than 90% of prior year sales.\nWe had substantially all of our stores opened heading into the 4th of July weekend and retail sales over that holiday shopping period comped up 7%.\nIn August, we saw sales trend to about 87% of prior year sales as schools delayed reopening.\nSeptember sales ramped up to 95% of prior year sales.\nOur Labor Day holiday sales were the strongest in the past three years, with comparable retail sales up 15% during that shopping period.\nAnd in October, sales are trending over 90% of prior year sales.\nOur baby apparel and sleepwear contributed about 70% of our total apparel sales.\nIn the third quarter, our retail sales improved to 97% of third quarter sales last year.\nWith fewer store visits, we reduced our hours of store operations by over 20% in the quarter.\nThese stores only represent about 11% of our U.S. stores, but drove about 40% of the decline in comparable sales in the quarter.\nIn the third quarter, our stores fulfilled 24% of our eCommerce orders.\nTo improve the convenience of shopping with us, we now offer same-day pickup and curbside pickup services in over 600 of our stores in the United States.\nCurrently, about 85% of our stores in the United States are located in open air centers, which we believe gives us an advantage relative to our mall-based competitors.\nWe currently plan to open less than 100 co-branded stores over the next five years.\nWe also plan to close about 25% of our stores as leases expire.\nNearly 60% of those closures may occur by the end of next year.\n80% of those closures are planned by the end of 2022.\nSales in the third quarter were about 86% of prior year sales.\nWe continue to see good growth with our exclusive brands with sales collectively up 10%.\nE-commerce demand for our brands through our wholesale customers was up over 40% in the third quarter, including triple-digit growth rates with some of our exclusive brands.\nTogether with our wholesale customers, the online purchases of our brands is up over 50% year-to-date.\nWithin the next few weeks, we expect to achieve a new milestone for our company with annual online purchases of our brands exceeding $1 billion this year.\nOur Carter's brand wholesale sales were down about 25% in the quarter, driven by retailers cautiously planning for second half sales and our decision earlier this year to curtail fall and holiday inventory commitments.\nOur decision to run lean around inventories may impact second half wholesale sales by as much as $50 million or less than 3% of our total second half sales.\nOur sales to off-price retailers were down 18% in the quarter and down over 50% year-to-date.\nInternational sales in the quarter were about 90% of last year's sales and contributed over 13% of our total company sales, which is comparable to last year.\nWe saw high single-digit growth in our retail sales, driven by a nearly 70% increase in eCommerce sales in Canada and Mexico.\nJust for context, these customers contributed less than 2% of our company's annual sales in 2019.\nInventories at the end of September were down over 10% compared to last year.\nOur best analysis suggests these surcharges may impact fourth quarter earnings by about $2 million.\nOur average price points are less than $10, providing a great value to consumers in a weaker economic environment.\nI'll begin on Page 2 with our GAAP income statement for the third quarter.\nNet sales in the quarter were $865 million, down 8% from last year.\nReported operating income was $114 million, an increase of 35%.\nAnd reported earnings per share was $1.85 compared to $1.34 a year ago, representing growth of 38%.\nOur third quarter and year-to-date results for both 2020 and 2019 contained unusual items, which we've detailed on Page 3.\nMoving to Page 4 and our adjusted P&L for the third quarter.\nNet sales declined 8% to $865 million, which is a meaningful improvement over the 30% decline we saw in the second quarter.\nWe continue to see strong demand online with our U.S. eCommerce business achieving a 17% comp and eCommerce comps in Canada up nearly 60%.\nWhile gross profit dollars declined 5% due to lower sales, gross margin rate improved by 180 basis points versus last year to 44.4%.\nRoyalty income was roughly comparable to last year at $9 million.\nAdjusted SG&A declined to $24 million or 8% across a broad range of expense categories.\nAdjusted operating income grew 4% to $120 million and adjusted operating margin expanded 160 basis points to 13.8%, driven by our strong gross margin performance and management of spending.\nBelow line, we had higher net interest expense than last year due to the $500 million in new senior notes which we issued earlier this year.\nWe had other income of approximately $3 million in the quarter, largely foreign currency gains.\nAnd our effective tax rate was about 19% in the quarter, up from about 18% last year.\nAverage share count declined 2%, driven by share repurchases in 2019.\nSo, on the bottom line, adjusted earnings per share grew 5% to $1.96, up from $1.87 last year.\nTurning to Page 5 with some balance sheet and cash flow highlights.\nOur balance sheet and liquidity remained very strong.\nTotal liquidity at the end of the third quarter was nearly $1.6 billion, with over $800 million of cash on hand and virtually all of the borrowing capacity under our $750 million credit facility available to us.\nAs Mike said, we ended the quarter with inventories 11% lower than the year ago.\nOur Q3 accounts receivable balance declined 10% compared to last year, which reflects lower wholesale sales.\nAccounts payable were $473 million at quarter-end compared to $206 million a year ago.\nLong-term debt was $1 billion, up from $770 million in the third quarter of last year, which reflects our successful senior notes financing transaction in May and lower revolver borrowings.\nIn the third quarter, we repaid $244 million, which represented all of the outstanding borrowings under our credit facility.\nWhen considering our meaningful cash position, net debt at the end of the third quarter was $158 million compared to over $600 million at the end of Q3 last years.\nDespite year-to-date net income, which is lower than last year, our operating cash flow was very strong at $320 million compared to $73 million last year.\nTurning to Page 7 with a summary of our business segment results for the third quarter.\nWhile sales were down, profitability in each of our business segments improved in the third quarter, and our consolidated adjusted operating margin expanded by 160 basis points over last year.\nTurning to Page 8, with third quarter results for our U.S. retail segment.\nTotal segment sales declined 3% compared to last year.\nFor the quarter, total retail comparable sales declined 3.5%, reflecting strong eCommerce growth of 17% and lower store sales.\nThe adjusted operating margin of our retail segment improved by 50 basis points to 11.4%, driven by improved price realization, especially online, and our improved inventory position and good control of spending.\nTurning to Page 9.\nOn Page 10, all of our recent marketing efforts continue to be highly integrated with our presence on social media.\nOn Page 11, we had particularly high engagement in September with two specific promotional events.\nTurning to Page 12.\nDuring our Baby Love event in September, we gave away 10,000 Carter's body suits with the message -- \"2021, Looking Bright\", to celebrate the happy news of a new baby set to arrive in 2021.\nMoving to Page 13.\nOn Page 15, we've seen strong demand for our holiday products.\nOn Page 16, Carter's is known for our pajamas, especially Christmas PJs, with sizes for everyone in the family.\nOn Page 17, we also have extensive offerings for special outfitting, for dress applications for the holidays.\nAnd this year, on Page 18, we have toys from Skip Hop and Carter's.\nMoving to Page 19, with a recap of U.S. wholesale results for the third quarter.\nDemand for our exclusive brands at Target, Walmart and Amazon was strong in the third quarter, with combined sales growing 10% over last year.\nU.S. Wholesale adjusted segment income was $67 million in the third quarter compared to $73 million a year ago.\nAdjusted segment margin improved by 140 basis points to 22.3%, reflecting lower inventory-related charges which were partially offset by higher bad debt expense.\nOn Page 20, we launched our core Little Baby Basics collection annually.\nBeginning on Page 21, we've included a few slides that highlight our exclusive brands, which are available at Target, Walmart and Amazon.\nOn Page 22, on the Child of Mine brand at Walmart.\nFinally, on Page 23, our Simple Joys brand continues to resonate with consumers.\nMoving to Page 24 and third quarter results for our International segment.\nInternational net sales declined 10% to $114 million.\nCanada delivered a very good quarter overall, with retail comparable sales growing 7%.\nOnline demand continued to be strong with eCommerce comps up 58%.\nInternational adjusted operating margin expanded 270 basis points to 15.8%, driven by strong performance in Canada that was partially offset by a lower contribution from our partners business.\nOn Page 25, we've included a photo of one of our newest stores in Mexico.\nOn Page 26, we've included pictures from the first three stand-alone Carter's stores in Brazil, two in Sao Paulo and one in Rio de Janeiro.\nTurning to Page 27 with our outlook for the balance of the year.\nAs with last quarter and given the ongoing market disruption caused by the pandemic, we're not providing sales and earnings guidance today.", "summaries": "Net sales in the quarter were $865 million, down 8% from last year.\nAnd reported earnings per share was $1.85 compared to $1.34 a year ago, representing growth of 38%.\nSo, on the bottom line, adjusted earnings per share grew 5% to $1.96, up from $1.87 last year.\nOur balance sheet and liquidity remained very strong.\nTotal liquidity at the end of the third quarter was nearly $1.6 billion, with over $800 million of cash on hand and virtually all of the borrowing capacity under our $750 million credit facility available to us.\nFor the quarter, total retail comparable sales declined 3.5%, reflecting strong eCommerce growth of 17% and lower store sales.\nAs with last quarter and given the ongoing market disruption caused by the pandemic, we're not providing sales and earnings guidance today.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "These strategic supply side partnerships and our operating model focus on spec homes and limited SKUs, allowed us to deliver 3,112 homes, which set the company record for the highest third quarter of home closings.\nWe also set two additional quarterly company records: we generated the highest quarterly home closing gross margin of 29.7% in company history as a result of pricing power, more than offsetting the elevated lumber and other commodity costs; and our quarterly diluted earnings per share of $5.25 was the highest in our company's history.\nAs of September 30, 2021, we had 236 ending communities and remain confident in our ability to achieve our goal of 300 communities by mid-2022.\nOverall, it was another successful quarter, where our teams and supplier relationships helped Meritage deliver 3,112 homes.\nAlthough order ASP grew 12% year-over-year, we experienced a deceleration in ASP growth sequentially this quarter, and the new product we'll be bringing on in 2022 and 2023 will allow us to continue repositioning our future communities down the ASP band.\nEven still, our average absorption pace remained elevated at 5.0 per month.\nOur third quarter closings totaled 3,112 homes.\nThey were up 4% over the prior year.\nEntry-level comprised 78% of closings, up from 63% in the prior year.\nFor us, Q3 of last year was the quarterly peak of the surging housing demand since the start of COVID-19, resulting in our all-time highest third quarter absorption pace of 5.8 sales per month.\nAs a result, the total orders of 3,441 for the quarter of 2021 reflected a decrease of 11% year-over-year, driven by a 15% decline in average absorption pace that was partially offset by a 5% increase in average communities.\nEntry-level comprised over 80% of quarterly orders, up from nearly 70% in the third quarter of last year.\nEntry-level also represented 77% of our average active communities compared to 60% a year ago.\nOur central region, which is comprised of Texas, led in terms of average absorption pace with 5.4 sales per month this quarter, which was 14% lower than prior year.\nThis decline was partially offset by a 5% greater average active communities, which together contributed to a 10% decline in order volume.\nThird quarter order ASP increased 20% year-over-year given solid market conditions in Texas.\nOur east region with the highest entry-level product mix with -- representing 80% of the average community was the only region to generate year-over-year growth in order volume of 3% despite metering as a result of an 8% increase in average active communities in the third quarter, which offset a 4% decrease in average absorption pace.\nSouth Carolina opened several new communities later in the third quarter, which resulted in a 3.7 average absorption pace in the third quarter.\nThis was our lowest absorption pace in the company's quarter, despite South Carolina's orders increasing 11% over prior year.\nThe west region's third quarter 2021 order volume had our largest decline at 24% year-over-year, mainly due to 25% lower average absorption pace to 4.9 per month.\nSpecifically, Arizona reduced its absorption pace from 6.5 per month in Q3 of 2020 to 4.8 per month this quarter as a result of supply chain challenges.\nColorado remained the lowest percentage of entry-level mix at 48% of its average active communities this quarter.\nDuring the third quarter, California had the highest average absorption pace of all our states at 5.6 per month.\nGiven 100% of the average active communities are entry-level there, we continue to focus on affordability, particularly as it's our most expensive geography.\nThe third quarter order ASP increased 15% year-over-year in the west region.\nArizona and Colorado had the largest increase in order ASP in all our states at 26%.\nOf our home closings this quarter, 74% came from previously started spec inventory, which increased from 71% a year ago.\nWe ended the quarter with nearly 2,100 spec homes in inventory or an average of 11.7 homes per community as we push to get homes in the ground.\nThis was an important improvement from approximately 2,300 specs or an average of 11.2 in the third quarter of 2020.\nAt September 30, 2021, less than 5% of the total specs were completed versus our typical run rate of 1/3.\nHaving available spec is crucial to our business model, but even as we started over 3,400 homes this quarter, maintaining our goal of a four to six-month supply of entry-level spec has been challenging.\nWe ended the quarter with a backlog of over 1,500 units as our conversion rate declined from 68% last year to 57% this year due to supply delays.\nWe have been benefiting from our 100% spec building strategy for entry-level homes.\nThe 10% year-over-year home closing revenue growth to $1.3 billion in the third quarter of 2021 was the result of the 4% increase in home closings and 7% higher closing ASP despite the mix shift to more entry-level products.\nThe 820 bp improvement in third quarter 2021 home closing gross margin to 29.7% from 21.5% a year ago was driven by the price increases over the past several quarters as well as the leveraging of our fixed costs on greater home closing revenue.\nOnce we're fully selling and closing from all 300 communities in 2022, we will be able to leverage the higher fixed overhead costs across the corresponding higher revenue.\nOur SG&A leverage of 9.3% remained better than our 10% expectation and continued to benefit from both greater closing volumes and higher ASPs.\nThe 80 bps year-over-year improvement and SG&A leverage from 10.1% in the third quarter of 2020 also included lower brokerage commissions in 2021 and cost savings from technology innovations that particularly benefited our sales and marketing efforts.\nThe third quarter 2021's effective income tax rate was 23.3% compared to 19.5% in the prior year.\nHigher closing volume, pricing power, expanded gross margin and the improved overhead leverage that we achieved this quarter all led to the 85% year-over-year increase in third quarter diluted earnings per share of $5.25.\nTo highlight a few year-to-date results through September 30, 2021, on a year-over-year basis, we generated an 85% increase in net earnings, orders decreased 1%, closing were up 15%, we had a 640 bp expansion of our home closing gross margin to 27.4%, and SG&A as a percentage of home closing revenue improved 90 bps to 9.4%.\nAt September 30, 2021, our cash balance was $562 million compared to $746 million at December 30, 2020.\nIt was down just $184 million despite an $815 million increase in real estate assets over the same time.\nOur net debt-to-cap ratio of 17.5% at September 30, 2021, remained low.\nWe repurchased over 95,000 shares during the quarter for $9.5 million.\nSince the end of the quarter, we repurchased an additional nearly 244,000 shares for another $24 million.\nToday, over $153 million remains in our share repurchase authorization program.\nWe expect cash generation to accrete once our 300 communities are operating and delivering homes in the back half of 2022.\nOur land book increased 46% from September 30, 2020.\nWith nearly 70,000 lots under control at the end of this quarter, we had 5.4 years supply of lots based on trailing 12-month closings, which was higher than our target range of four to five-year supply of lots under control.\nHowever, looking forward to the closing volume that we would generate once our 300 communities are actively selling in the middle of next year, the ratio drops back to our four to five year objective.\nWe secured about 9,800 net new lots this quarter compared to approximately 9,000 in the same quarter of 2020.\nThese new lots will translate to an estimated 45 net new communities, of which 87% are entry-level with an average community size of 196 lots.\nIn fact, our year-to-date finished lot cost for newly controlled lots is right around $75,000 a lot.\nDuring the third quarter of 2021, we continued to make excellent progress in our land development despite municipal delays and supply chain constraints, and we opened 40 new communities.\nWe grew our community count by 10 net communities from 226 at the start of the quarter to 236 actively selling communities at the end of the quarter.\nOn a year-over-year basis, we were also up 16% or 32 net communities from 204 at September 30, 2020.\nWe spent $526 million on land acquisition and development this quarter, which was 76% higher than last year's Q3 spending of nearly $300 million.\nWe continue to expect our annual land acquisition and development to be about $2 billion in 2021 and thereafter.\nAbout 64% of our total lot inventory at September 30, 2021, was owned and 36% was optioned compared to 58% owned and 42% option at September 30, 2020.\nWith more than 5,800 units in backlog and another almost 2,800 specs in the ground today, we are projecting 12,600 to 12,900 home closings for the full year of 2021, which we anticipate will generate $5.05 billion to $5.15 billion in home closing revenue.\nWe are lifting our full year 2021 guidance on home closing gross margin, which we now anticipate will be between 27.5% to 27.75%.\nWith an increase to the projected effective tax rate to 23%, we expect diluted earnings per share to be in the range of $18.75 to $19.40 for 2021, a year-over-year increase of over 70%.\nFor year-end 2021, we also anticipate around 250 active communities.\nWe are reiterating our commitment to 300 communities by June 2022, with around $2 billion of land acquisition and development spend projected for next year as well.\nThe continued significant investment in land acquisition and development as well as the meaningful growth in community count over the past two quarters to 236 communities as of September 30 demonstrates our ability to attain our strategic goal of 300 communities by mid-2022.", "summaries": "We also set two additional quarterly company records: we generated the highest quarterly home closing gross margin of 29.7% in company history as a result of pricing power, more than offsetting the elevated lumber and other commodity costs; and our quarterly diluted earnings per share of $5.25 was the highest in our company's history.\nThe 10% year-over-year home closing revenue growth to $1.3 billion in the third quarter of 2021 was the result of the 4% increase in home closings and 7% higher closing ASP despite the mix shift to more entry-level products.\nHigher closing volume, pricing power, expanded gross margin and the improved overhead leverage that we achieved this quarter all led to the 85% year-over-year increase in third quarter diluted earnings per share of $5.25.\nWith more than 5,800 units in backlog and another almost 2,800 specs in the ground today, we are projecting 12,600 to 12,900 home closings for the full year of 2021, which we anticipate will generate $5.05 billion to $5.15 billion in home closing revenue.\nWith an increase to the projected effective tax rate to 23%, we expect diluted earnings per share to be in the range of $18.75 to $19.40 for 2021, a year-over-year increase of over 70%.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0"}
{"doc": "As a reminder, I'll be referring to adjusted results today.\nFourth quarter revenues increased 5% sequentially to $498.5 million compared to our initial guidance range of $460 million to $485 million, and our revised guidance range of $494 million to $499 million.\nDuring the fourth quarter, our channel partners further reduced the inventory levels by approximately $22 million as expected, resulting in a reduction of approximately $70 million for the full year 2020.\nIncoming order rates were solid during the quarter, increasing 13% sequentially.\nThis resulted in a book-to-bill ratio of 1.10 times, including a robust 1.16 times in the Industrial Solutions segment.\nEPS increased 25% sequentially to $0.90, compared to our initial guidance range of $0.63 to $0.78, and our revised guidance range of $0.85 to $0.90.\nFree cash flow generation was $101 million in the quarter, which exceeded our expectations by approximately $11 million.\nAs a result, we exited the fourth quarter with cash on hand of $502 million, which provides ample flexibility as we pursue our strategic initiatives.\nFor the full year 2020, we delivered revenues of $1.863 billion and earnings per share of $2.75.\nFree cash flow generation was $86 million compared to our expectation of approximately $75 million.\nOn the cost side, we delivered on our commitments by successfully reducing SG&A costs by $40 million for the full year 2020.\nWe exited the year with a quarterly run rate savings of $15 million in the fourth quarter, so we are prepared to deliver the full $60 million in savings in 2021 as planned.\nThis represents approximately 300 basis points of incremental EBITDA margin expansion on an annual basis.\nTo that end, R&D spending increased 14% to $107 million in 2020, with approximately 65% of this investment dedicated to software development.\nWe also maintained capex spending of approximately $70 million for the year, to ensure that we have the capabilities and capacity to fully participate in the anticipated growth in our key markets.\nIn addition, we initiated a process to divest approximately $200 million in revenues associated with certain undifferentiated copper cable product lines.\nFinally, subsequent to the end of the fourth quarter, we announced the Bolton acquisition of OTN Systems for $71 million.\nWe expect the acquisition to contribute incremental revenue and earnings per share of approximately $36.11 million respectively during the 11 months of ownership in 2021.\nAfter 20 years with Belden, the last nine as our CFO, Henk has announced his departure next month following a transition of duties to Jeremy parks.\nRevenues were up $498.5 million in the quarter compared to $549.7 million in the fourth quarter of 2019.\nRevenues decreased 9.3% on a year-over-year basis and increased 4.8% sequentially.\nAfter adjusting for a $5.5 million favorable impact from acquisitions and a $14 million favorable impact on currency translation and higher copper prices, revenues declined 12.8% organically on a year-over-year basis.\nAfter further adjusting for changes in channel inventory levels, revenues decreased 6.1% organically from the prior year.\nOn a sequential basis, revenues increased 2.9% organically after adjusting for a $9.1 million favorable impact from currency translation and higher copper prices.\nAfter further adjusting for changes in channel inventory, revenues increased 9.6% organically on a sequential basis.\nIncoming orders were solid during the quarter, increasing 13% sequentially.\nThis resulted in a book-to-bill ratio of 1.10 times [Phonetic] including robust 1.16 in the Industrial Solutions segment, and a 1.04 in the Enterprise Solutions segment.\nGross profit margins in the quarter were 35.4% consistent with the third quarter.\nEBITDA was $74 million compared to $65.3 million in the prior quarter and $92.9 million in the prior year period.\nEBITDA margins were 14.8% compared to 13.7% in the prior quarter and 16.9% in the prior year period.\nAs Roel mentioned, we successfully executed our SG&A cost reduction program by delivering savings of $15 million in the fourth quarter and $40 million for the full year.\nWe expect to deliver the full $60 million in savings in 2021.\nWe increased R&D investments by approximately 15% in the fourth quarter and the full year 2020.\nAt current foreign exchange rates, we expect interest expense to be approximately $61 million in 2021.\nOur effective tax rate was 13.5% in the fourth quarter and 16.4% for the full year, as we benefited from incremental discrete tax planning initiatives.\nFor financial planning and modeling purposes, we recommend using an effective tax rate of 20% throughout 2021.\nNet income in the quarter was $40.5 million compared to $32.2 million in the prior quarter and $54.9 million in the prior year period.\nEarnings per share was $0.90 in the fourth quarter compared to $1.20 in the year-ago period.\nEarnings per share increased 25% sequentially from $0.72 in the third quarter.\nThe Industrial Solutions segment generated revenues of $217.8 million in the quarter.\nCurrency translation and copper prices had a stable impact of $9.2 million year-over-year and $5.8 million sequentially.\nAfter adjusting for these factors, revenues decreased 14% organically on a year-over-year basis and increased 7% sequentially.\nAfter further adjusting for changes in channel inventory levels, revenues declined 8% year-over-year and increased 10% sequentially on an organic basis.\nWithin this segment, Industrial Automation revenues declined 8% year-over-year and increased 9% sequentially on an organic basis after adjusting for changes in channel inventory levels.\nCybersecurity revenues declined 14% in the fourth quarter on a year-over-year basis and increased 16% sequentially.\nNotable bookings in the quarter included a Fortune 500 insurance company migrating from on-premise to-cloud based solutions, and a multinational financial services corporation expanding its coverage in preparation for expected future growth from acquisitions.\nNonrenewal bookings in this vertical increased 13% sequentially in the quarter and 31% for the full year.\nSaaS offerings represented approximately 25% of nonrenewal bookings in the quarter compared to 10% a year-ago.\nIndustrial Solutions segment EBITDA margins were 17.5% in the quarter compared to 15.6% in the prior quarter and 20.1% in the year-ago period.\nOur Enterprise Solutions segment generated revenues of $227.7 million during the quarter.\nAfter adjusting for $5.5 million favorable impact from acquisitions and a $4.8 million favorable impact from currency translation and higher copper prices, revenues declined 12% organically on a year-over-year basis.\nRevenues declined 2% sequentially after adjusting for a $3.3 million favorable impact from currency translation and higher copper prices.\nAfter further adjusting for changes in channel and customer inventory levels, revenues declined 3% year-over-year and increased 9% sequentially on an organic basis.\nRevenues in Broadband and 5G increased 8% year-over-year and 5% sequentially after adjusting for changes in customer inventory levels.\nThis supports continued robust growth in our fiber optics products, which increased 28% organically in 2020.\nRevenues in Smart Buildings market declined 12% year-over-year and increased 13% sequentially on an organic basis after adjusting for changes in channel inventory.\nEnterprise Solutions EBITDA margins were 11.5% in the quarter consistent with the prior quarter and compared to 13.7% in the prior year period.\nOur cash and cash equivalents balance at the end of the fourth quarter was $502 million compared to $391 million in the prior quarter and $426 million in the prior year period.\nWorking capital turns was 10.3 turns compared to 6.6 turns in the prior quarter and 8.9 turns in the prior year period.\nDays sales outstanding declined 8 days sequentially from 58 days in the prior quarter to 50 days.\nInventory turns was 5.2 turns compared to 5.0 turns in the prior quarter and 6.0 turns in the prior year.\nOur total debt principal at the end of the fourth quarter was $1.59 billion compared to $1.52 billion in the third quarter.\nNet leverage was 4.0 times net debt to EBITDA at the end of the quarter.\nThis is temporarily above our targeted range of 2 to 3 times and we expect to turn back to the targeted range as conditions normalize.\nAs a reminder, our debt is entirely fixed at an attractive average interest rate of 3.5%, with no maturities until 2025 to 2028.\nCash flow from operations in the fourth quarter was $134.7 million compared to $187.4 million in the prior year period.\nNet capital expenditures were $33.3 million for the quarter compared to $35.9 million in the prior period.\nFor the full year 2020, we generated cash flow from operations of $173.4 million compared to $276.9 million in 2019.\nThe full year net capital expenditures were $87.1 million compared to $110 million in 2019.\nAs a result, we generated free cash flow of $86.3 million in 2020 compared to $166.9 million in 2019.\nWe anticipate first quarter 2021 revenues to be between $490 million and $505 million, and earnings per share of $0.60 to $0.70.\nFor the full year 2021, we expect revenues to be between $1.99 billion and $2.050 billion, and earnings per share of $2.90 to $3.30.\nFor financial modeling purposes, we recommend using interest expense of approximately $61 million for 2021, and then effective tax rate of 20% for each quarter and the full year.\nIt continues to include the contribution of our copper cable product lines that we are in the process of divesting, which contributed approximately $200 million in revenue and $0.20 in 0PS in 2020.\nWe expect current copper prices and foreign exchange rates to have a favorable impact on revenues of approximately $80 million in 2021, but a negligible impact on earnings.\nWe expect consolidated organic growth in the range of 1% to 4% or up to $70 million, with solid growth in our Industrial Solutions segment, partially offset by declines in the Smart Buildings markets within our Enterprise Solutions segment.\nWe anticipate an incremental $36 million in revenue and $0.11 in earnings per share from the OTN Systems acquisition.\nConsistent with our commitment, we expect to realize the incremental $20 million in savings under our SG&A cost reduction program.\nThese savings represent $0.36 in EPS.\nFinally, a normalized effective tax rate of 20% along with modestly higher interest expense and share count represent an earnings per share headwind of approximately $0.20 for the year.\nFor the full year 2021, the high-end of our guidance implies total revenue and earnings per share growth of 10% and 20% respectively.", "summaries": "As a reminder, I'll be referring to adjusted results today.\nEPS increased 25% sequentially to $0.90, compared to our initial guidance range of $0.63 to $0.78, and our revised guidance range of $0.85 to $0.90.\nAfter 20 years with Belden, the last nine as our CFO, Henk has announced his departure next month following a transition of duties to Jeremy parks.\nRevenues were up $498.5 million in the quarter compared to $549.7 million in the fourth quarter of 2019.\nEarnings per share was $0.90 in the fourth quarter compared to $1.20 in the year-ago period.\nWe anticipate first quarter 2021 revenues to be between $490 million and $505 million, and earnings per share of $0.60 to $0.70.\nFor the full year 2021, we expect revenues to be between $1.99 billion and $2.050 billion, and earnings per share of $2.90 to $3.30.", "labels": "1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Diluted earnings per share was $0.56 per share compared to $0.57 last quarter and $0.83 a year ago.\nAdjusted diluted earnings per share was $0.89 per share compared to $0.23 last quarter and $0.97 a year ago.\nThe primary difference between reported and adjusted figures for the quarter was a $0.30 per share impact from a goodwill impairment of our mortgage reporting unit that Jamie will detail shortly.\nPeriod-end loan balances of $39.5 billion were down $364 million from the prior quarter, with commercial loan growth partially offsetting declines in the consumer portfolio.\n1% of loans had a full principal and interest deferral at the end of the quarter, down from 15% in May.\nTotal deposits of $44.7 billion were up $471 million from the prior quarter.\nBroad-based core transaction deposit growth of $1.6 billion allowed us to accelerate our deposit pricing and remixing strategy, which led to stable net interest income at $377 million.\nThe net interest margin declined three basis points to 3.10%, slightly better than we expected as headwinds from student loan sales and bond portfolio repositioning completed in the second quarter were partially offset by the favorable trends in deposit pricing and remixing.\nAdjusted non-interest revenue of $116 million was strong, up $20 million from the prior quarter.\nThe improvement was led by quarter-over-quarter increases in net mortgage revenues of $8 million and core banking fees of $5 million.\nAdjusted non-interest expense of $269 million was down $8 million from the prior quarter, led by an improvement of $5 million in employment expenses.\nProvision for credit losses of $43 million were down $98 million from the prior quarter.\nThe ACL ratio increased six basis points to 1.80%, excluding P3 balances.\nThe CET1 ratio increased 40 basis points to 9.3%, following strong core performance in the settlement of transactions we executed in the second quarter.\nThe total risk-based capital ratio increased 46 basis points to 13.16%, the highest level since 2014.\nAs a result, there has been a goodwill impairment for our mortgage reporting unit of $45 million.\nTotal loans declined $364 million in the third quarter as commercial loan growth helped offset reductions from P3 loan payoffs of $77 million and strategic asset dispositions of single service loans.\nExcluding the impact of asset dispositions and P3 payoffs, we had net loan growth of $245 million in the quarter.\nCommercial loans, excluding P3 balances, increased $291 million.\nConsumer loans declined $578 million, led by the disposition of roughly $185 million of non-relationship mortgages, along with continued declines in our lending partnership portfolios.\nAs shown on Slide 5, we had total deposit growth of $471 million.\nBroad based core transaction deposit growth of $1.6 billion offset the strategic declines in time deposits of $1.2 billion and broker deposits of $381 million.\nWe estimate approximately $2.3 billion or 80% of deposit balances associated with P3 loans remained on the balance sheet at the end of the quarter.\nThe cost of deposits fell by 14 basis points from the previous quarter to 39 basis points due to a combination of rates paid and deposit remixing.\nFor context, this compares to a low of 26 basis points in the third quarter of 2014.\nThese activities in an environment of lower for longer interest rates, combined with strong growth in core customer deposits, should allow us to get our total deposit cost to the 26 basis point lows of the prior cycle.\nSlide 6 shows net interest income of $377 million, stable from the previous quarter and included $12 million in fee accretion from our P3 loan portfolio.\nThere are $74 million of P3 processing fees remaining.\nEarlier this month, the SBA announced a streamlined forgiveness process for certain P3 loans of $50,000 or less.\nApproximately 7% of our P3 balances fall within this threshold.\nThere is approximately $10 million in fees associated with these loans, which will be accelerated when we receive the forgiveness proceeds.\nNet interest margin was 3.10%, down three basis points from the previous quarter.\nCore banking revenue improved by $5 million from the second quarter, primarily due to increased transaction activity as most components are gradually returning to pre-COVID levels.\nNet mortgage revenue of $31 million remained elevated, primarily due to increase in secondary revenues driven by higher loan sales and gain on sale.\nSecondary mortgage production was $654 million in the third quarter, which is an increase of $19 million or 3% from the second quarter's record production.\nAssets under management of $17.5 billion grew 6% from the previous quarter.\nSlide 8 includes non-interest expenses, which were $317 million or $269 million adjusted.\nAdjustments include $3 million in restructuring charges, primarily related to branch optimization, as well as the $45 million goodwill impairment previously discussed.\nTotal employment expenses were $5 million less than the previous quarter, primarily due to lower commissions, lower headcount and reduced COVID-related staffing expenses.\nThe voluntary retirement offer is expected to result in a onetime fourth-quarter expense of approximately $14 million and have a two-year payback.\nProvision for credit losses of $43 million includes net charge-offs of $28 million or 29 basis points.\nDowngrades in the hotel portfolio, one of the hardest hit industries, accounted for $603 million of the increase in criticized and classified loans.\nThere were $125 million in hotel loans that had principal and interest deferrals at the end of the quarter, which represents about 8% of the total hotel portfolio.\nOur latest economic outlook includes an unemployment rate of about 8% as of year-end before declining modestly in 2021.\nThis, along with credit migration and other portfolio activity resulted in an allowance for credit losses of $665 million, up $15 million from the previous quarter.\nThe allowance for credit loss ratio increased six basis points to 1.8%, excluding P3 loans.\nCET1 increased 40 basis points to 9.3% this quarter, that's an increase of 35 basis points from the end of 2019 and was accomplished while increasing the reserve by $382 million.\nThe total risk-based capital ratio of 13.16%, up 46 basis points from the second quarter was the highest since 2014.\nAt the end of the third quarter, we had $337 million in loans on a full principal and interest deferral, which was less than 1% of total loans.\nThe aggregate amount in deferment was well below the 3 to 5% range we estimated last quarter and down significantly from the 15% we referenced in our first quarter 10-Q filing.\nOf the $337 million in deferment at the end of the quarter, 50%, or $169 million were in the consumer book.\nThe $169 million in deferments represents approximately 2% of total consumer loans.\nCommercial deferments as of 9/30 were $168 million, or 54 basis points of the total commercial portfolio.\nFull P&I deferments were largely concentrated in the hotel and full-service restaurant segments, which comprise 85%, or $143 million of commercial deferments at the end of the quarter.\n94% have made a payment, while another 5 to 6% have not had a payment due or were in a grace period at the end of the quarter.\nOnly approximately 20 basis points of loans that exited a deferral status were past due are moved to nonaccrual status at the end of the third quarter.\nInclusive of these modifications, we estimate that total loans with accommodations, as of the end of September, remained below 3%, which was at the low end of the range we projected last quarter for full P&I deferrals.\nAs we mentioned on the previous slide, the hotel and full-service restaurant segment had a total of $143 million with a full principal and interest deferment as of 9/30, well below the original estimates.\nSynovus has $365 million of full-service restaurants, and using our portfolio cash inflow data, we estimate they are operating at an average of 85% of revenue compared to the prior year.\nThere were $18 million of full-service restaurant deferrals at the end of the third quarter.\nDuring the third quarter, we saw the portfolio year-over-year inflows improve from being down 6% in June to being up 3% in July and then settling in essentially flat with the prior year in August.\nDigital user enrollment is up 10% year to date, and we've experienced a 30% increase in the number of deposits being handled outside of our branch network.\nOur original financial objective of an incremental $100 million of pre-tax income remains the baseline for execution.\nOn the expense front, we are executing on the $25 million third-party spend program with work streams continuing to be implemented through the early part of 2021.\nOur plan for 13 branch closures in 2020 remains on track with additional back office real estate consolidation planned for 2021.\nAs Jamie mentioned, it is expected to have a onetime charge of approximately $14 million and have an earn-back period of less than two years.\nWe will continue to update and provide further details as we execute on the overall organizational efficiency program, and we remain confident in our ability to generate up to $65 million in savings overall.\nWhile we've been more focused on the efficiency initiatives out of the gate, we are progressing with revenue opportunities that were identified during the diagnostic phase with continued confidence in the pre-tax income range of 35 to $55 million.\nWe made significant investments in education, including donating $1 million to the United Negro College Fund to provide scholarships for African American students, who want to attend historically black colleges and universities or other higher learning institutions across our five state footprint.", "summaries": "Diluted earnings per share was $0.56 per share compared to $0.57 last quarter and $0.83 a year ago.\nAdjusted diluted earnings per share was $0.89 per share compared to $0.23 last quarter and $0.97 a year ago.\nThe primary difference between reported and adjusted figures for the quarter was a $0.30 per share impact from a goodwill impairment of our mortgage reporting unit that Jamie will detail shortly.", "labels": "1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Sales were $113.8 million in the quarter, down 2% in the third quarter of 2019 and up 35% sequentially.\nThird quarter gross margin was 32.4% compared to 32% in the same period in 2019, up 40 basis points and up 80 basis points sequentially from the second quarter of this year.\nThird quarter adjusted earnings per share was $0.34, up 17% from $0.29 in the third quarter of last year and up from $0.18 in the second quarter of 2020.\nWe delivered an EBITDA -- an adjusted EBITDA margin of 19%, up 230 basis points from 16.7% in the second quarter of 2020.\nNew business wins were $127 million in the third quarter, and we added seven new customers.\nWe ended the quarter with $132 million in cash and $106 million in debt.\nSince last quarter, those facilities have improved from approximately 60% capacity to more in the range of 90%.\nThe restructuring plan we announced on the last earnings call is progressing to plan and is expected to deliver an annualized earnings per share improvement of $0.22 to $0.26 by the second half of 2022.\nMore importantly, we are focused on returning to growth, targeting 10%, in line with our strategic plan, 5% organic and 5% through strategic acquisitions.\nNew business awards were $127 million for the quarter, the best quarterly performance this year.\nCumulative, EV and hybrid wins this year are approximately $75 million, and we expect further gains.\n15 countries and two U.S. states have announced phase outs of internal combustion engines in the 2030 to 2040 time period, with Norway aiming for 2025.\nWe expect EV penetration to reach 9% by 2025 and 22% by 2030.\nThe developments for ultra-low life high frequency TCXOs and OCXOs for millimeter wave and sub-6 gigahertz systems are progressing as we continue to gain design awards through a major telecom OEM.\nIn the U.S., the seasonally adjusted growth rate for 2020 is closer to 13 million units, down 21% for last year.\nWe expect next year to be in the 14 million unit range.\nOn-hand days of supply are now at 55 days, down from 65 days of supply in the third quarter of 2019.\nEuropean sales are forecasted to decline 24% from last year, and we expect 18.7 million unit levels in 2021.\nThe China market continues to be more robust, with volumes predicted to be down 9%, in the 21 million to 22 million range for this year and up to 24 million units next year.\nThird quarter sales were $113.8 million, down 2% compared to last year.\nSequentially, sales rebounded strongly, up 35% from the second quarter.\nSales to transportation customers decreased by 9% year-over-year.\nHowever, sequentially, we grew by 71%.\nSales to other end markets increased by 10% versus Q3 of 2019 and 5%, sequentially.\nOur temperature sensing acquisition had solid growth and added $6.6 million.\nOrganic sales to non-transportation customers were up 4% versus last year.\nOur gross margin was 32.4% for the third quarter, up 80 basis points compared to last quarter and up 40 basis points compared to last year.\nConditions remain uncertain due to the impact of COVID.\nAs a result of improved revenue and careful cost management, adjusted operating earnings were 13%, up 170 basis points from last year and up 450 basis points sequentially.\nOur year-to-date tax rate was approximately 24%, and we expect the full year rate to be in the range of 23% to 25%, excluding discrete items.\nThird quarter 2020 earnings were $0.34 per diluted share.\nAdjusted earnings per diluted share were also $0.34 compared to $0.16 last quarter and $0.29 in the third quarter of 2019.\nOur working capital -- our controllable working capital as a percentage of sales was 15.6% at the end of the third quarter.\nThis represents a significant improvement from 21.2% last quarter, and the team recognizes that we still have much work ahead of us to further improve our working capital performance.\nWe generated $25.6 million in operating cash flow in the third quarter.\nYear-to-date, we have generated $49 million in operating cash flow, up 21% compared to 2019.\nThe strong cash performance in the third quarter enabled us to reduce debt by $35 million.\ncapex was $3.2 million.\nFor the full year, we are expecting capital expenditures to be below 4% of sales.\nOn liquidity, our net cash position was $25 million, an improvement of approximately $20 million from the second quarter.\nWe have access to an additional $192 million through our revolving credit facility.\nAs we communicated earlier, more than 80% of our revenues come from sites that are running on SAP.", "summaries": "Third quarter adjusted earnings per share was $0.34, up 17% from $0.29 in the third quarter of last year and up from $0.18 in the second quarter of 2020.\nThird quarter sales were $113.8 million, down 2% compared to last year.\nConditions remain uncertain due to the impact of COVID.\nThird quarter 2020 earnings were $0.34 per diluted share.\nAdjusted earnings per diluted share were also $0.34 compared to $0.16 last quarter and $0.29 in the third quarter of 2019.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We reported 20% higher adjusted earnings per share over '19 and 5% over a very strong first quarter last year before we felt the full impact of the COVID-19 pandemic.\nConsistent with our track record of strong free cash flow, we also delivered record free cash flow of $125 million in the first quarter, which was up substantially from a very strong performance a year ago.\nWe had half of our Texas manufacturing facility operational within one week of the storm, and we were more than 95% operational within three weeks.\nAnd our progress hasn't gone unnoticed with Barron's adding Eastman to its list of the 100 Most Sustainable Companies for 2021, a true honor for us.\nDespite these headwinds, we expect a sequential increase in EPS, with second quarter adjusted earnings per share expected to be at or above second quarter of 2018 adjusted earnings per share of $2.22.\nWe expect to continue to benefit from about $100 million of full year tailwind for improved capacity utilization compared to last year when we aggressively managed inventory well below the decline in demand with our focus on cash.\nWe, therefore, expect adjusted earnings per share will be about -- be between $8.25 and $8.75 for the full year of '21.\nOn cash, we expect free cash flow to approach $1.1 billion, which is consistent with our expectations for stronger adjusted EBITDA.\nWe expect 2021 will be our fifth consecutive year of free cash flow greater than $1 billion, and we will work to grow free cash flow from here.", "summaries": "We, therefore, expect adjusted earnings per share will be about -- be between $8.25 and $8.75 for the full year of '21.\nOn cash, we expect free cash flow to approach $1.1 billion, which is consistent with our expectations for stronger adjusted EBITDA.", "labels": "0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "Now, let's discuss our third quarter results in which we achieved $0.91 in adjusted earnings per share, a 21% increase over Q3 of 2019 and adjusted EBITDA of $58 million, a 13% increase.\nAs for our growth metric, the average number of paid worksite employees in Q3 of 2020 increased by 1.7% sequentially over the Q2 period to 231,750, which was above the high-end of our expected range.\nNow you may recall that employee layoffs in our client base drove a 6% reduction in paid worksite employees from the outset of the pandemic in March through the low point in May of this year.\nAdditionally, client retention for both Q2 and Q3 has remained at our historical level of 99% and worksite employees continue to be added from new client sales.\nNow let's move on to gross profit, which increased by 8% over Q3 of 2019.\nNow turning to operating expenses, Q3 operating expenses included continued investment in our growth, including costs associated with a 10% increase in the average number of trained business performance advisors.\nThe Q3 year-over-year increase in total operating expenses of 15% was impacted by increased stock-based compensation costs.\nNow operating expenses excluding stock-based compensation and depreciation and amortization increased just 4.6% over Q3 of 2019.\nAdjusted cash has increased from $108 million at December 31, 2019 to $213 million at September 30th, while repurchasing 1.3 million shares of stock at a cost of $91 million, paying now $47 million in cash dividends and investing $69 million in capital expenditures to-date during 2020.\nBorrowings increased by $100 million over the nine months and $130 million remains available under our credit facility.\nAs Doug mentioned, client retention continued at historical levels of 99%, despite the economic pressure on small businesses in the current environment.\nIn addition, our booked sales since the pandemic have been approximately 70% of our pre-pandemic sales budget, which we believe is solid performance in a virtual selling environment.\nIn the third quarter, paid worksite employees from previously booked sales was 92% compared to the same period last year, demonstrating continued demand for our services and strong execution in enrolling new clients.\nDuring this period, we virtually trained over 350 BPAs in our Level 1, 2 and 3 and our certified Business Performance Advisor programs.\nOur trained BPA count increased 10% over the same period last year, positioning us well for our fall selling season.\nWe saw a drop in paid worksite employees of approximately 6% in two months, followed by a steady rebound over the following four months, supported by fiscal stimulus and easing restrictions.\nAs I mentioned last quarter, client interactions increased 300% and the average length of time of these interactions doubled.\nFor the fourth quarter, we are forecasting average paid worksite employees in a range of 236,500 to 238,500, a sequential increase of 2% to 3% over Q3 of 2020.\nThis equates to an expected decrease in average paid worksite employees of only 1% for the full year 2020 in the face of significant challenges for the small business community caused by the pandemic and its impact on the economy.\nWith an improved outlook for Q4 worksite employee growth, our current pricing strength and a range around expectations in our direct cost programs, particularly our benefits program, we're now forecasting Q4 adjusted EBITDA of $21 million to $30 million and adjusted earnings per share of $0.20 to $0.38.\nWhen combined with our Q3 outperformance, we're raising our full year 2020 earnings guidance and now forecasting adjusted EBITDA of $271 million to $281 million, an increase of 8% to 12% when compared to 2019.\nAs for full year 2020 adjusted EPS, we are now forecasting a range of $4.35 to $4.53, up from our previous guidance of $3.67 to $4.04.", "summaries": "Now, let's discuss our third quarter results in which we achieved $0.91 in adjusted earnings per share, a 21% increase over Q3 of 2019 and adjusted EBITDA of $58 million, a 13% increase.\nBorrowings increased by $100 million over the nine months and $130 million remains available under our credit facility.\nWhen combined with our Q3 outperformance, we're raising our full year 2020 earnings guidance and now forecasting adjusted EBITDA of $271 million to $281 million, an increase of 8% to 12% when compared to 2019.\nAs for full year 2020 adjusted EPS, we are now forecasting a range of $4.35 to $4.53, up from our previous guidance of $3.67 to $4.04.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "As shown on Slide 4, earnings per share from continuing operations was $1.96, an increase of $0.19 or 10.7% compared to our first quarter 2020 earnings per share of $1.77.\nGross margin increased more than $17 million over the first quarter of 2020.\nIn the past year, our utility distribution and customer count increased by 7.4%.\nWe projected capital investments for 2021 at approximately $200 million, and we're on track to achieve that target.\nOur first quarter capital investment totaled just under $49 million.\nEarlier today, our Board of Directors have approved an annualized dividend payment of $1.92 per share, a $0.16 per share or 9.1% dividend increase.\nThe $0.16 per share increase in the annualized dividend closely aligns our five-year earnings growth rate of 9.4% through December 31, 2020, with our five-year dividend growth rate of 9.5%, as shown on Slide 5, including this most recent increase.\nChesapeake Utilities has paid dividends to its shareholders without interruption for 60 years and has increased its annualized dividend every year since 2004.\nTurning to Slide 6, net income from continuing operations for the quarter was $34.5 million compared to $29 million for the same quarter of last year.\nThis represents a growth in net income of $5.5 million or approximately 19%.\nEPS from continuing operations for the first quarter compared to the first quarter last year grew by $0.19 to $1.96 per share from $1.77, representing growth of just under 11%.\nGrowth initiatives and customer consumption drove the growth rate in net income by 19%, while the earnings per share growth rate of 11% is a result of the significant amount of equity we successfully issued in the third and fourth quarters of 2020 via the ATM program and our various stock plans.\nGross margin increased 17.1% compared to the first quarter last year, while operating income grew, because of these impacts, by 22.5%.\nGross margin net of specific expense attributes grew $0.65 per share after tax.\nHigher earnings for the quarter reflect increased earnings across the business from: first, customer consumption, as Jeff mentioned primarily weather focused, was $0.26 per share; pipeline expansion projects another $0.11 per share; higher retail propane margins per gallon increased margin by $0.06 per share; organic growth in our natural gas distribution operations added $0.04 per share; contributions from recent acquisitions, including Elkton Gas and Western Natural Gas added $0.04 per share; the Hurricane Michael regulatory settlement also added $0.04 per share after associated depreciation and amortization of associated regulatory assets; and margin from Marlin increased by $0.03 per share; lastly, from our Florida GRIP Reliability and Infrastructure Program, we added $0.02 per share.\nThese increases were offset by the absence of property sales that occurred in the first quarter of last year, which represented $0.14 per share and the increased shares we added, that I just referred to, another $0.12 per share.\nGiven our opportunistic equity issuances over the past 12 months to take advantage of our strong equity market position.\nFinally, depreciation, payroll and facilities expenses basically drove our earnings per share down by $0.20 per share because of the growth in our business.\nAs you can see though first on Slide 9, the forecast for 2021 capital expenditures remains at our previously announced guidance of $175 million to $200 million.\nAgain, the investment is concentrated with approximately 80% budgeted in new regulated energy assets.\nYear-to-date, as Jeff mentioned, we've invested just under $49 million in new capital investments.\nAs you can see on Slide 10, as of the end of March, total capitalization was $1.4 billion, comprised of: approximately 52% stockholders' equity, which is now $726 million; we had 37% in long-term debt at an average fixed rate of 3.62%; and $156 million in short-term debt under our revolver at an average interest rate of 1.2%.\nChesapeake Utilities current market capitalization is approximately $2 billion.\nKey projects are expected to generate approximately $60 million and $67 million in gross margin for the years 2021 and 2022, respectively.\nPipeline expansions are expected to generate $6.7 million in incremental margin in 2021.\nThe Hurricane Michael proceeding settlement will again generate $11 million in gross margin in 2021, it remains at that level in 2022.\nWe're particularly pleased with the full integration of margin estimates of $5.8 million and $6.1 million for 2021 and 2022, respectively, from the acquisitions of Elkton Gas and Western Natural Gas.\nIn total, the incremental margin growth from these key projects and initiatives represents approximately $14.1 million for 2021 and $7.5 million for 2022.\nI realized that we've included a $1 million placeholder for RNG transportation on the slide for a couple of quarters, and have not yet disclosed the extent of anticipated RNG production-related investments.\nAs a final note, the Auburndale Pipeline, $679,000 and Boulden acquisition $3.9 million became fully in service in 2020, so these ongoing mature projects have been removed from this table.\nEastern Shore Natural Gas Del-Mar Energy Pathway expansion project currently under construction and our related distribution system expansion will bring our pipelines to within 1.5 mile of the Westover plant, and we will extend the distribution system to provide service.\nOur investment in the project is estimated at approximately $12 million, with in-service anticipated in late 2022.\nThe station will be the larger CNG fueling facility on the East Coast, with capacity to fuel approximately 185 semi-trucks per day.\nAt peak, we were fueling 160 CNG buses a day before the permanent pipeline and CNG fueling facilities were put in place.\nBased on this year's results, over 90% of the shares voted were in favor of the proposals presented before them.\nWhile we're beginning fiscal year of 2021 with very positive financial performance, as indicated by our earnings-per-share growth, capital investments, key projects and initiatives, and our dividend growth, as you can see on Slides 19 and 20, we're affirming our five-year capital guidance for the period of 2021 to 2025 at $750 million to $1 billion.\nOur 2025 earnings per share guidance range of $6.05 to $6.25 per share represents an average earnings per share growth of approximately 10% from our initiation of guidance at the end of 2017.\nFocused on delivering top quartile performance, including shareholder return, which has exceeded 16% compound annual growth for each period, one, three, five, 10 and 20 years through April 30, 2021.", "summaries": "As shown on Slide 4, earnings per share from continuing operations was $1.96, an increase of $0.19 or 10.7% compared to our first quarter 2020 earnings per share of $1.77.\nEPS from continuing operations for the first quarter compared to the first quarter last year grew by $0.19 to $1.96 per share from $1.77, representing growth of just under 11%.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For the full year, we reduced overhead spending by 24%.\nOur run rate in the fourth quarter represents nearly 27% drop over the 2019 quarterly average.\nWe began the year at just under $2.9 billion in net debt.\nWe delevered by nearly $400 million, fueled, in part, by free cash flow generation of $184 million.\nWe ended 2020 with net debt less than $2.5 billion.\nAnd in the Lower 48, we continue to deliver the highest daily gross margins among our peers.\nIn the fourth quarter, the combined gross margin from our Lower 48 drilling rigs and our U.S.\nAfter briefly testing the upper 30s in late October, the price of near-month WTI increased by 35% through the end of the year.\nRecently, WTI was trading above $61.\nIt was recently priced above $64.\nThe EIA reports consumption increased by more than 2% versus the third quarter.\nIn part, this contributed to a global inventory draw of over 200 million barrels.\nComparing the fourth quarter and third-quarter averages, the Baker Hughes Lower 48 land rig count increased by 23%.\nFrom the beginning of the fourth quarter through the end, the Anvers Lower 48 rig count increased by nearly 30%.\nOnce again, we surveyed the largest Lower 48 clients.\nThis group accounts for approximately 35% of the working rig count.\nTotal adjusted EBITDA was $108 million in the quarter.\nOur Lower 48 operation and our International and Drilling Solutions segments exceeded our expectations.\nWith this adjusted EBITDA performance, we generated approximately $66 million in free cash flow after funding $41 million in capital spending.\nOur global rig count for the fourth quarter was essentially stable at 131 rigs.\nGrowth in the Lower 48 in Canada largely offset the decline in international.\nIn our Lower 48 business, our reported daily rig margin of $9,541 exceeded our guidance and remained in line with the third quarter.\nIn the aggregate, these reduced our outstanding debt obligations by $284 million.\nAdjusted EBITDA in our Drilling Solutions segment increased sequentially by 44%.\nThe adjusted EBITDA margin in NDS widened to 32% in the fourth quarter.\nThis compares very favorably to 24% margins in the prior quarter.\nIn the fourth quarter, RigCLOUD was running on nearly all of our working rigs in the Lower 48.\nOur cumulative footage growth for these apps working together increased by 11% in the fourth quarter.\nOur cumulative well count was up by 12%.\nWe have an inventory of 40 dual fuel packages to satisfy market needs in the Lower 48.\nApproximately 15% of our operating rigs in the Lower 48 are currently running on either high-line power or bi-fuel.\nWe are also running 12 rigs in Canada with bi-fuel capability.\nThe Lower 48 industry has added 151 rigs or 67% since its low in August.\nOur working rig count in the region rose more than 50% during the quarter.\nOur working rig count in Saudi Arabia now stands at 38.\nThis leaves five expected to return over the next 12 months.\nThe net loss from continuing operations of $112 million in the fourth quarter represented a loss of $16.46 per share.\nThe fourth quarter included $162 million of pre-tax gains from debt exchanges and repurchases, partially offset by charges of $71 million, mainly from asset impairments, for a net after-tax gain of $52 million.\nFourth-quarter results compared to a loss of $161 million or $23.42 per share in the third quarter.\nThe third quarter included net after-tax gains of $6 million related to gains from debt repurchases, asset impairments, and severance costs.\nRevenue from operations for the fourth quarter was $443 million, a sequential gain of 1%.\nIn the Lower 48, despite some deterioration in the average pricing for our fleet, drilling revenue of $103 million increased by $6.9 million or 7% as our rig count improved by 11%.\nLower 48 rig count at 53.6 was up sequentially by 5.4 rigs, which is 2.4 rigs more than we had anticipated.\nDaily rig revenue in the Lower 48 at $20,950 decreased by about $800 as we continue to sign contracts at current market rates that are lower than the average for our fleet.\nIn aggregate, revenue in our other U.S. markets decreased by $3 million, reflecting a reduction in our offshore activity as one of our rigs finalized this contract in the prior quarter.\nInternational drilling revenue at $245 million decreased by $3.3 million or 1%.\nThis decrease was primarily related to declines in activity across several markets, as rig count fell by almost nine rigs or 12%.\nThe softer rig count was offset by approximately $4 million in revenue from early terminations and from the restoration of full-day rates for customers with negotiated COVID rates.\nCanada drilling revenue was $14.8 million, an increase of $4.1 million or 38%.\nRig count increased by 2.3 rigs on the usual seasonal ramp-up in activity.\nThe quarter also benefited from a $700 increase in revenue per day.\nNabors's Drilling Solutions revenue of $32 million, up $2.7 million or 9% primarily reflected strong increases in our high-margin performance drilling offerings, as well as our RigCLOUD installations.\nDuring the quarter, we continued to increase the penetration of these services with Nabors and third-party rigs while also benefiting from the higher Lower 48 rig count.\nRig Technologies revenue decreased by $1.1 million or 4% as several clients delayed deliveries beyond the end of the year.\nTotal adjusted EBITDA for the quarter was $108 million, compared to $114 million in the third quarter.\nThe decrease was driven by a $7.4 million reduction in our International segment and a more modest reduction in rig technologies.\nDrilling adjusted EBITDA of $62.2 million was up by $1.6 million or 3.1% sequentially.\nThe Lower 48 performance came in better than expected on the stronger rig count and higher margins.\nDaily rig margin of $9,541 was about $500 above the high end of our previous guidance and in line with the third-quarter level.\nFor the first quarter, we expect daily rig margins of approximately $8,500, driven mainly by the repricing of renewals as rigs continue to roll off pre-pandemic contracts and by the return to more normal levels of property taxes, with an adverse impact of approximately $600 per day.\nOur current rig count in the Lower 48 is 57 rigs.\nInternational adjusted EBITDA decreased by $7.4 million to $64.5 million in the fourth quarter or 10% sequentially.\nAverage international rig count was 62.6, a reduction of 8.7 rigs or 12%.\nDaily gross margin for the quarter was $13,500 as compared to $12,700 for the prior quarter.\nThe fourth quarter included approximately $800 per day in early termination revenue.\nTurning to the first quarter, we expect an international rig count increase of two to three rigs as several Saudi rigs returned to work progressively during the quarter and for gross margin per day to settle between $12,500 and $13,000 per day.\nOur current rig count in the International segment is 57 rigs.\nCanada adjusted EBITDA of $3.5 million increased by $1.4 million.\nRig count at 9.7 rigs was 2.3 higher sequentially.\nGross margins per day of $4,633 also increased due to the higher activity level.\nWe expect both rig count and daily margins to improve again in the first quarter by three rigs and $500, respectively.\nWe currently have 14 rigs operating in Canada.\nDrilling Solutions posted adjusted EBITDA of $10.3 million, up from $7.1 million in the third quarter or 44%.\nRig Technologies reported adjusted EBITDA of $0.5 million in the fourth quarter, a decrease of $800,000.\nThese actions were instrumental in helping Nabors deliver $184 million in free cash flow for the full year.\nIn 2020, we reduced overhead spend by 24%.\nThese reductions began in the second quarter and translated into cash savings of approximately $90 million over the last 9 months of the year.\nOur run rate in the fourth quarter represents a nearly 28% reduction over the 2019 quarterly average.\nThe decrease in overhead, combined with capex reductions of $170 million and dividend cuts of $7 million, translate into total cash savings of approximately $267 million versus our initial plan for 2020.\nIn the fourth quarter, net debt declined by $290 million to $2.49 billion.\nFree cash flow, defined as net cash from operating activities less net cash used for investing activities, totaled $66 million.\nThis compares to free cash flow of approximately $9 million in the prior quarter.\nThe fourth quarter included minimal interest payments as compared to semiannual interest payments of approximately $80 million in the third quarter.\nWhile our quarterly free cash flow was affected by some $30 million, we expect this situation to prove temporary.\nThese payments and other one-time annual outflows in the first quarter typically amount to about $30 million.\nThese transactions reduced our total debt obligations by $284 million and reduced our near-term maturities.\nDuring 2020, we reduced through repayments, buybacks or exchanges, near-term notes with maturities in or before 2023 by an aggregate amount of $1.5 billion.\nThese transactions reduced our debt obligations by an additional $22 million.\nCapital spending in the fourth quarter was $41 million, compared to $39 million in the prior quarter.\nFor all of 2020, capex totaled $190 million, $10 million less than we had planned.\nWe are targeting capex of $50 million for the first quarter and up $200 million for the full-year 2021, excluding Saudi newbuilds for SANAD.\nConsequently, a cash payment of roughly $50 million to each partner was approved.\nWith regard to our assets, we continue to produce leading margins in both the Lower 48 and international markets.\nUtilization of the X rig, as well as our other advanced Lower 48 models, has increased steadily since last summer.", "summaries": "The net loss from continuing operations of $112 million in the fourth quarter represented a loss of $16.46 per share.\nRevenue from operations for the fourth quarter was $443 million, a sequential gain of 1%.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We expect the momentum we generated in the first half of the year to carry through the second half, and we reiterate our full year 2021 adjusted EBITDA guidance range of $1.38 billion to $1.46 billion.\nFor the first half of the year, our adjusted EBITDA increased by 7% and our aggregates cash gross profit per ton expanded by 5% through a combination of volume growth, higher pricing and improved operating efficiencies.\nAdjusted EBITDA for the second quarter was $406 million, essentially unchanged versus the same quarter last year.\nWe achieved this result despite a $25 million headwind from much higher diesel and liquid asphalt costs.\nDiesel costs rose by $15 million in the quarter.\nLiquid asphalt costs were $10 million higher than the same period last year.\nEven after considering the energy headwind, our aggregates cash gross profit per ton grew by 2% in the quarter due to our team's consistent execution of our four strategic disciplines.\nWith a 4% increase in aggregates volume in the second quarter and the market's current visibility to demand, the pricing environment continues to improve.\nFreight-adjusted aggregates pricing increased 3% in the quarter, and the rate of growth improved sequentially throughout the quarter.\nAdjusted for mix, freight-adjusted price improved 2.6%, twice the growth rate realized in the first quarter.\nOur total cash cost of sales increased by 4% in the quarter versus the prior year.\nExcluding the diesel headwinds, cash cost of sales grew by less than 1%.\nFor the trailing 12 months, cash gross profit per ton was $7.26, and for the quarter, it was $7.83 per ton, moving ever closer to our current goal of $9 per ton.\nAnd on a trailing 12-month basis, return on invested capital was 14.8%, an increase of 60 basis points compared to the prior year period.\nThis improvement was comprised of an essentially unchanged invested capital base and a 4% increase in trailing 12-month adjusted EBITDA.\nAt June 30, our net debt-to-EBITDA was 1.3 times, reflecting $968 million of cash on hand.\nOur debt has a weighted average maturity of 15 years with no significant maturities in the near term.\nSubsequently, we executed a $1.6 billion delayed draw term loan which will be used to fund the acquisition along with cash on hand.\nAs a result, financing cost of $9 million for the bridge commitment was recognized as expense in the second quarter.\nAnd as a reminder, at the end of first quarter, we increased our expectation of the full year rate to between 23% and 24%.", "summaries": "We expect the momentum we generated in the first half of the year to carry through the second half, and we reiterate our full year 2021 adjusted EBITDA guidance range of $1.38 billion to $1.46 billion.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For example, we diverted a minimum of 90% of waste from landfills at more than 140 of our global facilities, increasing our global diversion rate to roughly 85% from about 70% last year.\nEven more impressive, at year end, 50 of our global facilities had achieved zero waste to landfill status.\nOur overall global primary product line was strong and benefited sales by almost 3% versus the prior year.\nGlobal steel drum volume fell by 1.5% per day versus the prior year.\nGIP's fourth quarter adjusted EBITDA rose by roughly $47 million due to higher sales, partially offset by higher raw material, manufacturing, and transportation costs.\nThe business also benefited from a $3 million dollar FX tailwind.\nProfits will be lower as the unprecedented run-up in steel costs provided a roughly $100 million tailwind to GIP's fiscal 2021 results that will not recur.\nPaper packaging's fourth quarter sales rose by roughly $120 million versus the prior year due to stronger volumes and higher published containerboard and boxboard prices.\nAdjusted EBITDA rose by roughly $10 million versus the prior year due to higher sales that were substantially offset by higher raw material, manufacturing, and transportation costs, including a significant $50 million -- $51 million drag from higher OCC index cost and an $8 million natural gas cost spike not contemplated in our guidance.\nThe business benefited from a $4 million legal settlement tailwind reported in SG&A that will not recur.\nFourth quarter volumes in our CorrChoice sheet feeder system were up 2.4% today versus the prior year.\nFourth quarter tube and core volumes were up 7% per day versus the prior year.\nFourth quarter net sales, excluding the impact of foreign exchange, rose 35% versus the prior year quarter due to stronger volumes and higher selling prices.\nAdjusted EBITDA rose by 57 million, including a 7 million combined tailwind from FX and a one-time legal settlement.\nKeep in mind our adjusted EBITDA result overcame an OCC index headwind of 51 million and roughly 40 million of non volume related transportation and manufacturing inflation, including an $8 million unforecasted natural gas cost spike.\nInterest expense fell by 9 million versus the prior-year quarter due to lower debt balances.\nOur fourth quarter GAAP and non-GAAP tax rate were both roughly 11%.\nFourth quarter adjusted Class A earnings per share more than doubled to $1.93 a share.\nFor fiscal '21, we delivered adjusted Class A earnings per share of $5.60 a share, a 74% improvement versus the prior year and a significant beat relative to our Q3 guidance.\nPart of the earnings improvement came from a lower-than-anticipated non-GAAP tax rate of 18.1%, which benefited from reserve releases due to audit settlements, and statute of limitation expirations.\nWe estimate the lower tax rate relative to the guidance we shared at $0.15 at -- to fiscal '21 results.\nFourth quarter adjusted free cash fell roughly $79 million versus the prior year.\nThat said, our team is controlling what it can with strong results and trailing 12-month average working capital as a percentage of sales, improved by a significant 140 basis points to a -- year over year to 10.8%.\nWe anticipate spending between 150 million and 170 million in capital expenditures in fiscal '22 and target growing our dividend in '22 as mentioned in previous calls.\nAt the midpoint, we anticipate generating $6.15 of adjusted Class A earnings per share in '22.\nInterest expense will be significantly lower in fiscal '22 as a result of our aggressive de-leveraging, and we expect it to evolve further when we move to refinance our 6.5% 27 senior notes sometime in the first half of calendar '22.\nWe anticipate '22 adjusted free cash flow between 400 million and 460 million.\nIt was a $222 million use in '21 as raw material cost inflation accelerated.\nAs an example, assuming a historic free cash flow of 11% in the midpoint of our '22 free cash flow guidance would imply a combined market cap of roughly $3.9 billion, or an increase of roughly 30%.\nAdjusted EBITDA earnings per share has gone from $2.18 to $5.60 with no stock repurchases.\nAnd adjusted free cash flow, which was $70 million in 2015 has averaged nearly $30 million in the last three years and will exceed $400 million in '22.", "summaries": "Fourth quarter adjusted Class A earnings per share more than doubled to $1.93 a share.\nWe anticipate '22 adjusted free cash flow between 400 million and 460 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "Regarding first quarter financial results, consolidated revenues were $787 million, with CooperVision at $561 million, up 11%, and CooperSurgical reaching a new all-time high of $226 million, up 30%.\nNon-GAAP earnings per share were $3.24.\nOur CooperVision growth of 14% was strong and diversified.\nWe grew nicely in all product categories, spheres, torics and multifocals, and all three regions posted great results, with the Americas up 8%, EMEA up 17% and Asia Pac up 19%.\nRegarding products, our daily silicone hydrogel lenses, MyDay, and clariti, posted strong results, growing 25%.\nFor our FRPs, we reported another solid quarter of 10% growth for Avaira and Biofinity, our silicone hydrogel two-week and monthly lenses.\nWe posted revenues of $20 million.\nAnd within this, MiSight grew 172%.\nOur team in China is strong, and our advisory board of key opinion leaders that are affiliated with hospitals representing over 50% of myopia management contact lens volume in China has us positioned for success in a market where childhood myopia rates are estimated to be over 80%, and we're reducing myopia as a priority for the government.\nIt cuts myopia progression by roughly 59% on average.\nTo conclude on myopia management, our momentum is strong, and we're still targeting roughly $100 million in sales for this fiscal year.\nTo wrap up on CooperVision, for calendar Q4, we estimate the global contact lens market grew 10%, with CooperVision growing 16%.\nThis demand is great, but it's still impacting fit activities such as in the U.S. where new fits are still roughly 8% below pre-COVID levels.\nMeanwhile, long-term macro growth trends remain intact with roughly one-third of the world being myopic today and that's expected to increase to 50% by 2050.\nIn the meantime, we had another strong quarter with organic growth of 9%.\nWe recognized roughly $34 million of revenues in the quarter as this was a stub period with only roughly one and a half months of revenue.\nOf this, $23 million was in stem cell storage and $11 million in fertility.\nIt's tough to get exact growth rates for a stub period, but growth for the business for the full equivalent fiscal quarter was 10%.\nWe posted sales of $97 million, up a very healthy 27% when excluding Generate and the small acquisition of Embryo Options from last January.\nWithin our office and surgical unit, we posted sales of $129 million, up 24% as reported, but down 3% when excluding Generate and other acquisitions.\nHaving said that, we did see growth in many areas such as our laparoscopic surgery closure products, and our acquired businesses grew nicely, especially Fetal Pillow in our labor and delivery area, which grew 160%.\nThis industry continues to grow nicely, and we estimate our addressable market is approaching $2 billion with 5% to 10% long-term annual growth.\nIt's estimated that one in eight couples has trouble getting pregnant due to a variety of factors such as increasing maternal age and that more than 100 million individuals worldwide suffer from infertility.\nFirst quarter consolidated revenues were $787 million, up 16% and up 13% organically.\nConsolidated gross margin decreased year over year by 90 basis points to 66.9%, driven primarily by currency, but also lower sales of PARAGARD, partially offset by lower manufacturing costs at CooperVision.\nOperating expenses grew 19% to 42.3% of revenues with the addition of Generate and higher investment activity.\nConsolidated operating margins were 24.6%, down from 26.9% last year due to the negative impact of FX and higher investing.\nInterest expense was $6.6 million on higher average debt, partially offset by lower interest rates.\nThe effective tax rate was 13.3%, higher primarily due to the Generate acquisition.\nNon-GAAP earnings per share was $3.24 with roughly 49.9 million average shares outstanding.\nFX negatively impacted us by $0.37 in the quarter, which was $0.02 worse than we forecasted at the time of our last earnings call.\nFree cash flow was solid at $109 million, comprised of $166 million of operating cash flow, offset by $57 million of capex.\nNet debt decreased by $1.6 billion to $3 billion, driven by the acquisition of Generate.\nAnd our adjusted leverage ratio increased to 2.71 times.\nDuring the quarter, we repurchased roughly 191,200 shares of the company's common stock for $78.5 million at an average purchase price of $410.41 per share, that's $410.41.\nRoughly $256 million remains authorized for repurchase under our program.\nPrior to the Russian invasion of Ukraine, this would have meant the midpoint for earnings per share would have been roughly $14.35, but currency has moved significantly against us over the past week.\nWith this, the new consolidated revenue range is $3.261 billion to $3.329 billion, up 6.5% to 8.5% organically.\nWithin this, CooperVision revenue guidance is $2.221 billion to $2.264 billion, up 7% to 9% organically.\nCooperSurgical revenues are expected to be between $1.04 billion and $1.065 billion, up 35% to 38% as reported or 5% to 7% organically.\nNon-GAAP earnings per share is expected to be in the range of $13.70 to $14.20.\nWe estimate interest expense around $42 million, which assumes a 25-basis-point rate increase, remembering that $1 billion of our debt is fixed -- is at fixed rates.\nWe estimate the full year tax rate to be around 14%.\nRegarding currency, on a year-over-year basis, the negative FX headwind is now roughly 3.5% to revenues and roughly 10% negative impact to EPS.\nRegarding Cook, we announced this acquisition on February 7 for $875 million.\nFrom a financial perspective, this business had roughly $158 million in sales in calendar 2021, and we expect long-term growth in the range of 5% to 9%.\nAdditionally, we expect year one non-GAAP earnings per share accretion of roughly $0.60.", "summaries": "Non-GAAP earnings per share were $3.24.\nFirst quarter consolidated revenues were $787 million, up 16% and up 13% organically.\nNon-GAAP earnings per share was $3.24 with roughly 49.9 million average shares outstanding.\nNon-GAAP earnings per share is expected to be in the range of $13.70 to $14.20.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "For multifamily, net applications were up 30% year-over-year in January for our urban properties, and year-to-date trends already reflect improvement in occupancy as we head into the spring leasing season.\nCurrently, multifamily occupancy is over 95%, excluding our two rent-controlled properties where we are not emphasizing occupancy gains as they offer limited rent growth potential in the current environment.\nWhile multifamily lease rates declined 3.6% and 5.7% on a gross and effective blended basis during the fourth quarter, we believe that December represented the height of rental rate pressure as lease rate changes improved in January on a month-over-month basis and concession declined.\nBoth urban and suburban renewal lease rate growth increased by 90 basis points during the fourth quarter to 1.7% and 3.1% respectively, and those renewal rate increases remained stable through January.\nAs a result of the strategic management of our lease expiration schedule, only 20% of our leases expired during the fourth quarter and only 17% expire in the first quarter.\nOur forecast indicates that commercial occupancy could increase by nearly 4% by year-end although there is still too much uncertainty to accurately forecast occupancy gains over the course of the year.\nFor example, in January, we've received the signed LOI from Sunrise Senior Living to renew their space at Silverline, which currently represents approximately 1.5% of office revenue.\nAdditionally, in January, we signed a 45,000 square foot five-year lease renewal with Giant Food that at Takoma Park, which represents our second largest retail tenant and over 6% of other rental income.\nWe also signed a 15,000 square foot 10-year lease renewal with our grocery-anchored at Montrose Shopping Center.\nThese two lease renewals represent approximately 10% of our retail rental income.\nThe average tenant size in our market and the space requirement that seizes the most volume is about 4,000 to 6,000 square feet, which is both our medium tenant size and the tenant size with the highest demand in the current environment.\nSpace Plus represents approximately 3% of our office portfolio and is very well positioned once decision-making picks up.\nSince the onset of the pandemic, the Washington Metro has benefited from fewer job losses than other major metropolitan areas and has already gained back roughly 180,000 jobs or 56% of the jobs lost from February to May.\nAdditionally, those job losses have been largely contained to non-office-using sectors as office-using sector employment in the Washington Metro market declined only 2% year-over-year in 2020 according to BLS data.\nOver the course of 2020, the tech sector contributed 36% of total leasing volume and more than 800,000 square feet of occupancy growth in Northern Virginia according to CBRE.\nTech-driven leasing demand drove positive absorption for the sector in the fourth quarter and that momentum has continued into January with the announcement of Microsoft's new 180,000 square foot sales headquarters in Rosslyn, next door to Arlington Tower and strategically located at the nexus of four bridges, five major road networks and three metro lines and offers easy access to the Pentagon and Downtown DC.\nGovernment contract awards should remain at record highs in 2021 and the cloud market alone is forecasted to grow 9% to 10% annually over the next three years according to JLL.\nFollowing our fourth quarter office asset sales and including stabilized income from Trove, multifamily comprises 53% of our NOI, while office and retail comprise 41% and 6% respectively.\nFirst, we made sure that we had ample liquidity at the onset of the pandemic by entering into a $150 million one-year term loan with extension rights.\nSecond, we closed and funded in December a $350 million 10-year Green Bond at 3.44%, and we used the proceeds to pay off the new $150 million term loan and our other $150 million term loan that was scheduled to expire in March of 2021.\nIn that regard, at year-end, we only had $42 million outstanding on our fully available $700 million line of credit, underscoring that we increased our liquidity further during the pandemic.\nWe collected 99% of cash and contractual rents during the fourth quarter, and our rent collections through January are in line with our quarterly trend.\nWe've offered deferred payment programs to residents who've been financially impacted by the pandemic and only a very small amount, about $15,000 of deferred multifamily rent remains outstanding.\nWe collected 99% of cash rents from office rents -- from office tenants during the fourth quarter and over 99% of contractual rents, which excludes rent that has been deferred.\nWe deferred rent associated with office tenants and that amount was $1 million as of January 31.\nAnd we expect to collect approximately 75% of that rent that was deferred by year-end with the balance thereafter.\nWe collected 94% of retail cash rents in the fourth quarter and excluding deferred rent, our collection rate was approximately 97%.\nNet deferred rent associated with retail tenants was $1 million as of January 31, 2021 and we expect to collect 40% of that rent at year-end.\nOverall, we've only deferred a small portion of rent and the expected cumulative cash NOI impact is less than $0.01 per share through year-end 2021.\nNet loss for 2020 was $15.7 million or $0.20 per diluted share, compared to net income of $383.6 million or $4.75 per diluted share in the prior year.\nCore FFO of $1.45 per diluted share for full-year 2020 was in line with the midpoint of our guidance range.\nOn a year-over-year basis, core FFO per share declined by $0.26 due to the strategic transactions completed during 2019 as well as the impact of the pandemic on leasing activity, parking income and credit losses.\nOverall, same NOI declined 5.4% year-over-year on a GAAP basis and 4.9% on a cash basis for the full-year 2020.\nMultifamily same-store NOI declined 0.9% and 1% on a GAAP and cash basis for the year and 7.2% and 7.3% on a GAAP and cash basis for the fourth quarter.\nThe full-year and fourth quarter declines were primarily driven by the year-over-year new lease rate declines at our urban assets, which comprise 100% of our same-store portfolio during 2020.\nDuring the fourth quarter, we focused on maintaining occupancy and ended at 94.3%, excluding Trove.\nOffice same-store NOI declined 7.1% and 6.4% on a GAAP and cash basis for the year and 12.7% on a GAAP and cash basis for the fourth quarter.\nSame-store GAAP NOI decreased for our remaining retail centers, which we report as other, by $2.1 million and $1.8 million on a GAAP and cash basis for the year and $0.7 million on a GAAP and cash basis for the fourth quarter.\nOverall, commercial credit losses reduced our core FFO by approximately $0.02 per share this quarter, which is higher than the third quarter impact and in line with the second quarter.\nOver 60% of the credit losses related to these leases were non-cash straight-line rent write-offs as our cash losses were relatively flat on a sequential basis.\nTurning to leasing activity for the fourth quarter and full year, we signed approximately 9,000 square feet of new office leases and 22,000 square feet of office renewals in the fourth quarter.\nOffice rental rates declined 5% on a GAAP and 9% on a cash basis for new office leases, but increased 22% on a GAAP basis and 8% on a cash basis for office renewals.\nRetail signed approximately 8,000 square feet of new leases and 3,000 square feet of renewals during the quarter and achieved rental rate increases of 13% on a GAAP basis for new retail leases and 3% on a GAAP basis for retail renewals.\nAnd as Paul referenced, we signed approximately 60,000 square feet of retail leases, representing 10% of our retail portfolio revenues since year-end.\nStarting with multifamily, total operating portfolio occupancy ended the year at 94.3%, which is in line with our expectations and represents a relatively stable trend since the end of the second quarter.\nWe've increased occupancy to slightly over 95%, excluding our two rent-controlled assets, and we are seeing effective lease rates trending in the right direction.\nWe expect Trove to add $100,000 of income in the first quarter, ramping up each quarter to approximately $1 billion by the fourth quarter of 2021 with significantly greater growth in 2022 over 2021 levels.\nAnd while we only have a small amount, approximately 20,000 square feet of signed new leases that have not yet rent commenced and approximately 20,000 square feet of signed LOIs for new leases that are expected to rent commence during 2021, we have minimal lease expirations during 2021.\nOur 2021 office lease expirations represent less than 3% of our overall revenue.\nAnd we believe that our renewals likely over go [Phonetic] or we are under negotiation for renewal for over 60% of that space.\nWe have a forecast that can result an occupancy growth of up to 4%, but that forecast is at risk if new leasing is delayed.\nFor example, that forecast includes a little over $3 million of new leasing revenue in the fourth quarter.\nFollowing the two retail renewals, which were executed in January and which represent 10% of our retail NOI, we have less than 3% of retail revenue expiring in 2021.\nNearly 60% of our current vacancy in Northern Virginia where job growth and absorption rates were the strongest and where we are seeing the most touring and leasing activity.\nOur parking garages' capacity can serve over 50% of our building population prior to the pandemic on average, and we still currently have at least 50% parking capacity available, which provides an option for companies that want to encourage employees to return to the office before sentiment improves toward public transportation.\nWe are guiding to a core FFO per share range of $0.29 to $0.32 per share for the first quarter.\nWe expect multifamily NOI to range from $20.25 million to $20.75 million, office NOI to range from $17.75 million to $18.5 million and other NOI of approximately $3 million.\nG&A is projected to range from $6 million to $6.25 million; interest expense is expected to range from $10 million to $10.25 million; and development expenditures are expected to range from $5 million to $7.5 million.\nSince our last earnings call, we sold two office assets and issued approximately 2 million shares through our ATM program at an average price of $23.86 per share to improve our balance sheet and position us to further strengthen our capital allocation once visibility aligns with opportunity to increase multifamily.\nThus we estimate at this time that these two initiatives, net of their interest impact, will further strengthen our balance sheet and lower full-year 2021 core FFO by approximately $0.09 per share.\nFor the full year, we expect G&A to range from $22.25 million to $23.25 million and interest expense to range from approximately $41.5 million to $42.5 million.\nAdditionally, assuming that leasing activity and utilization continues to increase and we achieve occupancy growth by year-end, we expect commercial operating expenses to increase by approximately $1 million by the fourth quarter from the first quarter expected range of $11.75 million to $12.25 million.", "summaries": "We are guiding to a core FFO per share range of $0.29 to $0.32 per share for the first quarter.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "Now we're not going to give too many specifics on 20201, but he'll give you some color on what we're seeing from Q4 and, again, the impact we think that's going to have on 2021.\nCertainly, I am, and on note, we said we're going to hit between 200 to 300 cumulative placements by the end of 2020.\nWe did realize our 2020 expectations of $100 million in gross revenue and almost $40 million in net of cannibalization revenue during the year.\nAnd if I just look at Q4 specifically, we grew about 30% over Q3, again, even with the increased pressures of the pandemic in Q4, so very excited with what we're able to do with Avenir Complete.\nAnd then finally for Signature ONE Planner, we demonstrated this again, strong sequential growth with registrations up nearly 25% in Q4 over Q3.\nAnd we expect utilization to continue to expand significantly in 2021 with really a goal of having more than 50% of our shoulder procedures using pre-surgical planning.\nThat has not been a focus for ZB.\nIn fact, the spin-off transaction that we're going to do over the next year serves to de-risk if not accelerate our path to that 4% to 5% growth rate that we have talked about and our 30% operating margin profile by the end of 2023.\nNet sales in the fourth quarter were $2.085 billion, a reported decrease of 1.9% and a constant currency decrease of 3.7% versus 2019.\nBeginning with Asia-Pacific, the region grew 2% versus Q4 2019 with growth across all three of our largest markets of Japan, China and Australia/New Zealand.\nAs expected, the EMEA region was hardest hit by COVID-19, decreasing 17.5% versus 2019, with all sub-regions in decline.\nLastly, the Americas region was about flat, decreasing 0.3% compared to 2019, driven by continued COVID headwinds in Latin America, in tandem with a softening U.S. market.\nTurning to our business performance for Q4, the Global Knee business declined 4.8% negatively impacted by the ongoing pressures in EMEA.\nHowever, the U.S. Knee business continued to grow, increasing 1.8%, and Asia-Pacific Knee business returned to growth, increasing 2.9%.\nOur Global Hip business decreased 3.4%, again driven by declines in EMEA.\nBoth U.S. Hips and APAC Hips continued their growth trends, increasing 1.4% and 1.3% respectively.\nSports, Extremity, and Trauma sales declined 3.3%.\nDental, Spine and CMFT continued to deliver better execution, increasing 0.8%, and finally, our Other category was down 9.3%.\nMoving to the P&L, we reported GAAP diluted earnings per share of $1.59 and adjusted diluted earnings per share of $2.11.\nOn an adjusted basis, with revenue down 3.7%, earnings per share was down about 10% driven by a lower operating margin and a higher share count, which more than offset the favorable tax rate in the quarter.\nAdjusted gross margin was 71.3%, sequentially better than Q3, but lower than Q4 2019.\nThe Q4 adjusted tax rate of 15% was better than the previous year due to geographic mix of income and certain discrete benefits in the quarter, related to recent audit settlements.\nTurning to cash and liquidity in the quarter, free cash flow totaled $329 million, higher than the same period in 2019, driven by better working capital and lower capital expenditures, and we utilized better-than-expected cash flow to pay down $250 million of debt ahead of schedule, ending the year with cash and cash equivalents of approximately $800 million.\nAnd in terms of capital allocation, we remain committed to maintaining our investment-grade rating and are planning to pay down an additional $500 million of debt in 2021.\nIn terms of the NewCo financial profile, 2019 and 2020 pro forma revenues totaled approximately $1.022 billion and $897 million respectively and is supported by a diversified geographic base with real opportunities for enhanced growth and margin expansion.\nZB delivered 2019 and 2020 pro forma revenue of $6.96 billion and $6.128 billion respectively.\nFor post-spin ZB, the transaction is expected to deliver an improved growth profile with accretion to our revenue growth of approximately 50 basis points over the course of our five-year strategic planning period.\nWe also expect that it will expand our adjusted EBITDA and operating margins on a pro forma basis by approximately 125 basis points.\nWe remain committed to at least 30% adjusted operating margins by the end of 2023, and with this transaction we have the opportunity to accelerate the timing of that goal.", "summaries": "That has not been a focus for ZB.\nNet sales in the fourth quarter were $2.085 billion, a reported decrease of 1.9% and a constant currency decrease of 3.7% versus 2019.\nMoving to the P&L, we reported GAAP diluted earnings per share of $1.59 and adjusted diluted earnings per share of $2.11.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "It is our responsibility at PCA to ensure that, first and foremost, we help provide for the well-being of our more than 15,000 employees and their families.\nYesterday, we reported first quarter net income of $142 million or $1.49 per share.\nFirst quarter net income included special items expenses of $0.01 per share, related primarily to costs and expenses associated with the COVID-19 pandemic.\nExcluding special items, first quarter 2020 net income was $143 million or $1.50 per share compared to the first quarter of 2019 net income of $187 million or $1.98 per share.\nFirst quarter net sales were $1.7 billion in both 2020 and 2019.\nTotal company EBITDA for the first quarter, excluding special items, was $311 million in 2020 and $371 million in 2019.\nExcluding special items, the $0.48 per share decrease in first quarter 2020 earnings compared to the first quarter of 2019 was driven primarily by lower prices and mix in our Packaging segment of $0.64 and Paper segment of $0.05; lower volumes in our Paper segment of $0.03; higher annual outage expenses, $0.04; higher depreciation expense, $0.04; other expenses, $0.01; and higher tax rate, $0.01.\nThe items were partially offset by higher volumes in our Packaging segment of $0.14; lower operating costs of $0.09; lower converting costs, $0.04; lower freight and logistics costs, $0.01; and lower interest expense, $0.04; and nonoperating pension expense, $0.02.\nThe results were $0.30 above the first quarter guidance of $1.20 per share, primarily due to higher volumes in our Packaging segment of $0.03 and our Paper segment of $0.01, higher prices and mix in the Packaging segment of $0.02 and lower operating costs of $0.15, resulting from the excellent fiber and energy usage and lower input prices in our mills.\nFreight and logistics costs were lower than expected by $0.03, as were converting costs, annual outage costs and other expenses, each lower than expectations by $0.02 per share.\nEBITDA, excluding special items in the first quarter of 2020 of $290 million with sales of $1.5 billion resulted in a margin of 20% versus last year's EBITDA of $334 million and sales of $1.5 billion or a 23% margin.\nOur containerboard production allowed us to maintain our industry-leading integration rate of approximately 95% by supplying the necessary containerboard to our box plants, who achieved an all-time record for total box shipments as well as a new first quarter shipments per day record.\nAs Mark indicated, our corrugated products plants achieved a new all-time record for total box shipments, which were up 5.6% over last year as well as a new first quarter record in shipments per day, which were up 3.9% compared to last year's first quarter.\nOutside sales volume of containerboard was 13% above last year's first quarter, primarily attributable to increased domestic demand with export demand slightly higher as well.\nDomestic containerboard and corrugated products prices and mix together were $0.54 per share below the first quarter of 2019 and down $0.06 per share compared to the fourth quarter of 2019.\nExport containerboard prices were down about $0.10 per share versus last year's first quarter and flat compared to the fourth quarter of 2019.\nEBITDA, excluding special items in the first quarter of $42 million with sales of $217 million or 19% margin compared to the first quarter of 2019 EBITDA of $55 million and sales of $240 million or 23% margin.\nOur Paper volume was also lower as expected, primarily due to the scheduled maintenance outage at our Jackson, Alabama mill; however, it was about 3% higher than we had assumed.\nWe had record first quarter cash generation with cash provided by operations of $237 million and record first quarter free cash flow of $166 million.\nThe primary uses of cash during the quarter included capital expenditures of $71 million and common stock dividends of $75 million.\nWe ended the quarter with $764 million of cash on hand or $913 million, including the cash we recently moved to marketable securities.\nOur liquidity at March 31 of over $1.2 billion is the highest ever for our company.\nAnd with the refinancing we completed in the fourth quarter of 2019, we have no debt maturities for the next 3.5 years.\nRegarding our announcement of taking our paper mill in Jackson, Alabama down for the months of May and June, our estimated second quarter financial impact of this decision is approximately $30 million or $0.24 per share.\nThe actual impact in the first quarter was $0.22 per share, and the estimated impact by quarter for the remainder of the year is now $0.09 per share in the second quarter, $0.16 in the third and $0.34 per share in the fourth quarter.\nThe full year estimate remains at $0.81 per share, as we mentioned previously.\nAlso, our full year interest expense is now expected to be $88 million versus $81 million.\nAnd our net cash interest is now estimated to be $92 million versus $84 million, primarily due to lower expected interest income.\nOur cash tax rate estimate is now slightly lower than our earlier estimate of 19%, partially due to the downtime we announced at our Jackson mill, and our effective tax rate remains at approximately 25%.\nAfter a thorough review of our capital spending plans, we are not changing the range of spending we provided previously, which was between $400 million to $425 million, nor are we changing our full year outlook for pension contributions or depreciation.\nHowever, due to the uncertain scope and duration of the pandemic and the timing of the global recovery and economic normalization, we're not able to properly quantify our guidance for the second quarter.\nWe know that we experienced a demand surge in our Packaging business in the first quarter, and the second quarter has also begun quite strong as well.", "summaries": "Yesterday, we reported first quarter net income of $142 million or $1.49 per share.\nExcluding special items, first quarter 2020 net income was $143 million or $1.50 per share compared to the first quarter of 2019 net income of $187 million or $1.98 per share.\nFirst quarter net sales were $1.7 billion in both 2020 and 2019.\nHowever, due to the uncertain scope and duration of the pandemic and the timing of the global recovery and economic normalization, we're not able to properly quantify our guidance for the second quarter.\nWe know that we experienced a demand surge in our Packaging business in the first quarter, and the second quarter has also begun quite strong as well.", "labels": "0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "Our expectation remains to be at the high end or above our 8% to 10% earnings per share growth target in the intermediate and longer term.\nIntermediate term expectations are primarily based on recovering sales momentum, strong fees on assets under management, incremental expense management initiatives and the combination of $900 million of buybacks related to our recent block sale and ongoing share repurchases.\nAfter introducing 10 new products since the beginning of the year, including the industry's first combined life plus long-term care policy built on a variable chassis, we have more updates planned and additional products in development.\nIn Annuities, we reported sales growth of 7% and over the prior year quarter, driven by our industry-leading product breadth and distribution force plus shelf space added over the last two years.\nTotal deposits were up 2% despite being negatively impacted by some sales shifting into the fourth quarter.\nWhile we reported slightly negative flows this quarter, trailing 12-month net flows remained strong at positive $1.2 billion, and we expect full year 2021 net flows to be positive.\nIn life insurance, our focus on expanding both consumer value propositions and distribution shelf space resulted in sequential sales growth of 32% this quarter with sales totaling $166 million and all product categories reporting double-digit increases.\nIn addition to the property and casualty distribution partnership we added in the second quarter -- We recently launched our variable MoneyGuard product at two of our largest strategic partners, providing 25,000 more advisors with access to this first-of-its-kind solution.\nLastly, our Group Protection business continues to be impacted by the pandemic particularly as the Delta variant affected more individuals under age 65 driving increased claims.\nWe achieved 5% premium growth over the prior year which is a result of a stronger persistency rate of nearly 90% and renewal rate increases implemented earlier this year.\n59% of Group Protection sales have come from these products as more individuals see the value of them.\nWe will continue to build on our progress and expect margins to grow toward the top end of our 5% to 7% target range.\nOur general account portfolio is predominantly comprised of fixed income investments, of which 97% are investment-grade equivalent.\nDuring the quarter, we invested new money at an average yield of 2.6% with 1/2 in shorter-duration assets versus 1/3 for the full year 2020.\nApproximately 60% of our purchases were in investments other than public corporates, providing diversification and good relative value and yielding approximately 100 basis points over comparability rated public corporates.\nLastly, our alternative investment performance was once again strong with an 8% return in the quarter, exceeding our long-term targeted quarterly return of 2.5%.\nIn sum, our underlying earnings power is improving, and we remain confident in our ability to grow earnings per share at or above our 8% to 10% target range.\nLast night, we reported third quarter adjusted operating income of $307 million or $1.62 per share.\nAlso, this quarter's results were impacted by pandemic-related claims, which reduced earnings by $180 million or $0.95 per share.\nWhile results benefited from strong performance in the alternative investment portfolio, boosting earnings by $89 million or $0.47 per share above target.\nNet income totaled $318 million or $1.68 per share, boosted by gains in the investment portfolio and strong performance from the variable annuity hedge program.\nConsolidated adjusted operating revenue grew 9% from the prior year, which included growth in each of the four businesses.\nAverage account values increased 17%, and book value per share, excluding AOCI, grew 8% and stands at $76.96, an all-time high.\nOperating income for the quarter was $338 million, which included a $5 million net unfavorable impact from our annual review.\nCompared to $196 million in the prior year quarter, which included a $101 million net unfavorable impact from the annual review.\nAdjusting for notable items in both periods, operating income increased 15% from the prior year quarter, driven by record average account values of $170 billion, up 17% over the past year.\nThe current quarter included $10 million of favorable alternative investment income.\nThe expense ratio improved 80 basis points compared to the prior year period as our focus on expenses continues to benefit the bottom line.\nReturn metrics remained solid with return on assets coming in at 80 basis points and return on equity at 26%.\nRisk metrics on our VA book once again demonstrate the quality of our in-force with a net amount at risk at 63 basis points of account values for living benefits and at 43 basis points for death benefits.\nRetirement Plan Services reported operating income of $60 million compared to $50 million in the prior year quarter, with the increase driven by higher fees and account values, continued expense efficiency and higher alternative investment income, which was $6 million favorable to our expectation in the current quarter.\nOur annual review had no impact in the current quarter, but did have a net unfavorable impact of $3 million in the prior year quarter.\nFavorable equity markets drove average account values up 21% to $97 billion.\nThe expense ratio improved 80 basis points over the prior year quarter as revenue growth combined with continued diligent expense management contributed to improved results.\nBase spreads, excluding variable investment income, compressed 10 basis points versus the prior year quarter, in line with our stated 10 to 15 basis point range as crediting rate actions continue to take hold.\nOperating income for the quarter was $93 million which included a $26 million net unfavorable impact from our annual review compared to an operating loss of $311 million in the prior year quarter, which included a $440 million net unfavorable impact from the annual review.\nAdditionally, the current quarter included an unfavorable notable item of $19 million related to a legal expense associated with the reinsurance arbitration award.\nAdjusting for notable items in both periods, operating income increased 7% from the prior year quarter, driven by higher alternative investment income, as the current quarter included $65 million compared to $37 million in the prior year quarter.\nElevated mortality related to the pandemic was $60 million in the quarter compared to $70 million in the prior year quarter.\nThis quarter's impact for 10,000 COVID deaths of $6 million was down year-over-year as expected, but was up sequentially and as the severity of our average COVID claim was elevated.\nIn addition to the impacts of the pandemic, underlying mortality was negatively impacted by $34 million.\nI'd point out that we experienced favorable underlying mortality in the prior two quarters, and when viewed on a year-to-date basis, our actual to expected mortality ratio remains under 100%, better than expected.\nEarnings drivers continue to grow, with average account values up 9% and average life insurance in-force up 7% over the prior year.\nBase spreads, excluding variable investment income, declined 13 basis points compared to the prior year quarter, above our five to 10 basis point expectation.\nOur expense ratio improved 30 basis points over the prior year quarter as our efficiency efforts continue to benefit margins.\nGroup Protection reported an operating loss of $32 million which included a $16 million net favorable impact from our annual review of reserve assumptions compared to operating income of $6 million in the prior year quarter, which included a $3 million net unfavorable impact from the annual review.\nAdjusting for notable items in both periods, operating income decreased from $9 million to an operating loss of $48 million, driven by higher mortality impact from the pandemic.\nThe current quarter also included $6 million of favorable alternative investment income.\nOn a sequential basis, pandemic-related claims in the quarter negatively impacted earnings by $120 million compared to $28 million in the second quarter and included $107 million in life claims and $13 million in disability claims.\nExcluding the annual review of reserve assumptions, pandemic claims and favorable alternative investment income, the group margin of 5.9% was consistent with the prior quarter and in the middle of our 5% to 7% targeted range.\nThe loss ratio was 87.8% in the quarter, an 8.5 percentage point sequential increase.\nExcluding pandemic-related claims and the impact of the assumption review, the loss ratio improved 20 basis points to 75.9%.\nWe ended the quarter with $10.9 billion of statutory capital and estimate our RBC ratio at 63%.\nAs a reminder, our RBC ratio includes 25 percentage points from noneconomic goodwill associated with the Liberty acquisition that we expect will go away by year-end.\nCash at the holding company stands at $754 million, above our $450 million target as we have prefunded our $300 million 2022 debt maturity.\nWe deployed $200 million toward buybacks in the third quarter.\nIn line with our goal communicated last quarter to have full year buybacks in line with pre-pandemic levels of approximately $600 million, excluding any incremental buybacks from transactions.\nOur block sale with Resolution Life, which we announced in September and closed on October 1, generated approximately $1.2 billion of capital, $900 million of which we plan to use for incremental share repurchases.\nWe expect these repurchases to be completed by the end of the first quarter of 2022 and began the incremental buybacks in October, via a $500 million accelerated share repurchase program.\nAdditionally, we announced a 7% increase in our quarterly dividend this quarter.\nAs of the end of 2020, the total net recurring benefit from our strategic digital program is $80 million, on track with our target.\nIn addition to these savings, we expect to achieve $260 million to $300 million in run rate savings through Spark as we exit 2024, with benefits growing steadily starting this year, and ramping up in the out years.\nThe total expected onetime investment to achieve the savings is $350 million to $410 million including the $57 million in investments we've made already this year.", "summaries": "Last night, we reported third quarter adjusted operating income of $307 million or $1.62 per share.\nNet income totaled $318 million or $1.68 per share, boosted by gains in the investment portfolio and strong performance from the variable annuity hedge program.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Adjusted segment operating profit was $1 billion, up 18% versus the third quarter of 2020 and our 8th consecutive quarter of year-over-year OP growth.\nOur trailing fourth quarter adjusted EBITDA was about $4.6 billion, almost a $1 billion more than a year ago.\nAnd our trailing fourth quarter average adjusted ROIC was 9.6%, significantly higher versus the year-ago period.\nSo when we talked about the dramatic transformation of our portfolio over the last 10 years, it's not a discrete event.\nWe are continuing to invest in key nutrition categories as demand for alternative protein grows from $10 billion to $30 billion over the next decade.\nAnd with global demand for pet food grow into the $140 billion in the coming years.\nWe are continuing our growth with a 75% ownership stake in PetDine.\nIn the early of microbiome, we've signed an agreement with Vland Biotech to launch a joint venture that we perfectly positioned to help meet $1 billion in retail demand for probiotics in China.\nAnd yesterday, we announced a memorandum of understanding with Gevo to explore potential joint venture, one of which would include our Columbus and Cedar Rapids dry mills and our ethanol assets indicator transitioning 900 million gallons of ethanol production to support growing demand for low carbon sustainable aviation fuel.\nThe U.S. and EU have set goals that together with support almost 4 billion gallons of annual sustainable aviation fuel production by 2030 and more than 45 billion by 2050.\nThese efforts and enable in biosolutions to deliver 10% annualized revenue growth including more than $80 million in new revenue wins in the first nine months of this year and we believe there are many new opportunities to come.\nOverall results were significantly lower versus the prior year quarter, driven by approximately $50 million in that timing effects that should reverse in coming quarters, as well as $54 million in insurance settlement recorded in the prior year period, and lower export volumes caused by Hurricane Ida.\nGlobal trade continues its strong performance.\nResults were also driven by about $70 million in net positive timing effects in the quarter.\nRefined Products and Other results were significantly higher than prior year period, driven by positive timing effects of approximately $80 million, our expected to reverse in future quarters.\nOn Slide 8, the Nutrition business remains on its solid growth trajectory was 17% higher revenues and 15% on a constant currency basis and 20% higher profits year-over-year and continued strong EBITDA margins.\nThe human nutrition team delivered revenue growth of 12% year-over-year on a constant currency basis, helping to drive 9% higher profit, higher volume improved pilot mix, particular strength in beverage drove strong flavor results in EMEA in North America, partially offset by lower results in APAC.\nAninal Nutrition profits were nearly double the year-ago period and sales were up 19% on a constant currency basis, driven primarily by the strength in the mineral assets as well as feed additives and ingredients, partially offset by higher costs in LATAM and slower demand recovery in APAC.\nLooking ahead, we expect nutrition to continue on its impressive growth path with strength across the Human and Animal Nutrition leading to strong year-over-year earnings expansion in the fourth quarter and a 20% full year growth versus 2020.\nIn the corporate lines, unallocated corporate costs of $230 million were driven primarily by higher IT offerings and project-related costs and transverse cost into the centralized centers of excellence in supply chain and operation.\nThe effective tax rate for the third quarter of 2021 was approximately 18%.\nWe anticipate our calendar year adjusted effective tax rate to be the upper end of our previously communicated range of 14% through 16% and potentially a bit higher depending upon the geographic mix in the fourth quarter.\nOur balance sheet remains solid with a net debt to total capital ratio of about 26% and available liquidity of about $11.5 billion.\nAnd nutrition will continue on its strong growth trajectory in line with our 15% per annum trend rate growth and on its way to $1 billion in operating profit in the coming years.\nOf course, there are things we continue to watch including energy costs and inflation more widely and much abilities to meet needs in the enduring trend areas of food security, health and wellbeing and sustainability and a truly unparallel team of nearly 40,000 colleagues around the world, we remain very optimistic in a strong year to come.", "summaries": "Global trade continues its strong performance.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In 2021, we delivered earnings of $2.03 per share, invested more than $230 million in our water and wastewater systems, successfully processed our general rate case in Connecticut, obtained approval for a Step 1 of a multiyear rate plan for the new water treatment facility in Maine, and grew our customer base in our Texas operation by 20% through acquisitions and organic growth.\nThat is why we've committed to reducing greenhouse gas emissions, 50% by 2030 when compared with a 2019 baseline, a science-based target that aligns with the Paris Agreement to limit the warming of the planet.\nOur customers are still under a mandatory conservation order that requires a 15% reduction in water usage compared with 2019.\nOur utilities work with customers experiencing onetime or ongoing financial hardships through bill forgiveness, flexible payment arrangements and in California and Connecticut through our Water Rate Assistance Programs that provides a 15% reduction on water bills for income eligible customers.\nIn California, we applied for funds on behalf of our customers in need and received a check for almost $10 million from the California Water and Wastewater Arrearage Payment Program that will provide immediate relief for our customers who have been in arrears.\nEarlier this month, Connecticut Water was recognized as a top workplace in the United States, one of just 1,100 companies across the country to achieve that distinction.\nFourth quarter revenue was $139.7 million, a $4 million increase over reported fourth quarter 2020 revenue.\nNet income for the quarter was $18 million or $0.60 per diluted share.\nThis compares with net income of $13.3 million or $0.46 per diluted share for the fourth quarter of 2020.\nDiluted earnings per share for the quarter was primarily driven by cumulative rate increases of $0.34 per share, decreased production cost due to lower customer usage of $0.30 per share, the sale of nonutility property of $0.29 per share, and recognition of the impact of our California Water Conservation Memorandum Account, or our WCMA, of $0.12 per share.\nThese increases were offset by a decrease in customer usage of $0.40 per share, an increase in per unit production cost of $0.20 per share and the impairment of a long-lived asset of $0.09 per share.\nIn addition, in the fourth quarter of 2020, we recorded a tax benefit of $0.14 per share related to flow-through items and the impact of such items on lower fourth quarter pre-tax earnings.\nThe $4 million increase in revenue was primarily due to $10 million in cumulative rate increases and $3.4 million in the recognition of balancing and memorandum accounts in California, which includes $3.2 million attributable to the WCMA.\nThese increases were partially offset by a $10.5 million decrease in customer usage.\nOur Connecticut utility will benefit from an increase in our annual revenue requirement by approximately $9.9 million beginning January of 2022.\nWater production expense decreased $1.8 million compared to the fourth quarter of 2020.\nThe decrease included $7.8 million due to lower customer usage partially offset by $5.3 million in higher average per unit water production cost.\nOther operating expenses decreased $1.5 million during the quarter, primarily due to a gain on the sale of nonutility property of $7.5 million, partially offset by increased general and administrative expenses of $1.6 million and the recognition of an impairment on a long-lived asset of $2.2 million.\nThe effective income tax rate for the fourth quarter was 15%, compared to net negative 7% for the fourth quarter of 2020.\nSJW Group sold and issued approximately 355,000 shares of common stock with a weighted average price of $70.4 per share, and received approximately $24 million in net proceeds under the agreement in 2021.\nOn December 1, 2021, San Jose Water Company issued $50 million in its Series O senior notes.\nThe notes are unsecured, accrue interest at 3% and mature 30 years from the issue date.\nIn addition, on December 1, Connecticut Water Company issued $50 million of its Series 2021 Senior B notes.\nThese notes are also unsecured, accrue interest at 3.10%, and mature 30 years from the issue date.\n2021 revenue was $573.7 million, a $9.2 million increase over the prior year.\nNet income in 2021 was $60.5 million or $2.03 per diluted share, compared to $61.5 million or $2.14 per diluted share in 2020.\nCumulative rate increases contributed $0.86 per share, decreased production costs due to lower customer usage added $0.51 per share, and the sale of nonutility property contributed $0.28 per share.\nIn addition, various regulatory mechanisms and balancing and memorandum accounts added $0.21 per share, and the recognition of the California WCMA contributed $0.12 per share.\nThese increases were offset by a decrease in customer usage of $0.93 per share, a production cost price increase of $0.44 per share, and an increase in administrative and general expenses of $0.25 per share.\nIn addition, depreciation expense increased $0.20 per share.\nCalifornia surface water production resulted in a decrease of $0.15 per share and the long-lived asset impairment in Texas decreased earnings by $0.08 per share.\nThe 2021 increase in revenue was primarily due to $25.2 million in cumulative rate increases, $2.5 million in the net recognition of certain regulatory mechanisms in Connecticut and Maine, and $3.9 million in the recognition of balancing and memorandum accounts in California, including $3.2 million attributable to the WCMA, and $2.9 million in revenue from new customers.\nThese increases were partially offset by $24.7 million in decreased customer usage.\nWater production expenses increased $3.3 million in 2021.\nThe increase was primarily due to $11 million -- $11.6 million in higher average per unit water production cost, $3.9 million due to a decrease in surface water supply production, and a $1.3 million increase in California cost recovery balancing and memorandum accounts.\nThese increases were partially offset by $13.5 million in lower customer water usage.\nOther operating expenses increased $12.4 million in 2021, primarily due to $7.6 million in higher general and administrative expenses, $5.1 million in increased depreciation and amortization expenses, and $3.9 million in higher maintenance costs.\nAs noted earlier, in the fourth quarter of 2021, we recognized an impairment on a long-lived asset of $2.2 million and a gain on the sale of nonutility property of $7.5 million.\nThe change in other income and expense for the year was primarily the result of the $3 million TWA holdback amount, which I discussed during our second quarter earnings call.\nWe added approximately $64.1 million in company-funded utility plant in the fourth quarter of 2021, bringing total company-funded additions to $233.9 million for the year.\nOur 2021 cash flow from operations increased approximately $26 million over the same period in 2020.\nThe increase was primarily due to an increase in collections of previously billed and accrued receivables of $13 million, an increase in general working capital and net income adjusted for noncash items of $6.8 million and a $5.2 million decrease in the payment of amounts previously invoiced and accrued due to lower fourth quarter activity.\nIn addition, in 2020, we made a $5 million upfront service payment related to a concession agreement amendment that did not recur in 2021.\nThese increases were partially offset by an increase in the crude water production costs of $4 million.\nAt the end of 2021, we had $197 million available on our bank lines of credit for short-term financing of utility plant additions and operating activities.\nThe average borrowing rate on our 2021 line of credit advances was approximately 1.32%.\nIn 2022, SJW Group's subsidiaries plan to invest $223 million in infrastructure improvements to serve our customers in California, Connecticut, Maine and Texas, more than $1.3 billion in infrastructure investments as planned across the organization over the next five years.\nOur board has authorized a $223 million capital spending plan for 2022.\nThe plan includes budgeted investments of $115.1 million in California, $61.4 million in Connecticut, $21.8 million in Maine and $24.5 million in Texas.\nThe application seeks an increase of nearly $88 million in the revenue requirement over the three-year period, authorization of a $435 million capital budget over the three years, and recovery of $18.5 million from balancing and memorandum accounts.\nThe application requests an increase in revenue to support a return on equity of 10.3%, an adjustment on the proposed capital structure of 54.55% equity and 45.45% debt, partially offset by a decrease in the cost of debt to 5.48%.\nSan Jose Water's advanced metering infrastructure application is pending before the CPUC, An all-party settlement agreement was submitted to the CPUC for adoption that would authorize infrastructure investment of $100 million over four years, outside of the capital budget requested in the GRC to deployment of AMI.\nThe final decision allows CWC to increase annual revenues by an additional $2.1 million above the $5.2 million originally authorized in the July 28, 2021 GRC decision for a total of $7.3 million authorized through the GRC.\nPURA also authorized a WICA of 2.44% effective on January 1, 2022.\nThe increase was for more than 2020 -- was more than $22 million in completed WICA projects, many of which were not considered by PURA in the GRC because of the deadline and the GRC proceeding for pro forma capital additions.\nThe new WICA is expected to generate $2.6 million in additional revenue.\nBetween July 2021 and January 22, the authorized revenue for CWC increased to $9.9 million through the GRC, request for reconsideration and the WICA filings.\nMaine Water Company's previously received approval from the Maine Public Utilities Commission for an innovative REITs moving mechanism that provides a more gradual ramp to new rates, driven by the $60 million project to replace a 138-year-old treatment plant in the Biddeford/Saco division.\nA supplemental rate application for $6.9 million is pending with the MPUC, which would be the second step in a multiyear rate plan for the project.\nMaine Water received MPUC approval for a 3% increase in WISC, effective January 1, 2022, for a $1.9 million infrastructure project in the Skowhegan division.\nCombined, these completed acquisitions added nearly 1,800 service connections and expanded SJWTX's service area.\nOverall, the company serves more than 24,000 service connections between Austin and San Antonio, and three of the five fastest-growing counties in the United States, which include Comal, Hays and Kendall Counties.\nSJWTX has more than tripled its customer base over the past 15 years, providing service to about 70,000 people today.\nThe current level at Elsman will support approximately 1.3 billion to 1.4 billion gallons in production during the balance of 2022.\nFor production year to date, water produced from San Jose Water Company's surface water supplies was approximately 350 million gallons, which was generally from runoff until recently supplemented by releases from Elsman.\nIn January of 2022, the board authorized a 5.9% increase in SJW Group's 2022 dividend to $1.44 per share as compared with the total dividends paid in 2021.\nWe are proud to have continuously paid a dividend for over 78 years, and have increased the annual dividend in each of the last 54 years, delivering value to our shareholders.", "summaries": "Fourth quarter revenue was $139.7 million, a $4 million increase over reported fourth quarter 2020 revenue.\nNet income for the quarter was $18 million or $0.60 per diluted share.", "labels": 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{"doc": "Overall, electricity demand increased 3% over last year, with coal's share of electricity generation increasing to approximately 23% for the first nine months of 2021.\nDuring the first nine months, utility consumption of PRB coal rose approximately 30% compared to prior year.\nAt our other U.S. thermal operations, we are ramping up volumes next year by approximately two million tons to meet increased customer demand.\nWithin our seaborne thermal segment, the Wilpinjong extension and the Wambo Open-Cut JV development projects continue to advance, with over $200 million of capital invested over the past three years.\nOur seaborne thermal margins benefited from price increases of 66% in the quarter compared to the prior year, and the segment is on target to deliver higher export volumes in the fourth quarter as compared to prior quarters in 2021.\nIn the quarter, the CMJV complex and Metropolitan delivered 36% higher volumes at 16% lower cost per ton as compared to the prior year.\nTo date this year, we have reduced our debt levels by approximately $250 million.\nThird quarter sales were over $900 million; our highest in seven quarters, an increase by more than 30% from the prior year.\nReported revenue was $679 million, net of $238 million of unrealized mark-to-market losses.\nAt September 30, we had hedges on 2.9 million metric tons, the majority of which were contracted in the first half of 2021 and relate to 2.1 million metric tons of expected production at our Wambo underground mine.\nThese tons are expected to be mined and settled at a rate of 1.4 million tons in 2022 and 0.7 million tons in 2023.\nThe hedge contracts support the profitability of the mine by securing average prices of $84 per metric ton through mid-2023 and are a key ingredient of a strategy to extend the expected life of the mine.\nNet loss attributable to common shareholders totaled $44 million, including recognition of the $238 million of unrealized mark-to-market losses.\nWe reported adjusted EBITDA of $289 million, more than double the $122 million reported in the second quarter and three times the prior year results of $95 million.\nImportantly, we took further action to enhance our financial strength, retiring an additional $93 million of senior secured debt in the quarter, resulting in a net gain from early debt extinguishment of $16 million.\nWe also retired an additional $30 million after September 30.\nThat brings debt retired this year to approximately $250 million, more than 16% of debt outstanding at January 1.\nIn the quarter, we raised net cash proceeds of $112 million by issuing nine million shares of common stock under the at-the-market equity program.\nSubsequent to September 30, we raised an additional $39 million and issued 2.8 million shares.\nOutstanding shares are now approximately 126 million, and we have about five million shares remaining available under the currently approved ATM program.\nAt September 30, we had $587 million of cash and cash equivalents, net of $240 million of cash margin posted related to the economic coal hedges previously discussed.\nThe seaborne thermal segment generated EBITDA of $104 million and benefited from a $23 increase in average realized prices compared to the prior year.\nWilpinjong shipped 3.5 million tons in the quarter, including 1.6 million export tons at an average cost of $26 per ton.\nWilpinjong realized average sales price of $42, resulting in EBITDA margins of approximately 40%.\nWilpinjong recorded $56 million of adjusted EBITDA and had $145 million of cash at September 30.\nThe seaborne met segment generated EBITDA of $57 million with an average realized price of $120 per ton and costs of 82, resulting in 32% margins.\nThird quarter met shipments were approximately 400,000 tons higher than last year due to higher production at Metropolitan and the CMJV.\nTotal costs for the seaborne met segment were lower by more than $15 per ton compared to prior year due to elevated costs at Shoal Creek in 2020, and this despite higher royalties on favorable exchange rates and higher fuel prices in the current quarter.\nIn the U.S., our mines delivered $82 million of EBITDA despite challenges with labor availability and COVID related absenteeism impacting production at several operations.\nOur PRB mine shipped 22.7 million tons in the quarter at a 15% margin.\nThe other U.S. thermal mines shipped to combined 4.5 million tons and generated 24% EBITDA margins.\nLooking ahead through the remainder of the year, we anticipate higher seaborne thermal volumes, including the three million to four million export tons, of which approximately 50% are un-priced.\nThe seaborne met segment is expected to ship one million to 1.5 million tons in the fourth quarter, with 75% of those tons on price.\nWe anticipate production at Shoal Creek to recommence in the second half of the fourth quarter, with ramp-up continuing through the first quarter of next year.\nLastly, we will continue to be disciplined, taking advantage of strong markets, controlling costs and further reducing debt.", "summaries": "At our other U.S. thermal operations, we are ramping up volumes next year by approximately two million tons to meet increased customer demand.\nReported revenue was $679 million, net of $238 million of unrealized mark-to-market losses.\nWe anticipate production at Shoal Creek to recommence in the second half of the fourth quarter, with ramp-up continuing through the first quarter of next year.\nLastly, we will continue to be disciplined, taking advantage of strong markets, controlling costs and further reducing debt.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "Consolidated revenues for our third quarter were $464.3 million, up 4.2% from the prior year and fully diluted earnings per share were $2.21, up from $1.12 in the third quarter a year ago.\nFor example, merchandised amortization for the full year fiscal 2021 is running at least 100 basis points lower than more historical levels.\nAs Steve mentioned, consolidated revenues in our third quarter of 2021 were $464.3 million, an increase of 4.2% from $445.5 million a year ago, and consolidated operating income increased to $54.2 million from $27.7 million or 95.5%.\nNet income for the quarter increased to $42 million or $2.21 per diluted share from $21.3 million or $1.12 per diluted share.\nOur effective tax rate in the quarter was 22.9% compared to 21.8% in the prior year.\nOur Core Laundry revenues for the quarter were $409 million, an increase of 5.3% from the third quarter of 2020.\nCore Laundry organic growth which adjusts for the estimated effective acquisitions, as well as, fluctuations in the Canadian dollar was 4.3%.\nThis increase was primarily driven by the COVID-19 pandemic, significantly impacting our customers' operations and ware levels in prior year, which was partially offset by a large $20.1 million direct sale also in prior year.\nCore Laundry operating margin increased to 11.2% for the quarter from $45.6 million, from 5.1% in prior year or $19.7 million.\nThe increase was primarily driven by a number of items affecting our prior-year period, including: The impact of the decline in rental revenues on our cost structure; higher cost of revenues related to the large $20.1 million direct sale; higher bad debt expense and; additional costs which the Company incurred responding to the COVID-19 pandemic.\nEnergy costs were 4.2% of revenues in the third quarter of 2021 compared to 3.4% the prior year.\nRevenues increased to $38.2 million from $36.2 million in prior year or 5.7%, and were primarily driven by growth in our cleanroom and European nuclear operations.\nSegment's operating margin increased to 21.7% from 17.6% primarily due to lower merchandise costs and bad debt expense as a percentage of revenues, as well as costs incurred in the prior year responding to the COVID-19 pandemic.\nOur First Aid segment's revenues were $17.1 million compared to $20.9 million in the prior year.\nHowever, the segment's operating profit was nominal compared to $1.6 million in the comparable period of 2020.\nWe continue to maintain a solid balance sheet and financial position with no long-term debt and cash, cash equivalents and short-term investments totaling $535 million at the end of our third quarter of fiscal 2021.\nFor the first three quarters of fiscal 2021, capital expenditures totaled $96.6 million as we continue to invest in our future with new facility additions, expansions, updates and automation systems that will help us meet our long-term strategic objectives.\nDuring the quarter, we capitalized $4.2 million related to our ongoing CRM project which consisted of license fees, third-party consulting costs and capitalized internal labor costs.\nAs of the end of our quarter, we had capitalized a total of $32 million related to the CRM project.\nIn the third fiscal quarter of 2021, we began to depreciate part of the system over a 10-year life, and our quarterly depreciation approximated $0.7 million.\nAs a reminder, the depreciation of the full system combined with additional hardware we will install to support our new capabilities like mobile handheld devices for our route drivers will eventually ramp to an estimated $6 million to $7 million of additional depreciation expense per year.\nAs of May 29th, 2021, the Company had repurchased approximately 368,000 shares of common stock for $61.8 million under the program.\nBased on our results to date, as well as our outlook for the remainder of the year, we now expect that our fiscal 2021 revenues will be between $1.810 billion and $1.817 billion.\nWe further expect that full year diluted earnings per share will be between $7.80 and $8.00.\nThis outlook assumes that our Core Laundry operating margin in the fourth quarter will approximate 10.6% at the midpoint of the range.", "summaries": "Consolidated revenues for our third quarter were $464.3 million, up 4.2% from the prior year and fully diluted earnings per share were $2.21, up from $1.12 in the third quarter a year ago.\nAs Steve mentioned, consolidated revenues in our third quarter of 2021 were $464.3 million, an increase of 4.2% from $445.5 million a year ago, and consolidated operating income increased to $54.2 million from $27.7 million or 95.5%.\nNet income for the quarter increased to $42 million or $2.21 per diluted share from $21.3 million or $1.12 per diluted share.\nBased on our results to date, as well as our outlook for the remainder of the year, we now expect that our fiscal 2021 revenues will be between $1.810 billion and $1.817 billion.\nWe further expect that full year diluted earnings per share will be between $7.80 and $8.00.", "labels": "1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "Celeste has been an integral part of our IR program for almost 20 years, and I'm sure you will all agree, she'll be deeply missed.\nNet earnings up 27% to $297 million and earnings per share up 27.9% to $1.79.\nFor the second quarter, we achieved a 3.9% increase in total used units sold and the used unit comp growth of 1.2%.\nIn June, we experienced a high single-digit negative used unit comp which was more than offset by positive comps in both July and August.\nThe improvement in sales was the result of a variety of factors, including solid execution in operations, finance and marketing in addition to a strengthening used car sales environment.\nIn the quarter, we saw solid growth in web traffic, averaging approximately 29 million visits per month to carmax.com.\nFor the past three months, our teams have done a phenomenal job buying and producing vehicles at record levels, increasing salable inventory by more than 50% in the quarter.\nToday, I'm pleased to report that we've successfully ramped inventory to targeted levels, providing customers with more than 55,000 vehicles nationwide, the largest of any used car retailer.\nThis quarter, we saw five to 10-year-old vehicles increased to 27% compared with 22% last year as a percentage of our sales mix, reflecting customer demand for older and less expensive vehicles.\nGross profit per used unit for the quarter was $2,214 up $31 per unit from a year ago.\nVolume was up 5.1%, driven by one more auction date in the quarter and a record buy rate.\nWe also achieved record gross profit per wholesale unit of $1,086 in the quarter, the result of strong appreciation and operational execution.\nFor the quarter, other gross profit increased $6.8 million or 5.8%.\nEPP profits grew by $6.1 million or 5.4%, largely due to the increase in used units sold.\nIn the quarter, we also recognized $8.2 million in extended service plan profit sharing revenues compared with $6.5 million recognized a year ago.\nIn the second quarter, we maintained our ESP penetration above 60% compared with the prior-year quarter.\nService profits increased $4.5 million or 31%, which benefited primarily from the improved sales growth and the employee retention tax credit from the CARES Act.\nThe increase in EPP and service profits were partially offset by a $5 million increase in net third-party finance fees attributable to a shift in our sales mix by finance channel.\nOn the SG&A front, expenses increased 2% to approximately $9 million to $490 million.\nSG&A per used unit was $2,256, a year-over-year leverage of $44 per unit on the quarter.\nExcluding the impact of stock-based compensation, SG&A leverage was $97 a unit.\nNotable SG&A expense drivers for the second quarter were: the opening of 14 stores since the beginning of the second quarter of last year, which represents a 7% growth in our store base; a $12 million or $53 per unit increase in share-based compensation expense; a 7.7% increase in advertising expense and continued spending to advance our technology platforms and support our core and omnichannel strategic initiatives.\nFirst, we are ready to resume store growth and are currently planning for eight to 10 new stores in FY '22.\nFinally, we ended the quarter modestly below our historical leverage target of 35% to 45% adjusted debt-to-capital when netting out cash.\nAs we previously discussed, CAF made some temporary underwriting adjustments early in the pandemic, with the goal of ensuring financeable Tier 1 portfolio.\nConsequently, in the back half of the quarter, we began originating our normal spectrum of Tier 1 business.\nCAF also curtailed its in-house Tier 3 lending at the start of the pandemic.\nBased on the trends I just mentioned, we have reengaged in the Tier 3 space in recent weeks.\nCash penetration was 42.6% compared with 42.2% a year ago.\nTier 2 accounted for 22.3% of used unit sales compared with 19.7% last year.\nAnd Tier 3 was up to 11.1% compared with 9.6% a year ago.\nYear over year, cash net loans originated grew by 1% to $1.8 billion as the increases in used cars sold and penetration rate were somewhat offset by a lower average amount finance.\nFor loans originated during the quarter, the weighted average contract rate charged to customers was 8.2%, down from 8.6% a year ago and 8.4% in the first quarter.\nPortfolio interest margin as a percent of average managed receivables increased to 6% versus 5.7% in Q2 last year.\nCombined with our growth in receivables, this drove an increase in total interest margin of 7.4%, independent of any favorability in the provision for loan losses.\nTotal CAF income for the quarter was up 29% to $147.2 million.\nThe provision for loan losses was $26 million in Q2, which results in an ending reserve balance of $433 million.\nThat's 3.2% of average managed receivables, which is moderately lower than at the end of Q1.\nCustomers don't want to be forced to interact 100% in-store or 100% online.\nBy the end of this year, we will have rolled out approximately 95% of our photo studios, which provide a more immersive experience with high-quality photos, 360-degree interior and exterior views, feature scoring hotspots and reconditioning with new part call outs.\nApproximately 70% of our customers interacted with our CECs this quarter.\nAdditionally, approximately 50% of our customers progressed their sale remotely, up from about 42% pre-COVID.\nMost of these customers still chose to come to the store to complete their transaction, and approximately 30% of our customers still opted for an in-store experience only.", "summaries": "Net earnings up 27% to $297 million and earnings per share up 27.9% to $1.79.\nFor the second quarter, we achieved a 3.9% increase in total used units sold and the used unit comp growth of 1.2%.\nIn June, we experienced a high single-digit negative used unit comp which was more than offset by positive comps in both July and August.\nThe improvement in sales was the result of a variety of factors, including solid execution in operations, finance and marketing in addition to a strengthening used car sales environment.\nVolume was up 5.1%, driven by one more auction date in the quarter and a record buy rate.\nFirst, we are ready to resume store growth and are currently planning for eight to 10 new stores in FY '22.\nBased on the trends I just mentioned, we have reengaged in the Tier 3 space in recent weeks.", "labels": "0\n1\n1\n1\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We reported net income from continuing operations of $2.30 per share for 2020.\nIn 2020, we invested over $270 million in our natural gas infrastructure.\nPortland's unemployment right now is 6.1% in December, actually, essentially matching the national rate that's down from a 14.9% high in April.\nIn the Portland metro region, home sales were at 8.3% from 2019, with price growth of about 12%.\nAnd new single-family permits issued last year were up 4% compared to 2019 levels.\nNew construction plus conversions translated in connecting over 13,000 meters during the last 12 months ended December 31.\nOur overall customer growth rate as a result was 1.5% for the same period, based on this strong single-family home construction, partially offset by the loss of some commercial customers due to the pandemic.\nThrough a variety of programs and agencies, we've provided over $4 million to over 10,000 households to pay their bills and stay warm during the last heating season.\nWe also donated about $1 million to nonprofits in our communities and initiated a special COVID-19 employee giving campaign.\nOur customers are paying about 40% less today for their bills than they did 15 years ago.\nIn addition, in June, we passed back a record $17 million in storage bill credits to Oregon gas customers.\nEight out of 10 homeowners in our service territory prefer natural gas according to a study conducted in December 2020.\nIn fact, over 80% of respondents said they would pay $50,000 more for a home that has gas amenities over an all-electric home.\nThrough December 31, we incurred an estimated $10 million pre-tax of incremental costs and lower revenues due to the effects of COVID-19.\nOf this, $4.8 million were deferred to regulatory accounts.\nIn addition, $1.3 million of late fee revenue that has not been charged to customers since the suspension of normal collection processes will be recognized in a future period when we begin to recover the foregone fees through rates.\nThe remaining $3.8 million that cannot be recovered through rates are primarily due to lower natural gas utility margin from customers that stopped service and slightly lower usage from customers that are not decoupled.\nIn order to further mitigate the financial effects of the pandemic, we initiated temporary cost savings measures which provided approximately $3.5 million of savings in 2020.\nIn summary, the total P&L impact of COVID in 2020 was $1.6 million.\nNote, I'll describe earnings drivers on an after-tax basis using the statutory tax rate of 26.5%.\nAlso note that year-to-date earnings per share comparisons reflect the successful issuance of 1.4 million shares in June 2019 as we raised equity to fund investment in our gas and water utilities.\nFor the quarter, we reported net income from continuing operations of $45.8 million or $1.50 per share compared to $38.3 million or $1.26 per share for the same period in 2019.\nThe gas utility posted an increase of $0.19 per share related to new rates in Oregon beginning November 1, 2020, offset in part by higher depreciation and general tax expense and the impacts of COVID-19.\nContribution from our other businesses increased $0.05 per share from the water assets we acquired in Washington and Texas and lower expenses at the holding company.\nUtility margin in the gas distribution segment increased $11.5 million from the benefit of new rates in Oregon and customer growth, partly offset by the effects of COVID-19.\nUtility O&M decreased $500,000 in the quarter, reflecting cost savings efforts.\nDepreciation expense and general taxes increased $2.9 million related to the ongoing investment in our system.\nFor the full year 2020, we reported net income from continuing operations of $70.3 million or $2.30 per share compared to net income of $65.3 million or $2.19 per share for 2019.\n2019 results included a regulatory disallowance of $0.22 per share related to an Oregon Commission order on tax reform and pension expense.\nExcluding that disallowance on an adjusted non-GAAP basis, earnings per share from continuing operations was $2.41 for 2019.\nThe $0.11 per share decline is largely due to year-over-year growth in expenses, the effects of COVID and the positive effects of weather and pipeline constraints on 2019 results.\nIn the gas distribution segment, utility margin increased $11.3 million.\nHigher customer rates in Oregon and Washington, customer growth and revenues from the Northwest expansion project contributed an additional $21.5 million.\nThis was offset by lower entitlement and curtailment fees related to pipeline constraints in 2019 and warmer weather in the first quarter of 2020 compared to 2019, which collectively reduced margin by $4.5 million.\nUtility margin also declined $1 million due to lower revenues from late fees as we suspended normal collection processes.\nThe remaining $5.2 million decline in utility margin is a result of the 2019 Oregon order.\nUtility O&M and other expenses declined $5.4 million.\nThis decrease is associated with the Oregon order which resulted in $14 million of additional expense in the first quarter of 2019, as discussed previously.\nThis was offset by a $6 million increase in underlying O&M related to higher compensation costs, contractor and professional service expenses as well as moving costs.\nPension expenses, included in other expense, increased $2.8 million.\nAs a result, depreciation expense and general taxes increased $10.2 million.\nFinally, utility segment tax expense in 2019 included a $5.9 million benefit related to the implementation of the Oregon order, with no significant resulting effect on net income.\nNet income from our other businesses increased $2.2 million from higher earnings from the wastewater, water and wastewater utilities and lower expenses at our holding companies, partially offset by lower asset management revenues.\nWe invested $294 million into the business, with $273 million of gas utility capital expenditures and $38 million for water acquisitions.\nWith regards to the ongoing effects of COVID-19, approximately 97% of our commercial and industrial customers are current with their bills.\nGas utility capital expenditures for the year are expected to be in the $280 million to $320 million range, including significant projects related to system reinforcement, resource center renovations across our service territory and technology upgrades.\nThe Company initiated 2021 earnings guidance today in the range of $2.40 to $2.60 per share.\nOur water and wastewater utilities experienced organic customer growth of almost 3%, 2.8% to be exact, over the 12 months ended December 31, 2020.\nNorthwest Natural serves about 74% of the residential square footage in our service territory and meets 90% of our space and water heat customers' energy needs on our coldest days, yet the emissions associated with that use accounts for only 6% of Oregon's total greenhouse gas emissions.\nLet me walk you through three components of our vision of carbon neutrality by 2050.\nIn the past 40 years, the number of residential natural gas customers in the US has grown by almost 90%, but demand has remained flat, which is a testament to the industry and how well they foster continued efficiency.\nOur residential customers today use half of the amount of natural gas that they used in 1970 despite consistent growth in the average size of homes and more clients as per home.\nThe technical potential of RNG supply in Oregon alone is estimated to be nearly 50 billion cubic feet, about the same amount as all of the residential gas throughput in our state.\nNationally, early estimates show about 14 trillion cubic feet of technical potential or about 88% of all throughput.\nFor example, Northwest Natural has 20 billion cubic feet of underground storage today.\nThat's equivalent to storing about 6 million megawatt hours of renewables.\nIn today's cost, that would be about a $2 trillion lithium battery.\nIn Oregon, we have Senate Bill 98, the first of its kind renewable natural gas legislation that sets 30-year targets for gas utilities to procure R&D and renewable hydrogen for customers.", "summaries": "For the quarter, we reported net income from continuing operations of $45.8 million or $1.50 per share compared to $38.3 million or $1.26 per share for the same period in 2019.\nGas utility capital expenditures for the year are expected to be in the $280 million to $320 million range, including significant projects related to system reinforcement, resource center renovations across our service territory and technology upgrades.\nThe Company initiated 2021 earnings guidance today in the range of $2.40 to $2.60 per share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "It has been a great environment for Dynex to build on our solid track record of industry-leading performance as you can see on Slide 12, including the 21% cumulative shareholder total return since December 2019.\nWe're in a unique moment in history, and we believe every asset management team around the globe will be challenged by unforeseen surprises as we have already continually witnessed over the past 22 months.\nFor the third quarter, we reported comprehensive income of $0.09 per common share and a total economic return of $0.06 per common share or 0.3% for the quarter.\nWe also reported earnings available for distribution of $0.54 per common share, a 6% increase over last quarter and well in excess of our $0.39 quarterly common stock dividend.\nOn a year-to-date basis, through the third quarter, we have paid $1.17 in dividends.\nBook value per common share declined modestly to $18.42 from $18.75 or 1.8%, primarily from economic losses on the investment portfolio, principally in lower coupons relative to our hedge position.\nFirst, our earning asset yields improved 3 basis points while overall repo borrowing costs were down another 3 basis points.\nAgency RMBS prepayment fees were 11.3 CPR versus 19 flat CPR in the second quarter.\nSecondly, TBA dropped income contribution improved by 5 basis points primarily from continued dollar roll specialness during the quarter.\nThe funding cost benefit on dollar rolls versus repo and RMBS was approximately 60 basis points during the third quarter versus 49 basis points last quarter.\nTogether, these items drove 4 basis point increase in our adjusted net interest spread to 2.1% for the quarter.\nOffsetting these items was an increase in G&A expense of approximately $800,000.\nFrom a portfolio perspective, from quarter to quarter, we reduced our investment portfolio, including TBAs by approximately $500 million, mostly through reducing our investment in TBA, 2.5 [Phonetic].\nThis occurred toward the end of the quarter and resulted in adjusted leverage declining by nearly a full turn to 5.9 times at the end of the quarter.\nAs noted on Slide 23, our investment portfolio is approximately $4.8 billion at September 30, with $4.3 billion invested in agency RMBS and TBAs.\nThe overall notional balance of our hedges at September 30 was $4.3 billion as indicated on Slide 19 with the bulk of the hedges protecting book value from increases in rates in the long end of the curve.\nOverall, total shareholders capital grew approximately $18 million during the quarter, which includes approximately $28 million in new common equity raise at the market offerings in the quarter.\nYear-to-date, we have raised approximately $224 million in new capital at a gross price before commissions of $18.80.\nOur market capitalization adjusted for all shares outstanding is $650 million today versus $420 million at the beginning of the year, substantially increasing the liquidity of our stock for our shareholders while at the same time, unlocking the operating leverage in our business.\nOur stock price is virtually unchanged year-to-date and our total shareholder return for 2021 is 6.9% through yesterday.\nDuring the quarter, the 10-year treasury yield touched a low of 1.13% twice and ended the quarter virtually unchanged at 1.46% with a 44 basis point intra-quarter trading range.\nBook value on September 30 was at $18.42 and thus far as of October 22nd, book value is up between 2% to 2.5%.\nLeverage at the end of the quarter stood at 5.9 times, down from 6.4 times at the beginning of the quarter.\nWith the recovery in book value quarter to date, leverage stands at 5.6 times and the liquidity position is over $500 million.\nI must point out that the levels of inflation that we are experiencing and inflation expectations are among the highest in the last 20 years.\nOn Slide 20, our weighted average contractual days to maturity of our repo book was about 169 days at September 30, as we targeted longer tenure for our roles between three months and 12 months.\nRoughly 50% of the book had a contractual maturity that fell in the six to 12-month range.\nThere are more public non-bank mortgage companies, subject to quarterly profit metrics now than any other time in the last 20 years.\nWith this backdrop, we believe agency RMBS spreads could wipe up to 10 basis points to 20 basis points as the taper begins to be implemented, but we think this is more likely to happen during bouts of volatility.\nWe expect to make an initial adjustment in leverage back up to eight times and when appropriate up to 10 times.\nBook value is higher versus quarter end by 2% to 2.5%.\nSpecifically, we are entering the next few months with over $500 million in liquidity, almost an all-time high for Dynex relatively low leverage of 5.6 times that puts us in a solid position to navigate the environment and limits the risk to the existing portfolio.\nWe have dry powder for at least three turns and up to five turns of leverage each turn of leverage invested at 11% return adds roughly 1% or $0.24 per share incremental return annually.\nThis is a significant upside to the 9% dividend yield on our common shares that are trading somewhere between 94% and 95% of book value today.\nWe've encountered and navigated every market environment for 33 years.\nToday, we are building a resilient organization to last the next 33 years and beyond.", "summaries": "For the third quarter, we reported comprehensive income of $0.09 per common share and a total economic return of $0.06 per common share or 0.3% for the quarter.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We earned record net income of $4.7 billion, generated a record $5.5 billion of free cash flow, which funded record cash return of $2.7 billion to shareholders.\nWe doubled our regular dividend rate and paid two special dividends, paying out about 30% of cash from operations.\nAnd we are continuing to deliver on our free cash flow priorities this year with an additional special dividend announced yesterday of $1 per share.\nWe earned $5.32 per share while oil averaged $93.\nLast year, we shattered that record earning $7.09 per share with $68 oil.\nThat's 50% higher earnings with a 27% lower oil price.\nPremium is our internal investment hurdle rate that uses low fixed commodity prices to calculate the returns that drive our capital allocation decisions, $40 and $2.50 natural gas for the life of the well.\nOur hurdle rate increased from 30% to a minimum of 60% direct after-tax rate of return using the same low fixed prices of $40 oil and $2.50 natural gas.\nWe were able to successfully offset emerging inflationary pressures during the year to lower well costs by 7%.\nWe announced our 2040 net-zero ambition and added our goal to eliminate routine flaring by 2025 to our existing near-term targets for greenhouse gas and methane emissions rates.\nOur stellar fourth quarter performance allowed us to further strengthen the balance sheet, and we are returning cash to shareholders with the $1 per share special dividend declared yesterday.\nCombined with our $3 per share regular dividend, we have already committed to return $2.3 billion of cash to shareholders in 2022.\n1 value driver of EOG's success.\nEOG generated record financial results in the fourth quarter with adjusted earnings of $1.8 billion and free cash flow of $2 billion.\nCapital expenditures of $1.1 billion were right in line with our forecast while production volumes finished above target.\nFor the full year, adjusted earnings were a record $5 billion or $8.61 per share.\nThis yielded return on capital employed of 23%, while oil prices for the year averaged $68 per barrel.\nROCE would have been 10% or better at oil prices as low as $44.\nKeep in mind that back in 2016, when the premium investment standard was introduced, the oil price required for 10% ROCE was in excess of $80 per barrel.\nOur goal is to position the company to earn economic returns at the bottom of the cycle, less than $40 oil and generate returns that are better than the broader market on a full cycle basis.\nFree cash flow in 2021 was a record $5.5 billion, and we deployed this cash consistent with our long-standing free cash flow priorities.\nWe doubled the regular dividend rate, which now stands at an annual $3 per share and represents a 2.7% yield at the current share price.\nWe paid two special dividends for a combined $3 per share.\nWe also refreshed our buyback authorization, which now stands at $5 billion.\nIn total, EOG returned $2.7 billion of cash to shareholders in 2021.\nThis represents 28% of discretionary cash flow and 49% of free cash flow, putting EOG among E&P industry leaders for cash returned in 2021.\nLooking ahead to 2022, our disciplined capital plan and regular dividend can be funded at $44 oil.\nAt $80 oil, we expect to generate about $11 billion of cash flow from operations before working capital.\nThe $4.5 billion capital plan represents about a 40% reinvestment ratio, resulting in more than $6 billion in free cash flow.\nEOG declared a $0.75 regular dividend yesterday, which is our highest priority for returning cash to shareholders.\nTo support our renewed $5 billion buyback authorization and prepare to take advantage of other countercyclical opportunities, we plan to build and carry a higher cash balance going forward.\nFinally, we also announced an additional cash return to shareholders yesterday with a $1 per share special dividend to be paid in March.\nAlong with the regular dividend, EOG has already committed to return $2.3 billion of cash to shareholders in 2022.\nOur operations teams continue to innovate and find opportunities to increase efficiencies and lowered the average well cost by 7%, beating the 5% target we set at the start of the year.\nFor example, in our Delaware Basin Wolfcamp play, our teams have improved days to drill by 42% since 2018.\nIn our Eagle Ford oil play, after drilling several thousand wells, our teams continue to refine the drilling operation to drive consistent performance from our rig fleet, resulting in a 21% reduction in the drilling costs since 2018.\nPreliminary calculations indicate that we reduced our methane emissions percentage by about 25% and our total recordable incident rate by 10%.\nWe also achieved a 99.8% target for wellhead gas capture and increased water resource from reuse to 55%.\nOver 90% of our drilling fleet and over 50% of our frac fleets needed to execute this year's program are covered under existing term agreements with multiple providers.\nFor example, we expect to utilize our Super Zipper technique on about 60% of our wells, increasing the amount of treated lateral per day.\nLast year, we replaced more than two times what we produced and reduced our finding and development costs by 17%.\nOur 2021 reserve replacement was 208% for a finding and development cost of just $5.81 per barrel of oil equivalent, excluding revisions due to commodity price changes.\nSince 2014, prior to the last downturn and the implementation of our premium strategy, we have reduced finding and development cost by more than 55%.\nWith our double premium standard and the high grading of our future development schedule, we grew our reserve base in 2021 by over 500 million barrels of oil equivalent for total booked reserves of over 3.7 billion barrels of oil equivalent.\nThis represents a 16% increase in reserves year over year.\nIn terms of future well locations, we added over 700 net double premium locations across multiple basins to our inventory in 2021, replacing the 410 drilled last year by 170%.\nWith this in mind, our double premium inventory now accounts for 6,000 of the 11,500 total premium locations in our inventory, representing more than 11 years of drilling at the current pace.\nWe demonstrated this through the return of nearly 50% of free cash flow last year, and this quarter's special dividend, our third in less than a year, doubling our regular dividend rate indicates our confidence in the durability of our future performance.", "summaries": "We earned record net income of $4.7 billion, generated a record $5.5 billion of free cash flow, which funded record cash return of $2.7 billion to shareholders.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We've achieved six straight months of net long-term inflows, totaling nearly $18 billion in the second half of 2020 with progress across channels, geographies, asset classes.\nWe saw net inflows in Asia Pacific, totaling $17 billion in the second half of the year and improving flows in EMEA within the Americas over this timeframe and net long-term flows in the fixed income remained robust during that period.\nWe had net long-term inflows and then nearly $10 billion during the quarter, long-term inflows in the fixed income capabilities continued while we saw client demand for equities within ETFs, quantitative and index strategies in particular.\nI would like to spend a few minutes on slides 5 and 6 to talk about our competitive strength and key capabilities in areas with high client demand and our focus for 2021.\nWe have been managing dedicated Chinese products for nearly 40 years.\nMoving to slide 7, we had 61% and 70% of actively managed funds on the top half of peers on a 5-year and a 10-year basis, reflecting strength in fixed income, global equities, including emerging market equities and Asian equities, all areas where we continue to see demand from clients globally.\nLooking at our AUM on slide 8, we ended the quarter with $1.35 trillion in AUM.\nOf the $132 billion in AUM growth, approximately $95 billion as a function of increased market values.\nTurning to flows on slide 9, our diversified platform generated long-term net inflows in the 4th quarter of $9.8 billion representing 3.9% annualized organic growth, which we generated positive net inflows in active AUM of $400 million and passive AUM of $9.4 billion.\nOur ETFs experienced net inflows of $6.1 billion including $4.7 billion in long-term ETF and $1.4 billion in our QQQ.\nWe saw net long-term ETF flows in the US focused on equities in the 4th quarter including a high level of interest in our S&P 500 equal weight ETF which had $2.7 billion in net inflows in the quarter.\nTwo of our top 5 end-flowing ETFs were ESG related.\nRetail net outflows were $800 million in the quarter, helped by the positive ETF flows.\nOn the institutional side, we had net inflows of $10.6 billion.\nLooking at flows by geography, you will note that the Americas had net inflows of $2.2 billion in the quarter, an improvement of $6.6 billion from the prior quarter.\nOur global equity products improved by over $1 billion or 37% from Q3 driven by our developing market fund, which returned to positive net flows in the 4th quarter following negative net flows in the first three quarters of the year.\nThe UK experienced net outflows of $100 million in the quarter, as positive flows into our institutional quantitative equity capability were offset by net outflows in multi-asset in UK equities.\nEMEA net outflows were $1.4 billion driven by institutional lumpiness and ETF outflows largely in our S&P 500 and Nasdaq-100 use ETF.\nAnd finally, I noted last quarter that Asia Pacific delivered one of its stronger-strongest quarters ever with net inflows of $8 billion.\nIn the 4th quarter, net inflows were even higher at $9.1 billion.\n$4 billion of these net flows were from Japan, $3.8 billion arose from our China JV, and the remaining $1.3 billion was generated from several other countries in the region.\nIt's worth noting that we continue to see strength in fixed income across all channels and markets in the 4th quarter with net long-term inflows of $8.2 billion.\nThis following net long-term inflows of $8.8 billion in the 3rd quarter and $6 billion in the second quarter.\nIt's also important to note that of the $26.1 billion in fixed income net inflows in 2020, $25 billion of these net inflows were from active fixed income capabilities.\nOur institutional pipeline remains robust at $30.5 billion on the heels of strong pull through in the institutional pipeline during the 4th quarter.\nTurning to slide 11, you will note that our revenues increased $135 million or 12.4% from the 3rd quarter, driven by higher average AUM in Q4, as well as a meaningful increase in performance fees.\nNet revenue yield at performance fees was 36 basis points flat and flat at the, at the Q3 yield level.\nWe recorded performance fees of $78 million in the 4th quarter, $48 million of these performance fees arose from our real estate business and $21 million from our institutional business and our China JV, two of our key growth areas.\nTotal adjusted operating expenses increased 8.3% in Q4.\nThe $57 million increase in operating expenses was driven by higher variable compensation as a result of both market growth and compensation related to the performance fees in the quarter.\nThrough this evaluation, we will invest in key areas of growth, including ETF, fixed income, China solutions, alternatives, and global equities while creating permanent net improvement of $200 million in our normalized operating expense base.\nIn the 4th quarter, we realized $7.5 million in cost savings, $7 million of these savings were related to compensation expense as depicted on slide 12.\nThe remaining $500,000 in savings were related to facilities, which are shown in the property, office, and technology category.\nThe $7.5 million in cost savings were $30 million annualized is 15% of our $200 million net savings expectation.\nOf the remaining $170 million in net savings, we anticipate we will realize roughly 50% of the savings through compensation expense.\nThe remaining 50% would spread across occupancy, tech spends, and G&A.\nAs it relates to timing, we still expect approximately $150 million or 75% of the run rate savings to be achieved by the end of this year, with the remainder recognized by the end of '22.\nWe estimate that we will realize roughly 75% of the anticipated compensation reductions in 2021, roughly 50% of the anticipated reduction in occupancy expense also in 2021, and all of the reduction in G&A this year.\nIn the 4th quarter, we incurred $104 million of our total estimated $250 million to $275 million in restructuring costs.\nWe expect the remaining transaction costs for the realization of this program to be in the range of $150 million-$175 million over the next two years, roughly two-thirds of this remaining amount occurring in 2021.\nWith respect to Q1, after improved market performance and asset inflows in the 4th quarter, we start the year with ever $1.3 trillion in AUM.\nTurning to slide 13, adjusted operating income improved $78 million to $485 million for the quarter, driven by the factors we just reviewed.\nAdjusted operating margin include 230 basis points as compared to the 3rd quarter to 39.5%, demonstrating the operating leverage in our model.\nThis helped drive a 19% increase in adjusted earnings per share to $0.72 a share.\nNon-operating income included $31.9 million in net gains for the quarter compared to $15.2 million in net gains last quarter.\nInterest expense of $24.4 million was 28% lower than the prior quarter.\nOur tax rate for the 4th quarter was 21.7%.\nWe estimate our 2021 non-GAAP effective tax rate to be between 23% and 24%.\nAs Marty mentioned, we reduced revolver balance by $90 million to 0 in the quarter, consistent with our commitment to improve our leverage profile.\nTo that end, our balance sheet cash position improved to $1.4 billion in the 4th quarter from $1.1 billion at the end of Q3, $764 million of this cash is held for regulatory requirements.\nI will note, we paid $117 million earlier in January to settle a portion of the forward share repurchase liability with the remaining liability of $177 million to be settled in April.", "summaries": "Turning to flows on slide 9, our diversified platform generated long-term net inflows in the 4th quarter of $9.8 billion representing 3.9% annualized organic growth, which we generated positive net inflows in active AUM of $400 million and passive AUM of $9.4 billion.\nOur global equity products improved by over $1 billion or 37% from Q3 driven by our developing market fund, which returned to positive net flows in the 4th quarter following negative net flows in the first three quarters of the year.\nAnd finally, I noted last quarter that Asia Pacific delivered one of its stronger-strongest quarters ever with net inflows of $8 billion.\nThis helped drive a 19% increase in adjusted earnings per share to $0.72 a share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Next, social commerce is disrupting traditional e-commerce just as e-commerce disrupted retail more than 20 years ago.\nGlobal research estimates the social commerce will expand from approximately $500 billion in 2020 to $3.4 trillion by 2028.\nWith nearly 70% of that stemming from Asia.\nThis leads to the third strategic imperative extending our digital platform, which currently accounts for more than 90% of Nu Skin's revenues.\nDespite these headwinds, we were pleased with 46% reported year-to-date growth in EMEA and see a bright future ahead as this market continues to lean into social commerce.\nCollagen+ leverages our unique insight outside R&D capabilities to enter the growing $53 billion global beauty supplements market.\nSo in summary, while the third quarter was a near term setback, we remain on track to grow 3% to 5% this year on top of a strong 2020.\nIn fact, our two-year growth is projected to be 10% to 11%.\nYou'll then hear from Mark whom you all know in his also transfer transformational leader coming out of Silicon Valley in the connected devices world of Amazon Lab 126, which provides critical perspective and experience for a future direction.\nAt the highest level, the challenges in China have been offset by accelerated growth of the business in the West, up 35% year-to-date over a very strong 2020.\nIn the Americas region, the successful introduction of beauty focus Collagen+ in the US led to 14% revenue growth in the quarter on top of 67% growth in Q3 of 2020.\nThe 9% decline in revenue for the quarter is primarily attributable to extended summer vacations from pent up demand after a restrictive 2020 and a challenging compared to Q3 2020 growth of 72%.\nThe 10% revenue and 18% growth in sales leaders was driven by successful product promotions around our TR90 body shaping system.\nFor the third quarter, our revenue was $641.2 million and benefited 2% due to foreign currency.\nWhile this represents an 8.8% decline versus Q3 2020, it is growth of 8.7% on a two-year look back versus Q3 2019.\nEarnings per share for the quarter were $0.97 down 10% year-over-year, but up 22.8% versus the same period in 2019.\nGross margin for the quarter improved 130 basis points to 75.2%.\nGross margin for the core Nu Skin business was 78.6% compared to 76.3% driven by product mix, product cost reductions and supply chain efficiencies.\nSelling expense as a percent of revenue remained consistent with the prior year at 39.9%.\nFor the Nu Skin core business selling expense was 42.7% compared to 42.4%.\nGeneral and administrative expenses as a percent of revenue were 25.1% compared to 23.5% in the prior year.\nFor the quarter G&A declined $3.9 million year-over-year, as we remain focused on carefully managing expenses.\nOperating margin for the quarter was 10.2% compared to 10.6% in the prior year period, largely impacted by revenue.\nWe still anticipate an approximate 50 basis points year-over-year improvement in operating margin for 2021.\nOn our way to our stated midterm goal of 13%.\nThe other income expense line reflects a $2.8 million gain, compared to a $0.5 million gain in the prior year.\nCash from operations was $30.2 million for the quarter, and was impacted by our continued strategic investment in inventory to meet customer demand for new products and build some protection from global supply chain construction.\nWe paid $19 million in dividends and repurchased $10 million of our stock with $255.4 million remaining in authorization.\nOur tax rate for the quarter was 27% compared to 24.8% in the prior year period.\nOur rise segment, which includes our manufacturing partners, grew 4% in the quarter.\nGiven our Q3 results, we are adjusting our annual guidance and now expect revenue of $2.67 billion to $2.70 billion, which is annual growth of 3% to 5% or growth of 10% to 11% versus 2019.\nWe anticipate earnings per share of $3.93 to $4.03, year-over-year improvement of 8% to 11% or 27% to 30% on a two-year look back.\nThis guidance assumes a positive foreign currency impact of 2% to 3% and a tax rate of 26% to 28%.\nWe are projecting fourth quarter revenue of $645 million to $675 million.\nAssuming a foreign currency headwind of approximately 1%.\nQ4 earnings per share guidance is $0.90 to $1 and assumed a tax rate of 25% to 29%.", "summaries": "So in summary, while the third quarter was a near term setback, we remain on track to grow 3% to 5% this year on top of a strong 2020.\nFor the third quarter, our revenue was $641.2 million and benefited 2% due to foreign currency.\nEarnings per share for the quarter were $0.97 down 10% year-over-year, but up 22.8% versus the same period in 2019.\nGiven our Q3 results, we are adjusting our annual guidance and now expect revenue of $2.67 billion to $2.70 billion, which is annual growth of 3% to 5% or growth of 10% to 11% versus 2019.\nWe anticipate earnings per share of $3.93 to $4.03, year-over-year improvement of 8% to 11% or 27% to 30% on a two-year look back.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0"}
{"doc": "Overall, our sales were sequentially up 11% compared to the fourth quarter, with all regions and segments showing revenue growth.\nThe sequential increase was broad-based, with all segments and regions growing between 9% and 12%.\nA year ago, we primarily saw the COVID impact in China, and you can see this impact in our current quarter, Asia Pacific sales growth of 31%.\nEMEA and our global specialty businesses also showed strong growth and were up 14% and 12%, respectively, from a year ago.\nI also want to point out that our ability to gain new piece of business and take market share also contributed to our performance as our analysis shows that we had total organic sales growth due to net share gains of approximately 3% in the first quarter of this year versus the first quarter of '20.\nSo we continue to feel good about our ability to deliver on our historical performance of consistently growing 2% to 4% above the market due to share gains.\nOverall, our cost of raw materials have increased over 20% since the end of last year.\nSynergy achievement also was a factor in our results as we achieved $18 million in the current quarter compared to $10 million last year.\nHowever, our leverage ratio of net debt-to-adjusted EBITDA continued to improve from 3.2 times at the end of the year to 3.1 times to the end of the first quarter.\nWe will have a step change in our profitability, essentially complete our integration, cost synergies, continue to grow above the market by taking share and reach our targeted net debt-to-adjusted EBITDA leverage of 2.5.\nGAAP measures and non-GAAP measures provided in our call charts on Pages 10 to 21, for reference.\nOur record net sales of $429.8 million increased 14% from the prior year, which was primarily driven by higher volumes, including 3% from acquisitions and increases due to foreign exchange of approximately 3%.\nAPAC's net sales increase of 31% was the largest increase than the prior year, but this was mainly due to the initial impacts of COVID hitting China in the first quarter of last year versus the rest of the segments being impacted in the second quarter of last year.\nEMEA also showed strong net sales growth of 14% due to a solid bounce back from COVID-19.\nAmericas and GSB had net sales growth of 4% and 12%, largely due to higher volumes, including the Coral acquisition made in December of last year, which helped offset some of the market pressures we are facing, such as the semiconductor shortage.\nGross margins were 36.3% for the quarter compared to 35.4% in the prior year.\nBut excluding onetime COGS increases related to acquisitions, these would have been 36.6% and 35.5%.\nNotably, this 1% improvement year-over-year is really the benefit of strong execution of integration synergies, offsetting higher raw material costs that we incurred in the quarter.\nSG&A was up $5.6 million compared to the prior year quarter, as we had additional costs associated with our recent acquisition of Coral and higher SG&A due to the impact of foreign exchange.\nAs you can see in chart eight, our quarterly adjusted EBITDA of $77.1 million grew 28% from the prior year, which drove an 8% increase in our trailing 12-month adjusted EBITDA to $239 million.\nFrom a tax perspective, we had an effective tax rate of 24.2% in the quarter compared to a benefit of 31.1% in the prior year.\nExcluding various onetime items in each period, our tax rate would have been reasonably consistent at 25% for the current quarter compared to 22% last year.\nTo note, we do expect both our second quarter and full year ETRs will be in the range of 24.5% to 26.5%.\nSo net -- our net GAAP earnings per share of $2.11 grew 53% compared to the prior year as our strong operating earnings and adjusted EBITDA, coupled with $3 million of lower interest expense due to lower borrowing rates were partially offset by a slightly higher tax expense.\nAs we look to the company's liquidity, summarized on Chart nine, our net debt of $749.6 million increased $32 million in the quarter, which was primarily driven by a $25 million acquisition of a tin-plating business for the steel end market, $7.1 million of dividends paid and $12.6 million of operating cash outflow.\nDespite this increase in net debt, the company was able to improve its reported leverage ratio to 3.1 times as of the first quarter compared to 3.2 at the end of last year.\nThis includes prioritizing debt reduction while continuing to pay dividends and invest in acquisitions that provide growth opportunities, which make strategic sense, all while remaining committed to reducing our leverage below our targeted 2.5 times level by the end of this year.\nThough, as Mike mentioned, we still maintain our previous floor guidance that we will see a greater than 20% increase in adjusted EBITDA in 2021 as compared to the $222 million we achieved in the prior year.", "summaries": "Our record net sales of $429.8 million increased 14% from the prior year, which was primarily driven by higher volumes, including 3% from acquisitions and increases due to foreign exchange of approximately 3%.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For example, performance in two key elements of our growth strategy, accelerating the transition of patients to Optum-led value-based care and strong United Healthcare growth in serving Medicare Advantage consumers, are both tracking well with the expectations we shared with you at our recent investor conference.\nThese, and the broader performance across the enterprise, confirm our confidence in our ability to advance our stated growth strategies and to support our long-term 13% to 16% earnings per share growth rate.\nTaken together, these efforts helped us add more than $30 billion in revenue for the year, about $10 billion above our initial outlook.\nIn sum, we enter 2022 with heightened confidence in our ability to execute upon the objectives we set forth in late November.\nAs an example, in '21, we incurred over $100 million in preparation expense.\nActivity over the past several weeks shows primary care visits having declined about 10% and an even higher rate of decline in specialist visits.\nOptumHealth's revenue per consumer grew by over 30% in '21, driven by the increasing number of our patients served under value-based arrangements.\nConsistent with the expectations we shared in late November, we had a strong start to the year and continue to expect to add 500,000 new patients in accountable value-based relationships, benefiting from the groundwork laid over the past many years.\nOptumInsight's earnings grew 25% in '21, with operating margins approaching 28% for the year.\nWe ended the year with a revenue backlog of $22.4 billion, an increase of $2.2 billion over the prior year.\nOptumRx earnings grew 6% for the year, driven by the continued expansion of our pharmacy services businesses, supply chain initiatives and strong cost management activities and benefiting from strong customer retention.\nFull-year revenues of $223 billion grew 11%.\nWithin the up to 800,000 new members we will serve in '22, about three-quarters will be in individual and group Medicare Advantage and the remainder in dual special needs plans.\nOver the course of the year, we will look to continue to expand upon the nearly 8 million individuals we serve across 31 states.\nWe concluded '21 with commercial membership about 200,000 people ahead of the original outlook provided.\nFull year '21 cash flow from operations was $22.3 billion or 1.3 times net income, about $2 billion above the initial outlook we shared a year ago.\nWe continue to expect our 2022 cash flow to approach $24 billion, about 1.2 times net income.\nAnd we ended '21 with a debt-to-total capital ratio of 38%.\nThese ample capital capacities allow us to continue to accelerate our investments, while remaining committed to an advancing shareholder dividend and supporting our expected repurchase of between $5 billion and $6 billion of stock in '22.\nOur 2022 adjusted earnings per share outlook of $21.10 to $21.60 is consistent with the view we offered seven weeks ago.\nFrom this distance, and in contrast to the past two years, we expect the seasonal pattern to be more consistent with our historical experience, with just under 50% of full-year earnings in the first half and the first two quarters comparably even.", "summaries": "For example, performance in two key elements of our growth strategy, accelerating the transition of patients to Optum-led value-based care and strong United Healthcare growth in serving Medicare Advantage consumers, are both tracking well with the expectations we shared with you at our recent investor conference.\nIn sum, we enter 2022 with heightened confidence in our ability to execute upon the objectives we set forth in late November.\nFull year '21 cash flow from operations was $22.3 billion or 1.3 times net income, about $2 billion above the initial outlook we shared a year ago.", "labels": "1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "We reported an all-time record quarter adjusted earnings per share from continuing operations of $2.38, an increase of 102% compared to last year.\nFor the quarter, same store total variable gross profit per vehicle retailed increased $966 or 28% compared to the prior year.\nSame-store new vehicle gross profit per vehicle retailed increased $914 or 56%, and same-store used vehicle gross profit per vehicle retail increased $602 or 43% compared to prior year.\nApproximately 75% of the pre-owned units retailed are acquired from customers.\nFor the third quarter, we acquired over 12,000 units, with We'll Buy Your Car, and we're currently sourcing over 4,000 units a month to both supplement our inventory as well as reduce our average used vehicle acquisition cost.\nAdjusted SG&A as a percentage of gross profit was 64.4% in the third quarter of 2020, representing a 800 basis point improvement compared to the third quarter of 2019.\nWe are committed to operating below 68% SG&A as percent of gross profit on a long-term basis.\nWe plan to build over 100 AutoNation USA pre-owned stores, with over 50 completed by the end of 2025.\nWith this expansion, we have set the long-term goal of selling over 1 million combined new and used retail units per year.\nAs Mike just highlighted, today we reported adjusted net income from continuing operations of $212 million or $2.38 per share versus $106 million or $1.18 per share during the third quarter of 2019.\nThis represents a 102% increase on a per share basis.\nThird quarter 2020 adjusted results exclude charges of $28 million after-tax or $0.31 per share associated with the previously announced exit of our aftermarket collision parts business and an unrealized loss of $2 million after-tax or $0.02 per share associated with our equity investment in Vroom.\nThat said, we continued to execute in an extremely high level during the quarter, with adjusted same store gross profit increasing 13% year-over-year.\nRecovering demand, coupled with limited new vehicle supply, drove strong margins, with same store total PVRs up $966 or 28% compared to the prior year.\nWe were also able to grow our same-store used unit sales, which were up 3% year-over-year as we successfully met strong demand with trade-in volume and inventory sourced through our We'll Buy Your Car program.\nAdjusted same store customer care gross profit declined 2% in the quarter compared to the prior year.\nAnd, as Mike highlighted, adjusted SG&A as a percentage of gross profit was 64.4% for the third quarter, which represents an 800 basis point improvement compared to the year-ago period.\nLooking ahead, we remain committed to maintaining expense discipline, and we continue to target operating below 68% SG&A as a percentage of gross profit.\nFloor plan interest expense decreased to $11 million compared to $33 million in the third quarter of 2019 due to both lower interest rates and lower average floor plan balances.\nThis, combined with lower non-vehicle interest expense, a slightly lower effective tax rate and fewer shares outstanding, generated adjusted earnings per share from continuing operations of $2.38, up 102%.\nOur cash balance at quarter-end was $351 million, which, combined with our additional borrowing capacity, resulted in total liquidity of $2.4 billion at the end of September.\nOur covenant leverage ratio of debt to EBITDA declined to 2.0 times at the end of the third quarter, down from 2.3 times at the end of the second quarter.\nIncluding cash and used floor plan availability, our net leverage ratio was 1.4 times at quarter-end.\nOur AutoNation USA stores require upfront capital investment of about $10 million to $11 million per store, and we expect to build at least 50 additional stores by the end of 2025.\nOur AutoNation USA expansion is an exciting growth driver, with each store expected to earn a pre-tax profit of almost $2.5 million annually, once running at initial run rate.\nIn addition, today we announced that our Board of Directors has increased our share repurchase authorization to $500 million.\nOur associates, our customers and our partners have helped AutoNation reach a tremendous milestone of raising and contributing over $25 million in the fight against cancer.", "summaries": "For the quarter, same store total variable gross profit per vehicle retailed increased $966 or 28% compared to the prior year.\nSame-store new vehicle gross profit per vehicle retailed increased $914 or 56%, and same-store used vehicle gross profit per vehicle retail increased $602 or 43% compared to prior year.\nAdjusted SG&A as a percentage of gross profit was 64.4% in the third quarter of 2020, representing a 800 basis point improvement compared to the third quarter of 2019.\nWe plan to build over 100 AutoNation USA pre-owned stores, with over 50 completed by the end of 2025.\nWith this expansion, we have set the long-term goal of selling over 1 million combined new and used retail units per year.\nAs Mike just highlighted, today we reported adjusted net income from continuing operations of $212 million or $2.38 per share versus $106 million or $1.18 per share during the third quarter of 2019.\nRecovering demand, coupled with limited new vehicle supply, drove strong margins, with same store total PVRs up $966 or 28% compared to the prior year.\nAnd, as Mike highlighted, adjusted SG&A as a percentage of gross profit was 64.4% for the third quarter, which represents an 800 basis point improvement compared to the year-ago period.\nOur AutoNation USA stores require upfront capital investment of about $10 million to $11 million per store, and we expect to build at least 50 additional stores by the end of 2025.\nIn addition, today we announced that our Board of Directors has increased our share repurchase authorization to $500 million.", "labels": "0\n1\n1\n0\n0\n1\n0\n1\n1\n1\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0"}
{"doc": "With that, turning to the quarter, our sales decreased 28% year-over-year from $561 million to $404 million, and our adjusted diluted earnings per share from continuing operations decreased 52% from $0.64 per share to $0.31 per share.\nOur sales to commercial customers decreased 48%, and our sales to government and defense customers increased 13%.\nFor the quarter, sales to government and defense customers were 52% of our total sales.\nOur Aviation Services segment grew 6% sequentially from our first quarter.\nYou are now starting to see the results of these actions in our adjusted operating margins, which improved meaningfully from 2.5% to 4% sequentially on stable revenue.\nWith respect to cash, we generated $28 million from operating activities from continuing operations and also reduced our accounts receivable financing program by nearly $7 million, further improving our already strong balance sheet position and putting our net leverage below 1 times EBITDA.\nAlso, our follow-on contract from the Navy to support the C-40 aircraft recognizes our performance over the last five years and provides for an expanded statement of work over the next five years.\nAdditionally, our 10-year agreement with Honeywell to be its sole authorized service center for 737 MAX Electronic Bleed Air System components positions us to support MAX operators worldwide when that aircraft to return to service.\nThese new contracts, along with others we have announced over the last several months, such as the Unison expansion and extension, represent nearly $1.7 billion in total contract value captured so far this fiscal year.\nOur sales in the quarter of $403.6 million were down 28% or $157.3 million year-over-year, driven by the impacts of the pandemic on commercial passenger flying activity.\nSequentially, Aviation Services sales were up 5.9% or $21.4 million, while sales in Expeditionary Services were down 50% or $18.6 million.\nFirst, the exit of the composites business was completed at the end of Q1, and this business generated $7 million of revenue in Q1 and zero in the current quarter.\nWithin Aviation Services, our government and defense business was up 19% or $30 million year-over-year, reflecting strong performance on existing contracts.\nIn the quarter, as well as in Q1, our program to deliver two C-40 aircraft to the U.S. Marine Corps generated strong revenue due to elevated activity on the program.\nGross profit margin in the quarter increased to 17.2% from 15.3% in the prior year quarter, driven by the CARES Act payroll support.\nOn a sequential basis, gross profit margin was up 12 -- was up from 12.1% in our first quarter, reflecting the actions we have taken to reduce our indirect costs and to exit underperforming contracts and product lines.\nSG&A expenses were $43.4 million for the quarter.\nOn an adjusted basis, SG&A was $38 million or 9.4% of sales, down $13 million from the prior year quarter, reflecting the reduction of our overhead cost structure.\nOf this improvement, approximately $3.2 million was the result of temporary reductions in compensation and benefits, which we restored beginning on December 1.\nDuring the quarter, we recorded $6 million of additional accrual and discontinued operation, which brings our total reserve for this matter to $8 million based on our latest settlement offer.\nWe generated $27.6 million of cash in our operating activities from continuing operations for the quarter.\nThis is net of a use of cash of $6.8 million as we continue to reduce the size of our accounts receivable financing program.\nExcluding the accounts receivable financing program, cash flow provided by operating activities from continuing operations was $34.4 million.\nInventory decreased $12.7 million during the quarter.\nOur net debt at quarter end was $112.1 million, down $37 million from $149.3 million at the end of Q1.\nOur balance sheet and liquidity remain strong with net leverage of 0.95 times adjusted EBITDA, unrestricted cash of $110 million and unused capacity under our revolver of approximately $390 million.", "summaries": "With that, turning to the quarter, our sales decreased 28% year-over-year from $561 million to $404 million, and our adjusted diluted earnings per share from continuing operations decreased 52% from $0.64 per share to $0.31 per share.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Consolidated revenues improved 7% sequentially to $152 million including 11% improvement in Fluid Systems.\nConsolidated third quarter EBITDA generation was $4 million, which includes $4 million of charges associated with Hurricane Ida as well as costs associated with restructuring our U.S. Fluids business.\nWhile the third quarter was impacted by the typical seasonal slowdown in T&D project activity, the seasonal low was largely offset by a $4 million increase in site access product sales, reflecting the benefit of our expanding presence outside of oil and gas.\nWith a modestly lower revenue and shift in mix, our Industrial Solutions operating margin declined 18% in the third quarter, generating $13 million of EBITDA.\nYear-to-date, we generated $108 million of site access revenues from the power transmission and other industrial markets, which puts us on a pace for nearly $150 million of revenues for the full year 2021, a 25% improvement from our previous high mark.\nTotal segment revenues improved 11% sequentially primarily driven by strength in the Canadian market as well as our other international markets.\nIn North America, revenues improved by 14% sequentially to $71 million, substantially all driven by the Canadian market.\nU.S. revenues remain in line with prior quarter with modest improvements in land activity offset by a $2 million weather-related decline in the Gulf of Mexico.\nInternational revenues improved 6% sequentially to $37 million in the third quarter, with our expansion in Asia Pacific being the primary driver of the improvement, while certain areas in the EMEA region continued to be negatively impacted by COVID-related restrictions.\nAs another sign of the international market recovery, I'd like to highlight that we received a five-year award in Albania from Shell Oil as they look to return to drilling activity in early 2022, which we believe will generate roughly $5 million of revenue per year.\nTotal revenues for the Industrial Solutions segment declined 3% sequentially to $44 million in the third quarter.\nSite and Access Solutions business contributed $42 million of the segment revenues in the third quarter including $28 million of rental and service revenues and $14 million of product sales.\nAs discussed on our August call, the third quarter was impacted by the typical seasonal slowdown in T&D project activity, which led to a $5 million decline in rental and service revenues following the strong Q2 results.\nThis decline was largely offset by a $4 million increase in revenues from product sales, benefiting from our expanding customer base in the utility sector.\nIndustrial blending contributed $2 million of the segment revenues in the third quarter, in line with prior quarter levels.\nWith the modestly lower revenues, the Industrial Solutions segment operating income declined by $2 million sequentially to $8 million, contributing $13 million of EBITDA in the third quarter.\nAs highlighted last quarter, the Q2 results included a $1 million gain associated with the enforcement of our patent rights.\nComparing to the third quarter of last year, revenues from the Site and Access Solutions business increased $13 million or 46%.\nThis increase includes an $8 million improvement in product sales along with a $5 million or 22% improvement in rental and service revenues.\nThrough the first three quarters, the power transmission end market contributes more than half of our Industrial Solutions segment revenues, while our historical E&P market activity accounts for less than 20%.\nTotal segment revenues improved by 11% sequentially to $108 million in the third quarter primarily driven by improvements in Canada and other international markets.\nRevenues from U.S. land increased 4% sequentially to $51 million, reflecting the benefit of the 11% improvement in market rig count as our market share remained relatively stable.\nRevenues from the Gulf of Mexico declined by $2 million, contributing $6 million in the third quarter, largely reflecting the weather-related impact on our customers' operations.\nIn Canada, revenues nearly tripled sequentially to $14 million in the third quarter, meaningfully outpacing the market rig count improvements following spring breakup.\nInternational Fluids revenues improved 6% sequentially to $37 million in the third quarter, with our ongoing expansion in Asia Pacific being the primary driver of the improvement.\nAs Paul touched on, with the sequential revenue growth in the third quarter, we saw continued progress in returning the Fluids Systems segment to profitability, although the $4 million of charges related to Hurricane Ida and our ongoing cost actions largely offset the improvements, keeping the Fluids Systems reported operating loss flat sequentially at $7 million for the third quarter.\nOn a year-over-year basis, our Fluids Systems revenues increased $40 million or 59%.\nInternational revenues improved $12 million or 47% year-over-year, benefiting from new project start-ups and the recovery of customer activity in several European markets and Algeria.\nSG&A costs were $24 million in the third quarter, which includes $7.5 million of corporate office expenses, reflecting a $1 million increase from the prior quarter.\nComparing to the third quarter of last year, SG&A costs increased $3 million, including a $1 million increase in corporate office expense.\nThe year-over-year increase in SG&A primarily reflects higher personnel costs including higher incentive expenses in the Industrial Solutions segment and Canada as well as the $1 million increase in corporate office expense.\nInterest expense remained stable at $2.2 million for the third quarter, nearly half of which reflects noncash amortization of facility fees and discounts.\nOur weighted average cash borrowing rate on our outstanding debt is approximately 3.25%.\nThe third quarter includes a $2 million income tax expense despite reporting a pre-tax loss.\nOur reported net loss in the third quarter was $0.11 per share, which included $0.04 of charges and compares to a net loss of $0.07 per share in the second quarter.\nReported net loss in the third quarter of last year was $0.26 per share, which also included $0.04 of charges.\nCash used in operating activities was $12 million including $14 million of cash usage associated with a net working capital increase.\nInvesting activities used $6 million of cash in the third quarter, substantially all of which reflects mat rental fleet additions in preparation for fourth quarter rental projects.\nIt's worth noting that through the first three quarters of 2021, investments in the rental fleet totaled $13 million, the majority of which replaces mats sold from the rental fleet as part of our standard commercial offering.\nConsequently, while gross capital expenditures totaled $19 million year-to-date, our net capital investments are only $7 million.\nWe ended the third quarter with a total debt balance of $94 million and cash balance of $31 million, resulting in a modest 17% debt-to-capital ratio and 12% net debt-to-capital ratio.\nOur net debt increased by $20 million in the quarter, largely reflective of the elevated receivables as well as the additional capital investments to support our Industrial Solutions growth efforts.\nWe also purchased $10 million of our outstanding convertible bonds in the open market during the quarter, resulting in a small loss on extinguishment of debt.\nWe ended the third quarter with $24 million outstanding on our U.S. asset-based loan facility.\nAnd after providing for the $39 million convertible bond maturity next month, we have $42 million of remaining availability.\nIn total, we expect Industrial Solutions segment revenues of roughly $50 million, with the level of year-end demand for product sales being the greatest variable.\nWith the anticipated Q4 performance, the Industrial Solutions segment is expected to deliver more than $190 million of revenues for the full year 2021, just shy of our 2019 results, while also generating more than $60 million of full year EBITDA.\nThis comparison to 2019 highlights the successful transformation in this segment as the strong revenue growth in the power transmission and other industrial end markets is expected to substantially offset the more than $50 million decline in annual revenue derived from the E&P sector as compared to 2019.\nAlso, with the December one maturity of our remaining $39 million of convertible bonds, we expect interest expense to step down modestly in Q4 then level off at roughly $1 million of quarterly interest expense in 2022.\nTotal net Capex for the full year 2021 is likely to come in around $10 million.\nAs I reflect on my 15 years as the company's President and CEO, I'm extremely proud of all we have accomplished and the unique culture we have created.\nWhile there is never a perfect time to retire, I believe the time is right, having turned 65 earlier this year and with the executive leadership team in place to continue on Newpark's journey.", "summaries": "Our reported net loss in the third quarter was $0.11 per share, which included $0.04 of charges and compares to a net loss of $0.07 per share in the second quarter.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our first half fiscal 2021 revenues have grown about 10% compared to the first half of fiscal 2020, and earnings have grown at an even higher rate.\nOver the past few quarters, we've highlighted how we are enabling new experiences in mobile, like being able to record in Dolby Vision with the iPhone 12 or being able to enjoy live sports content in Dolby Atmos through a mobile app.\nThis adds to the growing number of partners that support the Dolby experience within mobile, which is highlighted by the Apple iPhone 12 lineup that features the combined Dolby Vision and Dolby Atmos experience.\nWe now have about 90% of our Dolby Cinemas opened globally to certain capacity restrictions.\nSecond quarter revenue of $320 million was above our guidance range of $280 million to $310 million, as the volumes that we had were higher-than-expected in several of our end markets.\nAnd then we also benefited from a true-up of about $15 million in the quarter for Q1 shipments reported that were above our estimate.\nOn a year-over-year basis, second quarter revenue was down from last year's $352 million due to lower recoveries and lower revenue from cinema-related business partially offset by higher adoption of Dolby Technologies and higher market volume in areas like PC and TV.\nSo the Q2 revenue was comprised of $304 million in licensing and $16 million in products and services.\nBroadcast represented about 35% of total licensing in the second quarter.\nBroadcast revenues decreased by about 19% year-over-year, and that was driven by lower recoveries offset partially by higher market volume along with higher adoption of Dolby.\nOn a sequential basis, broadcast decreased by about 25%, due primarily to lower seasonality along with lower recoveries.\nMobile represented approximately 22% of total licensing in Q2.\nMobile decreased by about 12% from last year, that was due to a shift in timing of certain contracts, and that was offset partially by higher adoption of our technologies.\nOn a sequential basis, mobile was down about 38%, due primarily to lower recoveries and timing of revenue under contracts.\nPC represented about 17% of total licensing in the second quarter.\nPC was higher than last year by about 12% due to higher market volume, along with increased adoption of Dolby Vision and Dolby Atmos.\nSequentially, PC was up by about 56%, driven by timing of revenue under contracts, along with seasonally higher activity from patent programs.\nConsumer electronics represented about 16% of total licensing in Q2.\nOn a year-over-year basis, consumer electronics was lower by about 2% due to a shift in timing of certain contracts offset partially by higher volume in devices like sound bars and DMAs, as well as higher adoption of Dolby Vision and Dolby Atmos.\nOn a sequential basis, CE decreased by about 7% due mainly to lower seasonality and timing of revenue under contracts.\nOther markets represented about 10% of total licensing in the second quarter.\nThey were up about 14% year-over-year, driven by higher revenue from gaming and automotive, and that was offset partially by lower Dolby cinema revenues.\nOn a sequential basis, other markets decreased by about 22%, driven by lower seasonality in gaming and lower admin fees from Via.\nBeyond licensing, our products and services revenue was $16 million in Q2 compared to $16.9 million in Q1 and $23 million in last year's Q2.\nTotal gross margin in the second quarter was 89.9% on a GAAP basis and 90.5% on a non-GAAP basis.\nProducts and services gross margin -- products and services gross margin on a GAAP basis was minus $345,000 in Q2 compared to minus $5.5 million in the first quarter.\nProducts and services gross margin on a non-GAAP basis was a positive $1.1 million in Q2 compared to a negative $3.9 million in the first quarter.\nOperating expenses in the second quarter on a GAAP basis were $204 million compared to $189.8 million in Q1.\nOperating expenses in the second quarter on a non-GAAP basis were $178.4 million compared to $167.1 million in the first quarter.\nOperating income in the second quarter was $83.2 million on a GAAP basis or 26% of revenue compared to $105.9 million or 30.1% of revenue in Q2 of last year.\nOperating income in the second quarter on a non-GAAP basis was $110.9 million or 34.7% of revenue compared to $129 million or 36.7% of revenue in Q2 of last year.\nIncome tax in Q2 was 10.6% on a GAAP basis and 16% on a non-GAAP basis.\nNet income on a GAAP basis in the second quarter was $76.2 million or $0.73 per diluted share, and that compares to $88.5 million or $0.86 per diluted share in last year's Q2.\nAnd net income on a non-GAAP basis in the second quarter was $94.8 million or $0.91 per diluted share, that compares to $106.6 million or $1.04 per diluted share in Q2 of last year.\nDuring the second quarter, we generated about $83 million in cash from operations which compares to the $66 million generated in last year's second quarter, and we ended the second quarter this year with about $1.2 billion in cash and investments.\nDuring the second quarter, we bought back about 760,000 shares of our common stock and ended the quarter with about $76 million of stock repurchase authorization still available.\nWe also announced today a cash dividend of $0.22 per share.\nNow with Q2 behind us, our updated scenario is for second half revenue ranging from $560 million to $600 million.\nAnd if I focus more specifically on Q3, we anticipate that third quarter total revenue could range from $260 million to $290 million.\nWithin that, licensing could range from $250 million to $275 million, while products and services revenue could range from $13 million to $18 million.\nQ3 gross margin on a GAAP basis is estimated to range from 88% to 89%, and the non-GAAP gross margin is estimated to range from 89% to 90%.\nWithin that, products and services gross margin is estimated to range from about breakeven to $1 million positive on a GAAP basis and from $1 million to $2 million positive on a non-GAAP basis.\nOperating expenses in Q3 on a GAAP basis are estimated to range from $210 million to $220 million; and operating expenses in Q3 on a non-GAAP basis, are estimated to range from $185 million to $195 million.\nOther income is projected to range from $1 million to $2 million for the third quarter, and that's $1 million to $2 million for the third quarter.\nAnd our effective tax rate for Q3 is projected to range from 20% to 21% on both a GAAP and non-GAAP basis.\nBased on a combination of the factors I just covered, we estimate that Q3 diluted earnings per share could range from $0.15 to $0.30 on a GAAP basis and from $0.37 to $0.52 on a non-GAAP basis.", "summaries": "Net income on a GAAP basis in the second quarter was $76.2 million or $0.73 per diluted share, and that compares to $88.5 million or $0.86 per diluted share in last year's Q2.\nAnd net income on a non-GAAP basis in the second quarter was $94.8 million or $0.91 per diluted share, that compares to $106.6 million or $1.04 per diluted share in Q2 of last year.\nAnd if I focus more specifically on Q3, we anticipate that third quarter total revenue could range from $260 million to $290 million.\nBased on a combination of the factors I just covered, we estimate that Q3 diluted earnings per share could range from $0.15 to $0.30 on a GAAP basis and from $0.37 to $0.52 on a non-GAAP basis.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "Quarter-end book value was $12.32 per common share, up $0.58 from Q3 2020.\nAs of the close of business last Friday, February 12, we estimate book value to be approximately $12.90 per common share ex dividend.\nARMOUR's Q4 comprehensive income was $60.2 million or $0.89 per common share.\nWe paid dividends of $0.10 per common share for each month in the fourth quarter for a total of $19.6 million.\nWe've also declared February and March common dividends at the rate of $0.10 per share and Series C preferred stock dividends for Q1 at the rate of $0.14583 per share.\nEchoing the positive market sentiment, repo financing also improved over the quarter, dropping from 20 to 25 basis points in the third quarter for 30-day tenors, down to 15 to 20 basis points currently.\nThe flip side of all the good news is that historically low mortgage rates helped create the largest wave of home for loan refinancing since 2003.\nWhile we do allocate approximately 36% of our portfolio to dollar rolls in 30-year and 15-year TBAs, 94% of the remaining portfolio are assets with favorable prepayment protection characteristics, including prepayment penalties, lower loan balances and seasoning.\nThe average CPR in our portfolio was 17.3% as of the fourth quarter versus 16% in the third quarter, which were both significantly below the aggregate speeds on more generic MBS.\nYear-to-date, the portfolio is averaging 17.9% CPR.\nThis is reflected in our implied leverage ratio of 7.7 at the end of the fourth quarter and 6.9 implied leverage ratio currently.\nARMOUR's duration as of year-end was 0.62 and is currently 0.76.\nIt should be noted that a significant portion of the portfolio's duration is in the key rate buckets of inside three years, where we expect yields to be pegged close to 0 for the foreseeable future.", "summaries": "ARMOUR's Q4 comprehensive income was $60.2 million or $0.89 per common share.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Turning specifically to the global office leasing market, JLL Research reported that activity in the third quarter was down 46% from a year earlier, reflecting an improvement from Q2, but a continuation of subdued demand.\nAsia-Pacific recorded a decrease in activity of only 5% relative to last year while EMEA and the United States were down 52% and 55% respectively.\nVacancy rates moved up across all regions in Q3, so the global vacancy right now recorded at 12.1%, reflecting a 90 basis point increase.\nDeclines in investment sales decelerated in the third quarter as global volumes down 44% compared to the same period last year.\nConsolidated revenue fell 12% to $4 billion and fee revenue declined 23% to $1.4 billion, in local currency.\nAdjusted EBITDA of $244 million represented a decline of 19% from the prior year although adjusted EBITDA margin increased 90 basis points to 17.4% in local currency, driven by cost mitigation initiatives as well as government relief program.\nAdjusted net income totaled $156 million for the quarter and adjusted diluted earnings per share totaled $2.99.\nCorporate Solutions, again, demonstrated its ability to withstand challenging market conditions, posting a modest fee revenue decline of 2% for the quarter.\nStrong earnings and cash flow management led to another standout quarter for cash generation, as evidenced by $320 million of net debt reduction, resulting in our leverage now below pre-HFF transaction level.\nIn the third quarter, we repurchased $25 million worth of shares, bringing our year-to-date cash return to shareholders to $50 million.\nOur diversified business continues to be impacted in different ways by the pandemic's economic shock.\nOur consolidated adjusted EBITDA margin expanded 90 basis points to 17.4%, driven by our ongoing cost management actions and a 240 basis point impact from various government relief programs globally, partially offset by lower transactional revenue.\nConsolidated leasing fee revenue declined 30%.\nWe compared favorably with the 46% decline in global office leasing activity, reflecting the strength of our platform.\nAccording to JLL Research, the U.S. office market has seen an increase in the share of lease activity from renewals to 55% in the third quarter from 29% in 2019, as well as a reduction in aggregate effective rents of roughly 7% in mid-March, through both an increase in free rent concessions and a decline in starting rents relative to pre-COVID.\nLooking ahead, our fourth quarter U.S. gross leasing pipeline increased 16% from three months prior.\nCapital Markets' fee revenue declined 43%, driven by an over 50% decline in investment advisory and debt placement.\nGlobal investment volume dropped 44%.\nAs Christian mentioned, our Corporate Solutions business was down 2% in the quarter and flat year-to-date.\nOur ongoing cost mitigation actions and a 180 basis point benefit from government relief programs drove an adjusted EBITDA margin of 20.9% compared with 19.3% a year earlier.\nEMEA leasing, while down 24% materially outperformed the approximate 50% decline in market volumes.\nIncluding a 120 basis point benefit from government relief program, the adjusted EBITDA margin was 2.7% compared with 6.1% a year earlier.\nIncluding a 710 basis point net benefit from government relief programs, the adjusted EBITDA margin was 20.2% compared with 14.2% a year earlier.\nTurning to LaSalle; fee revenue was down 2%.\nAdvisory fees, which are annuity like and comprised approximately 80% of LaSalle's fee revenue this quarter grew 4%.\nEquity earnings were $8 million, driven mostly by our co-investment in a publicly traded REIT in Japan.\nLaSalle's AUM totaled $66 billion at quarter end, sequentially up about $1 billion.\nYear-to-date through October, we have taken actions that will result in over $135 million of annualized fixed cost savings.\nSeparately, our expense management focus delivered over $240 million of non-permanent savings over the first nine months of 2020, including about $180 million from cost mitigation actions and $67 million from government relief.\nPivoting to our balance sheet; the sequential improvement in earnings and modest capex and investment spending drove a $320 million reduction to net debt, which ended the quarter at $752 million.\nAt the end of September, leverage was 0.8 times, down from 1.1 times at the end of June, and just below levels prior to the HFF acquisition, one quarter ahead of our initial expectation.\nWe have nearly $2.8 billion of liquidity, including approximately $440 million of cash and 85% of capacity available on our $2.75 billion revolver.", "summaries": "Adjusted net income totaled $156 million for the quarter and adjusted diluted earnings per share totaled $2.99.\nOur diversified business continues to be impacted in different ways by the pandemic's economic shock.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Last night, we reported a loss of $1.24 in adjusted operating EPS, which included $474 million in COVID-19 impacts or $5.31 per share.\nDuring the quarter, we completed a number of in-force transactions, deploying $100 million in capital, which will further add value to our underlying earnings engine.\nI'm also proud to announce that for the 10th consecutive year, RGA has been ranked #1 for business capabilities on a global basis by NMG in their 2020 global reinsurance report.\nAnd our mortality performance over the past 12 months, after adjusting for COVID-19 claims, has been in line with our expectations.\nAs a final point, it is worth reflecting that through the end of the first quarter, RGA has incurred over $1.2 billion in COVID-19 claims since the pandemic began.\nRGA reported a loss for the quarter of $115 million on a pre-tax adjusted operating basis.\nAdjusted operating earnings per share was a loss of $1.24 per share, which includes COVID-19 impacts of $5.31 per share.\nOur trailing 12-month adjusted operating ROE was 3.7%, which was reduced by COVID-19 impacts of 8.8%.\nReported premiums increased 3% in the quarter.\nGrowth was 5%, excluding the premium decline in Australia, reflecting our continued caution in that market.\nThe effective tax rate on pre-tax adjusted operating loss was 26.9% for the quarter, above the expected range of 23% to 24% due to the geographical mix of the earnings.\nBeginning with the U.S., the U.S. and Latin America traditional segment reported a pre-tax, adjusted operating loss of $344 million in the quarter, including COVID-19 claim cost of $358 million.\nFor individual mortality, approximately $340 million of claim costs are attributed to COVID-19.\nIt is important to note that our mortality experience over the past 12 months, excluding COVID-19, was in line with our expectations.\nThe traditional segment, first quarter results reflected COVID-19 claim cost of approximately $26 million.\nWe estimate the COVID-19 claim cost for the EMEA traditional segment in the quarter were $98 million.\nThe Corporate and Other segment reported pre-tax adjusted operating income of $94 million.\nThe non spread portfolio yield for the quarter was 5.67%, reflecting strong variable investment income.\nExcluding the previously mentioned accounting correction, the yield was 4.52%, as we had strong contribution this quarter from the limited partnership investments.\nThe U.S. continues to be the driver of our mortality claim costs, accounting for 74% of our global total.\nThis was approximately $17 million per 10,000 U.S. general population deaths at the lower end of our model estimates and very consistent with the prior quarter.\nAll other markets combined, accounted for approximately 10% of our COVID-19 mortality claim costs in line with our expectations, with the majority of this coming from South Africa, consistent with the high level of general population death they experienced this quarter.\nIndia accounted for less than 1% of our COVID-19 claim costs in the quarter.\nSince the beginning of the pandemic, over the last 12 months, South Africa has accounted for approximately 5% of our COVID-19 mortality claim costs and India approximately 2%.\nGoing forward, the ultimate longevity offset to our global mortality claim costs may be lower than our 10% rule of thumb, given our concentration of this business in the U.K. and the success of their vaccination efforts to date.", "summaries": "Last night, we reported a loss of $1.24 in adjusted operating EPS, which included $474 million in COVID-19 impacts or $5.31 per share.\nAdjusted operating earnings per share was a loss of $1.24 per share, which includes COVID-19 impacts of $5.31 per share.\nReported premiums increased 3% in the quarter.", "labels": "1\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "This underpins our new 20 by '25 strategy, which alludes to our plans to achieve at least $20 billion of revenue by 2025.\n1 in the categories of innovation, capital deployment, global competitiveness, quality of product and services, and long-term investment value.\nAnd of course, it sets us up well to meet our ambitious 20 by '25 targets.\nRevenue for the fourth quarter grew 10.2% on a reported basis and 11.6% at constant currency.\nThe $62 million beat above the midpoint of our guidance range was driven by stronger operational performance across all three segments, as well as higher pass-throughs partially offset by FX headwinds.\nFourth-quarter adjusted EBITDA grew 12.7%, reflecting our revenue growth, as well as ongoing productivity initiatives.\nThe $27 million beat above the midpoint of our guidance range was entirely due to our operational performance.\nFourth-quarter adjusted diluted earnings per share of $2.55 grew 20.9%.\nThat was $0.13 above the midpoint of our guidance, with the majority of the beat coming from the adjusted EBITDA drop-through.\nThis year, 50 new molecules were approved by the FDA and 72 new commercial launches took place.\nIQVIA supported nearly 80% of launches by top 20 pharma and approximately 60% of all launches.\nThere are now over 3,000 clients who have adopted one or more of our technology platforms, including human data science cloud, orchestrated analytics, E360, Omnichannel Navigator, Engage, and of course, Orchestrated Customer Engagement, or OCE.\nIn fact, the footprint of our OCE platform itself has continued to grow, with over 350 clients having adopted one or more modules on the platform since launch.\nTwo top 20 pharma clients have successfully rolled out this intelligence engine to orchestrate customer engagements in over 30 countries and across more than 40 brands each.\nTwo other top 20 pharmas are currently in the implementation phase.\nIn the quarter, we entered into an enterprise agreement with a top 10 pharma clients to utilize DMD's advanced analytic capabilities to power omnichannel engagement across all eight of their brand franchises.\nTo date, 18 of the top 20 have adopted at least one of DMD solutions.\nIn the fourth quarter, we won two large post-authorization safety studies in an autoimmune area with a top 10 pharma.\nThese studies use existing healthcare data to observe patients over a period of 10 years to better understand long-term effects of the treatment.\nDuring the year, we added 90 new OCT clients, bringing the total to over 350 clients who have adopted one or more modules within our clinical technology suite since launch, including all of the top 10 and 18 of the top one.\nWithin OCT's digital patient suite this year, we secured three preferred provider partnerships with top 30 pharmaceutical clients to provide our interactive response technology, IRT capabilities, to support site operations across their entire clinical trial portfolios.\nFinally, our overall R&DS business continues to build on its strong momentum with over $2.4 billion of net new business, including pass-throughs, and it set a record for quarterly service bookings, achieving over $1.9 billion of service bookings for the first time ever.\nThis resulted in a fourth-quarter contracted net book-to-bill ratio of 1.36 excluding pass-throughs and 1.24, including pass-throughs.\nFor the calendar year, we delivered over $10 billion of total net new bookings for the first time ever, an increase of 14.6% compared to 2020.\nThis led to an LTM contracted net book-to-bill ratio of 1.35 excluding pass-throughs and 1.34 including pass-throughs.\nOur contracted backlog in R&DS, including pass-throughs, grew 10.2% year over year to a record $24.8 billion as of December 31, 2021.\nFourth-quarter revenue of $3.636 billion grew 10.2% on a reported basis and 11.6% at constant currency.\nIn this year's fourth quarter, COVID-related revenues were approximately $325 million, down about 25% versus the fourth quarter of 2020.\nTechnology and Analytics Solutions revenue for the fourth quarter was $1.496 billion, up 5% reported and 6.6% at constant currency.\nYear over year, TAS experienced just over 400 basis points of headwind due to a step-down in COVID-related work.\nR&D Solutions fourth-quarter revenue of $1.944 billion was up 15.4% at actual FX rates and 16.3% at constant currency.\nExcluding all COVID-related work, organic growth at constant currency and R&DS was approximately 25%.\nContract Sales and Medical Solutions, or CSMS, fourth-quarter revenue of $196 million grew 3.7% reported and 7.4% at constant currency.\nFor the full year, revenue was $13.874 billion, growing at 22.1% reported and 21.1% at constant currency.\nFull-year Technology and Analytics Solutions revenue was $5.534 billion, up 13.9% reported and 12.4% at constant currency.\nFull-year revenue in R&D Solutions was $7.556 billion, growing at 31.2% reported and 30.4% at constant currency.\nFull-year CSMS revenue was $784 million representing 5.8% growth on a reported basis and 5.7% at constant currency.\nAdjusted EBITDA was $828 million for the fourth quarter, which was 12.7% growth on a reported basis.\nFull-year adjusted EBITDA was $3.022 billion, up 26.8% year over year on a reported basis.\nFourth-quarter GAAP net income was $318 million, and GAAP diluted earnings per share was $1.63.\nFull-year GAAP net income was $966 million or $4.95 of earnings per diluted share.\nAdjusted net income was $496 million for the fourth quarter, up 20.7% year over year.\nAnd adjusted diluted earnings per share grew 20.9% to $2.55.\nFor the full year, adjusted net income was $1.760 billion or $9.03 per share, up 41%.\nR&DS backlog now stands at a record $24.8 billion, an increase of 10.2% year over year.\nFull year 2021 net new bookings, including pass-throughs, rose over $10 billion for the first time.\nThat's 14.6% growth compared to 2020.\nCash flow from operations was $692 million, and capex was $184 million, which resulted in free cash flow of $508 million.\nThis brought our free cash flow for the full year to a record $2.3 billion, up 70% versus the prior year.\nAt December 31, cash and cash equivalents totaled $1.366 billion and gross debt was $12.125 billion, resulting in net debt of $10.759 billion.\nOur net leverage ratio at December 31 was 3.56 times trailing 12-month adjusted EBITDA.\nNow it's worth highlighting that our improved free cash flow over the last two years allowed us to deploy approximately $4.5 billion of capital to internal investments, acquisitions, and share repurchase, while at the same time, we were able to reduce our net leverage ratio from a high of 4.8x in Q2 2020, which you'll recall was the height of the pandemic to nearly 3.5 times.\nAnd in doing this, we achieved our Vision '22 net leverage ratio target of 3.5 times to four times a full year early.\nIn the quarter, we repurchased $174 million of our shares, which resulted in full-year share repurchase of $395 million, and we ended the year with 195 million fully diluted shares outstanding and $523 million of share repurchase authorization remaining under our existing program.\nNow last week, our board of directors approved a $2 billion increase to our share repurchase authorization, which increases our remaining authorization to just over $2.5 billion.\nAnd in maintaining this guidance, we actually absorbed a $70 million revenue headwind from FX since we initially guided in November.\nSo, to summarize the overall guidance for the full year, we expect revenue to be between $14.700 billion and $15 billion, which represents year-over-year growth of 7.1% to 9.2% at constant currency and 6% to 8.1% on a reported basis compared to 2021.\nNow we now expect adjusted EBITDA to be between $3.330 billion and $3.405 billion representing year-over-year growth of 10.2% to 12.7%.\nAnd we also now expect adjusted diluted earnings per share to be between $9.95 and $10.25, which represents year-over-year growth of 10.2% to 13.5%.\nNow our full year 2022 guidance assumes at December 31, 2021, foreign currency exchange rates remain, in fact, for the balance of the year.\nNow compared to the prior year, I should mention FX is now a headwind of 110 basis points to our full-year revenue growth, and our projected revenue growth includes a little bit over 100 basis points of contribution from M&A activity.\nNow with our analyst and investor conference in November, we told you to anticipate that our COVID-related revenue will step down by approximately $1 billion in 2022 but will more than compensate for that headwind with strong growth in our base business.\nAt the segment level, we anticipate full-year Technology and Analytics Solutions revenue growth of between 5% and 7%.\nResearch and Development Solutions revenue growth is expected to be between 8% and 10%.\nAnd finally, Contract Sales and Medical Solutions revenue was anticipated to be down about 2%.\nFor the first quarter, our revenue is expected to be between $3.515 billion and $3.575 billion, representing growth of 4.8% to 6.6% on a constant-currency basis and 3.1% to 4.9% on a reported basis.\nAdjusted EBITDA is expected to be between $800 million and $815 million, up 7.5% to 9.5%.\nAnd finally, adjusted diluted earnings per share is expected to be between $2.40 and $2.46, growing 10.1% to 12.8%.\nR&DS recorded its largest-ever quarter of service bookings and for the first time, had over $10 billion of total net new bookings in a year.\nOur contracted backlog improved to a record of nearly $25 billion, up over 10% year over year.\nWe delivered another strong quarter of free cash flow, bringing the full year to a record $2.3 billion.\nWe closed 2021 with net leverage of 3.6 times trailing 12-month adjusted EBITDA.\nOur board approved a $2 billion increase to our share repurchase authorization.", "summaries": "Fourth-quarter adjusted diluted earnings per share of $2.55 grew 20.9%.\nFourth-quarter revenue of $3.636 billion grew 10.2% on a reported basis and 11.6% at constant currency.\nFourth-quarter GAAP net income was $318 million, and GAAP diluted earnings per share was $1.63.\nAnd adjusted diluted earnings per share grew 20.9% to $2.55.\nThis brought our free cash flow for the full year to a record $2.3 billion, up 70% versus the prior year.\nAnd in maintaining this guidance, we actually absorbed a $70 million revenue headwind from FX since we initially guided in November.\nAnd we also now expect adjusted diluted earnings per share to be between $9.95 and $10.25, which represents year-over-year growth of 10.2% to 13.5%.\nNow our full year 2022 guidance assumes at December 31, 2021, foreign currency exchange rates remain, in fact, for the balance of the year.\nFor the first quarter, our revenue is expected to be between $3.515 billion and $3.575 billion, representing growth of 4.8% to 6.6% on a constant-currency basis and 3.1% to 4.9% on a reported basis.\nAnd finally, adjusted diluted earnings per share is expected to be between $2.40 and $2.46, growing 10.1% to 12.8%.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "In the third quarter, we reported earnings per share of $1.30 and generated total revenue of $5.9 billion.\nOur linked quarter pre-tax pre-provision net revenue growth of 2.7% was driven by continued momentum across our fee businesses, growth in average loan balances, and continued focus on expense management resulting in positive operating leverage.\nWe released $310 million of loan loss reserves this quarter, supported by our outlook on the economy and better-than-expected credit quality metrics.\nOur book value per share totaled $32.22 at September 30, which was 1.5% higher than June 30.\nOur CET1 ratio was 10.2% at September 30.\nSlide 4 provides key third quarter performance metrics, including a return on tangible common equity of over 20%.\nOur starting point is that, we have about 1.1 million Business Banking relationships, which we define as businesses with under $25 million in revenue.\nAs we discussed previously, we believe we can grow our small business relationships by 15% to 20% and related revenue by 25% to 30% over the next few years.\nAverage loans increased 0.8% compared with the second quarter, driven by growth in other retail loans, primarily installment loans, as well as growth in credit card and residential mortgages.\nAt September 30, PPP loan balances totaled $2.4 billion compared to $4.9 billion at June 30.\nExcluding PPP loans, third quarter average loans grew by 1.8% on a linked quarter basis.\nTurning to Slide 8, average deposits increased 0.5% compared with the second quarter and 6.4% compared with a year ago.\nNon-performing assets declined on both a linked quarter and year-over-year basis and our net charge-off ratio hit a record low of 20 basis points.\nOur reserve release was $310 million this quarter, primarily reflecting strong credit quality metrics.\nOur allowance for credit losses as of September 30 totaled $6.3 billion, or 2.1% of loans.\nIn the third quarter of 2021, we earned $1.30 per diluted share.\nThese results include a reserve release of $310 million.\nTurning to Slide 11, net interest income on a fully taxable equivalent basis of $3.2 billion increased by 1% compared with the second quarter.\nCompared with a year ago, non-interest income declined 0.7% as decreases in mortgage revenue and commercial products revenue more than offset strong growth in payments revenue, trust and investment management fees, deposit service charges, and treasury management fees.\nOn a linked quarter basis, non-interest income increased 2.8% reflecting higher-than-expected payments revenue and a 20% increase in mortgage revenue driven by growth in production volume and related gain on sale margins, as well as higher loan sales.\nHowever, corporate payment revenues increased by 13%, which was better-than-expected, driven by improving business spend activity.\nMerchant processing revenue increased by 4.8% due to higher merchant and equipment fees, as well as higher sales volumes.\nTurning to Slide 14, non-interest expense increased 1.2% compared to the second quarter.\nOur common equity Tier 1 capital ratio at September 30 was 10.2%, which increased slightly compared to June 30.\nAfter the closing of the acquisition, we expect to operate at a CET1 capital ratio between our target ratio and 9%.\nAs PPP winds down and we approach the end of the forgiveness period, we expect PPP fees to decline $60 million to $70 million in the fourth quarter compared with the third quarter.\nIn the fourth quarter, we expect to see a seasonal increase in amortization of tax-advantaged investments of approximately $60 million, as well as some seasonal impacts in marketing and in business investments.\nFor the full-year of 2021, we expect our taxable equivalent tax rate to be approximately 22%.", "summaries": "In the third quarter, we reported earnings per share of $1.30 and generated total revenue of $5.9 billion.\nWe released $310 million of loan loss reserves this quarter, supported by our outlook on the economy and better-than-expected credit quality metrics.\nOur CET1 ratio was 10.2% at September 30.\nOur reserve release was $310 million this quarter, primarily reflecting strong credit quality metrics.\nIn the third quarter of 2021, we earned $1.30 per diluted share.\nThese results include a reserve release of $310 million.\nOur common equity Tier 1 capital ratio at September 30 was 10.2%, which increased slightly compared to June 30.", "labels": "1\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "Regarding our Q2 performance, our revenues were $4.03 billion.\nOur organic revenue growth continued to show progress as we improved from minus 3.7% in Q1 to minus 2.4% in Q2.\nAlso, I was very pleased to see that the GBS business segment grew for the second quarter in a row from positive 2% in Q1 to positive 3.4% in Q2.\nWe also continue to improve the organic revenue of the GIS business segment from minus 9.1% in Q1 to minus 8% in Q2.\nOur adjusted EBIT margin was 8.6% and was driven by the operational work that we are doing to optimize our business.\nBook-to-bill for the quarter was 0.91, which came in below our goal of one due to the timing of a couple of deals.\nWe continue to track to a book-to-bill over one year to date, and we expect to be back above 1.0 in Q3.\nOur non-GAAP earnings per share was $0.90 in the quarter, which is up $0.41, as compared to $0.64 a year ago.\nOn a year-to-date basis, we have now produced roughly $100 million in cash.\nThe last time we gave you our NPS score was during the Investor Day in June, and it was 18, almost within the industry best practice range of 20 to 30.\nJim will detail out the financial results of all of these operational work that, simply put, this work is allowing us to improve margins from 8% in Q1 to 8.6% in Q2 and gives us the confidence to increase our margin and earnings per share guidance for FY '22.\nIn Q2, 59% of our bookings were new work and 41% were renewals.\nThe evidence is that Analytics and Engineering grew 17.3% in Q2, which is clearly helping us create growth in our GBS business segment.\nNow before I arrived and implemented the strategy, our revenues were roughly $80 million per year, split a third GBS and two-thirds GIS.\nThe result is we have increased the total revenue on this account by 13%, and the mix between GBS and GIS is now split 50-50 as we are now providing them Analytics and Engineering services.\nAs you can see, our progress continues.\nOur organic revenue improved to a decline of 2.4% or a 130 basis point improvement from Q1.\nOur adjusted EBIT margin continues to improve as well, delivering 8.6% in Q2, up 60 basis points as compared to the first quarter.\nYear over year, our adjusted EBIT margins have expanded 240 basis points or 460 basis points, excluding the disposed businesses.\nOur book-to-bill for Q2 was 0.91, below our goal of one due to timing and remains over one year to date.\nNon-GAAP diluted earnings per share was $0.90, up $0.06 from Q1 and a healthy 41% increase as compared to the prior year.\nOur GBS segment continued its strong growth performance, posting its second quarter of positive organic revenue growth of 3.4%, an improvement from 2% in the first quarter.\nOur GBS margin was 15.9%, up 150 basis points compared to the first quarter and up 180 basis points compared to prior year.\nOur GIS segment organic revenue declined 8%, a full 110 basis point improvement compared to the first quarter and improved 380 basis points compared to the decline from prior year.\nGIS margins were 5.5%, an improvement of 390 basis points compared to prior year.\nAnalytics and Engineering revenue was $520 million, up 17.3%.\nAnalytics and Engineering book-to-bill was 0.95 and 1.13 year to date.\nThe Applications layer was up 1.5%, book-to-bill was 0.94 and 1.13 year to date.\nBPS, our smallest layer of the enterprise technology stack, at $118 million of revenue, was down 13.7%.\nBook-to-bill was 0.69 and 0.91 year to date.\nCloud and security revenue was $521 million, down 1.5%.\nBook-to-bill was at 0.8 in the quarter and 0.82 year to date.\nIT Outsourcing revenue was $1.05 billion, down 9.6%.\nITO book-to-bill was 0.81 and 0.92 year to date.\nThe two deals Mike mentioned earlier that slipped out of Q2 that were subsequently closed were in the ITO and Cloud and Security layers of our technology stack and would have boosted our GIS book-to-bill for the quarter to over 1.1.\nLastly, Modern Workplace revenues were $581 million, down 10.9% as compared to prior year.\nThis is an improvement from last quarter when Modern Workplace was down 19.7% year over year.\nBook-to-bill was 1.2 and 1.1 year to date.\nWe reduced our debt from $12 billion to $5.1 billion.\nNet interest expense has been reduced from $83 million in the first quarter of FY '21 to $45 million this quarter.\nWith the full benefit of our refinancing, we anticipate interest expense to be reduced to approximately $33 million in Q3.\nIn the last year or so, we've significantly curtailed new capital lease originations from $1.1 billion in FY '20 and are on track to reduce originations to approximately $500 million this year.\nThese efforts to better manage this form of financing allowed us to reduce our debt and ultimately our capital lease cash outflows from $245 million in Q1 FY '21 to $177 million this quarter.\nWe expect further reductions in our quarterly cash outflows to around $150 million per quarter at the end of FY '22 and further below that level going forward.\nOur capital expenditures were reduced from $225 million in Q1 FY '21 to $159 million Q2 FY '22.\nCapex and capital lease originations as a percent of revenue were 10.2% for FY '20, 8% for FY '21 and now down to 5.3% for Q2 FY '22.\nDelivering 5.3% is a good step forward related to better managing our capital spend as it gets us in the peer range, albeit at the top end and is a proof point of our improved operational rigor.\nBy extending maturities, we now have no bond maturities before FY '26, lowering maturity towers and reducing annual interest expense and cash outflows by about $50 million a year.\nCash flow from operations totaled an inflow of $563 million.\nFree cash flow for the quarter was $404 million, up 33% compared to prior year and moves us to positive free cash flow for the first half of FY '22 of $100 million.\nThe second quarter was impacted by previously disclosed cash tax payments related to business disposals, accelerated interest payments due to our refinancing and a payment related to restructuring a vendor relationship to take greater control over our delivery.\nOur third quarter has two discrete nonrecurring cash payments, including a $60 million payment associated with a legacy vendor that has a take-or-pay agreement and a $90 million payment associated with COVID relief legislation where we deferred certain tax payments and now have opted to accelerate the tax payments to utilize the tax deduction.\nThe negative cash flow over the last three quarters was due in large part to absorbing a number of nonrecurring cash outflows of over $1.7 billion to put the business on a better trajectory, building our foundation.\nstate and local health and human services business for sale; $114 million to end an AR securitization program; $88 million to end a value-destructive take-or-pay agreement; the $1.7 billion headwinds put into perspective; the $749 million trailing four quarters negative free cash flow.\nWe remain on track to reduce restructuring in TSI from an average of $900 million per year over the last four years to $550 million in FY '22 and about $100 million in FY '24.\nThe Investor Day chart called for 55% of our free cash flow to be used to pay debt and capital lease obligations.\nAs a result of our progress, our cash outflows for debt and capital lease financing are now expected to be about 20% of our free cash flow.\nThat leaves 80% of our expected free cash flow to invest in our business and/or repurchase our stock.\nWe believe we will create more value by continuing to focus on driving the transformation journey across our business, improving the fundamentals and continuing to build organic growth up the stack, ultimately delivering 1% to 3% organic growth in FY '24.\nRelated to our debt, we have a clear line of sight to achieving our targeted debt level of $5 billion near term as we have scheduled debt repayments via our capital lease financing and commercial paper.\nOur preference is to maintain approximately $2.5 billion of cash on hand to fund an appropriate level of working capital.\nWhen we have cash in excess of $2.5 billion, we will determine how best to deploy the cash as we do not expect to leave significant levels of excess cash, generating no meaningful returns on our balance sheet for an extended period of time.\nIn Q2, we repurchased $83 million of our common stock, bringing the FY '22 year-to-date repurchases to $150 million or 3.9 million shares.\nOur share repurchases are a disciplined approach to capital allocation and are expected to be self-funding using a rather simple formulaic approach of deploying cash in excess of $2.5 billion when we are at our target debt level of approximately $5 billion.\nWe expect revenue between $4.08 billion and $4.13 billion.\nIf exchange rates were at the same level as when we gave guidance last quarter, our third quarter revenue guidance range would be $90 million higher.\nOrganic revenue decline improved to down 1% to down 2.5%; adjusted EBIT margin of 8.6% to 8.9%.\nNon-GAAP diluted earnings per share is expected to be in the range of $0.88 to $0.93 per share.\ndollar, our revenues are expected to be negatively impacted by approximately $200 million, which has been reflected in our revised guidance range of $16.4 billion to $16.6 billion; reaffirming organic revenue growth at down 1% to down 2%; increasing adjusted EBIT to a range of 8.5% to 8.9%; increasing non-GAAP diluted earnings per share to $3.52 to $3.72 per share; and reaffirming free cash flow guidance of $500 million.\nThis also gives us confidence that we will achieve our FY '24 guidance of 1% to 3% growth.", "summaries": "Regarding our Q2 performance, our revenues were $4.03 billion.\nOur non-GAAP earnings per share was $0.90 in the quarter, which is up $0.41, as compared to $0.64 a year ago.\nAs you can see, our progress continues.\nNon-GAAP diluted earnings per share was $0.90, up $0.06 from Q1 and a healthy 41% increase as compared to the prior year.\nThe second quarter was impacted by previously disclosed cash tax payments related to business disposals, accelerated interest payments due to our refinancing and a payment related to restructuring a vendor relationship to take greater control over our delivery.\nWe expect revenue between $4.08 billion and $4.13 billion.\nNon-GAAP diluted earnings per share is expected to be in the range of $0.88 to $0.93 per share.\ndollar, our revenues are expected to be negatively impacted by approximately $200 million, which has been reflected in our revised guidance range of $16.4 billion to $16.6 billion; reaffirming organic revenue growth at down 1% to down 2%; increasing adjusted EBIT to a range of 8.5% to 8.9%; increasing non-GAAP diluted earnings per share to $3.52 to $3.72 per share; and reaffirming free cash flow guidance of $500 million.", "labels": 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{"doc": "The firm reported record quarterly net revenues of $2.7 billion and record quarterly net income of $429 million, or earnings per diluted share of $2.02, which reflects the impact of the three for two stock split in September.\nExcluding the $10 million of acquisition-related expenses, quarterly adjusted net income was $437 million and adjusted earnings per diluted share equaled $2.06.\nAnnualized return on equity for the quarter was 21.3% and adjusted annualized return on tangible common equity was 24.1%, a very impressive result, especially in the near zero-rate environment and given our strong capital position.\nWe ended the quarter with record total client assets under administration of $1.18 trillion, up 27% on a year-over-year basis and 1% sequentially.\nWe also achieved record PCG assets and fee-based accounts of $627 billion and record financial assets under management of $192 billion.\nWe ended the quarter with records of 8482 financial advisors, net increases of 243 over the prior period and 69% over the preceding quarter, representing a new record during the fiscal year we recruited financial advisors with approximately $330 million of trailing 12-month production and approximately $54 billion of client assets to our domestic independent contractor and employee channels.\nAlso in the Private Client Group, advisors generated domestic net new assets of approximately $83 billion in fiscal 2021, representing 10% of domestic PCG assets at the beginning of the fiscal year, a very strong result reflecting our excellent retention and record recruiting.\nAlso worth noting on the slide is the impressive loan growth at Raymond James Bank during the quarter, up 5% sequentially to a record $25 billion.\nThe Private Client Group generated record quarterly net revenues of $1.8 billion and pre-tax income of $222 million, a 12.3% pre-tax margin reflecting significant operating leverage over the past year.\nThe Capital Markets segment generated record quarterly net revenues of $554 million and pre-tax income of $183 million, representing an extremely impressive 33% pre-tax margin to net revenues.\nThe Asset Management segment generated record net revenues of $238 million and record pre-tax income of $114 million, up 29% and 46% over the year ago period respectively.\nRaymond James Bank generated quarterly net revenues of $176 million and pre-tax income of $81 million.\nQuarterly net revenues increased 9% over the year ago quarter, as higher levels of earning assets offset year-over-year compression in the bank's net interest margin.\nSequentially, net revenues grew 4% due to higher asset balances during the quarter.\nLooking at the fiscal year 2021 results on slide seven, we generated record net revenues of $9.76 billion, up 22% over fiscal year 2020 and record net income of $1.4 billion, up 73% over fiscal 2020.\nExcluding losses on the extinguishment of debt and acquisition-related expenses during the year, adjusted net income was $1.49 billion, up 74% over adjusted net income in fiscal 2020.\nRecord quarterly net revenues of $2.7 billion grew 30% year-over-year and 9% sequentially.\nRecord asset management fees grew 8% sequentially, commensurate with the sequential increase in the beginning of the quarter balance of fee-based assets.\nPrivate Client Group assets and fee-based accounts were up 2% during the fiscal fourth quarter, providing a modest tailwind for this line item for the first quarter of fiscal 2022.\nConsolidated brokerage revenues of $541 million grew 9% over the prior year, but declined 2% from the preceding quarter.\nBrokerage revenues in PCG were up 17% on a year-over-year basis, but flat sequentially due to lower trading volumes, which offset the benefit from higher asset balances and associated trailing commissions.\nFor the fiscal year, brokerage revenues were up 13% to a record $2.2 billion, reflecting records for both PCG and fixed income, which had a fantastic year that was a testament to their leading position in the depository segment.\nAccount and service fees of $170 million increased 21% year-over-year and 6% sequentially, largely due to higher average mutual fund assets driving higher associated service fees.\nOther revenues of $74 million were up 35% sequentially, primarily due to higher tax credit funds revenues.\nWe also had $18 million of private equity valuation gains during the quarter of which approximately $5 million were attributable to non-controlling interest reflected in other expenses.\nClients' domestic cash sweep balances, which are the primary source of funding for our interest-earning assets and the balances with third-party banks that generate RJBDP fees ended the quarter at a record $66.7 billion, up 6% over the preceding quarter and representing 6.3% of domestic PCG client assets.\nAs we continue to experience growing cash balances and less demand from third-party banks during fiscal 2021, $10.8 billion of client cash is being held in the client interest program at the broker dealer.\nOn slide 12, it was great to see an 8% sequential increase in the combined net interest income and BDP fees from third-party banks to $198 million.\nThis growth was largely attributable to strong asset growth and a resilient net interest margin at Raymond James Bank, which remained right at 1.92% for the quarter.\nWe expect the bank's NIM to settle right around 1.9% over the next couple of quarters.\nThe average yield on RJBDP balances with third-party banks remained flat at 29 basis points in the quarter.\nThe compensation ratio decreased sequentially from 67.2% to 65.8% largely due to record revenues in the capital markets segment, which had a very low 52% compensation ratio during the quarter.\nGiven our current revenue mix and disciplined management of expenses, we are confident we can maintain a compensation ratio of 70% or lower in this near-zero short-term interest rate environment.\nAnd as we experienced in fiscal 2021, we can do meaningfully better than 70% with Capital Markets revenues at or near these record levels, which is our expectation for at least the next quarter or two.\nNon-compensation expenses of $361 million decreased 15% sequentially, primarily driven by the $98 million loss, on extinguishment of debt in the fiscal third quarter.\nJust as a reminder, business development expenses totaled about $200 million in fiscal 2019, before the start of the pandemic.\nAdditionally, whereas we had a $32 million net benefit for credit losses in fiscal 2021, we would expect bank loan loss provisions for credit losses associated with net loan growth, in fiscal 2022.\nPre-tax margin was 20.8% in the fiscal fourth quarter of 2021.\nAnd adjusted pre-tax margin was 21.2%, which was boosted by record revenues and still relatively subdued business development expenses.\nAt our Analyst and Investor Day in June, we outlined a pre-tax margin target of 15% to 16% in this near-zero interest rate environments.\nOn slide 15, at the end of the quarter, total assets were approximately $61.9 billion an 8% sequential increase, reflecting solid growth of loans at Raymond James Bank as well as a substantial increase in client cash balances being held on the balance sheet.\nThe total capital ratio of 26.2% and a Tier 1 leverage ratio of 12.6% are both over double the regulatory requirements to be well capitalized, giving us significant flexibility to continue being opportunistic and grow the business.\nYou can see that RJF corporate cash at the parent ended the quarter at $1.15 billion, decreasing 26% during the quarter, as we have restricted the cash that we plan on using to close on the Charles Stanley acquisition, which we currently expect to close in the first or second quarter of fiscal 2022, for as soon as we receive the requisite regulatory approvals.\nDuring the fiscal year, we repurchased nearly 1.5 million shares, split adjusted for $118 million.\nAs of October 27th, $632 million remained under the current share repurchase authorization.\nCriticized loans declined and non-performing assets remain low at just 20 basis points.\nThe bank loan loss provision of $5 million was primarily driven by strong loan growth during the quarter.\nThe bank loan allowance for credit losses as a percent of loans held for investment, declined from 1.34% in the preceding quarter to 1.27% at quarter end.\nFor the corporate portfolios these allowances are higher at around 2.25%.\nIn the Private Client Group segment, results will benefit modestly by starting the fiscal first quarter with a 2% sequential increase of assets in fee-based accounts.", "summaries": "The firm reported record quarterly net revenues of $2.7 billion and record quarterly net income of $429 million, or earnings per diluted share of $2.02, which reflects the impact of the three for two stock split in September.\nExcluding the $10 million of acquisition-related expenses, quarterly adjusted net income was $437 million and adjusted earnings per diluted share equaled $2.06.\nRecord quarterly net revenues of $2.7 billion grew 30% year-over-year and 9% sequentially.\nYou can see that RJF corporate cash at the parent ended the quarter at $1.15 billion, decreasing 26% during the quarter, as we have restricted the cash that we plan on using to close on the Charles Stanley acquisition, which we currently expect to close in the first or second quarter of fiscal 2022, for as soon as we receive the requisite regulatory approvals.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For the quarter and reporting all percentages on a constant-currency basis, consolidated revenues were $720 million, with CooperVision at $523 million, up 25%; and CooperSurgical at $197 million, up 58%.\nNon-GAAP earnings per share were $3.38.\nFor CooperVision, the Americas grew 38% with clariti, MyDay, and Biofinity leading the way.\nEMEA grew 15% in the quarter, led by strength in MyDay and Biofinity.\n1 contact lens company in EMEA, so we're obviously over-indexed in this region and the impact from COVID did temper the market's performance.\nLastly, Asia Pac was up 19%, led by strength in clariti and MyDay.\nMoving to some details, silicone hydrogel dailies grew 31% with MyDay and clariti both posting strong results.\nFrom a market perspective, there's still roughly $2.4 billion in annual global sales of older daily hydrogels that we expect to be traded up to silicones in the coming years.\nWe also just announced that we've doubled the number of prescription options for Biofinity Toric and to provide context on how significant this is, Biofinity Toric is the most prescribed toric lens in the world and is now available at over 33,000 prescriptions.\nThe multifocal category is roughly 10% of the $8.5 billion global contact lens market and roughly half of that is in dailies.\nGiven we're currently under-indexed in the daily segment at roughly a 16% share, we believe the MyDay Multifocal will be very successful.\nMoving to myopia management, our portfolio grew 122% this quarter to $14 million.\nWithin this, MiSight grew 152% to $4 million, and Ortho K grew 112% to $10 million.\nGiven the strength we're seeing, we now expect this portfolio to reach $65 million in sales this year and exceed $100 million next year.\nOur momentum has been accelerating, including in the U.S., where sales grew sequentially from 100,000 to 700,000, and we're about to launch in South Korea, which should be a great market.\nFrom a fitting perspective, the average age of a new MiSight wearer remains 11, compared to a regular new contact lens wearer of 17, showing this treatment is bringing kids into contact lenses at a much younger age.\nOn a longer-term basis, the macro growth trends remain solid, with roughly one-third of the world being myopic today, and that number is expected to increase to 50% by 2050.\nMoving to CooperSurgical, this was an outstanding quarter, with record revenues of $197 million in all three focus areas: fertility, PARAGARD, and office and surgical medical devices outperforming.\nStarting with fertility, revenues grew 53% year over year to $84 million, easily becoming the best fertility quarter we've ever had.\nWithin our office and surgical unit, we grew 62%, with PARAGARD up 103% and office and surgical medical devices up 41%.\nAs the only 100% hormone-free IUD in the U.S. market, the product offers fantastic, long-lasting birth control that addresses the needs and interests of women looking for a healthy alternative.\nOur second-quarter consolidated revenues increased 37% year over year or 32% in constant currency to $720 million.\nConsolidated gross margin increased year over year to 68.1%, up from 65.8%.\nOpex was up 17% year over year as expenses naturally increased with the rebound in revenues, along with higher sales and marketing expenses associated with investments in areas such as myopia management.\nHaving said that, expenses were kept under control, resulting in consolidated operating margins of 26.8%, up from 17.4% last year.\nInterest expense was $6.1 million due to lower interest rates and lower average debt levels and the effective tax rate was 9.6%, driven by a 2.1% benefit from options exercises.\nNon-GAAP earnings per share was $3.38 with roughly 49.7 million average shares outstanding.\nFree cash flow was very solid at $143 million, comprised of $193 million of operating cash flow, offset by $50 million of capex.\nNet debt decreased to $1.6 billion, and our adjusted leverage ratio decreased from 2.1 to 1.8 times, driven by lower debt and improving EBITDA.\nThe first was No7 Contact Lens, a U.K.-based contact lens manufacturer primarily focused on specialty lenses, including Ortho K, that had annual revenue of roughly $4.4 million, which we purchased for roughly $12 million.\nOBP Medical had roughly $10 million in annual revenues, and we purchased them for $60 million.\nConsolidated revenues are expected to range from $2.855 billion to $2.885 billion, up 14% to 15% in constant currency, with CooperVision revenues between $2.11 billion and $2.13 billion, up 11% to 12% in constant currency; and CooperSurgical revenues between $745 million and $755 million, up 25% to 27% in constant currency.\nNon-GAAP earnings per share is expected to range from $13.20 to $13.40.\nGiven the lower tax rate in Q2, we now expect our full-year tax rate to be around 11%.\nAnd to wrap up on guidance, our business continues to strengthen, and we now expect free cash flow to exceed $500 million this year.", "summaries": "Non-GAAP earnings per share were $3.38.\nNon-GAAP earnings per share was $3.38 with roughly 49.7 million average shares outstanding.\nNon-GAAP earnings per share is expected to range from $13.20 to $13.40.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0"}
{"doc": "The recordable rate was 1.34.\nWe have $120 million of cash and over $400 million of liquidity.\nDuring the year, approximately 200 frontline supervisors completed a 12-month leadership program that covered safety, leadership skills, and LEAN.\nOur LEAN journey continued in 2020, with almost 900 entries in our global Manitowoc Way Lessons Learned Competition.\nIn terms of our balance sheet, we reached our second-half target to reduce inventory by $80 million on a currency-neutral basis.\nOur fourth-quarter orders totaled $509 million, an increase of 8% compared to $472 million of orders last year.\nOn a currency-neutral basis, Q4 orders were up $22 million or 5%.\nOur 2020 ending backlog of $543 million was up 14% over the prior year and up 10% on a currency-neutral basis.\nNet sales in the fourth quarter of $430 million were in line with our expectations and decreased $33 million or 7% from a year ago.\nNet sales were favorably impacted by approximately 4% from changes in foreign currency exchange rates.\nOur adjusted EBITDA for the fourth quarter was $34 million, an increase of approximately 11% year over year.\nAs a percentage of sales, adjusted EBITDA margin improved to 7.9%, an improvement of 120 basis points over the prior year.\nDuring the fourth quarter, we incurred approximately $1 million of restructuring expenses predominantly related to severance costs in India and Europe.\nOur GAAP diluted earnings per share in the quarter was $0.05.\nOn an adjusted basis, diluted earnings per share declined $0.16 from the prior year to $0.19 per diluted share.\nWe generated $36 million of cash from operating activities in the quarter.\nOn a currency-neutral basis, we achieved our inventory-reduction target of $80 million in the second half of the year.\nWe ended the year with a cash balance of $129 million, a decline of approximately $70 million year over year.\nHowever, our total liquidity remained strong at $412 million with no borrowings outstanding on our ABL.\nOrders totaled roughly $1.5 billion, down $127 million or 8% from the prior year.\nForeign currency exchange rates benefited 2020 orders by approximately 1%.\nOur net sales for the year totaled approximately $1.4 billion, a 21% decrease from 2019, and were positively impacted by $12 million or 1% due to favorable changes in foreign currency exchange rates.\nOur adjusted EBITDA declined $74 million or 47% from the prior year, resulting in a 19% decremental margin on nearly $400 million of less revenue.\nOur full-year 2020 adjusted net loss was $12 million, compared to net income of $67 million in 2019.\nAdjusted diluted net loss per share of $0.35 was impacted by approximately $0.01 from our first-quarter share repurchases.\nFull-year cash flows from operating activities were a use of $35 million, primarily driven by the timing of accounts receivable collections and the net loss recorded in the year.\nBetween our discretionary spending restrictions, bonus program costs, social claim benefits, and increases in insurance costs, we will easily see more than a $15 million cost headwind.\nWe have earmarked $15 million of capex to further expand our European tower crane rental fleet in 2021.", "summaries": "Our GAAP diluted earnings per share in the quarter was $0.05.\nOn an adjusted basis, diluted earnings per share declined $0.16 from the prior year to $0.19 per diluted share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Quarter 4 net revenues were up 28% and earnings per share up 46% versus a year ago on a non-GAAP currency-neutral basis.\nOn the same basis, Quarter 4 net revenues are 19% above pre-COVID levels in 2019.\nAccording to our Quarter 4 SpendingPulse report, which is always based on all payment types including cash and check, guest retail sales ex auto, ex gas were up 6.4% versus a year ago and up 10.9% versus 2019.\nSpendingPulse shows that overall European retail sales in Quarter 4 were up 3.3% versus a year ago and up 1.3% versus 2019.\n60% of the world's population is now at least partially vaccinated, effective therapeutics are becoming available, and governments are using more targeted measures to limit the spread.\nThe recovery has continued with overall Quarter 4 cross-border levels now higher than those in 2019.\nIn aggregate, these targeted flows represent $115 trillion in opportunity.\nAnd I'm happy to note that the consumer credit portfolio of Merix Bank, over 3 million customers will transition to Mastercard beginning in the second quarter.\nOver in the Netherlands, we've renewed our partnership with Rabobank, which includes the migration of 8 million Maestro cards to debit Mastercard.\nThe U.S. launch is on schedule for Quarter 1.\nWe now have 100 deployments of Tap on Phone in over 50 markets with leading partners globally.\nThe group services revenue at 25% in 2021 on a currency-neutral basis.\nTheir customer set includes over 400 global brands ranging from financial services companies like Synchrony to retailers like Lens End.\nOn the open banking front, we have closed the acquisition of Aiia in November, which brings strong API connectivity to over 2,700 banks across Europe.\nAnd combined with Finicity's North American connection, which covered more than 95% of deposit accounts in the U.S. market, Mastercard has an unparalleled footprint in the key open banking regions, upon which we are building solutions to solve a wide range of these cases.\nSo turning to Page 3, which shows our financial performance for the quarter on a currency-neutral basis, excluding special items and the impact of gains and losses on our equity investments.\nNet revenue was up 28%, reflecting the continued execution of our strategy and the ongoing recovery in spending.\nAcquisitions contributed 3 ppt to this growth.\nOperating expenses increased 19%, including a 7 ppt increase from acquisitions.\nOperating income was up 37%, which includes a 1 ppt decrease related to acquisitions.\nNet income was up 44%, which includes no impact from acquisitions as the impact of acquisitions on operating income was offset by a onetime acquisition-related tax benefit.\nEPS was up 46% year over year to $2.35, which includes a $0.04 contribution from share repurchases.\nDuring the quarter, we repurchased $1.3 billion worth of stock and an additional $528 million through January 24, 2022.\nSo let's turn to Page 4, where you can see the operational metrics for the fourth quarter.\nWorldwide gross dollar volume, or GDV, increased by 23% year over year on a local-currency basis.\nU.S. GDV increased by 23% with debit growth of 15% and credit growth of 34%.\nOutside of the U.S., volume increased 23%, with debit growth of 25% and credit growth of 20%.\nTo put this in perspective, as a percentage of 2019 levels, GDV is at 125%, up 4 points quarter over quarter with credit at 116%, up 5 points sequentially and debit at 134%, up 3 points sequentially.\nCross-border volume was up 53% globally for the quarter, with intra-Europe cross-border volumes up 45% and other cross-border volumes up 63%, reflecting continued improvement in travel-related cross-border as several borders opened during the fourth quarter.\nIn the fourth quarter, cross-border volume was 109% of 2019 levels, with intra-Europe at 122% and other cross-border volume at 98% of 2019 levels.\nTurning to Page 5.\nSwitched transactions grew 27% year over year in Q4 and were at 132% of 2019 levels.\nIn addition, card growth was 9%.\nGlobally, there are 3 billion Mastercard and Maestro-branded cards issued.\nThe increase in net revenue of 28% was primarily driven by domestic and cross-border transaction and volume growth, as well as strong growth in services, partially offset by higher rebates and incentives.\nAs previously mentioned, acquisitions contributed approximately 3 ppt to net revenue growth.\nDomestic assessments were up 24%, while worldwide GDV grew 23%.\nCross-border volume fees increased 61% while cross-border volumes increased 53%.\nTransaction processing fees were up 28%, generally in line with switched transaction growth of 27%.\nOther revenues were up 30%, including a 9 ppt contribution from acquisitions.\nFinally, rebates and incentives were up 38%, in line with our expectations, reflecting the strong growth in volumes and transactions and new internode deal activity.\nMoving on to Page 7.\nYou can see that on a currency-neutral basis, total operating expenses increased 19%, including a 7 ppt impact from acquisitions.\nExcluding acquisitions, operating expenses grew 12%, primarily due to increased spending on advertising and marketing, higher personnel costs to support the continued investment in our strategic initiatives and increased data processing costs.\nTurning now to Page 8.\nThrough the first three weeks of January, we are now at 149% of 2019 levels, up 13 points versus Q4.\nOverall, cross-border volume through the first three weeks of January is now at 116% of 2019 levels, up 7 points versus Q4.\nTurning to Page 9.\nTurning to our expectations for the full year 2022.\nAcquisitions are forecast to add about 4 to 5 ppt to this growth, while foreign exchange is expected to be a tailwind of approximately 1 ppt for the year.\nAcquisitions are forecast to add about 2 ppt to this growth, while foreign exchange is expected to be a headwind of 2 to 3 ppt for the quarter.\nAcquisitions are forecast to add about 6 ppt to this growth, while foreign exchange is expected to be a tailwind of approximately 1 ppt for the quarter.\nOn the other income and expense line, we are at an expense run rate of approximately $115 million per quarter given the prevailing interest rates and debt levels.\nAnd finally, we expect a tax rate of approximately 17% to 18% for the year based on the current geographic mix of our business.\nThis assumes an annual target market volume growth rate of 10% to 11%, cross-border travel returning to 2019 levels by the end of 2022 and doing our services revenues at a 20%-plus CAGR.\nFrom an operating margin perspective, we will continue to operate with the philosophy of delivering a minimum annual operating margin of 50%.", "summaries": "Quarter 4 net revenues were up 28% and earnings per share up 46% versus a year ago on a non-GAAP currency-neutral basis.\nThe recovery has continued with overall Quarter 4 cross-border levels now higher than those in 2019.\nEPS was up 46% year over year to $2.35, which includes a $0.04 contribution from share repurchases.\nCross-border volume was up 53% globally for the quarter, with intra-Europe cross-border volumes up 45% and other cross-border volumes up 63%, reflecting continued improvement in travel-related cross-border as several borders opened during the fourth quarter.\nSwitched transactions grew 27% year over year in Q4 and were at 132% of 2019 levels.\nCross-border volume fees increased 61% while cross-border volumes increased 53%.\nTransaction processing fees were up 28%, generally in line with switched transaction growth of 27%.\nTurning to our expectations for the full year 2022.", "labels": "1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Starting with alignment of our cost structure with the demand environment, we are rightsizing our workforce through furloughs and other reductions and implemented a nonbillable hiring and wage freeze, and we restricted all travel.\nFrom a liquidity perspective, we drew down $150 million on our revolver to strengthen our balance sheet in the event that crisis worsens.\nWe have reset our net CapEx spend plans for 2020, and we've lowered our expected spend by more than $50 million to preserve capital and support our free cash flow for the year.\nRevenues rose 10% from a year ago as both operating segments recorded solid growth.\nAt the same time, our adjusted EBITDA increased to a record $122.6 million, driven by our mix of high-value waste streams and high utilization, augmented by projects and emergency response work.\nOur adjusted EBITDA margin increased 130 basis points to 14.3%.\nEnvironmental Services revenue grew 11% based by contributions from our facilities network and Field Services group and aided by warmer weather nearly all quarter.\nAdjusted EBITDA growth of 22% was driven by business mix, disposal volumes, and emergency response revenue.\nEmergency response work totaled $21 million, representing COVID-19 de-con work and a cleanup of a chemical plant fire.\nOur disposal facilities saw impressive volumes this quarter as incinerator utilization increased to 86% and landfill tonnage grew 39%.\nOur average price per pound for incineration in Q1 was up 11%, reflecting the record level of high-margin direct burn streams that we gathered.\nSafety-Kleen revenue was up 8%, primarily by growth in the SK Oil business.\nWhile parts washer services were flat with the prior year, waste ore collection was up slightly to 55 million gallons, blended products accounted for 25% of volume in the quarter, and our direct volume was 7%.\nBut the oil shock sparked by the global outbreak of the coronavirus, IMO 2020 has largely been sidelined, and base oil has fallen by $1 a gallon.\nAs I mentioned earlier, we are reducing our planned net CapEx by more than $50 million.\nSince we began executing our divestiture program several years ago, we've sold seven businesses for approximately $120 million in proceeds.\nIn addition, we'll look to repay the $150 million on the revolver as soon as this crisis shows signs of nearing an end.\nRevenue grew nearly $78 million, while adjusted EBITDA grew by nearly $21 million.\nOur gross margin increased by 160 basis points from a year ago.\nSG&A expenses were up $14.5 million in the quarter due to the higher revenue, investments in our employees, and some onetime expenses from last year -- onetime items from last year.\nDepreciation and amortization in Q1 was down slightly to $47.5 million.\nFor 2020, we expect depreciation and amortization in the range of $285 million to $295 million, which is a little lower than last year.\nIncome from operations increased 92% to $45.5 million, a first-quarter record, reflecting the combination of our revenue growth and improved gross profit.\nOn a GAAP basis, earnings per share was $0.21 in Q1 versus $0.02 a year ago.\nOur adjusted earnings per share was $0.28.\nAs Alan mentioned, we drew $150 million on our revolver during the first quarter which increased our cash and short-term marketable securities to $494.3 million at quarter end.\nCurrent and long-term debt obligations at quarter end rose to $1.7 billion, reflecting the drawdown on our revolver.\nOur weighted average cost of debt is now 4.3% with a healthy mix of fixed and variable debt.\nLeverage on a net debt basis was 2.2x for the trailing 12 months ended March 31.\nCash from operations in Q1 was up slightly at -- to $33.7 million.\nCapEx, net of disposals and the purchase of our headquarters, was $59.9 million, up from a year ago, resulting in adjusted free cash flow in the quarter of a negative $26.2 million, which is consistent with prior year and our expectations.\nFor the year, we are now targeting CapEx, net of disposals and purchase of our headquarters in a range of $140 million to $160 million.\nDuring the quarter, we repurchased approximately 300,000 shares of our stock at an average price of $57.41 a share for a total of $17.3 million.\nWe're hopeful we'll be able to reinstate guidance with our Q2 earnings announcement, provided markets have stabilized.", "summaries": "Starting with alignment of our cost structure with the demand environment, we are rightsizing our workforce through furloughs and other reductions and implemented a nonbillable hiring and wage freeze, and we restricted all travel.\nFrom a liquidity perspective, we drew down $150 million on our revolver to strengthen our balance sheet in the event that crisis worsens.\nWe have reset our net CapEx spend plans for 2020, and we've lowered our expected spend by more than $50 million to preserve capital and support our free cash flow for the year.\nAs I mentioned earlier, we are reducing our planned net CapEx by more than $50 million.\nIn addition, we'll look to repay the $150 million on the revolver as soon as this crisis shows signs of nearing an end.\nOn a GAAP basis, earnings per share was $0.21 in Q1 versus $0.02 a year ago.\nOur adjusted earnings per share was $0.28.\nAs Alan mentioned, we drew $150 million on our revolver during the first quarter which increased our cash and short-term marketable securities to $494.3 million at quarter end.\nWe're hopeful we'll be able to reinstate guidance with our Q2 earnings announcement, provided markets have stabilized.", "labels": "1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "This is highlighted by better-than-expected decremental margins in the quarter as well as ongoing strengthening of our balance sheet following strong cash generation performance and a nearly 30% reduction in net debt levels over the prior year.\nAs a result, the year-over-year organic sales decline of 13.4% in the quarter improved notably from the 18.4% decline last quarter.\nIn addition, we saw several industry verticals return back to growth during the quarter with 10 of our top 30 verticals up year-over-year versus only two last quarter.\nOrganic sales through our first 18 business days of October are down by mid-teens percent over the prior year.\nHowever, it's important to note that visibility remains limited ahead of the seasonally slower winter months as customers continue to manage through an uncertain macro and pandemic outlook near term.\nTo provide more detail on our first quarter, consolidated sales decreased 12.7% over the prior year quarter.\nAcquisitions contributed 1.1% growth, partially offset by an unfavorable foreign currency impact of 0.4%.\nNetting these factors, sales decreased 13.4% on an organic basis with a like number of selling days year-over-year.\nSales in our Service Center segment declined 14.9% year-over-year or 14.4% on organic basis.\nHowever, the 14% organic decline year-over-year represents an improvement from the 21% decline during last quarter.\nIn addition, average daily sales rates were up more than 4% sequentially and above the normal seasonal progression.\nWithin our Fluid Power & Flow Control segment, sales decreased 7.4% over the prior year quarter with our August 2019 acquisition of Olympus Controls, contributing 3.8 points of growth on roughly half a quarter of remaining inorganic contribution.\nOn an organic basis, segment sales declined 11.2%, reflecting lower demand across Industrial, Off-Highway Mobile and process-related end markets.\nAs highlighted on Page eight of the deck, gross margin of 28.9% declined approximately 50 basis points year-over-year or 40 basis points when excluding noncash LIFO expense of $1.1 million in the quarter and $0.4 million in the prior year quarter.\nThat said, on a sequential basis, gross margins improved 13 basis points or 17 basis points when excluding LIFO expense, and we're slightly ahead of our expectations.\nSelling, distribution and administrative expenses declined 13.4% year-over-year or approximately 15% when excluding incremental operating costs associated with our Olympus Controls acquisition.\nBoth of these figures exclude $1.5 million of nonroutine cost in the prior year quarter.\nCombined with improving sales trends during the quarter, we reported a 9.5% decremental margin on operating income during our recent fiscal first quarter, which exceeded our expectations and highlights the adaptability and durability of our operating model.\nEBITDA in the quarter was $67.6 million, down 13.6% compared to adjusted EBITDA of $78.2 million in the prior year quarter while EBITDA margin was 9%, down a modest 10 basis points over the prior year despite the double-digit sales decline.\nWe reported net income of $34.8 million or $0.89 per share, down from adjusted net income of $39.9 million or $1.02 per share in the prior year quarter.\nDuring the first quarter, cash generated from operating activities was $81.8 million while free cash flow was $78.2 million or approximately 225% of net income.\nThis was up from $50 million and $45 million, respectively, as compared to the prior year quarter, and represents record first quarter cash generation.\nGiven the strong cash flow performance in the quarter, we ended September with over $271 million of cash on hand with approximately 75% of that unrestricted U.S. held cash.\nOf note, this is after utilizing $62 million of cash during the quarter to pay down debt.\nWe have now paid down over $200 million of debt since early 2018, including over $80 million the past year.\nOur net debt is down nearly 30% over the prior year, and net leverage stood at 2.1 times adjusted EBITDA at quarter end, below the prior year quarter level of 2.3 times and the prior year level of 2.6 times.\nAdditionally, our revolver remained undrawn with approximately $250 million of capacity and an additional $250 million Accordion option.\nThat said, to provide some directional views near term based on month-to-day trends in October and assuming normal sequential patterns in daily sales rates for the balance of the quarter, we would expect fiscal second quarter 2021 sales to decline 13% to 14% organically on a year-over-year basis.\nIf customers reduce underlying production activity, or extend these plant shutdowns, this could drive organic declines that are greater than the 13% to 14% assumption.\nOn the other hand, if we see ongoing improvement in underlying industrial activity and further traction with our internal growth initiatives, organic declines could be better than the 13% to 14% assumption.\nIn addition, we expect our recent acquisition of ACS to contribute approximately $6 million in sales during our fiscal second quarter.\nBased on the 13% to 14% organic sales decline, we believe a low double-digit to low-teen decremental margin is an appropriate benchmark to use for our second quarter.\nWe also note an effective tax rate of 23% to 25% is still an appropriate assumption near term.\nWe remain confident in our cash generation potential over the cycle and reiterate our normalized annual free cash target of at least 100% of net income.\nThis is integrated into our long-term targets of $4.5 billion in sales and 11% EBITDA margins, which are well within our capability and provide the framework for accelerating earnings power and stakeholder returns long term.", "summaries": "However, it's important to note that visibility remains limited ahead of the seasonally slower winter months as customers continue to manage through an uncertain macro and pandemic outlook near term.\nWe reported net income of $34.8 million or $0.89 per share, down from adjusted net income of $39.9 million or $1.02 per share in the prior year quarter.\nThat said, to provide some directional views near term based on month-to-day trends in October and assuming normal sequential patterns in daily sales rates for the balance of the quarter, we would expect fiscal second quarter 2021 sales to decline 13% to 14% organically on a year-over-year basis.\nIf customers reduce underlying production activity, or extend these plant shutdowns, this could drive organic declines that are greater than the 13% to 14% assumption.\nOn the other hand, if we see ongoing improvement in underlying industrial activity and further traction with our internal growth initiatives, organic declines could be better than the 13% to 14% assumption.\nBased on the 13% to 14% organic sales decline, we believe a low double-digit to low-teen decremental margin is an appropriate benchmark to use for our second quarter.", "labels": "0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n1\n0\n0\n0"}
{"doc": "In the third quarter, Capital One earned $3.1 billion or $6.78 per diluted common share.\nIncluded in our results for the quarter was a $45 million legal reserve build.\nNet of this adjusting item, earnings per share in the quarter were $6.86.\nOn a GAAP basis, pre-provision earnings were $3.6 billion, an increase of 7 percent relative to a quarter ago.\nPeriod and loans held for investment grew $11.8 billion or 5 percent as we had strong loan growth across all of our businesses.\nRecall that we moved $4.1 billion of loans to held-for-sale late in the second quarter, so average loans in the third quarter grew more modestly at 3 percent.\nRevenue increased 6 percent in the linked quarter, largely driven by the loan growth I just described, coupled with margin expansion in our card business.\nOperating expenses grew 3 percent in the quarter with total non-interest expense increasing 6 percent.\nWe released $770 million of allowance in the third quarter as the effects of continued actual strong credit performance and a reduction in qualitative factors drove a decline in allowance balance, which was partially offset by loan growth in the quarter.\nTurning to Page 6, I'll now discuss liquidity.\nYou can see our preliminary average liquidity coverage ratio during the third quarter was 143 percent.\nThe LCR remains stable and continues to be well above the 100 percent regulatory requirement.\nOur liquidity reserves from cash, securities, and Federal Home Loan Bank capacity ended the quarter at approximately $124 billion, down $13 billion from the prior quarter as we continue to run off excess liquidity built during the pandemic.\nThe nine percent decline in total liquidity was driven by a modest reduction in the size of our investment portfolio and $8 billion in lower-ending cash balances, which were used to fund loan growth and share repurchases.\nThe decline in cash balances had an impact on our NIM, which I will discuss in more detail on Page 7.\nYou can see that our third-quarter net interest margin was 6.35 percent, 46 basis points higher than Q2 and 67 basis points higher than the year-ago quarter.\nOur common equity Tier 1 capital ratio was 13.8 percent at the end of the third quarter, down 70 basis points from the prior quarter.\nWe repurchased $2.7 billion of common stock in the third quarter and have approximately $2.6 billion remaining of our current board authorization of $7.5 billion.\nHowever, based on our internal modeling, we continue to estimate that our CET1 capital need is around 11 percent.\nAs a result of the full quarter of recent issuances and a partial quarter of the planned redemptions, we expect fourth-quarter preferred dividends to remain elevated at around $74 million.\nLooking ahead to Q1, we expect the run rate for preferred dividends to decline to approximately $57 million per quarter, barring additional activity.\nAs you can see on Slide 11, third-quarter domestic card revenue grew 14 percent year over year.\nPurchase volume for the third quarter was up 28 percent year over year and up 27 percent compared to the third quarter of 2019.\nAnd the rebound in loan growth continued with ending loan balances, up $3.7 billion or about four percent year over year.\nThe domestic card charge-off rate for the quarter was 1.36 percent, a 228-basis-point improvement year over year.\nThe 30-plus delinquency rate at quarter-end was 1.93 percent, a 28-basis-point improvement over the prior year.\nDomestic card revenue margin was up 218 basis points year over year to 18.4 percent.\nTotal company marketing expense was $751 million in the quarter, including marketing in card, auto, and retail banking.\nDriven by auto, third-quarter ending loans increased 12 percent year over year in the consumer banking business.\nAverage loans also grew 12 percent.\nAuto originations were up 29 percent year over year.\nOn a linked quarter basis, auto originations were down 11 percent from the exceptionally high level in the second quarter.\nThird-quarter ending deposits in the consumer bank were up $2.7 billion or one percent year over year.\nConsumer banking revenue increased 14 percent from the prior-year quarter, driven by growth in auto loans.\nThird-quarter provision for credit losses improved by $48 million year over year, driven by an allowance release in our auto business.\nYear over year, the third-quarter charge-off rate improved five basis points to 0.18 percent and the delinquency rate improved 11 basis points to 3.65 percent.\nLooking at sequential-quarter trends, the charge-off rate increased from the unprecedented negative charge-off rate in the second quarter and the 30-plus delinquency rate was up 39 basis points from the second quarter, consistent with historical seasonal patterns.\nEnding deposits grew 18 percent from the third quarter of 2020 as middle market and government customers continued to hold elevated levels of liquidity.\nQuarterly average deposits also increased 18 percent year over year.\nThird-quarter revenue was up 17 percent from the prior-year quarter and 23 percent from the linked quarter.\nRecall that revenue in the second quarter was unusually low due to the impact of moving $1.5 billion in commercial real estate loans to held-for-sale.\nThe criticized performing loan rate was 6.9 percent and the criticized non-performing loan rate was 0.8 percent.", "summaries": "In the third quarter, Capital One earned $3.1 billion or $6.78 per diluted common share.\nNet of this adjusting item, earnings per share in the quarter were $6.86.\nRevenue increased 6 percent in the linked quarter, largely driven by the loan growth I just described, coupled with margin expansion in our card business.\nOperating expenses grew 3 percent in the quarter with total non-interest expense increasing 6 percent.\nYou can see that our third-quarter net interest margin was 6.35 percent, 46 basis points higher than Q2 and 67 basis points higher than the year-ago quarter.\nOur common equity Tier 1 capital ratio was 13.8 percent at the end of the third quarter, down 70 basis points from the prior quarter.", "labels": "1\n0\n1\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We suspended dividend distributions on both our common and preferred securities, preserving approximately $72.5 million, and we deferred all planned capital expenditures for the balance of the year, saving approximately $20 million.\nAdditionally, at the corporate level, we reduced our SG&A run rate by 25% for 2020.\nWhile at our properties, we suspended operations at 21 of our 48 hotels, which led to a reduction in operating expenses, approximating 80% on a go-forward basis.\nThe lion's share of the 27 hotels that were opened in April and May consisted of our limited service drive-to resort offerings that were able to drive rate and occupancy, exceeding our internal forecasts.\nEarly April is when we saw the trough for our open portfolio, bottoming out around 19% occupancy but incrementally growing through the balance of the quarter, ending June at 39% occupancy.\nMost of the 27 hotels that have remained open throughout the pandemic and the seven hotels that have opened since June one are able to run with a marginally sized staff, allowing for lower breakeven levels and the ability to generate gross operating profit with occupancies around 25% to 30% or a 60% to 70% RevPAR decline for EBITDA level breakeven at properties.\nOur Sanctuary Beach resort was the best-performing asset during the second quarter, ending the period at 71% occupancy with a $340 ADR, and success continued in July with RevPAR growth of 12.4% for the month.\nAll of this led to 61% occupancy for our seven open New York City hotels during the second quarter.\nEarly results from July are promising, with ADR only down 25% across the portfolio year-over-year as occupancy showed some signs of growth, especially in our urban markets outside of New York.\nPrior to COVID-19, New York was one of the toughest markets in the U.S. to achieve rate growth despite record visitation year-over-year as the city was seeing new supply increasing approximately 4% each year over the last several years.\nWe have already seen the headlines of big-box hotels in New York closing their doors forever as many as 5,000 rooms among them so far, and we think of this as the tip of the iceberg in terms of hotel closures.\nIndustry researchers have estimated that 20% of New York's total room count, about 25,000 keys, could permanently close.\nThe pandemic is also bringing about a decline in short-term rental demand as seen in recent data showing the top 25 markets experiencing significant year-over-year decline in inventory available.\nFive of the top MSAs, including Boston, New York and Los Angeles, are seeing year-over-year declines from 25% to 40%.\nHersha has been a developer, owner and operator in New York for over 20 years.\nPost 9/11, we increased our development pipeline in Manhattan.\nThis time, we have sufficient exposure to Manhattan, but expect to enjoy a strong recovery in New York in the next 12 to 24 months.\nAfter 9/11 and after the GFC, New York rebounded with the highest growth rates in the country for the early years of the recovery.\nAfter 9/11, there were significant deletions from supply.\nSo after a steep recovery in 2003 and 2004, the market continued to produce double-digit RevPAR for three more years.\nPost 2009, New York rebounded quickly in 2010 and continue to grow in mid-single digits for three to four more years, but new supply made the rest of the cycle a bit more choppy, although values continue to reach new highs.\nMore permanent hotel closures, no construction financing, zoning restrictions for hotel development,etc.\nAs a quick reminder, we announced accretive binding sales agreements on four assets in our portfolio: the Duane Street Hotel in New York City; the Blue Moon hotel on Miami Beach; and the exit of the 50% ownership in two South Boston Hotel, two hotels: The Courtyard South Boston, the Holiday and Express South Boston.\nAlong with the extensions, we have provided a reduction in purchase price for the buyers at each of these assets, resulting in total expected net proceeds of $70 million.\nIn our 33 currently operating hotels, we've not only rightsized our on-site staff, but have also employed various asset management initiatives to lower our cost per occupied room, which resulted in a declining monthly cash burn rate through the balance of the second quarter.\nOur operational strategy allows us to run our hotels with very lean labor models until demand achieves levels warranting additional staffing, typically between 30% and 40% occupancy.\nAt the end of the first quarter, we accrued less than $1 million for these costs, and we did not record any further severance costs during the second quarter and would not anticipate any further costs for the remainder of the year.\nWe've also zero-based budgeted our hotels and rightsized labor models with expectations to save 300 to 500 basis points when lodging returns to more stabilized levels.\nAll of these measures allowed us to reduce our operating expenses by 77% during the quarter.\nDuring the second quarter for the 21 comparable hotels that remained open throughout the period, we were able to effectively breakeven on an EBITDA basis even with severely depressed operational levels as these 21 hotels had a RevPAR decline of 78% and approximately 34% occupancy.\nBased on this history, we are comfortable that on a property level basis, our entire portfolio breaks even with a 65% to 70% RevPAR decline with occupancies approaching 40% and a 25% to 30% ADR decrease.\nAt the corporate level, our RevPAR breakeven occurs at 40% to 50% decline, factoring in 50% to 55% occupancies at a 15% to 20% ADR discount.\nWith our current operating model, we were able to generate gross operating profit at 80% of our open hotels during June and would anticipate that nearly all of our open hotels can generate positive GOP during the third quarter.\nAs I mentioned, with the execution of the aforementioned expense savings initiative, we're able to breakeven at below 40% at our open hotel, and we're forecasting that our next 25% to 35% occupancy gains should flow through at approximately 80% to the GOP line.\nOn our prior earnings call, we outlined our cash burn rate forecast, which was originally projected to be $11 million per month, including all hotel operating expenses, corporate SG&A and debt service expenses.\nDuring April, which we would deem to be the trough of the industry with our comparable portfolio ending the month at 14% occupancy, our corporate cash burn rate actualized at $10.5 million.\nOur burn rate sequentially decreased through the balance of the quarter, reducing to $8.6 million for the month of May and closing the quarter at $7.8 million for June.\nOur cash burn rate for the second quarter totaled $26.9 million, 18% below our downside scenario and 13% below our internal forecast at the beginning of the period.\nDuring the second quarter, we spent $5.4 million on capital projects, bringing our year-to-date spend to $16.4 million.\nWe anticipate a significantly reduced capex load for the back half of the year with estimated spend for 2020 at approximately $20 million, half of what we had planned to spend at the beginning of the year.\nSince 2017, we've allocated close to $200 million for product upgrades and ROI-generating capital projects across approximately 50% of our total room count.\nAs of June 30, we have drawn $95 million on our $250 million senior credit facility and ended the second quarter with $23.2 million in cash on hand.\nDuring the second quarter, we also took advantage of the low rate environment and entered into a new interest rate swap on the debt at the Courtyard L.A. West side at 3.425%.", "summaries": "More permanent hotel closures, no construction financing, zoning restrictions for hotel development,etc.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "During the year, we sold two hotels, the Renaissance Baltimore and the Renaissance LAX for combined gross proceeds of nearly $172 million.\nThese two transactions bring the number of hotels sold in the past three years to a total of nine hotels for gross proceeds of approximately $575 million.\nWe did not have to sell this hotel, nor did we need the incremental liquidity, and because of this, we were able to hold the line and extract premium pricing equating to a 6.8% cap rate on 2019 actual earnings.\nIt is worthwhile to note that the combined 2019 RevPAR and EBITDA per key of these three hotels, in aggregate, was approximately 19% lower and 54% lower respectively than the remainder of our portfolio.\nDuring the year, we invested $51 million into our hotel portfolio, with the largest project being the complete repositioning renovation of the Bidwell Portland, which turned out just beautifully.\nAt our Renaissance Orlando, we completed the first phase of a refresh of the hotel large atrium lobby, including replacing nearly 50,000 square feet of flooring, which would have otherwise resulted in millions of dollars of displacement.\nAt our Wailea Beach Resort, we added 32 beautiful lanai decks, which has significantly increased the appeal and the revenue potential of these oceanfront rooms.\nAlso in Wailea, we remain on track to complete our solar project in this quarter, which will eliminate approximately 650,000 kilowatts annually of energy, and reduce not only our carbon footprint, but also our energy bill by roughly $160,000 per year.\nAnd finally at our DC Renaissance, we have completed the refresh of our product to share and the meeting space escalator modernization, both of which have result -- would have resulted in meaningful group displacement during normal operating times.\nOf our 17 hotels, 15 were in operation at the end of the year, which represents 92% of our rooms in the portfolio, and nearly 98% of our comparable 2019 hotel EBITDA.\nFor the full year, comparable portfolio revenues were $233 million, and RevPAR was just over $46, which represent declines of 76% and 77% respectively, compared to 2019.\nTo put this into perspective, roughly 75% of our comparable revenues in the year were generated in the first quarter prior to the pandemic.\nFull year comparable property-level EBITDA was a loss of $64 million, which represents a decline of 120% relative to 2019, despite a previously thought unattainable 56% decline in same-store operating expenses.\nComparable portfolio revenues were $32 million and RevPAR was $25.36, which represents a decline of 86% and 87% respectively, compared to the fourth quarter of last year.\nNevertheless, our portfolio RevPAR of just over $25 increased from the nearly $18 witnessed in the third quarter and the $3 in the second quarter, as we opened up additional hotels, and as occupancy at several hotels increased, particularly our higher-rated properties.\nOur Oceans Edge Resort in Key West ran at 53% occupancy in the fourth quarter, and a slightly higher rate than the fourth quarter of 2019 driven completely by transient leisure business.\nOver the New Year's holiday, Oceans Edge ran nearly 90% occupancy, with an average rate that was competitive that of the prior year.\nAs expected, demand in Wailea has been building slowly with occupancy levels in the range of 19% to 23% per month.\nOur November ADR at the property was 13% higher than the previous year, and our ADR from Christmas to New Year was over $725.\nGroup business increased sequentially in the fourth quarter compared to the third quarter from 21,000 room nights to 32,000 room nights or about 24% of the total room nights achieved in the quarter.\nDuring the fourth quarter, property-level expenses declined by 70%, which includes the benefits -- benefit of approximately $8.7 million of operational level credits and adjustments, including several real estate tax adjustments and employee tax credits.\nDespite such a material decline in cost, the challenging demand environment resulted in property-level adjusted EBITDA loss of $18 million in the fourth quarter.\nNow, a loss of $18 million is nothing to get excited about, but it does show continued improvement from the third quarter, which had a loss of $32 million for the comparable portfolio.\nLooking at the second quarter, our group cancellations have increased over the last 90 days, but at a much slower pace than what we saw in recent quarters.\nIn January, our portfolio group lead volume was up 130% over December, and the total number of leads reached a level not seen since last March.\nFrom a production standpoint, Hilton San Diego Bayfront had its highest January group production in the last six years, with over 17,000 room nights booked, and Boston Park Plaza booked several large pieces of business for the third and fourth quarter.\nSince the beginning of the fourth quarter, we booked 140,000 new group room nights for all future months, excluding the rebooking of previously cancelled groups.\nIn addition to new bookings, to date we have rebooked 266,000 group rooms -- group room nights that previously cancelled or approximately 25% of all cancelled group room nights since the start of the pandemic.\nWe would expect that number of rebook rooms to increase as another 3% of cancelled rooms are at various stages of reworking their contracts, and an incremental 24% of cancelled room nights have expressed an interest in rebooking and are working with our sales team to potentially secure new dates.\nTaken together, the new group -- groups booked, since the beginning of the fourth quarter and all rebook groups, and those in the contracting process, represent approximately $100 million of group room revenue, and approximately $125 million of total group revenue.\nWhile our 2021 group room night pace is down materially compared to pre-pandemic levels, we currently have approximately 290,000 group rooms on the books for 2021, representing $62 million of group room revenue, a significant increase from the depressed 2020 levels.\nFor the second half of the year Wailea has 13% more transient rooms on the books, compared to the same time in 2019, and the outlook has been improving weekly.\nAt that time, we established that we would incur property-level cash losses of approximately $10 million to $13 million a month, and with -- and when combined with our corporate expenses, debt service and preferred dividends represented a total monthly cash burn of $16 million to $20 million before capex and extraordinary items.\nOur actual cash, or excuse me, our actual hotel-level cash burn for the fourth quarter was approximately $9 million per month.\nAnd when combined with our corporate cash requirements, equated to a monthly burn rate of $16 million on average, which was at the low end of our estimated range.\nWe currently expect that our first quarter monthly corporate cash burn rate before capital investment will range from approximately $14 million to $17 million per month or 14% decline from the previously provided range.\nWe ended the year with $368 million of unrestricted cash, and full availability on our $500 million credit facility.\nRepayment of the DC loan eliminates roughly $10 million of annual debt service, and will leave us with only three mortgages.\nFrom a capital perspective, we plan to invest approximately $70 million to $80 million into our portfolio in 2021.\nAs part of the conversion, nearly all areas of the hotel will be reinvented, including a full renovation of all 807 guest rooms and bathrooms, conversion of a majority of bathtubs to showers, the addition of nine new keys, upgrading the fitness center, the redesign of all public spaces, meeting areas and food and beverage outlets, as well as enhancements to the exterior facade.\nWe anticipate that the total investment for the conversion to be approximately $70 million, with nearly $30 million of that spend occurring in the current year.\nThis investment is roughly $30 million over the cost of a cyclical renovation, but one that we believe will generate a low- to mid-teens return on incremental investment given the increased rate potential.\nSimilar to our successful Avenue 34 meeting space, we anticipate this will also be highly sought after for social catering events, and will provide additional breakout space to attract large groups.\nAs of the end of the quarter, we had approximately $416 million of total cash and cash equivalents, including $48 million of restricted cash, and then undrawn $500 million revolving credit facility.\nDuring the quarter, we utilized proceeds from the sale of the Renaissance LAX, along with cash on hand, to repay the $108 million mortgage secured by the Renaissance Washington DC.\nThe repayment of this loan removes our highest cost piece of secured debt, eliminates nearly $10 million of debt service per year, and leaves us with only three secured mortgages remaining in the portfolio.\nWorking with our operators, we have reduced operating expenses by approximately 60% to 70% since the start of the pandemic.\nOur current projected cash burn rate is now $14 million to $17 million per month before capital expenditures, which has reduced from our previous range of $16 million to $20 million per month, and down from the actual fourth quarter burn of approximately $16 million.\nFourth quarter adjusted EBITDA was a loss of $19 million, and fourth quarter adjusted FFO per diluted share was a loss of $0.16.\nWhile we were anticipating the fourth quarter results, which showed sequential improvement, the actual results also benefited from approximately $8.7 million of operational level credits and adjustments, some of which may not repeat in the first quarter of 2021.\nAs we've noted, we expect our near-term monthly corporate cash burn to be between $14 million and $17 million before capex.", "summaries": "And finally at our DC Renaissance, we have completed the refresh of our product to share and the meeting space escalator modernization, both of which have result -- would have resulted in meaningful group displacement during normal operating times.\nComparable portfolio revenues were $32 million and RevPAR was $25.36, which represents a decline of 86% and 87% respectively, compared to the fourth quarter of last year.\nFrom a capital perspective, we plan to invest approximately $70 million to $80 million into our portfolio in 2021.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "All of our 31 plants around the world are operating and we are continuing to meet our customers' needs.\nOverall, our sales were sequentially up 5% with all regions or segments showing revenue growth, which was primarily being driven by higher volumes as our businesses continue to come back from the negative impact that COVID-19 had on our end markets.\nThe sequential increase was strongest for us in EMEA as we saw an increase in sales of 13% compared to the third quarter.\nOverall, our sales were down only 1% and our volumes were relatively flat but there was a difference when looking at this by region or segment.\nThe only area that showed an increase in volume sold was Asia Pacific, which had an increase of 8% versus prior year, primarily being driven by higher sales in China and India.\nAmericas was down 2% on volumes, primarily due to our end market still being impacted by COVID.\nAnd our global specialty business volumes were down 9%, primarily driven by lower aerospace maskant sales.\nI also want to point out that our ability to gain new pieces of business and take market share contributed significantly to our performance as our analysis shows that we had total organic sales growth due to net share gains of approximately 4% in the fourth quarter of '20 versus the fourth quarter of '19.\nSo while we were overall relatively flat in our volumes, the 4% net share gains made a big difference, as did our Asia Pacific growth, helping to offset the negative COVID impact on our end markets.\nAs we said previously, we estimate we'll take approximately two more years for our end markets to fully return and some markets like aerospace, which makes up about 3% of our sales, may take up more time than that.\nThe first was a private company called Coral Chemical based in the US that we purchased in mid-December for $53 million net of cash acquired.\nCoral had approximately $37 million in net sales and approximately $5.5 million of adjusted EBITDA in 2020.\nFor this acquisition, we also expect to achieve annualized synergies of approximately $3 million over the next two years.\nAlso in February, we bought assets related to tin-plating solutions, primarily for the steel end markets for $25 million, which will add full-year net sales of approximately $8 million and approximately $4 million of full-year adjusted EBITDA going forward.\nSo we are pleased with the strategic additions to our product portfolio, which we estimate will add about $11 million of EBITDA in 2021, which equates to an approximate 7 times EBITDA multiple purchase price for the combination of these two acquisitions.\nSynergy achievement also was a factor on our results as we achieved $18 million in this quarter compared to $5 million in the fourth quarter of last year.\nIn addition, our strong operating cash flow of $66 million in the quarter allowed us to reduce our net debt by another $24 million for the full year.\nAnd for the full year, we reduced debt by about 12%, in addition to making the Coral acquisition.\nAnd reflecting upon the full year, the past 12 months have been challenging due to COVID-19, but I'm very pleased with our overall performance.\nAnd we were able to realize $58 million of cost synergies, which exceeded our previous estimate of $35 million.\nWe also made these two additional bolt-on acquisitions, which will add approximately $11 million to our adjusted EBITDA in 2021.\nAnd even with those acquisitions, we were able to reduce our debt by 12% or $94 million.\nDespite these short-term headwinds, we feel positive about 2021and continue to expect a step change in our profitability with over a 20% increase in our adjusted EBITDA from 2020 as we complete our integration cost synergies, continue to take further share in the marketplace, benefit from a projected gradual rebound of demand in our end markets and see the positive impact of our recent acquisitions.\nAnd I look forward to continuing to be involved in the company's bright future as Chairman of the Board following my retirement.\nQ4 net sales were up 5% sequentially as all segments benefited from a gradual increase in volumes and net sales were down only 1% compared to Q4 2019.\nFor the full year, reported net sales increased 25% in 2020 due to the inclusion of Houghton and Norman Hay.\nBut on a pro forma basis, sales were down 9%, primarily on lower volumes due to the global downturn in economic production as a result of the COVID-19 pandemic.\nGross margin of 36.8% in Q4 is up from 34.8% in Q4 of 2019, which was deflated somewhat due to inventory adjustments for purchase accounting for Norman Hay.\nExcluding these adjustments, we estimate Q4 of 2019's gross margin would have been about 35.3%.\nOur sequential gross margin was down somewhat from Q3, reflecting a one-time benefit to gross margin in Q3 of approximately 0.5% and current quarter pressure from rising raw material costs and product mix.\nOn a full-year basis, gross margin was 36.2% versus 2019's 34.6%.\nExcluding similar cost adjustments of Q4, we estimate our gross margins in 2020 and 2019 would have been 36.3% and 35.7% respectively.\nWe expect to head toward the 38% gross margin area later this year as we further realize our combination synergies and manage prices to offset rising raw material costs.\nOn both the GAAP and non-GAAP basis, our Q4 operating income improved significantly and our non-GAAP operating margin of 11.3% is up 1.7% versus Q4 last year, reflecting a sequential recovery in sales this year and our combination synergies and the cost-saving actions we took to mitigate the impacts of COVID-19.\nOur reported effective tax rate was an expense of 4.9% in Q4 of '20 versus a benefit of 18.2% in Q4 of '19.\nExcluding various one-time items, our Q4 effective tax rates would have been approximately 30% and 24% respectively.\nFor full-year 2020 and 2019, we estimate that our effective tax rates, excluding non-core and one-time items, would have been approximately 25% and 22% respectively, in line with our guidance for this year.\nFor 2021, we expect our full-year effective tax rate will be in the range of 24% to 26%.\nOur non-GAAP earnings per share of $1.63 for Q4 is up 22% from $1.34 in Q4 of '19, due primarily to the improved operating income I discussed earlier.\nOur full year non-GAAP earnings per share of $4.78 was down from $5.83 last year but ahead of consensus of $4.67.\nOur Q4 adjusted EBITDA of $65 million is up $4 million from Q4 last year and up $1 million sequentially.\nAnd our full-year adjusted EBITDA of $222 million is ahead of consensus.\nOur Q4 adjusted EBITDA margin of 17% is up 1.5% versus 15.5% last year and on a full year basis, our adjusted EBITDA margin increased to 15.7% from our 2019 pro forma margin of 15%.\nOperating cash flow for the full year was a record $178.4 million, allowing us to reduce net debt by 12% to $717.3 million, paid $53 million for the Coral acquisition, net of cash acquired and pay approximately $7 million in dividends.\nAs a result of our prudent capital allocation, our primary leverage covenant of net debt to trailing 12 months adjusted EBITDA continues to improve and was 3.2 times at year end 2020 versus 3.5 times last year.\nWe expect to be at our target level of 2.5 times net debt to adjusted EBITDA by the end of 2021.\nIn addition, our cost of debt continues to benefit from the current interest rate environment with our borrowing cost under 2%.\nIn 2021, we expect to see a greater than 20% increase in adjusted EBITDA and further expansion of our margins as we realize the full synergy benefits toward the end of the year.", "summaries": "And I look forward to continuing to be involved in the company's bright future as Chairman of the Board following my retirement.\nExcluding similar cost adjustments of Q4, we estimate our gross margins in 2020 and 2019 would have been 36.3% and 35.7% respectively.\nOur non-GAAP earnings per share of $1.63 for Q4 is up 22% from $1.34 in Q4 of '19, due primarily to the improved operating income I discussed earlier.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "FactSet is off to a strong start to fiscal 2022, and I'm pleased to share that this quarter, had the highest Q1 incremental ASV on record.\nBuilding on the momentum from Q4, we grew organic ASV plus professional services by 9% year-over-year in Q1.\nOverall, we are pleased that our performance resulted in a 13% increase in adjusted earnings per share from the prior year period.\nOur adjusted operating margin of 33.6% exceeds our guidance.\nEarlier this month, we launched over 90 datasets and a number of APIs on Amazon Data Exchange, the first major data and analytics provider to do so.\nThe Americas was the biggest contributor, as organic ASV growth accelerated to 9% supported by broad-based strength across our businesses.\nIn EMEA, growth accelerated to 7% consistently improving over the past three quarters.\nAsia Pacific had another robust quarter with growth accelerating to 14% driven primarily by CTS.\nFinally, an important milestone in our Company's history occurred earlier this week when FactSet became part of the S&P 500 Index.\nOur addition was in fact predicted by our S&P 500 constituents prediction signal on October 1st.\nFirst on ASV, we grew organic ASV plus professional services by 9%.\nGAAP revenue increased by 9% to $425 million, while organic revenue, which excludes any impact from foreign exchange and acquisitions increased 9% to $423 million, growth was driven primarily by analytics and trading and research and advisory.\nFor our geographic segments, on an organic basis, Americas revenue grew 9%, EMEA also came in at 9% and Asia Pac revenues grew at 14%.\nGAAP operating expenses grew 13% in the first quarter to $302 million, impacted by anticipated changes incurred during the period.\nWe recorded a restructuring charge of $9 million to drive a more efficient and empowered organizational structure.\nIn addition, we recognized $4 million of expense related to vacating certain office space in New York City.\nCompared to the previous year, our GAAP operating margin decreased by 230 basis points to 29% and our adjusted operating margin decreased by 70 basis points to 34%.\nAs a percentage of revenue, our cost of sales was 32 basis points higher than last year on a GAAP basis and 72 basis points lower on an adjusted basis.\nWhen expressed on a percentage basis of revenue, SG&A was 198 basis points higher year-over-year on a GAAP basis and 145 basis points higher on an adjusted basis.\nTurning now to taxes, our tax rate for the quarter was 10% compared to last year's rate of 16%.\nGAAP earnings per share increased 7% to $2.79 this quarter versus $2.62 in the prior year.\nAdjusted diluted earnings per share grew 13% to $3.25 driven higher -- by higher revenues and a lower tax rate.\nFree cash flow, which we defined as cash generated from operations, less capital spending was $64 million for the quarter, a decrease of 9% over the same period last year.\nOur ASV retention remained at -- greater than 95%.\nWe grew the total number of clients by 14% compared to the prior year, which continues to be driven by the addition of more wealth and corporate clients.\nOur client retention improved to 92% year-over-year, which speaks to the success of our products and investments and the efforts of our sales teams.\nFor the first quarter, we repurchased 46,200 shares of our common stock for a total of $19 million at an average per share price of $403.", "summaries": "FactSet is off to a strong start to fiscal 2022, and I'm pleased to share that this quarter, had the highest Q1 incremental ASV on record.\nGAAP earnings per share increased 7% to $2.79 this quarter versus $2.62 in the prior year.\nAdjusted diluted earnings per share grew 13% to $3.25 driven higher -- by higher revenues and a lower tax rate.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0"}
{"doc": "The 2021/2022 North American ski season got off to a slow start.\nAt some resorts, more than 10% of our employees were unable to work due to COVID-19 at one time.\nTo address these challenges, the company increased hourly compensation during the holidays and for the remainder of the ski season at a cost of $20 million in fiscal 2022.\nExcluding the Seven Springs Resorts, total visitation for the quarter increased 2% compared to the second fiscal quarter of 2020.\nResort net revenue for the second fiscal quarter of 2022 decreased 2% relative to the comparable period in fiscal year 2020, primarily as a result of the headwinds in our ancillary lines of business and approximately $33 million of past revenue that would have been recognized in the second fiscal quarter of 2022, but was deferred to the third quarter as a result of delayed openings for a number of our resorts.\nRelative to the second fiscal quarter of 2020, resort reported EBITDA increased 5% despite the challenging early season conditions and COVID-19-related dynamics.\nResort reported EBITDA margin for the second quarter was 43.9%, an increase from 40.9% in the second quarter of fiscal 2020.\nNet income attributable to Vail Resorts was $223.4 million or $5.47 per diluted share for the second quarter of fiscal 2022, compared to net income attributable to Vail Resorts of $147.8 million or $3.62 per diluted share in the prior year.\nResort reported EBITDA was $397.9 million in the second fiscal quarter, which compares to resort reported EBITDA of $276.1 million in the same period in the prior year.\nResort reported EBITDA for the second quarter of fiscal year 2020 was $378.3 million.\nGiven the significant impacts of COVID-19 in the prior-year period, including significant capacity restrictions that limited skier visits and ancillary revenue, we're also providing metrics relative to the comparable fiscal year 2020 season-to-date period, which was prior to our announcement to close our resorts on March 15, 2020, for the remainder of the 2019/2020 season.\nSeason-to-date total skier visits were up 2.8% compared to the fiscal year 2020 season-to-date period.\nSeason-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was up 10.3% compared to the fiscal year 2020 season-to-date period.\nCompared to the fiscal year 2020 season-to-date period, season-to-date ski school revenue was down 8.9%, dining revenue was down 27% and retail rental for North American resort and ski area store locations was down 2.8%.\nDespite significant growth of our pass program this year, visitation for the season-to-date period was modestly up 2.8% compared to fiscal 2020, given the company's strategy to shift lift ticket guests into an advance commitment pass product.\nIt is important to highlight that our season pass unit growth of 47% for fiscal year 2022 created significant revenue stability in a period with challenging early season conditions and COVID-19 impacts.\nIn fact, the growth we saw in visitation in the period ending March 6, 2022, compared to fiscal 2020 occurred on weekdays and non-holiday periods, which were up approximately 9% in visits compared to weekend and holiday periods, which were approximately flat in visits.\nFor the season-to-date period ending March 6, 2022, 69% of our visits came from season pass holders, compared to 56% of visits for the same period in fiscal year 2020.\ndestination and international visitation trends at Whistler Blackcomb, the $20 million investment in frontline staff bonuses, increased wages for our summer operations, and the inclusion of an estimated $6 million in acquisition and integration-related expenses specific to the Seven Springs resorts.\nWe now expect net income attributable to Vail Resorts for fiscal 2022 to be between $304 million and $350 million, and resort reported EBITDA to be between $813 million and $837 million.\nWe estimate resort EBITDA margin for fiscal 2022 to be approximately 32.9% using the midpoint of the guidance range.\nThe guidance assumes an exchange rate of $0.79 between the Canadian dollar and U.S. dollar related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.72 between the Australian dollar and U.S. dollar related to the operations of Perisher, Falls Creek, and Hotham in Australia.\nOur total cash and revolver availability as of January 31, 2022, was approximately $2 billion, with $1.4 billion of cash on hand, $417 million of U.S. revolver availability under the Vail Holdings credit agreement, and $214 million of revolver availability under the Whistler Credit Agreement.\nAs of January 31, 2022, our net debt was 2.1 times trailing 12 months total reported EBITDA.\nWe are pleased to announce that our board of directors has declared a quarterly cash dividend on Vail Resorts common stock of $1.91 per share.\nAs we turn our attention to the 2022/2023 ski season and beyond, the company will be making its largest ever investment in both its employees and its resorts to ensure we continue to deliver our company mission of an experience of a lifetime.\nWe are pleased to announce a significant investment in our employees for the 2022/2023 North American ski season with an increase in the minimum hourly wage offered across all 37 of our North American resorts to USD 20 per hour for all U.S. employees and CAD 20 per hour for all Canadian employees, as well as an increase in wage rates for hourly employees, as we maintain all leadership and career stage differentials.\nRoles that have specific experiences or certification as prerequisites, such as entry-level patrol, commercial drivers, and maintenance technicians, will start at $21 per hour.\nTipped employees will be guaranteed a minimum of $20 per hour.\nThe increase in wages and the return to normal staffing levels will represent an approximately $175 million increase in expected labor expense in fiscal 2023 compared to the fiscal 2022 expected labor expense, including inflationary adjustments.\nAs previously announced on September 23, 2021, we are excited to be proceeding with our ambitious capital investment plan for calendar year 2022 of approximately $315 million to $325 million across our resorts, excluding one-time investments related to integration activities, employee housing development projects and real estate-related projects.\nThe plan includes approximately $180 million for the installation of 21 new or replacement lifts across 14 of our resorts and a transformational lift served terrain expansion at Keystone.\nIn addition to the two brand-new lift configurations at Vail and Keystone, the replacement lift will collectively increase lift capacity at those lift locations by more than 45%.\nAll of the projects in the plan are subject to regulatory approvals and expected to be completed in time for the 2022/2023 North American winter season.\nThe core capital plan 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 Peak acquisitions and $3 million for the addition of annual capital expenditures associated with the Seven Springs Resorts.\nIn addition, we have announced a $4 million capital investment plan in Vail Resorts Commitment to Zero initiative, which includes targeted investments in high-efficiency snowmaking, heating and cooling infrastructure, and lighting to further improve our energy efficiency and make meaningful progress toward our 2030 goal.\nWe plan to spend approximately $9 million on integration activities related to the recent acquired Seven Springs Resorts, including one-time investments related to integration activities and $3 million associated with real estate-related projects.\nOur total capital plan is expected to be approximately $327 million to $337 million.\nIncluding our calendar year 2022 capital plan, Vail Resorts will have invested over $2 billion in capital investments since launching the Epic Pass, increasing capacity, improving the guest experience, and creating an integrated resort network.\nReturning to normalized levels would result in estimated incremental resort reported EBITDA of approximately $100 million in fiscal 2022.\nFull year results with no acquisition or integration-related expenses would result in estimated incremental resort reported EBITDA of approximately $7 million in fiscal 2022.\nReturning our ancillary business to normalized levels would result in estimated incremental resort reported EBITDA of approximately $75 million in fiscal 2022, which includes the incremental revenue and operating expense associated with normal capacity, but excludes incremental labor expense.\nThe normalized labor expense for the ancillary businesses is included in the approximate $175 million labor investment.\nOffsetting the estimated $182 million of expected favorable resort reported EBITDA impact from returning the business to normal levels relative to projected fiscal 2022 results is the approximate $175 million labor increase from fiscal 2022 to fiscal 2023 that is expected to be necessary to return the company to normal staffing levels, giving the shortages in fiscal 2022 and the current labor market dynamics in our resort communities.", "summaries": "Net income attributable to Vail Resorts was $223.4 million or $5.47 per diluted share for the second quarter of fiscal 2022, compared to net income attributable to Vail Resorts of $147.8 million or $3.62 per diluted share in the prior year.\nWe now expect net income attributable to Vail Resorts for fiscal 2022 to be between $304 million and $350 million, and resort reported EBITDA to be between $813 million and $837 million.\nWe are pleased to announce that our board of directors has declared a quarterly cash dividend on Vail Resorts common stock of $1.91 per share.\nWe are pleased to announce a significant investment in our employees for the 2022/2023 North American ski season with an increase in the minimum hourly wage offered across all 37 of our North American resorts to USD 20 per hour for all U.S. employees and CAD 20 per hour for all Canadian employees, as well as an increase in wage rates for hourly employees, as we maintain all leadership and career stage differentials.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Dollar volume of announced M&A globally was more than $1.5 trillion in the third quarter, representing a 9% sequential increase.\nIt was also the fifth straight quarter that announced M&A activity surpassed $1 trillion.\nActivist activity remains high with a 23% year-over-year increase in the number of new activist positions in the last 12 months.\nWe ranked number 1 in the Refinitiv League Tables for dollar volume of announced M&A, both globally and in the U.S. among independent firms for the latest 12-month period, and we rank 7 among all firms in the U.S. for the same period.\nHowever, I would like to highlight that we achieved a fourth straight quarter of Advisory revenues greater than $500 million, and our year-to-date advisory revenues of $1.78 billion are more than all of 2020, which was a record year for us.\nBased on current consensus estimates and actual results, we expect to maintain our number 4 ranking based on advisory fees among all publicly traded investment banking firms over the last 12 months and to grow our market share relative to these same firms.\nWe are working on several of the top 25 announced global M&A transactions this year, including advising GE Capital Aviation on its pending $30 billion sale to AerCap Holdings, advising the board of directors of Canadian Pacific on its pending $29 billion acquisition of Kansas City Southern, serving as the lead advisor to Grab on its $40 billion SPAC merger, serving as the sole advisor to Nuance on a pending $19.7 billion sale to Microsoft, and advising MGM Growth Properties on its $17.2 billion sale to VICI Properties.\nOur underwriting business had another solid quarter booking more than $50 million in revenues and the pipeline for activity remained strong.\nWe served as active bookrunner on, approximately, 60% of the 24 equity deals and equity-linked deals we completed during the quarter.\nA few notable transactions from the quarter include: in pharma, active book runner on Ascendis Pharmacy's $450 million follow-on offering; in consumer, passive bookrunner on Olaplex's $1.8 billion IPO; in TMT, passive bookrunner on Bumble's $1.1 billion follow-on offering; in consumer, we were financial advisor to Warby Parker for its direct listing.\nWe once again ranked in the top 20 for underwriting revenue as estimated by Dealogic for the latest 12-month period for deals listed on the U.S. exchanges, excluding bought deals and ATMs. We remain focused on working our way toward the top 10 for the market share.\nHighlights include top-ranked independent research firm for the eighth straight year; number 2 ranked firm among all firms for analysts; record 43 individual positions and 40 team positions; and Ed Hyman and was awarded the number 1 position in economics for the 41st time.\nFinally, AUM and our Wealth Management business finished the quarter at $11.3 billion as long-term performance remains solid and new business continues to be positive.\nI will have more to say about my almost 13 years here on my last earnings call in early February, but I want to say that John and I have been partners in running Evercore for the last five years, for the first 3.5 years with John as Executive Chairman and I as CEO, and for the last 15 months as Co-Chairman of the Board and Co-CEOs.\nWhen I convinced John to un-retire five years ago, and it took me 18 months to convince him, it was my deep hope that he would succeed me as CEO.\nI'm also proud of the incredible strength of our culture, which truly has allowed us to thrive over the last 20 months and the last 12.5 years.\nRoger's a very modest man, but I don't think he would mind me saying that he is today the single best person on the planet at what he does, and he has been a great partner to me over the last 12.5 years.\nOur growth aspirations have evolved over the years from our goal of achieving $1 billion in advisory revenues to becoming the largest independent investment banking advisory firm in the world and the fourth largest in advisory fees among all firms, a goal that we first achieved in 2018 and have achieved every year since.\nAnd our goal lately is to steadily gain market share and to narrow the gap between Evercore and the top 3 global firms by advisory revenues, all of whom, of course, are universal banking firms.\nAdd to that the two Advisory SMDs who were promoted earlier this year, and we have 10 new SMDs in Advisory that are ramping up in areas of strategic importance to us.\nAnd, of course, there is additional inherent growth potential from the 30-plus Senior Managing Directors, including the 10 from this year, that have joined or have been promoted over the past three years and are still ramping up to full productivity.\nAnd during the period 2015 to 2020, we reduced our adjusted weighted share count by 9%, or a little over 2% a year.\nSo far this year we have returned $631.5 million to shareholders through dividends and share repurchases.\nOf the first 12 years that I have been doing Evercore earnings calls, in 11 of those 12 years, we have had record revenues and earnings per share.\nSitting where we are today, with year-to-date revenues roughly $100 million below last year's full-year record and nine month earnings per share about $0.80 above last year's full-year record, let me guide all of you by saying that 2021 will be another record year in revenues and earnings for Evercore.\nFor the third quarter of 2021, net revenues, net income, and earnings per share on a GAAP basis were $824 million, $160 million, and $3.74, respectively.\nYear-to-date, net revenues, net income, and earnings per share on a GAAP basis were $2.17 billion, $444 million, and $10.19, respectively.\nThird quarter adjusted net revenues of $832 million grew 104% year-over-year.\nYear-to-date adjusted net revenues of $2.19 billion increased 62% compared to the prior year period.\nThis represents our best third quarter ever, our second-best quarter ever overall, and the first time adjusted net revenue surpassed $2 billion in the first nine months of the year.\nThird quarter Advisory fees of $709 million grew 161% year-over-year.\nYear-to-date advisory fees of $1.78 billion increased 84% versus the prior year period.\nOur advisory fees include, approximately, $93 million of revenue from transactions that closed in early October.\nTo compare, we recognized $59 million in the second quarter of 2021 and $20 million in the third quarter of 2020.\nThird quarter underwriting fees of $54 million reflected a decline of 18% year-over-year.\nThis compares favorably to the overall market for U.S. equity and equity-linked issuance which declined nearly 25% year-over-year as SPAC activity slowed dramatically.\nYear-to-date underwriting fees of $182 million are essentially flat versus the prior-year period, which as a reminder, included two sizable transactions in the second quarter of 2020 that totaled nearly $45 million in revenues.\nThird quarter commissions and related revenue of $47 million increased 6% year-over-year even as market volumes and volatility declined.\nYear-to-date commissions and related revenue of $151 million declined 2% versus the prior year period as market volatility declined significantly.\nThird quarter asset management and administration fees of $20 million increased 21% year over year on higher AUM.\nYear-to-date asset management and administration fees of $57 million increased 21% versus the prior year period.\nOur adjusted compensation ratio for the third quarter is 58.5%, which brings our year-to-date comp ratio to 58.8%.\nThird quarter non-compensation costs of $83 million increased 17% year over year driven by higher professional fees due to higher activity levels and strong recruiting efforts, higher T&E due to both increased travel and entertainment, and higher occupancy expense due to more space as we grow as well as expenses relating to our return to the office.\nOn a sequential basis, non-compensation expenses increased 14% driven by higher professional fees which reflected the aforementioned recruiting costs, higher other operating expenses, and higher T&E.\nIn 2019, of our T&E expense, 83% was related to travel.\nYear-to-date travel is running at about 20% of 2019 levels, and we expect that to settle at 70% to 80% of pre-pandemic levels.\nThird quarter adjusted operating income and adjusted net income of $262 million and $188 million increased 237% and 258%, respectively.\nYear-to-date adjusted operating income and adjusted net income of $674 million and $505 million increased 156% and 177%, respectively, versus the prior year period.\nWe delivered a third quarter adjusted operating margin of 31.5%, while third quarter adjusted earnings per share of $3.96 increased 257% year over year.\nOur year-to-date adjusted margin is 30.7%.\nAdjusted earnings per share of $10.41 increased 170% versus the prior year period.\nTurning to our balance sheet, as of September 30th, we held $479 million in cash and equivalents and $1.3 billion in investment securities.\nYear-to-date we have bought back 4.1 million shares in total; approximately, half of which is in excess of what we bought back to offset dilution from RSU grants.\nRalph has led this firm over the last 13 years guiding us with vision, extraordinary leadership, and management skills, building a firm of broad and deep capability with the highest quality talent on the street.\nOver the last five years, I've had the great good fortune to partner with Ralph and Roger to work together to continue our journey of growth, supported by the same underpinning of principles on which Roger founded the firm 25 years ago.", "summaries": "For the third quarter of 2021, net revenues, net income, and earnings per share on a GAAP basis were $824 million, $160 million, and $3.74, respectively.\nWe delivered a third quarter adjusted operating margin of 31.5%, while third quarter adjusted earnings per share of $3.96 increased 257% year over year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "While our current operating environment could not be more different than what our founder George Tennant encountered in 1870, the Company has always maintained a tradition of innovation and resilience, demonstrated by our ability to adapt and stay relevant to our customers.\nAs Andy will speak to in a few moments, we are reinitiating our full year guidance for 2020 which not only reflects our revenue and profitability expectations, but also our commitment to investing in our business to support our long-term enterprise strategy.\nDan has broad enterprise leadership and deep functional expertise across all aspects of manufacturing operations, supply chain management, and enterprise transformation and he brings more than 25 years of Global Operations leadership experience to Tennant.\nOverall, for the third quarter of 2020, Tennant reported net sales of $261.9 million, down 6.7% year-over-year.\nOrganic sales, which exclude the impact of currency effects declined 7.1%.\nThis represents the significant improvement in our sales trajectory when compared to the 27% decline we experienced in the second quarter.\nFor the third quarter, we reported net earnings of $11.7 million or $0.63 per share, down from $14.6 million or $0.79 per share in the year ago period.\nAdjusted EPS, which excludes certain non-operational items and amortization, totaled $0.90 compared with $0.85 in the prior year.\nSales in the Americas declined 9.9% year-over-year and were down 8.8% organically.\nSales in EMEA declined 0.3% or down 4.5% organically in the quarter as a result of market weakness across the region.\nSales in the APAC region declined 0.8%, down 2.3% organically.\nWhile equipment sales were down approximately 12% year-over-year for the quarter, aftermarket revenue was up 6% over the same period last year, reflecting our efforts in helping customers meet their rapidly evolving cleaning needs during the pandemic.\nAdjusted gross margins during the third quarters of 2020 and 2019 were 40.2% and 40.8% respectively.\nTurning to expenses, during the third quarter, our adjusted S&A expenses were 29.8% of net sales compared with 31.2% in the year ago period, mainly as a result of cost containment efforts and adjustments to management incentives.\nCombining these results, our EBITDA in the third quarter of 2020 was $32.6 million or 12.4% of sales compared with $31.4 million or 11.2% of sales in the third quarter of 2019.\nAs for our tax rate, in the third quarter, the Company had an adjusted effective tax rate of 11.3% compared to 16.1% in the year ago period.\nIn the third quarter of 2020, Tennant generated $48.9 million in cash flow from operations, primarily driven by business performance and improvements in working capital.\nAlso in the third quarter, we repaid an additional $17 million of debt.\nAs of September 30th, we had $124.7 million in cash and cash equivalents, and approximately $172 million of undrawn funds on our revolver.\nAs included in today's earning announcement, our full year 2020 guidance is as follows; Net sales of $995 million to $1,005 million with organic sales declining 12.5% to 11.5%; GAAP earnings of $2.00 to $2.20 per share; adjusted earnings per share of $2.80 to $3.00 per share, which excludes certain non-operational items and amortization expense; adjusted EBITDA in the range of $116 million to $121 million; capital expenditures of approximately $35 million; and an effective tax rate of approximately 17%.\nIt's worth mentioning that our guidance does include approximately $5 million to $8 million of government benefits, which is primarily driven by the wage subsidies we received and mentioned in our second quarter results.", "summaries": "As Andy will speak to in a few moments, we are reinitiating our full year guidance for 2020 which not only reflects our revenue and profitability expectations, but also our commitment to investing in our business to support our long-term enterprise strategy.\nOverall, for the third quarter of 2020, Tennant reported net sales of $261.9 million, down 6.7% year-over-year.\nFor the third quarter, we reported net earnings of $11.7 million or $0.63 per share, down from $14.6 million or $0.79 per share in the year ago period.\nAdjusted EPS, which excludes certain non-operational items and amortization, totaled $0.90 compared with $0.85 in the prior year.\nAs included in today's earning announcement, our full year 2020 guidance is as follows; Net sales of $995 million to $1,005 million with organic sales declining 12.5% to 11.5%; GAAP earnings of $2.00 to $2.20 per share; adjusted earnings per share of $2.80 to $3.00 per share, which excludes certain non-operational items and amortization expense; adjusted EBITDA in the range of $116 million to $121 million; capital expenditures of approximately $35 million; and an effective tax rate of approximately 17%.", "labels": "0\n1\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "Earnings were $738 million or $1.24 per diluted share, an increase of $0.09 over last year.\nLoan receivables were down 6% to $81.9 billion, and average active accounts decreased 10% from last year, with new accounts down 19%.\nPurchase volume per account increased 10% over last year to $602.\nAnd average active balance per account increased 4% to just under $1,200.\nNet interest margin was down 37 basis points to 14.64% and the efficiency ratio was 37.1% for the quarter.\nNet charge-offs hit a new low at 3.16%.\nAs a result of our liquidity and funding strategy, in response to COVID-19 impact on our balance sheet, deposits were down $2.3 billion or 4% versus last year.\nTotal deposits comprise 80% of our funding and our direct deposit platform remains an important funding source.\nDuring the quarter -- we returned $128 million in the quarter through a common stock dividend.\nWe also announced that the Board authorized $1.6 billion in share repurchases for 2021, beginning in the first quarter.\nCareCredit is already accepted at more than 9,000 Walgreens and Duane Reade stores.\nApproximately, 60% of our applications were done digitally during the fourth quarter and grew 18% in mobile channel applications.\nIn Retail Card, 51% of our sales occurred online.\nFinally, approximately 65% of our payments were made digitally.\nTogether, with our 16,500 employees, we are doing just that.\nWe offer mid- and long-term equal payment plans with promotional periods anywhere from 12 to 162 months, depending on the product category.\nWe also offer short-term equal payment plans with promotional periods of three to 12 months.\nWe offer collateralized installment products with bigger ticket purchases with promotional periods from 12 to 180 months.\nThese products run anywhere from three to 36 months.\nAll of these products are priced appropriately to meet our partner and customer objectives with APR starting at 0%, and each of these products, in turn, offer distinct benefits and address the unique objectives of our partners and customers.\nTo put our overall equal payment financing strategy in perspective, we currently have $15 billion in equal payment balances, 56% of which have 0% APR financing.\nWe have about 74,000 partners or locations offering our payment plan products.\nAnd we have an overall repeat purchase rate of approximately 30% within 24 months of the first purchase.\nPurchase volume was essentially flat, down 1% versus last year and in line with our expectations for the quarter, despite some pressure from new shutdowns and restrictions as the pandemic progressed during the quarter.\nThe continued pressure caused our average active accounts to be down 10% and a decrease in loan receivables of 6%.\nInterest and fees on loans were down 11% from last year, consistent with the core decrease we experienced last quarter.\nDual and co-branded cards account for 38% of our purchase line in the fourth quarter and declined 4% from the prior year.\nOn a loan receivable basis, they account for 24% of the portfolio and declined 10% from the prior year.\nRSAs increased $18 million or 2% from last year.\nRSAs as a percentage of average receivables was 5.2% for the quarter.\nThe improvement in net charge-offs resulted in a decrease in the provision for credit losses of $354 million or 32% from last year.\nThis was partially offset by a reserve build in the fourth quarter of $119 million.\nOther income decreased $22 million, mainly due to higher loyalty costs.\nOther expense decreased $79 million or 7% from last year due to lower purchase volume and average active accounts, coupled with lower employee costs as we have begun to implement our strategic plan to reduce operating expenses.\nIn Retail Card, loan receivables were down 8%, with the COVID-19 impact being partially offset by strong growth in digital programs.\nThat resiliency is evident in the growth in purchase line, which was up 1% over last year.\nLoan receivables declined 2%.\nAverage active account and interest and fees on loans were down 9%, which was driven primarily by lower yield on loan receivables.\nPurchase line decreased 7% this quarter.\nWe continue to drive growth organically through our partnerships and networks and added over 2,800 new merchants during the quarter.\nWe also continue to drive higher card reuse, which now stands at approximately 34% of purchase volume, excluding oil and gas.\nLoan receivables declined 7% with interest and fees on loans decreasing 4%, primarily driven by lower merchant discount revenue as a result of the decline in purchase volume, which was down 6%.\nAverage active accounts decreased 10%.\nThe expansions of our network and acceptance strategy has helped to drive reuse rate to 59% of purchase line in the fourth quarter.\nNet interest income decreased 9% from last year primarily driven by an 11% decrease in interest and fees on loan receivables due to the impact of COVID-19.\nNet interest margin was 14.64% compared to last year's margin of 15.01%, largely driven by the impact of COVID-19 on loan receivables, an increase in liquidity and lower benchmark rates.\nSpecifically, the mix of loan receivables as a percent of total earning assets declined approximately 30 basis points from 80.2% to 79.9%, driven by higher liquidity held during the quarter.\nThe loan receivables yield of 19.93% was down 94 basis points versus last year and was a driver of a 75 basis point reduction in our net interest margin.\nThe liquidity yield declined as a result of lower benchmark rates and accounted for a 30 basis point reduction in our net interest margin.\nThese impacts were partially offset by an 89 basis point decrease in the total interest-bearing liabilities cost to 1.69%, primarily due to lower benchmark rates and a higher proportion of deposit funding.\nThis provides a 73 basis point increase in our net interest margin.\nThe 30-plus delinquency rate was 3.07% compared to 4.44% last year.\nThe 90-plus delinquency rate was 1.40% compared to 2.15% last year.\nThe net charge-off rate was 3.16% compared to 5.15% last year.\nThe allowance for credit losses as a percent of loan receivables was 12.54% with the increase to last year being primarily driven by the adoption of CECL in 2020 and the impact from COVID-19.\nOverall expenses were $1 billion for the quarter, down $79 million or 7% from last year.\nThe efficiency ratio for the fourth quarter was 37.1% compared to 34.8% last year.\nDeposits declined $2.3 billion from last year.\nOur securitized and unsecured funding sources were down $2.6 billion and $1.5 billion, respectively.\nThis resulted in deposits being 80% of our funding compared to 77% last year with securitized and unsecured funding, each comprising 10% of our funding sources at quarter end.\nTotal liquidity, including undrawn credit facilities, was $23.7 billion, which equated to 24.7% of our total assets, up from 22% last year.\nWith this framework, we ended the quarter at 15.9% CET1 under the CECL transition rules, 180 basis points above last year's level of 14.1%.\nThe Tier one capital ratio was 16.8% under CECL transition rules compared to 15% last year.\nThe total capital ratio increased 180 basis points as well to 18.1%.\nAnd the Tier one capital plus reserves ratio on a fully phased-in basis increased to 27% compared to 21.4% last year, reflecting the increase in reserves as a result of implementing CECL.\nDuring the quarter, we paid a common stock dividend of $0.22 per share.\nFor the full year, we returned approximately $1.5 billion to shareholders in the form of share repurchases and common stock dividends.\nWith this backdrop, the Board has authorized $1.6 billion in share repurchases for 2021, beginning in the first quarter.\nWe believe this will result in expense reductions of approximately $210 million during the year.", "summaries": "Earnings were $738 million or $1.24 per diluted share, an increase of $0.09 over last year.\nNet interest income decreased 9% from last year primarily driven by an 11% decrease in interest and fees on loan receivables due to the impact of COVID-19.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Regarding fourth quarter results and reporting all percentages on a constant currency basis, consolidated revenues were $759 million, with CooperVision at $565 million, up 11%; and CooperSurgical at $194 million, up 11%.\nNon-GAAP earnings per share were $3.28.\nFor CooperVision, our daily silicone hydrogel portfolio led the way, growing 19%.\nFor the regions, the Americas grew 6%, led by our daily silicone hydrogel lenses, with particular strength in MyDay, where we continue seeing strong fit activity.\nEMEA grew a healthy 15%, with improving consumer activity and strength in our key accounts driving growth and share gains.\nAsia Pac grew 14%, led by a steady improvement in consumer activity and success with several new product launches.\nOur portfolio grew 63% to $21 million, with MiSight up 165% to $7 million and Ortho K products up 40%.\nWe reached our goal of $65 million for the year, up 76% year over year, and our momentum is strong.\nRegarding MiSight, we didn't quite reach our target this quarter, but we did reach $19 million in sales for the full year, up a very impressive 149% year over year.\nWe've also assembled an advisory board of key opinion leaders, whose affiliated hospitals represent over 50% of myopia management contact lens volume in China.\nAs a reminder, childhood myopia rates in China are estimated at over 80%, and reducing myopia is a priority for the Chinese government, so the opportunity is significant.\nIt cuts myopia progression by roughly 59% on average.\nAnd there's no rebound if treatment is stopped.\nOverall, on myopia management, our momentum is strong, and we're still targeting constant currency growth of over 50% in fiscal 2022, to roughly $100 million in sales.\nTo conclude on Vision, we estimate the overall contact lens market grew 7% in calendar Q3, while CooperVision grew 8% even as new fits remain below pre-COVID levels.\ndata, roughly 64% of eye care practitioners stated they had capacity to serve more patients but cannot, mostly due to staffing challenges.\nHaving said that, trends are positive, and we expect the market to grow in the 4% to 6% range this coming year, supported by improving fit activity in the U.S. and EMEA and reopening activity in Asia Pac.\nMeanwhile, the long-term macro growth trends remain solid, with roughly one-third of the world being myopic today and that expected to increase to 50% by 2050.\nOur fertility business performed exceptionally well, growing 24% year over year to $82 million.\nRegarding the broader fertility industry, our addressable market is approaching $2 billion, with 5% to 10% long-term growth expected.\nIt's estimated that one in eight couples has trouble getting pregnant due to a variety of factors, such as increasing maternal age, and that more than 100 million individuals worldwide suffer from infertility.\nWithin our office and surgical unit, we grew 3%.\nMedical devices performed well, growing 20%, led by our portfolio of uterine manipulators, several of our surgical devices and our next-generation EndoSee Advance product line.\nMeanwhile, PARAGARD declined 17%, largely as forecasted due to buy-in activity from last quarter's price increase.\nLastly, for CooperSurgical, we recently announced an agreement to acquire Generate Life Sciences for $1.6 billion.\nRoughly one-third of the business is in fertility, which we estimate will grow 5% to 10% long-term, supported by general industry growth.\nTwo-thirds of the business is in cord blood and cord tissue storage, which we expect to grow 3% to 5% long term.\nConsolidated, this business offers long-term sustainable growth of 4% to 6%, and we believe there are opportunities to push that range higher with potential revenue synergies as we leverage our expertise.\nTo finish, let me make a few comments on fiscal 2022.\nFourth quarter consolidated revenues increased 11% year over year and also 11% in constant currency to $759 million.\nConsolidated gross margin decreased year over year by 20 basis points to 67.5% driven primarily by currency, partially offset by lower manufacturing costs at CooperVision.\nOperating expenses grew 16% as strategic investments in sales and marketing to support myopia management and fertility continued.\nConsolidated operating margins were 24.9%, down from 26.8% last year.\nInterest expense was $5 million on lower average debt, and the effective tax rate was 10.3%, helped by stock option exercises in the quarter.\nNon-GAAP earnings per share was $3.28, with roughly 49.9 million average shares outstanding.\nFX negatively impacted us and was roughly $0.05 worse than expected when we gave guidance last quarter.\nFree cash flow was solid at $110 million, comprised of $175 million of operating cash flow, offset by $65 million of capex.\nNet debt decreased to $1.4 billion, and our adjusted leverage ratio improved to 1.38 times.\nMoving to 2022 guidance and excluding the recently announced Generate Life Sciences acquisition, consolidated revenues are expected to be in the range of $3.032 billion to $3.090 billion, up 6% to 8% in constant currency, with CooperVision revenues between $2.225 billion and $2.267 billion, up 6% to 8% in constant currency, and CooperSurgical revenues between $807 million and $823 million, up 6% to 8% in constant currency.\nNon-GAAP earnings per share is expected to range from $13.60 to $14, up 9.5% to 12.5% in constant currency.\nAnd the tax rate is expected to be around 13%.\nAt the midpoint of guidance, this equates to constant currency revenue growth of roughly 7% and constant currency earnings per share growth of roughly 11%.\nRegarding currency on a year-over-year basis, we're expecting an FX headwind of roughly 2.5% on revenues and 7% on EPS.\nThis impact will be most detrimental in Q1, where we're expecting earnings per share in the $3 to $3.10 range.\nAs of today, we're optimistic we'll close in the next couple of weeks, which would give us roughly 10.5 months of their operations in our fiscal 2022.\nAs previously announced, Generate has roughly $250 million in trailing 12-month revenue.\nGross margins are expected to be roughly 70%.\nAs we are now closer to securing permanent financing for this transaction, we are updating our year one non-GAAP earnings per share accretion estimate to around $0.50 and would add that we expect this accretion to improve in year two with synergies.", "summaries": "Non-GAAP earnings per share were $3.28.\nAnd there's no rebound if treatment is stopped.\nTo finish, let me make a few comments on fiscal 2022.\nFourth quarter consolidated revenues increased 11% year over year and also 11% in constant currency to $759 million.\nNon-GAAP earnings per share was $3.28, with roughly 49.9 million average shares outstanding.\nNon-GAAP earnings per share is expected to range from $13.60 to $14, up 9.5% to 12.5% in constant currency.", "labels": 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{"doc": "As David will discuss, Stewart's operating revenues are up almost $240 million or 40% from last year.\nAnd operating income was up over $30 million or 55% in a quarter in which the Mortgage Bankers Association forecasts have purchase originations down 12% year-over-year and overall mortgage originations down 25%.\nOn the -- of the top people at Stewart, what we call our senior leadership team, 50% are new or have been promoted.\nFor the third quarter of 2021, Stewart yesterday reported net income of $89 million and diluted earnings per share of $3.26 on total operating revenues of $830 million.\nCompared to last year, total title revenues for the quarter increased $205 million or 37% due to solid results from our residential agency and commercial operations.\nThe title segment generated pre-tax income of $119 million, which is $37 million higher than last year's quarter as a result of this revenue growth and continued management focus.\nPretax margin for the segment also improved 90 basis points to 15% compared to last year.\nWith respect to our direct title business, residential revenues increased $55 million or 23%, driven by higher purchase transactions and improving scale.\nResidential fee per file was approximately $2,400, a 24% improvement compared to last year's average fee per file due to a higher purchase mix.\nDomestic commercial revenues improved $28 million or 76% due to increased transaction volume and higher average fee per file, which was $15,400 versus $9,700 in last year's quarter.\nTotal international revenues increased $17 million or 49%, primarily due to improved volumes in our Canadian operations.\nTotal opened and closed orders in the third quarter decreased 13% and 3% respectively due to lower refinancing transactions consistent with the market trend.\nHowever, commercial and purchase closed orders increased 11% and 8% respectively compared to the third quarter of 2020.\nIn line with our direct title business, agency operations generated a strong quarter, with revenues improving 42% to $402 million versus $283 million last year.\nThe agency remittance rate for the third quarter was 17.9% compared to 18.2% last year.\nOn a year-to-date basis, it was 17.8% for both '21 and '20.\nOn title losses, total title loss expense increased $2 million or 7% primarily as a result of higher title revenues, partially offset by favorable claims experience.\nAs a percentage of title revenues, the title loss expense in the third quarter was 4% compared to 5% in the prior year quarter.\nEmployee costs as a percentage of operating revenues improved to 24% from 26% last year, while other operating expenses increased to 18% from 17% last year primarily due to increased pass-through appraisal and service costs.\nAt that point, the company had $85 million in run rate revenues and a 15%-plus pre-tax margin, with new customers to be onboarded and a good pipeline of future business that should grow both the top and bottom line going forward.\nOur total cash and investments on the balance sheet are approximately $585 million over regulatory requirements, and we had about $74 million on our existing line credit facility.\nStockholders' equity attributable to Stewart increased to $1.2 billion at September 30, 2021, with a book value of approximately $45 a share.\nLastly, net cash provided by operations for the third quarter increased to $107 million compared to $91 million from last year's quarter.", "summaries": "For the third quarter of 2021, Stewart yesterday reported net income of $89 million and diluted earnings per share of $3.26 on total operating revenues of $830 million.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "But I'd like to highlight the 7% organic revenue growth that we reported, reflecting broad and strong demand in key markets such as semiconductors, smartphones, water, residential construction and automotive.\nAs part of the transaction, we received 7.3 billion cash from IFF and retired slightly more than 197 million coupon shares, or about 27% of our outstanding shares at the time with no cash outlay.\nWe strengthened our balance sheet during the quarter by paying down our $3 billion term loan, and we will redeem $2 billion of our long-term debt later this month.\nIn line with our balanced approach, we returned about 660 million of capital to shareholders during the first quarter through share repurchases and dividends.\nUnder our existing share buyback program, we executed 500 million in share repurchases during the first quarter.\nAs a reminder, we have about 500 million of repurchase authorization remaining under that program, which we intend to utilize by June 1 of this year.\nEarlier this quarter, we also announced that our board of directors authorized a new 1.5 billion share buyback program, which expires on June 30, 2022.\nWith respect to dividends, we returned about 160 million in cash to shareholders during the quarter.\nAs we previously mentioned, going forward, we will target a payout ratio between 35 and 45%.\nIn March, we announced a definitive agreement to acquire Laird Performance Materials for $2.3 billion.\nWe anticipate receiving more than 900 million in gross proceeds from those divestitures, and we expect those transactions to close in the second half of this year.\nWith respect to the automotive end market, demand is well above the lows of 2020 but not yet back to 2019 levels, which sold 22.9 million vehicles produced in the first quarter and nearly 90 million units for the year.\nEven where we participate in the value chain within M&M, I think it's important to note that our first quarter engineering polymers volumes were not materially affected by the chip shortages as our demand from the Tier 1 and Tier 2 suppliers was not lessened as a result of the chip shortage.\nThis supply situation is gradually improving while we anticipate several critical products will continue to constrain our production through the end of the second quarter.\nCollectively, these two markets account for approximately 20% of our total company sales.\nSequentially, our sales in the aero and oil and gas were up over 40%.\nNet sales of 4 billion were up 8% versus the first quarter of 2020, up 7% on an organic basis.\nOverall sales growth was driven by strong volume, up 7% versus first quarter of last year, with volume increases in all three reporting segments.\nCurrency provided a 3% tailwind in the quarter led by the euro.\nPortfolio was a 2% headwind, primarily due to the sale of the trichlorosilane business last year.\nSales were up in all three segments, with E&I, M&M and W&P reflecting organic growth of 14%, 8% and 1%, respectively.\nOn a regional basis, organic sales were up 20% in Asia Pacific, our largest region from a sales perspective, with strong results in all three reporting segments.\nPartially offsetting gains in Asia Pacific were organic sales decline in the U.S. and Canada and EMEA of 4 and 2%, respectively.\nFrom an earnings perspective, we delivered operating EBITDA of 1.05 billion and adjusted earnings per share of $0.91 per share, up 15 and 90%, respectively.\nVolume gains, as well as benefit from prior-year cost initiatives and currency drove 160 basis points of operating EBITDA margin expansion and 1.9 times operating leverage.\nIncremental margins for the quarter were 46%.\nOur total company gross margin for the quarter was 36.8%, flat on a year-over-year basis.\nGross margin expanded about 280 basis points sequentially, with margin improvement in all three segments.\nFrom a segment perspective, E&I delivered operating EBITDA margin of 33.5% and 420 basis points of margin expansion versus the year-ago period on strong volume growth and a onetime discrete gain related to an asset sale.\nExcluding the benefit of the asset sale, operating EBITDA margin would have been 31.7%, a year-over-year improvement of 240 basis points.\nM&M delivered operating EBITDA margins of 22.9% and 320 basis points of margin expansion versus the year ago period on higher volumes and savings from productivity actions.\nFor the quarter, cash flow from operating activities and free cash flow were 378 million and 95 million, respectively.\nIn addition, cash flow and free cash flow conversion was negatively impacted by a working capital headwind of about 300 million, led by higher accounts receivable balances, which were up in line with sales.\nFor the year, we continue to target free cash flow conversion of greater than 90%.\nLeading the way for the quarter was E&I with 15% volume growth, which had a record quarter.\nShelter solutions had low single-digit organic growth versus the year ago period, reflecting high single-digit organic growth in residential construction and retail channels for do-it-yourself application, offset partially by softness in commercial construction market.\nAlso contributing to strong first-quarter top line growth was continued recovery of the global automotive market, which represents about 60% of our M&M segment from an end market perspective.\nThe most recent estimate of 1Q global auto builds were about 20.3 million units toward the quarter, up approximately 14% versus the first quarter of last year.\nAs a result, volume in our performance resins business was up over 20% versus the year-ago period.\nThese specialized materials, along with adhesive growth, helped drive over 20% organic growth in advanced solutions growth in the year ago period.\nI mentioned that adjusted earnings per share for the quarter of $0.91 was up 90% versus the prior year.\nThe lower share count provided a $0.16 benefit versus the prior year.\nExcluding the lower share count, adjusted earnings per share growth was still significant, up 56% versus the prior year.\nHigher segment earnings provided a $0.13 tailwind in the quarter versus the prior year, along with benefits this year with a lower base tax rate and reduced interest expense.\nOur base tax rate for the quarter of 19.4% was lower than forecasted as a result of a few discrete tax benefits in the quarter.\nFor the full-year 2021, we now expect our base tax rate to be in the range of 21 to 22%, down slightly from the 21 to 23% that we previously estimated at the beginning of the year.\nHowever, I would like to point out that net working capital productivity gains of about 600 million that we have made in the first quarter of last year, decreasing net working capital for about 3.5 billion at March 2020 to 2.9 billion at March of 2021.\nWe started the year with $15.6 billion in current debt.\nAnd as Ed mentioned, we paid down our $3 billion term loan in February, and we will pay down $2 billion of debt later this month.\nOur cash generated from operations last year put us in a strong cash position coming into this year, and that balance grew with a $7.3 billion special cash payment from the transaction with IFF.\nIn addition, we expect to receive over 900 million in gross proceeds this year from the previously announced sale of the non-core businesses.\nAlong with our plan for internal investment this year, we plan to grow through targeted M&A in areas of secular growth and will fund the $2.3 billion planned acquisition of Laird performance materials with cash on hand.\nAlong with our dividend policy, we completed 500 million of share repurchases in the first quarter at an average price of about $73 per share and will remain opportunistic with our remaining share repurchase authorization throughout the rest of the year.\nOn a go-forward basis, our target run and maintain cash balance is about $1.5 billion.\nAnd from a leverage perspective, our net debt-to-EBITDA target remains at 2.75 times.\nWe are raising our full-year guidance range for net sales, operating EBITDA and adjusted EPS.\nAt the midpoint of the range provided, we now expect net sales for the year to be about $15.8 billion, which reflects year-over-year growth of 10%, up from our previous estimate of 8% growth.\nWe expect to improve leverage and now expect operating EBITDA for the year to be about 4.03 billion, at the midpoint of the range provided, a year-over-year increase of 17%.\nWe are also raising our adjusted earnings per share range for the full year by $0.30 per share and now expect adjusted earnings per share of $3.67 per share, at the midpoint of the range provided.\nFor the second-quarter 2021, we expect net sales to be about 3.975 billion, and we expect the operating EBITDA to be about $1 billion, both at the midpoints of the ranges provided and both well above results in the second quarter last year.\nAt the midpoint of the range provided, we expect adjusted earnings per share for the second quarter of 2021 of $0.94 per share, which now reflects the full reduction in shares resulting from the N&B exchange offer and our weighted average shares.", "summaries": "This supply situation is gradually improving while we anticipate several critical products will continue to constrain our production through the end of the second quarter.\nFrom an earnings perspective, we delivered operating EBITDA of 1.05 billion and adjusted earnings per share of $0.91 per share, up 15 and 90%, respectively.\nShelter solutions had low single-digit organic growth versus the year ago period, reflecting high single-digit organic growth in residential construction and retail channels for do-it-yourself application, offset partially by softness in commercial construction market.\nWe are raising our full-year guidance range for net sales, operating EBITDA and adjusted EPS.\nWe expect to improve leverage and now expect operating EBITDA for the year to be about 4.03 billion, at the midpoint of the range provided, a year-over-year increase of 17%.\nWe are also raising our adjusted earnings per share range for the full year by $0.30 per share and now expect adjusted earnings per share of $3.67 per share, at the midpoint of the range provided.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n1\n0\n0"}
{"doc": "Local currency sales was 16%, and we had broad-based growth in all regions.\nWith our strong sales growth and good execution, we achieved a 19% growth in adjusted operating income and a 24% increase in adjusted EPS.\nSales were $952 million in the quarter, an increase of 16% in local currency.\nOn a U.S. dollar basis, sales increased 18% as currency benefited sales growth by 2% in the quarter.\nThe PendoTECH acquisition contributed approximately 1% to local currency sales growth in the quarter, while we estimate that COVID testing was a headwind of approximately 1% to sales growth.\nLocal currency sales increased 20% in the Americas, 10% in Europe and 16% in Asia/Rest of the World.\nLocal currency sales increased 19% in China in the quarter.\nLocal currency sales grew 20% for the nine months with a 21% increase in the Americas, 15% in Europe, and 23% growth in Asia/Rest of World.\nFor the third quarter, Laboratory sales increased 23%, Industrial increased 12%, with core Industrial up 11% and product inspection up 13%.\nFood Retail came in worse than we expected with a decline of 19% in the quarter.\nLaboratory sales increased 26%, Industrial increased 16%, with core Industrial up 21% and product inspection up 9%.\nFood Retail declined 1% for the nine-month period.\nGross margin in the quarter was 58.4%, a 20 basis point increase over the prior year level of 58.2%.\nR and D amounted to $42.3 million in the quarter, which is a 19% increase in local currency over the prior period.\nSG and A amounted to $240.7 million, a 16% increase in local currency over the prior year.\nAdjusted operating profit amounted to $272.8 million in the quarter, a 19% increase over the prior year amount of $230 million.\nAdjusted operating margins reached 28.7%, a 20 basis point increase over the prior year level of 28.5%.\nOn a teo-year combined basis, our margins were up 270 basis points as the prior year margin benefited from the cost actions we implemented due to the pandemic.\nA couple of final comments on the P and L. Amortization amounted to $16 million in the quarter, interest expense was $11.8 million in the quarter, other income in the quarter amounted to $3.3 million primarily reflecting nonservice-related pension income.\nOur effective tax rate before discrete items and adjusted for the timing of stock option deductions was 19.5%.\nFully diluted shares amounted to $23.4 million in the quarter, which is a 3% decline from the prior year.\nAdjusted earnings per share for the quarter was $8.72, a 24% increase over the prior year amount of $7.02.\nOn a reported basis in the quarter, earnings per share was $8.71 as compared to $6.68 in the prior year.\nReported earnings per share in the quarter includes $0.18 of purchased intangible amortization, $0.02 of restructuring offset by $0.19 due to the difference between our quarterly and annual tax rate due to the timing of stock option exercises.\nLocal currency sales grew 20%, adjusted operating income increased 35%, with margins up 210 basis points.\nAdjusted earnings per share grew 43% on a year-to-date basis.\nIn the quarter, adjusted free cash flow amounted to $243.1 million, which is an increase of 19% and on a per share basis as compared to the prior year.\nDSO was 35 days, which is two days less than the prior year.\nITO came in at 4.5 times, which is slightly better than last year.\nOn a year-to-date basis, adjusted free cash flow amounted to $615.3 million, an increase of 48% on a per share basis as compared to the prior year.\nFor the full year 2021, we now expect local currency sales growth in 2021 and to be approximately 17%.\nThis compares to previous guidance of 15%.\nWe expect full year adjusted earnings per share to be in the range of $33.35 to $33.40, which is a growth rate of 30%.\nThis compares to previous guidance of adjusted earnings per share in the range of $32.60 to $32.90.\nWith respect to the fourth quarter, we would expect local currency sales growth to be approximately 8% and expect adjusted earnings per share to be in the range of $10 to $10.05, a growth rate of 8% to 9%.\nFor the full year 2022, based on our assessment of market conditions today, we would expect local currency sales growth to be approximately 6% and adjusted earnings per share to be in the range of $37.25 to $37.65.\nUsing the midpoint of 2021 guidance, this reflects a growth rate of 12% to 13%.\nWe expect interest expense to be approximately $50 million in 2022 in total amortization, including purchase intangible amortization to be $65 million.\nPurchase intangible amortization is excluded from adjusted earnings per share and is estimated at $24 million on a pre-tax basis or $0.79 per share in 2022.\nIn 2022, other income, which is below operating profit, will amount to approximately $13.5 million.\nThis is higher than the $10.7 million expected in 2021 due to an expected increase in pension income.\nFinally, we assume our effective tax rate before discrete items will be 19.5% in both 2021 and 2022.\nIn terms of free cash flow for 2021, we now estimate it will reach $810 million, which reflects a 29% growth on a per share basis.\nFor 2022, we would estimate free cash flow in the range of $845 million.\nOnce we get beyond 2022, we expect free cash flow per share will grow in line with earnings per share and net income conversion will be in the 100% range.\nWe expect to repurchase approximately $1 billion in shares in both 2021 and 2022, which should allow us to maintain a net debt-to-EBITDA ratio of approximately 1.5 times.\nWith respect to the impact of currency on sales growth, we expect currency to increase sales growth by approximately 3% in 2021 and be relatively neutral to sales growth in Q4.\nIn 2022, we would expect currency to decrease sales growth by approximately 1%.\nIn terms of adjusted EPS, currency will benefit growth by approximately 4% in 2021 and be a slight headwind to adjusted earnings per share growth in 2022.\nAn additional nice development within our Lab business is that we obtained a $36 million grant from the U.S. Department of Defense to expand our pipette tip production in California.\nWe estimate that by the end of 2023, we will expand our global tip production by approximately 15% and the grant will also allow us to enhance manufacturing, automation and warehouse and logistics surrounding tips.\nProduct Inspection grew 13% in the quarter.\nFinally, Food Retail declined 19% with pronounced declines in Americas and Asia and Rest of the World.\nSales in Europe increased 10% in the quarter with very strong growth in Lab.\nAmericas increased 20% in the quarter with excellent growth in Lab, core Industrial and Product Inspection.\nFinally, Asia and the Rest of the World grew 16% in the quarter with outstanding growth in Laboratory and good growth in Product Inspection.\nService and Consumables performed well and were up 12% in the quarter.", "summaries": "On a U.S. dollar basis, sales increased 18% as currency benefited sales growth by 2% in the quarter.\nAdjusted earnings per share for the quarter was $8.72, a 24% increase over the prior year amount of $7.02.\nOn a reported basis in the quarter, earnings per share was $8.71 as compared to $6.68 in the prior year.\nWith respect to the fourth quarter, we would expect local currency sales growth to be approximately 8% and expect adjusted earnings per share to be in the range of $10 to $10.05, a growth rate of 8% to 9%.\nFor the full year 2022, based on our assessment of market conditions today, we would expect local currency sales growth to be approximately 6% and adjusted earnings per share to be in the range of $37.25 to $37.65.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Organic revenues in the second quarter were up 19% year-over-year, adjusted EBITDA was up 21% and adjusted earnings per share of $0.94 increased 38% versus last year.\nRevenues also grew in each geography, including organic growth of 19% in the Americas, 27% in the EMEA and 9% in the Asia-Pacific region.\nTotal organic revenues increased by 9.5% versus the second quarter of 2019, which had no COVID-19-related impacts with double-digit growth in HHC and Engineering Adhesives and mid single-digit growth in Construction Adhesives.\nStrong volume leverage in the quarter, coupled with pricing benefits and operational efficiencies we're driving in the business offset significantly higher raw material costs and drove a 21% increase in EBITDA dollars year-over-year.\nRaw material input cost increased in the second quarter by about 10% from the end of 2020 with some raw materials increasing more rapidly than we forecasted.\nWe have implemented $150 million of annualized price adjustments to date and we'll implement an additional $75 million in the third quarter.\nWe now expect the year-on-year raw material inflation to be over 10% and expect that our pricing will fully offset raw material increases by the end of the third quarter.\nAnd the actions we have taken on price and to drive efficiencies across our business enabled us to seamlessly serve our customers and achieve our profit targets in the quarter, while at the same time increasing our debt paydown over last year's level, in line with our target for $200 million of debt reduction in 2021.\nHygiene, Health and Consumable Adhesives' second quarter organic sales increased 3.3% year-over-year, which is an outstanding result considering the comparison to a very strong quarter last year when the business grew 7% organically.\nHHCs segment EBITDA increased by 11%, significantly more than the top-line growth and EBITDA margin was strong at 14.7%, up 70 basis points versus last year.\nConstruction Adhesives' organic revenue was up 23% versus last year with strong growth in both flooring and commercial roofing as share gains and improving demand drove significantly improved top-line performance versus 2020.\nEven compared to a strong non-COVID impacted second quarter of 2019, organic revenue was up 4%.\nConstruction Adhesives EBITDA increased 4% versus last year as strong volumes were offset by higher raw material costs, unfavorable mix and some temporary manufacturing costs that were required to return to normal service levels after the extreme weather event in the first quarter.\nEngineering Adhesives' results were extremely strong with organic revenue up nearly 40% versus last year, reflecting share gains and improving end market demand.\nSales increased versus last year in all 14 of our Engineering Adhesives end markets with exceptional growth in adhesives for automotive, recreational vehicles, woodworking, electronics and insulating glass.\nAnd looking back to the non-COVID impacted second quarter of 2019, organic revenues were up 11%.\nEngineering Adhesives' second quarter EBITDA grew 42% year-on-year, driven by exceptional volume performance.\nNet revenue was up 22.7% versus the same period last year.\nCurrency had a positive impact of 3.9%.\nAdjusting for currency, organic revenue was up 18.8%, with volume up 17.4% and pricing up 1.4%, with most of that pricing realized in the second half of the quarter.\nWhen compared to Q2 2019, organic revenue increased 9.5% for the total company with strong organic growth for all three GBUs.\nAdjusted gross profit was up 17.4% year-on-year, and gross profit margin was down 120 basis points as volume growth and pricing gains were offset by higher raw material costs.\nAdjusted selling, general and administrative expense was down 130 basis points as a percentage of revenue, reflecting volume leverage, savings associated with our business reorganization, and general cost controls, offset by higher variable compensation than last year.\nIn total, adjusted operating income margin improved by 20 basis points year-over-year.\nNet interest expense declined by $1.3 million, reflecting lower debt balances.\nThe adjusted effective income tax rate in the quarter was 26.8% compared to 27.6% in the same period last year.\nAdjusted EBITDA for the quarter of $122 million was up 21% versus the same period last year, driven by strong volume growth, pricing gains and restructuring savings, partially offset by higher raw material costs and higher variable compensation.\nAdjusted earnings per share were $0.94, up 38% versus the second quarter of last year, reflecting strong income growth and lower interest expense associated with our debt reduction.\nCash flow from operations in the first half of the year of $80 million compares to $108 million in the same period last year, reflecting working capital requirements to support strong top-line performance, as well as higher raw material costs.\nWe continue to reduce debt, paying down $62 million in the first half of 2021 compared to $51 million during the same period last year and keeping us on track for our full-year debt paydown plan of $200 million.\nRegarding our outlook, based on what we know today, we now expect full-year revenue growth to be in the low double-digits.\nAs you will recall, we increased our adjusted EBITDA guidance range last quarter to $455 million to $475 million and this guidance remains unchanged, given our expectations for the continued strong volume growth and accelerating pricing offsetting raw material cost increases that we now expect to exceed 10% for the fiscal year.\nBased on the seasonality of our business and the timing of raw material and price increases, we expect revenues in the third quarter to be up about 15% versus the third quarter of 2020 as we continue to deliver strong top-line growth.\nEBITDA margin in the third quarter is expected to be about 100 basis points lower than the second quarter on a sequential basis.\nWe expect cash flow to be strong for the rest of the year, allowing us to maintain our target to pay down approximately $200 million of debt during 2021.\nOur 19% second quarter organic revenue growth is even more significant than it appears, considering our HHC business had a very strong quarter of 7% organic growth in the second quarter last year.\nAnd our business, overall, grew 9.5% compared to pre-COVID levels in the second quarter of 2019.\nWe implemented $150 million in price increases, effective from March 1 through July 15, and we're planning an additional $75 million in price increases later in Q3.", "summaries": "Organic revenues in the second quarter were up 19% year-over-year, adjusted EBITDA was up 21% and adjusted earnings per share of $0.94 increased 38% versus last year.\nRaw material input cost increased in the second quarter by about 10% from the end of 2020 with some raw materials increasing more rapidly than we forecasted.\nWe now expect the year-on-year raw material inflation to be over 10% and expect that our pricing will fully offset raw material increases by the end of the third quarter.\nAdjusted earnings per share were $0.94, up 38% versus the second quarter of last year, reflecting strong income growth and lower interest expense associated with our debt reduction.\nRegarding our outlook, based on what we know today, we now expect full-year revenue growth to be in the low double-digits.\nAs you will recall, we increased our adjusted EBITDA guidance range last quarter to $455 million to $475 million and this guidance remains unchanged, given our expectations for the continued strong volume growth and accelerating pricing offsetting raw material cost increases that we now expect to exceed 10% for the fiscal year.", "labels": "1\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "We continued this momentum into July, ending the month with Chili's down just 10.9%.\nAnd in the 84% of our company-owned restaurants with open dining rooms were down just 3.8%, and 36% of our company-owned Chili's restaurants ran positive comp sales for the month.\nWe can lean into our 8 million member loyalty database, gain check-level purchasing insight from our tabletop devices and continue to improve our five-Star app with features like one-tap reorder of our guests most frequent-ordered items.\nAnd as a result, our digital sales of off-premise meals have grown from low teens to more than 50% in the fourth quarter with only a slight dip as dining rooms reopen.\nIn a single day, we launched It's Just Wings, our first virtual brand, in 1,050 Chili's and Maggiano's across the country.\nSales continue to build every week, and we clearly see the potential to exceed $150 million in the brand's first year, which would secure It's Just wings a spot in the top 200 restaurant brands.\nWe created this business in six months and launched it overnight with minimal investment in a consumer channel where demand is growing by more than 100% annually.\nFor the fourth quarter of FY '20, Brinker reported consolidated net comp sales of negative 36.7%, although comp sales recorded material improvement as the quarter progressed with the June period consolidated results down 19%.\nWhile the reported quarterly net comp sales for the brand was a negative 32.2%, performance progressed from down 51% in April at the height of the dining room closures to down only 13% for the June period.\nChili's outpaced the competition throughout the quarter with comp sales positive the casual dining sector by approximately 13% and traffic positive to the sector by approximately 18%.\nMore than 25% of our corporate Chili's restaurants reported positive comp sales for the June period, a percentage, as Wyman earlier stated, that increased to 36% in July.\nOur P&L highlights for the quarter were total revenues of $563 million, a restaurant operating margin of 6.4% and an adjusted loss per diluted share of $0.88.\nIncluded in the $0.88 loss is a burden of approximately $0.18 due to the timing of recording expenses related to annual and long-term incentive compensation plans beyond what would typically be recorded in the fourth quarter in our G&A expense.\nHourly labor and payroll tax have a good degree of variability and were favorable year over year, although total labor, including restaurant management, was unfavorable in the quarter by 260 basis points driven by sales deleverage.\nRestaurant expense margin for the quarter increased by 6.2%, again primarily due to sales deleverage.\nDespite our operators reducing year-over-year spend in this area by more than $29 million, we recorded meaningful savings in advertising spend, repair and maintenance and supplies related to on-premise dining, a portion of which we believe will be ongoing.\nAs to cost of sales, we were positive 30 basis points versus prior year, primarily due to favorable menu mix.\nBy earlier commented, our restaurant operating margin from the quarter was 6.4%.\nHowever, in conjunction with the progress we made, top line, our operating margin improved through the quarter, increasing to 12.2% for the June period.\nTo further enhance our liquidity position, we executed an equity offering in the quarter, raising approximately $139 million, which was used to pay down revolving credit debt.\nOur overall total debt balance at fiscal year end was approximately $1.2 billion, a reduction of just over $220 million from the end of the third quarter as revolving credit borrowings decreased from $700 million to less than $473 million.\nOur liquidity, which we consider to be cash balances and revolving credit availability, now exceeds $575 million.\nFor Brinker in the first quarter, we expect consolidated comp store sales to be down in the low to mid-teens range.\nAdjusted earnings per diluted share are currently estimated to be a loss in the range of $0.25 to $0.40.\nWe anticipate positive operating cash flow, and weighted average shares is estimated to be 45 million to 46 million shares.\nI have every confidence we will continue to demonstrate our ability to sustain our progress and return to growth on the top and bottom line for the long term.", "summaries": "We continued this momentum into July, ending the month with Chili's down just 10.9%.\nOur P&L highlights for the quarter were total revenues of $563 million, a restaurant operating margin of 6.4% and an adjusted loss per diluted share of $0.88.\nIncluded in the $0.88 loss is a burden of approximately $0.18 due to the timing of recording expenses related to annual and long-term incentive compensation plans beyond what would typically be recorded in the fourth quarter in our G&A expense.\nDespite our operators reducing year-over-year spend in this area by more than $29 million, we recorded meaningful savings in advertising spend, repair and maintenance and supplies related to on-premise dining, a portion of which we believe will be ongoing.\nFor Brinker in the first quarter, we expect consolidated comp store sales to be down in the low to mid-teens range.\nAdjusted earnings per diluted share are currently estimated to be a loss in the range of $0.25 to $0.40.\nI have every confidence we will continue to demonstrate our ability to sustain our progress and return to growth on the top and bottom line for the long term.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n1\n0\n1"}
{"doc": "Earnings from continuing operations were $130.4 million or $1.07 per diluted share on net sales of $1.8 billion.\nExcluding the impact of a gain on the sale of a small rail reclamation business, adjusted earnings from continuing operations were $127.1 million or $1.04 per diluted share.\nCMC reported a core EBITDA of $230.5 million, generating an annualized return on invested capital of 18%.\nWe expect more growth in the future, especially once our state-of-the-art Arizona 2 micro mill starts up in early 2023.\nAnd with recent actions firmly entrenched in our financial performance, CMC is roughly halfway to our longer-term goal of $50 million in annual cost efficiencies.\nIn April, we received the required air permit for Arizona 2, CMC's planned state-of-the-art micro mill at our Mesa, Arizona site.\nWe will be ramping operations within a very strong market environment, which will help shorten the time to achieve our targeted annual run rate incremental EBITDA of $20 million.\nHistorically, the lag between new residential activity and the inflow of supporting non-residential investment has been 9 to 24 months.\nBased on our analysis, we believe the annual percentage increase to funding ranges from 30% to 60% across the various proposals.\nAs Barbara noted, we reported record earnings from continuing operations of $130.4 million, or $1.07 per diluted share, roughly double the prior-year levels of $64.2 million and $0.53 per diluted share.\nResults this quarter include a net after-tax benefit of $3.3 million related to the sale of a small rail reclamation business.\nExcluding the impact of this, adjusted earnings from continuing operations were $127.1 million or $1.04 per diluted share.\nCore EBITDA from continuing operations was $230.5 million for the third quarter of 2021, up 49% from the year-ago period and 35% on a sequential basis.\nBoth our North America and Europe segments contributed significantly to year-over-year earnings growth, while core EBITDA per ton of finished steel reached a record level of $144 per ton.\nThe third quarter marked the ninth consecutive quarter in which CMC generated an annualized return on invested capital at or above 10%, which is well above our cost of capital.\nThe North America segment recorded adjusted EBITDA of $207.3 million for the quarter, an all-time high, compared to adjusted EBITDA of $159.4 million in the same period last year.\nThe largest drivers of this 30% improvement were a significant increase in margins on steel products, strong volume growth, and expanded margins on sales of raw materials.\nSelling prices for steel products from our mills increased by $170 per ton on a year-over-year basis and $99 per ton sequentially.\nSince bottoming in August 2020, our average monthly selling price has rebounded roughly $220 per ton.\nMargin over scrap on steel products increased $40 per ton from a year ago and $74 per ton sequentially.\nThe average selling price of downstream products of $963 per ton shipped was essentially flat compared to the prior-year third quarter.\nShipments of finished product in the third quarter increased 9% from a year ago.\nBoth rebar and merchant bar volumes out of our mills reached record levels, increasing 8% and 28% respectively compared to the third quarter of fiscal 2020.\nDownstream product shipments were impacted by a reduced backlog and weather challenges in certain geographies, resulting in a 4% reduction in year-over-year volume decline.\nOur Europe segment generated adjusted EBITDA of $50 million in -- for the third quarter of 2021, compared to adjusted EBITDA of $14.3 million in the same period of the prior year.\nMargins over scrap increased $90 per ton on a year-over-year basis and were up $84 per ton from the prior quarter.\nTight market conditions provided the backdrop to achieve the segment's higher -- highest average selling price in nine years, reaching $664 per ton during the third quarter.\nThis level represented an increase of $227 per ton compared to a year ago and $132 per ton sequentially.\nEurope volumes increased 8% compared to the prior year and reached their highest third-quarter total in a decade.\nAs of May 31, 2021, cash and cash equivalents totaled $443 million.\nIn addition, we had approximately $639 million of availability under our credit and accounts receivable programs.\nIn March, we upsized our revolving credit facility to $400 million from $350 million and extended the maturity till 2026.\nDuring the quarter, we generated $94 million of cash from operating activities despite a $79 million increase in working capital.\nAs can be seen on Slide 12, our net debt-to-EBITDA ratio now sits at 1.0 times, while our net debt to capitalization is just 20%.\nCMC's effective tax rate for the quarter was 22.6%, which was both below our full-year effective rate forecast to be around 25%.\nLastly, I would like to provide that our current outlook for capital expenditures in fiscal 2021 remains between 200 million and 225 million of which roughly 100 million will be used for the new micro mill.\nFor comparison purposes, we have previously stated that our typical capital spend averages around 150 million annually.", "summaries": "Earnings from continuing operations were $130.4 million or $1.07 per diluted share on net sales of $1.8 billion.\nExcluding the impact of a gain on the sale of a small rail reclamation business, adjusted earnings from continuing operations were $127.1 million or $1.04 per diluted share.\nAs Barbara noted, we reported record earnings from continuing operations of $130.4 million, or $1.07 per diluted share, roughly double the prior-year levels of $64.2 million and $0.53 per diluted share.\nExcluding the impact of this, adjusted earnings from continuing operations were $127.1 million or $1.04 per diluted share.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Shares granted to employees to date have appreciated from $250 million to over $500 million in value, motivating our engaged employee base to make decisions each day that can benefit our value creation and ultimately, their personal wealth.\nOur employee engagement score, up 17% over the last three years, also shows the power of ownership.\nIn expand margins, we have improved the company's adjusted EBITDA margin 370 basis points in 2019, including an improvement of 160 basis points in 2021 alone.\nWe have realized $215 million in synergies out of the $300 million commitment from the IR merger, with an additional $15 million expected in 2022.\nIIoT-enabled assets were up 250% year over year, and new product innovation increased 95% in 2021.\nIn allocate capital effectively, we secured approximately $2 billion in gross proceeds from the divestitures of Club Car and High Pressure Solutions and redeployed over $1 billion through acquisitions in 2021, which represents over 6% of sales when annualized.\nWe also repurchased $731 million in shares as part of the KKR's final equity sale, established a new $750 million share repurchase program, and initiated a quarterly dividend of $0.02 per share during the fourth quarter.\nAnd as you can see, we outperformed on this commitment in 2021, delivering 12% year-over-year organic growth.\nAnd in 2021, we delivered 4% in-year growth from M&A and 6% annualized.\nOur strong pricing, aftermarket, and I2V initiatives enable us to generate operating leverage and incremental productivity, with an expected 100 basis points of margin improvement per year over the period.\nAnd in 2021, we over delivered on this target, capturing 160 basis points of margin expansion despite several challenges like supply chain constraints and inflationary pressures.\nWith IRX as our competitive differentiator and over 275 IMPACT Daily Management or IDM meetings across our company each week, our high-performance culture encourages strong execution.\nAnd we feel that we're well on our way, as in 2021, we grew earnings per share by 63% and achieved adjusted free cash flow margin of 16%.\nLooking at the company, margins improved 370 basis points from 2019 despite COVID impacts and persistent supply chain and inflationary pressures.\nIn the ITS segment, we improved an impressive 470 basis points since 2019 as we continue to accelerate synergy capture and execute on value creation opportunities from the IR merger.\nIn the PST segment, margins have expanded 170 basis points since 2019 and 290 basis points, excluding M&A.\nBased on demonstrated progress, we received another upgrade from MSCI, which is our second upgrade in the past 18 months, and now have an A rating.\nAnd I'm really excited to announce that S&P Global, in its annual sustainability assessment that was just released a few weeks ago, scored Ingersoll Rand in the top 15% and included us in its Sustainability Yearbook for 2022.\nAnd S&P Global agrees as it elected us to its Sustainability Yearbook, which recognizes the top 15% ESG performing companies in each industry sector.\nThrough Q4 2021, we have realized $215 million in cost synergies and are on track to deliver on our $300 million commitment.\nTotal company orders and revenue increased 24% and 16% year over year, respectively, driven by strong double-digit organic orders growth across each segment despite comparisons to a strong Q4 2020.\nThe company delivered fourth quarter adjusted EBITDA of $342 million, a 15% year over year improvement, and adjusted EBITDA margins of 24.1%, a 40-basis-point sequential improvement.\nAdjusted free cash flow for the quarter was $225 million after taking into account the unique items as pointed out on the slide.\nTotal liquidity of $3.2 billion at quarter end was up approximately $400 million from prior year.\nThis takes our net leverage to 1.1 times, an 0.9 times improvement from prior year.\nFor the total company, Q4 orders grew 25% and revenue increased 18%, both on an FX-adjusted basis.\nOverall, we posted a strong book-to-bill of 1.06 for the quarter.\nWe remain encouraged by the strength of our backlog, which is up over 7% from the end of Q3 and over 50% from the end of 2020.\nTotal company adjusted EBITDA increased 15% from the prior year.\nITS segment margin declined 40 basis points, while PST segment margin declined 400 basis points, driven largely by the impact of M&A.\nWhen adjusted to exclude the impact of M&A completed in 2021, PST margin declined by 120 basis points.\nFinally, corporate costs came in at $26 million for the quarter, down year over year, primarily due to lower incentive compensation costs and general savings and prudency.\nAdjusted earnings per share for the quarter was up 51% to $0.68 per share.\nOf note, the adjusted tax rate came in at 5% for the quarter and 12% for full year 2021.\nOn a full year basis, orders grew 28% and revenue increased 16%, both on an FX-adjusted basis.\nThe full year book-to-bill was 1.12, and total company adjusted EBITDA was up 28% from 2020.\nMargin expanded by 160 basis points, with ITS margin up by 220 basis points and PST declining 50 basis points.\nWhen adjusted to exclude the impact of these acquisitions completed in 2021, PST margins increased by 70 basis points.\nITS posted incremental margins of 38%, with PST at 27% or 36%, excluding the impact of M&A.\nFree cash flow for the quarter was $224 million on a continuing ops basis, driven by strong operational performance across the business while continuing to invest organically.\nCapex during the quarter totaled $23 million, and free cash flow included $4 million of synergy and stand-up costs related to the IR merger.\nIn addition, free cash flow included a net inflow of $3 million in cash taxes related to the divestitures of the HPS and SVT segments.\nExcluding these items, adjusted free cash flow was $225 million in the quarter.\nLeverage for the quarter was 1.1 times, which was an 0.9 times improvement versus the prior year.\nAnd total company liquidity now stands at $3.2 billion based on approximately $2.1 billion of cash and over $1 billion of availability on our revolving credit facility.\nLiquidity increased by $100 million in the quarter, which included outflows of $165 million toward strategic M&A and $8 million to fund our first quarterly dividend.\nOn the left side of the page, we are updating the cost to achieve the $300 million synergy commitment related to the IR merger, as well as the associated stand-up of the new company from a combined $450 million to now $280 million, an aggregate reduction of roughly 40% or $170 million from our original estimates.\nIn addition to the $215 million in realized synergies to date, we expect an incremental $50 million in 2022 and $35 million in 2023.\nThe synergy funnel remains in excess of $350 million.\nIn Q4, we delivered an incremental margin of 23% for the total company despite strong inflationary pressures and supply chain challenges.\nWhat I'm most proud of is that even in this environment, our team was able to achieve a sequential margin improvement of 40 basis points.\nGiven continued inflationary pressures and a very tough comparison from Q1 of 2021, we expect Q1 to be the most challenged period on a year-over-year basis, but nonetheless, expect incremental margins for the total year to be approximately 35% and the quarterly EBITDA profile to be well in line with prior-year quarterly phasing.\nIn our Industrial Technologies and Services segment, organic revenue was up 11%.\nThe team delivered strong adjusted EBITDA, which rose 10% year over year and an adjusted EBITDA margin of 25.7%, up 20 basis points sequentially with an incremental margin of 23%.\nOrganic orders were up 19%.\nAnd a further breakdown shows orders for oil-free products growing at over 15% and oil-lubricated products growing at over 25%.\nAsia Pacific continues to perform very well, with orders up approximately 20%, driven by low 20% growth in China and high-teens growth across the rest of Asia Pacific.\nIn the vacuum and blower product line, orders were up approximately 20% on a global basis.\nMoving next to the power tools and lifting, Orders for the total business were up approximately 20% and saw continued positive momentum, driven mainly by our enhanced e-commerce capabilities and improved execution on new product launches.\nRevenue in the Precision and Science Technologies segment grew 15% organically, which remains encouraging given the tough comps due to COVID-related orders and revenue in Q4 of 2020 for the Medical business.\nAdditionally, the PST team delivered strong adjusted EBITDA of $78 million, which was up 22% year over year.\nAdjusted EBITDA margin was 26.8%, down 400 basis points year over year, primarily driven by the impact of M&A.\nAgain, the segment was down 120 basis points, excluding the impact of acquisitions in Q4 2021 with an adjusted EBITDA margin of 29.6% ex M&A.\nOverall, organic orders were up 40%, driven by the Medical and Dosatron businesses, which were up strong double digits in the quarter and as they serve lab, life sciences, water, and animal health end markets.\nIncremental margins were 17% as reported and 21% when excluding the impact of M&A.\nIn aggregate, we expect total company revenue to be up 11% to 13%, with the first half up 12% to 14% and the second half up 9% to 11%.\nWe expect organic revenue growth of 7% to 9% for the total company, with 7% to 9% growth expected in ITS and 8% to 10% growth in PST. FX is expected to contribute a headwind of approximately 1%, with 1% to 2% coming in the first half of 2022 and 0% to 1% in the second half.\nM&A announced and closed to date is expected to contribute an incremental $225 million in revenue.\nWe expect total adjusted EBITDA for the company to be $1.375 billion to $1.415 billion, including corporate cost of approximately $135 million spread evenly over each quarter.\nThis yields an incremental margin of approximately 35% for the total company, with positive margin expansion expected sequentially from Q1 through Q4 of 2022.\nFree cash flow conversion to adjusted net income is expected to be greater than 100%.\nWe anticipate our adjusted tax rate to normalize in the low 20s for the reasons Vik mentioned earlier, with capex representing approximately 2% of revenue.", "summaries": "Adjusted earnings per share for the quarter was up 51% to $0.68 per share.\nIn aggregate, we expect total company revenue to be up 11% to 13%, with the first half up 12% to 14% and the second half up 9% to 11%.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "We are pleased to report that in just over four months since our transformation announcement, we have already deployed or tied up over 55% of our $450 million target.\nWe have deployed or under binding contract to deploy approximately $154 million and we have been awarded another $97 million that is moving toward a binding contract.\nWe closed our first Southeastern multifamily acquisition, The Oxford, on August 10th for $48 million.\nWe have three additional acquisitions in process, including two communities that are under binding contracts of $106 million and the $97 million property that is moving toward the binding contract.\nOur first acquisition, The Oxford, is a 240 unit garden-style community in the city of Conyers, Georgia.\nThe area is primarily comprised of family households who want the benefits of living in the suburbs, combined with connectivity with downtown, midtown and the South Atlanta business districts, along with the proximity to local employment nodes, including the Interstate 20 corridor, which is experiencing significant investment as employers expand into the area.\nThe Oxford was built in 1999 and over the past five years same-store rent growth for the submarkets 1999 product has outperformed the average for all 90s vintage apartments in the Atlanta market and significantly outperformed the overall Atlanta market rent growth for all apartments.\nOver the past three years, the submarket has widened its outperformance versus the region's 90s vintage rent growth by over 3%.\nThe Oxford has performed very well during the first two-and-a- half months we've operated it, with very strong new lease rate growth of 25% during September and increasing to 26% in October.\nWe acquired The Oxford at a cap rate of 4.7% and we expect an NOI growth rate that will be very high for the next three years.\nYear-over-year effect of rents for Atlanta, Raleigh/Durham and Charlotte grew by 19.8%, 19% and 17.6% respectively in September as reported by RealPage.\nNew lease trade outs were even stronger, averaging 22.7% across the three markets and a 580 basis point inflection between June and September.\nReported first quarter annual demand had already exceeded the five-year average in each target market, yet it climbed over 23% higher from the first and the third quarters.\nRaleigh/Durham posted a second quarter annual demand at 142% of its five-year average, while Charlotte and Atlanta second quarter annual demand topped 162% and 161% of their five-year averages respectively.\nWe remain in active negotiations, pursuing additional opportunities and would like to tie up another $200 million in multifamily assets that we expect can now be completed by early 2022.\nYear-over-year effective rents climbed 640 basis points from June to September.\nSuburban Virginia's performance followed a similar pattern, but with even stronger growth with year-over-year effective rent growth accelerating to 9.7% in September.\nOur DC portfolio is positioned well with 80% of our portfolio in Northern Virginia where the rapidly expanding consumer technology sector continues to drive job and income growth.\nNew lease rate growth was 9% for leases signed in September and 11% for leases signed thus far in October on an effective basis.\nOn the renewal side there has been very strong demand and the renewal lease rate growth was over 6% for September renewals and over 7% for October renewals on an effective basis.\nTotal concessions for September move-ins declined over 95% compared to June move-ins driven by both a decline in the number of new leases with concessions and a decline in the average concession amount per lease.\nThe percentage of new leases with concessions declined from an average level of 60% during the first half of the year to only 9% of new leases for September move-ins.\nThe average concession value for new leases where concessions were granted, declined by 60% from $1300 for June move-ins to approximately $560 per home for September move-ins.\nSame-store average occupancy grew 40 basis points in October, compared to the third quarter.\nBlended lease rate growth was 7% for leases signed in September and over 8% for leases signed in October on an effective basis which represents a significant increase in the third quarter average.\nFor move-ins that took place during the third quarter, blended lease rate growth was 3.5% on average on an effective basis, representing a 620 basis point increase from the second quarter.\nSpecifically, the average effective rent for new leases in the third quarter was above the same month in 2019 for 17 of our 21 same-store properties.\nIn fact, new leases for our suburban portfolio were 10% above the 2019 level on average in the third quarter, highlighting how well our suburban properties performed during the pandemic.\nOur ability to capture this embedded growth will be slower during the winter months, as less than 25% of our leases expire between November and December.\nTrove lease-up momentum continues and it is now over 85% occupied.\nWe expect Trove to be a key growth driver adding approximately $7 million of NOI in 2022 and $7.6 million of NOI in 2023.\nWe also continued to monitor demand levels at Riverside, where we have a shovel-ready opportunity to add 767 units which we put on hold when COVID hit.\nWe have a pipeline of approximately 2,700 units in our same-store portfolio.\nYear-to-date we have fully renovated over 130 units and have invested capital in upgrading 110 additional units.\nWe expect to spend $3 million in our renovation program this year ramping up to approximately $7.50 million to $8 million next year for the current same-store portfolio.\nAnd overall this adjustment has increased our NOI margin by 300 to 400 basis points.\nAll of these adjustments are described in detail on page 14 of the third quarter earnings package.\nNet income for the third quarter of 2021 was approximately $31 million or $0.37 per diluted share compared to a net loss of $1 million or $0.01 per diluted share in the prior year.\nCore FFO was $0.20 per diluted share reflecting a year-over-year decline of $0.16 due to the impact of our commercial asset sales.\nMultifamily same-store NOI declined 40 basis points compared to the prior year driven by the impact of leases signed during the pandemic.\nExcluding the impact of amortization related to concessions granted in prior periods same-store multifamily NOI increased 2% on a year-over-year basis during the third quarter.\nWe collected 99% of multifamily rents during the third quarter and received $400,000 of local government rent assistance from residents.\nYear-to-date residents have received over $1.4 million of rental assistance.\nOther NOI which represents Watergate 600 declined 4.9% in the third quarter compared to the prior year primarily due to higher taxes and payroll expenses and a favorable bad debt recovery in the prior year period.\nLeasing activity at Watergate 600 has been steady, despite the challenging environment of the DC office market.\nWe signed an 8200 square foot new lease with a credit tenant during the quarter and two renewals and one expansion post quarter end.\nOur percentage leased has increased to 92% and we have activity to allow us to create further value in the asset.\nThis one remaining office asset is an iconic building with Riverfront and monument views, high-quality institutional tenants and a weighted average lease term of eight years and we continue to see opportunity to create value by owning and leasing Watergate 600.\nWe are reinstating full year 2021 guidance with a core FFO range of $1.05 per share to $1.08 per share.\nWe estimate that our same-store multifamily portfolio will contribute between 90 and $90.5 million of NOI for the year.\nAt the midpoint this implies an approximate 4.5% multifamily growth rate for the fourth quarter compared to the prior year period.\nTrove and The Oxford are expected to contribute between $3.75 million and $4.25 million of 2021 NOI.\nWatergate 600 is expected to contribute approximately $12.75 million of NOI.\nWe completed the sale of the office portfolio on July 26th for gross proceeds of $766 million and completed the sale of retail portfolio on September 22nd for gross proceeds of $168.3 million.\nAs we've discussed, we entered into binding agreements to acquire two communities in the Atlanta market for $106 million and are moving toward an additional binding agreement for another property $97 million.\nWe redeemed all $300 million of senior unsecured notes that previously were scheduled to mature in 2022 on August 26 and repaid $150 million of amounts outstanding under the term loan maturing in 2023 on September 27.\nWe ended the quarter with a very low net debt to EBITDA ratio of 1.4 times.\nAnd our equity versus debt ratio is expected to get close to 80% to 20% which will be very strong.\nWe currently have approximately $1 billion of liquidity including the full availability of our $700 million line of credit, which we further extended another four years this quarter.", "summaries": "Core FFO was $0.20 per diluted share reflecting a year-over-year decline of $0.16 due to the impact of our commercial asset sales.\nWe are reinstating full year 2021 guidance with a core FFO range of $1.05 per share to $1.08 per share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In addition, The Toro Foundation contributed $500,000 to organizations supporting families and communities most directly affected by the pandemic.\nOur results this quarter were net sales sales of $929 million, down 3.4% from the prior year, primarily due to reduced Professional segment retail demand as a result of COVID-19.\nWe reported adjusted diluted earnings per share of $0.92, down 21.4% from the prior year.\nTo provide specific information by business segments, in the Professional segment, total net sales were $661 million, down 8.6%.\nIn the Residential segment, sales were up 12.9% in the second quarter.\nRegarding operations, all of our facilities are currently open with some operating at reduced capacity.\nWe reported net sales of $929 million in the quarter, a 3.4% decrease from the second quarter of fiscal 2019.\nDiluted earnings per share was $0.91 for the quarter compared to $1.07 last year.\nAdjusted diluted earnings per share was $0.92, down 21.4% compared to the second quarter of fiscal 2019.\nFor the first six months of fiscal 2020, net sales increased 8.4%.\nDiluted earnings per share was $1.55 compared to $1.62 in the first six months of fiscal 2019.\nYear-to-date adjusted diluted earnings per share was $1.56 compared to $1.69 a year ago.\nBack in March, we entered into a three-year term loan agreement for $190 million.\nWith the funding of this new term loan, the company now has liquidity of approximately $800 million including cash and cash equivalents of $200 million and availability under our revolving credit facility of approximately $600 million.\nFor the second quarter, Professional segment net sales decreased 8.6% to $661 million.\nThe top line benefited from the Charles Machine Works and Venture Products acquisitions which together added incremental net sales of $142 million.\nFor the year-to-date period of fiscal 2020, net sales increased 6.6% compared to the same period of fiscal 2019.\nProfessional segment operating earnings for the second quarter decreased 29.2% to $106 million, reflecting a 460 basis point decline in segment operating earnings as a percent of sales, primarily due to manufacturing variance as a result of COVID-19 related facility closures and social distancing initiatives, incremental marketing, engineering and administrative costs as a result of the Charles Machine Works and Venture Products acquisitions, higher warranty expense and unfavorable product mix.\nYear-to-date Professional segment operating earnings declined 12.3% compared to the same period in the prior fiscal year.\nProfessional segment operating earnings decreased 360 basis points to 16.6%.\nResidential segment net sales for the second quarter were up 12.9% $262 million, mainly driven by incremental shipments of zero turn riding and walk power mowers to the expanded mass retail channel as well as strong retail demand.\nYear-to-date fiscal 2020 net sales increased 13.4% compared to the same period of fiscal 2019.\nResidential segment operating earnings were up 68.5% to $37 million.\nThis reflects a 470 basis point year-over-year increase in segment operating earnings to 14.2%.\nYear-to-date Residential segment operating earnings increased 67.2% to $58.7 million.\nOn a percent of sales basis, segment earnings increased 440 basis points to 13.7%.\nWe reported gross margin for the second quarter of 33%, a decrease of 40 basis points over the prior year period.\nExcluding acquisition-related charges and one-time costs associated with the inventory writedown of the Toro branded underground business, adjusted gross margin decreased 100 basis points to 33.4%.\nFor the first six months of fiscal 2020, gross margin was 35.1% compared with 34.3% in the prior year period.\nAdjusted gross margin was 35.3% compared with 34.9% in the first six months of fiscal 2019.\nSG&A expense as a percent of sales increased 40 basis points to 19.5% for the quarter due to incremental marketing and engineering costs as a result of the Professional segment acquisitions as well as higher warranty expense.\nSG&A expense as a percent of sales for the first six months of fiscal 2020 was 22.3%, up 130 basis points from the prior year period.\nOperating earnings as a percent of net sales decreased 80 basis points to 13.5% for the second quarter.\nAdjusted operating earnings as a percent of net sales decreased 240 basis points to 14%.\nFor the first six months of fiscal 2020, operating earnings as a percent of net sales were 12.8% compared to 13.3% a year ago.\nAdjusted operating earnings as a percent of net sales for the first six months of fiscal 2020 were 13.1% compared with 14.7% a year ago.\nInterest expense increased $2 million and $5.4 million for the second quarter and year-to-date, respectively, compared to a year ago.\nFor the full year, we anticipate interest expense of about [Phonetic] $34 million.\nThe effective tax rate was 18.9% for the second quarter and the adjusted effective tax rate was 20%.\nFor the first six months of fiscal 2020, the effective tax rate was 18.8% and the adjusted effective tax rate was 20.4%.\nFor the full year, we anticipate an adjusted effective tax rate of about [Phonetic] 20.5%.\nAccounts receivable totaled $400 million.\nThis was down 6.6% from a year ago as a result of lower professional segment sales at the end of the second quarter, driven by reduced demand due to COVID-19.\nInventory was up 16.8% to $714 million from a year ago, primarily due to higher finished goods in our Professional segment due to COVID-19 related sales reduction, increased raw materials and work in process as a result of production downtime due to facility closures and production inefficiencies and incremental inventories from Venture Products.\nAccounts payable decreased 16.4% to $327 million from a year ago.\nWe expect depreciation and amortization for fiscal 2020 of about $100 million which includes approximately $3 million of fair value step-up related to the acquired inventory from Venture Products.\nWe are now estimating lower capital expenditures of $80 million versus our prior expectation of $100 million.\nAs a result of the many and evolving COVID-19 related factors we discussed today and more that could emerge, should the current economic climate extend for a prolonged period, we do not have the ability to predict its impact on our businesses and financial results.\nAt this point, based on current information regarding the global economic outlook, the company expects the most pronounced year-over-year sales and earnings per share percentage declines in the third quarter of fiscal 2020.\nWe also expect negative year-over-year fourth quarter sales and earnings per share growth.", "summaries": "We reported adjusted diluted earnings per share of $0.92, down 21.4% from the prior year.\nRegarding operations, all of our facilities are currently open with some operating at reduced capacity.\nDiluted earnings per share was $0.91 for the quarter compared to $1.07 last year.\nAdjusted diluted earnings per share was $0.92, down 21.4% compared to the second quarter of fiscal 2019.\nAs a result of the many and evolving COVID-19 related factors we discussed today and more that could emerge, should the current economic climate extend for a prolonged period, we do not have the ability to predict its impact on our businesses and financial results.\nAt this point, based on current information regarding the global economic outlook, the company expects the most pronounced year-over-year sales and earnings per share percentage declines in the third quarter of fiscal 2020.\nWe also expect negative year-over-year fourth quarter sales and earnings per share growth.", "labels": "0\n0\n1\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1"}
{"doc": "In the quarter, we recognized a cumulative year-to-date benefit from these regulations of $202 million or $0.28 per share compared to our previous run rate.\nTurning to our operations starting with Aflac Japan, the effects of COVID-19 continues noticeably impacted our results, as seen in the third quarter, with sales decreasing 32%.\nWe continue to have around 50% of the workforce working from home in Japan and in September, traffic coming into the shops remained at 70% of pre-pandemic levels.\nThe effects of COVID-19 continued to noticeably impact our results in this segment as well, largely due to the reduced face-to-face activity, third quarter sales were down 35.7%.\nAs a result we have achieved an approximate 9% reduction in our US and corporate workforce with expected one-time expenses of $45 million in the fourth quarter.\nAt the same time we have remained tactical in our approach to share repurchase, buying back $400 million of our shares in the third quarter.\nThere are currently approximately 97,000 COVID-19 cases and 1,730 deaths in all of Japan.\nThrough the third quarter Aflac Japan COVID-19 impact totaled 1,750 unique claimants with incurred claims totaling approximately JPY550 million in the quarter and JPY760 million year-to-date.\nCOVID related expenses in the quarter totaled JPY1.7 billion, which included the rollout of virtual distribution tools, employee teller working equipment and distribution support.\nCOVID-19 case levels in the US now exceed 8.5 million with deaths nearing 230,000.\nThrough the end of the third quarter, COVID-19 claimants in the US totaled 12,800 with incurred claims of approximately $23 million in the quarter and year-to-date approximately $57 million.\nThis effort involved connecting with 2.7 million accident and hospital policyholders through a combination of email and direct mail in the month of August.\nThese executive orders are still in place in 13 states as of the end of the quarter.\nThis is a three year, and roughly JPY10 billion investment with approximately JPY2 billion spent in the third quarter, along with another JPY3.6 billion estimated spend in the fourth quarter.\nWhile elevating our 2020 expenses, this effort will reduce the production and circulation of 80 million pieces of paper per year with run rate savings in the range of JPY3 billion annually.\nThis includes 50% of our 2020 annual advertising spend, concentrated in the quarter to raise new product awareness as well as a stepped up level of investment in the paperless initiative.\nWe have successfully filed our new network products in 48 states with approvals received in 37 states.\nWe are up and running with sales in 10 states and expect to ramp this up as we move into 2021.\nHorizon one is near term focused and includes a series of actions in 2020 designed to take out approximately $100 million of annualized run rate expenses as we enter 2021.\nEarly in the fourth quarter, we completed a voluntary separation plan for eligible employees, which will result in a 9% reduction to our US workforce.\nWe expect to record a one-time separation expense of approximately $45 million in the fourth quarter and we will realize annualized run rate savings in the $45 million to $50 million range.\nIn addition, we are completing a broader digital roadmap, which includes approximately $25 million of accelerated investment in 2020.\nThese build efforts include dental and vision, direct to consumer and Group benefits and taken together impacted our expense ratio in the third quarter by 110 basis points, and are expected to impact the fourth quarter by approximately 160 basis points.\nFor the third quarter adjusted earnings per share increased 19.8% to $1.39 with no significant impact from FX in the quarter.\nAdjusted book value per share including foreign currency translation gains and losses grew 17.4% and the adjusted ROE excluding foreign currency impact was a strong 16.8%, a material spread to our cost of capital.\nIn the quarter, we recognized a cumulative year-to-date benefit from these regulations, which lowered our tax rate on adjusted earnings for the quarter to 4.1%, a benefit of $0.28 versus our previous run rate.\nOur tax rate for the quarter further benefited from tax credits in our solar and historic rehabilitation investments which lowered our tax expense by approximately $20 million more than in a normal quarter.\nIn addition, variable investment income came in $6 million above our long-term return expectations and together these two items boosted current quarter earnings per share by about $0.03.\nWhen I go-forward basis, and under the current US corporate tax regime, we would expect our go-forward tax rate on adjusted earnings to be approximately 20%.\nTotal earned premium for the quarter declined 3.3%, reflecting mainly first sector policies pay up impacts while earned premium put a third sector product was down 1.7%.\nFor example, year-over-year, earned premium was down 3.3% in the quarter while policies in force was down -- were down a little less than 1%.\nJapan's total benefit ratio came in at 71.3% for the quarter, up 130 basis points year-over-year and the third sector benefit ratio was 61.7%, up 170 basis points year-over-year.\nWe did experience all of this in the third quarter, manifested by our persistency improving by 80 basis points year-over-year.\nOur expense ratio in Japan was 21.7%, up 110 basis points year-over-year.\nOverall, when considering COVID related spend, promotional spend and digital and paperless initiatives, we anticipate expense ratios in Japan to remain elevated in the 22% range for the remainder of 2020.\nNet investment income declined 0.2% in yen terms, despite the higher variable investment income, as our yen denominated portfolio generated lower yields, due to lower coal income in this quarter.\nThe pre-tax margin for Japan in the quarter was 19.4% impacted by both the higher benefit ratio as well as a higher expense ratio in the quarter.\nEarned premium was down 2.6% due to weaker sales results.\nPremium persistency improved 80 basis points to 78.8% as our efforts to retain accounts in key premium in-force show early positive results.\nAs Fred mentioned, there are still 13 states with premium grace periods in place at the end of Q3.\nOur total benefit ratio came in at 48.3%, which was 80 basis points lower than Q3 2019.\nWe estimate this initiative drove incremental claims of approximately $14 million and impacted our benefit ratio in the range of 100 basis points over what we would normally expect.\nOur expense ratio in the US was 37.3%, up 130 basis points year-over-year.\nThe inclusion of Argus added 80 basis points in the quarter and a decline in revenues, roughly explains the residual year-over-year impact.\nWe anticipate expense ratios in the US to remain elevated in the 39% range for the full year 2020, driven by near term weakness in revenue, uptick in seasonal business activity and expected inclusion of the Zurich Group Benefits acquisition.\nNet investment income in the US was down 4.4%, due to a 14 basis points contraction in portfolio yield year-over-year.\nProfitability in the US segment remains healthy at 20.5% with a low benefit ratio as the core driver.\nIn our corporate segment, amortized hedge income contributed $22 million on a pre-tax basis to the quarter's earnings with an ending notional position of $5 billion.\nOur capital position remains strong and we ended the quarter with an SMR north of 900% in Japan and an RBC of approximately 700% in Aflac Columbus.\nWe still expect to end the year with an RBC in the range of 550% to 600%.\nHolding company liquidity stood at $3.8 billion, $1.8 billion above our minimum balance.\nLeverage improved to a comfortable 22.9% due to the increase in shareholders' equity driven by the release of the tax valuation allowance of $1.4 billion.\nIn the quarter, we repurchased $400 million of our own stock and paid dividends of $192 million.", "summaries": "We expect to record a one-time separation expense of approximately $45 million in the fourth quarter and we will realize annualized run rate savings in the $45 million to $50 million range.\nFor the third quarter adjusted earnings per share increased 19.8% to $1.39 with no significant impact from FX in the quarter.\nTotal earned premium for the quarter declined 3.3%, reflecting mainly first sector policies pay up impacts while earned premium put a third sector product was down 1.7%.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In total, we invested approximately $248 million in response to the pandemic in 2020, including about $167 million in appreciation bonuses for eligible front-line employees to demonstrate our appreciation for their exceptional performance during an incredibly challenging year.\nAt Dollar General, we remain committed to being part of the solution, and believe we are uniquely positioned to continue supporting our customers through our network of more than 17,000 stores located within five miles of approximately 75% of U.S. population.\nSimilar to our larger footprint, DGP concept, the first new format has selling space of approximately 8,500 square feet, which compares to about 7,300 square feet of selling space for our traditional store.\nOur second new format is even larger with approximately 9,500 square selling feet, and will be deployed opportunistically across new store relocation and remodel opportunities.\nIn total, fourth quarter net sales increased 17.6% to $8.4 billion, primarily driven by comp sales growth of 12.7%.\nOnce again, this quarter, we increased our market share in highly consumable product sales, as measured by syndicated data, driven by a meaningful increase in both units and dollars.\nWe're particularly pleased that we delivered significant operating margin expansion, which contributed the fourth quarter diluted earnings per share of $2.62, an increase of 24.8% over the prior year.\nFor the full year, net sales increased 21.6% to $33.7 billion, including net sales growth of 28.1% in our combined non-consumable categories.\nComp sales for the year increased 16.3%, representing our 31st consecutive year of same-store sales growth.\nIn 2020, we celebrated the opening of our 17,000 store and the launch of our newest store concept pOpshelf.\nIn total, we completed a record 2,780 real estate projects during the year, exceeding our initial target of 2,580 projects as we continue to build and strengthen the foundation for future growth.\nGross profit as a percentage of sales was 32.5% in the fourth quarter, an increase of 77 basis points, which represents our seventh consecutive quarter of year-over-year gross margin rate expansion.\nSG&A as a percentage of sales was 22.2%, an increase of 48 basis points.\nOperating profit for the fourth quarter increased 21% to $872 million.\nAs a percent of sales, operating profit was 10.4%, an increase of 30 basis points.\nThe benefit from higher sales was partially offset by approximately $96 million or 110 basis points of incremental investments that we made in response to the pandemic, including approximately $69 million in appreciation bonuses for eligible frontline employees and additional measures taken to further protect our employees and customers.\nOur effective tax rate for the quarter was 22.7% and compares to 23% in the fourth quarter last year.\nFinally, as Todd noted earlier, earnings per share for the fourth quarter increased 24.8% to $2.62, which contributed to full year earnings per share of $10.62, an increase of 59.9%.\nMerchandise inventories were $5.2 billion at the end of the year, an increase of 12.2% overall and 6.3% on a per-store basis.\nIn 2020, we generated significant cash flow from operations totaling $3.9 billion, an increase of $1.6 billion or 73.2%.\nTotal capital expenditures for the year were $1 billion and included our planned investments in new stores, remodels and relocations, distribution and transportation projects and spending related to our strategic initiatives.\nDuring the quarter, we repurchased 4.3 million shares of our common stock for $900 million and paid a quarterly dividend of $0.36 per common share outstanding at a total cost of $87 million.\nWith today's announcement of an incremental share repurchase authorization, we have remaining authorization of approximately $2.4 billion under the repurchase program.\nWe also remain committed to returning significant cash to shareholders through anticipated share repurchases and quarterly dividend payments, all while maintaining our current investment-grade credit rating and managing to a leverage ratio of approximately 3 times adjusted debt to EBITDA.\nWith this in mind, we currently expect the following for 2021: net sales in the range of a 2% decline to flat; a same-store sales decline of 4% to 6% but which reflects growth of approximately 10% to 12% on a two-year stack basis; and earnings per share in the range of $8.80 to $9.50, which reflects a compound annual growth rate between 15% and 20% or between 14% and 19% on an adjusted basis over a two-year period, which is well above our long-term goal of delivering at least 10% annual earnings per share growth on an adjusted basis.\nOur earnings per share guidance assumes an effective tax rate in the range of 22% to 23%.\nCapital spending is expected to be in the range of $1.05 billion to $1.15 billion as we continue to invest in our strategic initiatives and core business to support and drive future growth.\nWe also plan to repurchase a total of approximately $1.8 billion of our common stock this year, reflecting our strong liquidity position and confidence about the long-term growth opportunity for our business.\nDespite approximately 8,400 lost store operating days as a result of closures due to winter weather across the country, same-store sales for the month of February increased 5.7%, reflecting a healthy comp sales increase of 11.2% on a two-year stack basis.\nFrom the end of February through March 16, comp sales decreased approximately 16% as we are in the midst of lapping our most difficult monthly comp sales comparison of the year.\nAs a reminder, comp sales growth for the month of March in 2020 was 34.5%.\nAlso, please keep in mind that the second and third quarters represent the most challenging laps of the year from a gross profit rate perspective, following improvements of 167 basis points in Q2 2020 and 178 basis points in Q3 2020.\nHowever, the leverage from these reduced costs is expected to be offset by deleverage associated with lower comp sales and approximately $60 million to $70 million in incremental year-over-year investments related to our strategic initiatives as we further their rollouts.\nFinally, we estimate operating profit will be negatively impacted by approximately $35 million to $40 million in Q1 as a result of lost sales from storage closures and expenses related to the widespread winter weather that we experienced in February.\nThe NCI offering was available in more than 5,800 stores at the end of 2020, including nearly 400 stores in our light version.\nThis compares to our prior expectation of more than 5,600 stores at year-end.\nGiven our strong performance to-date, we plan to expand this offering to about 5,700 additional stores this year, bringing the total number of NCI stores to more than 11,000 by year-end.\nThis total includes over 2,100 stores in our light version, which incorporates a vast majority of the NCI assortment but through a more streamlined approach.\npOpshelf aims to engage customers by offering a fun, affordable and differentiated treasure hunt experience delivered through continually refreshed merchandise, a differentiated in-store experience and exceptional value with about 95% of our items priced at $5 or less.\nIn fact, we are now targeting to have a total of up to 50 pOpshelf stores opened by year-end compared to our previous goal of about 30 total locations.\nIn addition to these stores, we also plan to incorporate this concept in up to 25 Dollar General stores in 2021.\nWe are pleased with the success we are seeing on this front, driven by higher overall in-stock levels and the introduction of new products in select stores being serviced by DG Fresh.\nAnd while produce is not included in our initial rollout plans, we believe DG Fresh provides a potential path forward to expanding our produce offering to more than 10,000 stores over time as we look to further capitalize on our extensive self-distribution capabilities.\nIn total, we were self-distributing to more than 16,000 stores from 10 facilities at the end of 2020.\nThis compares to our previous expectation of over 14,000 stores at year-end.\nDuring 2020, we added more than 62,000 cooler doors across our store base.\nIn total, we expect to install more than 65,000 cooler doors in 2021 as we continue to build on our multiyear track record for growth in cooler doors and associated sales.\nThis convenient customer package pickup and dropoff service is now available in over 8,500 stores, with plans to be in a total of over 9,500 stores by year-end, further advancing our long track record of serving rural communities.\nWith regards to our supply chain, our plans for 2021 include further expansion of our private fleet, which accounted for more than 20% of our outbound fleet at the end of 2020.\nIn 2020, we completed a total of 2,780 real estate projects, including 1,000 new stores, 1,670 remodels and 110 relocations.\nAdditionally, we now have produce in more than 1,100 stores.\nFor 2021, we expect to open 1,050 new stores, remodel 1,750 stores and relocate 100 stores, representing 2,900 real estate projects in total.\nWe also plan to add produce in approximately 700 stores, bringing the total number of stores that carry produce to more than 1,800.\nWith about 8,500 square feet of selling space, both our first new format and DGP concept allow for expanded higher capacity cooler counts, an extended queue line and a broader product assortment, including NCI, a larger health and beauty section and produce in select stores.\nIn total, we expect more than 550 of our overall real estate projects this year to be in one of these format types as we look to further enhance our value and convenience proposition, particularly in rural America.\nThe second new format consists of about 9,500 square feet of selling space.\nIn addition to an extended queue line and broader assortment, this larger layout also includes nearly 50 high-capacity coolers and expanded produce offering, fresh meat and additional checkout lanes, including a self-checkout bullpen with multiple stations.\nWe believe this even larger format better positions us to meet the growing needs of our customers, particularly in highly underserved markets, and we are targeting more than 100 locations by year-end.\nThrough a combination of our growing relevance with customers, format innovation, an evolving retail landscape and leveraging new technologies, we estimate there are now approximately 13,000 additional small-box store opportunities in the Continental U.S. which are available for a Dollar General store.\nThis compares to our prior estimate of nearly 12,000 opportunities and is inclusive of our 2021 new unit pipeline.\nAnd while we continue to evaluate, we currently estimate pOpshelf could add approximately 3,000 additional store opportunities in the Continental U.S., with about another 1,000 additional opportunities available for our smaller footprint DGX format.\nWhen taken together, we estimate there are a total of approximately 17,000 new store opportunities available across our format types which we believe represents a long runway for new unit growth.\nWe made significant progress in 2020, highlighted by the accelerated rollout of DG Pickup, our Buy Online Pick Up In-store offering to more than 17,000 stores providing another convenient access point for those seeking a more contactless shopping experience.\nmobile checkout and our mobile app, which ended the year with nearly 4 million monthly active users.\nSelf-checkout was available in more than 1,600 stores at the end of 2020, with plans for an aggressive expansion as we move ahead.\nIn fact, more than 12,000 of our current store managers are internal promotes, and we continue to innovate on the development opportunities we can offer our teams, including continued expansion of our private fleet and those associated with DG Fresh as well as pOpshelf.\nIn addition, we transitioned to a virtual learning environment in 2020, resulting in the continued development of our people, including nearly 3 million training hours for our employees, all supported by our award-winning training and development programs.", "summaries": "In total, fourth quarter net sales increased 17.6% to $8.4 billion, primarily driven by comp sales growth of 12.7%.\nOnce again, this quarter, we increased our market share in highly consumable product sales, as measured by syndicated data, driven by a meaningful increase in both units and dollars.\nWe're particularly pleased that we delivered significant operating margin expansion, which contributed the fourth quarter diluted earnings per share of $2.62, an increase of 24.8% over the prior year.\nFinally, as Todd noted earlier, earnings per share for the fourth quarter increased 24.8% to $2.62, which contributed to full year earnings per share of $10.62, an increase of 59.9%.\nMerchandise inventories were $5.2 billion at the end of the year, an increase of 12.2% overall and 6.3% on a per-store basis.\nWith this in mind, we currently expect the following for 2021: net sales in the range of a 2% decline to flat; a same-store sales decline of 4% to 6% but which reflects growth of approximately 10% to 12% on a two-year stack basis; and earnings per share in the range of $8.80 to $9.50, which reflects a compound annual growth rate between 15% and 20% or between 14% and 19% on an adjusted basis over a two-year period, which is well above our long-term goal of delivering at least 10% annual earnings per share growth on an adjusted basis.\nCapital spending is expected to be in the range of $1.05 billion to $1.15 billion as we continue to invest in our strategic initiatives and core business to support and drive future growth.\nWe also plan to repurchase a total of approximately $1.8 billion of our common stock this year, reflecting our strong liquidity position and confidence about the long-term growth opportunity for our business.\nDespite approximately 8,400 lost store operating days as a result of closures due to winter weather across the country, same-store sales for the month of February increased 5.7%, reflecting a healthy comp sales increase of 11.2% on a two-year stack basis.\nFrom the end of February through March 16, comp sales decreased approximately 16% as we are in the midst of lapping our most difficult monthly comp sales comparison of the year.\nWe are pleased with the success we are seeing on this front, driven by higher overall in-stock levels and the introduction of new products in select stores being serviced by DG Fresh.\nFor 2021, we expect to open 1,050 new stores, remodel 1,750 stores and relocate 100 stores, representing 2,900 real estate projects in total.", "labels": 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{"doc": "We expanded operating margins by 220 basis points and ended the quarter with backlog of $11.3 billion, up 8% versus last year.\nSales for the quarter were up 15%, driven by growth across our LMR, video security and command center software technologies.\nAnd the segment also finished with operating margins up 310 basis points versus last year.\nOur Q1 results included revenue of $1.8 billion, up 7%, including $48 million from acquisitions and $32 million from favorable currency.\nGAAP operating earnings of $298 million and operating margins of 16.8% of sales compared to 15.6% in the year ago quarter.\nNon-GAAP operating earnings of $411 million, up $64 million or 18%, and non-GAAP operating margins of 23.2% of sales, up from 21%, driven by higher sales and improved operating leverage in both segments.\nGAAP earnings per share of $1.41 compared to $1.12 in the year ago quarter.\nNon-GAAP earnings per share of $1.87 compared to $1.49 last year, primarily due to higher sales and improved operating leverage in both segments, higher pension income and a lower diluted share count, partially offset by a higher effective tax rate.\nopex in Q1 was $455 million, up $4 million versus last year, primarily due to costs related to acquisitions, partially offset by lower discretionary spend.\nOur Q1 operating cash flow was $370 million compared with $308 million in the prior year, and free cash flow was $318 million compared with $260 million in the prior year.\nCapital allocation for Q1 included $170 million of share repurchases at an average price of $175.53, $121 million in cash dividends and $52 million of capex.\nDuring the quarter, we entered into a new five year $2.25 billion revolving credit facility, replacing our prior $2.2 billion facility.\nAnd subsequent to quarter end, the Board of Directors approved a $2 billion increase to the share repurchase program.\nQ1 Products and Systems Integration sales were $1 billion, up 2%, primarily driven by growth in video security and professional and commercial radio, partially offset by lower sales of public safety LMR, which were impacted by supply constraints.\nRevenue from acquisitions in the quarter was $35 million.\nOperating earnings were $131 million or 12.9% of sales, up from 12.4% in the year prior on higher sales and improved leverage.\nSome notable Q1 wins and achievements in this segment include a $300 million frame agreement with the German MOD to meet their TETRA LMR requirements with an initial order of $154 million recorded in Q1.\n$72 million of video sales with government customers, up 32% from last year.\nA $37 million P25 upgrade for a government agency in Canada.\nA $33 million TETRA upgrade for a large customer in Europe.\nAnd a $12 million P25 order with a large U.S. federal customer.\nQ1 revenue was $758 million, up 15% from last year, driven by growth in LMR services, video security and command center software.\nRevenue from acquisitions in the quarter was $13 million.\nOperating earnings were $280 million or 36.9% of sales, up 310 basis points from last year, driven by higher sales, higher gross margins and improved leverage.\nSome notable Q1 wins in the segment include, over $40 million of orders for P25 services, upgrades and body-worn cameras with Nashville, Tennessee.\nA $35 million push-to-talk over broadband multiyear contract with a large U.S. customer, a $22 million P25 and push-to-talk over broadband contract from a large middle eastern customer.\nThe $13 million of body-worn cameras with multiple U.K. customers and our largest cloud-based command center software win to date.\nA $5 million contract with St. Lucie, Florida.\nNorth America Q1 revenue was $1.2 billion, up 6% on growth in LMR, video security and command center software.\nInternational Q1 revenue of $588 million, was up 9%, with growth in EMEA, Asia Pac and Latin America.\nEnding backlog was a Q1 record of $11.3 billion, up $866 million compared to last year, driven by $639 million of growth in North America and $227 million of growth internationally.\nSequentially, backlog was down $130 million, driven by revenue recognition on the Airwave and ESN contracts, partially offset with international growth in LMR products.\nSoftware and Services backlog was up $548 million compared to last year, driven by $491 million of growth in multiyear LMR services and command center software contracts in North America, and $58 million of international software growth.\nSequentially, backlog was down $269 million, also driven by revenue recognition for Airwave and ESN.\nProducts and SI backlog was $318 million compared -- up $318 million compared to last year.\nSequentially, backlog was up $139 million, driven by international LMR growth.\nWe expect Q2 sales to be up between 19% and 20%, with non-GAAP earnings per share between $1.90 and $1.95 per share.\nThis assumes FX at current spot rates, weighted average diluted share count of approximately 173 million shares and an effective tax rate of 23% to 24%.\nAnd for the full year, we now expect sales to be up between 8% and 9%, an increase from our prior guide of 7.25% to 8%.\nAnd we expect full year non-GAAP earnings per share between $8.70 and $8.80 per share, up from our prior guidance of $8.50 to $8.62 per share.\nA weighted average diluted share count of 173 million shares and an effective tax rate of 22.5% to 23%.\nWe also announced today that the Board approved a $2 billion increase to our share repurchase program.\nAnd we now expect full year growth to be 20% plus, up from the high teens we referenced on our last call.\nIn fixed video, which makes up approximately 70% of the total video security revenue, our investments in AI analytics, cloud services, access control and NDAA-compliant manufacturing is differentiating us from our competitors and driving growth faster than the overall market.\nAdditionally, during the quarter, we announced two new offerings, the integration of our V300 body-worn camera with our APX P25 radios, which allow us to leverage our market-leading LMR installed base and our $49 per month body-worn camera as a service offering, which offers every police agency in the U.S. with affordable access to a video solution that's fully integrated with our command central software suite.\nToday, almost half our revenue is generated from these higher growth areas, up from 20% five years ago, and our addressable market has tripled over that same period of time.", "summaries": "We expanded operating margins by 220 basis points and ended the quarter with backlog of $11.3 billion, up 8% versus last year.\nOur Q1 results included revenue of $1.8 billion, up 7%, including $48 million from acquisitions and $32 million from favorable currency.\nGAAP earnings per share of $1.41 compared to $1.12 in the year ago quarter.\nNon-GAAP earnings per share of $1.87 compared to $1.49 last year, primarily due to higher sales and improved operating leverage in both segments, higher pension income and a lower diluted share count, partially offset by a higher effective tax rate.\nEnding backlog was a Q1 record of $11.3 billion, up $866 million compared to last year, driven by $639 million of growth in North America and $227 million of growth internationally.\nWe expect Q2 sales to be up between 19% and 20%, with non-GAAP earnings per share between $1.90 and $1.95 per share.\nAnd for the full year, we now expect sales to be up between 8% and 9%, an increase from our prior guide of 7.25% to 8%.\nAnd we expect full year non-GAAP earnings per share between $8.70 and $8.80 per share, up from our prior guidance of $8.50 to $8.62 per share.", "labels": "1\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "Year-to-date, we saw economic earnings increase by roughly $25 million, up nearly 24% over the same period in 2020, reflecting strong performance in both our utility and nonutility businesses.\nNatural gas remains in strong demand across New Jersey, with our utilities adding more than 11,000 new customers in the last 12 months alone.\nAlso in April, we announced an industry-leading commitment to decarbonization, setting an aggressive goal to reduce our operational emissions of consumption 70% by 2030 and 100% by 2040.\nWe also announced commitments to deploy at least 25% of annual capital spend toward sustainability investments moving forward.\nWe were excited to see Atlantic Shores awarded a project to develop 1,500 megawatts of clean, renewable wind energy for our state.\nThis fuel cell, which will be our 30 catamaran is similar to the two Staten Island fuel cells that were brought online in 2020.\nIt's eligible under New York's VDER program, which fixes 75% of revenue.\nIt's supported by an O&M agreement that guarantees 95% availability and long-term offtake agreements with creditworthy anchor customers.\nLike our previous fuel cell investments, SJI received 92% of the ITCs, cash flows and net income.\nOn the regulatory front, as you know, we have requested $742 million in phase three infrastructure modernization investment at South Jersey Gas.\nSecond quarter economic earnings were $2 million compared with a loss of $900,000 for the comparable period a year ago.\nOur utilities contributed second quarter earnings of $3.3 million compared to $3 million last year.\nOur nonutility operations contributed second quarter economic earnings of $8.1 million compared to $5 million last year.\nEnergy management contributed second quarter economic earnings of $7 million compared to $6.3 million last year, primarily reflecting improved asset optimization opportunities as well as fuel management contracts that became operational over the last 12 months.\nEnergy production contributed to second quarter economic earnings loss of $200,000 compared to a loss of $2.4 million last year, primarily reflecting contributions from our fuel cell and solar investments over the past year.\nAnd our midstream segment contributed second quarter earnings of $1.2 million compared to $900,000 last year, reflecting AFUDC related to our PennEast pipeline investment.\nOur other segment contributed a loss in economic earnings of $9.3 million compared to a loss of $8.8 million last year, reflecting an increase in outstanding debt, partially offset by debt repayments and refinancing activity.\nFor the six months year-to-date, economic earnings were $130.9 million compared with $106 million last year, reflecting improved utility and nonutility profitability.\nOur capital expenditures and clean energy investments for the year-to-date were approximately $270 million, with more than 80% of this amount allocated for regulated utility investments in support of utility infrastructure upgrades, system maintenance and customer growth.\nOur GAAP equity to total capitalization improved to approximately 37% as of June 30 compared with approximately 32% at December 31, 2020, reflecting debt and equity financing and repayment of debt using proceeds from asset sales.\nOur non-GAAP equity to total cap, which adjusts for mandatory convertible units and other long-duration debt improved to approximately 45% at June 30 compared with approximately 40% at December 31, 2020.\nWe continue to have ample liquidity at both SJI and our utilities, with $1.18 billion in total cash, credit capacity and available through our equity forward and approximately $1.14 billion available as of June 30.\nTurning now to guidance.\nBased on solid operational performance through the first half of the year, we are reaffirming our expectation for 2021 economic earnings of $1.55 to $1.65 per diluted share.\nOur long-term economic earnings-per-share growth target remains 5% to 8%, with significant step-ups expected in 2023 and 2025, driven by timing associated with utility rate cases and clean energy investments.\nWe're also affirming our 5-year capital expenditures outlook through 2025 of approximately $3.5 billion and our expected 2021 investment of $740 million to $780 million, with $490 million to $510 million for utility investment and $250 million to $270 million for nonutility investment, primarily focused on decarbonization and renewables.", "summaries": "Turning now to guidance.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "Among other accomplishments, we celebrated the addition of store #2000 to our portfolio.\nSame-store occupancy once again reached a new all-time high during the quarter at over 97%, with vacates continuing at lower-than-historic levels.\nAchieved rates to new customers in the quarter were 43% higher than 2020 levels and 41% greater than 2019 levels.\nOther income improved significantly year-over-year, primarily due to increased late fees contributing 30 basis points to revenue growth in the quarter.\nThese drivers produced same-store revenue growth of 18.4%, a 480 basis point acceleration from Q2.\nAnd same-store NOI growth of 27.8%, an acceleration of 760 basis points.\nIn addition, our external growth initiatives produced steady returns outside of the same-store pool, resulting in FFO growth of 41.2%.\nWhile most of our transactions have been in relatively small bites, the total is adding up, allowing us to increase our investment guidance to $700 million for the year.\nWe had an incredibly strong quarter on the third-party management front, adding 96 stores.\nIn the quarter, we purchased 11 of our managed stores in the REIT or in a joint venture for a total of 30 stores purchased from our third-party platform through September.\nFundamentals have remained even stronger than our already positive outlook, allowing us to raise our annual FFO guidance by $0.28 at the midpoint.\nWhile we still assume a seasonal occupancy moderation, it has been less than our initial estimate of 300 basis points from this summer's peak.\nOur revised guidance now assumes a 200 basis point moderation which would result in 2021 year-end occupancy generally similar to that of 2020.\nCore FFO for the quarter was $1.85 per share, a year-over-year increase of 41.2%.\nAs a result of our strong FFO growth, our Board of Directors raised our third quarter dividend an additional 25% after already raising it 11% earlier this year, a total increase of 38.9% over the third quarter 2020 dividend.\nWe delivered a reduction in same-store expenses in the quarter, including a 3% savings in payroll, 42% savings in marketing and a 4% decrease in property taxes due to some successful appeals.\nAnd we completed a successful second offering in the third quarter, issuing another $600 million 10-year bond at a rate of 2.35%.\nWe also refiled our ATM in the quarter, and we have $800 million in availability.\nOur quarter end net debt to EBITDA was 4.5 times, giving us significant dry powder for investment opportunities while maintaining our credit ratings.\nWe raised our same-store revenue range to 12.5% to 13.5%.\nSame-store expense growth was reduced to negative 1% to 0%, resulting in same-store NOI growth range of 18% to 19.5%.\nWe raised our full year core FFO range to be $6.75 to $6.85 per share.\nDue to stronger lease-up performance, we dropped our anticipated dilution from value-add acquisitions and C of O stores from $0.12 to $0.11, even after adding a number of additional lease-up properties to our acquisition pipeline.", "summaries": "These drivers produced same-store revenue growth of 18.4%, a 480 basis point acceleration from Q2.\nCore FFO for the quarter was $1.85 per share, a year-over-year increase of 41.2%.\nWe raised our full year core FFO range to be $6.75 to $6.85 per share.", "labels": "0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "Total company revenue increased 4% sequentially, with top-line improvements across all regions, while adjusted operating income grew 6% with solid margin performance in both divisions.\nOur completion and production division revenue grew 4%, driven by increased global activity.\nOur drilling and evaluation division revenue grew 4%, with increased activity across multiple regions.\nOperating margin of 11% was about flat sequentially.\nNorth America revenue increased 3% as growth in US land was partially offset by a decline in our Gulf of Mexico business due to Hurricane Ito.\nInternational revenue grew 5% sequentially, in line with the international rig count growth.\nOur year-to-date free cash flow generation of almost $900 million puts us solidly on track to deliver our full-year free cash flow objective.\nFinally, we retired $500 million of our long-term debt and ended the quarter with $2.6 billion of cash on hand.\nFor example, in the third quarter, we deployed our Well Construction 4.0 digital solution to deliver further operational efficiencies for our customer in the Middle East.\nPrivate companies now operate about 60% of the US land rig count, and current commodity prices provide a strong incentive for their activity to expand.\nSmartFleet, for the first time, allows operators to measure treatment placement in real time, which, among other things, has demonstrated up to 30% improvement in cluster uniformity.\nIn North America, we expect customer spending to increase in and around 20% next year, including solid net pricing gains.\nThis high-performing solution reduced Chesapeake's emission using over 25 megawatts of lower-carbon power generation from Chesapeake's local field gas.\nEnexor Bioenergy completed a $10 million Series A round of financing.\nWe prioritized profitable growth and returns, remain focused on capital efficiency and are keeping our overall capital investment in the range of 5% to 6% of revenue.\nTotal company revenue for the quarter was $3.9 billion and adjusted operating income was $458 million, an increase of 4% and 6%, respectively.\nDuring the third quarter, Halliburton closed the structured transaction for our North America real estate assets that I described earlier this year, which resulted in a $74 million gain.\nAs a result, among these and other items, we recognized a $12 million pre-tax charge.\nStarting with our completion and production division, revenue was $2.1 billion, an increase of 4%, while operating income was $322 million or an increase of 2%.\nIn our drilling and evaluation division, revenue was $1.7 billion or an increase of 4%, while operating income was $186 million or an increase of 6%.\nIn North America, revenue increased 3%.\nRevenue increased 17% sequentially.\nIn the Middle East/Asia region, revenue increased 2%, resulting from improved well construction activity in the Middle East and Australia.\nIn the third quarter, our corporate and other expense totaled $50 million.\nNet interest expense for the quarter was $116 million.\nIn the third quarter, we retired $500 million of 2021 senior notes using cash on hand.\nOur effective tax rate for the third quarter came in at approximately 24%.\nBased on our anticipated geographic earnings mix, we expect our fourth quarter effective tax rate to be approximately 22%.\nCapital expenditures for the quarter were approximately $190 million.\nIn response to higher demand for our services in both international and North America markets, we are pulling forward spending on long lead time items for our premium equipment and now expect our full-year capital expenditures to be closer to $800 million for the full year.\nWe generated approximately $620 million of cash from operations and almost $470 million of free cash flow during the third quarter.\nAs a result, for our completion and production division, we anticipate mid-single-digit revenue growth sequentially, with operating margins expected to expand by approximately 50 basis points.\nIn our drilling and evaluation division, we anticipate sequential revenue growth of 5% to 7% and a margin increase of 150 to 200 basis points due to seasonal software sales and higher overall global activity.", "summaries": "International revenue grew 5% sequentially, in line with the international rig count growth.\nTotal company revenue for the quarter was $3.9 billion and adjusted operating income was $458 million, an increase of 4% and 6%, respectively.\nStarting with our completion and production division, revenue was $2.1 billion, an increase of 4%, while operating income was $322 million or an increase of 2%.\nIn our drilling and evaluation division, revenue was $1.7 billion or an increase of 4%, while operating income was $186 million or an increase of 6%.\nIn North America, revenue increased 3%.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In addition to developing new policies and procedures to prevent the spread of the virus, we improved our safety performance in 2020 with an approximately 23% reduction in our incident rate compared to 2019.\nWhile this is a significant milestone, as I've stated in the past, we will not be satisfied until this rate reaches 0.\nKarla has demonstrated excellent judgment and leadership in each role she has held since joining Reliance in 1992, and her unique abilities and talents have earned the respect of our employees and shareholders.\nArthur has held various positions in Reliance's finance and accounting department for over 15 years and has done a phenomenal job.\nOur results demonstrate the strength and resiliency of our people and unique business model as well as our ability to execute through both good times and bad given the diversity of our products, end markets and geographies.\nThese factors, combined with pricing discipline and continuous improvements to our value-added processing capabilities, enabled us to achieve our second consecutive year of record annual gross profit margins at 31.5%, up 120 basis points from 2019 and exceeding our estimated sustainable range of 28% to 30%.\nFor the full year, we generated non-GAAP earnings per share of $7.71 as a result of the combination of strong margin discipline and effective expense control, which helped mitigate our decline in profitability.\nOn the heels of a record year in 2019, we maintained strong cash flow from operations of $1.17 billion in 2020 driven by our profitability and focus on working capital management.\nFueled by our ongoing focus on rightsizing our inventory to reflect current demand levels and our differentiating advantage of cross-selling inventory among our family of companies, we achieved our companywide inventory turn goal of 4.7 times based on tons for 2020.\nWe invested $172 million in our business through capital expenditures in 2020, including many growth opportunities such as our recent toll processing expansion in Texas and Kentucky.\nToday, we are introducing our 2021 capital expenditure budget of $245 million that includes new buildings and other projects to expand, upgrade and maintain many of our operating facilities.\nIn 2020, we repurchased $337.3 million worth of our common stock at an average cost of $91.80 per share and paid $164.1 million in dividends to our shareholders.\nWe've maintained our payment of regularly quarterly dividends for 61 consecutive years without ever suspending payment or reducing our dividend rate.\nIn addition, we've increased our dividend 28 times since our 1994 IPO, including the most recent increase of 10% for the first quarter of 2021.\nAs was evident throughout the past year, our customers rely on Reliance to continue to support them through trying times, often in greater capacity and on a more frequent basis.\nAs an essential business, we were able to continue operating throughout the pandemic, with our 2020 tons sold decreasing only 10.8% compared to 2019.\nOur average selling price was down 9.6% in 2020 compared to 2019 due to declining mill prices for most of the products we sell during the first nine months of the year.\nIn the fourth quarter of 2020, healthy demand conditions in the majority of our end markets resulted in our tons sold declining only 1.3% compared to the prior quarter.\nThis was the lowest Q4 seasonal decline we've experienced in the last 10 years and exceeded our guidance by a significant margin.\nSupported by solid demand and rising input costs, metal pricing improved as mill price increases for many of the products we sell accelerated throughout the fourth quarter with prices for certain carbon steel products almost doubling, which led to our average selling price increasing 4.6% compared to the third quarter of 2020, again, exceeding our expectations.\nThe favorable demand and pricing conditions in the fourth quarter contributed to our record gross profit margin of 33%, a 60 basis point improvement from the third quarter of 2020.\nAnd on a non-GAAP FIFO basis, which we believe is the best measure of our day-to-day operating performance, our gross profit margin of 33.6% increased 180 basis points from 31.8% in the third quarter of 2020.\nWhile we are very pleased with our record Q4 and full year gross profit margin, we continue to believe our estimated sustainable gross profit margin range of 28% to 30% is appropriate as we navigate the ongoing COVID-19 pandemic and operate through this uncertain environment.\nWhile the percentage of orders with value-added processing declined to approximately 49% from 51% in 2019 due to changes in product mix caused by the pandemic, process orders continue to serve as a stabilizer to our margins in challenging markets with declining demand and pricing trends.\nDemand in nonresidential construction, the largest market we serve, remained relatively steady during the fourth quarter due to ongoing healthy bidding activity for new projects and the restart of projects that had been put on hold earlier in the year.\nFourth quarter 2020 sales were down 12.8% from the prior year period as our markets continued to recover following the reopening of the economy.\nFor the full year of 2020, sales were down 19.7% from 2019.\nAs Jim and Karla highlighted, we generated a record quarterly gross profit margin of 33% in the fourth quarter of 2020, up 60 basis points from both Q3 2020 and Q4 2019 and a record gross profit margin of 31.5% for the full year of 2020, up 120 basis points from our previous annual record of 30.3% in 2019.\nOur non-GAAP FIFO gross profit margin in the fourth quarter of 2020 was up 450 basis points from Q4 2019, and for the full year of 2020 was up to 280 basis points from 2019.\nWe incurred LIFO expense of $15.5 million in the fourth quarter of 2020 due to rapidly increasing mill costs for most of our products.\nHowever, for the full year of 2020, we still recognized LIFO income of $22 million as our cost of inventory on hand at the end of the year was still below the levels at the beginning of the year.\nThis compares to LIFO income in the fourth quarter and full year of 2019 of $81 million and $156 million, respectively.\nWe ended 2020 with a LIFO reserve of $115.6 million on our balance sheet.\nBased on current market conditions, we expect to incur an annual LIFO expense of $340 million in 2021.\nAs such, our current projected Q1 2021 LIFO expense is $85 million.\nOur fourth quarter non-GAAP SG&A expenses decreased $51 million or 9.9% compared to the fourth quarter of 2019 on a 7.9% reduction in shipments.\nFor the full year, same-store SG&A expenses declined $241 million or 11.5% on a 10.8% reduction in shipments.\nAs you've heard us say before, approximately 60% to 65% of our SG&A expenses are people related.\nWhen looking at the 11.5% year-over-year decline in same-store SG&A expenses, approximately half of the decrease was people-related as our headcount declined 14% compared to the prior year.\nAlthough we are entering the first quarter of 2021 with a more efficient expense structure because of strong volume and pricing trends, we expect our expenses will increase in the first quarter of 2021 from the fourth quarter of 2020, consistent with seasonal trends.\nFor the full year of 2020, our effective income tax rate declined to 22.1% from 24% in 2019 mainly due to our lower pre-tax income level in 2020.\nWe currently anticipate our full year 2021 effective income tax rate will be 24%.\nOur strong gross profit margin and effective expense management resulted in $2.01 of earnings per diluted share in the fourth quarter of 2020, well above our outlook of $1.30 to $1.40 per diluted share but down 17.6% from $2.44 in the fourth quarter of 2019 mainly due to reduced demand levels related to the pandemic, with commercial aerospace and energy end market sales being significant contributors to the decline in our sales.\nIn comparison to the third quarter of 2020, fourth quarter non-GAAP earnings per diluted share of $2.01 was up 7.5% from $1.87 due to improved pricing, strong gross profit margin and recovering demand in most end markets.\nWe generated strong cash flow from operations of $230.2 million during the fourth quarter due to our profitable operations and effective working capital management, including our focus on rightsizing our inventory levels.\nAt the end of the year, our total debt outstanding was $1.66 billion, resulting in net debt-to-EBITDA multiple of 1.1 times.\nAlso at the end of the year, no borrowings were outstanding on our $1.5 billion revolving credit facility.\nAs mentioned last quarter, we significantly strengthened our liquidity position through the successful completion of both our $900 million senior notes offering and amended/restated $1.5 billion five-year unsecured revolving credit facility.\nAs a result of these favorable conditions and the normal seasonal improvement, we estimate our tons sold will be up 10% to 12% in the first quarter of 2021 compared to the fourth quarter of 2020.\nWe also expect our average selling price in the first quarter of 2021 will be up 12% to 14% compared to the fourth quarter of 2020.\nBased on these expectations, we currently anticipate non-GAAP earnings per diluted share in the range of $3.40 to $3.50 for the first quarter of 2021.", "summaries": "Our results demonstrate the strength and resiliency of our people and unique business model as well as our ability to execute through both good times and bad given the diversity of our products, end markets and geographies.\nAs was evident throughout the past year, our customers rely on Reliance to continue to support them through trying times, often in greater capacity and on a more frequent basis.\nSupported by solid demand and rising input costs, metal pricing improved as mill price increases for many of the products we sell accelerated throughout the fourth quarter with prices for certain carbon steel products almost doubling, which led to our average selling price increasing 4.6% compared to the third quarter of 2020, again, exceeding our expectations.\nDemand in nonresidential construction, the largest market we serve, remained relatively steady during the fourth quarter due to ongoing healthy bidding activity for new projects and the restart of projects that had been put on hold earlier in the year.\nAlthough we are entering the first quarter of 2021 with a more efficient expense structure because of strong volume and pricing trends, we expect our expenses will increase in the first quarter of 2021 from the fourth quarter of 2020, consistent with seasonal trends.\nOur strong gross profit margin and effective expense management resulted in $2.01 of earnings per diluted share in the fourth quarter of 2020, well above our outlook of $1.30 to $1.40 per diluted share but down 17.6% from $2.44 in the fourth quarter of 2019 mainly due to reduced demand levels related to the pandemic, with commercial aerospace and energy end market sales being significant contributors to the decline in our sales.\nIn comparison to the third quarter of 2020, fourth quarter non-GAAP earnings per diluted share of $2.01 was up 7.5% from $1.87 due to improved pricing, strong gross profit margin and recovering demand in most end markets.\nAs a result of these favorable conditions and the normal seasonal improvement, we estimate our tons sold will be up 10% to 12% in the first quarter of 2021 compared to the fourth quarter of 2020.\nWe also expect our average selling price in the first quarter of 2021 will be up 12% to 14% compared to the fourth quarter of 2020.\nBased on these expectations, we currently anticipate non-GAAP earnings per diluted share in the range of $3.40 to $3.50 for the first quarter of 2021.", "labels": 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{"doc": "Asset Management's fourth quarter revenue increased 12% and achieved a record year end level of AUM.\nOur global announcement volume increased 3% even as the markets volume declined 10%.\nIn particular, our volume of French and UK announcements increased 34% and 37% respectively from the prior year.\nIn 2020, we recruited 12 new Managing Directors globally, plus two more in January of this year.\nIn addition, we are promoting 15 new Managing Directors in Financial Advisory this month.\n10 of them began their careers here as analysts or associates.\nOn assets under -- our assets under management increased by $31 billion or 14% from the start to the finish of the fourth quarter.\nOur fourth quarter operating revenue of $849 million was a record quarter for the firm, 20% higher than last year's period.\nFourth quarter adjusted earnings per share of $1.66 increased 82%, reflecting the significant operating leverage in our model.\nAnnual revenue of $2.5 billion was about even with 2019, representing a strong recovery from the volatile environment of 2020.\nOur Financial Advisory business had a breakout fourth quarter, with record quarterly revenue of $509 million, which is 23% higher than our previous peak level in 2018.\nIn Asset Management, this story was similar as we generated $336 million in revenue for the fourth quarter, up 12% from the prior year.\nFourth quarter management and other fees increased 10% sequentially from the third quarter, reflecting higher average AUM.\nAverage AUM for the fourth quarter was $246 billion, up 3% from last year's period and up 9% from the third quarter of 2020.\nThe sequential increase was driven by market appreciation of $25.4 billion and foreign exchange appreciation of $5.8 billion, partially offset by net outflows of $0.3 billion.\nFor the full year, we experienced net outflows of $11.4 billion, primarily in our value strategies within emerging markets and local equities.\nWe finished 2020 with AUM of $259 billion.\nAnd as of January 28, AUM was approximately $258 billion.\nThe decrease was driven by foreign exchange depreciation of $1.3 billion and net outflows of $1 billion, partially offset by market appreciation of $1.3 billion.\nTurning to expenses, our compensation ratio for 2020 on an adjusted basis was 59.5%, up from 57.5% in 2019.\nOn an awarded basis, our annual compensation ratio was 59.8% compared to 57.7% for 2019.\nNon-compensation expense of $117 million in the fourth quarter was 10% lower than the same period last year, primarily reflecting a continuation of global travel restrictions and lower business development costs.\nOur adjusted non-compensation ratio for the fourth quarter was 13.7% and the ratio for the full year was 17.1%.\nOur effective tax rate for 2020 was 20.2% compared to 24.1% a year ago.\nFor 2021, we expect an annual effective tax rate in the low to mid 20% range.\nIn the fourth quarter, we returned $51 million of capital to shareholders.\nYesterday, we declared a quarterly dividend on our common stock of $0.47 per share.\nOur total outstanding repurchase authorization is now $267 million.\nAs of December 31, our cash and cash equivalents were approximately $1.4 billion.", "summaries": "On assets under -- our assets under management increased by $31 billion or 14% from the start to the finish of the fourth quarter.\nOur fourth quarter operating revenue of $849 million was a record quarter for the firm, 20% higher than last year's period.\nFourth quarter adjusted earnings per share of $1.66 increased 82%, reflecting the significant operating leverage in our model.\nOur Financial Advisory business had a breakout fourth quarter, with record quarterly revenue of $509 million, which is 23% higher than our previous peak level in 2018.", "labels": "0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We also filed a Form 10 with the SEC.\nWe maintained significant liquidity with cash and cash equivalents of $524 million, including cash of $159 million at Douglas Elliman and $133 million at Liggett.\nWe also held investment securities and investment partnership interests with a fair market value of $214 million at September 30, 2021.\nVector Group's revenues were $652.6 million compared to $547.8 million in the 2020 period, the 104.8 million increase in revenues was a result of an increase of $125.7 million in the real estate segment, partially offset by a decline of $20.9 million in the tobacco segment.\nMoving on to -- excuse me, net income attributed to Vector Group was $48.9 or $0.32 per diluted common share compared to $38.1 million or $0.25 per diluted common share in the third quarter of 2020.\nThe company recorded adjusted EBITDA of $116.5 million compared to $103.3 million in the prior year.\nAdjusted net income was $52.6 million by $0.34 per diluted share compared to $38.3 million or $0.25 per diluted share in the 2020 period.\nVector Group's revenues were $1.93 billion compared to $1.45 billion in the 2020 period.\nThe $478 million increase in revenues was a result of an increase of $500.4 million in the real estate segment offset by a decline of $22.5 million in the tobacco segment.\nNet income attributed vector Group was $174.2 million or $1.13 per diluted common share compared to $60.7 million or $0.39 per diluted common share in the 2020 period.\nThe company recorded adjusted EBITDA of $355.1 million compared to $240 million in the prior year.\nAdjusted net income was $194.3 million or $1.26 per diluted share compared to $106.9 million or $0.70 per diluted share in the 2020 period.\nMoving on to the results for the last 12 months ended September 30, 2021.\nVector Group reported revenues of $2.48 billion, net income of $206.4 million and adjusted EBITDA of $44.8 million [Phonetic].\nEagle 20's continues to deliver significantly higher margins, while Pyramid delivers both substantial profit and market presence and we continue to be pleased with the performance of our price-fighting brand, Montego, as we expand its distribution into targeted geographies across the country.\nBased on Management Science Associates retail data, the discount category increased approximately 80 basis points in the third quarter from a year ago, now comprising 26.5% of the total market as compared to 25.7% for the same period last year.\nFor the three and nine months ended September 30, 2021, revenues were $297.9 million and $895.9 million respectively, compared to $318.9 million and $918.4 million for the corresponding 2020 period.\nTobacco adjusted operating income for the three and nine months ended September 30, 2021 was $91.8 million and $273.9 million compared to $91.6 million and $240.2 million for the corresponding periods a year ago.\nAccording to Management Science Associates, overall industry wholesale shipments for the three months ended September 30, 2021 were down 11.8% compared to last year, while Liggett's wholesale shipments declined by 11.6% for the comparable period.\nLiggett's retail shipments for the three months ended September 30, 2021 declined 6.1% from the year ago period, while industry retail shipments decreased 7% during the same timeframe.\nAs a result, Liggett's third quarter retail share increased to 4.22% from 4.18% in the corresponding period last year.\nSequentially, Liggett's retail share increased by 13 basis points in the third quarter over the second quarter.\nBefore Howard addresses the spin-off transaction, turning to Douglas Elliman's financial performance for the three, nine and last 12 months ended September 30, 2021.\nFor the three months ended September 30, 2021, Douglas Elliman reported $354.2 million in revenues compared to $208 million in revenues in the 2020 period.\nDouglas Elliman reported net income of $25.1 million and adjusted EBITDA of $27.8 million in the third quarter compared to $11.8 million and $14.1 million in the year ago period.\nFor the nine months ended September 30, 2021, Douglas Elliman reported $1.02 billion in revenues compared to $506.5 million in revenues in the 2020 period.\nDouglas Elliman reported net income of $82.2 million and adjusted EBITDA of $89.5 million for the nine months 2021 period compared to a net loss of $62.2 million and adjusted EBITDA of $5.3 million in the 2020 period.\nThe net loss in the 2020 period included pre-tax charges for non-cash impairments of $58.3 million and pre-tax restructuring charges up $3.3 million.\nFor the last 12 months ended September 30, 2021, Douglas Elliman reported $1.29 billion in revenues, $96.2 million of net income and $106.2 million in adjusted EBITDA.\nIn addition, Douglas Elliman reported closed sales of $47.7 billion in the last 12 months ended September 30, 2021.\nIn addition, Douglas Elliman's gross margin or company dollar increased to $94.5 million in the third quarter 2021, up from $58.9 million in the third quarter of 2020.\nFor the nine months ended September 30, 2021, Douglas Elliman's gross margin or company dollar increased to $274.1 million or $154.8 million for the same period in 2020.\nMoving to Page 4, let's discuss our plan to separate Vector Group's real estate brokerage business and it's PropTech investments into an independent publicly traded company.\nMoving to Page 5, this is planned as a tax-free spin-off of Douglas Elliman to Vector Group stockholders.\nWe also expect subject to Board approval that Spinco will initially pay $0.05 per share quarterly dividend to holders of Douglas Elliman common stock and if Vector were to continue its $0.20 per share quarterly dividend.\nNow, let us turn to Page 6 for an overview of Elliman's business.\nFounded in 1911, Douglas Elliman is one of the preeminent cutting edge residential brokerage companies in the United States.\nDouglas Elliman has an attractive financial profile with a balance sheet strength of $200 million of net cash at significant operating leverage, currently Douglas Elliman has approximately 6,600 agents and for the 12 months ended September 30, 2021, it had gross transaction volume of $47.7 billion, revenue of $1.29 billion and adjusted EBITDA of $106.2 million.\nTurning to page 7, Douglas Elliman is one of the largest residential brokerage companies in the New York metropolitan area, which includes New York City, Long Island, Westchester and the Hamptons and is sixth largest in the United States by sales value according to HousingWire.\nNote, this is sixth among brokerage such as Realogy, Berkshire Hathaway and Compass, for example, all of which opposed to tens of thousands of agents compared to Elliman 6,600.\nTurning to Page 9 to review the investment highlights for Spinco.\nTurning to Page 10, which highlights the attractive characteristics of the U.S. residential market.\nSince the beginning of 2020, U.S. homeowner equity has grown 17.6% to $23.6 trillion.\nNew and existing home sales in the U.S. are forecast to grow to approximately 7.4 million units in 2022, up from 6.9 million units in 2021 and 6.5 million units in 2020.\nTurning to Page 11, another contributing factor to long-term demand in the residential market arises from millennials, the largest population cohort, entering the housing market in large numbers as they hit family formation and peak homebuying age, making their first home purchases at an older age than prior generations, they now are an important and growing part of the demand and we anticipate them to prefer technology focused firm like Douglas Elliman.\nThey represent a very small piece of the market ended approximately 90% of all residential transactions an agent is involved.\nTurning to Page 12, Douglas Elliman's comprehensive suite of real estate solutions provide for multiple revenue streams in addition to our residential brokerage business.\nThe firm ranks among New York City's and South Florida's most prominent marketing and sales firms with 75 in-house development professionals overseeing a $40 billion portfolio of buildings by such famed architects as Jean Nouvel and iconic brands, including the Waldorf Astoria, the St Regis and the Ritz-Carlton.\nOur premium residential property management business, Douglas Elliman property management, provides a full range of fee-based management services for approximately 360 properties representing about 56,500 units in New York City.\nTurning to Page 13.\nOur 6,600 agents across the country are augmented by our exclusive relationship with Knight Frank with its international network with approximately 500 offices and 19,000 agents.\nOur focus on the major U.S. luxury markets is reflected in Douglas Elliman having substantially higher average transaction value than any of our major competitors, approximately 1.6 million year-to-date, materially higher than Compass and Realogy.\nStarting on Page 15, you'll start to see that our general approach to real estate technology is leveraging best of breed technology, leveraging proven technology around legacy investments, as well as leveraging new early stage disruptive PropTech companies from New Valley Ventures.\nTurning to Page 16, leveraging this solution -- leveraging this strategy, we also can quickly incorporate innovative technology to meet our business requirements at a rapid pace.\nExample in 2018 to 2020 on average, we were able to roll out about 2 to 4 major solutions needed to support our business in addition to just small changes that were required for our existing solutions.\nTurning to Page 17.\nI now return return back to Scott to go through Page 18 and 20.\nMoving on to Page 18.\nIn the aggregate, the 18 markets shown represent approximately $180 billion in transaction value, which would represent a 50% increase in our addressable market.\nTotal revenues for this business was $66.7 million year-to-date and our pipeline is very strong.\nTurning to Page 19, a final key to our continued growth lies in the retention and the recruitment of agents.\nWe have a very high retention rate for our industry equal to approximately 90% of our revenue and our agents are long tenured with 87% of our revenue coming from agents who have been with us for more than three years.\nWhile we have all the technological assets and leadership acumen of any major corporation, our agents and employees often describe our completely close-knit culture as family like and probably have agents who have called Elliman home for 10, 20 and even 30 years.\nPlease turn to Page 22.\nPage 22 provides a summary of the attractiveness of Douglas Elliman, strong operating performance with impressive revenue growth, disciplined expense management led by seasoned industry executives, healthy margins and limited capital expenditures that support strong future growth initiatives and a quarterly cash dividend from a balance sheet with $200 million of net cash.\nPlease turn to Page 23.\nThis slide shows our strong key performance indicators, a healthy number of principal agents, significant growth in transactions and transaction value and most importantly, an average sales price of $1.55 million per home over the last 12 months, well above the national average.\nThe fruits of our work from increasing revenues as well as expense reduction initiatives are demonstrated on page 24.\nIn addition to a healthy EBITDA margin of 8.2%, there is a solid conversion to free cash flow with low capital expenditures.\nPlease turn to pages 25 and 26, where the company's income statement and balance sheet are presented.\nNow turning to page 27, a summary of the investment and some highlights are presented including Douglas Elliman operates in a highly attractive US real estate market.\nIt remains an important component of our capital allocation strategy and following the spin off, it is our expectation that our current policy of quarterly dividends of $0.20 per share will continue well into the future.", "summaries": "Vector Group's revenues were $652.6 million compared to $547.8 million in the 2020 period, the 104.8 million increase in revenues was a result of an increase of $125.7 million in the real estate segment, partially offset by a decline of $20.9 million in the tobacco segment.\nMoving on to -- excuse me, net income attributed to Vector Group was $48.9 or $0.32 per diluted common share compared to $38.1 million or $0.25 per diluted common share in the third quarter of 2020.", "labels": "0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our revenue was $340 million, up 12% overall and 3% on an organic constant currency basis.\nOur core organic product revenue increased 9% and driven by growth across our fire service and industrial PPE segments, partially offset by lower fixed gas and flame detection business, which was impacted by supply constraints.\nAs an example, our backlog has increased $50 million, year-over-year.\nRevenue growth was healthy in the third quarter with core revenue growth of 19%.\nThis included 9% growth in organic core revenue on a constant currency basis.\nAdjusted operating margin was 15% in the quarter, which was down year-over-year driven by -- driven primarily by variable compensation resets and higher selling commissions and discretionary costs.\nQuarterly revenue of $340 million was up 12% overall and 3% on an organic constant currency basis.\nWhile our noncore business was off considerably on the lower level of APR revenues, it was encouraging to see core product revenues up 19% with 9% organic growth in the quarter.\nThis has resulted in backlog increasing approximately $50 million year-over-year at the end of the quarter.\nGross profit was 42.9% of sales in the quarter compared to 43.4% of sales in the prior year.\nGross profit margin was negatively impacted by 120 basis points for deal-related costs and amortization.\nExcluding this, gross profit margin was up a healthy 70 basis points compared to a year ago.\nSG&A expense of $87 million was up $23 million from a year ago on a reported basis.\nTo level set, Q3 2020 SG&A of $65 million was abnormally low due to favorable compensation-related adjustments and the lack of discretionary spending.\nThe key drivers of the year-over-year increases are: First, we had an increase of approximately $10 million of expense from the acquisitions of Bacharach in Bristol, of which about $6 million will be recurring going forward; second, variable compensation resets and higher selling commissions added $6 million compared to last year; lastly, Discretionary costs are up $3 million associated with the increase in customer-facing activities.\nOur quarterly adjusted operating margin was 15%, down 260 basis points from a year ago.\nLooking at our segment performance, the Americas margin was 19.4%, down 160 basis points year-over-year.\nInternational margin was 11.3%, down 290 basis points year-over-year.\nOur quarterly effective tax rate was 31.5% on a GAAP basis.\nAdjusting for nonrecurring transaction costs and other restructuring matters, the effective tax rate was 24.7% in the quarter.\nQuarterly free cash flow was $36 million, well above 100% conversion.\nIn the quarter, we borrowed a net $282 million of debt to fund our corporate development activity, funded $17 million of dividends to shareholders and invested $11 million in capex.\nWe finished the quarter with cash of $117 million and net debt of $495 million or 1.8 times adjusted EBITDA.\nBacharach contributed about $15 million of sales in the quarter, in line with what we communicated when we closed the acquisition earlier this quarter.\nIn the quarter, we had a noncash adjustment to the product liability reserve, which resulted in just about $9 million of additional expense compared to a year ago.\nTo put it in perspective, we had $11 million lower revenue versus 2019 this quarter.\nThe backlog is up well over $70 million versus the same period in 2019.\nThis team recently surpassed a remarkable 10 million hours without a lost time incident.", "summaries": "Our revenue was $340 million, up 12% overall and 3% on an organic constant currency basis.\nQuarterly revenue of $340 million was up 12% overall and 3% on an organic constant currency basis.", "labels": "1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Across the La-Z-Boy enterprise, we delivered all-time record high sales of $576 million with sales 29% ahead of the pre-pandemic fiscal '20 second quarter.\nWe are poised to grow on this base of nearly $2.1 billion in trailing 12 month sales.\nAt the time, written same-store sales for the La-Z-Boy Furniture Galleries network were unusually strong, up 34%.\nOff that base, written same-store sales for the La-Z-Boy Furniture Galleries network decreased 6% in the fiscal '22 second quarter.\nHowever, comparing this quarter to the pre-pandemic fiscal '20 second quarter written same-store sales for the La-Z-Boy Furniture Galleries network increased an impressive 26% for a compounded annual growth rate of 12% across the two years.\nSimilarly, while written same-store sales for our company-owned retail segment decreased 7% versus the unusual prior-year period written sales increased at a compounded annual growth rate of 12% across the last two years.\nFor Joybird, primarily an e-commerce business, it continued its strong growth trajectory accelerating to rate 56% more business this Q2 than in last year's second quarter and delivering an extremely impressive compounded annual growth rate of 40% across the last two years.\nWe're continuing to add manufacturing cells and now employ almost 40% more manufacturing personnel in pre-pandemic.\nFurnico has been manufacturing La-Z-Boy product for sale in the UK and Ireland since 2008.\nAlso during the quarter, we continued to return value to shareholders with a dividend payment and $15 million in share repurchases, bringing our total cash returned to shareholders in the first half of the year to $64 million across dividends and share repurchase.\nAnd finally, we were pleased to announce last month, the expansion of our Board of Directors to 12 members with the addition of Erika Alexander, who serves as the Chief Global Officer, Global Operations for Marriott International.\nAt the same time throughout the course of Century Vision will expand the vibrant La-Z-Boy Furniture Galleries store base to approximately 400 locations across North America and will strengthen the entire network to remodels and relocations with some 30 projects on tap for this fiscal year.\nAll in, as we execute Century Vision, we expect to grow the topline higher-than-industry averages and deliver double-digit operating margins.\nOn a consolidated basis, fiscal '22 second quarter sales increased 25% to a record $576 million versus the prior year quarter, an increase sequentially from the fiscal '22 first quarter reflecting continued strong demand and ongoing capacity increases as well as the effects of pricing and surcharges.\nCompared with the pre-pandemic fiscal '20 second quarter, sales were 29% higher for a compounded annual growth rate of about 14% over the last two years.\nConsolidated GAAP operating income increased $54 million versus the prior year period and non-GAAP operating income increased to $52 million.\nConsolidated GAAP operating margin was 9.4% and non-GAAP operating margin was 9% up sequentially from the first quarter.\nGAAP diluted earnings per share was $0.89 for the fiscal '22 second quarter versus $0.75 in the prior year quarter.\nNon-GAAP diluted earnings per share was $0.85 in the current year quarter versus $0.82 in last year's quarter.\nStarting with our wholesale segment, delivered sales for the quarter grew 28% to $439 million compared with the prior year period and increased 12% sequentially from Q1.\nCompared with the pre-pandemic fiscal '20 second quarter, sales were 25% higher for a compounded annual growth rate of 12%.\nNon-GAAP operating margin for the wholesale segment was 9.1% versus 12.2% in last year's second quarter, primarily reflecting higher raw material and freight costs, start-up costs for new facilities and labor challenges, partially offset by pricing and surcharges, fixed cost leverage on higher volume and lower marketing spend as a percentage of sales.\nAll in, we were pleased with the results and the progress we made sequentially from the first quarter operating margin of 4.7%.\nFor the quarter, delivered sales increased 19% to $192 million.\nDelivered same-store sales increased 17% versus the year-ago quarter.\nCompared with the pre-pandemic fiscal '20 second quarter, delivered sales increased 30% for a compounded annual growth rate of 14%, again demonstrating the strength of the La-Z-Boy brand and our furniture gallery store system in this environment as well as ongoing strong execution at the store level with sales metrics positive across the board.\nNon-GAAP operating margin increased to a second quarter record of 12.5% versus 9.4% in the prior year quarter, driven primarily by fixed cost leverage on the higher delivered sales volume as well as expense management.\nSales for Joybird which are reported in corporate and other increased 37% to $40 million versus the prior year quarter.\nOn a two-year basis, compared with a -- the pre-pandemic fiscal '20 second quarter delivered sales increased in impressive 93% for a compounded annual growth rate of 39%, reflecting the momentum Joybird is building and the direct to consumer marketplace as we continue to acquire customers and strengthen brand awareness through new digital marketing channels.\nPulling all of this together, consolidated non-GAAP gross margin for the entire Company for the fiscal '22 second quarter decreased 500 basis points versus the prior year quarter, primarily driven by significant increases in raw material and freight costs, start-up costs associated with the expansion of our manufacturing capacity and labor challenges in our wholesale businesses.\nConsolidated non-GAAP SG&A as a percentage of sales for the quarter decreased 280 basis points, primarily reflecting fixed cost leverage on the higher sales volume, mainly in our retail segment as well as lower marketing spend as a percentage of sales.\nOur effective tax rate on a GAAP basis for the fiscal '22 second quarter was 26.6% versus 26% in the second quarter of fiscal '21.\nOur effective tax rate varies from the 21% federal statutory rate, primarily due to state taxes.\nWe expect our effective tax rate for the full fiscal '22 year to be between 25.5% and 26.5%.\nYear-to-date, we generated $15 million in cash from operating activities.\nWe ended the period with $297 million in cash and no debt and held $31 million in investments to enhance returns on cash.\nYear-to-date, we invested $59 million and higher inventory levels to protect against supply chain disruptions and support increased production and delivered sales.\nWe also spent $33 million in capital year-to-date, primarily related to improvements to our retail stores, plant upgrades at our manufacturing distribution facilities, new upholstery manufacturing capacity in Mexico and technology upgrades.\nAs a note, last month we entered into a new five-year $200 million unsecured revolving credit facility which replaced our $150 million ABL facility.\nThe new facility has a $100 million accordion feature, allowing us to expand our borrowing capacity to support future growth.\nRegarding cash returned to shareholders, during the quarter, we continued to buy back shares, spending $15 million repurchasing more than 400,000 shares of stock in the open market leaving 8.6 million shares in our existing authorized share repurchase program.\nYear-to-date we have returned $51 million to shareholders via share repurchase.\nWe also paid $6.6 million in dividends to shareholders in the second quarter.\nAnd subsequent to quarter end, demonstrating its confidence in the Company's long-term growth prospects, the Board of Directors increased the regular quarterly dividend by 10% to $0.165 per share.\nAccordingly, we expect to continued increase in production capacity, particularly in Q4.\nQuarterly trends will also be impacted by our third and fourth quarters containing 12 and 14 production weeks respectively compared to 13 production weeks in our second quarter.\nRecall fiscal 2022 will include 53 weeks of results.\nFinally, as we make investments in the business to strengthen the Company for the future, including work related to our Century Vision strategy, we expect capital expenditures to be in the range of $75 million to $85 million for fiscal '22.", "summaries": "All in, as we execute Century Vision, we expect to grow the topline higher-than-industry averages and deliver double-digit operating margins.\nOn a consolidated basis, fiscal '22 second quarter sales increased 25% to a record $576 million versus the prior year quarter, an increase sequentially from the fiscal '22 first quarter reflecting continued strong demand and ongoing capacity increases as well as the effects of pricing and surcharges.\nGAAP diluted earnings per share was $0.89 for the fiscal '22 second quarter versus $0.75 in the prior year quarter.\nNon-GAAP diluted earnings per share was $0.85 in the current year quarter versus $0.82 in last year's quarter.\nDelivered same-store sales increased 17% versus the year-ago quarter.\nAccordingly, we expect to continued increase in production capacity, particularly in Q4.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "And we certainly can explain what's going on with the margin pressure and really rampant cost increases in my career as president, which started in 1995, I haven't seen this since Hurricane Katrina back in August of 2005 when natural gas went through the roof.\nFor the third quarter of fiscal year 2021, Oil-Dri delivered net sales of 76.3 million, which was on par with our record third quarter in fiscal 2020.\nThe third-quarter net sales in our business-to-business products group decreased 1% from the prior year to 26.3 million.\nAgricultural product revenues rose 7% in the third quarter compared to the last year, primarily resulting from increased sales to our existing customers.\nSales of animal feed additives increased 3% in the quarter versus the prior year, driven by higher demand within Asia and Latin America that was partially offset by lower revenues in China.\nThird-quarter sales of our bleaching clay and fluids purification products declined by 3% from the prior year due to the timing of orders, improved crop conditions that require less material for purification, and the negative impact for the pandemic as many edible oil manufacturing plants have delayed plant tests or have unused product on-hand due to lower production.\nThird-quarter net sales reached a record of 50 million, a 1% increase over the strong quarter in the prior year.\nA 20% increase in our sales from our industrial and sports products drove much of this growth as commercial businesses are recovering since the pandemic and many sports fields have reopened.\nOur third-quarter gross profit of 16.5 million was approximately 4.9 million lower than the third quarter of fiscal 2020.\nThis decline can be attributed to a 14% increase in cost of goods sold per manufactured tons driven by higher freight, packaging, materials, natural gas, and nonfuel manufacturing costs.\nDomestic trucking supply constraints and elevated fuel costs resulted in a 28% increase in freight costs for manufactured tons compared to the same period last year.\nA 19% increase in packaging costs for manufactured tons due to higher resin prices also contributed to the reduction in margin.\nNatural gas and material costs for manufactured tons increased by 11% and 9% respectively in the third quarter over the prior year.\nThey were approximately 1.1 million lower than the prior year, representing a 7% in decrease.\nDuring the third quarter, it was a negative 1%, compared to 17% in the same period in the prior year.\nNet income attributable to Oil-Dri was 2.2 million in the third quarter, compared to 4.6 million during the third quarter of fiscal 2020, resulting from the impact primarily of the increased costs we discussed earlier.\nAnd for the same reasons, our earnings per diluted common share of $0.32, compares to $0.65 in the third quarter of the prior year.\nWe ended the quarter with cash and cash equivalents of 30 million and have very little debt, equating to a debt of total capital ratio of about 6%.\nTaking a year-to-date perspective here, during the first nine months of fiscal 2021, our accounts receivable increased 3.9 million, reflecting our sales growth, as well as a shift in our customer mix, which includes an increase of sales to foreign customers who tend to have longer term.\nOur income taxes shifted from a 2.6 million payable balance included in accounts payable as of July 31, 2020, to a prepaid balance of 2.3 million as of April 30, 2021, representing a use of cash of 4.9 million during the first nine months of fiscal 2021.\nThe decrease in accrued expenses of 4.1 million for the nine months ending April 30 was primarily driven by a reduction in the incentive bonus accrual.\nYear to date, we have repurchased approximately 82,000 shares of our common stock for $2.9 million.", "summaries": "For the third quarter of fiscal year 2021, Oil-Dri delivered net sales of 76.3 million, which was on par with our record third quarter in fiscal 2020.\nAnd for the same reasons, our earnings per diluted common share of $0.32, compares to $0.65 in the third quarter of the prior year.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "Our reported sales in the quarter of $1.0246 billion were up 20.2%, including $19.2 million of favorable foreign exchange and $11.3 million of acquisition-related sales.\nOrganic sales growth was 16.3%, gains in every group.\nProgress there was -- opco operating income of $200.9 million was up $62 million from last year, which included $7.5 million of restructuring charges.\nOpco operating margin was 19.6%, up from the 2020 level of 16.3% or 17.2% as adjusted for restructuring.\nFor financial services, operating income of $65.3 million increased 14.8% and the delinquencies were down, even in the midst of a pandemic stress test, during commercial trial of what we could call extraordinary proportion.\nAnd that result combined with opco for a consolidated operating margin of 23.9%, a 300-basis-point improvement as reported and up 220 basis points as adjusted.\nFirst-quarter earnings per share was $3.50, up 40.6% from last year's $2.40.\nAnd excluding the 2020 restructuring charges, earnings per share grew 34.6%.\nVersus 2019, our sales in the past quarter grew $102.9 million or 11.2%.\nThat reflects $15.3 million of acquisition-related sales; $11.6 million of favorable foreign; currency and a $76 million or 8.1% economic gain.\nThe 2021 opco operating margin of 19.6% was up 50 basis points from the 2019 level as adjusted for a legal settlement in that earlier period, and that 50-point gain was achieved against 80 points of unfavorable currency and acquisition impacts, all while still absorbing the COVID.\nIn the C&I group, on a reported basis, including $9.2 million of favorable foreign currency translation and $7.3 million of acquisition-related sales, first-quarter volume rose 15.3% compared to last year.\nOrganic sales were up 9.5%, double-digit growth in our European hand tool business had a mid-single-digit rise and critical industries led the way.\nFrom an earnings perspective, C&I operating income of $50.7 million, including $1.4 million of unfavorable currency, represents a rise of $19.2 million, compared to the $31.5 million registered in 2020, which included $4.4 million of restructuring.\nThat all means, on an adjusted basis, an adjusted increase of over 40%, an as adjusted increase of over 40%, and the operating margin was 14.7% and as reported increase of 420 basis points and 290 as adjusted.\nNow when compared with 2019, the pandemic-free measuring stick sales were up 7.2%, and that included $10 million or a 3.1% organic gain; $8 million of acquisitions, and $5.2 million for favorable foreign currency.\nOne example is our CT9010, 3/8-inch drive, 18-volt brushless impact wrench, the newest member of our MonsterLithium family, aimed at tight space sustained power, rugged durability, and precise control.\nThe 9010 features 320-pound feet of bulk breakaway torque and 240-pound feet of working torque, all the power of technician needs when they're working in confirmed quarters.\nThe 9010 advanced design also reduces motor temperature rise, delivering higher durability and great power to rate ratio.\nIt's had strong demand, and it's already one of our $1 million hit products.\nSales of $478.3 million, up $102.4 million, including $6.7 million of favorable currency and a $95.7 million or 25% organic gain, double-digit growth, both in the U.S. and the international operations.\nThe operating margin was 20.7%, yes, 20.7%, up 780 basis points.\nCompared with pre-virus 2019, tools group sales grew $68.1 million, 16.6%, including $5.2 million favorable currency translation and $62.9 million or a 15.1% organic gain.\nAnd this year's 20.7% operating margin was up 430 basis points compared with pre-pandemic 2019.\nThat's a very important feature for a high-capacity unit, the KER681 EPIQ strength, styling, and styling, 8,000 pounds of low capacity, and more than 45,000 cubic inches of storage space.\nFirst-quarter organic sales rose 7.6% with varying gains across the board.\nOperating earnings of $81.4 million, including $1.5 million of unfavorable foreign currency effects, increased $4.1 million from 2020, which included $3.1 million of restructuring costs.\nCompared with 2019, sales grew $19.7 million or 6%, including a $10 million or 3.1% organic gain, $7.3 million from acquisitions, and $2.3 million of unfavorable foreign currency.\nSo our new John Bean 2.80 of calibration system is the fix, making sure the vehicle is physically aligned correctly, guiding calibration of the sensors, and documenting that the procedure was formed appropriately.\nIt's loaded with our Fast Track intelligence diagnostics rooted in our proprietary database of over 200 billion vehicle events, a Snap-on only feature that enables quick and accurate diagnosis of even the most difficult and unusual repairs, ensuring an efficient and effective solution for those very, very time-consuming problems.\nOur third straight period exceeding pre-pandemic levels; C&I, sequential improvement, sequential advancement; RS&I is solid; the tools group, strong and pumped; organic sales rising 16.3%; opco operating margin, 19.6%; EPS, $3.50 a big rise and most important, most important, more testimony that Snap-on has emerged from the turbulence much stronger than when we entered.\nNet sales of $1.0246 billion in the quarter increased 20.2% from 2020 levels, reflecting a 16.3% organic sales gain, $11.3 million of acquisition-related sales and $19.2 million of favorable foreign currency translation.\nAdditionally, net sales in the period increased 11.2% from $921.7 million in the first quarter of 2019, including an 8.1% organic gain, $15.3 million of acquisition-related sales and $11.6 million of favorable foreign currency translation.\nConsolidated gross margin of 50.1% and compared to 49.5% last year, which included 60 basis points from restructuring costs.\nThe gross margin contributions from the higher sales volumes will benefit from the company's RCI initiatives were offset by 40 basis points of unfavorable foreign currency effects.\nOperating expenses as a percentage of net sales of 30.5% improved 270 basis points from 33.2% last year, which included 30 basis points from restructuring costs.\nThe improvements primarily reflect the impact of higher sales and cost containment actions, partially offset by higher stock-based costs and 30 basis points of operating expenses related to acquisitions.\nOperating earnings before financial services of $200.9 million compared to $138.9 million in 2020, reflecting a 44.6% year-over-year improvement.\nAs a percentage of net sales, operating margin before financial services of 19.6% improved 330 basis points from 16.3% last year, which included 90 basis points for restructuring costs.\nFinancial services revenues of $88.6 million in the first quarter of 2021, compared to $85.9 million last year, while operating earnings of $65.3 million increased $8.4 million from 2020 levels, principally due to the higher revenue as well as lower provisions for credit losses.\nLast year's provisions included a $2.6 million charge for higher reserves, resulting from the economic uncertainty caused by COVID-19.\nConsolidated operating earnings of $266.2 million increased 36% from $195.8 million last year.\nAs a percentage of revenues, the operating earnings margin of 23.9% compared to 20.9% in 2020, which included 80 basis points from restructuring costs.\nExcluding the restructuring costs, operating earnings margin in 2021 increased 220 basis points from last year.\nOur first-quarter effective income tax rate of 23.5% compared to 24.2% last year, which included a 10 basis point increase related to the prior-year quarter's restructuring charges.\nFinally, net earnings of $192.6 million or $3.50 per diluted share increased $55.4 million or $1.01 per share from 2020 levels, representing a 40.6% increase in diluted earnings per share.\nAdditionally, net earnings increased $14.7 million or $0.34 per share from 2019 levels, representing a 10.8% increase in diluted earnings per share.\nNet earnings in 2020 included restructuring charges of $6 million after tax or $0.11 per diluted share, and net earnings in 2019 included a benefit of $8.7 million after tax or $0.15 per diluted share from a legal settlement.\nExcluding these items, diluted earnings per share of $3.50 in 2021 increased 34.6% from 2020 and 16.3% from 2019 levels.\nStarting with the C&I group on Slide 7, sales of $345.7 million increased 15.3% from $299.9 million last year, reflecting a 9.5% organic sales gain, $7.3 million of acquisition-related sales and $9.2 million of favorable foreign currency translation.\nAs a further comparison, net sales in the period increased 7.2% from 2019 levels, representing a 3.1% organic sales gain, $8 million of acquisition-related sales and $5.2 million of favorable foreign currency translation.\nGross margin of 38.7% improved 190 basis points from 36.8% in the first quarter of 2020, which included 150 basis points from restructuring charges.\nAside from the improvements resulting from the lower restructuring costs, contributions from higher sales volumes were partially offset by 70 basis points of unfavorable foreign currency effects.\nOperating expenses as a percentage of sales of 24% improved 230 basis points as compared to last year, primarily as a result of the higher volumes and savings from cost containment actions.\nOperating earnings for the C&I segment of $50.7 million, including $1.4 million of unfavorable foreign currency effects, compared to $31.5 million last year, the operating margin of 14.7% compared to 10.5% a year ago.\nSales of Snap-on tools group of $478.3 million increased 27.2% from $375.9 million in 2020, reflecting a 25% organic sales gain and $6.7 million of favorable foreign currency translation.\nNet sales in the period increased 16.6% from $410.2 million in the first quarter of 2019, reflecting a 15.1% organic sales gain and $5.2 million of favorable foreign currency translation.\nGross margin of 45.9% in the quarter improved 320 basis points from last year, primarily due to the higher sales volumes and benefits from RCI initiatives.\nOperating expenses as a percentage of sales of 25.2% improved from 29.8% last year, primarily due to the higher sales volumes and savings from cost containment actions.\nOperating earnings for the Snap-on tools group of $98.9 million, compared to $48.6 million last year, the operating margin of 20.7%, compared to 12.9% a year ago, an increase of 780 basis points.\nSales of $347.6 million compared to $314.6 million a year ago, reflecting a 7.6% organic sales gain, $4 million of acquisition-related sales and $4.8 million of favorable foreign currency translation.\nAs compared to 2019 levels, net sales increased 6%, reflecting a 3.1% organic sales gain, $7.3 million of acquisition-related sales and $2.3 million of favorable foreign currency translation.\nGross margin of 46% declined from 47.9% last year, primarily due to the impact of higher sales and lower gross margin businesses and 70 basis points of unfavorable foreign currency effects.\nOperating expenses as a percentage of sales of 22.6% improved 70 basis points from 23.3% last year, which included 80 basis points of restructuring cost.\nExcluding the effects of restructuring benefits from the higher sales volumes were more than offset by 80 basis points of operating expenses related to acquisitions.\nOperating earnings for the RS&I group of $81.4 million compared to $77.3 million last year.\nThe operating margin of 23.4%, compared to 24.6% a year ago.\nRevenue from financial services of $88.6 million compared to $85.9 million last year.\nFinancial services operating earnings of $65.3 million compared to $56.9 million in 2020.\nFinancial services expenses of $23.3 million decreased to $5.7 million from 2020 levels, primarily due to lower provisions for credit losses resulting from $2.4 million of lower year-over-year net loan charge-offs and the absence of the previously mentioned first-quarter 2020 $2.6 million charge.\nAs a percentage of the average portfolio, financial services expenses were 1.1% and 1.4% in the first quarters of 2021 and 2020, respectively.\nIn the first quarter, the average yield on finance receivables of 17.6% in 2021, compared to 17.7% in 2020.\nThe respective average yield on contract receivables was 8.4% and 9%.\nAs of the end of the first quarter, approximately $11 million of these business operating support loans remain outstanding.\nTotal loan originations of $261.8 million in the first quarter increased $6.2 million or 2.4% from 2020 levels, reflecting a 1.7% increase in originations of finance receivables while originations of contract receivables were up 5.7%.\nMoving to Slide 11, our quarter-end balance sheet includes approximately $2.2 billion of gross financing receivables, including $1.9 billion from our U.S. operation.\nOur worldwide gross financial services portfolio decreased $25.8 million in the first quarter, primarily due to an increase in net collections.\nThe 60-day plus delinquency rate of 1.6% for the United States extended credit is down 10 basis points from the first quarter last year and down 20 basis points as compared to the fourth quarter of 2020.\nAs it relates to extended credit or finance receivables, trailing 12-month net losses of $43.9 million represented 2.55% of outstandings at quarter end, down seven basis points sequentially and down 44 basis points as compared to the same period last year.\nNow turning to Slide 12, cash provided by operating activities of $319.3 million in the quarter increased $105.9 million from comparable 2020 levels, primarily reflecting the higher net earnings and net changes in operating assets and liabilities, including a $32.1 million decrease in inventory.\nNet cash used by investing activities of $207.2 million included $200 million for the acquisition of dealer FX and the capital expenditures of $19.3 million, partially offset by net collections of finance receivables of $12.1 million.\nFree cash flow during the quarter of $312.1 million was 158% in relation to net earnings.\nNet cash used by financing activities of $131 million included cash dividends of $66.7 million and the repurchase of 722,000 shares of common stock from $151.9 million under our existing share repurchase programs, partially offset by proceeds from stock purchase and option plan of $93 million.\nAs of quarter end, we had remaining availability to repurchase up to an additional $268.7 million of common stock under existing authorizations.\nTrade and other accounts receivable increased $10.1 million from 2020 year end.\nDays sales outstanding of 62 days, compared to 64 days at 2020 year end.\nInventories decreased $16.4 million from 2020 year end and on a trailing 12-month basis, inventory turns of 2.6 compared to 2.4 at year-end 2020.\nOur quarter-end cash position of $904.6 million compared to $923.4 million at year-end 2020.\nOur net debt-to-capital ratio of 12.4% compared to 12.1% at year-end 2020.\nIn addition to cash and expected cash flow from operations, we have more than $800 million in available credit facilities.\nWe anticipate that capital expenditures will be in the range of $90 million to $100 million.\ntax legislation, our full-year 2021 effective income tax rate will be in the range of 23% to 24%.\nThe RS&I sales continuing upward with OI margins of 23.4%, attenuated but still strong.\nC&I, ongoing sequential growth across the world and OI margins 14.7%, up nicely even from 2019.\nSales up organically, 25% versus 2020, up in all product lines and in all geographies, volume up 15.1% versus 2019 and an OI margin of 20.7%.\nAnd it all came together with Snap-on sales rising organically 16.3% versus 2020 and 8.1% versus '19.\nOI margin, 19.6%, up significantly despite the virus, the unfavorable currency and the acquisition impacts.\nAnd the EPS, $3.50, a substantial rise versus both 2020 and 2019.", "summaries": "First-quarter earnings per share was $3.50, up 40.6% from last year's $2.40.\nOur third straight period exceeding pre-pandemic levels; C&I, sequential improvement, sequential advancement; RS&I is solid; the tools group, strong and pumped; organic sales rising 16.3%; opco operating margin, 19.6%; EPS, $3.50 a big rise and most important, most important, more testimony that Snap-on has emerged from the turbulence much stronger than when we entered.\nFinally, net earnings of $192.6 million or $3.50 per diluted share increased $55.4 million or $1.01 per share from 2020 levels, representing a 40.6% increase in diluted earnings per share.\nExcluding these items, diluted earnings per share of $3.50 in 2021 increased 34.6% from 2020 and 16.3% from 2019 levels.\nWe anticipate that capital expenditures will be in the range of $90 million to $100 million.\nAnd the EPS, $3.50, a substantial rise versus both 2020 and 2019.", "labels": 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{"doc": "In 2020, we suffered 470 infections, 15 hospitalizations and sadly, three deaths.\nWith over a half century of outstanding performance, CCM's influence on our overall performance has consistently expanded despite our diversification efforts peaking in 2020 when it accounted for over 70% of revenues and over 90% of earnings.\nA consistent 30% plus returns business, CCM's performance warranted and earn the right to share the majority of investment dollars that were allocated to portfolio diversification.\nCCM products provide a substantial offset to the estimated 40% of greenhouse gases globally generated from the construction and maintenance of buildings and our teams are focused on continuing to support the growing efforts in global energy efficiency.\nNon-residential buildings built 10 to 20 years ago make up over 25% of current infrastructure and those roofs will need replacing in the next decade.\nAided by the Carlisle experience and our market position, CCM should continue to capture placement of installed roofing systems and grow share with new energy-efficient, labor reducing and cost-effective product and solutions in the $6 billion and growing market.\nThird, like Polyurethane, Architectural Metals is an exciting new platform for CCM, it's a $1 billion market growing at approximately 2 times GBP provides an attractive opportunity to diversify into the sloped roof market with a highly sustainable product.\nMetal roofs are 100% recyclable, increase energy efficiency of the building up to 20% versus traditional materials and reduce waste in the manufacturing process.\nFourth, we are committed to accelerating growth in Europe, a $10 billion -- or EUR10 billion addressable market.\nTo drive this growth, we recently changed leadership in the region and announced the investment of over $25 million to expand capacity in our German manufacturing facility.\nWe've generated $2.5 billion of free cash flow over the last six years and recently accelerating significantly with almost half of that was generated in 2019 and 2020.\nThis is evidenced by our deployment of more of than $380 million of share repurchases in 2020, totaling approximately $1.5 billion in share repurchases since 2017.\nAnd at our latest Board meeting, our Board approved an incremental $5 million share repurchase authorization for Carlisle.\nWe also returned over $112 million to shareholders in the form of dividends in 2020, raising our dividend in August for the 44th consecutive year.\nAn finally, we spent $96 million of capex in 2020 and that plans to significantly increase that in 2021.\nIn 2020, we also made progress in diversity and inclusion exiting 2020 with 50% of our Board of Directors identifying as gender, racially or ethnically diverse and meeting our 2020 target for percent of females in senior leadership positions.\nIn 2020, COS delivered savings of 1.3% of sales, well within our Vision 2025 annual target of 1% to 2%, a remarkable feat considering 2020's challenging conditions and proving that Carlisle employees truly embody and live our continuous improvement culture every day.\nRevenue decreased 7% to $1.1 billion in the fourth quarter.\nOrganic revenue declined 9%.\nAcquisitions contributed 1.4% of sales growth for the quarter and FX was a 60 basis point tailwind.\nQ4 operating margin declined 180 basis points, pricing and volume headwinds combined for a 320 basis point decline and acquisitions were a 40 basis point tailwind.\nOffsetting these declines, freight, labor, raw material, other operating costs netted to a 60 basis point improvement.\nCOS benefits added 120 basis points.\nOn Slide 15, we have provided an earnings per share bridge where you can see the fourth quarter diluted earnings per share from continuing operations was $1.57, which compares to $1.81 last year.\nVolume, price and mix combined were a $0.74 year-over-year decrease.\nPartially offsetting, interest and tax contributed $0.09 and raw material, freight and labor costs netted to a $0.16 benefit.\nShare repurchases contributed $0.09, COS contributed $0.19, and finally, operating expenses were a $0.03 headwind.\nAt CCM, the team again delivered outstanding results with revenues increasing 1% driven by volume and 30 basis points of foreign currency translation tailwind.\nOperating margin at CCM was a record 20.4% for the fourth quarter, a 350 base improvement over the last year driven by CCM team's superb cost management and COS partially offset by wage inflation.\nCCM executed well in delivering approximately $15 million of net price cost realization in the quarter.\nCIT's revenue declined 35.4% in the fourth quarter.\nIn other positive recent news, the 737 MAX 8 has been cleared for returned flights in the U.S., Europe and South America, while TSA, the early checkpoint data continues to improve.\nCIT's operating margin declined significantly year-over-year to a negative 8.6% driven by commercial aerospace volume declines and accelerated restructuring actions.\nCFT sales declined 8.3% year-over-year.\nOrganic revenue declined 16.1% and additionally, acquisitions added 5% in the quarter.\nFX contributed 280 basis points.\nOperating income of 4.5% was an 820 basis point decline year-on-year.\nCBF's fourth quarter organic revenue grew 2.8% and FX had a positive 2.6% impact driving CBF growth of 5.4% in the quarter.\nOperating income was $8 million or 1.1% operating margin.\nOn slides 20 and 21, we show selected balance sheet metrics.\nWe ended the quarter with $902 million of cash on hand and $1 billion of availability under our revolving credit line.\nFree cash flow for 2020 was an exceptional $601 million consistent with '19 results on the lower sales volumes.\nCorporate expense is expected to be approximately $105 million for the year.\nWe expect depreciation and amortization expense to be approximately $225 million.\nFor the full year, we will continue to invest in our businesses and now expect capital expenditures of $100 million to $175 million.\nNet interest expense is approximately -- expected to be approximately $75 million for the year and we expect our tax rate to be approximately 25%.\nWe'll continue to deploy capital into strategic acquisitions, share repurchases and dividends, all the while maintaining our commitment to delivering returns on invested capital in excess of 15% and ultimately driving the $15 of earnings per share.", "summaries": "On Slide 15, we have provided an earnings per share bridge where you can see the fourth quarter diluted earnings per share from continuing operations was $1.57, which compares to $1.81 last year.\nOperating income was $8 million or 1.1% operating margin.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "M.D.C. Holdings posted another quarter of strong operating results, highlighted by year-over-year home sales revenue growth of 33%, homebuilding operating margin expansion of 370 basis points and net income growth of 96%.\nNet new order growth for the quarter increased 73% as compared to last year on a sales pace of 6.1 homes per community per month.\nAccording to the National Association of Realtors, total housing inventory at the end of September totaled 1.4 million units, which was down 19% from a year ago and represents less than a three-month supply of homes.\nAnthony Berris has been promoted to President of our Financial Service operations.\nDavid has been associated with the Company since 1977, most recently as our President and Chief Operating Officer.\nDavid will be participating with me in our earning calls going forward.\nWe experienced strong topline growth for the quarter as home sale revenues increased by 33% year-over-year to $1 billion.\nHomebuilding operating margin improved by 370 basis points from the prior year quarter, resulting in a 109% increase in pre-tax income from our homebuilding operations to $101.7 million.\nIn addition, our financial services pre-tax income increased $10.3 million, or 73%.\nAs a result, net income increased 96% to $98.9 million, or $1.49 per diluted share for the third quarter of 2020.\nOur tax rate increased from 19.5% to 21.5% for the 2020 third quarter.\nFor the fourth quarter, we currently estimate a 25% tax rate, excluding any discrete items.\nHomes delivered increased 25% year-over-year to 2,147, driven by an increase in the number of homes we had in backlog to start the quarter, and to a lesser extent, an increase in our backlog conversion rate.\nThe average selling price of homes delivered during the quarter increased 6% to about $466,000.\nThe increase was the result of price increases implemented across the majority of our communities over the past 12 months, as well as a shift in the mix of homes closed from Nevada to Southern California.\nWe are anticipating home deliveries for the fourth quarter of 2020 to reach between 2,400 and 2,600 units.\nWe expect the average selling price for 2020 fourth quarter unit deliveries to again exceed $460,000.\nGross margin from home sales improved by 170 basis points year-over-year to 20.5%.\nGross margin from home sales for the 2020 fourth quarter is expected to approach 21%, excluding impairments and warranty adjustments.\nWe continued to demonstrate solid operating leverage during the third quarter as our SG&A expense as a percentage of home sale revenues decreased 200 basis points year-over-year to 10.4%.\nOur total dollar SG&A expense for the 2020 third quarter increased $10.9 million year-over-year, mostly due to variable commissions and marketing expenses that increased in line with our 33% increase in home sale revenues during the period.\nOur overall headcount has increased by 5% year-over-year as we work to support the Company's strong growth trajectory.\nFor the fourth quarter of 2020, we may see our general and administrative expense increase to between $50 million and $55 million due to the 5% year-over-year increase in headcount I just mentioned, additional bonus accruals in line with strong operating results, and a potential charitable contribution to our Foundation.\nAs I previously mentioned, as a result of the continued expansion of our gross margin and our improved operating leverage, our homebuilding operating margin, defined as gross margin from home sales minus our SG&A rate, grew by 370 basis points year-over-year to 10.1%.\nOn the strength of this improvement, our last 12 months pre-tax return on equity increased 560 basis points year-over-year to 21.8%, which is our highest level in 15 years.\nThe dollar value of our net orders increased 89% year-over-year to $1.65 billion, and unit net orders increased by 73%, driven by a 70% increase in our monthly absorption rate to 6.1.\nThe average selling price of our net orders increased by 10% year-over-year, driven by price increases implemented over the past 12 months, as well as a shift in mix to California, which has our highest average price.\nI'd like to note that we ended the quarter with 194 active subdivisions, which is slightly higher than a year ago.\nAs a result, we anticipate roughly 185 active subdivisions at year-end.\nBased on the activity we've seen to date, we expect our October 2020 net orders to exceed our October 2019 orders by at least 50%.\nAs a result of our strong sales, we ended the quarter with an estimated sales value for our homes in backlog of $3.1 billion, which was up 47% year-over-year.\nThe average selling price of homes in backlog increased 4% due to price increases implemented over the past 12 months, decreased incentives, and a shift in mix to California.\nThe number of lots we acquired this quarter increased 63% year-over-year, reflecting our confidence in market conditions and our focus on continuing to grow our business.\nWhile the number of lots we approved earlier this year were down due to the uncertainty created by COVID-19, we approved over 3,800 lots for purchase during the third quarter of 2020.\nIn the end, in spite of immense volatility, the number of lots approved over the last 12 months has increased by 34% compared to the prior year period.\nAs a result, our total lot supply to end the quarter was 8% higher than at the same point in 2019, supporting our growth potential for future periods.\nWith our strong balance sheet and current land pipeline, we are well positioned to grow community count significantly in 2021 and have a preliminary target of at least 10,000 home deliveries for the coming fiscal year.\nFollowing our strong third quarter, our Board of Directors has declared a 21% increase in the quarterly cash dividend from $0.33 to $0.40 per share.\nThis represents a 33% increase from the prior year and demonstrates our commitment to rewarding our shareholders for their continued support.", "summaries": "Anthony Berris has been promoted to President of our Financial Service operations.\nDavid will be participating with me in our earning calls going forward.\nWe experienced strong topline growth for the quarter as home sale revenues increased by 33% year-over-year to $1 billion.\nAs a result, net income increased 96% to $98.9 million, or $1.49 per diluted share for the third quarter of 2020.\nThe average selling price of homes delivered during the quarter increased 6% to about $466,000.\nWe are anticipating home deliveries for the fourth quarter of 2020 to reach between 2,400 and 2,600 units.\nWe expect the average selling price for 2020 fourth quarter unit deliveries to again exceed $460,000.\nThe dollar value of our net orders increased 89% year-over-year to $1.65 billion, and unit net orders increased by 73%, driven by a 70% increase in our monthly absorption rate to 6.1.\nAs a result of our strong sales, we ended the quarter with an estimated sales value for our homes in backlog of $3.1 billion, which was up 47% year-over-year.\nFollowing our strong third quarter, our Board of Directors has declared a 21% increase in the quarterly cash dividend from $0.33 to $0.40 per share.", "labels": "0\n0\n0\n1\n0\n1\n1\n0\n0\n1\n0\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "We delivered another strong quarter with earnings per share of $0.72.\nThis is an increase of 18% from the first quarter and up significantly from the year-ago period.\nWe generated record second-quarter revenue, driven by an 8% year-over-year increase in noninterest income.\nAdditionally, our consumer business generated over 4 billion in loan originations for the quarter.\nMortgage originations reached another all-time high and we expect to exceed last year's record level of 8.3 billion for the full year.\nSince the launch of our National Digital Bank, Laurel Road for doctors, we have added over 2,500 new doctors and dentists.\nOur investment banking business generated fees of 217 million, a record second-quarter level and the second-highest quarterly level in our history.\nThis quarter, we raised $21 billion for our clients, of which we retained approximately 20% on our balance sheet.\nYear to date, we have increased our senior bankers by 5% and in our targeted growth areas.\nThis has resulted in a 21% increase in client pitches on a year-to-date basis.\nWe also consolidated 54 branches this quarter with an additional 14 planned for next quarter.\nOur common equity Tier 1 ratio ended the quarter at 9.9%, which is above our targeted range of 9 to 9.5%.\nCombining our share repurchases and dividends paid this quarter, we have returned capital representing $0.50 a share for an annualized return of capital of approximately 11% at our current valuation.\nEarlier this month, our board of directors approved a new share repurchase authorization of up to 1.5 billion beginning in the third quarter of this year and continuing through the third quarter of 2022.\nThe board will also evaluate an increase to our common stock dividend in the fourth quarter of 2021.\nAs Chris said, it was a strong quarter with net income from continuing operations of $0.72 per common share, up 18% from the prior quarter, and four times from the year-ago period.\nOur reported return on tangible common equity for the quarter was 22.3%.\nAdjusting for the reserve release, ROTCE was 16% within our targeted range of 16 to 19%.\nTotal average loans were $101 billion, down 7% from the second quarter of last year.\nC&I loans were down $9 billion, reflecting decreased utilization levels.\nConsumer loans were up 9%, benefiting from continued growth from Laurel Road and, as Chris mentioned, record performance from our consumer mortgage business.\nCombined, we had over $4 billion of originations this quarter between our residential mortgage and Laurel Road production.\nConsumer loans grew 2%, again related to the continued strength from our consumer mortgage and Laurel Road.\nPPP average balances were $7.5 billion for the quarter, up from $7 billion in the first quarter.\nThe PPP balances ended the quarter at $5.7 billion, reflecting $2.8 billion of forgiveness, and $900 million of new production.\nAverage deposits totaled $144 billion for the second quarter of 2021, up $16 billion or 13% compared to the year-ago period, and up 5% from the prior quarter.\nWe continue to have a strong, stable core deposit base with consumer deposits accounting for over 60% of our total deposit mix.\nTaxable equivalent net interest income was 1.023 billion for the second quarter of 2021, compared to 1.025 billion a year ago, and 1.012 billion from the prior quarter.\nOur net interest margin was 2.52% for the second quarter, compared to 2.76% from the same period last year and 2.61% for the prior quarter.\nCompared to the prior quarter, net interest income increased $11 million and the margin declined nine basis points.\nFor the quarter, PPP loan fees, including the impact of forgiveness, totaled $50 million, up $2 million from the prior quarter.\nWe are maintaining around $20 billion in excess cash.\nCumulatively, excess liquidity has negatively impacted our net interest margin by about 35 basis points with seven basis points of incremental impact for the second quarter.\nNoninterest income was $750 million for the second quarter of 2021, compared to 692 million for the year-ago period and 738 million in the first quarter.\nCompared to the year-ago period, noninterest income increased 8%.\nWe had a record second quarter for investment banking and debt placement fees, which reached $217 million driven by a broad base across the platform, including strong M&A fees.\nCommercial mortgage servicing fees increased $32 million.\nCards and payments income also increased $22 million related to broad-based growth across product categories, including debit, credit, and merchant products.\nCompared to the first quarter, noninterest income increased by $12 million.\nTotal noninterest expense for the quarter was $1.076 billion, compared to 1.013 billion last year and 1.071 billion in the prior quarter.\nWe also grew senior relationship bankers by 5% year to date in our targeted focus areas, including renewables team that we added in May.\nEmployee benefit costs also increased $16 million as healthcare-related costs were low in the second quarter of last year.\nMarketing costs were up $5 million, primarily related to the launch of the Laurel Road for doctors.\nFor the second quarter, net charge-offs were $22 million or nine basis points of average loans.\nOur provision for credit losses was a net benefit of $222 million.\nNonperforming loans were $694 million this quarter or 69 basis points of period-end loans, a decline of $34 million from the prior quarter.\nWe ended the second quarter with a common equity Tier 1 ratio of 9.9%, which places us above our targeted range of 9 to 9.5%.\nWe repurchased $300 million of common shares during the quarter, and our board of directors authorized a second-quarter dividend of $0.185 per common share.\nAs Chris mentioned, combined, this return of capital represents $0.50 a share this quarter an annualized return of 11% of our current valuation.\nEarlier this month, the board of directors approved a new share repurchase authorization of up to $1.5 billion beginning in the third quarter of this year and continue through the third quarter of 2022.\nWe have reduced our net charge-off guidance once again, which is now expected to be in the 20 to 30-basis-point range for the year.\nAnd our guidance for the GAAP tax rate has increased to 20% for the full year, reflecting the higher expected earnings for this year.", "summaries": "We delivered another strong quarter with earnings per share of $0.72.\nEarlier this month, our board of directors approved a new share repurchase authorization of up to 1.5 billion beginning in the third quarter of this year and continuing through the third quarter of 2022.\nThe board will also evaluate an increase to our common stock dividend in the fourth quarter of 2021.\nAs Chris said, it was a strong quarter with net income from continuing operations of $0.72 per common share, up 18% from the prior quarter, and four times from the year-ago period.\nFor the second quarter, net charge-offs were $22 million or nine basis points of average loans.\nOur provision for credit losses was a net benefit of $222 million.\nEarlier this month, the board of directors approved a new share repurchase authorization of up to $1.5 billion beginning in the third quarter of this year and continue through the third quarter of 2022.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n1\n0\n0"}
{"doc": "Textron's revenues in the quarter were $3.7 billion, down $368 million from last year.\nDuring this year's fourth quarter, we recorded $23 million in pre-tax special charges, largely related to restructuring activities on industrial and Textron Aviation or $0.07 per share after tax.\nWe also recognized a one-time favorable tax benefit related to the sale of TRU Canada of $0.04 per share.\nExcluding special charges and the one-time favorable benefit, adjusted net income was $1.06 per share compared to $1.11 in last year's fourth quarter.\nManufacturing cash flow before pension contributions was $467 million, down $183 million from last year's fourth quarter.\nFor the full year, revenues were $11.7 billion, down from $13.6 billion a year ago.\nAdjusted net income was $2.07 per share compared to $3.74 last year.\nManufacturing cash flow before pension contributions was $596 million, as compared to $642 million last year.\nOur business has closed out the year with a strong operating performance in the fourth quarter, as we saw margin improvement in Systems, Industrial, and Bell that drove an increase in Textron's manufacturing margin to 8.8% on lower revenues.\nAt Bell, margins of 12.6% were up 30 basis points, as compared to the prior year despite lower military revenues and commercial volume.\nWe delivered 57 commercial helicopters, down from 76 in last year's fourth quarter.\nOn the military side, the Japanese officially began V-22 flight operations in November.\nThis continues the growth of the worldwide fleet of operating aircraft, which has amassed over 560,000 flight hours.\nLooking to Future Vertical Lift, Bell marked the third anniversary of the V-280's first flight in December, with the aircraft having now flown more than 200 hours.\nThis contract expands the scope of the services we currently provide into the program and it's worth up to $440 million over the next five years.\nAlso in the quarter, unmanned systems was awarded a $66 million contract for the U.S. Army for 36 Shadow aircraft.\nThe Shadow platform now has over 1.2 million flight hours globally.\nWe delivered 61 jets, down from 71 last year and 61 commercial turboprops, up from 59 in last year's fourth quarter.\nOn the new product front, Aviation began deliveries of the new King Air 360 with eight units in the quarter and announced the new King Air 260.\nThe flight test -- test program has completed over 400 flight hours and the aircraft is on track for entry into service in the second half of 2021.\nWith this backdrop, we're projecting revenues of about $12.5 billion for Textron's 2021 financial guidance.\nWe are projecting adjusted earnings per share in the range of $2.70 to $2.90 per share.\nManufacturing cash flow before pension contributions is expected to be in the range of $600 million to $700 million.\nSegment profit in the quarter was $324 million, down $16 million from the fourth quarter of 2019 on a $368 million decrease in revenues.\nRevenues at Textron Aviation of $1.6 billion were down 10%, primarily due to lower Citation jet volume and lower aftermarket volume.\nSegment profit was $108 million in the fourth quarter, down from $134 million a year ago, primarily due to the impact from lower volume and mix.\nBacklog in the segment ended the quarter at $1.6 billion.\nMoving to Bell, revenues were $871 million, down from $961 million last year, primarily on lower military revenues and commercial volume.\nSegment profit of $110 million was down $8 million, largely on the lower volume, partially offset by a favorable impact from performance, primarily reflecting higher favorable program adjustments.\nBacklog in the segment ended the quarter at $5.3 billion.\nAt Textron Systems, revenues were $357 million, down from $399 million a year ago, primarily due to lower volume at TRU Simulation and training.\nSegment profit of $49 million was up $16 million, primarily due to favorable performance.\nBacklog in the segment ended the quarter at $2.6 billion.\nIndustrial revenues were $866 million, a decrease of $61 million from last year, primarily due to reduced demand in the ground support equipment business within Specialized Vehicles.\nSegment profit was $55 million, up 25% from the fourth quarter of 2019, largely due to a favorable impact from pricing and inflation and favorable performance, partially offset by the impact of lower volume and mix.\nFinance segment revenues were $13 million and profit was $2 million.\nMoving below segment profit, corporate expenses were $50 million and interest expense was $36 million.\nWe recorded pre -- pre-tax special charges of $23 million in the quarter related to restructuring activities.\nFollowing the strong cash performance in the quarter, we ended the year with approximately $2.3 billion of cash on the balance sheet.\nThe $2.3 billion represents a higher-than-normal level of cash on hand, reflecting a prefunding of $500 million of 2021 debt maturities.\nDuring the quarter, we repaid $350 million of floating rate notes that matured in November and $362 million of outstanding borrowings on corporate-owned life insurance policies that were drawn in the first quarter for additional liquidity.\nIn the quarter, we also reactivated our share repurchase program and repurchased approximately 120 -- 129 million of shares.\nAt Textron Aviation, we're expecting higher revenues of about $4.5 billion, reflecting higher aircraft deliveries for both jets and turboprops, as well as, higher aftermarket revenues.\nSegment margin is expected to be approximately 5.5%, reflecting the higher volume and increased production.\nLooking to Bell, we expect slightly lower revenues of about $3.1 billion, reflecting lower military revenues from a lower H-1 production and aftermarket volume and lower commercial deliveries.\nWe're forecasting a margin of about 12.5%, largely reflecting the lower military and commercial revenues and increased R&D investments related to FLRAA and FARA.\nAt Systems, we're estimating higher 2021 rev -- revenues of about $1.4 billion.\nSegment margin is expected to be about 12.5%.\nAt Industrial, we're expecting segment revenues of about $3.4 billion, reflecting higher revenues at Kautex and Textron Specialized Vehicles.\nSegment margin is expected to be about 6%.\nAt finance, we're forecasting segment profit of about $10 million.\nWe're estimating 2021 pension income of about $30 million versus a pension cost of $33 million last year.\nOur 2021 pension, reflects the strong return on our pension assets for 2020 of 17.4% and a change to the amortization period for accumulated actuarial losses for one of our domestic plans, resulting in those losses being amortized over a longer period.\nOffsetting these favorable changes are a 75-basis point decrease in our discount rate to 2.7% and a decrease in our estimated long-term asset return of 50 basis points to 7.25%.\nR&D is expected to be about $600 million, up from $545 million in 2020.\nWe're estimating capex will be about $400 million, up from $317 million last year.\nMoving below the segment line and looking at Slide 12, we're projecting about $120 million of corporate expense, $135 million of interest expense, and a full-year effective tax rate of approximately 18%.\nOur full-year 2021 adjusted earnings per share guidance is $2.70 to $2.90 per share, which excludes $20 million to $30 million of pre-tax special charges for the completion of our previously announced restructuring plan and a pre-tax gain of about $10 million from the sale of TRU Canada.\nOur outlook assumes an average share count of about 227 million shares as we continue to deploy the majority of our free cash toward share repurchases in 2021.", "summaries": "Excluding special charges and the one-time favorable benefit, adjusted net income was $1.06 per share compared to $1.11 in last year's fourth quarter.\nWith this backdrop, we're projecting revenues of about $12.5 billion for Textron's 2021 financial guidance.\nWe are projecting adjusted earnings per share in the range of $2.70 to $2.90 per share.\nRevenues at Textron Aviation of $1.6 billion were down 10%, primarily due to lower Citation jet volume and lower aftermarket volume.\nBacklog in the segment ended the quarter at $1.6 billion.\nBacklog in the segment ended the quarter at $5.3 billion.\nOur full-year 2021 adjusted earnings per share guidance is $2.70 to $2.90 per share, which excludes $20 million to $30 million of pre-tax special charges for the completion of our previously announced restructuring plan and a pre-tax gain of about $10 million from the sale of TRU Canada.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n1\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "In addition, I was very pleased with the team's tireless effort in pursuit of rent collections, which improved to 91% in the fourth quarter.\nFollowing the payoff of our remaining $100 million balance on our revolver, we have over $100 million of cash and a fully undrawn $350 million revolver and are now positioned to take full advantage of our unique and valuable partnership with GIC and opportunistically execute on our external growth plans.\nSince our acquisition, Tesla announced a new $1.1 billion assembly plant.\nAnd Barshop & Oles announced plans for a new $1 billion mixed-use development directly across the highway from our property.\nThis quarter, we signed a total of 120,000 square feet, up 10% year-over-year.\nAt under $11.50 of ABR per square foot, we also see a solid mark-to-market opportunity upon release of these spaces.\nWe ended the fourth quarter with a signed but not open backlog of $3.2 million, up from $3 million last quarter.\nWe are currently tracking roughly $2 million of ABR that is currently in lease negotiation, up from about $1.5 million last quarter, giving us some visibility on offsets to potential future fallout.\nThese 11 projects consist of redemising, expanding or combining spaces similar to the 18 targeted remerchandising opportunities that we completed in 2019.\n94% of our portfolio by ABR remains open, unchanged from last quarter, with 4% of our closures tied to our theaters.\nWith that in mind, we established a $0.075 per share common dividend for the first quarter of 2021.\nFor the fourth quarter, our bad debt and abatements were $4.4 million, about the same as the third quarter.\nWe reserved about 89% of our uncollected fourth quarter recurring billings, leaving limited downside from these categories relative to our fourth quarter run rate.\nAs of year-end, $18.1 million of recurring billings for the period of April through December 2020 remain outstanding, of which $11.9 million have been reserved.\nWe expect most of the unreserved amount of $6.2 million to be paid back over the course of 2021 and 2022.\nWe continue to be quite pleased with the resiliency of our portfolio and our limited bankruptcy exposure as our leased rate of 92.8% held up well in the quarter, down just 50 basis points sequentially, primarily driven by the recapture of our two Stein Mart leases that I noted last quarter.\nBlended rent spreads for the quarter remained positive at 3.4%, impacted by a few flat strategic renewals.\nThe leases that we signed during the quarter, annual contractual rent increases, were about 150 basis points, which is a key contributor to creating a long-term sustainable NOI growth profile.\nAnd as Brian noted in his remarks regarding dividend policy, we have placed a premium on free cash flow, allowing us to utilize our cheapest form of capital to take advantage of these opportunities as we restabilize our portfolio to pre-COVID leased rate levels of nearly 95%.\nCouple this distinction with an increased confidence in our business and in our access to low-cost debt capital, we no longer felt the need to maintain an outsized cash balance and repaid the remaining revolver balance of $100 million last week.\nWe ended the fourth quarter with trailing 12-month net debt to pro forma adjusted EBITDA of 7.4 times, up slightly from 7.2 times last quarter as another COVID-impacted quarter entered the calculation.\nWe remain committed to bringing leverage into our long-term target range of 5.5 to 6.5 times and expect to see steady improvement in EBITDA as we return to more normalized reserve levels and as our signed leasing backlog begins to kick in over the course of 2021.\nWe are establishing 2021 operating FFO per share guidance of $0.77 to $0.87, which is an expected improvement over the annualized 2020 fourth quarter operating FFO per share of $0.72.\nKey drivers from there are a favorable impact of $0.03 from interest expense, primarily due to the repayment of our revolving line of credit, and $0.02 from our signed not open backlog that we expect the vast majority to open ratably in 2021.\nWhile our assumption is that these circumstances will improve over the course of '21, we felt establishing a wider range was appropriate given the potential varying outcomes for our theater exposure, which represent about $0.10 per share of earnings.\nAlso, while acquisitions are not assumed in our guidance range, we intend to redeploy $100 million of cash on the balance sheet into opportunistic acquisitions that meet our strict underwriting standards, representing upside to our range.\nAs part of our ongoing efforts to improve our disclosures, this quarter we added a net asset value page to our supplemental on page 14 to help facilitate your analysis of our real estate value.", "summaries": "As of year-end, $18.1 million of recurring billings for the period of April through December 2020 remain outstanding, of which $11.9 million have been reserved.\nWe are establishing 2021 operating FFO per share guidance of $0.77 to $0.87, which is an expected improvement over the annualized 2020 fourth quarter operating FFO per share of $0.72.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "Our net sales improved 11.6% over 2019 to $1.28 billion, the highest in the company's history, driven by strong sales volume.\nAs a result, we generated record earnings of $4.27 per diluted share, up 43.3% over 2019.\nThe health, safety and well-being of all our employees remains our Number 1 priority and we will strive for continuous improvement to ensure Simpson remains a safe and rewarding place to work.\nOur goal was to achieve a compounded annual growth rate in net sales of approximately 8% from 2016 to 2020.\nAs of the year end of 2020, we had well exceeded this target, achieving a compounded annual growth rate over 10% relative to our 2016 baseline.\nMilestones that helped support this goal included price increase for the majority of our US wood connector products in the third quarter of 2018, the signing of one of our largest US homebuilding companies onto our builder program resulting in 23 of the Top 25 US builders now engaged on our program, strong repair and remodel trends associated with the COVID-19 pandemic and the return of Lowe's as the home center customer in mid-2020.\nWe aimed to reduce our total operating expense as a percent of net sales from 31.3% in 2016 to a range of 26% to 27% by the end of 2020.\nFor the full year of 2020, we recorded operating expenses as a percent of net sales of 25.6%, representing 570 [Phonetic] basis points of improvement compared to 2016.\nOur next plan was to improve our operating income margin to a range of 16% to 17% by the end of 2020.\nWe reported an operating income margin of 19.9% for 2020, a 350 basis point improvement compared to 16.4% in 2016.\nBy focusing on these higher margin products to increase profitability, we exceeded our goal of improving our global concrete gross margin from 34.7% in 2016 42% in 2020.\nAs a result, we achieved an operating income margin of 7% excluding our SAP costs of approximately $2.5 million in 2020.\nWhile this is lower than our original target range of 8% to 9%, we are pleased with the results, which reflect approximately 350 basis points of improvement versus the 2016 numbers.\nWe've completed a three-phase SKU reduction program, eliminating upwards of 12,000 non-moving or slow-moving items and converted our customers over to replacement products.\nThe final element of our 2020 plan was focused on maximizing shareholder value with the goal of improving our return on invested capital from 10.5% in 2016 to a range of 15% to 16% by the end of 2020.\nThrough our solid operational execution, combined with the enactment of the US Tax Cuts and Jobs Act of 2017, which lowered our effective income tax rate beginning in 2018, we surpassed this target, ending 2020 with the return on invested capital of 20%.\nIn 2020, we returned $116.2 million to our stockholders through the payments of $40 million in dividends and $76.2 million in share repurchases.\nSince the onset of the 2020 plan, we have returned over 83% of our cash generated by operations to our shareholders, far exceeding our target of 50% I'm extremely proud of all that we've accomplished in these past three years and by executing on the 2020 plan, we achieved solid organic growth, we've rationalized our cost structure to improve companywide profitability and we've improved our working capital management and balance sheet position, in turn creating value for all key Simpson stakeholders.\nOur fourth quarter consolidated net sales grew 12% year-over-year to $293.9 million on significantly higher volume.\nGross margin increased to 42.1% from 41.9% in the prior year quarter, primarily related to strength in Europe, where we experienced lower material and warehouse costs.\nOur solid gross margin combined with effective expense management and reduced costs from travel and other restrictions as a result of the COVID-19 drove a 7.8% year-over-year increase in our income from operations to $39.5 million and earnings of $0.68 per diluted share.\nGrowth was supported by our product rollout of our connectors, mechanical anchors and fastener product solutions into all 1737 Lowe stores, which we completed during the fourth quarter.\nOur sales were further supported by solid US housing starts, as we generally experience a multiple month lag in the demand from the time of the start, in the fourth quarter, we benefited from strong third quarter 2020 housing starts which grew over 11% year-over-year.\nWe are also very pleased to be in a position to pay off our line of credit borrowing in pool, as well as declare our quarterly dividend as we have done consistently since 2004.\nWith another quarter of strong year-over-year growth in housing starts, which were up over 11% in the fourth quarter of 2020, we believe housing will continue to be a key element of the economic recovery in the coming years ahead and we are well positioned to capitalize on this environment.\nAs Karen highlighted, our consolidated net sales were strong, increasing 12% to $293.9 million.\nWithin North America segment, net sales increased 9.8% to $249.1 million primarily due to higher sales volumes in our home center distribution channel, which includes our home center and co-op customers.\nIn Europe, net sales increased 24.9% to $41.8 million primarily due to higher sales volumes in local currencies.\nWood construction products represented 85% of total sales compared to 83% and concrete construction products represented 15% of total sales compared to 17% last year.\nConsolidated gross profit increased by 12.4% to $123.7 million, which resulted in a stronger Q4 gross margin of 42.1% compared to last year.\nGross margin increased by 20 basis points, primarily due to lower material and warehouse costs, which were partially offset by higher labor costs.\nOn a segment basis, our gross margin in North America declined to 43.2% compared to 43.9%, while in Europe, gross margin increased to 25.3% compared to 29.9%.\nFrom a product perspective, our fourth quarter gross margin on wood products was 41.8% compared to 40.8% in the prior year quarter and was 39.6% for concrete products compared to 43.7% in the prior year quarter.\nResearch and development and engineering expenses increased 10% to $12.9 million primarily due to personnel costs, stock-based compensation, product testing and cash profit sharing expenses.\nSelling expenses decreased 1.2% to $27.8 million due to lower travel and entertainment and advertising and trade show expenses, partly offset by higher personnel costs, cash profit sharing, sales commissions and stock-based compensation expense.\nOn a segment basis, selling expenses in North America were down 2.1% and in Europe, they were mostly flat.\nGeneral and administrative expenses increased 10.9% to $43.6 million primarily due to increases in cash profit sharing, stock-based compensation and software subscriptions and licenses.\nTotal operating expenses were $84.3 million dollars, an increase of $5.1 million or approximately 6.5%.\nAs a percentage of net sales, total operating expenses were 28.7%, an improvement of 150 basis points compared to 30.2%.\nOur solid topline performance combined with our stronger Q4 gross margin and diligent management of costs and operating expenses helped drive a 7.8% increase in consolidated income from operations to $39.5 million compared to $36.6 million.\nIn North America, income from operations decreased 1.8% to $36.1 million.\nIn the fourth quarter of 2019 North America income from operations included a $5.6 million gain on the sale of a selling and distribution facility.\nIn Europe, income from operations increased 145.8% to $1.3 million primarily due to increased gross profit.\nOn a consolidated basis, our operating income margin of 13.4% decreased by approximately 50 basis points.\nOur effective tax rate increased to 25.6% from 22.3% due to the release of foreign valuation allowances in 2019.\nAccordingly, net income totaled $29.6 million or $0.68 per fully diluted share compared to $28.1 million or $0.63 per fully diluted share.\nAt December 31, cash and cash equivalents totaled $274.6 million, an increase of $44.4 million compared to December 31, 2019 after paying down the remaining $75 million on our revolving credit facility during the quarter.\nAs of December 31, 2020, the full $300 million on our primary line of credit was available for borrowing.\nOur inventory position of $283.7 million at December 31 increased by $23.6 million from our balance at September 30 as we continue to see higher levels of construction activity along with the unprecedented demand we've experienced through the pandemic.\nWe continue to be highly selective in regard to inventory purchases through careful management and purchasing practices along with maintaining our high level -- high levels of customer service and on-time delivery standards As a result of our improved profitability and effective working capital management, we generated strong cash flow from operations of $77.5 million for the fourth quarter of 2020, an increase of $21.1 million or 37.4%.\nFor the full year of 2020, we generated $207.1 million of cash flow from operations, which increased nearly $1.5 million.\nDuring the fourth quarter, we used approximately $17 million for capital expenditures.\nFor the full year of 2020, capital expenditures were approximately $37.9 million, in line with our reduced expectations as a result of our focus on cash preservation in mid-2020 due to COVID-19.\nWe were also pleased to have paid $40.4 million in dividends in fiscal 2020 including $10.2 million in the fourth quarter.\nIn addition, we repurchased approximately 1.05 million shares of our common stock in 2020 at an average price of $72.33 per share for a total of $76.2 million.\nThis includes approximately 151,000 shares of our common stock that we repurchased during the fourth quarter at an average price of $89.49 per share for a total of $13.5 million.\nAs our authorization for repurchases of common stock expired at year-end, on December 16, our Board of Directors authorized the repurchase of up to $100 million of our common stock, which went into effect on January 1, 2021 and runs through December 31, 2021.\nIn addition, on January 22, our Board of Directors declared a quarterly cash dividend of $0.23 per share, which will be payable on April 22, 2021 to stockholders of record as of April 1, 2021.\nOperating margin is estimated to be in the range of 16.5% to 18.5%.\nThe effective tax rate is estimated to be in the range of 25% to 26% including both federal and state income taxes and capital expenditures are estimated to be in the range of $50 million to $55 million including approximately $10 million to $13 million, which will be used for maintenance capex.", "summaries": "Our fourth quarter consolidated net sales grew 12% year-over-year to $293.9 million on significantly higher volume.\nOur solid gross margin combined with effective expense management and reduced costs from travel and other restrictions as a result of the COVID-19 drove a 7.8% year-over-year increase in our income from operations to $39.5 million and earnings of $0.68 per diluted share.\nAccordingly, net income totaled $29.6 million or $0.68 per fully diluted share compared to $28.1 million or $0.63 per fully diluted share.\nOperating margin is estimated to be in the range of 16.5% to 18.5%.\nThe effective tax rate is estimated to be in the range of 25% to 26% including both federal and state income taxes and capital expenditures are estimated to be in the range of $50 million to $55 million including approximately $10 million to $13 million, which will be used for maintenance capex.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "These comments are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.\nThis demand, combined with meaningful contributions from our recent acquisitions, drove the company to $200 million in net sales and more than 50% revenue growth for a second consecutive quarter.\nOn organic basis, sales grew 20% compared to the prior year period which marks three consecutive quarters of 20% or more organic growth.\nAnd as such, we are reaffirming our previous 2021 adjusted earnings per share guidance of $0.90 to $1.05 per share.\nNet sales were up $68 million, an increase of 51%.\nExcluding the impact of the Elkhart and Trilogy acquisitions, organic net sales increased 20% driven by price, which contributed 13%.\nHigher volume mix contributed 7%.\nAdjusted gross profit increased $7.2 million, while gross margin decreased from 35.6% in the prior year to 27.2% in the third quarter.\nIncluded in cost of sales was a $1.6 million increase related to the LIFO inventory reserve.\nAdjusted operating income decreased $3.1 million to $12.5 million due to increased SG&A, driven by the addition of Elkhart and Trilogy along with higher compensation cost and higher professional fees.\nAdjusted SG&A as a percentage of sales decreased to 20.9% in the third quarter compared to 23.8% in the prior year as we are experiencing the benefits of our overall larger scale on our infrastructure.\nAdjusted EBITDA was $17.3 million, a decrease of $2.3 million compared to the prior year.\nAdjusted EBITDA margin was 8.6%.\nAnd lastly, adjusted earnings per share was $0.23, a decrease of $0.07 or 23% compared to the prior year.\nBeginning with Material Handling, net sales increased $63 million or 73%, including the Elkhart and Trilogy acquisition.\nOn an organic basis, Material Handling net sales increased 26%, driven by favorable price of 18%.\nStrong volume mix contributed another 7% and FX, 1%.\nMaterial Handling adjusted operating income decreased $1.3 million or 8% to $15.2 million.\nIn the Distribution segment, sales increased $5 million or 11%.\nVolume mix contributed 6%, resulting from increases across both equipment and supplies and price contributed 5%.\nDistribution's adjusted operating income decreased $700,000 to $4.4 million due to an increase in SG&A expenses, which were more than offset higher volume mix and favorable price-to-cost relationship.\nFree cash flow was negative $13.8 million compared with positive free cash flow of $16.2 million for the third quarter of 2020.\nCash from operations decreased in the quarter due to increases in working capital, driven by a $14 million and an $8 million increase in accounts receivable and inventory, respectively, combined with a $3 million decrease in trade accounts payable.\nAdditionally, capital expenditures were $6 million in the quarter.\nYear-to-date free cash flow was essentially flat, down $700,000.\nCash on hand at quarter end was $15 million.\nWe ended the third quarter with leverage at 1.8 times.\nWe anticipate net sales to increase in the mid- to high 40% range attributed to both organic growth and acquisitions.\nOur previous sales guidance was in the mid-40% range.\nElkhart's annual net sales at the time of acquisition were approximately $100 million and Trilogy's annual net sales were roughly $35 million.\nTaking these considerations into account, we are reaffirming our 2021 outlook for adjusted earnings per share of $0.90 to $1.05 per share.\nOur guidance reflects a weighted average share count of 36.5 million shares and the addition of the newly acquired Trilogy business.\nOur key modeling assumptions include depreciation and amortization expenses of approximately $22 million and capex of approximately $16 million to $19 million, up slightly from our previous capex guidance of $15 million to $18 million.\nThe effective tax rate is forecast to approximate 26%.\nAs we continue to execute the remainder of Horizon 1, we'll have the necessary foundation, knowledge and track record to move into Horizon two.\nE-commerce is showing encouraging results with year-to-date sales up approximately 30%.\nAs a reminder, the integration of Elkhart has also gone well, helping us better serve our customers and capture growth synergies and $4 million to $6 million of cost synergies, both of which exceed expectations.\nE-commerce is showing encouraging results with year-to-date sales up approximately 30%.\nAnd as a reminder, the integration of Elkhart has also gone well, helping us better serve our customers and capture growth synergies and $4 million to $6 million of cost synergies, both of which exceeded our expectations.\nThe deployment of our certain leadership training is underway and 50 of our leaders have already completed this training and are applying it in their work lives.\nWe have an additional 50 going through the program in early 2022.\nAt our senior manager levels and above, we've increased our hiring and promotion of female minority candidates as a percent of total hirings by more than 100% versus past years.", "summaries": "And as such, we are reaffirming our previous 2021 adjusted earnings per share guidance of $0.90 to $1.05 per share.\nAnd lastly, adjusted earnings per share was $0.23, a decrease of $0.07 or 23% compared to the prior year.\nWe anticipate net sales to increase in the mid- to high 40% range attributed to both organic growth and acquisitions.\nOur previous sales guidance was in the mid-40% range.\nTaking these considerations into account, we are reaffirming our 2021 outlook for adjusted earnings per share of $0.90 to $1.05 per share.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "I believe our performance to date reflects that balance.\nFor the quarter, total segment EBIT was $84 million, and adjusted earnings per share was $0.68, up $0.75 on a sequential basis.\nPerformance Chemicals results also improved in the quarter, as automotive-related demand began a recovery and our self-help initiatives took hold.\nWe continued our intense focus on cash generation, delivering $99 million in operating cash flow in the quarter and $248 million for the second half, well ahead of our previously communicated expectation of $200 million of operating cash flow in the back half of the year.\nOn the performance front, we delivered adjusted earnings per share $2.08.\nDuring the year, we delivered strong operating cash flow of $377 million and free cash flow of $177 million, largely through tight working capital management.\nChina is a good example of where COVID transmission has remained low and the economy is strengthening with GDP up 5% year-over-year in the September quarter.\nAutomotive production represents approximately 25% of our sales, ranging from tires on new cars to a host of applications in Performance Chemicals, such as structural adhesives, batteries, coatings and plastics.\nExternal forecasting firms report light vehicle auto production down 3% year-over-year globally in the September 2020 quarter, as compared to a decline of 43% in the June quarter.\nCurrent industry forecast calls for an 18% drop in global auto builds for the full year, including a small decrease of 3% for the December quarter.\nGlobal replacement tire industry sales are now expected to decline 12% for the full calendar year of 2020 based on estimates from LMC.\nLight vehicle replacement tire sales improved in all regions in the September quarter, down only 6% year-over-year, compared to a decline of 31% in the June quarter.\nAs with auto production, the December quarter is expected to approach 2019 levels with total replacement tire sales projected to be down 2% year-over-year according to LMC.\nGiven the global economic environment, the Reinforcement Materials segment delivered strong operating results with EBIT down $12 million, compared to the same quarter in fiscal 2019, but up $64 million sequentially, driven by improved global tire and automotive demand as compared to our third fiscal quarter.\nGlobally, volumes declined by a 11% in the fourth quarter, as compared to the same period of the prior year, largely due to the impact of COVID and demand in Europe, the Americas, Japan and Southeast Asia.\nEBIT increased by $4 million, as compared to the third fiscal quarter, driven by higher demand in automotive-related applications.\nEBIT decreased by $16 million year-over-year, primarily due to 9% lower volumes in our Formulated Solutions business from the impact of COVID-19, a more competitive pricing environment in our fumed metal oxides product line, and a weaker product mix in our specialty carbons and fumed metal products -- metal oxides product lines from lower demand in automotive applications.\nIn the fourth quarter, volumes increased 2% year-over-year in Performance Additives, driven by increased volumes related to our recent energy materials acquisition.\nSequentially, Performance Additives volumes increased 3% and Formulated Solutions volumes increased by 1%, while we are pleased to see the sequential improvement in volumes, segment volumes continue to be impacted by the pandemic, particularly in demand for automotive and construction applications.\nMoving to Purification Solutions, EBIT in the fourth quarter of 2020 decreased by $3 million, compared to the fourth quarter of last year.\nWe ended the quarter with a cash balance of $151 million and our liquidity position remains strong at $1.4 billion.\nDuring the fourth quarter of fiscal 2020, cash flow from operating activities were $99 million, including a decrease in net working capital of $7 million.\nCapital expenditures for the fourth quarter of fiscal 2020 were $38 million, an additional uses of cash during the fourth quarter included $20 million for dividends.\nDuring fiscal 2020 we generated $377 million of cash flow from operations, including a decrease in working capital of $185 million.\nCapital expenditures for fiscal year 2020 were $200 million, which included both our targeted growth investments and the spend related to the North American EPA compliance.\nAdditional uses of cash during the fiscal year included $80 million for dividends and $44 million for share repurchases.\nDuring the fourth quarter, the operating tax rate for fiscal year 2020 was 28% and we anticipate our operating tax rate for fiscal '21 to be in the range of 28% to 30%.\nWe expect capital expenditures to be between $175 million and $200 million in 2021 and this estimate includes continued EPA-related compliance spend and capital related to upgrading our new China carbon black plant to produce specialty products.\nBased on this, we expect adjusted earnings per share in the first quarter to be in the range of $0.80 to $0.90.", "summaries": "I believe our performance to date reflects that balance.\nFor the quarter, total segment EBIT was $84 million, and adjusted earnings per share was $0.68, up $0.75 on a sequential basis.\nPerformance Chemicals results also improved in the quarter, as automotive-related demand began a recovery and our self-help initiatives took hold.\nDuring the fourth quarter of fiscal 2020, cash flow from operating activities were $99 million, including a decrease in net working capital of $7 million.\nBased on this, we expect adjusted earnings per share in the first quarter to be in the range of $0.80 to $0.90.", "labels": "1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "With regard to our financial performance for the three months ended September 30th, 2020, the Company's net sales decreased by 6% to $117 million as compared to sales of $125 million this time last year.\nWithin that overall decline, our US sales were down about $7.5 million and our international sales were flat.\nInternational sales accounted for 43% of net -- of total net sales as compared to 41% of net sales this time last year.\nIn our US crop market, sales were affected by reduced cotton acres, which according to USDA statistics, are down about 11% or 1.5 million acres in 2020.\nAs a result of these various dynamics, gross margin performance in the quarter reduced from 38% to 37% and for the nine-month period from 39% to 38%.\nGenerally speaking, over the long term our net factory costs amount to about 2.5% of net sales, reflecting some latent capacity in our plants should the need arise.\nIn the third quarter our factories cost approximately 2.4% of sales as compared to 2% this time last year.\nFor the first nine months, the net factory costs amounted to 1.6% as compared to 2.4% of net sales for the same period of 2019.\nOn the other hand, we did record a benefit of approximately $1 million during the third quarter because we completed an update to our environmental risk assessment related to the Brazilian business we acquired at the start of 2019 which led to a decrease in our liability in this regard.\nThe reported reduction actually understates the real improvement because in 2019 we benefited from adjustments to earn out liabilities related to past acquisitions in the amount of $3.5 million that did not recur this year.\nAs a result, our underlying costs are down approximately $5.5 million or 5% for the nine months.\nIf we had used the 2019 exchange rates for both the three and nine-month periods of 2020, our reported net sales would have increased for the three months by $3 million and for the nine months by $7 million.\nWhen looking at gross margin, we would have recorded additional gross margin of $700,000 in the three-month period and $1.7 million year-to-date.\nIn the three-month period, we earned $0.10 per share as compared to $0.11 per share in the same period of the prior year.\nFor the nine-month period, we earned $0.25 per diluted share as compared to $0.34 per share last year.\nAt the end of September 2020, our inventories were at $176 million as compared to $186 million this time last year.\nThe underlying period-over-period improvement in our base inventory before the impact of recent acquisitions amounted to approximately $14 million or 7.5%.\nIn previous conference calls, we expected to end in the region of $145 million.\nIn addition, the new acquisitions that Eric will mention in a moment are expected to add approximately $15 million at December 31st, 2020.\nAccordingly, our latest forecast is to end the year at approximately $160 million to $165 million, effectively flat with 2019, but including the addition of inventory from recent acquisitions.\nDuring the period of the year when we typically expand working capital, we have contained the increase to only $5 million as compared to adding $49 million in the same period of 2019.\nIn the first nine months of 2020 we have generated $19 million from operations as compared to using $21 million in the first nine months of 2019.\nComparatively that amounts to a positive change of $40 million period-over-period.\nAt September 30th, 2020 net indebtedness ended at $149 million as compared to $165 million this time last year.\nDuring the last year, in addition to paying down $16 million in debt, we have funded more than $27 million in investments, including fixed assets, product acquisitions and technology investments from the cash generated from operations.\nWith regard to liquidity at the end of the third quarter, availability under our credit line was $45 million, which compares to $30 million at the same point in 2019.\nUsing 2019 numbers as a reference, let's build a model using a baseline of annual sales of $468 million.\nIf we were to grow at a rate of only 2% per year, we should be at $507 million by year three and $527 million by year five in organic growth.\nAs these new products get traction and we continue adding new introductions, we expect that we will add another $37 million by year three and $109 million by year five.\nThe core business plus new pipeline products puts us at $544 million by year three and $636 million by year five.\nIf out of conservatism, we cut that number in half to $20 million per year and extrapolate it forward, we find that our incremental acquisition growth that put us at $60 million by year three and $100 million by year five.\nThe core business plus new product pipeline acquisitions puts us at a three-year top line target of $604 million and a five-year target of $736 million.\nThrough the end of the third quarter of 2020, we had already been on track to sell approximately $22 million in green products this year, including biologicals, bio-nutritional products through both our domestic and international businesses and essential oil products through Envance which are the active ingredients in Procter & Gamble's Zevo line of consumer products.\nWe expect that with the addition of Agrinos, the growth of our other biologicals and the expansion of Envance/TyraTech we should see incremental revenues in year three of $48 million and in year five of $118 million.\nThat would take us to about $70 million in year three and $140 million in year five.\nUsing conservative estimates of market penetration and domestic markets only, we are targeting top line contribution on the order of $35 million in year three and $131 million in year five.\nIf we add Core plus Green plus SIMPAS we are in the neighborhood of $687 million in year three and $985 million in year five at the top line which is roughly double where we are today.", "summaries": "With regard to our financial performance for the three months ended September 30th, 2020, the Company's net sales decreased by 6% to $117 million as compared to sales of $125 million this time last year.\nIn the three-month period, we earned $0.10 per share as compared to $0.11 per share in the same period of the prior year.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Gasoline demand is currently 2% to 5% below 2019 levels, with the West Coast still lagging at about 10% down.\nOverall, jet demand remains down nearly 30% below pre-pandemic levels.\nIn conjunction with the close, we announced our plans to return $10 billion of sale proceeds to shareholders through share repurchases.\nAs part of our commitment to quickly return capital, we immediately launched a modified Dutch auction tender offer in which we were able to repurchase nearly $1 billion worth of shares.\nAt approximately 180 million gallons per year, Dickinson is the second largest renewable diesel facility in the United States.\nBased on our progress and discussion with feedstock suppliers, we're confident in the time line we have set to begin producing renewable diesel in the second half of 2022, with approximately 260 million gallons per year of capacity.\nAdditionally, we expect to reach full capacity of approximately 730 million gallons per year by the end of '23.\nIn the first half of 2021, our operating results reflect our goal to reduce overall refining cost structure by $1 billion.\nFirst, a 30% reduction in our Scope 1 and Scope 2 greenhouse gas emissions intensity by 2030.\nSecond, a 50% reduction in midstream methane intensity by 2025.\nAnd lastly, a 20% reduction in our fresh water withdrawal intensity by 2030.\nWe've allocated 40% of our growth capital in 2021 to help advance two significant renewable fuels projects.\nIn 2020, our teams demonstrated strong safety and environmental performance, including a nearly 40% reduction in the most significant process safety events and a 40% reduction in designated environmental incidents over 2019.\nAdjusted EBITDA was $2.194 billion for the quarter.\nCash from continuing operations, excluding working capital, was $1.535 billion, which is approximately $1 billion increase from the prior quarter.\nAnd for the first time in nearly 18 months, we generated ongoing operating cash flow that exceeded the needs of the business, capital commitments, as well as covered our dividend and distributions.\nFinally, we returned nearly $1.4 billion of capital to shareholders this quarter through dividend payments and share repurchases.\nWe received total proceeds for the sale of Speedway of $21 billion.\nBased on our tax basis, our cash taxes, current and deferred, will be approximately $4.2 billion, which is lower than our original $4.5 billion estimate.\nIn addition, we had closing adjustments of approximately $400 million.\nTherefore, the after-tax proceeds from the sale will be $17.2 billion.\nTo be clear, this number is higher than our initial $16.5 billion estimate.\nSince the close of the transaction, we have reduced structural debt by $2.5 billion and purchased approximately $1 billion of stock.\nThat said, not repurchasing during that limited window is not indicative of any deviation from our commitment to complete within 12 to 16 months.\nConsistent with that commitment, as Mike mentioned earlier, we are commencing the next steps to complete the remaining $9 billion return of capital.\nSince the beginning of 2020, we have made a step change in our refining operating cost and decreased our overall cost profile by approximately $1 billion.\nWhile there is quarter-to-quarter variability, our refining operating cost in 2020 began at $6 per barrel and are now trending at a quarterly average of roughly $5 per barrel for 2021.\nWe believe we have lowered our overall cost structure by more than $100 million, and we are committed to challenging ourselves every day on ways to reduce expenses.\nThese costs have recently increased nearly $1 per MMBtu, and we anticipate this being a headwind for the third quarter.\nAdjusted EBITDA was more than $600 million higher quarter over quarter, driven primarily by refining and marketing.\nHere, you can see the $11.7 billion pre-tax gain on the sale reflected in the adjustments column of $11.6 billion, which includes other adjustments of $79 million for impairment and transaction-related costs.\nThe $3.7 billion financial tax -- excuse me, financial tax provision reflects the net impact of cash taxes and deferred tax impact.\nThe resulting $8 billion gain on sale is reflected in our quarterly net income.\nThe business recorded the second consecutive quarter of positive EBITDA since the start of the COVID pandemic with adjusted EBITDA of $751 million.\nThis was an increase of $728 million when compared to the first quarter of 2021.\nThe increase was driven primarily by higher refining margins, especially in the Mid-Con region as that region's cracks improved 57% from the first quarter.\nAlso contributing to the improved results was higher utilization, which was 94% for the second quarter versus 83% in the first quarter.\nIf adjusted to include that capacity idled in 2020, utilization would have been approximately 78% in the first quarter of '21 and subsequently increased to 89% in the second quarter of '21.\nBy the end of 2021, we estimate that MPLX will have decreased their structural cost by $300 million.\nWithin continuing operations, operating cash flow before changes in working capital was $1.5 billion in the quarter.\nIncreasing crude prices provided a source of more than $500 million, which was mostly offset by the large receivable balance with Speedway becoming a third-party customer and typical seasonal refined product inventory builds.\nDuring the quarter, MPC decreased debt by $3.3 billion.\nAdditionally, MPLX reduced third-party debt by approximately $800 million during the quarter.\nWith respect to capital return, MPC returned $380 million to shareholders through our dividend and repurchased $981 million worth of shares using Speedway proceeds.\nAt the end of the quarter, NPC had $17.3 billion in cash and higher returning short-term investments, such as commercial paper and certificates of deposits.\nWe expect total throughput volumes of roughly 2.8 million barrels per day.\nPlanned turnaround costs are projected to be approximately $195 million in the third quarter.\nTotal operating costs are projected to be $5.05 per barrel for the quarter.\nDistribution costs are expected to be approximately $1.3 billion for the quarter.\nCorporate costs are expected to be $175 million, consistent with the second quarter and reflecting the approximately $100 billion -- $100 million, excuse me, in cost that have been removed on an annual basis.", "summaries": "Based on our progress and discussion with feedstock suppliers, we're confident in the time line we have set to begin producing renewable diesel in the second half of 2022, with approximately 260 million gallons per year of capacity.\nConsistent with that commitment, as Mike mentioned earlier, we are commencing the next steps to complete the remaining $9 billion return of capital.\nWithin continuing operations, operating cash flow before changes in working capital was $1.5 billion in the quarter.", "labels": 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{"doc": "Earnings for the quarter were $0.95 per share compared to $0.94 in the prior year quarter.\nAdjusted earnings per share increased to $2.14 in the quarter compared to $1.33 in 2020.\nNet sales in the quarter were up 34% from the prior year primarily due to increased volumes across all segments, favorable foreign currency translation, and the pass-through of higher material cost.\nSegment income improved to $395 million in the quarter compared to $250 million in the prior year primarily due to higher sales unit volumes including recovery in many locations affected by COVID in last year's second quarter.\nAs outlined in the release, we currently estimate third quarter 2021 adjusted earnings of between $1.90 and $2 per share.\nWe are increasing the midpoint of our full year adjusted earnings guidance from $6.70 per share to $7.35 per share again assuming the sale of the Europe Tinplate business closes at the end of August.\nOur expected adjusted tax rate for the full year remains at 24% to 25%.\nAverage segment income from continuing operations over the last four quarters, or last 12 months June 2021 is approximately $100 million per quarter higher than the average of the four preceding quarters or LTM June 2020, with approximately $60 million of that income growth found in the Americas Beverage segment, clearly a step change in our earnings outlook.\nHad the business been included in continuing operations, LTM June EBITDA would have approximated $2.1 billion.\nBefore reviewing the operating segments, we remind you that delivered aluminum in North America is approximately 65% higher today than at this time last year.\nIn Americas Beverage demand remained strong across all the markets we serve with overall segment volumes up 18% compared to the second quarter of 2020.\nFirst half '21 versus first half '19 volumes advanced 19%.\nUnit volumes in European Beverage advanced 28% over the prior year second quarter, and 14% for the first half compared to the first half of 2019.\nAsia-Pacific recorded 15% volume growth in the quarter, and 8% for the first half versus the first half of 2019, as most operations across Southeast Asia were able to grow despite numerous COVID lockdowns and movement control orders.\nSegment income, and adjusted earnings in the first half up 50% to 60% over the prior year, and leverage at 3.6 times after repurchasing $300 million of company common stock is ahead of plan.", "summaries": "Earnings for the quarter were $0.95 per share compared to $0.94 in the prior year quarter.\nAdjusted earnings per share increased to $2.14 in the quarter compared to $1.33 in 2020.\nAs outlined in the release, we currently estimate third quarter 2021 adjusted earnings of between $1.90 and $2 per share.", "labels": "1\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We closed our merger of equals with IBERIABANK, we acquired the 30 branches from SunTrust Truist, really excited about that.\nAnd as we've talked about over the last ten years or 12 years, we have really significantly restructured the balance sheet and the focus is more on C&I.\nWe had net charge-offs of 44 basis points during the quarter and we saw a slight tick up in nonperforming assets, but we ended the period with about $1.3 billion of capacity for loss taking.\nWe captured another $8 million of run rate, excuse me of run rate in our quest for $170 million plus in expense savings.\nWe came in with a CET1 ratio of 9.15%.\nI feel like we're well positioned in terms of a strong balance sheet, strong while taking capacity, strong capital and also positioned with a tailwind in the sense that we have our non -- our counter-cyclical businesses and we also have the ability to realize a significant amount of cost savings over the next 18 months to 24 months.\nWe generated net interest income of $532 million in the quarter, up $227 million linked quarter, driven by the impact of the merger.\nThird quarter results included a $44 million benefit from accretion or about 12 basis points on the NIM which was modestly higher than we originally expected given higher prepayments.\nReported NIM came in at 2.84% in the quarter, down 6 basis points, reflecting the impact of low rates and continued elevated levels of liquidity, somewhat offset by accretion.\nOur deposit rate paid was down again this quarter with interest bearing deposit costs down to 36 basis points.\nOur goal is to manage down interest bearing deposit cost toward the levels we saw in a prior zero interest rate cycle back in 2015 of around 24 basis points.\nWe estimate excess cash to lower the third quarter margin approximately 12 basis points.\nWe averaged about $3 billion of excess cash, which grew to $4.5 billion at quarter end.\nMoving on to Slide 8 and 9, I would note that here, we have provided our results versus prior period combined results for FHN and IBERIA.\nWe delivered solid performance in fee income again in the third quarter with relatively stable results on a linked quarter basis and a 23% year-over-year increase as the benefit of our counter-cyclical businesses in fixed income and mortgage banking helped to mitigate COVID related pressure in some of our more traditional banking fee income streams.\nFixed income results came in as expected with relatively stable results linked quarter and a $33 million increase year-over-year given average daily revenues of $1.5 million.\nMortgage banking again delivered standout results with a $13 million increase linked quarter and almost $40 million year-over-year.\nSecondary originations of $1.2 billion were up 3% from strong second quarter levels while gain on sale margins expanded over 100 basis points to 3.93%.\nLinked quarter expenses were down $15 million as the reduction in personnel expense and other non-interest expense was partially offset by an expected increase in intangibles, amortization from the Merger and Branch acquisition.\nSalaries and benefits increased $7 million, driven by the alignment of benefits across the combined platform, the addition of personnel from the 30 acquired branches and an increase in healthcare costs following the pandemic driven slowdown.\nOur results this quarter also reflect the benefit of $8 million in net merger cost saves, giving us a year-to-date total of $18 million.\nTurning to Slide 13 and 14, you see a review of our loan growth and funding profiles relative to combined First Horizon, IBERIA results.\nBright spot in the quarter was continued strong mortgage warehouse demand, which drove loans to mortgage companies up $1.6 billion on a spot basis and approximately $430 million on average.\nOn the liability side, period-end deposits were up $2.3 billion, driven by the branch acquisition primarily as well as continued strong customer inflows, which enabled us to run off higher cost non customer balances.\nWe also further improved our funding profile with a $1.2 billion reduction in borrowings from 2Q combined levels as we leveraged our excess liquidity to pay down legacy IBERIA that Federal [Phonetic] Home Loan Bank advances.\nNet charge-offs came in at 44 basis points, up from 20 basis points for legacy FHN driven by energy-related losses and we saw a relatively modest 6 basis point increase in NPLs to 75 basis points of total loans, despite the impact of the merger.\nOn Slide 13, you see, we continue to add reserves this quarter as the impact of the merger and branch acquisition added $475 million to the allowance for credit losses.\nOutside of merger math, we also built reserves by a modest $13 million.\nTherefore, we ended the quarter with reserves of $1.1 billion, which is equivalent to 2.15% of the loan portfolio, excluding the low risk PPP and loans to mortgage companies portfolios and about four times annualized net charge-offs.\nWhen you also factor in the unrecognized discount on acquired loans, we have total loss absorbing capacity of $1.3 billion or over 2% of total loans.\nWe continue to do very detailed portfolio reviews of industries currently affected and in the quarter, we reviewed in detail $9 billion of loans in the commercial portfolio across these various sectors.\nAs a result of that, as well as other broader portfolio reviews, we believe that just under 11% of our total loans should be and are subject to a heightened level of monitoring.\nIt's important to note that other sectors such as essential services, recreational goods, manufacturing and home improvement are continuing to perform well, and additionally our higher quality consumer portfolio is performing well as well with a weighted average FICO score of 750 on a refreshed basis.\nWe've provided data in the appendix on the reserve coverage across our portfolio, as well as on deferrals which have now declined meaningfully to around 2.4% of federal loan balances from a peak of almost 13%.\nOverall, we continue to feel very comfortable with our risk profile and reserve levels, particularly after going through the very detailed process of marking the IBERIA loan book, which represents about 45% of the portfolio.\nMoving on to capital and tangible book value per share on Slide 15, as we mentioned, TBV per share of $9.92 remained relatively stable to second quarter as strong earnings were offset by the impact of the IBERIA merger and the Truist branch acquisition and the CET1 ratio ended the quarter at $9.15.\nNear term, we expect to continue targeting a CET1 ratio in the 9% to 9.25% range.\nWe're on track to convert various other platforms and are currently planning for the full systems conversion to occur in the fall of 2021.\nAgain as Bryan said, in the third quarter, we delivered $8 million of cost savings, bringing the year-to-date total to $18 million.\nWe continue to be highly confident in our ability to deliver at least $170 million of annualized savings in 2022, but the path of the save got shifted by a quarter or so.\nIn third quarter 2020, our annualized expense base excluding incentives and commissions totaled about $1.52 billion, and based on our expectations for the timing of the merger sales, we believe that our 2021 expenses excluding incentives and commissions should reflect a low single-digit decrease.", "summaries": "We generated net interest income of $532 million in the quarter, up $227 million linked quarter, driven by the impact of the merger.\nWe're on track to convert various other platforms and are currently planning for the full systems conversion to occur in the fall of 2021.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "Along those lines, recall that in the third quarter of 2020, we recorded an impairment charge of $99 million related to an equity method investment.\nWhile volume held steady with last year, revenue grew an impressive 14% and our 60.2% operating ratio reflects a 230-point improvement on a year-over-year adjusted basis, our second-best OR performance ever, outpaced only by last quarter's 58.3% mark.\nThe quarterly operating metrics on slide six clearly show that, once again, we generated positive operating leverage on flat unit volumes and GTMs that were up 5%.\nWhile we are proactively hiring train crews, efficiency in all areas of our operations, including engineering, mechanical and communications and signals, enabled us to run the network with 7% fewer people in the quarter compared to a year ago.\nWe achieved total revenue of $2.9 billion, representing a 14% increase from the same period last year despite flat volumes.\nRevenue in our merchandise segment improved 10% year-over-year, while volume increased to 5%.\nSteel shipments were up an impressive 34% from the same period a year ago.\nThe combination of drayage shortages, warehouse productivity, equipment availability, labor force participation and rail network fluidity pressured intermodal volume throughout the quarter, resulting in a 4% year-over-year decline.\nOvercoming these headwinds, we delivered revenue growth of 16% in the third quarter due to higher revenue from storage services, increased fuel surcharge revenue and price strength.\nCoal revenue increased 32% in the third quarter as both domestic and global economies continued to recover from the pandemic and drive demand for electric power.\nThe mix shift from utility to export, coupled with price gains, led to a 20% increase in revenue per unit less fuel for coal in the third quarter, a new record for the franchise.\nOngoing demand for steel will also be a growth driver, with forecast for industrial production up more than 5% year-over-year in the fourth quarter and steel prices currently above $1,900 a ton.\nA projected 4% year-over-year fourth quarter decline in US.\nI appreciate the quick action and effort from our team, and I'm pleased to report that this issue is effectively behind us as we have repaired and returned approximately 95% of the recall chassis back to service.\nWe are continuously innovating to compete in the $800 billion plus truck and logistics market, as shown by our Thoroughbred Freight Transfer or TFT service launched earlier this year.\nOn slide 16, as Alan just detailed, revenues were up 14% on flat volumes.\nWith operating expenses up 10%, we delivered strong incremental margins leading to 230 basis points of operating ratio improvement, driving us to a Q3 record of 60.2%.\nThe improvement Alan detailed in RPU, coupled with strong productivity, led to record Q3 operating income, with growth of 21% or nearly $200 million.\nAnd our free cash flow is also at record levels, a 33% increase during these nine months compared to last year.\nWhile operating expenses grew $149 million or 10%, it's up only 4% or $67 million, apart from fuel cost increases.\nThe fuel cost increase of $82 million is driven mainly by price, but the 5% increase in GTMs also drove more consumption.\nYou'll see purchase services up $35 million, with the majority of the year-over-year increase in areas.\nIt is up 5%, but you'll note the $40 million in savings from 7% lower headcount that more than offset increases in pay rates and over time.\nMeanwhile, incentive compensation comparisons in the quarter are a headwind of $43 million, similar to what we reported in the second quarter, reflecting our strong 2021 financial outlook compared to lower accrual rates last year.\nYou'll see that other income of $14 million is $25 million unfavorable year-over-year, and that is due almost entirely to lower net returns from company-owned life insurance.\nOur effective tax rate in the quarter was 23.6%, close to our federal and state statutory rates, but unlike Q3 last year where the rate was 21.9% and benefited from tax advantages related to both COLI investment gains and higher stock-based compensation.\nNet income increased by 17% and while earnings per share grew by 22%, supported by 3.6 million shares we repurchased in the quarter.\nAs I have mentioned, free cash flow is a record through nine months of 2021 at $2.3 billion, buoyed by very strong operating cash generation, and that translates into a 102% free cash flow conversion.\nWhile property additions are trending a bit lower than run rate for our $1.6 billion guidance number, capital spend is never linear, and we expect fourth quarter property additions will get us close to the $1.6 billion.\nWe first demonstrated our commitment to sustainability with our visionary appointment of a Chief Sustainability Officer back in 2007, the first in the industry.\nBuilding upon the momentum earlier this year with the approval of our science-based targets for greenhouse gas emissions reduction and our launch of $500 million in green bonds in the second quarter, we're excited to report another set of milestones on our sustainability journey.\nAnd just earlier this month, we announced our decision to purchase 100% renewable energy to power company operations in Altoona in Reading, Pennsylvania.\nAs shared previously, we expect to achieve an operating ratio improvement above 400 basis points for the full year versus our adjusted 2020 result.\nAnd there's likely upside to the 12% year-over-year revenue growth, as strength in our consumer-oriented and manufacturing markets drive the majority of the growth.", "summaries": "While volume held steady with last year, revenue grew an impressive 14% and our 60.2% operating ratio reflects a 230-point improvement on a year-over-year adjusted basis, our second-best OR performance ever, outpaced only by last quarter's 58.3% mark.\nOn slide 16, as Alan just detailed, revenues were up 14% on flat volumes.\nWith operating expenses up 10%, we delivered strong incremental margins leading to 230 basis points of operating ratio improvement, driving us to a Q3 record of 60.2%.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In terms of numbers, our revenue grew 4% operationally, with the U.S. segment up 6% and International up 3%.\nOur companion animal products continue to drive our business performance, with 13% operational growth, while livestock products declined 5%.\nOur adjusted net income increased 4% operationally in the second quarter.\nOur recently launched parasiticides, Simparica Trio, ProHeart 12 and Revolution Plus as well as our key dermatology portfolio of Apoquel and Cytopoint, provide a solid foundation that has continued to perform well this year.\nIn terms of supply chain, Zoetis has maintained a reliable inventory of critical medicines, vaccines and diagnostics to our customers and distributors in more than 100 markets around the world.\nFor Zoetis, we expect our overall revenue growth for the remainder of the year to be driven largely by companion animal products, especially our parasiticides and key dermatology portfolio.\nWe generated revenue of $1.5 billion, which was flat on a reported basis and 4% growth operationally.\nAdjusted net income of $427 million decreased 2% on a reported basis and increased 4% operationally.\nForeign exchange in the quarter had an unfavorable impact of 4% on revenue.\nOperational revenue growth of 4% was driven by 2% price and 2% volume.\nVolume growth of 2% includes 3% from new products, 3% from key dermatology products, 1% from acquisitions and a decline of 5% in other in-line products.\nCompanion animal products led the way in terms of species growth, growing 13% operationally, while livestock declined 5% operationally.\nNew products contributed 3% to overall growth in the quarter, driven by Simparica Trio, ProHeart 12, Revolution Plus and our Alpha Flux parasiticide for salmon in Chile.\nWe remain excited by the launch of Simparica Trio and are reaffirming the range of $100 million to $125 million for full year incremental revenue.\nGlobal sales of our key dermatology portfolio were $224 million in the quarter, growing 24% operationally and contributing 3% to overall revenue growth.\nRecent acquisitions contributed 1% growth this quarter, which includes Platinum Performance and our reference lab expansion strategy.\nU.S. revenue grew 6%, with companion animal products growing 19% and livestock products declining by 18%.\nU.S. key dermatology sales were $160 million for the quarter, growing 26%.\nSimparica Trio performed well in the U.S. with sales of $36 million despite challenging market conditions in Q2.\nDiagnostic sales increased 18% in the quarter, largely driven by our reference lab acquisitions.\nU.S. livestock declined 18% in the quarter, driven by lower sales across all species.\nOur International segment had operational revenue growth of 3% in the second quarter, with more balanced performance across our companion animal and livestock portfolios.\nCompanion animal operational revenue growth was 2% and livestock operational growth was 4%.\nSwine grew double digits in the quarter, primarily driven by China, which grew 25%, as key accounts continue to expand their herds and production shifts from smaller farms to larger-scale operations.\nAdjusted gross margin of 71.1% increased slightly on a reported basis compared to the prior year due to price, favorable manufacturing costs and product mix, which were partially offset by foreign exchange, recent acquisitions and higher inventory charges.\nThe adjusted effective tax rate for the quarter was 22.3%.\nAdjusted net income for the quarter grew 4% operationally, primarily driven by revenue growth, and adjusted diluted earnings per share grew 6% operationally.\nWe ended the second quarter with approximately $3.4 billion in cash and cash equivalents, including the proceeds from our $1.25 billion long-term debt issuance in May, of which $500 million is earmarked for repayment of our November 2020 maturity.\nWe have access to a $1 billion revolving credit facility and a coinciding commercial paper program, both of which remain undrawn.\nWith regard to returning excess cash to shareholders, we remain committed to our 2020 dividend, which represents a 22% increase over 2019.\nIn Q1, we repurchased $250 million in Zoetis shares before suspending the program in the second quarter in order to conserve cash.\nWe have approximately $1.4 billion remaining under our multiyear share repurchase program.\nOur current guidance includes favorable foreign exchange revenue of approximately $50 million and approximately $10 million at adjusted net income versus May guidance.\nFor revenue, we are raising and narrowing our guidance range with projected revenue now between $6.3 billion and $6.475 billion and operational revenue growth of between 3% and 6% for the full year versus a negative 2% to positive 3% we had in our May guidance.\nAdjusted net income is now expected to be in the range of between $1.685 billion and $1.765 billion, representing operational growth, a positive 1% to positive 5% compared to our prior guidance of negative 9% to negative 2%.\nAdjusted diluted earnings per share is now expected to be in the range of $3.52 to $3.68 and reported diluted earnings per share to be in the range of $3.14 to $3.32.", "summaries": "For Zoetis, we expect our overall revenue growth for the remainder of the year to be driven largely by companion animal products, especially our parasiticides and key dermatology portfolio.\nWe generated revenue of $1.5 billion, which was flat on a reported basis and 4% growth operationally.\nFor revenue, we are raising and narrowing our guidance range with projected revenue now between $6.3 billion and $6.475 billion and operational revenue growth of between 3% and 6% for the full year versus a negative 2% to positive 3% we had in our May guidance.\nAdjusted diluted earnings per share is now expected to be in the range of $3.52 to $3.68 and reported diluted earnings per share to be in the range of $3.14 to $3.32.", "labels": 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{"doc": "For the full year, demand for our nutrition products resulted in net sales of $5.8 billion, an increase of 5% compared to the prior year and an annual record for the company.\nOur three largest regions, Asia Pacific, North America, and EMEA, along with 37 individual markets, set annual net sales records.\nFull-year 2021 reported diluted earnings per share of $4.13 and adjusted diluted earnings per share of $4.79 was an increase of 49% and 29%, respectively, compared to the full year 2020.\nFull-year 2021 reported net income of $447 million and adjusted EBITDA of $874 million were both annual records for the company.\nFor the full year, we averaged over 500,000 active sales leaders per month, a record for the company and an increase of 9% compared to 2020.\nWe brought in 2.9 million new distributors and preferred customers, which was down just 1% compared to 2020 and actually up 31% compared to the more normalized 2019 year.\nThis year, a record 68.9% of our sales leaders were retained, up from last year's prior record of 67.9%.\nTurning to the fourth quarter, our net sales of $1.3 billion decreased 7% compared to the fourth quarter of 2020.\nOn a two-year stack basis, we saw growth of 8% compared to the fourth quarter of 2019.\nThe Asia Pacific region had another quarter of growth, up 5% compared to the prior year.\nThe region was led by continued strength in India, which grew 33%.\nIndia is supported by strong underlying metrics, including 35% year-over-year growth in new distributors and in preferred members, as well as a 32% increase in active sales leaders.\nWe're making investments in India to further support the market with a newly opened 150,000-plus square foot state-of-the-art center in a suburb of Bangalore.\nThe new facility will allow us to accommodate planned growth in India as we go from the current level of 900 jobs to approximately 1,500 employees over the next five years.\nLooking at North America, we saw a decline in net sales of 3% in the quarter.\nHowever, the two-year stacked growth rate in the region increased by approximately 29% compared to Q4 of 2019.\nWe ended the year with over 12,000 nutrition club locations, an increase of more than 30% compared to the end of 2020.\nWe are excited to see our sales force is energized by the return of in-person distributor events across the North America region, which began in October and continued with 36 separate in-person events so far in 2022.\nEMEA experienced a challenging year-over-year comparison, resulting in a 7% decline.\nHowever, in the region, we actually saw a 9% year-over-year increase in the number of active sales leaders, which reflects the continued strength and the solid foundation of the EMEA business.\nLooking at the two-year stack in the region, EMEA grew 21% compared to the fourth quarter of 2019.\nAlthough the combined new distributor and preferred customer numbers are lower than Q4 of 2020, we saw growth of 23% compared to the more normalized 2019 comparison period.\nThe softness in our China business continued in Q4 as net sales declined 31% compared to the fourth quarter of 2020.\nIn Mexico, sales declined 5% in the quarter following three quarters of growth as the market was adversely impacted by intermittent pandemic-related disruption.\nFor the South and Central American region, the fourth quarter declined 14% year over year.\nTurning to our 2022 outlook, we're initiating net sales guidance to be in the range of flat to 6% growth for the year.\nWe estimate first-quarter net sales to decline in the range of down 10% to down 4%.\nIn 2022, we don't expect pricing will fully offset all cost increases, which will result in a net headwind to gross profit of approximately 100 basis points for the full year.\nOnce fully executed, we expect the first phase of our transformation program will result in ongoing incremental savings in SG&A of $10 million to $15 million per year.\nWe're also assessing a second phase of the program, which we're preliminarily planning for 2023, and anticipate that it will result in annualized savings in the same magnitude as Phase 1.\nAnd in 2021, regional product launches contributed to over 400 new SKUs in the company's portfolio.\nApproximately 100 of these new SKUs have been part of our fast-growing energy, sports, and fitness category, which continued to lead our core product categories with an increase of 26% for the full year.\n1 brand in active and lifestyle nutrition, as well as the world's no.\nAnd I'm honored that Herbalife Nutrition was selected as one of America's best midsize employers and one of the top 10 employers in our industry in the 2022 Forbes rankings.\nHowever, we exited the fourth quarter with a net sales decrease of 7% compared to the fourth quarter in 2020.\nHowever, comparing to the fourth quarter of 2019 prior to the pandemic, it represented an 8% increase on a two-year stack.\nCurrency was a headwind to net sales in the quarter, representing a drag of approximately 110 basis points.\nNormalizing for currency, there was sequential improvement in the fourth quarter growth with local currency net sales declining 5.5% versus 7.6% year-over-year decline in the third quarter.\nThis was driven by sequential improvement in volume growth of 5.7% year-over-year decline in the fourth quarter versus the 8.3% year-over-year decline in the third quarter.\nAnd on a two-year stack basis, local currency net sales grew by 10.3% versus Q4 of 2019.\nReported gross margin for the fourth quarter of 77.5% decreased by approximately 60 basis points compared to the prior year.\nFourth-quarter 2021 reported and adjusted SG&A as a percentage of net sales were 38.9% and 37.5%, respectively.\nExcluding China member payments, adjusted SG&A as a percentage of net sales was 32.1%, approximately 290 basis points unfavorable compared to the fourth quarter 2020.\nFor the fourth quarter, we reported net income of approximately $38.2 million or $0.37 per diluted share.\nAdjusted earnings per share of $0.57 and adjusted EBITDA of $132 million were both within our expectations for the quarter.\nCurrency was a tailwind of $0.02 in the quarter versus the prior year.\nThis quarter, you will notice, we had a $12.5 million carve-out accrual related to the Rogers lawsuit as the two parties have agreed on principal terms of a settlement.\nNow briefly touching on the full year 2021 results, reported net sales of $5.8 billion increased approximately 5% on a reported basis.\nCurrency was an approximately 190 basis points tailwind for the full year, excluding Venezuela.\n2021 reported diluted earnings per share of $4.13 and adjusted diluted earnings per share of $4.79 both benefited by approximately $0.09 per share from foreign currency fluctuation.\nOn a constant-currency basis, adjusted earnings per share grew approximately 26% compared to full-year 2020.\nOur full-year adjusted tax rate of 19.4% improved approximately 330 basis points from our 2020 adjusted tax rate of 22.7%, primarily due to geographic mix of income.\nWe expect to return to growth in the second half of 2022, resulting in projected net sales of flat to 6% growth for the full year on a reported basis, which includes an approximate 160-basis-points headwind due to currency.\nWe expect the first phase of this initiative will incur total pre-tax charges in SG&A in the range of $25 million to $30 million.\nWe carved out approximately $13 million of these charges in 2021, with most remaining expenses to be incurred throughout 2022.\nWe expect this first phase will result in annual incremental savings in the range of $10 million to $15 million with some savings beginning in 2022 increasing through 2023, with the full impact of the savings expected to begin in 2024.\nWe are also assessing a second phase of the program to begin in 2023 with expected ongoing annualized savings of the same magnitude as Phase 1.\nAs a result, for the full year, we are projecting our adjusted diluted earnings per share to be in the range of $4.25 to $4.75.\nThis includes an approximate $0.17 currency headwind.\nWe are also providing full-year adjusted EBITDA guidance in the range of $785 million to $845 million, which includes an approximate $21 million headwind due to currency.\nOur 2022 guidance includes the assumption of $50 million in share repurchase per quarter, which reflects the minimum buyback amount we anticipate completing on a quarterly basis.\nWe have demonstrated this pattern of consistency during 2021 by repurchasing approximately $100 million, $160 million, and $100 million in the second, third and fourth quarter, respectively.\nFor the first quarter, we estimate net sales to decline in the range of down 10% to down 4%, which includes an approximate 240-basis-points currency headwind versus the prior year.\nFirst-quarter adjusted diluted earnings per share is expected to be in the range of $0.80 to $1, which includes a projected currency headwind of $0.03 compared to the first quarter of 2021.\nAdjusted EBITDA is expected to be in the range of $165 million to $185 million.\nOperating cash flow of $460 million for full-year 2021 was down from 2020, primarily due to the impact of several unfavorable accounts related to year-over-year net sales declines.\nAfter completing just under $1 billion in share repurchases during the year, at the end of 2021, we had just over $600 million of cash on hand.\nAs I mentioned earlier, we have included a minimum of $50 million in share repurchases per quarter in our guidance for the year, which will cut into the approximately $1.1 billion remaining on our three-year share repurchase authorization.", "summaries": "Turning to the fourth quarter, our net sales of $1.3 billion decreased 7% compared to the fourth quarter of 2020.\nTurning to our 2022 outlook, we're initiating net sales guidance to be in the range of flat to 6% growth for the year.\nFor the fourth quarter, we reported net income of approximately $38.2 million or $0.37 per diluted share.\nAdjusted earnings per share of $0.57 and adjusted EBITDA of $132 million were both within our expectations for the quarter.\nAs a result, for the full year, we are projecting our adjusted diluted earnings per share to be in the range of $4.25 to $4.75.\nFirst-quarter adjusted diluted earnings per share is expected to be in the range of $0.80 to $1, which includes a projected currency headwind of $0.03 compared to the first quarter of 2021.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "In July, we announced a roughly 2% increase in our common stock dividend effective later this month, thus making 2021 our 32nd consecutive year of annual dividend increases.\nNational Retail Properties is in the select company of only 85 U.S. public companies, including only two other REITs, which have achieved this impressive track record.\nBased on our strong performance, we announced today a further increase in our 2021 guidance for core FFO per share to a range of $2.75 to $2.80 per share.\nOur portfolio of 3,173 freestanding single-tenant retail properties continue to perform exceedingly well.\nOccupancy was consistent with the prior quarter at 98.3%, which remains above our long-term average of 98%.\nWe also announced collection of 99% of rents due for the second quarter.\nMister Car Wash was one of our first relationship tenants 15 years ago, and we're very proud of the role that National Retail Properties has played in that company's growth and success.\nDuring the quarter, we invested just under $103 million in 29 new properties at an initial cash cap rate of 6.7% and with an average lease duration of over 17 years.\nYear-to-date, we've invested over $208 million in 58 new properties leased to 10 different relationship tenants at an initial cash cap rate of 6.5% and an average lease duration of 17.5 years.\nBased on our pipeline and conversations with those relationship tenants, we remain comfortable with our ability to meet and hopefully exceed our 2021 acquisition guidance of $400 million to $500 million, primarily via direct sale-leaseback transactions with long duration leases.\nDuring the second quarter, we also sold 15 properties, raising almost $23 million of proceeds to be reinvested in new acquisitions.\nAnd year-to-date, we've now raised over $40 million from the sale of 26 properties, including 15 vacant properties.\nIn June, Kevin led the recast of our unsecured line of credit, increasing the capacity of our facility from $900 million to $1.1 billion.\nAlthough our credit line has been upsized, the balance outstanding remains the same, 0, and we ended the quarter with approximately $250 million of cash on hand.\nThat's up $0.01 from the preceding first quarter, $0.69 per share, and it's up $0.05 from the prior year's $0.65.\nToday, we also reported that AFFO per share was $0.77 per share for the second quarter and that's also up $0.01 from the preceding first quarter $0.76.\nWe did footnote this amount includes $8.3 million of deferred rent repayments and our accrued rental income adjustment in the second quarter AFFO number.\nSo without that, we would have produced AFFO of $0.72 per share.\nSo excluding those deferral repayments, our AFFO dividend payout ratio for the first six months was 72.7%, that's fairly consistent with prior year's levels.\nOccupancy, as Jay mentioned, was 98.3% at quarter end.\nG-and-A expense was $11.9 million for the second quarter.\nAs Jay mentioned, today, we reported rent collections of approximately 99% for the second quarter rent.\nCollections from our cash basis tenants, which represent about 7% of our total annual base rent improved to approximately 92% for the second quarter rent, and that's up from 80% previously reported for that cohort in the first quarter of 2021.\nAs Jay noted, we increased our 2021 core FFO per share guidance from a range of $2.70 to $2.75 per share to a new range of $2.75 to $2.80 per share.\nSo while we previously assumed 80% rent collection from the $50 million of cash basis tenant annual base rent, we are now assuming 90% rent collections that incremental 10% amounts to about $5 million on an annual basis.\nAnd for the remainder of our tenants, we continue to assume 1% of potential rent loss.\nWe ended the quarter with $250 million of cash on hand and no amounts outstanding on our newly recast $1.1 billion bank credit facility.\nThis bank line, as Jay noted, increased from $900 million in size to $1.1 billion.\nThe interest rate was reduced 10 basis points to LIBOR plus 77 basis points and maturity was extended to June of 2025.\nOur liquidity is in excellent shape, our weighted average debt maturity is now 13 years with a 3.7% weighted average fixed interest rate.\nOur next debt maturity is $350 million with a 3.9% coupon in mid-2024.\nNet debt to gross book assets was 35%.\nAt quarter end, net debt to EBITDA was 5.0 times at June 30.\nInterest coverage, 4.7 times and fixed charge coverage 4.2 times for the second quarter.\nOnly five of our 3,000-plus properties are encumbered by mortgages.", "summaries": "Today, we also reported that AFFO per share was $0.77 per share for the second quarter and that's also up $0.01 from the preceding first quarter $0.76.\nAs Jay noted, we increased our 2021 core FFO per share guidance from a range of $2.70 to $2.75 per share to a new range of $2.75 to $2.80 per share.", "labels": 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{"doc": "On a consolidated basis, the company reported net sales for the fourth quarter of $453 million and adjusted EBITDA of $72 million.\nWhich represents growth of approximately 4% and 38%, respectively, over the fourth quarter of last year.\nOur backlogs are robust, which contributed to our decision to announce a price increase of $50 per ton across our SBS portfolio, starting on February 2.\nIn the fourth quarter, we used the free cash flows generated to reduce net debt by an additional $58 million.\nAs a recognition of the work by our entire team during this challenging time, we paid out a onetime discretionary bonus of $1,000 in November to over 2,800 of our people.\nWe're also strongly encouraging all our people to get the COVID vaccine with a $200 incentive.\nFirst, recall that the market for tissue in the U.S. is traditionally 2/3 at-home and 1/3 away-from-home, with limited manufacturing production capability to swing between the 2.\nWe shipped 13.9 million cases, which was up around 5.3% compared to the fourth quarter of 2019.\nSales were down 4.2% relative to the third quarter of 2020.\nAs you recall, we estimate that approximately 2/3 of paperboard demand is derived from products that are more recession-resilient and 1/3 is driven by economically -- by more economically sensitive or discretionary products.\nWe estimate that the costs associated with the weather event across our paperboard system, including loss production, repairs and spikes in natural gas prices, could impact us in the first quarter by approximately $6 million to $8 million.\nWe continue to experience the same fundamental supply and demand dynamics that led us to announce a $50 per ton price increase in January.\nIn the fourth quarter, diluted net income per share was $1.34 per share and adjusted EBITDA was $71.6 million and full year diluted net income per share was $4.61 per share, and adjusted EBITDA was $283.2 million.\nOur sales in the fourth quarter were 13.9 million cases, representing a unit decline of 4.2% versus the third quarter and unit growth of 5.3% versus prior year.\nOur production in the quarter was $13.9 million cases or down 9% versus the third quarter and up 2.4% versus prior year.\nTissue shipments in January were 4.6 million cases, and our shipments in February are trending to below four million cases.\nAs we mentioned previously, our paperboard business announced a price increase of $50 a ton across our SBS grades effective February 2.\nThe unexpected weather-related outage at our Arkansas mill, which caused loss production and repairs as well as natural gas price increases across our paperboard system, is expected to negatively impact the quarter by approximately $6 million to $8 million.\nIf our assumptions are correct, we would anticipate the first quarter adjusted EBITDA to be in the range of $51 million to $59 million.\nWhile these variables are difficult to predict today, raw material inputs in total could be a $40 million to $50 million headwind this year, with more than half the total coming from pulp.\nIn our paperboard business, planned major maintenance outages are expected to reduce our earnings for 2021 compared to 2020 by $25 million to $30 million.\nFor the full year 2021, we're also anticipating the following: interest expense between $38 million and $40 million.\nDepreciation is expected to be between $106 million and $110 million.\nCapital expenditures are expected to be between $60 million and $65 million, which is closer to historical trends as we expect to execute against some projects that were delayed in 2020.\nAnd our effective tax rate is expected to be 25% to 26%, and we expect to utilize some of our current tax attributes which amount to $60 million to reduce cash taxes.\nWe utilized approximately $50 million of free cash flow to reduce our net debt, including making voluntary prepayments on our term loan, and our liquidity was $250 million at the end of the year.\nWe continue to make strides in reducing our net debt and increasing our financial flexibility as we target a net debt to adjusted EBITDA ratio of 2.5 times, assuming adjusted EBITDA after COVID benefits and with a normal amount of outages.\nWe delivered outstanding financial results, reduced net debt by $200 million, refinanced our near-term debt maturities and strengthen our balance sheet.\nPrivate brand tissue share in the U.S. rose to over 30% in 2019, up from 18% in 2011.\nAs we demonstrated in the fourth quarter, with a net debt reduction of approximately $58 million, bringing our net reduction in 2020 to over $200 million.\nWith an adjusted EBITDA impacted by normal outages and reduced COVID benefits, we do not anticipate achieving our 2.5 leverage target this year.", "summaries": "On a consolidated basis, the company reported net sales for the fourth quarter of $453 million and adjusted EBITDA of $72 million.\nIn the fourth quarter, diluted net income per share was $1.34 per share and adjusted EBITDA was $71.6 million and full year diluted net income per share was $4.61 per share, and adjusted EBITDA was $283.2 million.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We generated total revenue growth of 13.6% and core revenue growth of 9.1%, above the high-end of our guidance.\nAdjusted earnings per share was $0.63, representing an increase of 37% year-over-year.\nIn 2020, we more than doubled the number of projects conducted and expect to do the same this year, targeting more than $250 million of potential revenue opportunity.\nIn terms of performance across the major geographies, core growth was led by low 20% growth in Asia.\nThis included approximately 30% growth in China and low double-digit growth in Japan.\nTaking a closer look at performance in the segments on slide seven, Intelligent Operating Solutions posted a total revenue increase of 9.5%, with core revenue increase of 5.5%.\nFluke's growth included the launch of the 377 and 378 Fluke Connect, plant meters for non-contact voltage testing.\niNet also registered an 18% increase in bookings, while driving a more than 500 basis point improvement in net retention.\nThe Precision Technology segment posted a total revenue increase of 14.3% with a 12.1% increase in core revenue.\nPoint-of-sale continue to accelerate, up greater than 40% in China, greater than 20% in Western Europe, while North America turned positive with a mid single-digit increase in the quarter.\nMainstream oscilloscope posted high 30% growth, driven by strong demand trends across most of its key product segments, particularly our six series and four series scopes.\nSensing also generated strong growth from its critical environment products, etc, with mid-30% growth for the quarter.\nThe business continued to see good order trends with a book-to-bill of 1.2 over the trailing 12 months and has a strong backlog that we expect to support improving growth in the coming quarters.\nTotal revenue increased 20.3% with a 10.9% increase in core revenue.\nThis included low 40% growth in China, low 20% growth in Western Europe and low single-digit growth in North America.\nGrowth at ASP was driven by a greater than 40% increase in capital equipment sales as it continued to grow its global installed base.\nThis momentum in capital sales more than offset the fact that electric procedures were 91% of pre-COVID levels globally and continue to weigh on ASP's consumable revenue.\nLandauer is now seeing an approximate 2.5 times improvement in its operating margins since acquisition.\nFinally, Invetech reported mid-40% growth as it delivers against a strong backlog of 2020 orders for its diagnostic offerings.\nAdjusted gross margins were 57% in the first quarter, up 90 basis points, driven by the fall-through on the strong growth at Fluke and Tektronix as well as the year-over-year gross margin improvement at ASP coming off the transition service agreements.\nIt also reflected solid execution with FBS throughout the portfolio, including continued price realization of 90 basis points in the quarter.\nOur Q1 adjusted operating profit margin was 22.7%, a bit higher than we had guided, helped in part by the stronger volume we saw in the quarter.\nWe generated 40% of adjusted incremental operating margins and 240 basis points of core operating margin expansion and also generated more than 200 basis points of core operating margin expansion in each of our three segments.\nDuring the first quarter, we generated $144 million of free cash flow, representing an increase of 50% year-over-year.\nWe continue to be pleased with the consistent growth in free cash flow and have delivered -- that we've delivered over the past year, with the first quarter taking our trailing 12 months free cash flow to $950 million.\nEarly in Q1, we executed the tax-efficient monetization of our remaining 19.9% stake in Vontier, generating approximately $1.1 billion in proceeds which we used for debt repayment.\nOn the basis of that transaction and our free cash flow from Q1, we ended up the first quarter with a net leverage ratio of 1.2 times.\nFor the full year, we now expect adjusted diluted net earnings per share to be $2.50 to $2.60, representing year-over-year growth of 20% to 24% on a continuing operations basis.\nThis assumes total revenue growth of 10% to 13%, core revenue growth of 7% to 10%, adjusted operating profit margins of 22% to 23% and an effective tax rate of approximately 14%.\nIt also assumes core revenue growth of 5% to 7% in the second half of 2021.\nWe also continue to expect free cash flow conversion to be approximately 105% of adjusted net income for the year.\nWe are initiating second quarter adjusted diluted net earnings per share guidance of $0.56 to $0.60, representing year-over-year growth of 30% to 40%.\nThis assumes total revenue growth of 20% to 23%, core revenue growth of 16% to 19%, adjusted operating profit margins of 19.5% to 20.5% and an effective tax rate of approximately 14%.\nFor the second quarter, we expect free cash flow conversion to be approximately 85% of adjusted net income.\nThe full year guidance incorporates $35 million of additional investments that we are making to drive innovation and enhance our capabilities to support higher growth in the years ahead with $15 million in the second quarter.", "summaries": "We generated total revenue growth of 13.6% and core revenue growth of 9.1%, above the high-end of our guidance.\nAdjusted earnings per share was $0.63, representing an increase of 37% year-over-year.\nFor the full year, we now expect adjusted diluted net earnings per share to be $2.50 to $2.60, representing year-over-year growth of 20% to 24% on a continuing operations basis.\nWe are initiating second quarter adjusted diluted net earnings per share guidance of $0.56 to $0.60, representing year-over-year growth of 30% to 40%.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "We're now more than 13 months into the COVID-19 pandemic.\nFor the first time in my 25 years at San Jose Water, we are temporarily taking our Montevina Water Treatment Plant offline due to low supply.\nCurrently, every billion gallons of purchased water has an incremental cost to the company of $4.2 million more than using our own supply sources.\nAs a direct result of the water supply outlook and in full transparency, we are announcing guidance of $1.85 to $2.05 per diluted share in 2021.\nWe are proud to have continuously paid a dividend for over 77 years and to have increased the annual dividend in each of the last 53 years, delivering value to our shareholders.\nFirst quarter revenue was $114.8 million, a 1% increase over the first quarter of 2020.\nNet income for the quarter was $2.6 million or $0.09 per diluted share, an 8% increase over net income of $2.4 million or $0.08 per diluted share reported in the first quarter of 2020.\nThe increase in diluted earnings per share for the quarter was primarily attributable to cumulative rate increases of $0.08 per share, cumulative cost savings of $0.04 per share, a tax benefit of $0.04 per share and an increase in nonregulated income of $0.03 per share.\nThe diluted per share increase was partially offset by a decrease in customer usage of $0.08 per share.\nCustomer credits in Texas totaling $0.02 per share issued in connection with the February Ice storm, a decrease in the availability of surface water of $0.02 per share and an increase in depreciation and amortization of $0.06 per share.\nOur revenue decrease was a result of $2.8 million in decreased customer usage.\nIn addition, customer credits in Texas reduced revenue by $700,000 and net changes in certain balancing and memorandum accounts reduced revenue by $600,000.\nThese decreases were partially offset by $2.8 million in cumulative rate increases and $500,000 in revenue from new customers.\nThe minor reduction was primarily due to $800,000 in lower average per unit cost for purchased water, groundwater extraction and energy charges and lower usage, partially offset by a $700,000 increase due to the purchase of additional water supplies to supplement the lower level of surface water production we experienced during the quarter.\nOther operating expenses increased $1.6 million or 2% for the quarter, primarily due to $2.1 million in higher depreciation related to utility plant additions, and $200,000 in higher maintenance expenses, partially offset by $400,000 in lower general and administrative expenses.\nIn addition, in the first quarter of 2020 we incurred $400,000 in merger-related expenses.\nThe effective consolidated income tax rates were approximately negative 52% and 15% for the quarters ended March 31, 2021 and 2020, respectively.\nWe added $46.7 million in company-funded utility plant during the first quarter of 2021.\nThis represents 20% of our total 2021 planned capital expenditures.\nFrom a financing perspective, first quarter 2021 cash flows from operations increased 321% over the first quarter of 2020.\nThis change was primarily the result of a decrease in accounts payable and accrued expenses of $8.3 million, an increase in accounts receivable collections of $2.2 million and a $1.5 million increase in net income adjusted for noncash items.\nIn addition, in 2020, we made an upfront payment of $5 million to the city of Cupertino in connection with our service concession agreement and refunded $8.4 million to California rate payers that were accumulated in our 2017 Tax Act Memorandum Account.\nIn March 2021, SJW Group issued approximately $1.2 million -- I'm sorry, 1.2 million of new shares in an offering that raised net proceeds of approximately $66.9 million.\nIn addition, in April 2021, the company's California subsidiary entered into a $140 million credit agreement, and the company's Texas subsidiary entered into a $5 million credit agreement, both with JPMorgan Chase Bank.\nAt the end of the first quarter, we had $138 million available on our bank lines of credit for short-term financing of utility plant additions and operating activities.\nThe average borrowing rate on line of credit advances during the quarter was 1.42%.\nAs Jim just mentioned, we have already invested approximately 20% of our planned 2021 capital spending through the end of the first quarter.\nSan Jose Water's GRC application proposes a $435 million capital program for the years 2021 through 2023, supported by our award-winning enterprise asset management system.\nA primary driver of the case is the $266 million in infrastructure investments that have been completed and are providing a benefit to customers, but are not yet covered in rates.\nA 1.1% increase in the Water Infrastructure and Conservation Adjustment surcharge, or WICA, was authorized by PURA earlier this year and went into effect on April 1.\nThis covers $8.7 million in qualified infrastructure investments that have been completed and will provide incremental annual revenue of about $1 million.\nThe current cumulative WICA surcharge will be rolled into base rates, and the surcharge will be reset to 0 as part of the general rate case.\nMaine Water filed a general rate case application for its Biddeford Saco rate division, requesting a $6.7 million increase in annual revenues with the Maine Public Utilities Commission, or PUC, in March.\nThe application is driven by a $60 million replacement of the 1,884 vintage drinking water treatment plant.\nConnecticut Water is proposing a 15% discount on water bills for income-eligible customers that is similar to a program offered by San Jose Water since late 2005.\nThe acquisition added 230 new customers, gained additional water supplies to serve current and future customers and added rate base that reflects market value for future rate making purposes.\nThis was the 13th acquisition completed by SJWTX, which has tripled its customer base since 2006.\nAt the Board level, SJW Group is just one of 154 companies in the Russell 3000 to achieve a gender balanced board rating in 2020.\nAccording to the 50/50 Women on Boards Gender Diversity Index.\nBob has served as a Director of the company since 2006 and as Lead Independent Director since 2015.", "summaries": "As a direct result of the water supply outlook and in full transparency, we are announcing guidance of $1.85 to $2.05 per diluted share in 2021.\nFirst quarter revenue was $114.8 million, a 1% increase over the first quarter of 2020.\nNet income for the quarter was $2.6 million or $0.09 per diluted share, an 8% increase over net income of $2.4 million or $0.08 per diluted share reported in the first quarter of 2020.", "labels": "0\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our recode initiatives are progressing on track to generate savings of $300 million by the end of FY FY '24.\nOn Earth Day, we reaffirmed our climate change targets, which includes our pledge to be carbon neutral by 2040 across our direct operations.\nLast week, we announced that we submitted our Alaris 510(k) premarket notification.\nOver the past year we've improved our net leverage ratio by a full turn from 3.4x to 2.4x and taken actions to meaningfully strengthen our cash flows.\nWe secured our global supply chain to ensure that our essential medical devices were available to treat COVID patients in ICUs around the world including BD devices used in the treatment of an estimated 90% of US ICU patients.\nAnd today we continue to add capacity and enable over 1 billion doses of COVID-19 vaccine to be delivered using our injection devices.\nWe acquired 11 tuck-in acquisitions since the beginning of 2020 along with early stage investments and we're reinvesting some of BD Veritor profits back into the business and behind our BD 2025 strategy.\nOur second quarter revenues totaled $4.9 billion, up 15.4% on a reported basis and up 12.2% on an FX-neutral basis.\nTo call out a few, our market-leading BD Pharmaceutical Systems business continues to deliver robust revenue growth of nearly 10%.\nMedication Delivery Solutions business was up over 8%, as we continue to deliver on our COVID vaccine injection devices commitments and our results were also driven by higher patient acuity.\nIn China, where we began to anniversary the impact of COVID-19 we saw a strong revenue growth of 62% and we continue to invest support our future growth including reinvesting some of the profits from our COVID diagnostics.\nOur R&D spending was up 18.7% year-over-year on a currency-neutral basis.\nAdjusted earnings per share was $3.19 representing year-over-year growth of 25.1% on a reported and 22.7% on a currency-neutral basis.\nThe performance of our business particularly our core, gives us comfort to reaffirm our fiscal 2021 guidance ranges which include currency-neutral revenue growth of 10% to 12% and adjusted earnings per share guidance of $12.75 to $12.85, up 25% to 26% on a year-over-year basis.\nAs vaccination campaigns continue to progress, I am pleased to announce, that we now have cumulative commitments for over 1.7 billion injection devices to administer COVID vaccines globally.\nWe submitted our 510(k) premarket notification to the FDA for our BD Alaris system.\nThe 510(k) submission is intended to bring our file up to date for all changes to the pump, since the last 510(k) was cleared.\nOur Diabetes Care business generated $1.1 billion of revenue in fiscal 2020, is a global leader in insulin injection devices.\nWe estimate the uplift to our revenue growth rate to be about 30 basis points.\nThe spin-off is expected to be implemented by a means of a distribution of 100% of the shares of a newly traded -- publicly traded entity to BD shareholders, and is intended to be tax-free for U.S. federal income tax purposes.\nOver the next several months, we'll be filing our Form 10, which will include the carve-out financial statements.\nAgain, we expect the spin-off to be completed in the first half of fiscal year 2022, subject to market, regulatory and other conditions, including final approval by the Board of Directors and the effectiveness of a Form 10 registration statement that will be filed with the SEC.\nThe Diabetes Care business has a long history of caring for patients living with the disease, dating back to BD's introduction of the world's first specialized insulin syringe, almost 100 years ago in 1924.\nAs Tom mentioned earlier, the business generated nearly $1.1 billion in revenue in fiscal 2020, derived from the sale of insulin injection devices such as, pen needles and insulin syringes as well as other accessories.\nOne factor that attracted me to this opportunity was the global breadth of the business with 48% of the revenues generated outside the United States, including 17% in emerging markets.\nThe International Diabetes Federation estimates that the number of adults living with diabetes is expected to grow from 463 million in 2019 to 578 million in 2030 and 700 million by 2045.\nHowever, we'll also look to invest in novel insulin delivery technologies, including our internal type 2 patch technologies.\nOver the past quarter, we continued to advance our companywide ESG initiatives, including our recent commitment to be carbon neutral across direct operations by 2040.\nWe also continue to make progress toward identifying our 2030 goals and we look forward to sharing more details behind our 2030 sustainability plan with you in future engagements.\nOur revenues came in just over $4.9 billion, up 15.4% on a reported basis and up 12.2% on an FX-neutral basis.\nOur medical segment delivered 4.7% FX-neutral revenue growth led by our market leading BD Pharmaceutical Solutions Systems business, which continues to deliver robust revenue growth of nearly 10%.\nMDS grew a solid 8.1%, which included $43 million from COVID-19 vaccination injection device revenues.\nOur Life Science segment delivered revenue growth of nearly 38% on an FX neutral basis.\nOur COVID-19 diagnostic testing revenues totaled $480 million and are included in our Integrated Diagnostics Solutions business.\nThere was virtually no traditional flu this year, so we did not have our usual flu test revenues and this impacted our IDS growth rate by 540 basis points and our BD Life Sciences growth rate by 410 basis points.\nThe impact to our overall BD growth rate was 110 basis points.\nOur Biosciences business unit delivered strong growth of over 12% as research lab activity has recovered nicely.\nIn the United States, revenues were up 1.9%.\nInternational revenues were up 25.7% on a currency-neutral basis as we begin to anniversary the initial impact of COVID-19, particularly in China where our revenues were up 62%.\nOur gross margin was 53.8% driven mostly by the lower COVID diagnostic testing revenues.\nOn a year-over-year basis, the gross margin included a 70 basis point negative impact from foreign exchange and 70 basis points from reinvestment initiatives.\nOur SSG&A spending rose 9% year-over-year on an FX-neutral basis, including a 380 basis point impact from deferred compensation, which as you know is fully offset in other income expense.\nR&D increased 18.7% year-over-year on an FX-neutral basis to $295 million, representing 6% of our revenues.\nOur operating income grew 14.3% on a year-over-year reported basis and 13% on an FX-neutral basis.\nOur operating margin was 24.5%, up 20 basis points on an FX-neutral basis.\nDeferred compensation was an 80 basis point headwind.\nOur interest and other expenses totaled $111 million versus $170 million in the year ago period.\nOur tax rate was 12% lower than expected due to discrete tax items that occurred this quarter.\nOur adjusted earnings per share increased 25.1% over the prior year to $3.19 on a reported basis and were up 22.7% on an FX-neutral basis.\nThe average diluted share count used to calculate our earnings per share in the quarter was $293.6 million.\nFor the first half of the year, our cash flows from operations have more than doubled growing from $1.2 billion to $2.8 billion, driven by the improvement in our net income as well as working capital.\nWe ended the quarter with $3.7 billion in cash and equivalents and our net leverage ratio was 2.4 times, a full turn lower than a year ago.\nAs a reminder under the existing share repurchase authorization plan, we have just under 7.9 million shares or roughly $2 billion remaining.\nWe continue to expect reported revenue growth of 12% to 14% for the full year 2021.\nThis reflects FX-neutral revenue growth in the range of 10% to 12%.\nBD Veritor revenues toward the higher end of the $1 billion to $1.5 billion range and foreign currency adding approximately 200 basis points.\nWe also continue to expect adjusted earnings per share in the range of $12.75 to $12.85, which represents growth of 25% to 26% year-over-year.\nIn fiscal 2022, excluding COVID-19 testing and Alaris 510(k) clearance, we expect our revenues to grow solidly in the mid-single digits.\nWe believe it would be prudent to think about Alaris' 510(k) clearance sometime during the second half of our fiscal 2022.", "summaries": "Our second quarter revenues totaled $4.9 billion, up 15.4% on a reported basis and up 12.2% on an FX-neutral basis.\nAdjusted earnings per share was $3.19 representing year-over-year growth of 25.1% on a reported and 22.7% on a currency-neutral basis.\nOur revenues came in just over $4.9 billion, up 15.4% on a reported basis and up 12.2% on an FX-neutral basis.\nOur COVID-19 diagnostic testing revenues totaled $480 million and are included in our Integrated Diagnostics Solutions business.\nOur adjusted earnings per share increased 25.1% over the prior year to $3.19 on a reported basis and were up 22.7% on an FX-neutral basis.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "New accounts grew 17% to 6.2 million and average active accounts increased 5% to 67.2 million during the period.\nThis translated to an 11% increase in purchase volume per active account during the third quarter and 16% growth in total purchase volume compared to last year.\nOf course, this strength in purchase volume was largely offset by the persistently elevated payment rate trends resulting from government stimulus and industrywide forbearance actions, leading to a 2% increase in loans, including loans held for sale.\nNet interest margin of 15.45% was 165 basis points higher than last year, primarily reflecting the reduction in excess liquidity.\nOperating expenses were down 10% compared to last year and down 7% year-to-date as our cost efficiency initiatives continue as planned.\nWe remain on track to reduce about $210 million from our expense base by year-end even as we continue to invest in our business.\nThe efficiency ratio was 38.7% for the quarter largely flat with last year.\nNet charge-offs were 2.18% for the third quarter, down 224 basis points from last year.\nNet earnings were $1.1 billion or $2 per diluted share and included a $0.33 benefit from the reserve release related to the reclassification of the Gap portfolio to held for sale.\nTurning to our balance sheet, deposits were down $3 billion or 5% versus last year, reflecting retail deposit rate actions we took to manage our excess liquidity.\nDeposits represented 82% of our funding mix at quarter-end, a slight increase versus last year due to the retirement of debt.\nDuring the quarter, we returned $1.4 billion in capital through share repurchases of $1.3 billion and $124 million in common stock dividends.\nMyWalgreens credit card holders can earn 10% Walgreens cash rewards on eligible Walgreens branded products and 5% Walgreens cash rewards on other eligible brands and pharmacy purchases.\nmyWalgreens Mastercard holders can also earn 3% Walgreens cash rewards on eligible grocery and health and wellness purchases everywhere else, including healthcare providers and 1% Walgreens cash rewards on eligible purchases anywhere Mastercard credit cards are accepted.\nWith more than 65 million active accounts, Synchrony has market-leading reach and deep diverse lending insights that enable us to better anticipate the needs of customers and therefore which financing options will optimize utilization and drive lifetime value.\nWe're particularly excited about the opportunity we see for our Synchrony Mastercard, which allows us to tap into the $500 billion general purpose credit card market.\nThis value proposition and seamless digital experience resonates very well with our customer, leading to purchase volume growth of 36% versus the same period in 2019.\nWe're also seeing higher levels of engagement around the product and brand as spend per active account is up 40% versus 2019.\nThe combination of these results led to $1.1 billion in net earnings or $2 per diluted share, a return on average assets of 4.9% and a return on tangible common equity of 40.1%.\nLooking at our third quarter performance in greater detail, beginning with purchase volume, which grew 16% compared to last year and 16% compared to 2019 excluding Walmart demonstrates clear broad-based strength in consumer demand.\nThis is also reflected in our purchase volume per account, which increased 11% compared to last year.\nDual card and co-branded cards accounted for 40% of the purchase volume in the third quarter and increased 29% from the prior year.\nOn a loan receivable basis, excluding the impact of the reclassification of the Gap portfolio to held for sale, dual and co-branded cards accounted for 24% of the portfolio and increased 4% from the prior year.\nAverage active accounts increased 5% compared to last year and new accounts increased 17% totaling more than 6 million new accounts in the third quarter and over 17.5 million new accounts.\nIn late August, we reached an agreement for the sale of the Gap portfolio, which led to the reclassification of $3.5 billion of loan receivables to held for sale and therefore reduced our ending loan receivables balance.\nExcluding the impact of the reclassification, loan receivables would have increased by 2% versus the prior year as the period's strong purchase volume growth was largely offset by a persistently elevated payment rate.\nPayment rate for the third quarter was approximately 200 basis points higher when compared to the last year.\nInterest and fees on loans increased 2% compared to last year, reflecting similar growth in average loan receivables.\nNet interest income was 6% higher than last year, primarily reflecting a decline in interest expense due to lower benchmark rates.\nRSAs were $1.3 billion in the third quarter and 6.38% of average receivables.\nThe $367 million year-over-year increase primarily reflected the impact of the lower provision for credit losses and continued strong program performance including growth and improvement in net interest income.\nNow when you think about the combined $1.4 billion year-over-year improvement in net interest income, net losses and the reserve change, we shared $367 million of that through the RSA.\nFocusing on our credit performance, provision for losses was $25 million.\nIncluded in this quarter's provision was reserve release of $407 million which incorporated our continued strength in credit performance and we're optimistic macroeconomic environment and the impact of reclassifying our Gap portfolio loan receivables to held for sale.\nThis resulted in a reserve reduction of approximately $247 million.\nOther income decreased $37 million, generally reflecting higher loyalty program costs from higher purchase volume during the quarter.\nOther expense decreased $106 million compared to the prior year.\nAs you recall, last year we recognized an $89 million restructuring charge and we continue to see favorability from lower operational losses.\nThe 10% year-over-year increase in Home & Auto was generally driven by strong retailer performance across almost all verticals while purchase volume in Diversified & Value increased 25% reflecting the continued return to in-person retail experiences.\nIn Digital, the 21% increase was due to broad-based growth across our partners coupled with growth in our new programs with Verizon and Venmo.\nIn Health & Wellness, the 10% growth in purchase volume primarily reflected consumers being more comfortable with the environment and undergoing planned procedures.\nMeanwhile, purchase volume grew a more modest 2% in lifestyle reflecting broad-based growth across the platform, but having a tough comparable to last year's strong growth in power sports.\nAverage active account trends ranged on a platform basis up by as much as 10% in Diversified & Value and 7% in Digital while Home & Auto and Health & Wellness average active accounts were generally flat.\nPayment rates were approximately 260 basis points higher than our five-year historical average.\nThat said, we've begun to see some signs of moderation in certain cohorts as payment rate was about 200 basis points higher year-over-year compared to almost 300 basis points higher year-over-year comparison in the second quarter.\nInterest and fees were up approximately 2% in the third quarter reflecting [Phonetic] average loan receivable growth.\nNet interest income increased 6% from last year reflecting the year-over-year improvement in interest and fees as well as lower interest expense for the period.\nThe net interest margin was 15.45% compared to last year's margin of 13.8%, a 165 basis point improvement year-over-year driven by the mix of interest earning assets and favorable interest bearing liabilities costs.\nMore specifically, the mix of loan receivables as a percent of total earning assets increased by 550 basis points from 78.3% to 83.8% driven by lower liquidity held during the quarter.\nThis accounted for 106 basis point increase in our net interest margin.\nInterest bearing liabilities costs were 1.31%, a year-over-year improvement of 59 basis points primarily due to lower benchmark rates and funding mix.\nThis provided a 51 basis point increase in our net interest margin.\nThe loan receivables yield was 19.59%, a year-over-year improvement of 10 basis points.\nThis resulted in an 8 basis point improvement in our net interest margin.\nOur 30-plus delinquency rate was 2.42% compared to 2.67% last year.\nOur 90 plus delinquency rate was 1.05% compared to 1.24% last year.\nIt should be noted that removing the impact of the Gap program from the third quarters of this year and last year, the 30-plus delinquency metric would have been down about 40 basis points versus 25 basis points and the 90 plus metric would be down about 25 basis points instead of 19 basis points.\nAnd in terms of our portfolio's loss performance, our net charge-off rate was 2.18% compared to 4.42% last year.\nOur allowance for credit losses as a percent of loan receivables was 11.28%.\nOverall expenses were down $106 million or 10% from last year to $961 million primarily reflecting the impact of the prior year's restructuring charge of $89 million and lower operational losses.\nThe efficiency ratio for the third quarter was 38.7% compared to 39.7% last year.\nOur deposits declined by $3.2 billion from last year and our securitized and unsecured funding sources declined by $3 billion.\nThis resulted in deposits being 82% of our funding, compared to 80% last year with securitized and unsecured funding each comprising 9% of our funding sources at quarter-end.\nTotal liquidity including undrawn credit facilities was $18.4 billion which equated to 20% of our total assets, down from 28% last year.\nWith this framework, we ended the quarter at 17.1% CET1 under the CECL transition rules, 130 basis points above last year's level of 15.8%.\nThe Tier 1 capital ratio was 18% in the CECL transition rules compared to 16.7% last year.\nThe total capital ratio increased 120 basis points to 19.3% and the Tier 1 capital plus reserves ratio on a fully phased in basis decreased to 26.6% compared to 27.3% last year.\nDuring the quarter, we returned $1.4 billion to shareholders, which included $1.3 billion in share repurchases and $124 million in common stock dividends.", "summaries": "Net earnings were $1.1 billion or $2 per diluted share and included a $0.33 benefit from the reserve release related to the reclassification of the Gap portfolio to held for sale.\nAverage active accounts increased 5% compared to last year and new accounts increased 17% totaling more than 6 million new accounts in the third quarter and over 17.5 million new accounts.\nFocusing on our credit performance, provision for losses was $25 million.", "labels": 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{"doc": "We delivered a 53% sales increase year over year with double-digit gains in every segment, business, and region.\nWe also recorded a 7% increase in sales over the prior quarter.\nWe captured strong price momentum, driven by tight supply demand balances across our key value chains, and we achieved volume growth of 2% both year over year and sequentially, supported by continued strong end-market demand despite supply and logistics constraints.\nWe increased operating EBIT by more than $2.1 billion year over year with improvements in all segments and businesses and $58 million higher sequentially.\nKey contributors included year-over-year margin expansion of 1,170 basis points, driven by price momentum and demand growth, and increased equity earnings, up $189 million, for margin expansion at our Sadara and Kuwait joint ventures.\nOur continued focus on cash generation and our balanced disciplined capital allocation enabled us to deliver cash flow from operations of $2.7 billion, up $958 million year over year, driven by margin expansion from price momentum in key value chains.\nWe returned a total of $918 million to shareholders through our industry-leading dividend of $518 million, plus $400 million in share repurchases.\nAnd we also reduced gross debt by more than $1.1 billion in the quarter.\nOur proactive liability management actions to tender existing notes have resulted in no long-term debt maturities due until 2026, and we've reduced annual interest expense by more than $60 million.\nIn the packaging and specialty plastics segment, operating EBIT was $2 billion, compared to $647 million in the year-ago period.\nSequentially, operating EBIT was down $60 million.\nOn a sequential basis, operating EBIT margins declined by 300 basis points on higher feedstock and energy costs.\nOperating EBIT was $713 million, up $609 million year over year, primarily due to continued tight supply and demand in both businesses.\nSequentially, operating EBIT was up $65 million, and operating EBIT margins expanded by 50 basis points on volume and price gains in both businesses.\nAnd finally, the performance materials and coatings segment reported operating EBIT of $284 million, up $209 million versus the same quarter last year as margins increased 750 basis points due to strong price momentum and robust demand recovery for silicones and industrial coatings offerings.\nSequentially, operating EBIT was up $59 million on price gains, leading to margin expansion of 210 basis points.\nWe expect these costs to be an approximately $350 million headwind sequentially.\nWe also anticipate a $175 million tailwind from turnarounds in the quarter as we completed our planned maintenance at our cracker in Canada.\nAltogether, we anticipate $100 million in this segment from turnaround impacts.\nShort-term increased energy costs in the U.S. Gulf Coast and Europe are expected to be an additional $100 million headwind in the quarter.\nOur current estimate for the quarter includes $125 million from increased raw material costs and turnaround impacts.\nOn Slide 6, as we look ahead, we expect robust economic growth to continue.\nAs a result, we expect tighter-than-forecasted market conditions to continue, a view strengthened by China's recent dual control policy that has impacted both cold olefins and methanol to olefins-based capacity, which represent more than 30% of China's total polyethylene production.\nAt our investor day earlier this month, we outlined how our differentiated portfolio and our focus on sustainability-driven innovation will enable more than $3 billion in underlying EBITDA improvement across the cycle.\nOur restructuring program and digital investments will yield $600 million in increased EBITDA.\nBoth are in progress, and our restructuring program is on track to achieve its $300 million run rate by year end.\nWe also have a suite of higher return, lower risk, and faster payback capital and operating investments that will enable an additional $2 billion in EBITDA in the near term.\nAnd our investments to decarbonize and grow at our Fort Saskatchewan site in Alberta, Canada are also expected to deliver approximately $1 billion in increased EBITDA.\nOur capital investments are expected to generate $1 billion in EBITDA through incremental capacity expansions, debottlenecking, and enhanced feedstock flexibility across our operating segments.\nFor example, in packaging and specialty plastics, our Fort Saskatchewan expansion to add ethylene capacity of 65,000 metric tons per year to support growing polyethylene demand is now complete and will ramp by the end of the fourth quarter.\nOur FCDH pilot plant in Louisiana will start up in 2022, featuring 20% to 40% lower capex and 5% to 7% lower opex while reducing CO2 emissions by up to 20% compared to other PDH technologies.\nIn industrial intermediates and infrastructure, our debottlenecking project to add 60,000 metric tons per year of aniline will be fully online by year end.\nAnd we are progressing our 50 kt methacrylate investment on the U.S. Gulf Coast to support global end markets, such as inks, resins, and packaging materials, which is scheduled to come online in the first half of next year.\nIn addition, our operating investments are also expected to generate another $1 billion in EBITDA as we improve our production capabilities and shift our product mix to higher growth and higher value markets.\nOur ECOFAST collaboration with Ralph Lauren lowers energy usage by 40% and water usage by 50% in the fabric dying process.\nAnd by 2025, the brand aims to incorporate this technology in more than 80% of its solid cotton products.\nIn performance materials and coatings, we're expanding our ability to formulate differentiated silicones for a number of attractive markets, including silicone adhesives for foldable displays in consumer electronics, thermal conducted silicone solutions for electric vehicles, and silicone solutions for 5G where the market is expected to more than double over the next 10 years.\nCollectively, our slate of near-term investments will generate an increase of approximately $2 billion in underlying EBITDA, and we intend to deliver this growth with a disciplined and balanced approach, maintaining our top quartile performance in cash flow, cost structure, debt reduction, and shareholder remuneration.\nOur plan enables us to capture demand from sustainability drivers, achieve zero Scope 1 and 2 carbon emissions, and deliver meaningful underlying earnings and cash flow growth for years to come.\nThis plan will deliver a 30% reduction in our CO2 emissions between 2005 and 2030 through a disciplined approach that manages timing based on affordability, macro and regulatory drivers around the world.\nOur Texas 9 cracker proves that we can do this and do it well.\nTexas-9 is 60% lower-carbon intensity than any asset in our fleet, and that's without any specific design for carbon capture or hydrogen.\nThe project was delivered with 20% better capital efficiency and 12 months faster than any other crackers built in that wave.\nOverall, the project has a 65% lower conversion cost, is running consistently at more than 110% of nameplate capacity, and has delivered greater than 15% return on invested capital since start-up.\nWe will leverage key learnings from Texas-9 as we plan to build the world's first-ever net-zero carbon emissions ethylene cracker and derivatives complex in Fort Saskatchewan, Alberta, delivering approximately $1 billion in EBITDA, as Howard outlined earlier.\nThis project will more than triple our ethylene and downstream derivative capacity at the site while decarbonizing emissions for 20% of our global ethylene capacity.\nWe are committed to keeping capex at or below D&A, well below pre-spin levels while targeting return on invested capital above 13% across the economic cycle.\nAnd we'll invest approximately $1 billion per year to decarbonize our footprint and grow earnings.\nWe have actions in place to both decarbonize our footprint and grow the enterprise as we achieve an additional $3 billion in underlying EBITDA, maintain industry-leading cash flow generation, and drive toward zero Scope 1 and 2 carbon emissions.\nOur balanced capital allocation approach targets more than 13% return on invested capital, keeps capex within D&A, and return 65% of net income to shareholders across the economic cycle.", "summaries": "On Slide 6, as we look ahead, we expect robust economic growth to continue.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "You can see on this slide the tremendous progress we have made as an organization over the past two decades, reducing our total recordable incident rate, or TRIR, by 74% since 2002.\nAs part of our continuous improvement approach to safety, we relaunched our highly successful Safety Starts with Me: Live It 3-6-5 program this year.\nAdjusted EBITDA in Q1 was $129.5 million, which included $5.4 million in benefits from government assistance programs.\nOur margin grew by an impressive 130 basis points to 16%, reflecting the benefits of our cost controls, along with productivity and pricing initiatives.\nWe also generated strong adjusted free cash flow of more than $62 million.\nAdjusted EBITDA was down 4% from a year ago, mostly due to the lower revenue.\nEven so, our margins were up 70 basis points and this was driven by a combination of pricing, cost savings, revenue mix and $4.5 million in government assistance.\nRevenue from our COVID-19 decon work totaled $28 million in Q1, which was higher than we anticipated.\nWe've now completed well over 17,000 total COVID responses since the program began a little over a year ago.\nIn Q1, our incineration utilization dipped to 80%, entirely due to the lost days in February at both our Deer Park and El Dorado incinerator as a result of the storm.\nAt the same time, we continue to gather a lot of high-value waste streams and record number of drums, which pushed our average price up 8% from a year ago.\nThe adverse weather and strong volumes drove our deferred revenue to the highest level in our history at $83.2 million, providing us with a terrific backlog heading into Q2.\nLandfill volumes were down 29% due to less projects, while average pricing rose 24%, which helped to offset a portion of that volume decline.\nThe pace of parts washer services picked up nicely in the quarter, growing 6% from Q4 to 235,000 services.\nOn a sequential basis, SKSS revenue increased 19% from Q4, fueled by stronger demand and higher pricing.\nAdjusted EBITDA in this segment climbed 31% to go along with a 480 basis point margin improvement, which reflects the widening of our rerefining spread.\nGovernment programs accounted for $800,000 of contribution in Q1 in this segment.\nWaste oil collections were modest at 47 million gallons.\nGiven our Q1 results, we now expect $30 million to $40 million in COVID-related revenues for the full year 2021.\nAs expected, revenue declined 6% year-over-year, but was up sharply in March versus the same month last year.\nAdjusted EBITDA grew 3% to $129.5 million.\nOur cost reduction programs, productivity initiatives and mix of revenue, combined with $5.4 million of government program assistance, resulted in 130 basis points improvement in gross margin.\nIf you back out the government monies, our EBITDA margin improved a healthy 60 basis points.\nDepreciation and amortization in Q1 declined to $72.2 million, in line with our expectations.\nFor 2021, we continue to anticipate depreciation and amortization in the range of $280 million to $290 million.\nIncome from operations increased by 12%, reflecting our cost controls and revenue mix in the quarter.\nCash and short-term marketable securities at March 31 were $570.7 million, flat with year-end and up more than $76 million from the same quarter a year ago.\nOur debt was $1.56 billion at quarter end, with leverage on a net debt basis at 1.8 times.\nOur weighted average cost of debt is 4.2% with no debt maturities until 2024.\nCash from operations in Q1 was extremely strong at $103 million.\ncapex, net of disposals, was down year-over-year at $40.7 million, which was slightly below our expectation, mainly due to timing of some projects.\nThe result of these two items, along with some other smaller factors, was a record Q1 adjusted free cash flow of $62.3 million.\nFor 2021, we continue to expect net capex in the range of $185 million to $205 million, which is higher than 2020.\nDuring the quarter, we bought back 300,000 shares at a total cost of $26.5 million.\nOf our $600 million authorization, we now just -- we now have just over $180 million remaining.\nWe now expect adjusted EBITDA in the range of $560 million to $600 million with a midpoint of $580 million.\nLooking at guidance from a quarterly perspective, we expect Q2 adjusted EBITDA to be 15% to 20% above prior year levels based on the positive momentum we are experiencing in our business and the pandemic-related slowdown in Q2 a year ago.\nAt the midpoint of that range, our adjusted EBITDA would be 6% higher than Q2 of 2019.\nHowever, these benefits will not offset the decline in high-margin decontamination work, and more significantly, the large contribution from government assistance programs in 2020 that totaled $35.6 million in this segment.\nFor Safety-Kleen Sustainability Solutions, we anticipate adjusted EBITDA to increase in the range of 50% to 60% from 2020.\nThese improvements in the SKSS segment in 2021 will more than offset the $3.7 million in government assistance that SKSS received in 2020.\nFor 2021, our adjusted EBITDA guidance now assumes receiving a total of $7 million to $9 million of government program assistance, primarily from Canada.\nBased on our current EBITDA guidance and working capital assumptions, we now expect 2021 adjusted free cash flow in the range of $230 million to $270 million or a midpoint of $250 million.\nSecond, we expect to improve our adjusted EBITDA margins between 30 to 50 basis points annually, excluding extraordinary items such as government assistance programs.\nThird, we are targeting more than $300 million of adjusted free cash flow by 2025.", "summaries": "As expected, revenue declined 6% year-over-year, but was up sharply in March versus the same month last year.\nWe now expect adjusted EBITDA in the range of $560 million to $600 million with a midpoint of $580 million.\nLooking at guidance from a quarterly perspective, we expect Q2 adjusted EBITDA to be 15% to 20% above prior year levels based on the positive momentum we are experiencing in our business and the pandemic-related slowdown in Q2 a year ago.\nBased on our current EBITDA guidance and working capital assumptions, we now expect 2021 adjusted free cash flow in the range of $230 million to $270 million or a midpoint of $250 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n1\n0\n0"}
{"doc": "We are pleased to implement this new framework, beginning with an increase in the quarterly common dividend to $0.13 per share.\nWe diligently delivered on these cash flow priorities throughout 2021, including the repayment of approximately $6.7 billion of debt.\nWe now expect that our net debt will be below $25 billion by the end of the first quarter of 2022, which will mark a change in how excess cash flow will be allocated going forward.\nMultiple drilling and completion records were set across our domestic and international businesses as our production for the year averaged 1.167 million BOE per day.\nThat's 27,000 BOE per day higher than our initial guidance.\nOur reserves for year-end 2021 increased to 3.5 billion BOE, representing a reserve replacement ratio of 241%.\nWe are proud to be one of only a few oil and gas companies with net-zero goals that are aligned with the Paris Agreement's 1.5-degree Celsius pathway.\nIn December, Oxy became the first U.S. upstream oil and gas company to enter into a sustainability-linked revolving credit facility, which includes absolute reductions in our combined Scopes 1 and 2 CO2 equivalent emissions as the key performance indicator.\nWe set additional interim emission targets to further refine our net-zero pathway, including a short-term target to reduce our CO2 equivalent emissions to approximately 3.7 million metric tons per year below our 2021 level and to accomplish that by 2024.\nWe set a medium-term target to facilitate the geologic storage or use of 25 million metric tons per year of CO2 in Oxy's value chain by 2032.\nWe also endorsed the Methane Guiding Principles and Oil and Gas Methane Partnership 2.0, a climate and clean air coalition initiative led by the United Nations Environment program.\nWe continue to apply free cash flow toward reducing debt and strengthening our balance sheet, repaying an additional $2.2 billion of debt in the fourth quarter.\nOxyChem delivered record earnings for the second consecutive quarter as performance throughout the year culminated in 2021 being OxyChem's strongest in over 30 years.\nWe have sized our capital plan to sustain production in 2022 at 1.155 million BOE per day while investing in high-return projects that will provide cash flow stability throughout the cycle.\nOur sustaining capital, which we define as the capital required to sustain production in the $40 WTI environment over a multiyear period, remains industry-leading.\nOur multiyear sustaining capital is expected to increase from our 2021 capital budget of $2.9 billion, the reduced inventory of drilling uncompleted wells and additional investment in our Gulf of Mexico and EOR assets, to optimize the long-term productivity of our reservoirs and facilities.\nAs we expect net debt to fall below $25 billion by the end of the first quarter, our focus has expanded to returning capital to shareholders, beginning with the increase in our common dividend to $0.13 per share and the reactivation and expansion of our share repurchase program.\nThe increase in the dividend to $0.13 per share is consistent with our intention to initially increase the dividend to a level that approximates the yield of the S&P 500.\nAny future production growth will be limited to an average annual rate of approximately 5%.\nAs Vicki mentioned, the first phase of our shareholder return framework consists of the debt reduction; an increase in the common dividend to $0.13 per share; and the reactivation, expansion of our share repurchase program.\nWith net debt expected to be below $25 billion by the end of the first quarter, we are ready to begin returning more capital to shareholders, but we'll continue to prioritize debt reduction to focus on our medium-term goal of regaining our investment-grade credit rating.\nWe then prioritized retirement of an initial $5 billion of debt to drive our net debt toward our next milestone of $20 billion.\nWe intend to provide our shareholders with a competitive common dividend while maintaining a long-cycle cash flow breakeven at $40 WTI or less.\nIn addition to increasing the common dividend to $0.13 per share, we intend to purchase approximately $3 billion of outstanding shares of common stock.\nWe intend to make substantial progress toward retiring an additional $5 billion of debt before initiating share repurchases.\nIn the fourth quarter, we announced an adjusted profit of $1.48 and a reported profit of $1.37 per diluted share.\nThe purchase and sale prices of these transactions largely offset each other, while the EOR acquisition added approximately 5,000 BOE per day of low-decline production, as well as increasing our inventory of potential CCUS opportunity.\nWe exited the fourth quarter with approximately $2.8 billion of unrestricted cash on the balance sheet after repaying approximately $2.2 billion of debt in the quarter.\nIn total, last year, we paid approximately $6.7 billion of debt and retired $750 million of notional interest rate swaps.\nWe estimate that the balance sheet improvements executed in 2021 will reduce interest and financing costs by almost $250 million per year going forward, which will fund approximately half of the increase in our common dividend.\nIt was primarily driven by higher accounts receivable balance due to higher commodity prices and, to a lesser extent, an increase in inventories, including a higher number of barrels on the water at year-end.\nIn addition to cash on hand, we have $4.4 billion of committed unutilized bank facility.\nWe expect our full year production to average 1.155 million BOE per day in 2022.\nThe increase in Permian production is expected to result in domestic cash margins improving by -- in 2022 as the companywide oil cut increases approximately 54.5%.\nThe mid-cycle level of capital we intend to spin this year provides flexibility to sustain production in 2023 and beyond at our multiyear sustaining capital level of $3.2 billion in a $40 price environment.\nOn past earnings calls, we had discussed several of the initiatives Low Carbon Ventures is developing and Oxy's ambition to achieve net zero before 2050.", "summaries": "We are pleased to implement this new framework, beginning with an increase in the quarterly common dividend to $0.13 per share.\nAs we expect net debt to fall below $25 billion by the end of the first quarter, our focus has expanded to returning capital to shareholders, beginning with the increase in our common dividend to $0.13 per share and the reactivation and expansion of our share repurchase program.\nThe increase in the dividend to $0.13 per share is consistent with our intention to initially increase the dividend to a level that approximates the yield of the S&P 500.\nAs Vicki mentioned, the first phase of our shareholder return framework consists of the debt reduction; an increase in the common dividend to $0.13 per share; and the reactivation, expansion of our share repurchase program.\nIn addition to increasing the common dividend to $0.13 per share, we intend to purchase approximately $3 billion of outstanding shares of common stock.\nIt was primarily driven by higher accounts receivable balance due to higher commodity prices and, to a lesser extent, an increase in inventories, including a higher number of barrels on the water at year-end.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "Excluding a special item with a net after-tax benefit of $32 million, we earned $450 million or $0.60 per diluted share.\nYear-to-date, we've generated more than $3.4 billion of adjusted EBITDA and $2.4 billion of adjusted funds available for distribution.\nTimberlands earnings increased by $20 million in the quarter, which included a $32 million gain on the previously announced sale of our North Cascades Timberlands.\nAdjusted EBITDA decreased by $15 million compared to the second quarter.\nIn the West, adjusted EBITDA decreased by $13 million compared to the second quarter.\nTo date, we've completed approximately 80% of our planned salvage harvest and expect to conclude most of this work by year-end.\nTurning to Real Estate, Energy and Natural Resources on pages 10 and 11.\nReal estate and ENR contributed $45 million to third quarter earnings and $60 million to adjusted EBITDA.\nThird quarter adjusted EBITDA was $31 million lower than the second quarter due to timing of transactions, but comparable to the year ago quarter.\nMoving to Wood Products, pages 12 through 14.\nWood Products earnings and adjusted EBITDA decreased by approximately 60% compared to the prior quarter as lumber and OSB pricing declined substantially from record levels earlier in the year before stabilizing later in the quarter.\nOur EWP business established a new quarterly EBITDA record in the third quarter and the overall Wood Products segment has achieved year-to-date adjusted EBITDA of more than $2.8 billion.\nAdjusted EBITDA for our lumber business decreased $686 million compared to the second quarter.\nOur sales realizations decreased by 52% in the third quarter while the framing lumber composite pricing decreased by 61%.\nAdjusted EBITDA for our OSB business decreased by $128 million compared to the second quarter.\nOur sales realizations decreased by 24% in the third quarter while the OSB composite pricing decreased by 43%.\nEngineered Wood Products adjusted EBITDA increased $23 million compared to the second quarter, a 43% improvement.\nIn Distribution, adjusted EBITDA decreased by $53 million compared to the second quarter.\nDespite lower sales volumes for most products and significantly lower margins resulting from the commodity price correction, our teams did a great job navigating these challenges and delivered $22 million of adjusted EBITDA in the third quarter.\nI'll begin with our key financial items, which are summarized on page 16.\nWe generated $659 million of cash from operations in the third quarter, bringing our year-to-date total to nearly $2.7 billion, our highest year-to-date operating cash flows on record.\nAdjusted funds available for distribution or adjusted FAD, for year-to-date, third quarter 2021 totaled over $2.4 billion, as highlighted on page 17.\nYear-to-date, we have returned $382 million to our shareholders through the payment of our quarterly base dividend, and we will supplement the base dividend each year with an additional return of cash to achieve the targeted 75% to 80% of adjusted FAD.\nHowever, as a result of the record year-to-date performance, we accelerated a portion of the supplemental dividend by returning $375 million to our shareholders through our previously announced $0.50 per share interim supplemental dividend earlier this month.\nDuring the third quarter, we also returned $26 million to shareholders through share repurchases.\nFurther, as previously announced, we authorized a new $1 billion share repurchase program.\nWe ended the quarter with approximately $2.3 billion of cash and just under $5.3 billion of debt.\nSubsequent to quarter end, we repaid our $150 million or 9% note at maturity, which brings our debt balance to $5.1 billion.\nLooking forward, key outlook items for the fourth quarter are presented on page 18.\nIn our Timberlands business, we expect fourth quarter earnings and adjusted EBITDA will be comparable to the third quarter.\nFourth quarter earnings and adjusted EBITDA will be significantly lower than third quarter due to timing of transactions.\nWe continue to predict full year 2021 adjusted EBITDA will be approximately $290 million, and we now expect basis as a percentage of real estate sales to be approximately 25% to 30% for the full year.\nExcluding the effect of changes in average sales realizations for lumber and oriented strand board, we expect fourth quarter earnings and adjusted EBITDA will be higher than the third quarter.\nAs shown on page 19, our current and quarter-to-date realizations for lumber are slightly higher than the third quarter average.\nAs shown on page 19, our current and quarter-to-date realizations for oriented strand board are significantly lower than the third quarter average, but still elevated compared to historical standards.\nWe now anticipate our full year outlook for capital expenditures to be slightly below our previous guidance of $460 million as a result of supply chain and contract labor constraints with $15 million to $25 million potentially at risk.\nThe $90 million tax refund associated with our 2018 pension contribution was approved during the second quarter.\nNotwithstanding a slight decrease from the prior quarter, U.S. housing activity remained strong in the third quarter, with total housing starts and permits averaging around 1.6 million units on a seasonally adjusted basis.", "summaries": "Excluding a special item with a net after-tax benefit of $32 million, we earned $450 million or $0.60 per diluted share.\nWe ended the quarter with approximately $2.3 billion of cash and just under $5.3 billion of debt.\nIn our Timberlands business, we expect fourth quarter earnings and adjusted EBITDA will be comparable to the third quarter.\nFourth quarter earnings and adjusted EBITDA will be significantly lower than third quarter due to timing of transactions.\nExcluding the effect of changes in average sales realizations for lumber and oriented strand board, we expect fourth quarter earnings and adjusted EBITDA will be higher than the third quarter.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "For the quarter, we reported adjusted diluted net earnings per share of $0.94, an 8% increase year-over-year.\nWe increased core operating margins by 160 basis points and generated another quarter of strong free cash flow while prioritizing growth investments across our portfolio to drive continued share gains.\nAdjusted net earnings were $338.5 million, up 8.8% from the prior year, and adjusted diluted net earnings per share were $0.94.\nTotal sales increased 2.3% to $1.9 billion, with core revenue essentially flat, reflecting significant sequential improvement from the prior quarter.\nAcquisitions contributed 220 basis points of growth, and favorable foreign currency exchange rates increased growth by 20 basis points.\nAdjusted gross margins were 51.8% in the third quarter, increasing 50 basis points year-over-year.\nGross margins benefited from 50 basis points of price, the growing contribution of our higher-margin software businesses and disciplined supply chain execution.\nWe also generated 160 basis points of core operating margin expansion, resulting in an adjusted operating profit margin of 22.7% for the quarter.\nDuring the third quarter, we generated $455 million of free cash flow, representing conversion of 134% of adjusted net earnings and an increase of 31% year-over-year.\nThis performance took our year-to-date free cash flow up to approximately $1.1 billion, representing a year-over-year increase of approximately 48%.\nProfessional Instrumentation posted a total revenue increase of 0.9% despite a 3.5% decline in core revenue.\nAcquisitions contributed 370 basis points, while favorable foreign exchange rates increased growth by 70 basis points.\nCore operating margin increased 90 basis points, resulting in segment-level adjusted operating margin of 22.8%.\nTotal revenue increased 4.5%, including a 5.5% increase in core revenue.\nCore operating margin increased 290 basis points, resulting in segment-level adjusted operating margin of 25.9%.\nStrength in China was broad based, highlighted by mid-teens year-over-year growth at Fluke, double-digit growth at Advanced Sterilization Products and greater than 20% growth in Sensing.\nGroup I, which represented approximately 20% of new Fortive revenue in Q3, continued to show significant resilience, posting low single-digit growth.\nGroup II, which represented approximately 32% of new Fortive revenue in Q3, recorded a low single-digit decline.\nWe now estimate that elective procedures in the U.S. are back to approximately 90% of pre-COVID levels and are back to approximately 95% in both China and Europe.\nGroup III, which represented approximately 12% of new Fortive in Q3, saw a high single-digit decline in the quarter.\nGroup IV, which represented approximately 36% of new Fortive Q3 revenue, declined by high single digits in the quarter but saw a meaningful sequential improvement and performed ahead of our forecast.\nIncluding the recent proceeds from Vontier, our net debt is now approximately $2.8 billion, down from over $5.1 billion at the end of 2019.\nWe also expect to monetize our remaining 19.9% stake in Vontier in a tax-efficient manner, with timing subject to market conditions.\nIn Q4, we expect the total revenue will increase zero to 3% on a year-over-year basis.\nWe also expect to deliver incremental margins of approximately 35%.\nFinally, we are planning to execute approximately $30 million of strategic productivity initiatives before the end of the year, in line with our prior expectation that some of the temporary actions we executed early in the year would be made permanent as we turn the corner into 2021.\nThe Intelligent Operating Solutions segment includes Fluke, Industrial Scientific, Intelex, Accruent and Gordian and represents approximately 40% of new Fortive total revenue.\nThis segment provides solutions to accelerate field and facility safety, reliability and productivity as well as operating intelligence to a range of end users and addresses a total available market of greater than $15 billion.\nPrecision Technologies segment includes Tektronix, Pacific Scientific EMC and the Sensing businesses, which will now also include Qualitrol and represent approximately 35% of new Fortive total revenue.\nThis segment provides mission-critical technologies that enable our customers to accelerate the development of innovative products and solutions and addresses a total available market of greater than $10 billion.\nThe Advanced Health Care Solutions segment includes Advanced Sterilization Products, Fluke Health Solutions, Censis and Invetech and represents approximately 25% of new Fortive total revenue.\nThis segment provides solutions that enhance patient safety, prevent hospital infections, deliver operating efficiencies and accelerate healthcare system innovation and addresses a total available market of greater than $5 billion.", "summaries": "Total sales increased 2.3% to $1.9 billion, with core revenue essentially flat, reflecting significant sequential improvement from the prior quarter.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "This mission began in 1998 when our founder and Chairman, Dan Gilbert, wrote an email committing all of the company's resources to moving online.\nWe've continued to strengthen our digital products and infrastructure in 2020, deploying nearly 4,500 product features throughout the year and delivering improvements to our platform every 28 minutes on average.\nI'm pretty sure the majority of you were among the nearly 100 million fans who watched the Super Bowl a couple of weeks ago.\n1 and 2 on USA Today's ad meter, which I am certain is the most prestigious consumer ranking of top Super Bowl ads.\nAll told, our Super Bowl activation resulted in more than 3.3 billion consumer impressions.\nAnother pillar of our business model is the incredible Rocket Cloud Force, now consisting of more than 6,600 U.S.-based professionals trained to advise our clients on complex transactions.\nIn fact, since the beginning of 2019, data science has driven more than $75 billion in application volume.\nIt took our company 25 years to close our first 1 million loans.\nIn 2020 alone, we have helped more than 1.1 million clients with their mortgage, automotive, real estate, or personal loan needs.\nStarting from zero in 2017, we've organically scaled Rocket Auto to more than $750 million of gross merchandise value in 2020.\nPartner volume made up 38% of our closed loan volume in 2020, up from 23% just two years ago.\nAll of our businesses performed above expectations, leading to a full-year adjusted revenue of $16.9 billion and adjusted EBITDA of $11.1 billion.\nAs Julie will soon explain, our Board has authorized a special dividend of $1.11 per share for holders of our stock as of March 9 to be paid on March 23.\nJulie and I have worked together inside this company for 17 years.\nFor the full-year of 2020, Rocket Companies generated $16.9 billion of adjusted revenue and $11.1 billion of adjusted EBITDA as we wrapped up a record-setting year.\nFor the full-year 2020, we generated $320 billion of closed loan volume, representing an increase of 121% year over year.\n2020 was also a year of robust growth across Rocket Companies, with particular strength at Amrock, our title company, with revenues increasing 124% to $1.3 billion during the year.\nRocket Auto, our automotive retail marketplace, also generated robust results orchestrating more than $750 million in gross merchandise value of automotive e-commerce transactions.\nThis equates to just over 32,000 auto units in 2020 up more than 60% as compared to 2019.\nWe finished 2020 on a particularly strong note, with fourth-quarter rate lock volume of $96 billion and closed loan volume of $107 billion, both significantly exceeding the high end of our expectations.\nRocket Homes also finished the year on a strong note as they assisted clients with nearly $1.6 billion of real estate transactions during the fourth quarter alone.\nOur full-year closed volume growth of 121% substantially exceeded any estimate of the overall industry's growth from third-party sources, which estimates 67% growth on average.\nTo put this in perspective, Rocket Mortgage's incremental closed volume of $175 billion in 2020 and was more than double the growth of any other market participant.\nFor the full-year 2020, a Rocket's adjusted revenue increased by $11 billion year over year.\nWe drove this revenue growth while only adding $2 billion of expenses during the year, or $3 billion of annualized operating expenses based on our fourth quarter.\nAs an example, our data science team now includes over 300 professionals.\nWe are very impressed with our initial pilot where we are seeing 20% improvement in turn times within the pilot group.\nIn two years, our partner network has grown from less than $20 billion in closed loan volume to $120 billion on an annual basis.\nWe expect closed loan volume of $98 billion to $103 billion compared to $51.7 billion in the first quarter of 2020; net rate lock volume of $88 billion to $95 billion, up from $56 billion in the first quarter of 2020; and gain-on-sale margins of 3.6% to 3.9% compared to 3.25% in the first quarter of 2020.\nWe ended 2020 with an extremely strong balance sheet, including $2 billion of cash and $7.7 billion of total liquidity.\nGiven our record level of profitability in 2020, the Board approved a special dividend of $1.11 per Class A common share funded by an equity distribution of $2.2 billion.\nAdditionally, we remain authorized to repurchase up to $1 billion of Rocket Companies' common stock.", "summaries": "As Julie will soon explain, our Board has authorized a special dividend of $1.11 per share for holders of our stock as of March 9 to be paid on March 23.\nWe expect closed loan volume of $98 billion to $103 billion compared to $51.7 billion in the first quarter of 2020; net rate lock volume of $88 billion to $95 billion, up from $56 billion in the first quarter of 2020; and gain-on-sale margins of 3.6% to 3.9% compared to 3.25% in the first quarter of 2020.\nGiven our record level of profitability in 2020, the Board approved a special dividend of $1.11 per Class A common share funded by an equity distribution of $2.2 billion.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0"}
{"doc": "Yesterday, we reported record earnings of $1.24 per share compared with $0.76 in the prior year's quarter and $1.06 sequentially.\nRevenue was a record $159.7 million for the quarter compared with $116.6 million in the prior year's quarter and $154.3 million sequentially.\nOur implied effective fee rate was 58.1 basis points in the fourth quarter compared with 57.5 basis points in the third quarter.\nExcluding performance fees, our fourth quarter implied effective fee rate would have been 57 basis points, and our third quarter implied effective fee rate would have been 57.3 basis points.\nOperating income was a record $82.6 million in the quarter compared with $49.4 million in the prior year's quarter and $70.4 million sequentially.\nOur operating margin increased to a record 51.7% from 45.6% last quarter, primarily due to the cumulative adjustment mentioned a moment ago, which reduced compensation and benefits to reflect actual amounts to be paid.\nExpenses decreased 8.1% when compared with the third quarter as lower compensation and benefits was partially offset by higher G&A.\nThe compensation-to-revenue ratio, which included the cumulative adjustment was 26.16% for the quarter.\nFor the year, the compensation-to-revenue ratio was 32.22%.\nOur effective tax rate, which was 25.36% for the quarter, included a cumulative adjustment to bring the rate to 26.15% for the year.\nOur firm liquidity totaled $248.2 million at quarter-end, compared with $241 million last quarter.\nFirm liquidity as of December 31 reflected the payment of a special cash dividend in December of $60.3 million or $1.25 per share.\nOver the past 12 years, we have paid a total of $15.25 per share in special dividends, and we continue to be debt-free.\nAssets under management totaled a record $106.6 billion at December 31, an increase of $9.4 billion or 10% from September 30.\nThe increase was due to net inflows of $1.8 billion and market appreciation of $9.1 billion, partially offset by distributions of $1.6 billion.\nWe intend to balance anticipated revenue growth from year-end assets under management that exceeded our full-year assets under management by about 13%.\nAs a result, we expect that our compensation-to-revenue ratio will increase to 33.75% and from the 32.22% recorded in 2021.\nContinuing with the theme of investing in our business, we expect G&A to increase 10% to 15% from the $47.2 million we recorded in 2021.\nWe expect that our effective tax rate will remain at 26.15% in 2022.\nAnd finally, you will recall that a year ago, we noted that we were anticipating the redemption of $1 billion global real estate institutional account in 2021.\nOur largest asset class, U.S. REITs, was the best performing sector in the S&P, returning over 16% in the quarter.\nFor the full year, our asset classes performed well, with U.S. REITs up 41%, global real estate up 26%, listed infrastructure up 15%, resource equities up 24%, and preferred is up nearly 3%.\nWith the last reading at 7%, CPI is currently at the largest gap to the federal funds rate in our professional lifetimes.\nWe believe inflation could stabilize in the high 2% ZIP code or 100 basis points higher than the pre-pandemic trend line.\nFor the last 12 months, nine of nine core strategies outperformed.\nMeasured by AUM, 99% of our portfolios are outperforming benchmarks on a one-year basis compared with 79% last quarter.\nThe improvement was attributable primarily to global real estate, which improved from 25% outperforming in the third quarter to 95% outperforming as of year-end.\nFor both three and five years, 100% of AUM are outperforming.\nIn light of the inflation situation, I'll kick off our asset class review by highlighting our multi-strategy real assets portfolio, the benchmark for which returned 21% in 2021.\nWe outperformed the benchmark by 340 basis points for the year, which included outperformance in all five asset class sleeves, as well as asset allocation alpha by our portfolio manager, Vince Childers.\nValuations of these listed real assets are as cheap as they've been to equities in 20 years.\nMeantime, the beta to equities is just 0.6 times.\nAs mentioned, global real estate returned 26% with significant dispersion by region.\nThe U.S. returned 41%, Europe returned 9% and Asia returned 4%.\nGlobally, these companies' cash flows should accelerate to an average of 12% over the next few years compared with their long-term growth rate of 5%.\nU.S. REIT returns have averaged 10.8% during periods of rising bond yields accompanied by rising growth, while in periods of rising yields with declining growth, returns have been flat.\nComparatively, private real estate unleveraged returns have averaged 10.7% in high-inflation environments versus 6.5% in low-inflation environments.\nThe asset class returned 15% in 2021, compared with 22% for global equities lagging for the second year.\nSector dispersion was wide with over 40 percentage points best to worst.\nOur portfolios are positioned defensively against increases in interest rates with duration of 2.4 years in our low-duration strategy and 4.0 years in our core preferred strategy.\nBy example, in the private market, dry powder and private equity funds is at $390 billion for real estate and $300 billion for infrastructure.\nIt marked our 35th anniversary and 17 years as a public company.\nAs Matt discussed, assets under management increased to a record $106 billion at year-end, driven by our 10th consecutive quarter of firmwide net inflows.\nOpen-end fund and advisory gross sales increased 11% and 13% to $19.5 billion and $4.9 billion, respectively.\nMost notably, open-end fund net inflows rose 62% year over year to a record $8.8 billion, while the advisory channel also registered a record $1.9 billion of net inflows.\nFirmwide organic growth was 12% for the year.\nNet inflows in that channel were a record $2.5 billion for a 22% organic growth rate and represented our 12th consecutive quarter of positive net flows.\nIn addition, DCIO open-end fund net inflows were a record $476 million and marked the 14th consecutive quarter of net inflows.\nDCIO assets in our open-end funds ended the year at a record $6 billion.\nOur non-U.S. open-end funds registered net inflows of $45 million in the quarter and a record $202 million for the full year.\nFor the year, the powerful combination of strong absolute and relative performance derived from our unique and diversifying asset classes resulted in 25% organic growth in wealth and industry-leading market share as well.\nOur U.S. global real estate and preferred securities funds achieved market share records of 33%, 12%, and 46%, respectively, against other comparable actively managed funds.\n2021 was a record year for the institutional advisory channel as well with $1.9 billion of net inflows.\nIn the quarter, the advisory channel had net outflows of $456 million.\nThese outflows were driven by a single and unexpected client termination of $400 million.\nHowever, not included in the headline advisory flow results was $564 million of net new mandates from institutional clients, which were invested into our open-end funds.\nThe pipeline of awarded but unfunded mandates has increased dramatically $900 million in September to $2.1 billion, another new record.\nNew awards in the quarter totaled $1.3 billion and included our first relationship in Africa, a $300 million global listed infrastructure mandate.\nNet outflows in Japan were $242 million and distributions totaled $276 million.\nSub-advisory net outflows ex Japan in the quarter were a modest $56 million.\nIt bears repeating that virtually 100% of our AUMs are outperforming their benchmarks for the one-, three-, five- and 10-year time periods, a truly remarkable accomplishment.", "summaries": "Yesterday, we reported record earnings of $1.24 per share compared with $0.76 in the prior year's quarter and $1.06 sequentially.\nAssets under management totaled a record $106.6 billion at December 31, an increase of $9.4 billion or 10% from September 30.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "During the third quarter, we delivered revenue and EBITDA growth of approximately 14% compared to the prior year.\nGenerated adjusted earnings per share of $1.11, which represents an increase of 11% over the prior year and produced $1.4 billion of adjusted free cash flow on a year-to-date basis.\nYear-to-date, we've invested over $900 million in acquisitions to further enhance our market position and increase free cash flow.\nOn August 31, we completed the acquisition of ACV Enviro.\nWe now expect to invest over $1 billion in acquisitions through the full year.\nIn addition to investing in acquisitions, we have returned $622 million to our shareholders through dividends and share repurchases.\nOur customer retention rate remains at a record-setting level of 95%.\nTotal core price remained at an all-time high of 5.2%, and average yield increased to 3.2%.\nVolume increased 4.3% compared to the prior year, which exceeded our expectations.\nAnd acquisitions contributed an incremental 350 basis points to total revenue growth.\nWe have now implemented tablets in approximately 70% of our large and small container fleet.\nWe currently have 17 projects in the pipeline with more opportunities thereafter.\nThis project consists of 30,000 solar panels and will produce enough energy to power 2,200 homes annually.\nWe remain committed to increasing the recycling and circularity of key materials as part of our ambitious 2030 sustainability goal.\nAccordingly, we are increasing 2021 full year financial guidance as follows: adjusted earnings per share is now expected to be in the range of $4.10 to $4.13; and adjusted free cash flow is now expected to be in the range of $1.475 billion to $1.5 billion.\nCore price during the third quarter was 5.2%, which included open market pricing of 6.5% and restricted pricing of 2.9%.\nThe components of core price included small container of 8.2%, large container of 5% and residential of 5%.\nAverage yield was 3.2%, which increased 60 basis points from the second quarter.\nThird quarter volume increased 4.3%.\nThe components of volume included an increase in small container of 5.4%, an increase in large container of 3.9% and an increase in landfill of 6.6%.\nCommodity prices increased to $230 per ton in the third quarter.\nThis compares to $99 per ton in the prior year.\nRecycling processing and commodity sales contributed 160 basis points to internal growth during the third quarter.\nThird quarter Environmental Solutions revenue increased $27 million from the prior year.\nOn a same-store basis, environmental solutions contributed 20 basis points to internal growth during the third quarter.\nAdjusted EBITDA margin for the third quarter was 30.4%, and increased 10 basis points over the prior year.\nThis included a 90 basis point increase from recycled commodity prices, a 50 basis point headwind from net fuel and a 30 basis point headwind from the impact of recent acquisitions, primarily driven by deal and integration costs.\nSG&A was 10.2% of revenue.\nThis represents an increase of 20 basis points over the prior year, which was exclusively due to higher incentive compensation accruals.\nYear-to-date adjusted free cash flow was $1.4 billion and increased $247 million or 22% compared to the prior year.\nIt should also be noted that we increased our expected full year capital spending in our upwardly revised guidance by over $50 million.\nFree cash flow conversion through September continued to track ahead of our original expectations and increased 330 basis points over the prior year.\nDuring the quarter, total debt was $9.3 billion, and total liquidity was $2.4 billion.\nInterest expense decreased $11 million due to refinancing activities completed last year, and our leverage ratio was 2.8 times.\nWith respect to taxes, our third quarter adjusted effective tax rate was 25.5%.\nWe had an equivalent tax impact of 27% when you include noncash charges from solar investments.\nWe expect our fourth quarter equivalent tax impact to be approximately 25%.", "summaries": "Generated adjusted earnings per share of $1.11, which represents an increase of 11% over the prior year and produced $1.4 billion of adjusted free cash flow on a year-to-date basis.\nWe now expect to invest over $1 billion in acquisitions through the full year.\nAccordingly, we are increasing 2021 full year financial guidance as follows: adjusted earnings per share is now expected to be in the range of $4.10 to $4.13; and adjusted free cash flow is now expected to be in the range of $1.475 billion to $1.5 billion.", "labels": "0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "As you could see on slide four, diluted earnings per share was a loss of $0.03 per share in the third quarter of 2020 compared to a loss of $1.81 per share in the third quarter of 2019.\nThe prior year period included $1.94 per share impairment charge related to our logistics goodwill and long-lived assets at CMT. Excluding this noncash charge, earnings per share was down quarter-over-quarter by $0.16, mainly due to lower volumes across the segments.\nLooking at adjusted EBITDA, this came in at $47.8 million in the third quarter of 2020 versus $66.7 million in the third quarter of 2019.\nAdjusted EBITDA from the coke operations decreased $11.8 million compared to the prior year period.\nDomestic sales volumes were approximately 190,000 tons lower than the prior year due to customer turndowns.\nAdjusted EBITDA from the Logistics segment decreased by $5.3 million versus third quarter of 2019.\nThe throughput volumes at CMT and the domestic terminals were lower by approximately 1.4 million tons versus the prior year.\nIn exchange for the extension of several coke contracts, we agreed to reduce our coke production in 2020 by approximately 550,000 tons.\nThe logistics operations were $5.3 million lower quarter-over-quarter due to lower volumes and lower pricing, which was again offset by lower operating costs.\nCorporate expenses in the quarter includes foundry-related research and development costs of approximately $1 million.\nWe sold 868,000 tons of coke in the quarter.\nQ3 2020 adjusted EBITDA per ton was approximately $56 per ton compared to $57 per ton in Q3 of 2019.\nLogistics adjusted EBITDA was $4.3 million in Q3 of 2020 versus $9.6 million in Q3 of 2019.\nCMT contributed $1.7 million to Q3 2020 adjusted EBITDA as compared to $7.4 million in Q3 2019 on comparable volume.\nThe domestic terminals handled approximately 2.2 million tons in Q3 of 2020 versus 3.4 million tons in Q3 of 2019.\nYou could see on the chart that our cash balance at the end of the quarter was $86 million.\nIn the quarter, cash flow from operations generated $74.5 million, and we had capex of $16.5 million.\nAdditionally, we paid a $0.06 per share dividend in the quarter, which was a use of cash of $5 million and today, announced the declaration of the third quarter dividend.\nAt the end of the quarter, on an LTM basis, our gross leverage was 3.37 times, and our net leverage was 2.98 times.\nTo that end, we repurchased $7.5 million face value of SXCP notes in the third quarter and an additional $33.2 million here in Q4.", "summaries": "As you could see on slide four, diluted earnings per share was a loss of $0.03 per share in the third quarter of 2020 compared to a loss of $1.81 per share in the third quarter of 2019.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Total revenue was approximately $1.5 billion, representing a 7.5% decline versus last year, which exceeded our expectation and reflects continued sequential improvement.\nOn both the GAAP and an adjusted basis, earnings grew by a 160% or more year-over-year.\nGAAP continuing earnings per share grew to a $1.10 per share or $1.01 per share on an adjusted basis.\nAdjusted EBITDA margins expanded more than 400 basis points to 8.3% compared to last year.\nCurrently, average occupancy across the country is approximately 15%.\nWe anticipate this could increase to 25% by Labor Day and grow to 50% plus through calendar year-end.\nSoon, if not already, institutions will start planning for the fall 2021 semester with a push for more in-person learning in the K through 12 segment and higher ed.\nOn the airline side, current travel volumes are approximately 50% of pre-COVID levels.\nOn an enterprise level, we conducted a Pulse Survey of approximately 200 clients last month that largely aligned to our own full year expectations.\nFor fiscal 2021, we are introducing full year guidance of earnings per diluted share of $2.85 to $3.10 or $3.00 to $3.25 on an adjusted basis.\nOur outlook for adjusted EBITDA margins is 6.6% to 7%, which compares to 6% last year.\nAt that time I reiterated how our diversified portfolio coupled with our nimble operating model or hallmarks of our long-term success over the past 110 years.\nOur results over the past 12 months has proven this beyond a doubt and with our solid liquidity and leverage, we are better positioned than ever to pursue growth and profitability that will unlock even greater shareholder value.\nRevenue for the quarter was $1.5 billion, a decrease of 7.5% compared to last year.\nOn a GAAP basis, our income from continuing operations was $74.6 million or $1.10 per diluted share compared to $27.9 million or $0.41 last year.\nWe saw an $11.4 million benefit this year compared to $6.6 million in the first quarter of fiscal 2020.\nAdditionally, we saw our second consecutive quarter of current year positive insurance trend recording a benefit of approximately $3 million.\nOn an adjusted basis, income from continuing operations for the quarter increased to $68.3 million or $1.01 per diluted share compared to $26.2 million or $0.39 last year.\nAdditionally, results also reflect one less working day, which amounted to labor expense savings of approximately $6 million.\nHowever, I want to note that our investment spend for the quarter was approximately $4 million, which was lower than originally anticipated.\nDuring the quarter, we generated adjusted EBITDA of approximately $124 million for a margin rate of 8.3% compared to $68.8 million or 4.3% last year.\nB&I revenue was $809.4 million, which was down just $11.5 million or 1.4% versus last year.\nOperating profit for the quarter reflected this more favorable mix of business resulting an $85.7 million or a margin of 10.6% compared to last year's $38.2 million and 4.7% respectively.\nThe segment reported revenue of $249.2 million, an increase of 6.5% versus last year with an operating profit of $26.9 million or a margin rate of 10.8%.\nOur Education segment grew revenues of $209.4 million with operating profit of $21.5 million or 10.2% margin.\nAviation reported revenue of approximately $143 million with operating profit of $3.2 million.\nFinally, Technical Solutions reported revenue of $113 million versus $142 million last year.\nHowever backlog remains healthy above $150 million and we remain focused on churning through these projects as soon as possible.\nOperating profit was $6 million or 5.3% on a margin basis.\nThis even includes the deferral of approximately $31 million in payroll taxes from the CARES Act.\nWe generated more than $45 million in cash flow from operations and free cash flow of approximately $39 million for the quarter.\nOur strong performance enabled us to end this quarter with total debt including standby letters of credit of $851 million and a bank adjusted leverage ratio of 1.8 times.\nAdditionally, we ended the quarter with cash and cash equivalents of $378 million.\nWe currently have approximately $145 million remaining in our authorized share repurchase program and we'll balance any potential activity with our M&A efforts to ensure maximum flexibility.\nDuring the quarter we paid our 219th consecutive quarterly cash dividend of $0.19 per common share for a total distribution of $12.7 million to shareholders.\nWe are introducing a fiscal 2021 GAAP guidance outlook range of $2.85 to $3.10 and on an adjusted basis $3.00 to $3.25 per share.\nEach working day should represent approximately $6 million of labor expense similar to Q1.\nWe continue to expect an effective tax rate of approximately 30% for 2021.\nAt the end of December, WOTC was formally extended by Congress through 2025 and current estimate suggest a $5 million or $0.07 impact on 2020.\nGiven our strong cash flow performance to-date, we believe we'll be able to achieve a range above our historical $175 million to $200 million and look forward to updating you as we finalize our longer-term plan.", "summaries": "GAAP continuing earnings per share grew to a $1.10 per share or $1.01 per share on an adjusted basis.\nFor fiscal 2021, we are introducing full year guidance of earnings per diluted share of $2.85 to $3.10 or $3.00 to $3.25 on an adjusted basis.\nOn a GAAP basis, our income from continuing operations was $74.6 million or $1.10 per diluted share compared to $27.9 million or $0.41 last year.\nOn an adjusted basis, income from continuing operations for the quarter increased to $68.3 million or $1.01 per diluted share compared to $26.2 million or $0.39 last year.\nWe are introducing a fiscal 2021 GAAP guidance outlook range of $2.85 to $3.10 and on an adjusted basis $3.00 to $3.25 per share.", "labels": 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{"doc": "We grew our revenue by 10%, EBITDA by 12%, earnings per share by 17% and importantly, expanded our EBITDA margins despite continuing cost pressures.\nNew products introduced in the last 12 months continue to gain momentum, and we are now forecasting sales from these products to account for more than 1/3 of our revenue growth this year.\nIn addition, FMC's Plant Health business had an excellent quarter with 40% year over year growth led by biologicals.\nWe reported $1.2 billion in third quarter revenue, which reflects a 10% increase on a reported basis and a 9% increase organically.\nGrowth was broad-based with 11 of our top 20 countries posting double digit growth in the quarter.\nWe had strong growth in all product categories, led by greater than 20% growth in herbicides.\nAdjusted EBITDA was $293 million, an increase of 12% compared to the prior year period and $18 million above the midpoint of our guidance range.\nEBITDA margins were 24.6%, an increase of 40 basis points compared to the prior year, driven by mix improvement as well as operational discipline and price increases in all regions.\nAdjusted earnings were $1.43 per diluted share in the quarter, an increase of 17% versus Q3 2020.\nRelative to our Q3 guidance, the $0.12 beat was driven almost entirely by EBITDA.\nSales in Asia increased 20% year over year and 19% organically, driven by strong diamide sales across the region as well as pricing actions.\nIn Latin America, sales increased 11% year over year and 9% organically, driven by double digit growth of insecticides in Brazil and Argentina as well as pricing actions across the region.\nPlant Health products grew approximately 50% in the region led by biologicals and seed treatment.\nEMEA grew revenue 12% and 10% organically, driven by strong demand for our herbicides and diamides across the whole region despite headwinds from registration cancellations.\nOur U.S. and Canada branded business grew greater than 20%, driven by strong demand for our diamides and four herbicide applications as well as pricing actions.\nOverall, North America sales decreased 6% year over year and 6% organically due to the continued shift of diamide global partner sales in the quarter from North America to other regions as we have described in previous calls.\nDespite continuing supply issues across the industry, FMC's third quarter revenue increased by 10% versus prior year, driven by a 9% contribution from volume.\nGross prices increased 1% in the quarter as our most recent pricing actions went into effect.\nEBITDA in the third quarter was up 12% year over year, primarily due to broad based volume gains.\nWe also had a $12 million contribution in the quarter from price increases as invoiced to customers.\nWe still expect second half cost to be consistent with previous guidance and FX was a $10 million tailwind in the quarter.\nWe are raising FMC's full year 2021 earnings guidance to the range of $6.59 to $6.99 per diluted share, a year over year increase of 10% at the midpoint, reflecting the impact of share repurchases completed year to date.\nOur 2021 revenue forecast remains in the range of $4.9 billion to $5.1 billion, an increase of 8% at the midpoint versus 2020.\nEBITDA remains in the range of $1.29 billion to $1.35 billion, representing 6% year over year growth at the midpoint.\nGuidance for Q4 implies year over year revenue growth of 19% at the midpoint on a reported basis with no FX impact anticipated.\nWe forecast EBITDA growth of 29% at the midpoint versus Q4 2020 and earnings per share is forecasted to be up 41% year over year.\nApproximately 3/4 of the EBITDA growth is driven by the return of business missed in Q4 2020 due to supply chain disruptions in North America and weather impact in Latin America.\nRevenue is expected to benefit from 6% volume growth, a 1% price contribution from higher prices and a 1% benefit from FX.\nWe have increased our forecast again for revenue from products launched in 2021.\nThese sales are now expected to contribute $140 million in year over year growth, up from our last forecast of $130 million and our initial view of $100 million.\nInterest expense for the quarter was $33.1 million, down $2.4 million from the prior year period, driven by the benefit of lower debt balances and lower LIBOR rates.\nWe continue to expect interest expense to be between $130 million and $135 million for the full year.\nOur effective tax rate on adjusted earnings for the third quarter was 13.5% as anticipated and in line with our expectation for a full year tax rate between 13% and 14%.\nGross debt at quarter end was $3.4 billion, down roughly $400 million from the prior quarter.\nGross debt to trailing 12-month EBITDA was 2.7 times at the end of the third quarter while net debt to EBITDA was 2.5 times.\nFree cash flow for the third quarter was $300 million.\nNearly 50% of this year's capital addition support capacity expansion.\nWe are maintaining our expectation for free cash flow in a range of $480 million to $570 million, with continued expectations for seasonally strong cash flow in the fourth quarter.\nWe returned $262 million to shareholders in the quarter via $62 million in dividends and $200 million of share repurchases, buying back 2.1 million shares in the quarter at an average price of $95.26 per share.\nWe have now repurchased just over three million shares this year, reducing our share count by nearly 2.5% since the beginning of the year.\nYear to date, we've returned $486 million to shareholders through dividends and repurchases.\nFor the full year, we continue to anticipate paying dividends of roughly $250 million and to repurchase $350 million to $450 million of FMC shares.\nTaking all this into consideration, our current early thinking would suggest year over year revenue growth of 5% to 7%, EBITDA growth of 7% to 9% and earnings per share growth at over 10%, in line with our long range plan.", "summaries": "We reported $1.2 billion in third quarter revenue, which reflects a 10% increase on a reported basis and a 9% increase organically.\nAdjusted earnings were $1.43 per diluted share in the quarter, an increase of 17% versus Q3 2020.\nSales in Asia increased 20% year over year and 19% organically, driven by strong diamide sales across the region as well as pricing actions.\nWe are raising FMC's full year 2021 earnings guidance to the range of $6.59 to $6.99 per diluted share, a year over year increase of 10% at the midpoint, reflecting the impact of share repurchases completed year to date.\nOur 2021 revenue forecast remains in the range of $4.9 billion to $5.1 billion, an increase of 8% at the midpoint versus 2020.\nGuidance for Q4 implies year over year revenue growth of 19% at the midpoint on a reported basis with no FX impact anticipated.\nWe have increased our forecast again for revenue from products launched in 2021.", "labels": 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{"doc": "Endpoint has captured a 3% market share in its initial market of Seattle, and currently operates in 11 additional markets across California, Texas and Arizona, and we plan to add more markets in the near future.\nEndpoint has approximately 100 product managers, engineers and designers and plans on doubling the team over the next 12 months.\nGiven this track record earlier this week, we announced an additional $150 million commitment to Endpoint.\nWe've made direct investments in 16 companies in the PropTech ecosystem.\nFinancially, our investments generated $278 million of gains this quarter led by OfferPad, which went public via SPAC in September.\nBased on the strength of the real estate markets and our strategic position as an innovator in the title and settlement space, in August, we announced an 11% increase in our dividend, and our Board also approved an additional $300 million share repurchase authorization.\nSo far in October, commercial orders are up 14% over prior year.\nAnd while our residential purchase orders at 2,000 per day are down 7% compared to an unusually strong October 2020, they are up 11% compared to October of 2019.\nAs expected, due to the recent uptick in mortgage rates, refinance orders have fallen from 1,700 per day in September to 1,500 per day in October.\nWe earned $4 per diluted share.\nIncluded in this quarter's results were $1.85 of net realized investment gains.\nExcluding these gains, we earned $2.15 per diluted share.\nRevenue in our title segment was $2.1 billion, up 21% compared with the same quarter of 2020 due to the strength of the purchase in commercial markets.\nPurchase revenue was up 9%, driven by a 12% increase in the average revenue per order.\nCommercial revenue was a record $262 million, an 84% increase over last year.\nLarge deals are up as we closed 89 transactions in the U.S. with premium greater than $250,000, up from 31 last year.\nRefinance revenue declined 36% relative to last year as mortgage rates have risen since the beginning of the year.\nIn the agency business, revenue was a record $999 million, up 38% from last year.\nOur information and other revenues were $308 million, up 9% relative to last year.\nInvestment income within the Title Insurance and Services segment was $50 million, up 11%, primarily due to higher average balances in the company's investment portfolio.\nIn our title segment, pre-tax margin was 16.4%.\nRevenue in our home warranty business totaled $108 million, up 7% compared with last year.\nPretax income in home warranty was $9 million, up from $4 million in the prior year.\nThe loss rate in home warranty has fallen from 64% to 57% as we believe many of the factors that triggered elevated claims at the onset of the pandemic are reversing.\nOur property and casualty business had a pre-tax loss of $11 million this quarter.\nAt the end of the third quarter, our policies-in-force have declined by 40% since the beginning of the year, and we expect a 70% decline by year-end.\nThe effective tax rate for the quarter was 25.3%, higher than our normalized tax rate of 24% due to higher state taxes related to investment gains realized in the quarter.\nAs Dennis mentioned in his remarks, we've made direct investments in 16 venture-backed companies in the PropTech industry.\nThe $292 million of capital we've invested into this effort had a market value of $669 million as of September 30.\nThis quarter, we recorded $278 million of gains related to our venture investments.\nDuring the quarter, we recognized a $195 million gain related to OfferPad.\nIn addition to OfferPad, we also realized a combined $79 million of gains related to our investments in Orchard, a company simplifying home buying and selling; Sundae, a real estate marketplace for sellers of dated or damaged property; and Pacaso, a platform enabling people to buy and coal in the second home.\nIn the third quarter, we increased our share repurchase authorization by $300 million and had $463 million remaining on our authorization as of September 30.\nDuring the quarter, we repurchased 208,700 shares for a total of $14 million at an average price of $67.37.\nCash flow from operations was $399 million in the third quarter, up 27% from the prior year.\nIn addition, we raised $650 million of a 10-year senior notes at a 2.4% interest rate.\nOur debt-to-capital ratio as of September 30 was 28.5% or 22.7%, excluding secured financings payable, slightly higher than our target ratio of 18% to 20%.", "summaries": "Excluding these gains, we earned $2.15 per diluted share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "With Lorie's appointment, we've expanded our board's gender diversity, four of our 11 directors are female.\nOne ton of freight can be moved by rail almost 500 miles per gallon of fuel.\nAdditionally, moving freight by train instead of trucks reduces greenhouse gas emissions by up to 75% per tonne travel and it reduces congestion on wear and tear on bridges and byways.\nIn the quarter, we delivered 4,800 railcar units, a 17% increase from the prior quarter, driven by our core North American market.\nOur lease fleet utilization increased to 98% and our leasing team generated robust cash proceeds and gains through regular lease fleet optimization and monetization transactions.\nFurther, we experienced significant absence here another quarter as approximately 12% of our workforce contracted the virus.\nOur owned fleet has grown by over 25% from the end of fiscal 2021 to around 11,000 units.\nAnd in addition to managing our lease fleet, our management services, or GMS group, continues to provide creative railcar solutions for over 25% of the North American rail freight fleet.\nGreenbrier's secured new railcar orders of 8,500 units valued at $930 million.\nWith deliveries of 4,800 units in the quarter, the book-to-bill increased to 1.8 times.\nOrders through the first half of the year are already over 85% of fiscal 2021 activity.\nNew railcar backlog of 32,100 units has a market value of $3.6 billion and provides multiyear visibility.\nAs a reminder, our new railcar backlog does not reflect 3,200 units valued at $180 million that are part of Greenbrier's refurbishment program.\nFleet utilization ended the quarter at 98%.\nAs part of our enhanced leasing strategy, GBX Leasing, closed our inaugural asset-backed securitization by using -- by issuing $323 million in investment-grade rated notes with a blended coupon rate of 2.9% and an anticipated repayment date of January 2029.\nOur capital markets team executed well this quarter and syndicated 1,400 units, the highest level of activity in nearly two years.\nSecond-quarter highlights include revenue of $683 million, deliveries of 4,800 units, which includes 400 units from our unconsolidated joint venture in Brazil.\nAggregate gross margins of 8% reflects continued effects from ramping of new railcar production, the impact of the omicron variant, mitigation of supply chain, labor shortages, and an additional warranty accrual for certain older railcars.\nSelling and administrative expense of about $55 million was higher sequentially, reflecting increased employee-related costs, consulting, travel, and legal expense from higher levels of business activity.\nNet gain on disposition of equipment was $25 million.\nNon-controlling interest provides a benefit of $1.6 million, primarily resulting from the impact of line changeovers and production ramping at our Mexico joint venture.\nNet earnings attributable to Greenbrier of approximately $13 million or $0.38 per diluted share, and EBITDA of about $52 million or 7.6% of revenue.\nIn the quarter, we recognized $2.1 million of gross costs, specifically related to COVID-19 employee and facility safety.\nThis expense increased almost 75% sequentially and was our highest level in the last 12 months.\nGreenbrier's liquidity increased to $804 million at the end of Q2, consisting of cash of $587 million and available borrowings of $217 million.\nWe expect to receive a large portion of our $106 million tax receivable in fiscal Q4, reflecting delays in processing with the IRS.\nAt the end of the second quarter, effectively all of our outstanding leasing debt was at fixed interest rates and approximately 90% of our corporate non-leasing long-term debt was fixed.\nTogether with executing on over $2 billion of new and refinanced borrowing facilities over the past year, including the ABS lease financing completed in Q2, this positions Greenbrier quite well as we move forward.\nOn March 31, Greenbrier's board of directors declared a dividend of $0.27 per share, our 32nd consecutive dividend.\nBased on yesterday's closing price, our annual dividend represents a dividend yield of approximately 2.3%.\nSince reinstating the dividend in 2014, Greenbrier's returned nearly $380 million of capital to shareholders through dividends and share repurchases.\nBased on current business trends and production schedules, we're affirming Greenbrier's fiscal year 2022 outlook to reflect the following: deliveries of 17,500 to 19,500 units, which includes approximately 1,500 units from Greenbrier-Maxion in Brazil.\nAs a reminder, in fiscal 2022, approximately 1,400 units are expected to be built and capitalized into our lease fleet.\nSelling and administrative expense guidance is unchanged and expected to be approximately $200 million to $210 million.\nGross capital expenditures of approximately $275 million in leasing and management services, $55 million in manufacturing, and $10 million in maintenance services.\nNet of proceeds on equipment sales of $150 million, leasing capex is expected to be $125 million.", "summaries": "Second-quarter highlights include revenue of $683 million, deliveries of 4,800 units, which includes 400 units from our unconsolidated joint venture in Brazil.\nNet earnings attributable to Greenbrier of approximately $13 million or $0.38 per diluted share, and EBITDA of about $52 million or 7.6% of revenue.\nBased on current business trends and production schedules, we're affirming Greenbrier's fiscal year 2022 outlook to reflect the following: deliveries of 17,500 to 19,500 units, which includes approximately 1,500 units from Greenbrier-Maxion in Brazil.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "In short, the actions we took increased our cash to over $320 million at the end of the first quarter, which should allow us to weather the downturn created by COVID-19.\nCombined, we expect to save about $1 million in cash from these actions.\nLastly, the Board recently made the decision to temporarily suspend the quarterly common dividend, preserving roughly $18 million per quarter.\nNo decisions regarding dividend payments beyond second quarter 2020 have been made.\nCurrently, all 49 of our properties are open and operational.\nAs of May 7, 53% of our tenants by ABR are open.\nAs of May 8, we collected 58% of our April rent and reimbursements, largely from open tenants.\nOf our top 25 tenants based on ABR, over 86% have paid or have agreed in principle to some form of short-term deferment.\nIn Tier 1 are tenants who have both good long-term business models and have largely been able to remain open through the pandemic.\n87.9% of this tier remains open and 83.9% paid April rent as of May 8.\nIn Tier 2 are tenants with solid long-term business models and good balance sheets pre-COVID, but that sell more discretionary items.\nThe discount apparel retailers like T.J. Maxx and Ross fall into this category along with other investment grade quality tenants not included in Tier 1.\nOur Tier 2 tenants paid 78.7% of April rent, but only 27.2% by ABR were opened in April.\nTier 3 tenants offer more commodity like products like full-line apparel and accessories.\nAnd Tier 4 tenants are more experiential in nature, including full service restaurants and in many cases were key drivers of traffic pre-pandemic.\nCollectively, Tier 3 and Tier 4 tenants paid 36.1% of April rent, 35.6% by ABR remained open.\nOf the 275 tenants that we targeted, nearly two-thirds have told us they applied for the PPP loan.\nTo this point, while only 127 rent relief requests have been approved, 121 have been in the form of deferrals totaling $3.8 million and only six abatements have been granted totaling less than $71,000.\nWe are seeing incredible demand at our non-grocery anchored centers from grocers and are currently in negotiations with seven top tier grocers at non-grocery anchored centers in our portfolio that would improve the durability of cash flows at these centers if we -- if closed and increase the number of our centers with a grocer or grocery components by 14%.\nOur employees have now been working safely and efficiently from home for almost 10 weeks, but a year ago, we established an option to work-from-home day program, which made the transition to full work-from-home environment quite smooth.\nToday, we have donated over 20,000 meals to support school lunch programs, at-risk populations, essential workers and nursing home employees and local communities.\nOut of abundance of caution and after analyzing our potential cash need, we drew down $225 million from our line during the quarter, bringing our total cost position to over $320 million at the end of March.\nBased on all the steps we have taken over the last two years to solidify our balance sheet, we are fortunate to not have any debt maturing in 2020, only $37 million maturing in '21, and just $53 million in '22.\nIf our cash collections remained at the April level of 58%, we would be able to fund our ongoing operations without utilizing much of our cash on hand.\nOur breakeven cash collection rate is roughly 61%.\nIt is also important to note that 46 of our 49 properties are unencumbered, providing us with the optimal operational flexibility to make decisions quickly without the burden of servicers or lenders.\nOperating FFO for the first quarter was $0.26 per share, which was in line with our internal projections.\nDuring the quarter, we recognized about $800,000 in costs related to the suspension of our acquisition and disposition program, which have been excluded from operating FFO as they are non-recurring in nature.\nSame-property NOI growth for the first quarter 2020 was 2.3%, which included a 120 basis point drag from rent not probable of collection reflecting the initial impact from COVID-19 attributable to a conservative approach we took with an entertainment tenant that had a substantial open AR balance that we deemed uncollectible.\nWe ended the quarter at an occupancy rate of 93.3%, down 100 basis points sequentially given typical seasonality and recapture of an expected anchor space but up 150 basis points year-over-year.\nIn total, we signed 46 leases comprised of 558,000 square feet of which 60,000 square feet were new leases and 490,000 were renewal leases.\nWe experienced blended releasing spreads of 6.2% and 36 comparable leases, including a 6.2% renewal spread and a 5.2% new lease spread.\nWe entered the quarter with signed not open ABR of about $2.1 million.\nWhile we have seen a slight delay with rent commencement dates, we expect the rents to commence over the next 12 months.\nRegarding near-term rent expirations, we only have 3.4% of our ABR expiring over the balance of 2020, mitigating some near-term tenant retention risk.\nFrom a capital perspective, we have only $14 million of remaining committed capital spend in 2020, of which $11 million is related to our signed not open backlog and residual capital for recently opened tenants, with the balance largely related to essential maintenance capital.\nExtrapolating the $18 million per quarter common dividend we were paying would equate to $54 million in potential capital preservation through the next three quarters.", "summaries": "Lastly, the Board recently made the decision to temporarily suspend the quarterly common dividend, preserving roughly $18 million per quarter.\nNo decisions regarding dividend payments beyond second quarter 2020 have been made.\nOperating FFO for the first quarter was $0.26 per share, which was in line with our internal projections.", "labels": "0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "The additional simplification/modernization savings in fiscal year '21 bought the total savings achieved from the program to $186 million, in line with the target range we announced in our December 2017 Investor Day, despite lower volumes than we envisioned at that time.\nAnd our new indexable milling platform, Mill 4-15, designed to improve customer productivity to gain share, especially in general engineering.\nWe saw underlying momentum picking up across all our end markets, and in the fourth quarter we posted 29% organic growth versus a decline of 33% in the prior year quarter.\nOur adjusted EBITDA margin increased to 19.2%, driven mainly by increasing volume and associated absorption, incremental simplification/modernization benefits, partially offset by the reversal of temporary cost control actions taken in the prior year.\nFree operating cash flow was $66 million for the quarter and $113 million for the full year.\nAdjusted earnings per share was $0.53 for the quarter.\nThe margins at the trough were 600 basis points higher through this downturn, illustrating our substantially improved cost structure.\nYou can see from the slide that on a sequential basis we increased operating income by 57% on a 6% increase in sales.\nThis strong operating leverage is also evident on a year-over-year basis and even more impressive when you consider the roughly $45 million of temporary cost actions we took in the prior year quarter.\nFor the quarter, sales of $516 million improved 36% year-over-year and 29% on an organic basis from the low of $379 million in the fourth quarter last year.\nForeign currency had a positive effect of 6% on sales and business days contributed another 1%.\nAdjusted gross profit margin of 34.5% was up 680 basis points year-over-year.\nAdjusted operating expenses increased year-over-year to $108 million, reflecting the reversal of temporary cost actions taken last year.\nNevertheless, we were able to hold our operating expenses at 20.9% of sales, close to our target of 20% this quarter.\nAdjusted EBITDA margin increased to 19.2%, up 150 basis points from the prior year quarter and adjusted operating margin of 12.8% was up 400 basis points year-over-year.\nThe 19.2% adjusted EBITDA margin is another validation point related to the successful execution of commercial and operational excellence.\nThe last time adjusted EBITDA margins were over 19% was in the third and fourth quarters of fiscal year 2019, and that was based on quarterly sales of approximately $600 million or 15% higher than this quarter.\nThis is yet another data point of the structural cost improvements we have made in confirming our ability to achieve the 24% to 26% adjusted EBITDA margin target as sales reached the $2.5 billion to $2.6 billion level.\nThe improved year-over-year performance was related to higher volumes and associated absorption, benefits from simplification/modernization and a slight positive from price and raw materials, partially offset by roughly $45 million of temporary cost actions taken last year and a modest mix headwind.\nThe adjusted effective tax rate in the quarter was 24.3%, a more normalized level than the previous year due to higher pre-tax income as well as a reduced effect of GILTI on the effective tax rate this quarter.\nThe adjusted effective tax rate for the full year was approximately 23.6% as expected.\nWe reported GAAP earnings per share of $0.41 versus a loss per share of $0.\n11 in the prior year period.\nOn an adjusted basis, earnings per share was $0.53 per share versus $0.15 in the prior year quarter.\nThe effect of operations this quarter amounted to positive $0.02 compared to negative $0.68 in the prior year quarter and negative $0.33 in the third quarter of this fiscal year.\nThe operations bucket turned positive for the first time since Q3 of fiscal year '19, reflecting improving volumes offset by approximately $0.26 related to the reversal of temporary cost actions in effect last year.\nSimplification/modernization contributed an incremental $0.13 in the quarter, bringing the total FY '21 simplification/modernization savings to $0.68 or $85 million and $186 million for the total program.\nSlides 8 and 9 detail the favorable performance and continuing progress we have achieved on our initiatives in our segments this quarter.\nMetal cutting sales increased 30% organically versus a 35% decline in the prior year period.\nAll regions posted year-over-year sales increases with the largest increase in EMEA at 37%, followed by the Americas at 30% and Asia Pacific at 23%.\nTransportation was the strongest end market with 50% growth, followed by general engineering, up 35%.\nEnergy was up 4% year-over-year despite slowing demand in China due to the reduced wind subsidies.\nAlthough aerospace declined 7% year-over-year, it showed the strongest sequential improvement, up 10%.\nTransportation declined 11% sequentially due to the temporary supply chain challenges, which force transportation customers to slow their metal cutting factories like engine plants to better align with their overall production.\nAdjusted operating margin improved 540 basis points to 11.7% compared to 6.3% in the prior year quarter.\nOrganic sales increased 28% year-over-year versus a 29% decline in the prior year period.\nFX and business days contributed positively to sales in the amount of 5% and 1%, respectively.\nRegionally, the largest increase year-over-year was in the Americas at 35%, then EMEA at 29% and Asia at 14%.\nBy end market, the results were primarily driven by general engineering and energy, up 42% and 41%, respectively.\nEarthworks was up 12%.\nAdjusted operating margin increased to 14.5% from 12.7% in the prior year quarter.\nAt fiscal year-end, we had combined cash and revolver availability of approximately $850 million.\nPrimary working capital of $602 million was relatively flat year-over-year and down approximately $13 million sequentially.\nOn a percentage of sales basis, it decreased to 33.4% as our focus on working capital during the year continued to strengthen our free operating cash flow even as sales have increased.\nOur primary working capital target remains 30%, which we expect to approach by the end of this fiscal year.\nOur fourth quarter free operating cash flow was $66 million, a significant year-over-year increase, reflecting higher income due to volume and strong operating leverage.\nThis is similar on a full year basis with free operating cash flow of $113 million compared to negative $18 million last year.\nNet capital expenditures for the quarter were $30 million, a decrease of approximately $8 million from the prior year, bringing the total net capital spend for the year to $123 million, in line with our expectations.\nWe also paid the dividend of $17 million in the quarter.\nStarting with the first quarter, we expect sales to be in the range of $470 million to $490 million.\nAt the midpoint, this implies year-over-year growth of approximately 20% and approximately 7% sequential decline, which is stronger than our normal Q4 to Q1 pattern.\nAssuming our current outlook, we expect adjusted operating income to be a minimum of $45 million and to improve by at least 300% year-over-year despite the $15 million in Q1 year-over-year headwinds related to temporary cost actions taken last year.\nAlso, we expect the adjusted effective tax rate to be in the range of 25% to 28%, and depreciation and amortization will increase $3 million to $4 million year-over-year.\nKeep in mind, this annual operating leverage is excluding approximately $25 million of year-over-year headwinds from temporary cost actions taken last year, of which approximately $15 million will return in Q1 and the remaining $10 million in Q2.\nWe expect an adjusted effective tax rate of 25% to 28%.\nDepreciation and amortization is expected to increase $15 million to $20 million year-over-year to a range of $140 million to $145 million.\nCapital expenditures will be consistent with this year and in the range of $110 million to $130 million.\nAs I mentioned earlier, we expect primary working capital to trend toward our 30% goal by the end of the fiscal year.\nTogether, this will translate to free operating cash flow generation and approximately 100% of adjusted net income, in line with our long-term target, which further demonstrates our progress in transforming the company by continued execution of our operational and commercial excellence initiatives.\nLooking ahead in fiscal year '22, we are excited to build off Q4's momentum by leveraging our modernized footprint and strong operating leverage to drive growth and higher profitability as well as cash flow at approximately 100% of net income.\nIn summary, I believe fiscal year '22 will be a year where we further demonstrate the ability to achieve our adjusted EBITDA target when sales reached $2.5 billion to $2.6 billion by continuing to execute on our strategic operational and commercial excellence initiatives.", "summaries": "Adjusted earnings per share was $0.53 for the quarter.\nFor the quarter, sales of $516 million improved 36% year-over-year and 29% on an organic basis from the low of $379 million in the fourth quarter last year.\nWe reported GAAP earnings per share of $0.41 versus a loss per share of $0.\nOn an adjusted basis, earnings per share was $0.53 per share versus $0.15 in the prior year quarter.\nMetal cutting sales increased 30% organically versus a 35% decline in the prior year period.\nAll regions posted year-over-year sales increases with the largest increase in EMEA at 37%, followed by the Americas at 30% and Asia Pacific at 23%.\nOur primary working capital target remains 30%, which we expect to approach by the end of this fiscal year.\nNet capital expenditures for the quarter were $30 million, a decrease of approximately $8 million from the prior year, bringing the total net capital spend for the year to $123 million, in line with our expectations.\nWe also paid the dividend of $17 million in the quarter.\nAlso, we expect the adjusted effective tax rate to be in the range of 25% to 28%, and depreciation and amortization will increase $3 million to $4 million year-over-year.\nWe expect an adjusted effective tax rate of 25% to 28%.\nCapital expenditures will be consistent with this year and in the range of $110 million to $130 million.\nAs I mentioned earlier, we expect primary working capital to trend toward our 30% goal by the end of the fiscal year.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n1\n0\n1\n0\n1\n1\n0\n0\n0"}
{"doc": "As CEO of Dynex, I'm very proud to report that in 2020 we delivered a 15.2% total economic return and a 17% total shareholder return.\nI've been at Dynex for 13 years and no other year has demanded as much active decision making as 2020.\nAnd when you look at our long-term chart on Page 17, you can see that we have delivered solid returns through multiple market cycles during my tenure at Dynex Capital.\nSo in the past 12 months we have taken a strategic view on both sides of the balance sheet with the goal of being able to grow and scale the Company efficiently, and in a stakeholder-friendly manner.\nWe retired two of our higher cost preferred stock issues and we replaced them with our new Dynex Capital Preferred C. And during the last two weeks, we issued approximately $56 million in common equity in line with our long-term strategy to grow our capital base.\nWe've been in business for 30 years and we are fully committed to delivering solid cash flow, and attractive total returns to our shareholders well into the future.\nFor the quarter on a per common share basis we recorded comprehensive income of $1.23, total economic return of $1.22 or 6.7% based on the beginning book value per share of $18.25 and core net operating income of $0.45.\nFor the year on a per common share basis, we reported comprehensive income of $2.88, total economic return of $2.73 and core net operating income of $1.94.\nRealized and unrealized investment in TBA gains, net of hedges, were approximately $1.83 per common share, driving a large part of the comprehensive income and total economic return for the year.\nCore net operating income sequentially declined from $0.61 last quarter to $0.45 this quarter, principally as a result of the smaller average balance of interest-earning assets and modestly declining asset yields.\nIn addition, general and administrative expenses increased $2.1 million during the fourth quarter from year end incentive compensation accruals reflecting a catch-up adjustment for accrued bonus expense for management's achievements of its corporate goals and objectives this year.\nNet interest spread and adjusted net interest spread, both slightly declined by 2 basis points respectively quarter-over-quarter.\nAgency RMBS prepayment speeds were 17.1 CPR for the quarter.\nWhile overall portfolio CPRs including the CMBS portfolio were approximately 15.1 CPR.\nAs it relates to book value, the driver of the $0.83 per share increase during the fourth quarter was net gains from continued spread tightening on investment assets, particularly in both lower coupon TBAs and pools.\nWe estimate that book value per common share at the end of January is up approximately 1%, inclusive of the impact of the capital raise announced last week.\nWe ended the year with investment assets, including TBA securities of $4.2 billion and leverage at 6.3 times shareholders equity similar to the end of the third quarter.\nOverall investment assets, including TBA securities were down on an average basis by approximately 7% as compared to last quarter.\nThis quarter we added 15-year agency RMBS investments through TBA positions and overall the portfolio composition is approximately 84% RMBS investments, including TBA securities and approximately 16% invested in CMBS and CMBS IO.\nFor 2020, dividends in both the preferred stock and common stock were a 100% capital gain income.\nOur annual total economic return of 15% is only the third best in Dynex's history since 2008, but it is remarkable in that it was earned in an outlier year like 2020.\nThe Fed also remains committed to a broad recovery in employment, and an overshoot of inflation over 2%.\nWe expect returns to move into the 10% to 12% range and could offer mid-teens returns if spreads widen.\nBook value since year-end is up about 1% net of the equity rate.\nWe have a strong liquidity position of $375 million and tremendous upside earnings power on the balance sheet.\nLeverage stands slightly over 6 times today and we still believe a liquid strategy is appropriate for the environment.\nWe currently have an RMBS portfolio allocation of 20% to 15 years, which outperform in a steepener relative to 30s [Phonetic].\nYou can see on Page 10 of the slide deck that the portfolio performs relatively well across several types of rate shocks, both parallel and non-parallel.\nA one times increase in leverage, invested at 8% total economic return, adds $0.19 per share per year in economic return.\nAt 10%, that's $0.24, at 12% it's $0.29.\nWe think we have the room to take our total leverage up at least 2 times from today's levels at the right time and possibly higher if the return environment is better.\nWe've used the Russell 2000 value index and the shift is mainly because of the unusual attraction and performance returns of this tech sector.", "summaries": "For the quarter on a per common share basis we recorded comprehensive income of $1.23, total economic return of $1.22 or 6.7% based on the beginning book value per share of $18.25 and core net operating income of $0.45.\nCore net operating income sequentially declined from $0.61 last quarter to $0.45 this quarter, principally as a result of the smaller average balance of interest-earning assets and modestly declining asset yields.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "As compared to the same quarter last year, our sales increased 41%.\nExcluding Lanier Apparel, where operations were effectively exited during the third quarter of fiscal 2021, net sales increased 15% over the same period of fiscal 2019.\nThe robust sales growth that we experienced during the third quarter was driven by 40% growth in our full price direct-to-consumer business, with growth in each of our brands compared to fiscal 2019, including a 13% increase in full-price retail and a 100% gain in full-price e-commerce.\nRestaurant sales also contributed to our top-line improvement, growing 14% in the third quarter of fiscal 2021 as compared to the third quarter of fiscal 2019 fueled by strong increases at existing locations, as well as the addition of five new Marlin Bar locations.\nAt the same time, adjusted gross margin increased an impressive 710 basis points to 62% during the third quarter of fiscal 2021 as compared to fiscal 2019.\nBut I will mention that they drove record third quarter earnings of $1.19 per share on an adjusted basis compared to an adjusted loss of $0.44 per share last year and adjusted earnings per share, up $0.10 during the third quarter of fiscal 2019.\nThese brands are 100% focused on the consumer and making that consumer happy with powerful clear brand messages, exceptional differentiated product, superior customer experiences, including our e-commerce websites, our stores and restaurants and strategic wholesale accounts.\nThe predominant mix of direct-to-consumer, which is expected to be over 80% of our business enhances our ability to deliver happiness to our customers.\nAs Tom just mentioned, we had outstanding performances in each of our brands during the third quarter, which resulted in significant sales, gross margin, operating margin and earnings growth to levels exceeding pre-pandemic results.\nExcluding Lanier Apparel where operations were effectively exited during the third quarter of fiscal 2021, consolidated sales increased 15% to $243 million.\nOn an adjusted basis, gross margin expanded 710 basis points over 2019 to 62% in the third quarter.\nApproximately 270 basis points of higher freight cost, including the use of air freight partially offset some of the margin improvement.\nOn an adjusted basis, we gained 260 basis points of SG&A leverage in the third quarter, improving from 56% of sales in 2019 to 53% of sales in 2021.\nAs a result, our consolidated operating margin expanded 970 basis points from 1% in 2019, to 11%.\nWe ended the third quarter with $188 million of cash and short-term investments and no borrowings outstanding under our revolving credit facility.\nFIFO inventory decreased 17% compared to fiscal 2020 excluding Lanier Apparel due to higher-than-expected sales during the first nine months of 2021, ongoing enhancements to enterprise order management systems and prudent seasonal purchases.\nWe expect sales from Lanier Apparel to be approximately $20 million lower than 2019's fourth quarter as we exited the business in Q3 of this year.\nIn addition, we expect our branded wholesale business to be approximately $15 million lower than 2019.\nFor the fourth quarter, we expect sales to be between $285 million and $295 million compared to sales of $298 million in the fourth quarter of fiscal 2019.\nAgain Lanier Apparel generated $20 million in net sales in the fourth quarter of 2019.\nIn the fourth quarter of fiscal 2021, we expect earnings of $1.20 to $1.35 per share on an adjusted basis, compared to earnings of $1.09 per share on an adjusted basis in the fourth quarter of 2019.\nFor the full year, we now expect sales in a range of $1.127 billion to $1.137 billion as compared to sales of $1.123 billion in 2019.\nFor the full year, sales from Lanier Apparel are expected to be $25 million in 2021, compared to $95 million in 2019.\nAdjusted earnings per share is expected to be between $7.52 and $7.67.\nThis compared to earnings of $4.32 per share on an adjusted basis in 2019.\nOur effective tax rate for the full fiscal year 2021 is expected to be approximately 22%.\nCapital expenditures are expected to be between $35 million and $40 million in fiscal 2021, primarily reflecting investments in information technology initiatives, new Marlin Bars and retail stores.\nWe continue to generate strong cash flow from operations, including a $157 million year-to-date.\nWe remain in a strong position to return cash to shareholders and are proud of our long history of returning value through dividends, which we have paid every quarter since going public in 1960.\nThis quarter, our Board of Directors has declared a dividend of $0.42 per share.\nAdditionally, in assessing our capital allocation plan, our Board of Directors approved a new share repurchase authorization of $150 million.", "summaries": "But I will mention that they drove record third quarter earnings of $1.19 per share on an adjusted basis compared to an adjusted loss of $0.44 per share last year and adjusted earnings per share, up $0.10 during the third quarter of fiscal 2019.\nAs Tom just mentioned, we had outstanding performances in each of our brands during the third quarter, which resulted in significant sales, gross margin, operating margin and earnings growth to levels exceeding pre-pandemic results.\nFor the fourth quarter, we expect sales to be between $285 million and $295 million compared to sales of $298 million in the fourth quarter of fiscal 2019.\nFor the full year, we now expect sales in a range of $1.127 billion to $1.137 billion as compared to sales of $1.123 billion in 2019.\nAdjusted earnings per share is expected to be between $7.52 and $7.67.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For nearly 50 years, Everest has been a source of strength for our customers.\nWe have also further fortified our already strong capital base with a $1 billion senior notes offering completed on October 7.\nThis is very efficient long-term 30-year capital at a low 3.5% coupon.\nEverest's strength is evidenced by our third quarter results for the group, where despite the high frequency of natural catastrophe activity, we achieved 16% gross written premium growth and improved attritional combined ratio of 85.8%, excluding cat and pandemic impacts, net investment income of $234 million, operating income profit of $97 million, net income of $243 million, book value per share growth of 7% from year-end 2019 or 9% adjusted for dividends, and a record shareholders' equity of $9.6 billion.\nThe underwriting loss for the quarter was driven by the previously announced $300 million in catastrophe losses.\nThis is in the context of an estimated $35 billion industry loss in the third quarter.\nWe also added $125 million to our COVID-19 loss provision, reflecting the ongoing nature of this event and our prudent reserving philosophy.\nExcluding catastrophes and the pandemic impact, our attritional combined ratios for the group in each of our segments, Reinsurance at 83% and Insurance at 94%, improved year-over-year and are reflective of the earnings generating power of the Everest franchise.\nOn a nine-month year-to-date basis, Everest has grown 15% and delivered an 88% attritional combined ratio, excluding the pandemic impact.\nEverest Reinsurance had 20% quarterly growth year-over-year.\nEverest Insurance had solid execution in the quarter with continued underlying margin improvement over 2019 and 6% growth year-over-year, despite exposure reductions in certain lines given the current economic environment.\nThe attritional combined ratio, excluding the pandemic impact, improved to 94% for the quarter compared to 96% in the third quarter of 2019.\nFor the quarter, the main insurance growth drivers were continued rate momentum of plus 19% excluding workers' compensation, and plus 13% including workers' compensation.\nRegarding the ongoing COVID-19 pandemic, the $125 million loss provision in the third quarter was comprised of $110 million for Reinsurance and $15 million for Insurance.\nOur overall COVID-19 loss provision year-to-date is $435 million, of which 85% is IBNR.\nFor the third quarter of 2020, Everest reported strong net income of $243 million.\nThis is more than double the $104 million of net income for the third quarter of 2019.\nOn a year-to-date basis, net income was $451 million compared to $792 million for the first nine months of 2019.\nYear-to-date, net income included $67 million of net after-tax realized capital gains compared to $90 million in the first nine months of 2019.\nWe also had Q3 catastrophe activity of $300 million, pre-tax and net of reinsurance and reinstatement premiums.\nAnd we added $125 million COVID-19 pandemic loss provision.\nYear-to-date, our COVID-19 provision stands at $435 million.\nThe group experienced an underwriting loss in Q3 of $115 million due to the elevated level of natural catastrophes in the quarter as compared to an underwriting loss of $28 million in 2019.\nOn a year-to-date basis, gross written premium was $7.7 billion, up $1 billion or 15% compared to the first three quarters of 2019.\nThis reflects balanced and diversified growth in both segments, with Reinsurance up 15% and Insurance up 15% compared to last year.\nDuring the third quarter of 2020, the company reported $300 million of catastrophe losses.\nThe after-tax basis amount was approximately $240 million.\nOn a year-to-date basis, the results reflected net pre-tax and net of reinstatement catastrophe losses of $345 million compared to $335 million during the first nine months of 2019.\nExcluding catastrophe losses and the impact from the COVID-19 pandemic, the comparable combined ratios were 85.8% for Q3 2020 and 87.1% for Q3 2019, an 88% through the first nine months of 2020 and 87.7% for the first nine months of 2019, mostly attributable to the Reinsurance business mix changes.\nExcluding the pandemic loss estimate, the group attritional loss ratio for the third quarter of 2020 was 59.3%, down from 59.7% compared to Q3 2019.\nExcluding the pandemic loss estimate, the group attritional loss ratio for the first nine months of 2020 was 60.2%, up from 59.5% for the first nine months of 2019, primarily due to the continued change in Reinsurance business mix year-over-year.\nFor the Reinsurance segment, the Q3 2020 attritional loss ratio, excluding the pandemic loss estimate, was 57.5%, essentially flat from 57.6% in Q3 2019.\nYear-to-date, it stood at 58.5%, excluding the pandemic loss, up from 57.5% for the first nine months of 2019.\nThe Reinsurance division has $323 million of year-to-date operating profitability, given its $294 million of year-to-date net investment income.\nFor the Insurance segment, the Q3 2020 attritional loss ratio, excluding the impacts from the pandemic, was 64.8%, down from 65.9% in Q3 2019.\nYear-to-date, it stood at 65.2%, down compared to 65.6% for the first nine months of 2019.\nThe Insurance division has $62 million of year-to-date operating profitability, given its $126 million of year-to-date net investment income.\nThe Q3 group commission ratio of 20.2% was down compared to the prior year Q3 level of 23.3%.\nThe group commission ratio of 21.7% year-to-date was down compared to the prior year figure of 23%, largely due to the same reasoning.\nThe group expense ratio remains low at 6.1% for the first nine months of 2020, in line with our expectations.\nQ3 investment income increased strongly to $234 million versus $181 million for Q3 2019.\nFor investments, pre-tax investment income was $420 million year-to-date as compared to $501 million for the first nine months of 2019.\nThe fixed income portfolio generated $408 million of investment income year-to-date compared to $383 million for the same period last year.\nAs expected, net investment income increased substantially as we recorded $89 million quarter-to-date of largely fair market value adjustments of our limited partnership investments in this line.\nThe pre-tax yield to maturity on the investment portfolio was 3.1%, diminishing from 3.4% one year ago.\nWe continue to hold a well-diversified, high credit quality bond portfolio with conservative duration at approximately 3.5 years.\nThe current overall fixed income reinvestment yields are averaging approximately 2%.\nOther income and expense included $38 million of foreign exchange gains during the first nine months of 2020 compared to a loss of $44 million for 2019.\nRegarding income taxes, our effective tax rate on operating income was minus 0.1% through Q3.\nThere is a year-to-date tax benefit of $31 million related to the CARES Act that we reported in the first quarter.\nExcluding this benefit, the effective tax rate on year-to-date operating income would be 8.9%.\nAlong with growth and profitability, positive cash flow was a highlight this quarter as we generated record operating cash flows of approximately $1.1 billion for the third quarter of 2020 compared to $633 million in Q3 2019, reflecting the strength of the growth in premiums in 2020 compared to 2019.\nEverest solidified its very strong capital position in the aforementioned opportunistic $1 billion senior notes offering in early October with a low coupon of 3.5% and 30-year tenure under very favorable market conditions.\nThe debt leverage ratio pro forma for Q3 stands at 15.1%.\nShareholders' equity for the group was $9.6 billion at the end of the third quarter, up from $9.1 billion at year-end 2019.\nThe increase in shareholders' equity in the first nine months of 2020 is largely due to the $451 million of net income; the mark-to-market impact on the fixed income assets, which increased by $349 million from December 31, 2019 plus $387 million of paid dividends and share buybacks.\nNet book value per share stood at $239.98, up 7% from year-end 2019, or plus 9.3% when adjusted for dividends.", "summaries": "Everest's strength is evidenced by our third quarter results for the group, where despite the high frequency of natural catastrophe activity, we achieved 16% gross written premium growth and improved attritional combined ratio of 85.8%, excluding cat and pandemic impacts, net investment income of $234 million, operating income profit of $97 million, net income of $243 million, book value per share growth of 7% from year-end 2019 or 9% adjusted for dividends, and a record shareholders' equity of $9.6 billion.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Net sales for the third quarter of 2020 were $647.3 million, which is a 15.5% increase on a reported basis versus $560.6 million in Q3 of 2019.\nOn a currency neutral basis, sales increased 14.9%.\nGenerally, we are seeing most academic and Diagnostics Labs now running between 70% and 90% capacity and slowly continuing to improve.\nBiopharma labs are broadly running at a slightly higher capacity rate of 80% to 90% and we continue to monitor the situation closely.\nWe estimate that COVID-19-related sales were about $98 million in the quarter.\nSales of the Life Science Group in the third quarter of 2020 were $324 million compared to $215.7 million in Q3 of 2019, which is a 50.2% increase on a reported basis and a 48.8% increase on a currency neutral basis.\nExcluding Process Media sales, the Life Science business grew 53% on a currency neutral basis versus Q3 of 2019.\nIn addition, last month we launched two new PCR systems, the CFX Opus 96 and the CFX Opus 384, which strengthens our global response and contribution to the fight against the pandemic.\nSales of Clinical Diagnostics products in the third quarter were $322.2 million compared to $341.8 million in Q3 of 2019, which is a 5.7% decline on a reported basis and a 5.9% decline on a currency neutral basis.\nThe reported gross margin for the third quarter of 2020 was 56.7% on a GAAP basis and compares to 54.8% in Q3 of 2019.\nAmortization related to prior acquisitions recorded in cost of goods sold was $4.8 million compared to $3.9 million in Q3 of 2019.\nSG&A expenses for Q3 of 2020 were $198.2 million or 30.6% of sales compared to $201.6 million or 36% in Q3 of 2019.\nTotal amortization expense related to acquisitions recorded in SG&A for the quarter was $2.3 million versus $1.9 million in Q3 of 2019.\nResearch and development expense in Q3 was $59.5 million or 9.2% of sales compared to $47.9 million or 8.6% of sales in Q3 of 2019.\nQ3 operating income was $109.6 million or 16.9% of sales compared to $57.5 million or 10.2% of sales in Q3 of 2019.\nLooking below the operating line, the change in fair market value of equity securities holdings added $1,580 million of income to the reported results, and is substantially related to holdings of the shares of Sartorius AG.\nAlso during the quarter, interest and other income resulted in a net expense of $5.5 million compared to $2.1 million of expense last year.\nThe effective tax rate for the quarter was 21.9% compared to 22.8% in Q3 of 2019.\nReported net income for the third quarter was $1,315 million and diluted earnings per share were $43.64.\nLooking at the non-GAAP results for the third quarter, in cost of goods sold, we have excluded $4.8 million of amortization of purchased intangibles and a small restructuring benefits.\nThese exclusions moved the gross margin for the third quarter of 2020 to a non-GAAP gross margin of 57.5% versus 56% in Q3 of 2019.\nNon-GAAP SG&A in the third quarter of 2020 was 29.4% versus 35.5% in Q3 of 2019.\nIn SG&A, on a non-GAAP basis, we have excluded amortization of purchased intangibles of $2.3 million, legal related expenses of $6 million and restructuring and acquisition-related benefits of less than $1 million.\nNon-GAAP R&D expense in the third quarter of 2020 was 9.2% versus 8.5% in Q3 of 2019.\nThe cumulative sum of these non-GAAP adjustments result in moving the quarterly operating margin from 16.9% on a GAAP basis to 18.8% on a non-GAAP basis.\nThese non-GAAP operating margin compares to a non-GAAP operating margin in Q3 of 2019 of 12%.\nWe have also excluded certain items below the operating line, which are the increase in value of the Sartorius Equity Holdings of 1,580 million and a small loss associated with venture investments.\nThe non-GAAP effective tax rate for the quarter was 22.5% compared to 25.5% in Q3 of 2019.\nWe now estimate the full year tax rate on a non-GAAP basis to be approximately 24%.\nAnd finally, non-GAAP net income for the third quarter of 2020 was $90.3 million or $3 diluted earnings per share compared to $48.6 million and $1.61 per share in Q3 of 2019.\nTotal cash and short-term investments at the end of Q3 were $1,160 million, an increase of $123 million from the end of Q2 of 2020.\nDuring the third quarter, our inventory increased by about $12 million from the second quarter of 2020.\nWe plan to use the cash on hand to repay the $425 million of outstanding senior notes in December.\nIn addition, the market value of our holdings in Sartorius AG has increased, which technically may deem us as an investment company under the 1940 Investment Company Act.\nDuring the third quarter, we did not purchase any shares of our stock, we had a total of $273 million available for potential share buybacks.\nFor the third quarter of 2020, net cash generated from operating activities was $135.7 million, which compares to $99.8 million in Q3 of 2019.\nThe adjusted EBITDA for the third quarter of 2020 was 22.9% of sales.\nThe adjusted EBITDA in Q3 of 2019 was 17%.\nNet capital expenditures for the third quarter of 2020 were $20 million and depreciation and amortization for the third quarter was $33.7 million.\nWe project that the full-year capex spend will likely be between $80 million and $90 million.\nWith that in mind, we currently believe that the full year 2020 year-over-year currency-neutral sales to be up 5.9% to 6.3%.\nWe estimate 27% to 28% currency-neutral revenue growth for Life Science and estimate about 7% currency-neutral revenue decline for the Diagnostics Group in 2020.\nFull year non-GAAP gross margin is projected to be between 56.5% and 57%.\nR&D is around 9%.\nFull year GAAP operating margin between 16% and 16.5% and full-year adjusted EBITDA margin to be between 21% and 21.5%.", "summaries": "Net sales for the third quarter of 2020 were $647.3 million, which is a 15.5% increase on a reported basis versus $560.6 million in Q3 of 2019.\nReported net income for the third quarter was $1,315 million and diluted earnings per share were $43.64.\nWith that in mind, we currently believe that the full year 2020 year-over-year currency-neutral sales to be up 5.9% to 6.3%.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0"}
{"doc": "Since closing our acquisition of JLT, we've grown our total consolidated revenue by 27%, our adjusted earnings per share by 34% and our colleague base by 22%.\nWe grew our headcount year-to-date by nearly 5,000 or around 7%, mostly organic adds with an emphasis on client-facing roles.\nThe Marsh Global Insurance Market Index showed price increases of 15% year-over-year consistent with second quarter.\nThe Marsh market index showed global property insurance was up 9%.\nGlobal, financial and professional lines were up 32% driven in part by a near doubling in cyber rates, and global casualty rates were up high single-digits on average.\nWe generated adjusted earnings per share of $1.08, which is up 32% versus a year ago, driven by strong top-line growth and continued low levels of T&E.\nTotal revenue increased 16% versus a year ago and rose 13% on an underlying basis, the second consecutive quarter of record underlying growth in over two decades.\nUnderlying revenue grew 13% in RIS and 12% in Consulting.\nMarsh grew 13% in the quarter on an underlying basis and benefited from strong new business and renewal growth.\nGuy Carpenter grew 15% on an underlying basis in the quarter continuing its string of excellent results.\nMercer underlying revenue grew 7% in the quarter, the highest in over a decade.\nOliver Wyman grew underlying revenue 25%, the second consecutive quarter in excess of 20%.\nOverall, the third quarter saw adjusted operating income growth of 19% and our adjusted operating margin expanded 10 basis points year-over-year.\nHighlights from our third quarter performance included a second straight quarter of 13% underlying growth in RIS, with 13% in Marsh and 15% in Guy Carpenter, and a second consecutive quarter of 12% underlying growth in Consulting, with 7% of Mercer and 25% at Oliver Wyman.\nGrowth in adjusted earnings per share exceeded 30% for the second quarter in a row.\nConsolidated revenue increased 16% in third quarter, $4.6 billion, reflecting underlying growth of 13%.\nOperating income in the quarter was $740 million, an increase of 37%.\nAdjusted operating income increased 19% to $759 million and our adjusted operating margin increased 10 basis points to 18.5%.\nGAAP earnings per share was $1.05 in the quarter and adjusted earnings per share increased 32% to $1.08.\nFor the first nine months of 2021, underlying revenue growth was 10%.\nOur adjusted operating income grew 21% to $3.4 billion.\nOur adjusted operating margin increased 120 basis points and our adjusted earnings per share increased 28% to $4.82.\nThird quarter revenue was $2.7 billion up 17% compared with a year ago or 13% on an underlying basis.\nOperating income increased 21% to $403 million.\nAdjusted operating income also increased 21% to $469 million and our adjusted operating margin expanded 20 basis points to 20.4%.\nFor the first nine months of the year, revenue was $9 billion with underlying growth of 11%.\nAdjusted operating income for the first nine months of the year increased 20% to $2.5 billion with a margin of 30.3%, up 80 basis points from the same period a year ago.\nAt Marsh, revenue in the quarter was $2.4 billion of 17% compared with a year ago or 13% on an underlying basis.\nGrowth in the quarter was broad-based driven by nearly 40% new business growth and solid retention.\nU.S. and Canada delivered another exceptional quarter with underlying revenue growth of 16% and international underlying growth was 9%, Latin America grew 12%, its best growth since the fourth quarter of 2015, Asia-Pacific was up 9% and EMEA was up 8%.\nFor the first nine months of the year, Marsh's revenue was $7.3 billion with underlying growth of 12%.\nU.S. and Canada underlying growth was 14% and international was up 9%.\nGuy Carpenter's third quarter revenue was $314 million, up 15% compared with a year ago on both a GAAP and underlying basis.\nGuy Carpenter has now achieved 7% or higher underlying growth in seven of the last nine quarters.\nFor the first nine months of the year, Guy Carpenter generated $1.7 billion of revenue and 10% underlying growth.\nIn the Consulting segment, revenue in the quarter was $1.9 billion, up 13% from a year ago or 12% on an underlying basis.\nOperating income increased 45% to $404 million.\nAdjusted operating income increased 15% to $350 million.\nThe adjusted operating margin was 18.9% in line with the margin in the third quarter of 2020.\nConsulting generated revenue of $5.7 billion for the first nine months of 2021, representing underlying growth of 9%.\nAdjusted operating income for the first nine months of the year increased 25% to $1.1 billion and the adjusted operating margin expanded 180 basis points to 19.6%.\nMercer's revenue was $1.3 billion in the quarter, up 7% on an underlying basis, the highest result in over a decade.\nCareer grew 13% on an underlying basis, reflecting the continuing rebound in the global economy and business confidence.\nWealth increased 6% on an underlying basis, reflecting strong growth in investment management and modest growth in defined benefit.\nOur assets under delegated management grew to nearly $400 billion at the end of the third quarter, up 24% year-over-year benefiting from net new inflows and market gains.\nOliver Wyman's revenue in the quarter was $610 million, an increase of 25% on an underlying basis.\nThis represents the second consecutive quarter of more than 20% growth as demand remains strong across most geographies and practices.\nFor the first nine months of the year, revenue at Oliver Wyman was $1.8 billion, an increase of 21% on an underlying basis.\nAdjusted corporate expense was $60 million in the third quarter.\nOur other net benefit credit was $69 million in the quarter and we expect it will remain at this level in the fourth quarter.\nInvestment income was $13 million in the quarter on a GAAP basis and $12 million on an adjusted basis, and mainly reflects gains on our private equity portfolio.\nInterest expense in the third quarter was $107 million compared with $128 million in the third quarter of 2020, reflecting lower debt levels in the period.\nOur adjusted effective tax rate in the third quarter was 24.4% compared with 26.5% in the third quarter last year.\nOur GAAP tax rate was 24.2% in the third quarter, down from 30.3% in the third quarter of 2020 which was impacted by some unusual item.\nThrough the first nine months of the year, our adjusted effective tax rate was 24.4% compared with 24.6% last year.\nBased on the current environment, we continue to expect an adjusted effective tax rate between 25% and 26% for 2021 excluding discrete items.\nWe ended the quarter with $10.7 billion of total debt.\nOur next scheduled debt maturity is in January of 2022 when $500 million of senior notes mature.\nWe continue to expect to deploy at least $3.5 billion of capital in 2021, of which at least $3 billion will be deployed across dividends, acquisitions and share repurchases.\nOur cash position at the end of the third quarter was $1.4 billion.\nUses of cash in the quarter totaled $665 million and included $272 million for dividends, $93 million for acquisitions and $300 million for share repurchases.\nFor the first nine months, uses of cash totaled $2.6 billion and included $750 million for dividends, $566 million for acquisition, $734 million for share repurchases and $500 million for debt repayment.", "summaries": "We generated adjusted earnings per share of $1.08, which is up 32% versus a year ago, driven by strong top-line growth and continued low levels of T&E.\nConsolidated revenue increased 16% in third quarter, $4.6 billion, reflecting underlying growth of 13%.\nGAAP earnings per share was $1.05 in the quarter and adjusted earnings per share increased 32% to $1.08.", "labels": 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{"doc": "We've added 45 OCE clients this year, bringing our total number of clients to 125.\nRevenue for the third quarter came in at $2,786 million, which was $11 million above the high end of our guidance range.\nThird quarter adjusted EBITDA was $604 million with a $22 million beat versus the high end of our guidance range.\nThird quarter adjusted diluted earnings per share was $1.63 reflecting the EBITDA drop-through because the below the line items essentially netted out to zero.\nThird quarter R&DS contracted backlog, including pass-throughs, grew 18.5% year-over-year to $21.7 billion as of September 30th, 2020.\nThe contracted net book-to-bill ratio, including pass-throughs, was 1.71 for the third quarter of 2020 and 1.42 excluding pass-throughs.\nThe LTM contracted book-to-bill ratio at September 30 was 1.55, including pass-throughs and 1.45, excluding pass-throughs.\nThird quarter revenue of $2,786 million grew 0.6% reported and was flat at constant currency.\nRevenue for the first nine months of the year was $8,061 million which was down 1.6% reported and 1.2% at constant currency.\nTechnology & Analytics Solutions revenue of $1,207 million grew 10.2% reported and 9.2% at constant currency.\nYear-to-date Tech & Analytics Solutions revenue was $3,433 million, up 4.9% reported and 5.6% at constant currency.\nIn R&D Solutions third quarter revenue of $1,400 million was down 4.5% at actual FX rate and 5.1% at constant currency.\nExcluding the impact of pass-throughs, R&D Solutions third quarter revenue grew 2.6%.\nYear-to-date revenue of $4,076 million was down 5.6% at actual FX rate and 5.4% at constant currency.\nContract Sales & Medical Solutions revenue of $179 million was down 13.9% year-over-year reported and 14.4% on a constant currency basis in the third quarter.\nYear-to-date revenue was $552 million, down 8.6% at actual FX rates and 8.3% at constant currency.\nNow moving down to P&L, adjusted EBITDA was $604 million for the third quarter, which represented growth of 1.9%.\nYear-to-date adjusted EBITDA was $1,649 million.\nThird quarter GAAP net income was $101 million and GAAP diluted earnings per share was $0.52.\nYear-to-date GAAP net income was $160 million and GAAP diluted earnings per share was $0.82.\nAdjusted net income was $318 million for the quarter and $841 million year-to-date.\nOur adjusted diluted earnings per share grew 1.9% in the third quarter to $1.63.\nYear-to-date adjusted diluted earnings per share was $4.32.\nConsequent on the robust booking activity that Ari talked about, our backlog grew 18.5% year-over-year to close at $21.7 billion and we expect $5.8 billion of this backlog to convert to revenue over the next 12 months, which is an increase of over $400 million versus where we were at June 30th.\nAt September 30th, cash and cash equivalents totaled $1.5 billion and debt was $12.3 billion, resulting in net debt of $10.9 billion.\nDue to our strong EBITDA and cash flow in the quarter, our net leverage ratio at September 30th was 4.7 times trailing 12-month adjusted EBITDA, which was down a tad [Phonetic] from where we were at June 30th.\nCash flow from operations was $574 million in the third quarter, up 74% over last year.\nCapital expenditures were $157 million and that resulted in free cash flow of $417 million.\nFor the first nine months of the year, free cash flow was $769 million, which is about double the same period last year.\nUnderlying demand is robust and cash flow is as well and we have a very solid liquidity position closing the quarter with an undrawn revolver of almost -- undrawn revolver and almost $1.5 billion of cash in the balance sheet.\nAnd as a result of all this, we lifted our suspension on share repurchase program and we're expecting to opportunistically resume share repurchase activity.\nAnd as a reminder, we currently have about $1 billion of share repurchase authorization remaining under the program.\nWe now expect 2020 revenue for the full year to be between $11,100 million and $11,250 million, which is an increase of $125 million over our prior guidance at the midpoint of the range.\nFor profit we now expect full-year adjusted EBITDA to be between $2,335 million and $2,360 million, which represents a $27 million increase over our prior guidance at the midpoint of the range.\nAnd adjusted diluted EPS, we are expecting to be between $6.25 and $6.35, which is an increase of $0.10 over our prior guidance at the midpoint of the range.\nThis full-year guidance implies fourth quarter revenue of $3,040 million to $3,190 million, representing growth of 5% to 10.2%.\nFor fourth quarter profit, we expect adjusted EBITDA to be between $685 million and $710 million, representing growth of 6.7% to 10.6% and adjusted diluted earnings per share to be between $1.93 and $2.03, or growth of 10.9% to 16.7%.\nFor the full year 2021, we expect revenue in the range of $12,300 million to $12,600 million.\nThis represents growth of 10.1% to 12.8% versus the midpoint of our 2020 guide.\nWe expect adjusted EBITDA to be in the range of $2,725 million to $2,800 million, representing growth of 16.1% to 19.3% compared to the midpoint of our 2020 guidance.\nAnd finally, we expect adjusted earnings per share to be in the range of $7.65 to $7.95, which would represent growth of 21.4% to 26.2% compared to the midpoint of our 2020 guidance.\nThe adjusted diluted earnings per share guidance assumes interest expense of approximately $420 million, operational depreciation and amortization of about $400 million and other below the line expense items such as minority interest of approximately $50 million and also the continuation of our share repurchase activity.", "summaries": "Third quarter adjusted diluted earnings per share was $1.63 reflecting the EBITDA drop-through because the below the line items essentially netted out to zero.\nThird quarter GAAP net income was $101 million and GAAP diluted earnings per share was $0.52.\nOur adjusted diluted earnings per share grew 1.9% in the third quarter to $1.63.\nAnd as a result of all this, we lifted our suspension on share repurchase program and we're expecting to opportunistically resume share repurchase activity.\nWe now expect 2020 revenue for the full year to be between $11,100 million and $11,250 million, which is an increase of $125 million over our prior guidance at the midpoint of the range.\nAnd adjusted diluted EPS, we are expecting to be between $6.25 and $6.35, which is an increase of $0.10 over our prior guidance at the midpoint of the range.\nFor the full year 2021, we expect revenue in the range of $12,300 million to $12,600 million.\nAnd finally, we expect adjusted earnings per share to be in the range of $7.65 to $7.95, which would represent growth of 21.4% to 26.2% compared to the midpoint of our 2020 guidance.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n1\n0\n0\n1\n0\n0\n1\n0"}
{"doc": "We have divided our call into 3 parts.\nThrough this past weekend our year-to-date attendance trends have accelerated at our open parks increasing to 79% of 2019 levels compared to 51% in the 4th quarter of 2020.\nTotal attendance for the quarter was 1.3 million guests a 38% decline from first quarter 2019.\nRevenue in the quarter was down $46 million or 36% to $82 million.\nAs a result, our 2021 results include four calendar days in April when many of our parks operated during which we had 293,000 of attendance and this was inclusive of the Easter holiday weekend.\nSo far through this past weekend year-to-date attendance had open parks is trending at 79% versus 2019.\nTotal guest spending per capita increased 16% in the quarter versus 2019.\nApplying a pro forma allocation to 2019 admissions spending per capita increased 17% and in-park spending per capita increased 14% compared to the first quarter of 2019.\nAttendance from our active pass base in the first quarter represented 54% of total attendance versus 64% percent for the first quarter of 2019 demonstrating a more balanced approach to ticket sales.\nOn the cost side, cash operating and SG&A expenses versus 2019 decreased by $29 million or 20% primarily due to the following.\nAdjusted EBITDA for the quarter was a loss of $46 million compared to a loss of $42 million in the first quarter 2019.\nGAAP loss per share was $1.12 compared to a loss of $0.82 in 2019, primarily due to the lower attendance in our parks.\nWe are pleased with the retention of our active pass base of 4.1 million pass holders, which included 1.7 million members and 2.4 million traditional season pass holders at the end of first quarter 2021.\nOur active pass base is up 1% compared to first quarter 2020 and down only 9% compared to first quarter 2019.\nLooking ahead, we expect the active pass base trends to continue to improve as we have begun selling new season passes and memberships.\nDeferred revenue as of April 4, 2021 was $245 million, up $96 million or 65% compared to first quarter 2020 and up $67 million or 38% compared to first quarter 2019.\nThe capital expenditures for the quarter was $23 million.\nWe expect our full-year 2021 capital spend to be slightly lower than 2020 due to the carryover of new rights that were delivered and paid for, but not commission in 2020.\nOur liquidity position, as of April 4 was $524 million this included $461 million of available revolver capacity net of $20 million of letters of credit and $63 million of cash.\nThis compares to a liquidity position of $618 million as of December 31, 2020.\nNet cash outflow for the quarter was $95 million representing an average of $32 million per month.\nThis is significantly better than the projection of 53 million to $58 million per month that we gave on our last earnings call.\nLess than $1 million of value in units has been put to Six Flags during the current year tender period that will end later today.\nWe expect the transformation plan to unlock $80 million to $110 million in incremental annual run rate EBITDA once fully implemented and attendance returns to 2019 levels.\nIn 2021, we expect to achieve $30 million to $35 million from our organizational redesign and other fixed cost reductions.\nWe have already realized more than $8 million through the first quarter of this year.\nAs part of our transformation plan, we have incurred $44 million in cost so far through the first quarter 2021 including the non-cash write-offs of $10 million that occurred in 2020.\nWe expect to incur the remaining $26 million in 2021 and 2022, the majority of which is related to investments in technology, including a new CRM system.\nWe launched more than 20 RFPs as part of our non-headcount cost savings initiatives and we are seeing very promising results especially in procurement savings.\nIn addition, our parks are located in each of the top 10 markets in the US, giving us access to the biggest and most lucrative markets around the country.\nWe are already seeing the early benefits in our improved single day ticket mix, our in-park spending growth and cost savings from our leaner organizational structure in our procurement efforts, but we're just getting started and we are on track to deliver the full $80 million to $110 million of incremental EBITDA when we are back in a normalized operating environment.", "summaries": "Through this past weekend our year-to-date attendance trends have accelerated at our open parks increasing to 79% of 2019 levels compared to 51% in the 4th quarter of 2020.\nTotal attendance for the quarter was 1.3 million guests a 38% decline from first quarter 2019.\nRevenue in the quarter was down $46 million or 36% to $82 million.\nOn the cost side, cash operating and SG&A expenses versus 2019 decreased by $29 million or 20% primarily due to the following.\nGAAP loss per share was $1.12 compared to a loss of $0.82 in 2019, primarily due to the lower attendance in our parks.\nLooking ahead, we expect the active pass base trends to continue to improve as we have begun selling new season passes and memberships.\nWe expect our full-year 2021 capital spend to be slightly lower than 2020 due to the carryover of new rights that were delivered and paid for, but not commission in 2020.\nThis compares to a liquidity position of $618 million as of December 31, 2020.\nNet cash outflow for the quarter was $95 million representing an average of $32 million per month.", "labels": "0\n1\n1\n1\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n1\n0\n0\n1\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We are seeing high levels of rent growth along with sustained occupancy levels over 97% for our portfolio which bodes well for the remainder of the year.\nCamden's markets -- eight of Camden's markets ranked in the top 10 for 2022 investor demand.\nSame property revenue growth exceeded expectations yet again at 5.1% for the quarter and was positive in all markets, both year-over-year and sequentially.\nWe posted double-digit growth in Phoenix and South Florida, both at 10.1%, followed by Tampa at 9.5%.\nYear-to-date, same-property revenue growth is 2.9%, and we expect strong performance in the fourth quarter across our portfolio, resulting in our revised 2021 guidance range of 4% to 4.5% for full year revenue growth.\nFor 3Q '21, signed new leases were 19.8% and renewals were 12.1% for a blended rate of 16% flat.\nFor leases, which were signed earlier and became effective during the third quarter, new lease growth was 16.6% with renewals at 8.5% for a blended rate of 12.2%.\nOctober 2021 remained strong with signed new leases trending at 18.3%, renewals at 13.8% and a blended rate of 16.5%.\nRenewal offers for November and December were sent out with an average increase of 15% to 16%.\nOccupancy has also been very strong and was 97.3% for the third quarter of '21 and is still holding at 97.3% for October to date.\nNet turnover remains low at 47% for the third quarter of '21 versus 49% in the third quarter of last year.\nAnd move-outs to home purchases moderated from 17.7% in the second quarter of '21 to 15% in the third quarter of '21, trending below our long-term average of about 18%.\nDuring the third quarter of 2021, we purchased Camden Central, a recently constructed 368 unit, 15-story community in St. Petersburg, Florida.\nAnd subsequent to quarter end, we purchased Camden Greenville, a recently constructed 558 unit mid-rise community in Dallas.\nThe combined purchase price for these two acquisitions is approximately $342 million and both assets were purchased at just under a 4% yield.\nAlso during the quarter, we stabilized Camden Downtown, a 271 unit, $132 million new development in Houston.\nAnd subsequent to quarter end, we stabilized ahead of schedule Camden North End II, a 343-unit, $79 million new development in Phoenix.\nAdditionally, during the quarter, we completed construction on Camden Lake Eola, a $125 million new development in Orlando.\nOn the financing side, during the quarter, we issued approximately $222 million of shares under our existing ATM program.\nLast night, we reported funds from operations for the third quarter of 2021 of $142.2 million or $1.36 per share, exceeding the midpoint of our guidance range by $0.03 per share, which resulted primarily from approximately $0.01 in higher same-store NOI, resulting from $0.02 of higher revenue driven by higher rental rates, higher occupancy and lower bad debt, partially offset by $0.01 of higher operating expenses entirely driven by higher-than-anticipated amounts of self-insured expenses.\n-- approximately $0.015 and better-than-anticipated results from our non-same-store development and acquisition communities and approximately $0.01 from the timing of our third quarter acquisition.\nThis $0.035 aggregate outperformance was partially offset by $0.005 impact from our higher share count resulting from our recent ATM activity.\nTaking into consideration our continued significant improvement in new leases, renewals and occupancy and our resulting expectations for the remainder of the year, we have increased the midpoint of our full year same-store revenue guidance from 3.75% to 4.25%.\nAnd we have increased the midpoint of our full year same-store NOI guidance from 3.75% to 4.5%.\nWe are maintaining the midpoint of our same-store expense guidance at 3.75% as the higher-than-expected third quarter insurance expenses are anticipated to be entirely offset by lower-than-expected property tax expenses in the fourth quarter.\nWe are now anticipating that our full year property tax growth rate will be approximately 1.6%, which includes $1.8 million of property tax refunds anticipated in the fourth quarter.\nOur 4.25% same-store revenue growth assumption is based upon occupancy averaging approximately 97% for the remainder of the year with the blend of new lease and renewals averaging approximately 16%.\nLast night, we also increased the midpoint of our full year 2021 FFO guidance by $0.10 per share.\nOur new 2021 FFO guidance is $5.34 to $5.40 with the midpoint of $5.37 per share.\nThis $0.10 per share increase results from -- are anticipated 75 basis points or approximately $0.05 increase in 2021 same-store operating results, $0.01 of this increase already occurred in the third quarter, an approximate $0.05 increase from our non-same-store development and acquisition communities, of which $0.025 already occurred in the third quarter and an approximate $0.02 increase in FFO from later and lower-than-anticipated fourth quarter disposition activities.\nWe now anticipate approximately $110 million of dispositions in early November and approximately $220 million of dispositions in early December as compared to our previous expectations of $450 million of dispositions, all occurring in early November.\nThis $0.12 aggregate increase in FFO is partially offset by an approximate $0.02 impact from our third quarter ATM activity.\nWe expect FFO per share for the fourth quarter to be within the range of $1.46 to $1.52.\nThe midpoint of $1.49 represents $0.13 per share improvement from the third quarter, which is anticipated to result from an $0.11 per share or approximate 7.5% expected sequential increase in same-store NOI, driven by both a 2.5% or $0.055 per share sequential increase in same-store revenue, resulting primarily from higher rental rates and a 6.5% decrease in sequential same-store expenses driven primarily by $0.025 fourth quarter decrease in property taxes, combined with a fourth quarter, $0.015 decrease in property insurance expenses and $0.015 third to fourth quarter seasonal decrease in utility, repair and maintenance, unit turnover and personnel expenses, a $0.03 per share increase in NOI from our development communities in lease-up and our nonsame-store communities and $0.02 per share increase in FFO resulting from the full quarter contribution of our recent acquisitions.\nThis aggregate $0.16 increase is partially offset by $0.015 decrease in NOI from our planned fourth quarter disposition activities and $0.015 per share incremental impact from our third quarter ATM activity.\nOur balance sheet remains strong with net debt-to-EBITDA at 4.4 times and a total fixed charge coverage ratio at 5.8 times.\nAs of today, we have approximately $1.1 billion of liquidity, comprised of approximately $200 million in cash and cash equivalents and no amounts outstanding under our $900 million unsecured credit facility.\nAt quarter end, we had $242 million left to spend over the next three years under our existing development pipeline.", "summaries": "Last night, we reported funds from operations for the third quarter of 2021 of $142.2 million or $1.36 per share, exceeding the midpoint of our guidance range by $0.03 per share, which resulted primarily from approximately $0.01 in higher same-store NOI, resulting from $0.02 of higher revenue driven by higher rental rates, higher occupancy and lower bad debt, partially offset by $0.01 of higher operating expenses entirely driven by higher-than-anticipated amounts of self-insured expenses.\nWe expect FFO per share for the fourth quarter to be within the range of $1.46 to $1.52.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "Fourth quarter revenue grew over 14% to $1.7 billion and adjusted earnings per share increased 23%, representing a great finish to our fiscal 2021 year, where revenue of $6.2 billion was accompanied by an adjusted earnings per share increase of 47% to $3.58.\nI'm pleased with the progress we've made in enhancing our overall profitability as full year adjusted EBITDA margins reached a record 7.3% and fourth quarter adjusted EBITDA margins increased 40 basis points from prior year.\nGoing forward, we expect that ongoing concerns around COVID-19 variance will lead to incremental opportunities for our disinfection services, providing support for our adjusted EBITDA margins exceeding 6% in fiscal 2022 per our guidance.\nThis industry group, which was most impacted by the pandemic, generated 43% year-over-year revenue growth in the fourth quarter as air travel trends improved markedly over the prior year and we capitalized on new business opportunities, including the expansion of our parking operations at airports.\nOur fourth quarter was also benefited from 21% growth in Technical Solutions revenue, reflecting growth in our emerging e-mobility business and improved access to client-site.\nTechnical Solutions backlog increased by 20% sequentially compared to the third quarter and reached a record level in the fourth quarter, driven by the transition to electric vehicles and the associated need for charging stations, our e-mobility business has significant long-term growth potential.\nKey growth drivers for this business include federal stimulus funds designated for energy efficient projects as well as the recent passage of the federal infrastructure bill that included $7.5 billion toward deploying EV charging stations nationwide.\nThe total Elevate investment is estimated to be $150 million to $175 million and the initiatives is expected to be largely completed by the end of fiscal 2025.\nIn fiscal '22, we expect to invest approximately $80 million in Elevate, enabling us to significantly advance the implementation of our digital transformation.\nFor fiscal 2022, we forecast GAAP earnings per diluted share of $2.05 to $2.30 and adjusted earnings per share of $3.30 to $3.55.\nWithin this guidance, we assume an easing of COVID related disinfection services and work orders, leading us to project fiscal '22 adjusted EBITDA margins of 6.2% to 6.6%, inclusive of synergies from Able Services acquisition.\nWhile earnings per share and margins are projected to decline from fiscal 2021, they are significantly above pre-pandemic levels and above our targeted long-term metrics we outlined in 2019 when we signaled an aspirational margin range of 5.5% to 6%.\nFourth quarter revenue increased 14.2% to $1.7 billion, primarily driven by one month of contribution from the acquisition Able Services, continued client demand for disinfection services and a generally improving economic environment.\nGAAP income from continuing operations in the fourth quarter was $34.3 million or $0.50 per diluted share, compared to $53.1 million or $0.78 per diluted share in the same period last year.\nThe decrease in GAAP income reflects higher operating and corporate expenses, which included acquisition related costs of $19.7 million, initial investments in our Elevate initiative and a lower benefit from self-insurance adjustments related to prior years.\nOn an adjusted basis, fourth quarter income from continuing operations grew 25% to $58.2 million or $0.85 per diluted share compared to $46.7 million or $0.69 per diluted share in the fourth quarter of last year.\nCorporate expenses were $40.9 million higher compared to the fourth quarter of fiscal 2020, due to acquisition-related expenses, a lower benefit from prior year self-insurance adjustments and costs related to hiring initiatives.\nCorporate expenses in the fourth quarter of fiscal 2021 were also impacted by $10.3 million of initial investments in the Elevate transformation initiative that Scott mentioned, and that we will discuss more fully later on.\nB&I revenue increased 17.5% year-over-year to $933 million, driven primarily by a one-month contribution from Able Services, increased office occupancy and the expansion of key accounts.\nExcluding the contribution from Able, B&I revenue increased 4.7% from the prior period.\nOperating profit in B&I declined 3% to $82.1 million from the same period last year, reflecting an easing in higher margin work orders.\nAviation revenue increased 43% to $201.7 million, marking the second consecutive quarter of robust year-over-year revenue growth.\nAviation operating profit increased to $13.2 million, compared to $3.5 million in last year's fourth quarter, driven by the significant rebound in revenue as well as our efforts to emphasize higher margin airport facility services.\nRevenue within our Technology & Manufacturing segment was essentially flat year-over-year at $245.5 million, as new business starts were offset by reduced client demand for COVID related work orders and EnhancedClean.\nHowever, operating margins for T&M improved to 10% in the fourth quarter, up 40 basis points from last year's fourth quarter benefiting from efficient labor management and contract expansions.\nEducation revenue declined 3.7% to $204.4 million, largely reflecting the timing of contract rebids.\nOperating profit totaled $7.7 million, down from $15.1 million in last year's fourth quarter.\nMoving forward, we anticipate Education segment profit margins will be approximately 6% in fiscal 2022, representing an increase of more than 100 basis points compared to pre-COVID levels, resulting from a sustained uplift in labor efficiency and higher disinfection revenue.\nRevenue within our Technical Solutions segment grew 21% to [Technical Issues] million, aided by continued strong growth in our emerging electric vehicle charging infrastructure business, improved access to client sites and strengthened client demand for energy efficient solutions.\nSegment operating income returned to profitability and generated an operating profit margin of 12.8%.\nWe ended the fourth quarter with $62.8 million in cash and cash equivalents, compared to $394.2 million with total debt of $1.06 billion as of October 31, 2021.\nOur total debt to pro forma adjusted EBITDA, including standby letters of credit was 1.9 times at the end of the fourth quarter of fiscal 2021.\nAs for our dividends, I am pleased to report the Board approved a 2.6% increase in our quarterly dividend to $19.5 to be paid out in February.\nAs Scott mentioned, our guidance for full year fiscal 2022 adjusted income from continuing operations is a range of $3.30 to $3.55 per diluted share.\nPlease note that our adjusted earnings guidance excludes approximately $72 million in Elevate related expenses that are planned in fiscal 2022.\nWe expect that fiscal 2022 tax rate to be approximately 30% excluding any discrete items.\nAs a reminder, each workday represents approximately $7 million of labor expense.\nCapital expenditures for fiscal 2022 are expected to be approximately $54 million, including $8 million related to Elevate investments.\nWe forecast depreciation to be approximately $50 million for the year.\nThis will improve the productivity of our frontline workforce and create digital connections with our clients and our teammates and will drive profitable growth, will accelerate organic revenue growth rates by close to 50% with sustainable adjusted EBITDA margins almost double where we started in 2015, while building on our significant cash flow.\nTo fund our acquisition strategy during 2020 vision, we upsized our credit facility from $800 million to $1.6 billion.\nWe also consistently increased our dividend for over 55 years.\nOur journey started with a 3.8% adjusted EBITDA margin.\nBy 2019, our adjusted EBITDA margin expanded by 140 basis points to 5.2%.\nRevenue grew by 23% to $6.5 billion and adjusted earnings per share grew 27%, reaching $2.05 per share.\nWe acted quickly and decisively, rapidly building and deploying new capabilities and mobilizing our teams to lead our clients through the unpredictable shutdowns and reopenings we've all experienced over the past 20 months.\nThese actions led to bottom line profitability beyond expectation, driving our pre-COVID adjusted EBITDA margin baseline from 5% up to 7.3% in 2021, while generating cumulative COVID-related revenues of $600 million over 2020 and 2021.\nOur world has fundamentally changed over the past 20 months.\nWe have unrivaled competitive advantage anchored in our market leadership across all end markets and industries we serve, unparalleled reach with a large distributed network of people and branch offices to serve our clients across the US and UK, a unique portfolio of services spanning janitorial, engineering, parking, technical solutions and aviation services, a trusted reputation that we have earned over the last 110 years of long-lasting client relationship and a strong balance sheet that we will use strategically and opportunistically as expansion possibilities arise.\nThe total addressable market although very large at $250 billion is highly fragmented.\nThe $1 trillion bipartisan infrastructure bill that just passed will open doors for us.\nIn fact, it allocates $7.5 billion that could be used to construct EV charging stations.\nWe expect both higher education and K-12 schools to continue to invest in disinfection programs, while also focusing on indoor air quality.\nHowever, our exposure to airports and not just airlines insulated us against the more severe impact as flight volumes dropped almost 90% during the peak.\nOver the last few years, we've evolved from 45% airport clients and 55% airline clients to 55% airport clients and 45% airline clients as airports are less impacted by fluctuating passenger volume.\nEstimates show that 1 billion square feet of net new US distribution warehouse space is needed to support e-commerce growth due to consumer demands.\nThis represents more than 100% growth in these types of facilities.\nThe accelerated growth of our technology clients with their expanded office footprint is best served by B&I and the branch network with roughly $300 million in annual revenue moving over.\nM&D will maintain our large manufacturing clients and add distribution clients with roughly $400 million in annual revenue moving over.\nWe will build stronger HR capabilities by enhancing our HR shared services center that provides team members with support in HR related information 24/7, while we continue to evolve our broader HR capabilities.\nMelanie is a visionary technology leader with more than 20 years of experience across diverse industries, including gaming, commercial real estate, manufacturing, healthcare and aviation.\nThe substantial increase in demand for disinfecting services combined with our team's continued strong operational execution and drive for labor efficiencies contributed to record adjusted EBITDA margins exceeding 7% in fiscal 2021.\nThis represents a more than 200 basis point improvement versus pre-COVID adjusted EBITDA margins in fiscal 2019.\nWhile we anticipate an easing of these tailwinds as we emerge from the pandemic, we are confident that we can retain approximately 50 basis points to 70 basis points of uplift over the long-term as we expect to maintain a portion of both the disinfection related revenue and profitability along with a higher baseline level of labor efficiency.\nAs we build upon the improved positioning gained over the past 18 months, we are guiding to an adjusted EBITDA margin within a range of 6.2% to 6.6%.\nThis represents a meaningful improvement over our baseline pre-pandemic adjusted EBITDA margin of 5.2% reported in fiscal 2019, but lower than fiscal 2021 as the pandemic tailwinds ease and our business begins to normalize.\nOur Elevate strategy includes a series of discrete transformational investments that total between $150 million to $175 million.\nBy design, the Elevate plan is front-end loaded as we plan to spend approximately $80 million in fiscal 2022 or by approximately $45 million in fiscal '23 and approximately $15 million in each of the following two years.\nOf the $80 million planned in fiscal 2022, approximately $72 million will be a discrete expense and will be reported as items impacting comparability and as such will not be included in adjusted earnings per share guidance of $3.30 to $3.55.\nThe balance of approximately $8 million will be included in capital expenditures.\nAbout 30% of the investments will be allocated toward workforce management and the investment in our people.\nThe remaining 20% will be used to fuel our organic growth initiatives and our go-to-market strategies, including investments in centralized platforms to support capabilities such as hyper sales targeting, price optimization and strategic account management.\nOur goal is for Elevate to accelerate our organic revenue growth rate to the mid-single digit range, up approximately 50% versus our previous growth rate with potential upside from additional strategic acquisitions.\nAs revenue growth accelerates, we also anticipate a corresponding and gradual improvement to our adjusted EBITDA margins of approximately 20 basis points annually starting in fiscal 2023.\nThe related investments are expected to generate $110 million to $130 million in incremental adjusted EBITDA on a run rate basis by fiscal 2025, driving a projected internal rate of return of 28%.\nTo put this in perspective, at the conclusion of Elevate in fiscal 2025, we envision ABM will generate annual revenue of approximately $9 billion with a sustainable adjusted EBITDA margin of 7%, representing a significant improvement from our baseline level of $7 billion in revenue with a normalized adjusted EBITDA margin below 6%.\nWe are also targeting annualized free cash flow at a run rate of approximately $400 million by fiscal 2025.\nOur goal is to be a roughly $9 billion business with [Technical Issues] sustainable adjusted EBITDA margins by the end of 2025.\nFrom a growth perspective, our investments will drive organic growth rates, almost 50% higher than -- approaching 4% annually.\nWhen factoring in our M&A strategy, we are targeting an overall compounded annual growth rate of over 10%.\nThe focus on the client experience through investments in customer-facing technology and innovation and a new retention strategy aim to improve our client retention rates to between 92% and 94%.", "summaries": "Fourth quarter revenue increased 14.2% to $1.7 billion, primarily driven by one month of contribution from the acquisition Able Services, continued client demand for disinfection services and a generally improving economic environment.\nGAAP income from continuing operations in the fourth quarter was $34.3 million or $0.50 per diluted share, compared to $53.1 million or $0.78 per diluted share in the same period last year.\nOn an adjusted basis, fourth quarter income from continuing operations grew 25% to $58.2 million or $0.85 per diluted share compared to $46.7 million or $0.69 per diluted share in the fourth quarter of last year.\nAs for our dividends, I am pleased to report the Board approved a 2.6% increase in our quarterly dividend to $19.5 to be paid out in February.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Adjusted company FFO was $0.22 per diluted common share in the quarter, which included $10.9 million of lease termination income primarily associated with a legacy industrial asset in Durham, New Hampshire.\nDuring the quarter, we purchased three industrial assets for approximately $51 million and completed the fully leased development project in the Columbus market.\nOverall, these investments produced average estimated stabilized GAAP and cash cap rates of 6.1% and 5.9% respectively.\nOccupancy is healthy and our industrial exposure represented over 91% of gross real estate assets at quarter-end excluding held-for-sale assets.\nOur industrial portfolio is benefiting from all these trends with first quarter industrial base and cash base rent renewal increases of 14.6% and 5.4% respectively representing the most visible sign.\nAdditionally, we have approximately $206 million of assets, either under contract or with an accepted offer, which we expect to close later this quarter.\nAfter a slow start that is typical of the first quarter, current deal flow is robust, with more than $1 billion of investments under review.\nWe leased 1.5 million square feet during the quarter and at quarter-end our stabilized portfolio was 97.8% leased.\nIn addition to the three lease renewals in our single-tenant industrial portfolio, we raised occupancy at our multi-tenant industrial facility in Antioch Tennessee to nearly 100% and simultaneously increased base rental rates by approximately 16% for the two new tenants within the facility.\nSubsequent to quarter-end, we executed a five-year extension at our 423,000 square foot industrial facility in Lumberton North Carolina and increased base and cash base rent by 23% and 8.6% respectively.\nOur balance sheet continues to be in great shape, with net debt to adjusted EBITDA of 4.6 times at quarter-end.\nOur cash balance at quarter-end was $170 million, including restricted cash and we had $94.5 million sold forward in our ATM.\nLiquidity was enhanced during the quarter by $58 million of sales at GAAP and cash cap rates of 6.3% and 6.5% respectively and will be augmented by retained cash flow throughout the balance of the year.\nSubsequent to the quarter, we sold our industrial facility in Laurens South Carolina for $40 million.\nCurrently we have assets under contract or with an accepted offer for an aggregate gross price of approximately $135 million.\nOur remaining non-core sale portfolio consists of 17 properties, which generated first quarter NOI of $8.2 million.\nWe believe the current value of this portfolio is approximately $290 million.\nThe two Indianapolis assets we acquired during the quarter are virtually identical buildings, each approximately 150,000 square-foot Class A facilities built in 2019, well-located in Northwest Indianapolis within one mile of I-65.\nThe properties are 100% leased, each with two tenants, and have a weighted average lease term of just under five years, with rental escalations of 2.5%.\nIndianapolis is one of the top five cargo airports in the country, with the second largest FedEx hub in the world and it ranks as one of the top 10 U.S. bulk distribution markets.\nProperty is a brand-new 222,000 square foot Class A warehouse distribution center and is primarily leased on a long-term basis with 2.5% annual escalations to credit tenant Motion Industries a subsidiary of Genuine Parts Company.\nWe are currently in negotiations with a potential tenant for a portion of the remaining square footage and have multiple prospects viewing the additional space, as we work toward a stabilized cash yield forecasted to be approximately 5.3%.\nLakeland is a core sub-market on the I-4 corridor between, Tampa and Orlando, two of Florida's largest and fastest-growing MSAs.\nOur approximately 320,000 square-foot Rickenbacker project in Columbus, leased to a subsidiary of PepsiCo was completed in the first quarter.\nThe estimated GAAP and cash stabilized yields are 7.9% and 7.7%, respectively.\nIn Atlanta, our Class A, 910,000 square-foot development project is expected to be substantially completed this quarter.\nWe currently estimate our development costs to be approximately $54 million.\nAnd our stabilized cash yield is estimated to be around 5.25%, which assumes 100% occupancy and payment of our tenant of our core Promote.\nThe property is in a prime-location along the I-85, South sub-market of Atlanta and we've been seeing sales trade, at substantial premiums to building costs.\nThe Central Florida project is a Class A, 1.1 million square-foot warehouse distribution center, located on a 90-acre site with frontage along I-75 and near our recently purchased Amazon facility.\nThe estimated development cost is approximately $81 million.\nOcala is very well-situated for statewide Florida distribution requirements, located just north of I-75 Florida turnpike's split offering access to Tampa, Orlando and the East and West Coast of Florida as well as more toward Jacksonville and Georgia.\nOur Indianapolis project in Mount Comfort which we began funding subsequent to the quarter, is just 14 miles east of downtown Indianapolis with easy access to I-70.\nThe 1.1 million square-foot facility has an estimated cost of roughly $60 million.\nThe shell completions are anticipated late in the first and second quarters in 2022, for the Ocala and Mount Comfort projects respectively, both with stabilized cash yields in the mid-5% range.\nWe generated adjusted company FFO of approximately $64 million or $0.22 per diluted common share in the quarter and adjusted company FFO would have been approximately $0.19 per diluted common share, excluding lease termination income of $10.9 million.\nRevenues during the quarter were $93 million, representing an increase compared to the same time period in 2020, mostly due to new acquisitions and the termination income I just mentioned.\nProperty operating expenses were roughly $11 million with approximately 88% attributable to tenant reimbursement.\nFirst quarter G&A was $8.4 million.\nAnd we expect our 2021 G&A range, to be $31 million to $33 million.\nOverall, same-store NOI increased 0.6% and would have been approximately 1.7% excluding single-tenant vacancy with our same-store lease portfolio at 97.5%.\nMore specifically, industrial same-store NOI increased 1.5% and would have been 2.8% excluding single-tenant vacancy.\nAt quarter-end, approximately 88% of our industrial portfolio leases had escalations with an average rate of 2.3%.\nOn the capital markets front, we took the opportunity in the first quarter to increase our availability under our ATM program to $350 million.\nAdditionally, we entered into forward sales contracts for an aggregate of 3.6 million common shares, which have not yet settled.\nAs of March 31, we had 8.6 million common shares unsettled under forward sales contracts which had an aggregate settlement price of $94.5 million.\nAt quarter-end, we had nothing outstanding on our unsecured revolving credit facility and unencumbered NOI remains high at 91%.\nIn addition, our consolidated debt outstanding was approximately $1.4 billion with a weighted average interest rate of approximately 3.3% and a weighted average term of 6.7 years.", "summaries": "Adjusted company FFO was $0.22 per diluted common share in the quarter, which included $10.9 million of lease termination income primarily associated with a legacy industrial asset in Durham, New Hampshire.\nWe generated adjusted company FFO of approximately $64 million or $0.22 per diluted common share in the quarter and adjusted company FFO would have been approximately $0.19 per diluted common share, excluding lease termination income of $10.9 million.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "All of our 34 plants around the world are operating, and we are satisfying all of our customer needs.\nOverall, our sales were up sequentially 28% from the second quarter and down 5% from the third quarter of last year on a pro forma basis.\nFirst, as we look sequentially, the Americas saw the largest quarterly net sales improvement as sales grew 48% sequentially, driven primarily by stronger volumes.\nA similar story I heard in Asia Pacific, EMEA, and our Global Specialty Businesses, where volume improvement drove net sales increases of 24%, 21% and 16% respectively compared to the second quarter.\nMetalworking increased the most and grew 39% sequentially from the second quarter, due primarily to automotive OEMs and related suppliers coming back from the prolong shutdowns or significantly reduced production rates in the second quarter due to COVID.\nOur other industry groups of metals and Global Specialty Businesses also increased and showed growth of 21% and 16% respectively.\nSo overall, our sequential volumes were up 27% but our pro forma volumes were still down versus last year by approximately 10%, when excluding the positive impact of Norman Hay, which we acquired last October.\nThis approximately 10% decline was felt in all regions and segments.\nI also want to point out that we did continue to take market share despite the weakness in our end markets as our continued analysis shows that we have total organic sales growth due to net share gains of approximately 2% in this quarter versus the third quarter of last year.\nAs we said previously, we estimate it will take at least two more years for our markets to fully return, and some markets like aerospace, which makes up about 3% of our sales, will take more time than that.\nThis pandemic and its impacts have been similar in many ways to what we went through in late 2008.\nEssentially, all discretionary expenses have been eliminated, we stopped new hires where possible, some positions were furloughed, and our planned capital expenditures have been cut by over 30%.\nFor 2020, our current estimate is $58 million of cost synergies achieved versus our earlier estimate of $53 million.\nAlso, the total synergies we estimate that we will achieve in 2021 have been raised from $65 million to $75 million with '22 reaching $80 million.\nIn this quarter, we achieved $17 million in synergies, and we expect sequential improvement during our future quarters.\nAlso, our cash flow is very strong and our net debt decreased by 7% or $58 million.\nLooking ahead, we anticipate that throughout the next year or two, our markets will show gradual sequential improvement.\nFor the fourth quarter, we expect our adjusted EBITDA to be in the ballpark of the third quarter, and for the full year, we expect our adjusted EBITDA to exceed $215 million.\nAs we look forward to 2021, we expect our adjusted EBITDA to increase by 20%-plus as we continue our integration savings, take market share in the marketplace, and benefit from an expect gradual rebound in demand.\nRemember that we closed the Combination on August 1, 2019, so our actual reported and non-GAAP Q3 2019 results include only two months of Houghton.\nPlease see slides 6 through 10 now, while I review some highlights.\nAs Mike noted, we saw sales rebound of $367 million in the third quarter, up 28% from $286 million in Q2, but still down 5% from pro forma Q3 2019 sales of $386 million, due primarily to lower volumes as a result of COVID-19.\nOur gross margin of 38.2% is up significantly from our gross margin of 34% in Q2 and 32.3% in Q3 of last year, which we estimate would have been about 35.5%, excluding a purchase accounting adjustment.\nWe also saw a benefit to our gross margin this quarter that we estimated approximately 0.5%, which we attribute to price mix that we believe was unique to the quarter.\nOur non-GAAP operating income of $43.2 million rebounded significantly from Q2's $11.2 million and is also up 25% from $34.5 million in Q3 of last year, primarily due to the addition of Houghton and Norman Hay and the benefits of realized cost synergies, partially offset by the negative impact of COVID-19.\nSimilarly, our non-GAAP earnings per share of $1.56 is up significantly from Q2's $0.21, while it is flat to last year as a result of the additional shares issued at close of the Combination.\nOur effective tax rate in the current quarter was an expense of 8.1% versus a benefit of 27.6% in Q3 of last year.\nExcluding the impact of all unusual items, we estimate that our Q3 effective tax rates would have been approximately 24% and 20% for 2020 and 2019, respectively.\nFor the full year, we expect our effective tax rate, excluding all unusual items will be in the range of 23% to 25%.\nAs Mike mentioned earlier, we're pleased to see our adjusted EBITDA almost double to approximately $64 million in Q3 from the Q2 level of approximately $32 million and increased approximately 5% compared to our pro forma adjusted EBITDA of $61 million in Q3 of last year.\nIndeed, we saw this in both Q2 and Q3 and are pleased to report that our year-to-date operating cash flow more than tripled versus last year to $112 million.\nIn addition, our low capital intensity allows us flexibility with our capital spending, and consistent with our Q2 call, we're on pace to reduce our capex by more than 30% versus our original pre-COVID estimate.\nAs a result of our strong cash flow, we were able to reduce net debt by $58 million, a 7% reduction from Q2.\nThis improves our leverage ratio to 3.4 times from 3.7 times at the end of June, and our bank calculated leverage at the end of Q3 was about 2.9 times versus our covenant maximum of 4.25 times.\nIn addition, as Mike noted, we further increased our estimates of expected Combination cost synergies from $53 million to $58 million in 2020, from $65 million to $75 million in 2021, and from $75 million to $80 million in 2022.\nIn 2021, as Mike mentioned, we expect to see a greater than 20% increase in adjusted EBITDA.", "summaries": "Looking ahead, we anticipate that throughout the next year or two, our markets will show gradual sequential improvement.\nFor the fourth quarter, we expect our adjusted EBITDA to be in the ballpark of the third quarter, and for the full year, we expect our adjusted EBITDA to exceed $215 million.\nSimilarly, our non-GAAP earnings per share of $1.56 is up significantly from Q2's $0.21, while it is flat to last year as a result of the additional shares issued at close of the Combination.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We reported a consecutive quarterly record underwriting profit in the second quarter of 2021 along with strong net investment income, resulting in an annualized return on beginning of year equity of 15%.\nThe company reported net income of $237 million, or $1.27 per share.\nThe components include operating income of $219 million, or $1.17 per share and after-tax net investment gains of $18 million or $0.10 per share.\nDrilling down into our quarterly underwriting performance, you will note that gross premiums written grew by $529 million, or 24.8%, almost $2.7 billion.\nNet premiums written grew $472 million, or 27.2% to more than $2.2 billion, recognizing an increase in both segments.\nMoving into segment production of net premiums written, the insurance segment grew 29.2% to almost $2 billion, with an increase in all lines of business.\nProfessional liability led this growth with 64.8%, followed by commercial auto with 31%, other liability of 28.7%, short tail lines of 21.2% and workers' compensation of 15.6%.\nThe reinsurance and Monoline Excess segment grew about 11% to $218 million, with an increase in Monoline Excess of 20.9% and casualty reinsurance of 17.5%, partially offset by a decrease in property reinsurance of 13.8%.\nIn addition, our current accident year, catastrophe losses decreased significantly quarter-over-quarter from $146 million, or 8.7 loss ratio points in the prior year to $44 million or 2.2 loss ratio points in the current quarter.\nAs a result, quarterly underwriting income increased almost 800% to a record $202 million.\nThe reported loss ratio was 61% in the current quarter, compared with 67.7% in 2020.\nPrior-year loss reserves developed favorably by about $0.5 million in the current quarter.\nAccordingly, our current accident year loss ratio, excluding catastrophes was 58.8% compared with 59.2% for the prior year's quarter.\nThe continued growth in net premiums earned has benefited the expense ratio, which was 28.7% in the current quarter compared with 31% a year ago.\nNet premiums earned outpaced underwriting expenses by a margin of more than 8.5%.\nOn the underwriting side, our current accident year combined ratio, excluding catastrophes, was 87.5% for the quarter compared with 90.2% for the prior year quarter.\nOn the investment front, net investment income increased 96.9% to $168 million, driven by strong results in investment funds.\nOur duration remains flat at 2.4 years, while maintaining a high credit quality of AA minus.\nPre-tax net investment gains in the quarter of $24 million is primarily comprised of realized gains on investments of $39 million, a reduction in unrealized gains on equity securities of $18 million, and a decrease in the allowance for expected credit losses of $3 million.\nThe realized gain was largely driven by the sale of two real estate properties, which also resulted in the reduction in our debt that was supporting one of the real estate properties of approximately $102 million.\nCorporate expenses increased approximately $13 million due to debt extinguishment costs of $8 million relating to the redemption of hybrid securities on June 1st, and higher incentive compensation costs as well.\nStockholders' equity increased by $164 million to approximately $6.6 billion in the quarter after regular and special dividends of $112 million.\nBook value per share increased 2.5% in the quarter and book value per share before dividends increased 4.3%.\nAnd finally, cash flow from operations continue to be strong with approximately $700 million on a year-to-date basis.\nRich walked you through the top line, obviously, the 27% growth plus is pretty healthy.\nIf you unpack the 27% growth overall, give or take about a third of it is coming from rate, the balance of it is coming from exposure as you would have gathered from the rate increase coming in ex-comp at just shy of 10%.\nOn the expense front, coming in at a 28.7% from our perspective is a pretty good place with opportunity to improve from here.\nCertainly some if not all of the approximately 50 basis point benefit that we've been getting as far as expenses due to COVID, that is likely to erode and disappear.\nLoss ratio pretty good at a 61%.\nThe ex-cat accident year, as Rich mentioned, was a 58.8% [Phonetic].\nAnother data point on the loss ratio front, the paid loss ratio came in at a very attractive 44.3 [Phonetic].\nAgain, Rich, commented on the duration of the 2.4 years, the book yield is running coincidentally at about 2.4 as well.\nBut even if you saw inflation return to 2.5% or 3% level, we continue to believe that a 10-year at 130 [Phonetic] or less doesn't make a whole lot of sense for the long run.", "summaries": "The company reported net income of $237 million, or $1.27 per share.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Please turn to Page 3.\nThe Federal Reserve Bank cut rates 150 basis points in March, following the 75 basis points reduction in the second half of 2019.\nWe deployed a 100% digital client-friendly application and funds disbursement process for PPP loans.\nLoan production in the second quarter totaled more than $500 million.\nCustomer deposits increased $760 million.\nOur online loan deferral tool and call centers processed relief for more than 44,000 retail customers.\nAnd we secured $100,000 in Federal Home Loan Bank of New York grants to support local non-profit and small businesses in Puerto Rico and the US Virgin Islands.\nPlease turn to Page 4.\nOnline bill enrollment -- bill pay enrollments were up 12% as of March and 24% as of June.\nMobile banking users jumped 17% by the end of the second quarter from the beginning of the first.\nThe number of remote deposit capture users are up 68% from the end of March.\nIn another area of success for us, during the second quarter, we scheduled more than 18,000 COVID safe appointments with our customers through our online and mobile tool.\nPlease turn to Page 5.\nWe generated a total of $286 million in new loans.\nThis enabled us to help more than 4,000 small businesses save more than 50,000 jobs.\nLet's talk about our results on Page 6.\nWe reported earnings per share of $0.39, and $0.37 on a non-GAAP basis.\nTotal core revenues were $128 million.\nAs a result, we generated net interest income of $105 million with a net interest margin of 4.78%.\nBanking and wealth management revenues totaled $23 million.\nNon-interest expenses were $86 million, primarily due to the addition of the Scotiabank acquisition.\n$9.5 million in revenues from Scotia Bank interest recoveries and bargain purchase gain.\nWe added $5 million in provision for the pandemic.\nAnd within non-interest expenses, we had a $5 million in merger and restructuring charges and COVID-related operating costs.\nPlease turn to Page 7.\nPlease turn to Page 8 for operational highlights.\nAverage loan balances increased 52% year-over-year and 2% quarter-over-quarter.\nAverage core deposits, excluding brokered, increased 76% year-over-year and 5% quarter-over-quarter.\nLoan yield at 6.97% continued to hold up well despite the recent Federal Reserve cuts.\nThe cost of core deposits declined 4% -- 4 basis points year-over-year.\nNet interest margin declined to 4.78%.\nPlease turn to Page 9 to review credit quality.\nProvision for credit losses of $18 million was level with last year.\nI'd like to note the year-ago provision included an extra $9 million related to loans transferred to held for sale.\nPlease turn to Page 10 to review our loan deferrals.\nOur online loan deferral tool and call centers processed relief for more than 44,000 retail customers.\nIn total, we have about $1.4 billion or 32% of our retail loans on deferral.\nIn addition, we have about $685 million or 26% of our commercial loans on deferral.\nPlease turn to Page 11.\nThe allowance for loan and lease losses of $233 million increased $70 million year-over-year.\nCompared to March 31, 2020, the allowance increased $2 million.\nExcluding SBA guaranteed PPP loans, second quarter 2020 allowance was 3.49% of loans, 8 basis points higher than the first quarter.\nPlease turn to Page 12.\nOur CET capital ratio, as you see on that slide, of 12.03% is up 112 basis points since last year.\nPlease turn to Page 13.\nWe plan to continue integrating the former Scotiabank operations and finish by the end of this year.", "summaries": "We reported earnings per share of $0.39, and $0.37 on a non-GAAP basis.\nCompared to March 31, 2020, the allowance increased $2 million.\nWe plan to continue integrating the former Scotiabank operations and finish by the end of this year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1"}
{"doc": "We reported fourth quarter fiscal 2021 adjusted earnings of $1.30 per diluted share, a 17% increase over the fourth quarter of last year.\nWe have a full suite of DOCSIS 3.1 gateway products that help the MSOs deploy their wireless networks much faster at a lower total cost.\nIf all sites currently identified are deployed, the opportunity is well in excess of $50 million.\nOur transportation business is performing well as the OEM Class 8 vehicle market recovers.\nOur launch real estate partner has identified over $1 billion of multi-year revenue opportunity starting early calendar year ''22 if we hit the reasonable cost and performance targets.\nThe factors leading to this 5G growth include T-Mobile's acceleration postpaid [Phonetic], universal and competitive 5G deployments for all carriers, including AT&T, which is expected to spend $24 billion a year on its network.\nThis gives entry into the marketplace with an FCC requirement to deploy 70% of the U.S. population by June 2023.\nAnd finally, government spending or government sponsored rural fiber broadband initiatives being rolled out at the federal and state levels throughout the U.S. There are some potential hurdles that could slow the ramp-up, including the success of the C-band auction completed in February for more than $81 billion, which could limit some carriers financial resources to deploy it.\nIn addition, the Biden administration has proposed nearly $2 trillion dollar bill, which includes upgrades to traditional infrastructure like U.S. highways and bridges, and we'll also made significant investments in non-traditional areas that should benefit EnerSys directly, such as the electric grid, EV charging and high-speed broadband.\nOur fourth quarter net sales increased 4% over the prior year to $814 million due to a 4% increase from volume and 2% from currency gains net of the 2% decrease in pricing.\nOn a line of business basis, our fourth quarter net sales in Energy Systems were up 11% to $349 million and Specialty was up 16% to $132 million, while Motive Power revenues were down 6% to $333 million.\nMotive Power suffered an 8% decline in volume along with a 1% decrease in pricing, net of a 3% increase in FX.\nEnergy Systems had a 12% increase from volume and a 2% improvement from currency net of a 3% decrease in pricing.\nSpecialty had 16% in volume improvements along with 2% offsetting impacts from positive currency and lower pricing.\nOn a geographical basis, our net sales for the Americas were up 4% year-over-year to $557 million, with a 6% more volume and 2% less pricing.\nEMEA was up 2% to $203 million despite 3% volume and pricing declines due to an 8% improvement in currency.\nWhile Asia was up 19% at $55 million on 9% volume and 10% currency improvements.\nOn a sequential basis, fourth quarter net sales were up 8% compared to the third quarter, driven by 9% volume improvements, net of a 1% price decline.\nOn a line of business basis, Specialty increased 21% with our TPPL continuing to provide more capacity for transportation sales, while Motive Power was up 9% as rebounds from the pandemic and Energy Systems was up 3%.\nOn a year-over-year basis, adjusted consolidated operating earnings in the fourth quarter increased approximately $7 million to $78 million, with the operating margin up 50 basis points.\nOn a sequential basis, our fourth quarter operating earnings dollars were flat at $78 million, while our OE margin dropped 80 basis points to 9.6%, primarily due to Energy Systems results, which I will address shortly.\nOperating expenses when excluding highlighted items were at 14.6% of sales for the quarter compared to 16.4% in the prior year as we reduced our spending by $9 million year-over-year and by 10 basis points sequentially.\nExcluded from operating expenses recorded on a GAAP basis in Q4 are pre-tax charges of $27 million, primarily related to $6 million in Alpha and NorthStar amortization, and $21 million in restructuring charges for the previously announced closure of our flooded Motive Power factory in Hagen, Germany.\nExcluding those highlighted charges, our Motive Power business generated operating earnings of 15.6% or 300 basis points higher than the 12.6% in the fourth quarter of last year, due primarily to improvements in manufacturing costs and lower operating expenses.\nOE dollars for Motive Power increased over $7 million from the prior year.\nOn a sequential basis, Motive Power's fourth quarter OE decreased 230 basis points from the 13.3 -- excuse me, increased 230 basis points from the 13.3% margin posted in the third quarter, again due primarily to improved manufacturing and operating costs along with better price mix.\nEnergy Systems operating earnings percentage of 2.6% was down from last year's 4.1% and from last quarter's 7.4%.\nOE dollars decreased $4 million from the prior year and decreased $16 million from the prior quarter despite slightly higher volume on lower margins and higher input costs.\nSpecialty operating earnings percentage of 13.2% was up from last year's 11.7% and up from last quarter's 11.9%.\nOE dollars increased over $4 million from both the prior year and prior quarter on higher volume and lower operating expenses.\nAs previously reflected on Slide 12, our fourth quarter adjusted consolidated operating earnings of $78 million was a increase of $7 million or 10% from the prior year.\nOur adjusted consolidated net earnings of $56.5 million was $9 million higher than the prior year.\nOur adjusted effective income tax rate of 19% for the fourth quarter was slightly higher than the prior year's rate of 18% and higher than the prior quarter's rate of 17%.\nFiscal 2021 tax rate of 18% was consistent with that of the prior year.\nFourth quarter earnings per share increased 17% to $1.30, which was near the top of our guidance range.\nWe expect our weighted average shares for the first fiscal quarter of 2022 to remain relatively constant to be approximate $43.5 million of the fourth quarter.\nAs a reminder, we now have over $75 million of share buybacks authorized and we have made modest purchases recently.\nWe have included our year-to-date results on Slides 14 and 15 for your information, but I do not intend to cover these details.\nWe have $452 million of cash on hand and our credit agreements leverage ratio was 1.7 times, which allows over $600 million in additional borrowing capacity.\nWe expect our leverage to remain below 2.0 times in fiscal 2022.\nWe generated a record $288 million of free cash flow in fiscal 2021.\nCapital expenditures of $70 million were in line with our prior guidance.\nOur capex expectation for fiscal 2022 is $100 million and reflects major investment programs in lithium, battery development, and continued expansion of our TPPL capacity, including the NorthStar integration.\nThe expected $20 million in annual savings are starting to be felt already with the full benefit arriving by our fourth fiscal quarter of this year.\nWe anticipate our gross profit rate to remain near 24% in Q1 of fiscal 2022, and we expect expanding margins thereafter.\nDespite some concerns over the potential for late arising shortages, we feel we have enough visibility to provide guidance in the range of $1.15 to $1.25 in our first fiscal quarter of year 2022.", "summaries": "We reported fourth quarter fiscal 2021 adjusted earnings of $1.30 per diluted share, a 17% increase over the fourth quarter of last year.\nFourth quarter earnings per share increased 17% to $1.30, which was near the top of our guidance range.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Through the end of March, we collected about 97% of our March billings, which was in line with what we experienced before COVID-19.\nFor April billings, as of April 22, we have collected about 93%, which includes Pier 1.\nBecause we're in the early phases of experiencing the economic impact of COVID-19, it's prudent to include in our updated guidance an additional $1 million of reserves for bad debt, which Scott will walk through shortly.\nMoving now to rent relief requests from our tenants, including those requests from clearly well capitalized tenants, total requests for rent relief in the form of rent deferral or abatement represented approximately 19% of our April billings.\nExcluding the well capitalized tenants and only including tenants that ask for specific terms, this represents 8% of our April billings, of which approximately 85% have paid April rent.\nThis subset occupies an average of 48,000 square feet and represent a broad range of industries.\nIn our portfolio, as of April 22, we have signed 72% of our 2020 lease expirations, which is consistent with our experience in the past several years.\nThese signings have a cash rental rate increase of 8.4%.\nMoving to dispositions, we closed on $13 million of sales in addition to the Tampa portfolio we closed in early February.\nThrough today, we've closed on $40 million of sales this year, on our way to meeting our 2020 sales guidance range of $125 million to $175 million.\nNote that our sales guidance excludes the expected $55 million Phoenix sale in the third quarter, in which the tenant exercised its purchase option in 2019.\nWe are proceeding with all of our developments in process, which totaled 1.5 million square feet and a total investment of $154 million at March 31.\nOf this group, only our 100,000 square foot Philadelphia development has been halted entirely due to statewide restrictions on construction deemed non-essential, although those restrictions will be lifted as of May 8, subject to forthcoming guidelines.\nAs a result of these delays, you will see in our supplemental Page 22 that we've adjusted some of our estimated completion dates accordingly.\nIn February, we were pleased to acquire Nottingham Ridge Logistics Center, a two-building development forward totaling 751,000 square feet in the Greater Baltimore industrial market, where the submarket vacancy is under 4%.\nThe park has I-95 frontage and is located just 12 miles north of the Port of Baltimore at the intersection of Route 43.\nToday, it is 15% pre-leased, and we are seeing good interest on the remainder of the space.\nOur total investment is estimated to be $82 million with an expected cash yield of 5.7%.\nIn the first quarter and second quarter to date, we also completed the acquisition of two buildings in the East Bay market of Northern California for a total purchase price of $14 [Phonetic] million at a weighted average yield of 5.2%.\nThe first property is a 39,000 square footer in Fremont, and the other is a 23,000 square foot building in Hayward.\nBoth are in the I-880 corridor.\nThe buildings are 58% occupied.\nWe also acquired a 24,000 square foot building in Los Angeles in the South Bay that we plan to redevelop.\nThe purchase price was $14.4 million.\nIn the first quarter, in addition to the First Park Miami land, we also acquired a 9-acre site in Southern California in the Inland Empire East for $2 million that is developable to 189,000 square feet.\nOn the development front, we placed in service our Ferrero build-to-suit development at PV303 totaling 644,000 square feet with a total investment of $53 million and a stabilized yield of 7.9%.\nDiluted earnings per share was $0.32 versus $0.19 one year ago.\nNAREIT funds from operations were $0.45 per fully diluted share compared to $0.41 per share in 1Q 2019.\nThis was offset by income related to the final settlement of one of our two outstanding insurance claims for damaged properties that we previously disclosed.\nExcluding these items, FFO remains unchanged at $0.45 per share.\nFirst quarter FFO also includes an approximately $800,000 non-cash write-off of a deferred rent receivable related to our lease with Pier 1 in Baltimore.\nWe now -- we are now assuming Pier 1 will pay rent through June and vacate the building, the impact of which I will walk through shortly when I discuss our revised 2020 FFO and portfolio guidance.\nOur occupancy was strong at 97.1%, down 50 basis points from the prior quarter and down 20 basis points from a year ago.\nAs for leasing volume during the quarter, we commenced approximately 2.6 million square feet of leases.\n459,000 square feet were new, 1.3 million were renewals, and 925,000 square feet were for developments and acquisitions with lease-up.\nTenant retention by square footage was 68.9%.\nSame-store NOI growth on a cash basis, excluding termination fees, was 8.4%.\nCash rental rates were up 10.8% overall with renewals up 8.9% and new leasing 16.1%.\nAnd on a straight-line basis, overall rental rates were up 26.5%, with renewals increasing 27.\n1% and new leasing up 24.8%.\nNow, moving on to the balance sheet, at March 31, our net debt plus preferred stock to EBITDA was 5.2 times.\nToday, we have approximately $70 million of cash and $400 million of availability on our line of credit, for total liquidity of $470 million.\nIn 2020, we recently paid off a $15 million mortgage loan and have no other debt maturities in the remainder of the year.\nFirst, we have a $200 million term loan that matures in January at an interest rate of 3.39% with a handful of banks with which we have relationships spanning many years.\nLastly, in 2021, we have $63 million of mortgage debt coming due in October that we can pay off using the availability in our line of credit if the debt capital markets are cooperative.\nOn uses of capital, we anticipate development spend of approximately $100 million for the remainder of 2020 and $35 million for 2021 for a total of $135 million.\nThese capital needs will be funded with property sales and excess cash flow after payment of our dividend, given our AFFO payout ratio, as calculated in our supplemental, of 66%, which is one of the lowest in the REIT world.\nOur NAREIT FFO and FFO before one-times item guidance are both $1.73 to $1.83 per share with a midpoint of $1.78.\nThis is a $0.05 per share decrease compared to the midpoint of our FFO before one-times items guidance we discussed on our fourth quarter earnings call, primarily due to a decrease in forecasted NOI due to the following.\nWe are now assuming that Pier 1 pays rent through June 30 and vacates.\nThis, plus the impact of the write-off of the non-cash deferred rent receivable, is about $0.02 per share.\nWe have also reduced our assumption for average quarter-end occupancy by 100 basis points to a midpoint of 96.5%.\nThis reflects the pushback of our leasing including Pier 1, as I just discussed, and the lease-up of our remaining vacancies to the fourth quarter at First Joliet in Chicago and Building B of First Logistics Center at 78/81 in Pennsylvania.\nExcluding the FFO impact of Pier 1, this change in leasing assumption represents an additional $0.02 per share.\nLastly, we are increasing our bad debt expense assumption from $500,000 per quarter to $900,000 per quarter for the remainder of the year, which is $0.01 a share.\nIncluding the $300,000 of bad debt expense we recognized in the first quarter, our bad debt expense assumption for 2020 is now $3 million, an increase of $1 million from our prior guidance.\nOther key assumptions for guidance are as follows: same-store NOI growth on a cash basis before termination fees of 2.75% to 4.25%, a decrease of 125 basis points at the midpoint due to our updated occupancy and bad debt assumptions.\nOur G&A guidance remains at $31 million to $32 million.\nIn total, for the full year of 2020, we expect to capitalize about $0.04 per share of interest related to our developments.", "summaries": "NAREIT funds from operations were $0.45 per fully diluted share compared to $0.41 per share in 1Q 2019.\nThis was offset by income related to the final settlement of one of our two outstanding insurance claims for damaged properties that we previously disclosed.\nExcluding these items, FFO remains unchanged at $0.45 per share.\nOur NAREIT FFO and FFO before one-times item guidance are both $1.73 to $1.83 per share with a midpoint of $1.78.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our PG&A business grew nearly 50% during the quarter, with all segments and categories up significantly year over year.\nAnd our international business was also strong, with sales increasing 59% as countries impacted by the pandemic slowly began to reopen.\nFirst-quarter North American retail sales were up a robust 70%, continuing the unprecedented levels of growth.\nWe continue to see an expanding customer base, with new customers growing 70% in Q1.\nAnd the continued growth in sales to our existing owners, which increased an impressive 40% year over year, reinforces our confidence that these customers will return.\nAs I indicated earlier, our ORV business gained over 4 percentage points of market share in the first quarter.\nBoth Indian and Slingshot's first-quarter retail was strong as well, collectively finishing up over 70% and market share increased about 3 percentage points.\nSnowmobile sales were strong as well, with retail up low 20% range for the first quarter.\nWhile our Snowmobile business is one of our smaller product lines today, it is where we started over 66 years ago in Northern Minnesota.\nThe North American snowmobile industry concluded its strongest season in over a decade, with industry retail up approximately 16%.\nPolaris retail eclipsed the market, growing in the mid-20% range, resulting in market share gains of over two points for the season, the best share position in 16 years.\nDuring the 2020, 2021 selling season, new customers represented over 60% of the sales growth, nearly double the rate from the prior season ending March 2020.\nAttendance was up almost 80% compared to 2020.\nDuring the meeting, we introduced 22 new snowmobiles on the revolutionary Rider-First Matryx Platform, which delivers industry-leading ride and handling, both on and off trail.\nThis new engine uses proprietary SmartBoost technology for unrivaled combustion stability, enabling 10% more power at sea level and 50% more power at 10,000 feet than our current 850 Patriot engine.\nInventory levels declined further on a sequential basis and were down 71% year over year, with ORV realizing the most significant decline.\nBy the end of the year, we expect to be almost halfway to our goal of approximately $200 million of gross savings.\nFirst-quarter sales were up 39% on a GAAP and adjusted basis versus the prior year.\nFirst-quarter earnings per share on a GAAP basis was $2.11.\nAdjusted earnings per share was $2.30, which was up significantly over last year's first quarter.\nAdjusted gross margins were up 352 basis points year over year primarily due to the lower promotional costs driven by the strong retail demand and lower floor-plan financing costs as a result of the low dealer inventory levels.\nOperating expenses as a percentage of sales were down 584 basis points as we realized leverage from the strong sales growth and the timing of some R&D expenses and stock-based compensation costs being delayed into the coming quarters.\nIncome from financial services declined 18% during the quarter as income from the Polaris Acceptance joint venture, which dealers use to finance their inventory, continue to be down due to the lower level of inventory in the channel.\nORV & Snowmobiles increased 50%.\nglobal adjacent markets was up 27%.\nAnd boats increased 29% for the quarter.\nInternational sales were up 59% during the quarter.\nAbout 10 points of the growth came from improved currency rates.\nAnd our parts, garments and accessories sales increased 49% during the quarter.\nMoving on to our revised guidance for 2021.\nGiven the stronger-than-anticipated performance in the first quarter, we have increased our total company sales growth guidance and now expect sales to increase in the 18% to 21% range for the year, up from the 13% to 16% we guided in January.\nWe are also increasing our full-year adjusted earnings per share guidance for 2021 and now expect earnings to be in the range of $9 to $9.25 per diluted share.\nWe now anticipate that gross profit margins will be down 60 to 90 basis points, primarily driven by ongoing negative product mix we saw in the first quarter, along with increased logistics and manufacturing inefficiencies due to the high level of rework in our factories.\nWhile our gross profit margins are expected to be down for the year, as I stated on our last earnings call, if you exclude the impact of tariffs and supply chain disruptions, our gross profit margin rate would be up over 200 basis points compared to last year.\nAdjusted operating expenses are now expected to improve 80 to 100 basis points as a percentage of sales as sales growth outpaces operating expense growth.\nWe expect operating expenses in each of the remaining three quarters to be approximately 10% to 15% above Q1 given the timing of spending.\nFirst-quarter operating cash flow finished at $56 million compared to a negative $71 million in the first quarter of last year.\nOur bank leverage ratio improved sequentially to approximately 1.3 times as our debt levels continue to decline as anticipated.\nDuring the first quarter, we spent almost $300 million on share repurchases.\nOf the $300 million spent, $130 million was generated from the exercise of options.\nOur expectations for capital expenditures of approximately $250 million remain unchanged.\nAnd on January 28, the board of directors approved a 2% increase in the regular quarterly cash dividend, which is the 26th consecutive year of Polaris increasing its dividend.", "summaries": "First-quarter North American retail sales were up a robust 70%, continuing the unprecedented levels of growth.\nWe continue to see an expanding customer base, with new customers growing 70% in Q1.\nBoth Indian and Slingshot's first-quarter retail was strong as well, collectively finishing up over 70% and market share increased about 3 percentage points.\nFirst-quarter sales were up 39% on a GAAP and adjusted basis versus the prior year.\nFirst-quarter earnings per share on a GAAP basis was $2.11.\nAdjusted earnings per share was $2.30, which was up significantly over last year's first quarter.\nMoving on to our revised guidance for 2021.\nGiven the stronger-than-anticipated performance in the first quarter, we have increased our total company sales growth guidance and now expect sales to increase in the 18% to 21% range for the year, up from the 13% to 16% we guided in January.\nWe are also increasing our full-year adjusted earnings per share guidance for 2021 and now expect earnings to be in the range of $9 to $9.25 per diluted share.", "labels": "0\n0\n1\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We reported NFE of $0.46 per share, driven by the performance of our core business, New Jersey Natural Gas.\nWe are also reaffirming our NFE guidance for fiscal 2021 of $1.55 to $1.65 per share and increasing our fiscal 2022 NFE guidance to $2.20 to $2.30 per share, an increase of $0.15 per share from prior guidance.\nAt New Jersey Natural Gas, we completed almost 90% of the Southern Reliability Link and expect to place the project into service this year.\nWe received approval to move forward with our infrastructure Investment Program, a 5-year, $150 million accelerated recovery program that will improve the resiliency and reliability of our natural gas infrastructure.\nAt Clean Energy Ventures, we acquired the 2.9 megawatt Mt. Laurel Solar Facility, which is part of our plan to invest $165 million this year.\nAnd at NJR Energy Services we entered into an asset management agreements, which will result in contracted cash proceeds of $501 million over a 10-year period.\nUnder the terms of the agreements, NJRES will receive payments of $261 million over the first three years of the AMAs.\nAfter FY 2024, NJRES will receive additional payments of approximately $34 million per year through 2031.\nThese transactions also allow us to increase our fiscal 2022 guidance by $0.15 per share, as we'll see on the next slide.\nTurning to our NFE guidance for fiscal 2022 on slide five, we are increasing our overall guidance to a range of $2.20 to $2.30 per share.\nHowever, our long term annual growth rate of 6% to 10% remains based off our originally communicated guidance of $2.05 to $2.15 per share, which excludes the impact of the AMAs and any other contribution from Energy Services.\nLooking at the top left, we invested $89 million in New Jersey Natural Gas during the first quarter, with about 1/3 of the capex providing near real-time returns.\nDespite the ongoing COVID-19 pandemic, we added over 1,900 new customers, only slightly below the customer additions from the same period a year ago, which was pre-pandemic.\nConstruction on the Southern Reliability Link continues to progress, and we now have almost 90% of the project complete with an in-service date expected this year.\nWe added 2.9 megawatts of capacity this quarter.\nAnd as you can see on the top right, we now have 360 megawatts of installed capacity.\nWe have a strong project pipeline with about $260 million worth of investments, either under contract or exclusivity that are targeted for commercial operation in fiscal 2021 and 2022.\nTotal invested capital at CEV this quarter was $23 million with $17 million of commercial projects and $6 million at Sunlight Advantage.\nLast quarter, we announced that NJR achieved our goal of reducing our New Jersey operational emissions by 50% of 2006 levels, well ahead of schedule.\nAnd we set a new higher target of 60% reduction by 2030.\nOur new target ensures our company's goals are aligned with the state's 2050 statutory goals for emissions reduction.\nReported NFE of $44.7 million or $0.46 per share compared to NFE of $34.9 million or $0.38 per share in the first quarter of fiscal 2020.\nNew Jersey Natural Gas saw an NFE improvement of $5.6 million due primarily to a full quarter of higher base rates from NJNG's fiscal 2020 rate case settlement as compared to a partial quarter a year ago.\nCEV was down $2, primarily due to increased O&M expenses related to project maintenance costs, especially with new projects placed in service, which is partially offset by a decrease in depreciation expense.\nEnergy services improved $6.6 million, primarily due to higher financial margin compared to last year, due to increased natural gas pricing spreads.\nAs Steve mentioned, we reaffirmed our NFE guidance of $1.55 to $1.65 per share for fiscal 2021.\nOn slide 11, you can see the segment contributions with our core businesses, NJNG and CEV, accounting for 80% of total NFE.\nFor NJNG, we expect to recognize approximately 70% of our utility gross margin in the first half of the year, in line with our historical trends.\nEnergy year 2023, we increased our hedge level to 75%.\nComparing year 2024, market fundamentals and pricing remained strong with SREC trading at over 85% of SACP.\nAnd we now have 49% of our 2024 volumes hedged.\nWith the disproportionate amount of revenue signed to the permanent releases that occur in fiscal years 2024 and 2032.\nAs you can see on slide 14, we now expect our cash flows from operations to grow the CAGR of approximately 25% from fiscal 2020 to 2024 compared to our previous estimate of 20%.\nAnd as you can see from the chart on the right, the strength of our cash flows implies that our dividends are expected to become a smaller percentage, supporting our long term dividend growth rate of 6% to 10%.\nAnd when you have the positive impact of the AMAs, our metrics are expected to increase to the high teens in fiscal 2022, and reach about 20% by fiscal 2024.\nAt that time, we issued 5.3 million shares, and we entered into an equity forward to issue an additional 1.2 million shares at a later date, which we no longer need to do.\nWe increased our fiscal 2022 NFEPS guidance by $0.15 per share, and we expect strong cash flow to support our dividend growth.", "summaries": "We are also reaffirming our NFE guidance for fiscal 2021 of $1.55 to $1.65 per share and increasing our fiscal 2022 NFE guidance to $2.20 to $2.30 per share, an increase of $0.15 per share from prior guidance.\nReported NFE of $44.7 million or $0.46 per share compared to NFE of $34.9 million or $0.38 per share in the first quarter of fiscal 2020.\nAs Steve mentioned, we reaffirmed our NFE guidance of $1.55 to $1.65 per share for fiscal 2021.", "labels": 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{"doc": "Vaccination rates among patients and residents throughout the industry are high, generally in the 80% range with gradual increases expected.\nOver the last 25 weeks, SNF have seen occupancy rise in each week except one, when census remained flat.\nAdditionally, there is about $25 billion remaining for distribution to all healthcare providers in the Provider Relief Fund.\nEven so, I believe our industry is on more solid footing today than it has been over the last 18 months and I'm hopeful that some of the remaining pressures will begin to ease in the coming months.\nSecond quarter rent and mortgage interest income collections were 93.6% excluding Senior Lifestyle and Senior Care an 86.1% excluding just Senior Lifestyle, whose transition Clint will discuss in detail.\n19 of the buildings have been or shortly will be under new leases.\nWith respect to Senior Care Centers, bankruptcy proceedings are continuing with the next scheduled court date on August 11.\nIt has been LTC's practice to support a dividend payout ratio of approximately 80% of FAD.\nAs a result, of the financial support we have provided some of our operators and the significant senior lifestyle and senior care defaults our second quarter 2021 dividend payout ratio was 98%.\nTotal revenue increased $9.6 million compared with last year's second quarter resulting primarily from a $9.5 million increase in rental revenue, which was due to a $17.7 million write-off in last year's second quarter related to Senior Lifestyle straight-line rent and lease incentive balances.\nThe increase in revenue was partially offset by reduced rent from senior lifestyle net of rent received from releasing 11 properties in the portfolio defaulted Senior Care lease obligations, abated and deferred rent and a decrease in property tax revenue.\nInterest income increased $113000 from the prior year due to the funding of expansion and renovation projects offset by scheduled principal pay downs.\nInterest expense decreased by $686000 due to scheduled principal paydowns on our senior unsecured notes lower interest rates and a lower outstanding balance under our line of credit partially offset by lower capitalized interest in 2021.\nProperty tax expense decreased $311000 compared with last year's second quarter as a result of the timing of certain operators property tax escrow receipts and the payment of related taxes partially offset by completed development projects.\nG&A was $757,000 greater than last year due to the timing of accrual for incentive compensation salary increases and restricted stock vesting.\nIncome from unconsolidated joint ventures increased $376000 due to mezzanine loan fundings.\nDuring last year's second quarter, we recognized a loss on liquidation of unconsolidated joint ventures of $620000 related to the sale of the four properties comprising our unconsolidated real estate joint venture with an affiliate of senior lifestyle.\nDuring the second quarter of 2021, we recognized a net gain on sale of real estate of $5.5 million related to the sale of three properties in Wisconsin and a closed property in Nebraska all previously leased to Senior Lifestyle.\nThe lease has a five-year term and provides a purchase option for $5.5 million, which is exercisable after the first year of the lease.\nCash rents starting in the second year of the lease is $150,000 increasing to $300,000 in the third year and escalating 2% annually thereafter.\nNet income available to common shareholders for the second quarter of 2021, increased by $16.4 million primarily due to the senior lifestyle write-off in the prior year and the gain on sale of the three Wisconsin properties this year.\nNAREIT FFO per fully diluted share increased to $0.57 from $0.31 last year's excluding nonrecurring items related to last year's second quarter.\nFFO portfolio diluted share was $0.57 this quarter and $0.76 in the second quarter of 2020.\nDuring the 2021, second quarter we paid $41 million under our unsecured revolving line of credit.\nAdditionally, we maintained our $0.19 per share monthly dividend by paying our shareholders $22.4 million in common dividends during the quarter.\nSubsequent to the end of the second quarter we entered into lease agreements covering the remaining properties in the Senior Lifestyle portfolio which Clint, will discuss shortly and sold a skilled nursing center in Washington for $7.7 million.\nWe received proceeds totaling $7.2 million and expect to recognize a gain on sale of $2.6 million.\nAdditionally, we paid $25.2 million in regular scheduled principal payments under our senior unsecured notes and borrowed $19 million under our unsecured revolving line of credit at 1.2%.\nAt the end of the 2021 second quarter, our credit metrics remained strong with a debt-to-annualized adjusted EBITDA for real estate of 5.3 times.\nIn annualized adjusted fixed charge coverage ratio of 4.3 times and a debt to enterprise value of 29%.\nWe expect to see this 5.3 ratio come down as we receive more rent from assets formerly operated by Senior Lifestyle and eventually we expect to be able to collect rent from assets involved in the most recent senior care bankruptcy.\nAs Wendy mentioned excluding Senior Care and Senior Lifestyle, we collected 93.6% of second quarter rent and mortgage interest income.\nWe provided $1.1 million in rent deferrals and $1.1 million in rent abatements.\nWe applied the remaining $889,000 of the $2.1 million letter of credit to satisfy certain obligations owed under the master lease in the second quarter.\nAs of June 30, Senior Care's unaccrued outstanding rent balance was $3.1 million.\nIn July we provided rent deferrals totaling $366,000 and rent abatements of $323,000.\nWe have agreed to provide rent deferrals of up to $493,000 and abatements of up to $319,000 for each of August and September 2021.\nIn total the Senior Lifestyle portfolio included 23 properties, 12 of which were transitioned through April of this year.\nOf the remaining 11 properties, four were sold in the second quarter, three assisted living communities located in Wisconsin were sold for $35 million, which roughly approximates their combined gross book value.\nWe used the net proceeds of approximately $33.9 million to pay down our unsecured revolving line of credit.\nIn total, these properties included 263 units.\nThe fourth was a previously closed property sold for $900,000 for an alternative use.\nThe gross book value when we acquired it in 1997 was $2.5 million and the net book value was $1.1 million.\nCombined these communities include 168 units.\nthree properties in Nebraska with a combined 119 units will be operated by Oxford Senior Living, an existing LTC partner since 2012 as soon as licensure is received which we also expect in short order.\nThis community includes 101 unit and will be operated under a 10-year lease with three five year renewal terms.\nCash rent under the new lease is $920,000 in the first year $1.2 million in the second year $1.3 million in the third year then escalating 2% annually thereafter.\nAt June 30 occupancy was 36% up from 24% on March 31.\nAt June 30, occupancy rose nicely to 83% up from 64% on March 31.\nQ1 trailing 12 month EBITDARM and EBITDAR coverage as reported using a 5% management fee was 0.99 times and 0.8 times respectively for our assisted living portfolio.\nExcluding stimulus funds received by our operators, coverage was 0.85 times and 0.67 times respectively.\nExcluding Senior Lifestyle from our Assisted Living portfolio, as reported EBITDARM and EBITDAR coverages would increase to 1.03 times and 0.84 times respectively.\nExcluding both senior lifestyle and stimulus funds EBITDARM and EBITDAR coverages would be 0.9 times and 0.71 times respectively.\nFor our skilled nursing portfolio, as reported EBITDARM and EBITDAR coverage was 1.94 times and 1.49 times respectively.\nExcluding stimulus funds coverage was 1.44 times and 1.02 times respectively.\nExcluding Senior care from our skilled portfolio, as reported EBITDARM and EBITDAR coverages would increase to 1.98 times and 1.5 times respectively.\nExcluding both Senior Care and Stimulus Funds EBITDARM and EBITDAR coverages would be 1.52 times and 1.06 times respectively.\nBecause our partners have given this data to us on a voluntary and expedited basis, the information we are providing includes approximately 70% of our total private pay units and approximately 73% of our skilled nursing beds.\nPrivate pay occupancy was 74% at July 15 and June 30 and 72% at March 31.\nFor our skilled portfolio, which excludes Senior Care, average monthly occupancy through July 15 was 69% versus 68% in both June and March.\nIn total, our near-term pipeline is valued at about $130 million with additional medium to long-term opportunities totaling about another $90 million.", "summaries": "NAREIT FFO per fully diluted share increased to $0.57 from $0.31 last year's excluding nonrecurring items related to last year's second quarter.\nFFO portfolio diluted share was $0.57 this quarter and $0.76 in the second quarter of 2020.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "First, we delivered 20% total revenue growth and 39% recurring revenue growth in the third quarter.\nRecurring revenue represented 62% of total revenues in the quarter which is a significant increase from 53% one year ago.\nWe continue to make steady progress increasing our recurring revenue, which is consistent with our 80/60/20 goals.\nAs you know, the third quarter was the first full quarter of incorporating Cardtronics in our financial results as we closed on the transaction in late June and received the final regulatory approval on August 10 from the CMA in the U.K. Second, adjusted EBITDA increased 41%.\nThird, adjusted EBITDA margin expanded to 18.5%, which represents an increase of 280 basis points from the third quarter of 2020 and marks the highest level in four years.\nWe generated 125 million of free cash flow in the quarter.\nIn the third quarter, digital banking had 22 renewals, three new logo deals, and eight new product sales to existing clients, all positive drivers of growth.\nDuring the third quarter, digital banking grew 9% over the same period last year.\nWe had two major software-defined store commerce platform signings during the third quarter from large clients that have installed the NCR eCommerce platform validated the technology in a full rollout during 2021, both confirming their success with signing a five-year subscription agreements during the third quarter, these two, Pilot Flying J, the largest operator of travel centers in North America with 750 retail locations in 44 states; and Circle K, which operates more than 15,000 convenience stores in over 20 countries.\nDuring the quarter, we also signed 17 new contracts through our digital front-end app, Freshop.\nNCR realized a significant upgrade in our relationship with Buffalo Wild Wings, which is part of the Inspire Brands family, entering into a four-year contract to support Buffalo Wild Wings across 1,200 locations with subscription-based point-of-sale software, various cloud-based applications, and end-to-end managed services.\nIn the SMB market, the momentum of Aloha Essentials, which bundles payments, software, services, and hardware into a single offering, continued in the third quarter with a 102% increase in a Aloha Essentials sites over last year's same quarter.\nWe increased the number of restaurant payment processing sites by 27% from the second quarter, as well as upselling existing customers to our payments platform.\nStarting on the top left, revenue was $1.9 billion, up $312 million or 20% versus the 2020 third quarter, driven by strong growth in both our banking and hospitality segments.\nNormalizing for the inclusion of Cardtronics, pro forma revenue was up 3% year over year.\nWith the inclusion of the full quarter of Cardtronics revenue, which has a preponderance of recurring revenue, our aggregate result was up 39% and comprised 62% of revenue in the quarter.\nOn a pro forma basis, recurring revenue was up 7% year over year.\nIn the top right, adjusted EBITDA increased $103 million or 41% year over year to $352 million.\nAdjusted EBITDA margin rate expanded 280 basis points to 18.5%, representing a high watermark for the previous four years.\nIn the bottom left, non-GAAP earnings per share was $0.69, up $0.15 or 28% from the prior-year third quarter.\nThe Cardtronics transaction remains on track to be 20 to 25% accretive to earnings per share within the first full year.\nThe tax rate was 28.5%, and we now expect the full-year tax rate to be 28%.\nAnd finally, and maybe most importantly, we delivered another strong quarter of free cash flow with generation of $125 million.\nThis compares to $160 million in the third quarter of 2020, which benefited from pandemic-related temporal cash preservation actions and the timing of an insurance settlement.\nBanking revenue increased $273 million or 35% year over year, driven by increases in software and services revenues that more than offset the decline in ATM hardware revenue.\nBanking adjusted EBITDA increased $98 million or 68% year over year.\nAdjusted EBITDA margin rate expanded by 450 basis points to 23%.\nOn the left, while current quarter wins have a typical lag to conversion and eventual revenue generation, prior period wins at digital banking drove a 9% year-over-year growth rate in the third quarter.\nDigital banking registered users also increased 9% compared to Q3 of 2020.\nThe shift to recurring revenue continues to gain traction, with recurring revenue up 71% year over year and 7% on a pro forma basis.\nCash transactions on our ATMs in the U.S. were up 12% compared to the third quarter of 2020.\nLooking at SCO revenue, which is approximately 50% hardware, as we called out in Q2, we posted a very strong Q2 growth rate due to a customer request to accelerate a $30 million self-checkout order into Q2 from the second half of the year.\nWe expect a strong Q4 for self-checkout that will result in full-year 2021 growth of more than 10%.\nThe nature of these contracts shifts roughly $30 million of very high profit revenue that would have previously occurred is upfront software license to revenue that now recurs over the next several years.\nConsidering those two retiming impacts, retail revenue declined $3 million or 1% year over year due to the lower hardware revenue and the shift to recurring revenue, partially offset by growth in software and services.\nAnd similarly, retail adjusted EBITDA declined $11 million or 14% year over year, while adjusted EBITDA margin rate contracted 190 basis points to 12.7%.\nRecurring revenue in this business increased 4% versus the third quarter of last year.\nHospitality revenue increased $50 million or 29% as restaurants reopen, rework existing locations, and expand.\nOur signed subscription total contract value in this business increased 46% from the year-ago third quarter.\nSecond quarter adjusted EBITDA increased to $35 million, up 46% from the third quarter of 2020, while adjusted EBITDA margin rate expanded 180 basis points to 15.7%.\nAloha Essentials sites more than doubled when compared to the prior year third quarter and grew 30% sequentially.\nAnd in the graph on the bottom right, recurring revenue increased 19% from last year and 7% sequentially.\nTurning to Slide 10, we provide our second-quarter results for our 80/60/20 strategic targets.\nFirst, we strive to generate 80% of our revenue from software and services or less than 20% of our revenue from discrete hardware sales.\nIn the third quarter, software and services represented 76% of our revenue, which is up from 71% in the year-ago quarter.\nStepping down the page, we aim for 60% of our revenues to be recurring to drive more resilient, more predictable, and more valuable revenue.\nWith the addition of Cardtronics, we have now exceeded our goal with recurring revenue representing 62% of the total, up from 53% in last year's third quarter.\nAnd we aspire to a 20% adjusted EBITDA margin rate.\nWe made significant progress in this quarter with an adjusted EBITDA margin of 18.5% compared to 15.7% in the third quarter of 2020.\nWe generated total free cash flow of $125 million.\nThis provided a onetime $274 million benefit to operating cash flows.\nWe use that cash, along with our strong Q3 free cash flow, to redeem our highest coupon debt to $400 million of 8% bonds.\nTaken all together, all of these efforts have reduced our average borrowing rate to 4.15%.\nThis slide also shows our net debt to adjusted EBITDA metric with a pro forma leverage ratio of 3.8 times.\nWhen we announced the Cardtronics transaction, we estimated that our pro forma leverage would be about 4.5 times with a commitment to delever below 3.5 by the end of 2022.\nWe ended the third quarter with $383 million of cash and remain well within our debt covenants, which include a maximum pro forma leverage ratio of 5.5x.\nWe also have significant liquidity with about $1 billion available under our revolving credit facility.\nFinally, about 90 days ago, we provided guidance for the first time since the beginning of the pandemic to help you bridge your modeling efforts to an NCR that was inclusive of the Cardtronics acquisition.\nWhile we expect a 20% sequential increase in hardware revenue in Q4 and anticipate continued excess demand for both self-checkout and point of sale and some recovery from price increases on hardware, supply chain constraints will likely cause us to carry some backlog into 2022.", "summaries": "Starting on the top left, revenue was $1.9 billion, up $312 million or 20% versus the 2020 third quarter, driven by strong growth in both our banking and hospitality segments.\nIn the bottom left, non-GAAP earnings per share was $0.69, up $0.15 or 28% from the prior-year third quarter.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Turning now to the numbers where consolidated net sales for the quarter were $279 million compared to $286 million last year.\nConsolidated operating income for the quarter was $27.8 million compared to $32.3 million last year.\nConsolidated adjusted EBITDA for the quarter was $41.2 million compared to $43.9 million last year.\nThat translates to a margin of 14.8% in Q1 this year compared to 15.3% last year.\nNet income for the quarter was $22.2 million compared to $23.4 million last year.\nThat equates to GAAP earnings per share for the quarter of $0.36 per share compared to $0.38 per share last year.\nOn an adjusted basis, earnings per share for the quarter was $0.38 per share, compared to $0.39 per share last year.\nOrder intake for the quarter was outstanding with orders of $384 million represent -- representing our highest quarterly orders on record and an increase of $80 million or 26% compared to Q1 last year.\nConsolidated backlog at the end of the quarter also set a new company record at $410 million that represents an increase of $9 million compared to Q1 last year and an increase of $106 million or 35% from the end of 2020.\nIn terms of our group results, ESG net sales for the quarter were $228 million compared to $233 million last year.\nESG's operating income for the quarter was $27.1 million compared to $29.4 million last year.\nESG's adjusted EBITDA for the quarter was $39.3 million compared to $40 million in the prior year.\nThat translates to an adjusted EBITDA margin of 17.2% in line with last year.\nEFC reported orders of $324 million in Q1 this year, an improvement of $87 million or 37% compared to last year.\nSSG's net sales for the quarter were $51 million this year compared to $53 million last year.\nOperating income for the quarter was $7.2 million dollars compared to $7.4 million last year.\nSSG's adjusted EBITDA for the quarter was consistent with the prior year at around $8.2 million while its adjusted EBITDA margin for the quarter improved to 16.2% of 80 basis points from Q1 last year.\nSSG's orders for the quarter was $60 million compared to $66 million last year.\nCorporate operating expenses for the quarter was $6.5 million, up from $4.5 million last year.\nThe increase was primarily due to an unfavorable year-over-year variance of $2.6 million associated with changes in mark-to-market adjustments of post-retirement reserves.\nThese market based adjustments benefited our earnings in Q1 last year by approximately $0.02 per share but were unfavorable in Q1 this year.\nTurning now to the consolidated income statement where the decrease in sales contributed to a $6 million reduction in gross profit.\nConsolidated gross margin for the quarter was 24.7% compared to 26.1% last year.\nAs a percentage of sales, our selling, engineering, general and administrative expenses for the quarter were down 20 basis points from Q1 last year, despite the unfavorable mark-to-market variance I just mentioned.\nOther items affecting the quarterly results include a $700,000 increase in other income and a $400,000 decrease in interest expense.\nTax expense for the quarter was down $2.2 million dollars, largely due to lower pre-tax income levels and higher excess tax benefits from stock compensation activity.\nOur effective tax rate for the quarter with 18.4% compared to 23.5% last year.\nAt this time, we continue to expect our full year effective tax rate to be approximately 24%.\nOn an overall GAAP basis, we therefore earned $0.36 per share in Q1 this year compared with $0.38 per share in Q1 last year.\nOn this basis, our adjusted earnings for the quarter were $0.38 per share compared with $0.39 per share last year.\nLooking now at cash flow where we generated $26 million of cash from operations during the quarter, an improvement of $21 million over Q1 last year.\nWe ended the quarter with $168 million of net debt and availability under our credit facility of $270 million.\nOur current net debt leverage ratio remains low even after funding the acquisition of OSW during the quarter for approximately $53 million.\nOn that note, we paid dividends of $5.5 million during the quarter, reflecting an increased dividend of $0.09 per share.\nIn fact, in Illinois, where we have three of our largest facilities and the corporate office, over 60% of our employees are now fully vaccinated.\nAs in the last two quarters, we again saw improved demand for our products with our first-quarter order intake setting a new record for the company, surpassing the previous high by over $50 million.\nDemand for sewer cleaners remains strong, with first quarter orders up 30% year-over-year, and almost double the amount recorded last quarter.\nOver the last couple of years, approximately 70% of our sewer cleaners orders have included an optional safe-digging package, which allows our sewer cleaners to also be used for hydro or vacuum excavation purposes.\nOur road marking services business, Highmark also won an $8 million striping contract during the quarter.\nIn addition, our dump bodies and trailer businesses reported strong organic order growth of 28% across our end markets, achieving record backlog.\nAs a reminder, that is about 50% of the time for our ESG businesses, excluding TBEI, where the customer almost always supplies the chassis.\nWe were recently notified by one of our chassis suppliers that they are temporarily suspending production of certain chassis for up to 90 days in light of the semiconductor shortage.\nWe were pleased to see that TRUVAC product demonstrations for the quarter were up 70% from last year.\nWe also continue to make progress with our aftermarket initiative with aftermarket revenues for the quarter improving by 6% and representing a higher share of ESG's revenues for the quarter at around 27%.\nDuring the quarter, products launched over the last year equated to organic growth of about 4%.\nIn sourcing this line, which leverages automated laser technology, is estimated to improve the related margins and drive annual savings of over $1 million.\nThe acquisition provides considerable opportunity for long-term value creation through the application of our 80/20 improvement principle, organic growth initiatives and additional bolt-on acquisitions.\nLast week, we held an initial 80/20 improvement training session at OSW, which was well received by the teams.\nThe American rescue plan, COVID release package, includes approximately 1.9 trillion of economic stimulus with approximately $350 billion going to state, local and territorial governments with the goal of keeping frontline workers employed, distributing the vaccine, increasing testing, reopening schools, and maintaining essential services.\nWe are actively educating our dealer channel about the stimulus program and have distributed the latest estimate allocation of the $350 billion of state and local government support by jurisdiction to our dealer channel to share with its customer base.\nAfter factoring in the impact expected over the next couple of months, at this time, we are maintaining our adjusted earnings per share outlook for the year of $1.73 to $1.85.", "summaries": "That equates to GAAP earnings per share for the quarter of $0.36 per share compared to $0.38 per share last year.\nOn an adjusted basis, earnings per share for the quarter was $0.38 per share, compared to $0.39 per share last year.\nIn terms of our group results, ESG net sales for the quarter were $228 million compared to $233 million last year.\nOn an overall GAAP basis, we therefore earned $0.36 per share in Q1 this year compared with $0.38 per share in Q1 last year.\nOn this basis, our adjusted earnings for the quarter were $0.38 per share compared with $0.39 per share last year.\nAfter factoring in the impact expected over the next couple of months, at this time, we are maintaining our adjusted earnings per share outlook for the year of $1.73 to $1.85.", "labels": 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{"doc": "Systemwide domestic RevPAR outperformed the industry by nearly 20 percentage points, declining only 28.8% from the third quarter of 2019.\nWith over 4,000 domestic hotels located within a mile of an interstate exit, our hotels are well positioned to serve travelers as they hit the open road.\nAnd with over 2,000 domestic hotels near beaches and national parks, our hotels are also located in the right markets to capture growing demand from travelers who increasingly are looking to rediscover the great American outdoors.\nMore specifically, our website contribution increased by 400 basis points and our loyalty contribution increased by 120 basis points quarter-over-quarter.\nFor the past 34 weeks through October 31, we observed significant RevPAR share gains against the competition.\nIn the third quarter, all of our select service brands achieved material RevPAR index gains versus their local competitors, with each of our upscale and extended-stay brands experiencing share gains of over 10 percentage points.\nOur upscale portfolio once again achieved impressive year-over-year growth in the third quarter, where we increased our domestic upscale room count by 33%.\nNow with nearly 300 hotels around the globe and fast approaching its 200th domestic location, Ascend Hotels achieved the following performance in the third quarter: RevPAR change outperformance by over 26 percentage points versus the upscale segment; RevPAR share gains against local competitors of nearly 19 percentage points; and average daily rate index gains of approximately nine percentage points.\nChoice Hotels brands in this cycle-resilient segment continue to outperform in this unprecedented environment, and our portfolio of over 420 extended-stay hotels grew 6% year-over-year in the third quarter.\nOur WoodSpring Suites brand achieved an average occupancy rate of 77% in the third quarter, and the brand's monthly occupancy levels have remained north of 75% since the last week of June.\nAt the same time, our MainStay Suites mid-scale extended-stay brand gained more than 16 percentage points in RevPAR index versus its local competitors in the third quarter.\nWe remain optimistic about the growth potential of our extended-stay portfolio whose pipeline increased by 9% year-over-year in the third quarter.\nYear-to-date through September, Choice has awarded over 40 extended-stay franchise agreements, demonstrating sustained interest in both new construction and conversion opportunities during a challenging time for the industry.\nI'd now like to turn to our mid-scale segment, whose brands represent 2/3 of our total domestic portfolio and over half of the franchise agreements executed year-to-date.\nAnd Clarion Pointe, a conversion brand extension of Clarion that launched less than two years ago, recently opened its 20th hotel in the U.S. and now has over 50 hotels open or in the pipeline, demonstrating its strong growth as the brand continues its coast-to-coast expansion.\nYear-to-date, through the end of September, we have awarded over 230 new domestic franchise agreements, nearly 70% of which were for conversion hotels.\nIn the third quarter alone, we executed over 80 domestic agreements, of which nearly 3/4 were for conversions and over 40% of which were executed in the month of September.\nNearly 70% of our hotels have minority ownership.\nDespite the pandemic, we have awarded and financially supported 17 franchise contracts with black and Hispanic entrepreneurs year-to-date.\nFor the third quarter of 2020, total revenues, excluding marketing and reservation system fees, were $103.6 million.\nAdjusted EBITDA totaled $74.9 million representing an adjusted EBITDA margin of over 72% and adjusted earnings per share were $0.66.\nOur domestic systemwide RevPAR for the third quarter outperformed the overall industry by nearly 20 percentage points, declining only 28.8% from the same quarter of 2019.\nSpecifically, the RevPAR change of our upscale portfolio exceeded that of the overall segment by 14 percentage points, and our upscale portfolio outperformed its local competitive set by over nine percentage points.\nWith average domestic systemwide occupancy rates of 74%, our extended-stay portfolio outperformed the industry's RevPAR change by an impressive 40 percentage points beating its local competitive set by 14 percentage points.\nOur domestic systemwide occupancy rate has seen improvements since the trough of 28% that occurred back in early April.\nSince the week of June 21 through late October, our average weekly occupancy rates have consistently exceeded 50%.\nIn addition, we continue to see gains in our average daily rate index, which was up 1.7 percentage points against local competitors in the third quarter.\nDespite the challenging environment, we expanded our system size, growing the number of domestic hotels by 0.7% and rooms by 1.9% year-over-year.\nAcross our more revenue intense brands in the upscale, extended-stay and mid-scale segments, we experienced even greater growth, increasing the number of hotels by 2.1% and rooms by 3.4% year-over-year.\nComfort now represents nearly 1/3 of our total domestic pipeline, which will fuel revenue intense growth for years to come.\nIn addition, the brand's conversion pipeline increased by nearly 50% in the third quarter year-over-year.\nThe company's domestic effective royalty rate increased seven basis points year-over-year to 4.91% in the third quarter and has increased nine basis points year-to-date compared to the prior year.\nIn fact, we reduced our net debt by approximately $50 million during the third quarter and are proud to report cash flow from operations of $70 million for the nine months ended September 30, over $68 million of which was generated in the third quarter alone.\nAt the end of the third quarter, the company had over $790 million in cash and available borrowing capacity through our revolving credit facility.\nWe remain on track to achieve our previously announced SG&A cost savings of nearly 25% in 2020 and expect to maintain a run rate of SG&A cost savings of approximately 15% in 2021 and beyond.\nThe ultimate and precise impact of the pandemic on our business for the remainder of 2020 and beyond remains largely unknown, as is the exact trajectory of our industry's recovery.\nWhile we are not issuing formal guidance today, we currently expect that the impact of COVID-19 on the company's year-over-year RevPAR change will be less significant for the fourth quarter versus the third quarter of this year.\nIn fact, we expect our October 2020 RevPAR to decline by approximately 25% from the same period of 2019.", "summaries": "Systemwide domestic RevPAR outperformed the industry by nearly 20 percentage points, declining only 28.8% from the third quarter of 2019.\nAdjusted EBITDA totaled $74.9 million representing an adjusted EBITDA margin of over 72% and adjusted earnings per share were $0.66.\nOur domestic systemwide RevPAR for the third quarter outperformed the overall industry by nearly 20 percentage points, declining only 28.8% from the same quarter of 2019.\nThe ultimate and precise impact of the pandemic on our business for the remainder of 2020 and beyond remains largely unknown, as is the exact trajectory of our industry's recovery.\nWhile we are not issuing formal guidance today, we currently expect that the impact of COVID-19 on the company's year-over-year RevPAR change will be less significant for the fourth quarter versus the third quarter of this year.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "We saw a solid recovery progress in many of the end markets that we serve in the third quarter as evidenced by our revenue being up 29% sequentially versus the second quarter.\nWe talk often about the flexibility and responsiveness inherent in our 80/20 front-to-back operating system, and those attributes were clearly on display in our Q3 performance.\nThe operating flexibility that is core to our 80/20 front-to-back operating system also applies to our cost structure, which show through in our operating margin performance in Q3.\nOperating margin of 23.8% in the quarter, included meaningfully higher restructuring expenses versus a year ago in Food [Phonetic] segment specific one-time items, which Michael will provide more detail on in a few minutes.\nExcluding these factors, operating margin was 25.3% in Q3.\nOverall, the pace of recovery in the third quarter exceeded our expectations heading into the quarter, as we delivered revenue of $3.3 billion, operating income of $789 million, free cash flow of $631 million, and GAAP earnings per share of $1.83.\nIn addition, after-tax return on invested capital improved to 29.6%, an all-time high for the company.\nQ3 revenue was up 29% or almost $750 million sequentially versus Q2.\nAnd on a year-over-year basis, organic revenue declined only 4.6% compared to a 27% decline in Q2.\nThe impact of last year's divestitures was 1% and was essentially offset by 0.7% of favorable currency impact.\nProduct Line Simplification was 30 basis points in the quarter.\nDespite the negative volume leverage and our decision to stay invested in our key strategic priorities, Q3 operating margin was 23.8%, down only 120 basis points compared to prior year.\nIf you set aside the impact of higher restructuring expenses and two one-time segment items that I will describe in a moment, operating margin would actually have increased year-over-year to 25.3%.\nStrong execution on our enterprise initiatives was a big contributor once again at 120 basis points, as all segments delivered benefits in the range of 70 basis points to 190 basis points.\nAs expected, our decremental margins were a little higher than normal at 46% in the third quarter.\nExcluding the two one-time items that I just mentioned and the higher restructuring expense, our decremental margins would have been about 20%, significantly better than our historical decrementals of 35% to 40%.\nOperating income was $789 million, and GAAP earnings per share was $1.83, with an effective tax rate of 21.3%, in line with last year's 21.6%.\nSolid working capital performance contributed to free cash flow of $631 million and a conversion rate of 108% of net income.\nOn a year-to-date basis, free cash flow was $1.9 billion, with the conversion rate of 127% compared to 105% last year.\nWe now expect free cash flow to end the year significantly above $2 billion.\nAt quarter end, we had $2.2 billion of cash on hand, no commercial paper, and a $2.5 billion undrawn revolving credit facility, tier 1 credit ratings, and total liquidity of more than $4.7 billion.\nIn terms of our debt structure, you can see an increase of $350 million in the short-term debt, which is simply a reclassification from long-term to short-term as our 2021 bonds are coming due in less than 12 months.\nI would highlight just a few things that Scott mentioned, including the fact that our Automotive OEM segment was able to essentially double their volumes in a quarter or just 90 days as operating margins went from negative to 20% plus.\nIn addition, six of seven segments had operating margins, not segment margins, operating margins above 20%.\nIn fact, Food Equipment was just below 20%, but we expect them to get above 20% in Q4, despite the fact that they are operating in a pretty challenging environment.\nNorth America declined by only 5% in Q3 compared to down 26% in Q2.\nEurope also improved significantly down only 8%, a sequential improvement of almost 30 percentage points.\nAsia-Pacific turned positive this quarter, up 3% and China was the standout, up 10%, as the recovery continues to take hold.\nOverall, organic revenue was still down 5% year-over-year, with North America now 10% and Europe down 5%.\nChina, which had already turned positive last quarter at 6% also improved sequentially and was up 15% this quarter.\nLastly, as we discussed on our last call, we did initiate a few restructuring projects that were part of our 2020 plan pre-pandemic, which will lead to a reduction in operating margins of 150 basis points, to 20.8%.\nAs expected, Food Equipment was the hardest hit segment in the quarter as organic revenue declined 20%, a significant improvement though from being down 38% in Q2.\nNorth America and international organic revenue were both down about 20%.\nEquipment sales were down 21% and service was down 17%.\nInstitutional demand was down about 30% and restaurants, including QSR were down a little bit more than that.\nOn a positive note, retail, which includes grocery stores, grew more than 30% supported by the rollout of new products.\nDespite the significant negative volume leverage and higher restructuring expense, operating margin was still 19.6%.\nExcluding the higher restructuring impact, margins would have been 21.4%.\nAnd I think it's worth noting that in this most challenging environment, the segment generated almost $19 million in operating income.\nIn Test & Measurement and Electronics, organic revenue declined only 2% with Test & Measurement down 6% and Electronics, up 2%.\nAs you can see from the footnote, the reported operating margin of 23.7%, include a 350 basis points of unfavorable impact from removing a potential divestiture from assets held for sale.\nSpeaking of divestitures, let me make a broader comment on our portfolio management efforts and specifically the 2018 decision to divest seven businesses that we determine no longer fit our enterprise strategy framework, with revenue of approximately $1 billion.\nWe expect that the completion of these divestitures will improve our overall organic growth rate at the enterprise level by approximately 50 basis points and increase enterprise operating margins by 100 basis points.\nIn 2019, we made good progress completing four divestitures, with revenues of approximately $150 million and we are seeing the benefits in our financials this year including 20 basis points of operating margin impact.\nIn Welding, demand for capital equipment was down year-over-year as organic revenue declined 10%.\nHowever, the commercial business, which accounts for about 35% of revenue and serves primarily smaller businesses and individual users, was up 11%.\nIn Industrial, customers were holding back on capital spending and organic revenue was down more than 20% this quarter.\nOperating margin, though was remarkably resilient at 27.9%.\nOn a positive note, Polymers & Fluids reported record organic growth of 6% in the quarter.\nThe Automotive Aftermarket business benefited from strong retail sales to grow 10%, with double-digit growth in tire and engine repair products.\nFluids was up 6%, strong sales into healthcare and hygiene end markets.\nAs a result of the volume leverage and strong incremental margins of 78%, operating margin expanded by 250 basis points to a record 26.6%.\nMoving to Slide 8, Construction had a remarkable quarter, benefiting from continued strong demand in the home center channel to deliver record organic growth of 8%.\nAll geographies were positive, with North America up 12%, with double-digit growth in the residential and renovation market offset by commercial construction, down 10%; Europe was up 6%, with double-digit growth in the Nordic region; and Australia/New Zealand revenues grew 3% and were positive for the first time in more than two years.\nAs a result of the volume leverage and strong incremental margins of 59%, operating margin expanded by 300 basis points to a record 28.1%.\nAnd some of you may remember, when we launched enterprise strategy in 2012, Construction had the lowest operating margins in the company, seemingly stuck right around 12%.\nThe fact that the construction segment delivered the highest margins inside of ITW in Q3 at more than 28% is therefore pretty remarkable.\nSpecialty organic revenue was down 5%, with North America down 4% and international revenue down 7%.\nOperating margin was 25.2% and included a one-time customer cost sharing settlement.\nExcluding the impact of this one-time item, operating margins would have been 28%.\nAs we sit here today, we expect organic revenue for the full year to be down 11% to 11.5%, operating margin to be in the range of 22% to 22.5% and operating income in the range of $2.7 billion to $2.8 billion.\nAs I mentioned free cash flow performance continues to be strong and we expect to end the year well above $2 billion.\nAlso, please note that we expect a slightly higher tax rate in Q4 versus Q3 and our full-year tax rate is expected to be in the 22% to 23% range.", "summaries": "Overall, the pace of recovery in the third quarter exceeded our expectations heading into the quarter, as we delivered revenue of $3.3 billion, operating income of $789 million, free cash flow of $631 million, and GAAP earnings per share of $1.83.\nOperating income was $789 million, and GAAP earnings per share was $1.83, with an effective tax rate of 21.3%, in line with last year's 21.6%.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "I am so pleased to be able to open our comments by saying we have successfully eliminated several ongoing operator challenges, executed on $46 million in new investments and have an active and healthy pipeline.\nOn the plus side, it has been reported recently that Texas, where we own 34 properties, passed a bill to support long-term care in the state.\nThe bill proposes $200 million in grants for skilled nursing and $178.3 million in grants for assisted living communities and other care-based providers to help fund staffing recruitment and retention.\nThere is about $17 billion available for distribution to healthcare providers through Phase four of the Provider Relief Fund and another $8.5 billion available for distribution to rural providers through the American Rescue Plan.\nRent and mortgage interest income collections, excluding Senior Care and Senior Lifestyle were 94%.\nAs I mentioned earlier, we recently completed 46 million in investments and have built a healthy pipeline.\nWe maintained our $0.19 per share monthly dividend by paying out $22.4 million in common dividends during the quarter to our shareholders.\nThe payout ratio on our dividend, excluding nonrecurring items was approximately 100% for the third quarter.\nIf we used pro forma performance, including recently completed investments, the third quarter FAD payout ratio excluding nonrecurring items would be approximately 96%.\nAlthough this remains well above our preferred payout ratio of approximately 80% of FAD, we expect our 2022 FAD to improve with the additional revenue from the releasing of the Senior Care and Senior Lifestyle portfolios, which will help bring the payout ratio more in line with historical levels.\nWith respect to guidance, for the fourth quarter we expect FFO to increase approximately $0.02 to $0.03 per share, excluding nonrecurring items from third quarter results.\nTotal revenue decreased $701,000 compared with the third quarter of last year, resulting principally from unpaid rent from senior care and senior life, abated and deferred rent and the sale of a property in Washington.\nThe decrease was partially offset by the write-off of straight-line rent receivable balances in the prior-year quarter, rent received from releasing 18 properties in the Senior Lifestyle portfolio, completed development projects and increase in property tax revenue, annual rent escalation, capital improvement funding and higher payments from Anthem.\nInterest expense decreased 751,000, mostly due to scheduled principal pay-downs on our senior unsecured notes and lower interest rates on our line of credit, partially offset by a higher outstanding balance on our line of credit.\nDuring the 2021 third quarter, we recognized a gain on sale of real estate of $2.7 million related to the sale of a skilled nursing center in Washington.\nIn last year's third quarter, we recorded a $900,000 impairment charge related to a closed assisted living property in Florida, which was sold in the first quarter of 2021 and received 373,000 in insurance proceeds for damage related to a property sold in the first quarter of 2020.\nNet income available to common shareholders decreased by $1.2 million, primarily due to the previously discussed revenue decline and settlement and related fees for senior care.\nNAREIT FFO per diluted share was $0.45 this quarter compared with $0.58 in last year's third quarter.\nExcluding non-recurring items, FFO per share was $0.55 this quarter compared with $0.71 in the third quarter of 2020.\nThe decrease excluding nonrecurring items with due to receiving 0 rent from Senior Care and Senior Lifestyle, abated and deferred rent and higher G&A expense.\nThese decreases were partially offset by higher revenues resulting from releasing 18 properties in the Senior Lifestyle portfolio, completed development projects, mezzanine loan funding and lower interest expense.\nDuring the 2021 third quarter, we funded a $4.4 million mezzanine loan and a $1.8 million mortgage loan.\nAdditionally, we funded $2.8 million in capital improvement projects on properties we own.\nSubsequent to the end of the quarter we funded two mortgage loans for a total of $39.5 million.\nDuring the third quarter we borrowed $68.5 million under our unsecured revolving line of credit and paid $25.2 million in scheduled principal pay-downs on our senior unsecured notes.\nCurrently we have $5.9 million of cash on hand, $465.6 million available on our line of credit with $134.4 million outstanding and $200 million available under our ATM.\nThis leaves us with ample liquidity of $671.5 million.\nAt the end of the 2021 third quarter our credit metrics remain strong with a debt-to-annualize-adjusted EBITDA for real estate of 5.8 times, and annualized adjusted fixed charge coverage ratio of 4.3 times.\nAnd a debt-to-enterprise value of 35.3%.\nAnnualized adjusted EBITDA for real estate was 5.7 times.\nThe annualized adjusted fixed charge coverage ratio was 4.3 times, and debt-to-enterprise value was 32.9%.\nAs Wendy mentioned, excluding Senior Care and Senior Lifestyle, we collected 94% of third quarter rent and mortgage interest income.\nDuring the quarter we provided $1.3 million in rent deferrals and $970,000 in rent abatements.\nIn October, we provided rent deferrals totaling $438,000 and rent abatements totaling $240,000.\nWe have agreed to provide rent deferrals of up to $441,000 and abatements of up to $240,000 for each of November and December 2021.\nIn total, we have transitioned 18 of the Senior Lifestyle buildings with the 19th expected shortly.\nFor these 19 buildings, occupancy for the month of December 2020 was 71%, increasing to 75% for the month of September 2021.\nAt June 30, EBITDAR, excluding stimulus, on a trailing 12-month basis for these six properties was $870,000.\nOn a trailing three-month annualized basis, EBITDAR excluding stimulus was $150,000.\nOccupancy for the month of December 2020 for these six buildings was 60%, growing to 65% for the month of September 2021.\nWith respect to the 11 properties in Senior Care portfolio, in late August we reached a settlement with Senior Care and Aubrey Health Services under which LTC made a one-time payment of $3.25 million in exchange for cooperation and assistance in facilitating an orderly transition of the portfolio.\nAs of October 1, the entire 11 property portfolio was leased to an affiliate of HMG Healthcare under a one-year master lease with rent based on cash flows.\nThis assumed liability is capped at $3.7 million.\nIt is our intention to add the 11 properties to a master lease currently existing between LTC and HMG after establishing a stabilized rent rate during the first lease year.\nWe also agreed to provide HMG a $25 million secured working capital loan maturing on September 30, 2022.\nAnd as Wendy mentioned earlier, the state recently announced an additional $200 million in support for SNFs.\nWeatherly Court in Oregon, which is operated by Fields Senior Living saw occupancy rise to 45% at September 30, up from 36% at June 30.\nWhile Ignite Medical Resort in Blue Springs, Missouri grew occupancy to 90% at September 30, up from 83% at June 30.\nQ2 trailing 12 month EBITDARM and EBITDAR coverage as reported using a 5% management fee was 1.06 times and 0.86 times respectively for our assisted living portfolio.\nExcluding stimulus funds received by operators, coverage was 0.87 times and 0.68 times respectively.\nFor our skilled nursing portfolio, as-reported EBITDARM and EBITDAR coverage was 2.08 times and 1.61 times respectively.\nExcluding stimulus funds, coverage is 1.44 times and 0.99 times respectively.\nAs our partners have given the data to us on a voluntary and expedited basis, the information we are providing includes approximately 98% of our total same-store, private-pay units, and approximately 90% of our same-store skilled nursing beds.\nPrivate-pay occupancy was 77% at September 30, 75% at June 30, and 73% at March 31.\nFor our skilled portfolio, average monthly occupancy was 71% in September, 70% in June, and 69% in March.\nAs Wendy mentioned, we recently closed approximately $46 million in investments.\nThe first investment was a $27 million mortgage loan for the purchase of a skilled nursing center in Louisiana by a regional operator new to LTC.\nThe second investment was a $12.5 million mortgage loan for the purchase of an assisted living and memory care community in Florida, to be operated by a regional operator new to LTC.\nThe loan term is for approximately four years and includes an additional $4.2 million loan commitment to be funded at a later date subject to satisfaction of various conditions for the construction of a memory care addition to the property.\nThe third investment was a $1.8 million loan secured by a parcel land in Missouri for the future development of a post-acute skilled nursing center.\nThe final investment was a $4.4 million mezzanine loan for the refinancing of a independent living community in Oregon operated by a regional operator new to LTC.\nIn total, the combined weighted average term of the loans is 3.2 years and the investments are expected to generate an annual interest income of approximately $3.5 million.\nIn total, our near-term pipeline is valued at more than 100 million.", "summaries": "NAREIT FFO per diluted share was $0.45 this quarter compared with $0.58 in last year's third quarter.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Finally, growth goals of 6% to 8% ex-COVID represent comparisons between time periods in which results are not materially impacted by the COVID-19 pandemic.\nTotal company third quarter operational sales grew 10% versus 2020, while organic sales grew 11% versus '20 and 4% versus 2019, just below our guidance of 12% to 14% versus 2020 as Delta impacted procedure volume globally.\nQ3 adjusted earnings per share of $0.41 grew 10.5% versus 2020 and 4% versus 2019, reaching the high end of our third quarter guidance range of $0.39 to $0.41.\nAdjusted operating margin at 25.6% continues to improve and was in line with our third quarter expectations.\nWe continue to be pleased with our cash flow with third quarter free cash flow generation of $360 million and adjusted free cash flow of $525 million.\nCompared to 2020, we target fourth quarter '21 organic revenue growth of 12% to 16% and full year growth of 18% to 19%.\nCompared to 2019, we target fourth quarter '21 organic revenue growth of 4% to 8% and for full year organic revenue growth of 5% to 6% versus 2019.\nOur fourth quarter adjusted earnings per share estimate is $0.43 to $0.45, and we're updating full year adjusted earnings per share to a revised range of $1.60 to $1.62.\nWithin the regions on an operational basis Q3 2020, the US grew 15%; Europe, Mid-East Africa grew 8%, Asia Pac grew 8% and the emerging market sales grew 18%.\nAlthough Japan was in a state of emergency throughout third quarter, we were able to advance new product launches, achieving Number 1 share position with our Ranger Drug-Coated Balloon as well as launching POLARx in October.\nChina continues to deliver excellent results and sales grew 14% versus 2020.\nUrology and Pelvic Health sales grew 7% organically versus 2020.\nIn Endoscopy, sales grew 11% organically versus 2020.\nWe continue to make progress with EXALT-D and are launching the 1.5 enhanced EXALT-D design, which features improved physician ergonomics.\nAdditionally, we're pleased to now have approximately 40% of ERCP procedures qualify for additional reimbursement with NTAP approval as of October 1.\nOur Preventice business remains on track to deliver plus 20% growth for the full year versus 2020 on a pro forma basis, fueled by the broad and differentiated ambulatory ECG portfolio.\nElectrophysiology organic sales were up 10% versus 2020, driven by strong international sales in both Europe and Japan.\nWithin the US, the Baylis platform is used in close to 40% of EP ablation procedures on the left side of the heart.\nIn neuromodulation, organic revenue grew 2% versus 2020 as underlying procedure volumes was impacted by the Delta surge throughout much of the quarter.\nAnd last week, we received approval for our Essential Tremor indication and are excited to begin our limited launch in fourth quarter 2021, which expand our addressable market by $2 billion.\nIn Interventional Cardiology, organic sales grew 26% versus 2020, which includes a 1,200 basis point tailwind related to the WATCHMAN consignment sales return reserve taken in third quarter '20.\nIn TAVR, ACURATE neo2 continues to do well with physicians pleased with its clinical performance and ease of use, backed by strong real-world clinical data, resulting in approximately 20% market share in open accounts.\nMomentum continues with SENTINEL, our cerebral embolic protection device, which is exceeding 20% share in the US, where it's utilized.\nCoronary Therapies grew 8% versus 2020 as the China DES tender impact begins to annualize and our portfolio mix shift into higher growth markets continues to strengthen.\nPeripheral Interventions consistently delivers with organic sales up 8% versus Q3 2020.\nEluvia, our drug-eluting stent exhibited superiority in the EMINENT trial compared to bare metal stents and 2-year data from the RANGER 2 trial demonstrated continued high rates, primary patency and significant reduction in reinterventions with our Ranger DCB.\nAnd since 2017, we've reduced the BSC carbon footprint by 50% and are on track to meet our goal to be carbon neutral in all manufacturing and key distribution sites by 2030.\nAt our recent Investor Day, we detailed our LRP plans for growth of 6% to 8% growth, operating margin expansion of 50 basis points or more each year and double-digit adjusted earnings per share growth.\nThird quarter consolidated revenue of $2.932 billion represents 10.3% reported revenue growth versus the third quarter of 2020 and reflects a $17 million tailwind from foreign exchange.\nOn an operational basis, revenue growth was 9.7% in the quarter.\nSales from the acquisitions of Preventice, Farapulse and Lumenis contributed 220 basis points more than offset by the divestiture of Specialty Pharmaceuticals, resulting in 10.6% organic revenue growth, slightly below our guidance range of 12% to 14% growth versus 2020.\nCompared to the third quarter 2019, organic growth was 4.1%, below our guidance range of 5% to 7%.\nThis 4.1% growth excludes $35 million in 2019 sales of divested intrauterine health, embolic beads and BTG Specialty Pharmaceuticals businesses as well as $117 million in 2021 sales of acquired businesses, which consists of half a quarter of BTG Interventional Medicines, a full quarter of Preventice and post-close revenue from Farapulse and Lumenis.\nSpend controls and a favorable tax rate drove Q3 adjusted earnings per share of $0.41, representing 10.5% growth versus 2020, 4% growth versus 2019 and achieving the high end of our guidance range of $0.39 to $0.41.\nAdjusted gross margin for the third quarter was 70.6%, in line with our expectations.\nThird quarter adjusted operating margin was 25.6%, again, in line with our expectations, driven by spend control and lower travel offsetting the revenue headwinds.\nWe're pleased with our trajectory and continue to target adjusted operating margin to average 26% for the second half of this year.\nOn a GAAP basis, operating margin was 13.2% and includes a $128 million intangible asset impairment primarily related to VENITI, as we've made the decision to retire the VICI VENOUS STENT venous stent following our voluntary recall earlier this year.\nMoving to below the line.\nAdjusted interest and other expense totaled $104 million, again, in line with expectations.\nOur tax rate for the third quarter was 7.8% on an adjusted basis, favorable to our expectations, driven by the geographic mix of earnings.\nWe ended Q3 with 1,436 million fully diluted weighted average shares outstanding.\nAdjusted free cash flow for the quarter was $525 million, and free cash flow was $359 million with $465 million from operating activities, less $106 million net capital expenditures.\nOur goal remains to deliver adjusted free cash flow in line with 2020 approximately $2 billion as we continue to expect increased working capital investments in inventory and accounts receivable during the remainder of 2021.\nAs of September 30, 2021, we had cash on hand of $1.9 billion.\nFor the full year, we expect 2021 operational revenue growth to be in a range of 18% to 19% versus 2020, which includes an approximate net 30 basis point headwind from the divestiture of our intrauterine health franchise and Specialty Pharmaceuticals, partially offset by the acquisitions of Preventice, Farapulse and Lumenis.\nExcluding the impact of closed acquisitions and divestitures, we expect full year organic revenue growth to be in a range of 18% to 19% versus 2020 and 5% to 6% versus 2019.\nFor the organic comparison to 2019, full year 2019 sales exclude $50 million in sales of our embolic beads portfolio and intrauterine health franchise as well as $81 million in Specialty Pharmaceutical sales and at the midpoint of guidance, 2021 sales exclude approximately $530 million in sales from recent acquisitions, including [Technical Issues] BTG Interventional Medicines through mid-August, Preventice, Farapulse and Lumenis as well as $13 million of Specialty Pharmaceutical sales prior to divestiture.\nFor the fourth quarter 2021, we expect operational revenue growth to be in a range of 14% to 18% versus 2020, which includes an approximate net 180 basis point tailwind from the acquisitions of Preventice, Farapulse and Lumenis, partially offset by the divestiture of Specialty Pharmaceutical.\nExcluding the impact of acquisitions and divestitures, we expect Q4 organic revenue growth to be in a range of 12% to 16% versus 2020 and 4% to 8% growth versus 2019.\nFor the Q4 organic comparison to 2019, 2019 sales exclude $67 million in sales of our divested intrauterine health and Specialty Pharmaceuticals businesses.\nAnd at the midpoint of guidance, 2021 sales exclude $90 million -- approximately $90 million in sales from the acquisition of Preventice, Farapulse and Lumenis.\nWe continue to expect adjusted below-the-line expenses, which include interest payments, dilution from our VC portfolio and costs associated with our hedging program to be approximately $400 million to $425 million for the year.\nBased on year-to-date favorability, we now forecast our full year 2021 operational tax rate to be approximately 10% and our adjusted tax rate to be approximately 9%.\nWe expect fully diluted weighted average share count of approximately 1,439 million shares for Q4 2021 and 1,434 million shares for the full year 2021.\nWe are narrowing the range for full year 2021 adjusted earnings per share guidance to $1.60 to $1.62, which includes our update to sales guidance and considers Q3 performing at the high end of our guidance range.\nFor the fourth quarter, adjusted earnings per share is expected to be in a range of $0.43 to $0.45.\nAndrew, let's open it up to questions for the next 35 minutes or so.", "summaries": "Q3 adjusted earnings per share of $0.41 grew 10.5% versus 2020 and 4% versus 2019, reaching the high end of our third quarter guidance range of $0.39 to $0.41.\nOur fourth quarter adjusted earnings per share estimate is $0.43 to $0.45, and we're updating full year adjusted earnings per share to a revised range of $1.60 to $1.62.\nThird quarter consolidated revenue of $2.932 billion represents 10.3% reported revenue growth versus the third quarter of 2020 and reflects a $17 million tailwind from foreign exchange.\nSpend controls and a favorable tax rate drove Q3 adjusted earnings per share of $0.41, representing 10.5% growth versus 2020, 4% growth versus 2019 and achieving the high end of our guidance range of $0.39 to $0.41.\nMoving to below the line.\nFor the fourth quarter, adjusted earnings per share is expected to be in a range of $0.43 to $0.45.", "labels": "0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "I am starting on Page 3.\nRevenue has increased to $28.8 million, but we had a loss of $0.35 per share.\nWe had a huge bookings quarter at $68 million.\nAs of December 31, 2021, our Navy backlog in Batavia was over $100 million.\nNow while the CVN-80 work is not a true first article job for us, the lack of process documentation from the previous work combined with severe labor challenges and use of contract welders new to the equipment caused challenges on the carrier work as well.\nLet's turn to Page 5.\nThe chart on Page 5 shows our labor plan with blue bars, our actual labor, application in gray bars, and the resulting deficit of hours caused by actual being less than our planned hourly expenditure.\nSales were $28.8 million, up $1.6 million over last year's third quarter.\nBarber-Nichols contributed $12 million in sales in the quarter, helping to offset the weak sales quarter of our legacy Graham manufacturing business.\nThe impact of the cost increases and required fully burdened contract costs in the quarter were $2 million.\nIn addition, the delayed revenue was approximately $6 million, and the delayed operating profit is approximately $750,000.\nAll of the above items contributed to an adjusted EBITDA of negative $2.6 million in the quarter and an adjusted net loss of $0.27 per share.\nOn the positive front, with the addition of Barber-Nichols, we had 58% of our sales to the defense industry, as well as 5% or $1.5 million to the space industry.\nThe impact of the third quarter results on top of a challenging first half of the year have yielded an unacceptable loss even as sales increased 16% or $11.3 million to $83.1 million.\nIn the seven months since the acquisition, BN has contributed $31.9 million in sales, offsetting significant declines in refining and petrochemical markets.\nIn fact, our diversification into defense, which is less cyclical than our commercial business, has resulted in 52% of our year-to-date revenue coming from that industry.\nThe year-to-date impact of increased cost on these two jobs is approximately $4.5 million.\nIn addition, the delayed revenue was approximately $12 million and the delayed operating profit is an additional $1.5 million.\nThe increased cost of outsourcing and higher costs has impacted the commercial business by $3 million.\nAll of the above items contributed to an adjusted EBITDA of negative $5.4 million year-to-date, and a year-to-date net loss of $0.70 a share and an adjusted loss of $0.60 per share.\nIn the seven months since the acquisition, BN sales are on track at $31.9 million, and EBITDA margins are well ahead of expectations.\nI have noted in previous calls, that we were expecting $45 million to $48 million in sales and low double-digit EBITDA margins.\nAnd as part of the waiver agreement, we have agreed not to utilize more than $15 million of our revolver.\nIn fact, in January alone, lowered our revolver debt from $9.75 million to $6 million.\nAs Dan noted, orders in Q3 were $68 million.\nOur backlog at the end of Q3 is a record $272.6 million, with both Barber-Nichols and the legacy Graham business having a nice step-up in their respective backlogs during the quarter.\nDefense represents 77% of total backlog.\nThis defense backlog extends over the next 6 years, though much of it converts in the next three to four years.\nIt has grown from $33 million at the end of March to $63 million now.\nAnother positive feature of the commercial backlog and its growth is that it has a much shorter conversion cycle than the defense backlog generally 12 to 18 months.\nOur revenue guidance is now $120 million to $125 million, which implies $37 million to $42 million in Q4.\nLet's turn to Page 12.", "summaries": "Revenue has increased to $28.8 million, but we had a loss of $0.35 per share.\nSales were $28.8 million, up $1.6 million over last year's third quarter.\nOur revenue guidance is now $120 million to $125 million, which implies $37 million to $42 million in Q4.", "labels": "0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "Today, we reported all-time record quarter results with adjusted earnings per share from continuing operations of $2.79, an increase of 207% compared to last year.\nAutoNation same-store new vehicle units were up 22% year-over-year and up 12% compared to 2019.\nWe remain focused on our pre-owned vehicle procurement strategy, nearly 90% of our pre-owned vehicles retailed in the first quarter were self- sourced, meaning, we acquired through trade-in, switch returns.\nAutoNation same-store pre-owned units were up 28% year-over-year and 20% compared to 2019.\nTools like Customer 360, which has over 10 million active customer records, enable us to provide a truly comprehensive and personal experience for our customers, which leads to higher close rates and increased vehicle sales.\nThese efforts allowed us to deliver adjusted SG&A as a percent of gross profit, a 62.7% in the first quarter of 2021 which represents a 1,120 basis point improvement compared to the first quarter of 2020.\nOur target is to operate at or below 65% SG&A as a percent of gross profit for '21.\nWe are on track to open five new AutoNation USA stores in 2021 and 12 additional new stores in 2022.\nOur target is to have over 130 AutoNation USA stores in operation from coast to coast by the end of 2026.\nToday, we announced that we signed an agreement to acquire 11 stores and one collision center for Peacock Automotive Group in Hilton Head and Columbia, South Carolina and Savannah, Georgia, representing approximately $380 million in annual revenue.\nThis acquisition will increase AutoNation's footprint from coast to coast to over 325 locations and it's set to close in the summer.\nWe have set the target to sell 1 million combined new and pre-owned vehicles annually.\nDuring the quarter we bought back 3.8 million shares or 5% of our shares outstanding.\nToday we reported adjusted net income from continuing operations of $234 million or $2.79 per share versus $82 million or $0.91 per share during the first quarter of 2020.\nThis represents an all-time high quarterly earnings per share and a 207% increase year-over-year.\nDuring the quarter, we sold our remaining stake in Vroom for a gain of approximately $6 million after tax or $0.07 per share, which was excluded from our adjusted results.\nOur first quarter same-store revenue increased $1.3 billion or 27% compared to the prior year due to strong growth in new, used and customer financial services.\nFor the quarter, same-store total variable gross profit increased 52% year-over-year, driven by an increase in total combined units of 25% and an increase in total variable PVR of $767 or 21%.\nOur customer care business continues to gradually improve with same-store customer care gross profit increasing 1% year-over-year.\nTaking together, our same-store total gross profit increased 27% compared to the prior year.\nFirst quarter SG&A as a percentage of gross profit was 62.7%, as Mike stated a 1,120 basis point improvement compared to the year-ago period.\nAs measured against gross profit, overhead decreased 590 basis points, compensation decreased 320 basis points and advertising decreased 210 basis points.\nBased on current business conditions, we project SG&A as a percentage of gross profit to be at or below 65% for the full year 2021.\nFloorplan interest expense decreased to $9 million in the first quarter of 2021 due to lower interest rates and lower average floorplan balances.\nOur cash balance at quarter end was $350 million which combined with our additional borrowing capacity resulted in total liquidity of approximately $2.1 billion.\nOur covenant leverage ratio of debt to EBITDA declined to 1.3 times at the end of the first quarter, down from 1.8 times at the end of the fourth quarter.\nIncluding cash and used floorplan availability, our net leverage ratio was 1.1 times at the end of March.\nDuring the first quarter, our five existing AutoNation US stores generated over $3 million in pre-tax profit.\nAs Mike referenced earlier, we plan to open five new stores by the end of this year and 12 new stores in 2022 and targeting over 130 total locations by the end of 2026.\nDuring the first quarter, repurchased 3.8 million shares of common stock for an aggregate price of $306 million.\nWe have approximately $892 million of remaining Board authorization for share repurchases and approximately 80 million shares outstanding.\nOur commitment to the customer experience is why we're number 1 for the J.D. Power Dealer of Excellence Recognition Program for the third year in a row.\nLess than 2% of all US franchise dealers achieved this honor.\n78 AutoNation stores representing over 20% of our dealerships were recognized.", "summaries": "Today, we reported all-time record quarter results with adjusted earnings per share from continuing operations of $2.79, an increase of 207% compared to last year.\nAutoNation same-store new vehicle units were up 22% year-over-year and up 12% compared to 2019.\nAutoNation same-store pre-owned units were up 28% year-over-year and 20% compared to 2019.\nOur target is to have over 130 AutoNation USA stores in operation from coast to coast by the end of 2026.\nWe have set the target to sell 1 million combined new and pre-owned vehicles annually.\nToday we reported adjusted net income from continuing operations of $234 million or $2.79 per share versus $82 million or $0.91 per share during the first quarter of 2020.\nOur customer care business continues to gradually improve with same-store customer care gross profit increasing 1% year-over-year.\nTaking together, our same-store total gross profit increased 27% compared to the prior year.\nAs Mike referenced earlier, we plan to open five new stores by the end of this year and 12 new stores in 2022 and targeting over 130 total locations by the end of 2026.\nOur commitment to the customer experience is why we're number 1 for the J.D. Power Dealer of Excellence Recognition Program for the third year in a row.", "labels": "1\n1\n0\n1\n0\n0\n0\n0\n1\n0\n0\n1\n0\n1\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0"}
{"doc": "We find ourselves in an enviable financial position, whereby we expect to have no debt and be cash positive before the end of 2021.\nStarting with our financial results for the third quarter of 2021, we had net income, on a GAAP basis, of $198 million or $5 per diluted share during the quarter as compared to a loss of $61 million or $1.57 per share for the previous quarter.\nAdjusting for certain items, primarily the mark-to-market of hedging instruments and the gain on sale properties in the previously announced divestiture, we had adjusted net income of $142 million or $3.57 per diluted share as compared to $118 million or $3.01 per share for the previous quarter.\nAdjusted EBITDAX was $201 million compared to $176 million in the previous quarter, primarily due to better commodity prices.\nOur company's production on a barrels of oil equivalent remained relatively flat quarter over quarter, averaging 92,100 boe compared to second quarter production of 92,600 boe.\nOil production for the third quarter averaged 51,800 barrels of oil, which was down from the second quarter of 53.4 million barrels of oil -- 53,400 barrels of oil.\nThe company invested capex of $67 million during the third quarter to bring 17 gross 9.1 net wells on to production and we drilled 10 gross 5.6 net operated wells.\nWe ended the quarter with 25 gross 14.3 net drilled uncompleted wells.\nLease operating expenses were $57 million or $6.68 per boe for the third quarter of 2021.\nGeneral and administrative expenses of $12 million or $1.41 per boe was similar quarter over quarter.\nThe assets in the Williston Basin overlap our Sanish field and expand our inventory by over 60 gross locations.\nWe expect the company's reinvestment rate in 2022 to be similar to what we saw here in 2021 where we will have invested roughly 35% of our EBITDA.", "summaries": "We find ourselves in an enviable financial position, whereby we expect to have no debt and be cash positive before the end of 2021.\nAdjusting for certain items, primarily the mark-to-market of hedging instruments and the gain on sale properties in the previously announced divestiture, we had adjusted net income of $142 million or $3.57 per diluted share as compared to $118 million or $3.01 per share for the previous quarter.", "labels": "1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Since restarting operations in Q3 2020, we have increased flight from almost zero to nearly 70% of our pre-pandemic capacity in Q3 2021.\nIn terms of capacity, we reached almost 70% of third quarter 2019 ASMs compared to 48% of 2019 capacity in the second quarter.\nLoad factor came in at 79%, an improvement of two percentage points compared to the second quarter on an almost 50% quarter-over-quarter ASM growth.\nRevenues increased by 46% over the previous quarter to $445 million.\nOur ex-fuel CASM decreased from $0.76 in Q2 to $0.62 in Q3, reaching 2019 unit cost levels at 70% of 2019 capacity.\nWe reported an operating profit of $59 million and an operating margin of 13.3% in the quarter.\nExcluding a $10.4 million passenger revenue adjustments, that Company would have reported an operating profit of $48.6 million and an operating margin of 11.2%.\nWe had a cash buildup of $54 million and ended the quarter with a cash balance of $1.3 billion and a total liquidity of over $1.6 billion.\nOn the operational front, the Company delivered an untimed performance of 89.4% and that completion factor of 99.8%, ONCE again among the best in the industry.\nBy the end of the year, Copa will provide service to 72 destinations in North, Central, South America, and the Caribbean.\nDuring the quarter, we agreed with Boeing to accelerate the delivery of 12 737 MAX 9 that were originally intended to be delivered starting in 2025.\nWe will receive two of these aircraft in 2022 for a total of seven MAX 9 deliveries next year and the other 10 aircrafts will be added to Copa's deliveries from 2023 through 2025.\nAs to Boeing, during the fourth quarter, it expects to receive two aircrafts from the Copa fleet to end the year with a total of eight 737-800.\nOur capacity came in at 4.4 billion available seat miles, which amounts to 69% of the capacity operated per quarter of 2019.\nLoad factor came in at an average of 79% for the quarter, an increase compared to Q2 while operating 49% more ASMs. We reported a net profit of $8.2 million or $0.19 per share.\nExcluding special items, we would have reported a net profit of $29.9 million or $0.70 per share.\nSpecial items for the quarter are comprised mainly of an unrealized mark-to-market loss of $32.1 million related to the Company's convertible notes issued in 2020 and $10.4 million in revenues related to unredeemed tickets, which we are not included in our underlying results as they correspond to sales made during 2019 and early in 2020.\nWe reported a quarterly operating profit which came in at $59 million.\nExcluding the $10.4 million in unredeemed ticket revenues, we had an adjusted operating profit of $48.6 million for the quarter.\nOur operating margin was 13.3%.\nExcluding the passenger revenue adjustments, we would have reported an operating margin of 11.2%.\nUnit cost excluding fuel were better than in the second quarter at $0.062 per ASM, driven by a quarter-over-quarter capacity growth of 49%.\nWe continue with our cost savings initiatives and we are now targeting to achieve the unit cost below $0.06 once we reach above 90% of our pre-COVID-19 capacity.\nDuring the third quarter, we had a cash buildup of approximately $54 million, driven mainly by increased sales during the period.\nAs of the end of the third quarter, we had assets of close to $4.2 billion and our cash short and long-term investments ended at $1.3 billion.\nWe also ended the quarter with an aggregate amount of $345 million in unutilized committed credit facilities, which added to our cash, brought our total liquidity to more than $1.6 billion.\nIn terms of debt, we ended the quarter with $1.6 billion in debt and lease liabilities at similar levels to the ones reported for the end of the second quarter.\nIn July, we finalized the sale and delivery of our last Embraer 190 and during the quarter, we delivered two Boeing 737-700s to their new owner, the end of the third quarter with 87 aircraft; 68 737-800 70%, 13 737 MAX 9s, and six 737-700.\nDuring the fourth quarter, we expect to receive two more 737 MAX 9s to end the year with a total of 89 aircraft.\nWe expect capacity to be approximately 83% of Q4 2019 levels at about 5.1 billion ASMs and we expect our operating margin to be approximately 4%.\nOur Q4 2021 outlook is based on the following assumptions; revenues of approximately 80% of Q4 2019 levels at about $545 million, CASM ex-fuel of approximately $0.61, and oil price of $2.50 per gallon, an increment of approximately 17% quarter-over-quarter.\nHowever, for the first half of the year, we preliminarily expect our capacity measuring ASMs to be approximately 92% of the capacity operated during the first half of 2019.", "summaries": "During the quarter, we agreed with Boeing to accelerate the delivery of 12 737 MAX 9 that were originally intended to be delivered starting in 2025.\nLoad factor came in at an average of 79% for the quarter, an increase compared to Q2 while operating 49% more ASMs. We reported a net profit of $8.2 million or $0.19 per share.\nExcluding special items, we would have reported a net profit of $29.9 million or $0.70 per share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Based on our Burning Glass feed, there are over 2,200 companies that have more than 20 open tech job postings right now.\nCompanies like Amazon, Microsoft and J.P. Morgan Chase have over 1,000 active tech jobs posted today.\nThe SIA is forecasting year-over-year market growth of 7%, which would get the market back to 98% of 2019 IT staffing revenue levels, representing an almost complete rebound.\nAs I mentioned last quarter, a report released by Microsoft in July predicts that the worldwide digital jobs will grow from 41 million in 2020 to 190 million in 2025.\nOf the 149 million new digital jobs to be created, 98 million are forecast to be in software development.\nFor the third quarter, we reported total revenues of $33.3 million, which was down 2% from the second quarter and 11% year-over-year.\nDice revenue was $19.8 million in the third quarter, down 3% sequentially and 13% year-over-year.\nWe ended the third quarter with 5,300 Dice recruitment package customers, which is down 3% sequentially and 13% year-over-year.\nOur average monthly revenue per Dice recruitment package customer was down 1% versus the year ago quarter to $1,122 or $13,464 on an annual basis.\nOver 90% of our Dice revenue is recurring and comes from recruitment package customers.\nOur Dice customer renewal rate was 63% for the third quarter, up from 57% last quarter, but down three percentage points year-over-year.\nOur Dice revenue renewal rate was 66%, up five percentage points from last quarter, but down 10 percentage points when compared to the same period last year.\nCurrently, approximately 13% of our customers generate 50% of our recruitment package revenue, though no one customer makes up 1% of revenue.\nClearanceJobs third quarter revenue was $7.3 million, an increase of 3% sequentially and 16% year-over-year.\nThird quarter revenue for eFinancialCareers was $6.1 million, which was down 1% sequentially and down 25% year-over-year when excluding the impact of foreign exchange rates.\nThird quarter operating expenses were $61.8 million, which includes non-cash impairment charges of both the Dice trade name of $8 million and goodwill of $23.6 million, both of which I will address in a moment.\nExcluding the impairment charges, operating expenses were $30.2 million, representing a decrease of $1.7 million or 5% year-over-year.\nIncome tax benefit for the third quarter was $1.5 million, resulting in an effective tax rate of 5%, which includes the impact of the non-cash impairment charges.\nThis rate is lower than our expected statutory rate of 25% due to nondeductible impairment charges and the allocation of loss between jurisdictions.\nAs I mentioned, during the third quarter, we recorded a non-cash impairment charges related to the Dice trade name of $8 million and goodwill of $23.6 million.\nThe $23.6 million goodwill impairment is the result of the impact of the pandemic and the expectation that a broader recovery will extend into 2021, whereas previously we expected the recovery toward the end of 2020.\nIncluding these non-cash impairment charges, we recorded a net loss for the third quarter of $27.3 million, a loss of $0.57 per diluted share, compared to net income of $4.4 million or $0.08 per diluted share a year ago.\nThis quarter's net loss was negatively impacted by $29.3 million of charges substantially from the non-cash impairments of goodwill and intangible assets.\nLast year's net income was positively impacted by $500,000 from discrete tax items.\nAdjusted diluted earnings per share for the quarter was $0.04 versus $0.07 last year.\nAdjusted EBITDA for the third quarter was $7.6 million, a margin of 23%, which was consistent with the second quarter of this year and the third quarter of last year.\nAs we stated on our last call, our goal is to manage the business to approximately 20% adjusted EBITDA margins.\nWe generated $4.4 million of operating cash flow in the third quarter, compared to $4.6 million in the prior year quarter.\nFrom a liquidity perspective, at the end of the quarter, our total debt was $37 million.\nWe had $26.8 million of cash resulting in net debt of $10.2 million.\nDeferred revenue at the end of the quarter was $41.9 million, compared to $47.2 million in the second quarter and $51.1 million in the year ago quarter.\nWhen we add the unbilled portion of our contracts to deferred revenue, our committed contract backlog at the end of the quarter was down 12% from the end of the third quarter last year.\nDuring the quarter, we repurchased approximately 349,000 shares for $854,000 or $2.45 per share.\nIn total, we have used approximately $1.4 million of the current $5 million buyback program which runs through May of 2021.\nWhile not providing specific guidance, we continue to manage the business to margins in the 20% range.", "summaries": "For the third quarter, we reported total revenues of $33.3 million, which was down 2% from the second quarter and 11% year-over-year.\nIncluding these non-cash impairment charges, we recorded a net loss for the third quarter of $27.3 million, a loss of $0.57 per diluted share, compared to net income of $4.4 million or $0.08 per diluted share a year ago.\nAdjusted diluted earnings per share for the quarter was $0.04 versus $0.07 last year.", "labels": "0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "First quarter net sales increased 9% to $229 million and exceeded the top end of our guidance.\nGross margin improved to 39% as a result of our strong operational performance.\nEPS also exceeded the high end of our guidance, and we reported earnings of $1.66 per share on a GAAP basis and record adjusted earnings of $1.92 per share.\nEV/HEV and ADAS sales increased at double-digit rates sequentially and grew more than 30% compared to Q1 of 2020.\nIt's important to note that full electric vehicles are expected to be the fastest-growing segment of this market with a CAGR of over 40%.\nFor example, our ceramic substrate content opportunity in a full EV ranges from around $25 to $40 compared to a content opportunity of approximately $5 in a 48-volt mild hybrid.\nOur content can be greater than $30 per vehicle and rises meaningfully as the battery size increases.\nThe renewable energy market is expected to grow at a 10% CAGR over the next five years, which we anticipate will continue to drive robust demand for our power semiconductor substrates.\nThese products form the core of our solutions for the EV/HEV market, which has now increased to more than 11% of total sales.\nRam has over 30 years of corporate finance experience and has held senior finance leadership positions at Rogers, where he has had responsibility for financial operations, financial planning and analysis, business transformation and treasury.\nWe delivered gross margin that was 70 basis points higher than Q4 through increased volumes and operating efficiency, despite a less favorable product mix and significantly higher commodity and freight costs.\nIn our GAAP results, we recognized $1.5 million in restructuring costs related to the footprint optimization activities communicated in our third quarter 2020 call and $1.3 million for the loss resulting from the fire at our UTIS facility, net of expected insurance proceeds.\nOur effective tax rate for Q1 was 25.2%.\nOur Q1 revenues of $229.3 million increased by $18.6 million compared to the fourth quarter, reflecting broad strength across our product markets.\nAES revenues increased 10% to $131.9 million, while EMS revenues grew 6% to $91.8 million.\nCurrency exchange rates favorably impacted first quarter revenues by approximately 1.5% compared to Q4.\nWithin RF Solutions, the Aerospace and Defense business accounted for 19% of the business segment revenues and grew 15% sequentially.\nThe ADAS business accounted for 18% of the revenues and grew 12%, and wireless infrastructure accounted for 17% of the revenues and grew 26%.\nClean energy, which is comprised of the renewable energy revenues in both the power semiconductor and the power interconnect business as well as the variable frequency drive business in the power semiconductor business, accounted for 16% of the business and grew 15% sequentially.\nEV/HEV application revenues accounted for 12% of the segment revenues and increased 2% sequentially as order timing tempered the Q1 increase in ceramic substrate revenues.\nEMS revenues grew sequentially primarily due to significant increases in nearly all applications, highlighted by a 41% increase in EV/HEV applications which accounted for 11% of the segment revenues and a 23% increase in general industrial applications, which accounted for 44% of the segment revenues.\nAs expected, revenues for the portable electronics, which accounted for 22% of the segment revenues, experienced a 31% sequential seasonal decline off a very strong second half of 2020.\nOur gross margin for the first quarter was $89.5 million or 39% of revenues, 70 basis points higher than Q4.\nAlthough our gross margin percentage increased by 70 basis points sequentially, the significant increase in copper cost meaningfully dampened our gross margin percentage in the quarter.\nAlso on slide 11, we detail the changes to adjusted net income for Q1 of $36 million compared to adjusted net income for Q4 of $29.7 million.\nThe adjusted operating income for Q1 of $43.5 million and 19% of revenues was 60 basis points higher than Q4.\nAdjusted operating expenses for Q1 of $46 million or 20.1% of revenues were 20 basis points higher than Q4 expenses.\nOther income expense was $1.2 million favorable compared to Q4.\nAs discussed earlier, Rogers' effective tax rate for the first quarter was 25.2%, higher than our forecasted rate of 22% to 23%.\nWe now expect our effective tax rate for 2021 will be 23% to 24% due to the geographic mix of pre-tax income.\nThe first -- in the first quarter, the company generated strong free cash flow of $33 million and ended the quarter with a cash position of $199.1 million.\nIn the quarter, we generated $36.5 million from operating activities, net of an increase of $10.8 million in working capital and repaid $21 million on our credit facility.\nWe ended the first quarter with an outstanding balance on our credit facility of $4 million and a net cash position of $195.1 million.\nIn Q1, the company spent $3.6 million on capital expenditures.\nDespite the low level of expenditures in the first quarter, we continue to guide capital expenditures of $70 million to $80 million in 2021, with over 50% of the expenditures to capture the accelerating advanced mobility market opportunities in both AES and EMS business segments.\nBased on the strong outlook, we are guiding our second quarter revenues to be in the range of $230 million to $240 million.\nWe guide our gross margins to be in the range of 38.5% to 39.5%, consistent with our first quarter.\nWe are guiding GAAP Q2 earnings in the range of $1.58 to $1.73 per fully diluted share, and we guide fully diluted adjusted earnings in the range of $1.80 to $1.95 per share for the second quarter.", "summaries": "EPS also exceeded the high end of our guidance, and we reported earnings of $1.66 per share on a GAAP basis and record adjusted earnings of $1.92 per share.\nOur Q1 revenues of $229.3 million increased by $18.6 million compared to the fourth quarter, reflecting broad strength across our product markets.\nBased on the strong outlook, we are guiding our second quarter revenues to be in the range of $230 million to $240 million.\nWe are guiding GAAP Q2 earnings in the range of $1.58 to $1.73 per fully diluted share, and we guide fully diluted adjusted earnings in the range of $1.80 to $1.95 per share for the second quarter.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1"}
{"doc": "Our research indicates global office leasing activity has remained subdued, with global leasing volumes down 31% compared with Q1 2020.\nEMEA showed relative resilience with a decline of 8% in the quarter, while APAC and the US saw significantly larger declines of 26% and 45%, respectively.\nIn comparison to the fourth quarter of 2020 which saw global leasing volumes down 43% for the quarter, it is clear that the trajectory is trending in the right direction.\nInvestment sales also continued to show signs of recovery, with global volumes down 13% versus the same period last year following a 21% decline in the fourth quarter and 44% in the third.\nIn local currency, consolidated revenue fell 4% to $4 billion and fee revenue declined 7% to $1.4 billion.\nAdjusted EBITDA of $190 million represented an increase of 96% from the prior year, with adjusted EBITDA margin increasing 700 basis points to 13.4% in local currency driven by discrete items of approximately $50 million, ongoing cost mitigation initiatives and a better-than-expected performance in our transaction-based service lines.\nOur adjusted net income totaled $109.7 million for the quarter, resulting in adjusted diluted earnings per share of $2.10.\nOur adjusted EBITDA margin improved 700 basis points year-over-year, driven primarily by the discrete items and cost reduction measures we instituted over the past several quarters.\nOur overall real estate services fee revenue declined 6% in the first quarter, an improvement from the 17% decline in the fourth quarter.\nThe real estate services adjusted EBITDA margin was 12.7%, which compares with 8.5% a year earlier.\nAbsent discrete items, which include $35 million of noncash valuation increases to investments by JLL Technologies and early stage prop tech companies as well as an $8 million multifamily loan loss reserve release this year and the $31 million increase to the corresponding reserve a year ago, the real estate services adjusted EBITDA margin would have been relatively flat year-over-year.\nAccording to JLL Research, the decline in net effective rents in offices across major US cities stabilized in the first quarter, down approximately 13% since the beginning of the pandemic.\nAlso, after four consecutive quarters of declines, average lease terms increased, albeit slightly from 7.1 years from 6.7 years.\nFrom a profitability standpoint, the Americas adjusted EBITDA margin increased approximately 700 basis points.\nOur Corporate Solutions business fee revenue grew 2%.\nFee revenue declined 17%, primarily on lower transaction fees and the expected absence of incentive fees.\nWe continue to forecast full year 2021 incentive fees of approximately $25 million, with about 1/4 of those hitting in the second quarter.\nThe 8% decline in advisory fees was primarily attributable to pandemic-driven AUM valuation declines.\nLaSalle's assets under management grew about $2 billion or 3% from the prior quarter to total $71 billion.\nLaSalle's equity earnings reflect $13 million of noncash valuation increases in our co-investment portfolio, which compares with a $40 million decrease in estimated fair value a year earlier at the onset of the pandemic.\nAs discussed on our last earnings call, we allocate capital by adhering to our framework, maintaining an investment-grade balance sheet, driving future growth through organic and inorganic investments in the business and returning 20% of free cash flow to shareholders over the long term.\nAt the end of March, reported leverage was 0.7 times, within our targeted range and seasonally up from 0.2 times at the end of December.\nOur liquidity stood at $2.9 billion, with 87% available on our $2.75 billion revolving credit facility.\nLower incentive compensation payouts from prior year performance and our ongoing focus on improving capital efficiency helped drive a nearly $100 million improvement in the free cash flow deficit compared to the prior year.\nWe continue to expect to operate within a 14% to 16% long-term adjusted EBITDA margin target range for the full year.\nFurther, JLL Research predicts that by Labor Day, US office physical occupancy levels will top at least 50%, up significantly from the levels observed through the first quarter of approximately 15%.\nIn signing the climate pledge, we announced our aim to achieve net zero carbon emissions by 2040 across all areas of our operations, including the client sites we manage globally.", "summaries": "Our adjusted net income totaled $109.7 million for the quarter, resulting in adjusted diluted earnings per share of $2.10.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "As you know, our Q4 growth rates were impacted by the unprecedented demand we experienced in 2020 when at-home food consumption surged due to the onset of the pandemic and organic net sales increased 21.5%.\nAnd as you can see, on a two-year CAGR basis, organic net sales for the fourth quarter increased by more than 4% and our two-year adjusted earnings per share grew by more than 22%.\nGrowth in our $1 billion e-commerce business continued in fiscal 2021, both against our peers and as a percentage of our overall retail sales.\nE-commerce sales now represent nearly 8% of our total retail sales.\nTotal Conagra retail sales grew an impressive 11.7% on a two-year basis in the fourth quarter with contributions from each of our retail domains.\nOn a two-year basis, we delivered double-digit growth rates in retail sales across our frozen and snacking domains and a solid 5.2% growth rate in staples.\nAll in, our strategic frozen business grew 13.5% over the two-year period ending in fiscal 2021.\nOur snacks business has seen similar success, delivering strong two-year retail sales growth of 21% in fiscal '21, led by increases of more than 25% across hot cocoa, microwave popcorn, ready-to-eat pudding, and meat snacks.\nStaples retail sales increased 5.2% over the past two years, spurred by steady growth across key staples categories.\nOrganic net sales growth is expected to be roughly flat to fiscal '21.\nThis results in a CAGR over the three years ending fiscal '22 of approximately 3.5%, compared to our original target of 1% to 2%.\nAdjusted operating margin is expected to be approximately 16%, and adjusted earnings per share is expected to be approximately $2.50.\nWe delivered strong growth for the full fiscal year, including a 5.1% increase in organic net sales; adjusted operating profit of nearly $2 billion, up 7.4% versus fiscal '20; and operating margin of 17.5% for the year, an increase of more than 100 basis points versus fiscal '20; an adjusted EBITDA increase of 6.5%; and adjusted earnings per share growth of 15.8% for the year.\nOur 10.1% decrease in organic net sales during the quarter was driven by a 12.8% decline in volume due to the comparison to last year's demand surge.\nThe impact of the volume decline was partially offset by a 2.7% benefit from favorable mix and the initial pricing actions we took in response to the elevated inflationary environment, which I will describe in further detail shortly.\nDivestitures drove a 150-basis-point decline to net sales for the quarter, and we faced an additional headwind of 560 basis points from the lapping of last year's 53rd week.\nFinally, we experienced a 50 basis point benefit from foreign exchange during the quarter.\nCombined, these factors drove a 16.7% decline in net sales for the quarter compared to a year ago.\nThe bottom half of the slide highlights the drivers of our net sales growth for full-year fiscal '21 versus the prior year with an increase in organic net sales of over 5% driven by volume growth and favorable price mix actions.\nAs you can see, our team did a great job pulling on our margin levers in the quarter, including taking price increases in several retail categories driving favorable mix throughout the portfolio, capturing $20 million of synergies associated with the Pinnacle Foods acquisition, managing our COVID-19-related costs, which were $36 million in the quarter and continuing to drive strong supply chain productivity.\nCOGS inflation continued to accelerate as the quarter progressed, ultimately landing at 8.6%, which was above the Q4 expectations we shared at the end of Q3.\nWe also increased our A&P by 27% in the quarter as we continue to identify opportunities for strong ROIs on these investments, particularly within e-commerce.\nAs I noted earlier, our adjusted earnings per share of $0.54 was in line with our expectations despite higher-than-expected inflation.\nThe decline in adjusted operating profit and the impact of last year's 53rd week affected our results by $0.23 and $0.05, respectively, shown here on Slide 35.\nWe ended the year with a net debt to EBITDA ratio of 3.6 times, which is in line with our fiscal '21 target.\nDuring fiscal '21, we increased CAPEX by more than $130 million compared to the prior year and funded important capacity and productivity projects.\nWe also repurchased nearly $300 million worth of shares and paid $475 million in dividends in fiscal '21.\nGiven the timing of the closure, this sale had a minimal impact on our Q4 results, but we expect there to be an annualized net sales impact of roughly $40 million going forward.\nWe estimate that the sale will have a total annualized impact on our earnings per share of approximately $0.01.\nFor fiscal '22, we now expect organic net sales growth approximately flat to fiscal '21, adjusted operating margin of approximately 16%, and adjusted earnings per share of approximately $2.50.\nWhen we initially gave our fiscal '22 targets at our Investor Day in April of 2019, our models assumed an annual inflation rate of around 3%.\nAt the time of our third-quarter call in April of 2021, we expected fiscal '22 inflation to come in at twice that level around 6%.\nWe now currently expect fiscal '22 inflation to come in around 9%.\nThe difference between the 6% we expected a few months ago and the 9% we expect today equates to approximately $255 million in additional costs during fiscal '22.\nFor example, certain pricing actions can take 90 days to enact or a cost savings initiative may not be actionable until later in the year when a contract is up for review.\nFirst, consistent with our prior divestitures, we are removing $0.01 for the Egg Beaters divestiture that we announced today.\nSecond, the largest driver of the change is the significant $0.41 per share increase in inflation since Q3 that I just discussed.\nI'm pleased that our strong balance sheet and our confidence in the long-term health and profitability of the business have put us in a position to raise our quarterly dividend to $0.3125 or $1.25 on an annualized basis beginning in September.\nThis new dividend level represents a 50% payout ratio based on our fiscal '22 earnings per share guidance, which is in line with our longer-term targets.\nAs some of you remember, when we sold our private label business in 2016, we incurred a tax capital loss of approximately $4 billion that we could apply as a carryforward to offset capital gains generated through fiscal year-end '21.", "summaries": "Organic net sales growth is expected to be roughly flat to fiscal '21.\nAdjusted operating margin is expected to be approximately 16%, and adjusted earnings per share is expected to be approximately $2.50.\nThe impact of the volume decline was partially offset by a 2.7% benefit from favorable mix and the initial pricing actions we took in response to the elevated inflationary environment, which I will describe in further detail shortly.\nAs I noted earlier, our adjusted earnings per share of $0.54 was in line with our expectations despite higher-than-expected inflation.\nFor fiscal '22, we now expect organic net sales growth approximately flat to fiscal '21, adjusted operating margin of approximately 16%, and adjusted earnings per share of approximately $2.50.\nSecond, the largest driver of the change is the significant $0.41 per share increase in inflation since Q3 that I just discussed.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "For example, our recent Mycophenolate approval was achieved in just under 10 months, the third such product we developed to achieve so called first cycle approval in the past few years.\nWe also formed a new strategic alliance partnership to launch Sevoflurane, a product with relatively few competitors and a market size of about $190 million based on IQVIA data.\nWe implemented and completed the cost reduction plan that included consolidating our R&D functions to a single location and lowered operating costs by approximately $15 million annually.\nFirst, we extended the maturity of our debt to 2026 from 2022, which is now after several of our larger and more meaningful pipeline assets are expected to launch and contributed to a reduction in our debt.\nWe continue to launch products [Indecipherable] approximately 13 ANDAs pending at the FDA including partner products, plus four additional products that are approved and pending launch.\nWe also have more than 20 products in development and expect to add more from both external and internal efforts.\nThe development arc for this product should be approximately 12 months to 18 months behind the generic Flovent Diskus product.\nRegarding biosimilar Insulin Aspart, the development of the product continues and we currently anticipate a potential launch of the product about 15 months following Insulin Glargine.\nWe also see opportunities to leverage our USA clinical data, 10 development and related IP, along with the manufacturing capacity at HEC to form a strategic alliance with third parties looking to accelerate their access to insulin products in international markets such as Europe.\nWe continue to believe that the exciting products in our advancing and expanding pipeline still have the potential to transform our firm into $1 billion company by 2025.\nFor the 2021 fourth quarter, net sales were $106.0 million, compared with $137.9 million for the fourth quarter of last year.\nGross profit was $26.4 million or 25% of net sales, compared with $48.9 million or 35% of net sales for the prior year fourth quarter.\nR&D expenses declined to $6.0 million from $6.6 million.\nSG&A expenses declined to $15.5 million from $15.6 million.\nOperating income was $4.9 million, compared with $26.7 million.\nInterest expense increased to $12.1 million from $11.3 million in last year's fourth quarter.\nNet loss was $7.4 million or $0.19 per share versus net income of $13.4 million or $0.31 per diluted share.\nAdjusted EBITDA was $12.1 million.\nAt June 30, 2021, cash and cash equivalents totaled approximately $93 million, up from $81 million at March 31.\nAccordingly, we expect to maintain a healthy cash position throughout the year and end fiscal 2022 with approximately $80 plus million.\nAs for our liquidity, we also have access to our $45 million credit facility, which today we have not drawn upon.\nFor fiscal 2022, we expect net sales in the range of $400 million to $440 million, adjusted gross margin as a percentage of net sales of approximately 23% to 25%, adjusted R&D expense in the range of $26 million to $29 million, adjusted SG&A expense ranging from $58 million to $61 million, adjusted interest expense of approximately $52 million, the full year adjusted effective tax rate in the range of 21% to 22%, adjusted EBITDA in the range of $40 million to $55 million, and lastly, capital expenditures to be approximately $12 million to $18 million.", "summaries": "First, we extended the maturity of our debt to 2026 from 2022, which is now after several of our larger and more meaningful pipeline assets are expected to launch and contributed to a reduction in our debt.\nNet loss was $7.4 million or $0.19 per share versus net income of $13.4 million or $0.31 per diluted share.\nFor fiscal 2022, we expect net sales in the range of $400 million to $440 million, adjusted gross margin as a percentage of net sales of approximately 23% to 25%, adjusted R&D expense in the range of $26 million to $29 million, adjusted SG&A expense ranging from $58 million to $61 million, adjusted interest expense of approximately $52 million, the full year adjusted effective tax rate in the range of 21% to 22%, adjusted EBITDA in the range of $40 million to $55 million, and lastly, capital expenditures to be approximately $12 million to $18 million.", "labels": "0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n1"}
{"doc": "Base business net sales, which excludes Crisco, grew at plus 9.2% versus the same period two years ago, accelerating from plus 7% in Q2.\nFor the current portfolio, the goal is roughly an 18% adjusted EBITDA margin, with pricing and productivity actions recovering cost pressures on margins.\nLonger term, our goal is to improve to a 20% adjusted EBITDA margin with a creative M&A, efficiencies and some base business organic growth.\nWhile shutting a factory is never an easy decision, it became clear the 100 year old Portland facility had reached the end of its useful life and was no longer cost competitive.\nWe reported net sales of $515 million adjusted EBITDA before COVID-19 expenses of $96.4 million.\nAdjusted EBITDA of $96.2 million, and adjusted diluted earnings per share $0.55.\nAdjusted EBITDA both before and after COVID-19 expenses, as a percentage of net sales was 18.7%.\nNet sales of $550 million was up $19.2 million, or 3.9% from Q3 2020, up $108.7 million, or 26.7% from pre-pandemic 2019.\nCrisco which we acquired in December 2020 generated $71.2 million of net sales in Q3 2021 ahead of our forecast for the quarter, and well ahead of our understanding of 2018 net sales for the same time period under prior ownership.\nBased business net sales, which primarily excludes Crisco decreased by $52.1 million, or 10.5%, in the third quarter of 2021, when compared to the third quarter of 2020.\nAs a reminder, when comparing to our previous performance in our base portfolio Q3 2020 not only included COVID-19 enhanced sales, but also the benefit of an extra week due the timing of our 53rd week in 2020, which we estimate benefited net sales for the third quarter of 2020 by approximately $35 million.\nThe negative comparisons to 2020 are driven by a decline of $68.5 million in unit volume, which is offset in part by $14.5 million benefit from an increase net pricing, inclusive of list price increases trade spend optimization, and a little bit of mix.\nForeign exchange added $1.9 million of benefit.\nOn a year-to-date basis, the cumulative benefit of net pricing index is approximately $27.3 million.\nBase business net sales, which primarily excludes Crisco were up 9.2% compared to 2019, representing a two-year compound annual growth rate of 4.5% over our pre-pandemic net sales.\nWe generated adjusted EBITDA of $96.2 million in the third quarter, a decrease of $8.4 million or 8.1% when compared to the prior year period, but an increase of $10 million, or 11.5% compared to 2019.\nAdjusted diluted per share was $0.55 in Q3 2021 compared to $0.74 per share in Q3, 2020 and $0.54 per share in Q3 2019.\nNet sales of Ortega were $37.6 million in the third quarter of 2021 represent an increase of $1.6 million or 4.2% compared to the third quarter of 2020 and an increase of $2.6 million or 7.3% when compared to the third quarter of 2019.\nNet sales of Las Palmas were $9.1 million in the third quarter of 2021, representing an increase of $2.5 million or 37.1%, when compared to the third quarter of 2020, and an increase of point $6 million, or 7.3%, when compared to the third quarter of 2019.\nNet sales of our spices and seasonings including our legacy brands such as accent and Dash, and the brands that we acquired in 2016, such as Tones and Weber were approximately $92.9 million, a little bit less than 20% of our total company net sales for the quarter.\nNet sales of spices & seasonings were down by approximately $14 million or 13.1% compared to Q3 2020.\nWhen comparing Q3 2019, net sales of spices & seasonings were quite strong and increased by approximately $10.3 million or 12.5%.\nGreen Giant generated net sales of $141.2 million in the third quarter of 2021, which well down $17 million or 10.7% when compared to Q3 2020 is up $20.9 million or 17.4% when compared to Q3 2019.\nAmong our other large brands, Maple Grove Farms, which generated $20.2 million in net sales for the quarter was down $0.5 million or 2.4% compared to Q3 2020 and up $2.7 million or 15.3% compared to Q3 2019.\nSimilarly, Cream of Wheat, which generated $15.2 million in net sales for the quarter was down $1.2 million or 7.4% from Q3 2020, but up $1.2 million or 8.5% compared to Q3 2019.\nWe generated $105.7 million in gross profit for the third quarter of 2021 or 20.5% of net sales.\nExcluding the negative impact of a $14.1 million accrual for the estimated present value of a multi-employer pension plan withdrawal liability that we expect to incur upon the closing of our Portland manufacturing facility and $2.8 million of acquisition, divestiture related in non-recurring expenses, including cost of goods sold during the third quarter of 2021, gross profit would have been $122.6 million or 23.8% of net sales.\nGross profit was $136 million for the third quarter of 2020 or 27.4% of net sales, excluding the impact of $0.1 million of acquisition divestiture-related and non-recurring expenses, included in cost of goods sold during the third quarter of 2020, gross profit would have been $136.1 million or 27.5% of net sales.\nSelling general and administrative expenses were $46.4 million for the quarter or 9% of net sales.\nThis compares to $43.4 million, or 8.8% for the prior year, and $38.1 million or 9.4% in the third quarter of 2019.\nThe dollar increase in SG&A compared to a year ago levels is almost entirely driven by a $3.5 million increase in warehousing costs coupled with $3.3 million incremental acquisition related and non-recurring expenses, which primarily relate to the acquisition and integration of the Crisco brand and the sale of our Portland facility.\nAs I mentioned earlier, we generated $96.4 million in adjusted EBIT DA before COVID-19 expenses, and $96.2 million in adjusted EBITDA in the third quarter of 2021.\nThis compared to adjusted EBITDA of $104.6 million in Q3, 2020, and $86.2 million in Q3 2018.\nInterest expense for the quarter was $26.6 million, compared to $26.4 million in the third quarter last year.\nThe revolver currently costs us a little less than 2% in interest, and the term loans a little less than two or three quarters percent.\nDepreciation expense was $15.3 million in the third quarter of 2021, compared to $10.9 million in last year's third quarter.\nAmortization expense was $5.4 million in the third quarter of 2021 compared to $4.7 million in last year's third quarter.\nWe are tracking to an effective tax rate of approximately 26% to 26.5% for the year, with taxes a little higher and this year's third quarter, due to some discrete tax items at an effective rate of 26.8% for the quarter compared to 24.7% in last year's third quarter.\nWe generated $0.55 in adjusted diluted earnings per share in the third quarter of 2021 compared to $0.74 per share in Q3, 2020 and $0.54 per share in Q3 2018.\nAnd while adjusted EBITDA margins will remain challenge this year due to higher than expected input cost inflation, including increased cost of raw materials, factory costs, transportation and warehouse costs, we also expect to generate adjusted EBITDA of $358 million to $365 million for the year.\nInterest expense of $105 million to $110 million, including cash interest of $100 million to $105 million, depreciation expense of $60 million to $65 million, amortization expense of $21 million to $22 million, and an effective tax rate of approximately 26% to 26.5%.", "summaries": "We reported net sales of $515 million adjusted EBITDA before COVID-19 expenses of $96.4 million.\nAdjusted EBITDA of $96.2 million, and adjusted diluted earnings per share $0.55.\nAdjusted diluted per share was $0.55 in Q3 2021 compared to $0.74 per share in Q3, 2020 and $0.54 per share in Q3 2019.\nWe generated $0.55 in adjusted diluted earnings per share in the third quarter of 2021 compared to $0.74 per share in Q3, 2020 and $0.54 per share in Q3 2018.", "labels": 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{"doc": "Strong operating income and rising portfolio valuations drove exceptional financial results for the second quarter, including GAAP earnings of $0.66 per diluted share, well in excess of our $0.18 per share dividend for the second quarter.\nThis contributed to a 6.5% increase in our GAAP book value to $11.46 per share at June 30th.\nMany of forecasted residential non-agency origination volumes have significantly increased in 2021 from the $435 billion of originations in 2020.\nAgainst this backdrop, in the second quarter, we still locked close to $4 billion of jumbo loans at margins in the high end of our historical target range.\nLeveraging a well-earned reputation as a nimble and reliable lifecycle lender, CoreVest our BPL platform eclipse $500 million of fundings for the quarter and a balance of single family rental and bridge originations.\nIn the first half of 2021 approximately 70% of Redwood's adjusted revenue was driven by our mortgage banking operations with the remaining 30% from our investment portfolio.\nAs we note in our updated investor supplement, there are now 13 states in which we have a lot more loans year-to-date than in each of the two years prior to the pandemic.\nCollectively, locks in these states represent 35% of our year-to-date volume, a trend we continue to track with great interest.\nOverall market observers now forecast single family home price appreciation for 2021 to be 14% and 16% for existing and new homes respectively.\nFurthermore, caps in place since earlier this year on GSE purchases of non owner-occupied loans could expand on non-agency market by an estimated $25 to $35 billion per year.\nReflecting these supply demand dynamics, single-family rental occupancy rates remain at record highs with a weighted average of 95% for all US single-family rental homes, and single-family rents have remain meaningfully more than multifamily rents since early last year.\nAs Brooke will elaborate on book value increased 6.5% driven by a mix of asset appreciation through fair value changes and retained earnings from mortgage banking income earned at our taxable REIT subsidiary.\nCollectively, our platforms distributed $3.6 billion of loans through direct loan sales and 4 securitizations.\nFollowing a historic first quarter, our residential business registered $3.9 billion of lock volume in Q2.\nAs anticipated, purchase money loans were a key driver and represented a 60% share of the quarter lock volume.\nDespite the interest rate backdrop and competitive pressures impacting GSE eligible production, the business delivered margins at the high end of our historical target range of 75 to 100 basis points reflecting the diversity of our distribution channels and strength of our pipeline management amid broader market volatility.\nDuring the second quarter, we sold $1.8 billion of loans and completed 3 Sequoia securitizations for $1.5 billion.\nChoice represented 15% of our locks in the second quarter, up materially from 5% in Q1.\nChoice represented as much as 40% of our locks pre-pandemic, a reminder of how meaningful this channel can be.\nCoreVest originated $527 million overall in the second quarter, up 37% from Q1.\nOur funding mix consisted of $312 million of single family rental loans and $215 million of bridge loans.\nBridge production was up over 60% from Q1, an increase for the fourth consecutive quarter driven by increased usage by borrowers on lines of credit and several build-for-rent and multifamily loans coming online for funding.\nIn all, 67% of total originations in the second quarter were from repeat customers and the pipeline remains strong with a consistent mix of new loans and refinance opportunities.\nSFR production remains strong in the second quarter with fundings up 23% from Q1.\nLast week's follow on transaction once again priced at all time tights including a spread of 57 basis points on the AAA-rated securities.\nWe have now completed optional calls on two CoreVest securitizations, refinancing many of the underlying loans with a platform made 5 or more years ago.\nSince formally launching Horizons earlier this year, we have completed 5 investments in our assessing an exciting pipeline of new opportunities.\nWe reported GAAP book value per share of $11.46 at June 30th, a 6.5% increase relative to the prior quarter end.\nThe primary drivers of the $0.70 increase in book value per share or GAAP earnings of $90 million or $0.77 per basic share, partially offset by our quarterly dividend of $0.18 per share.\nWe are pleased to have maintained a strong momentum for the first quarter, generating a total economic return on book value of 19% for the first half of 2021.\nOur economic return spotlights not only our growth in book value, but also to our growth in our dividend which we raised by another 13% in the second quarter.\nThese are particularly strong results this quarter from our business purpose mortgage banking operations, which delivered a 52% after-tax operating return on capital with the net operating contribution of $20 million, which is up 80% from Q1 on a 37% increase in origination volumes.\nIncome from residential mortgage banking operations decreased from historic first quarter level while still delivering an after-tax operating return of 17%.\nEven as loan purchase commitments were down 22% Q2 still marks our second highest volume on record.\nTurning to the investment portfolio, we had $49 million of positive investment fair value changes primarily from our RPL assets, even further spread tightening, and improved credit performance this quarter which I'll expand upon shortly.\nNet interest income increased approximately 20% or nearly $5 million from the first quarter of 2021 due to higher average balance of loans and inventory at our operating businesses, higher yield maintenance income from SFR securities, growth in our bridge loan portfolio and a decline in interest expense from our investment portfolio.\nShifting to the tax side, we had retaxable income of $0.11 per share versus $0.09 in the first quarter, primarily on higher net interest income.\nOur taxable REIT subsidiaries earned $0.27 per share in Q2, down from $0.47 in Q1.\nThe decrease was primarily driven by lower mortgage banking income, partially offset by lower operating expenses and resulted in a $5 million lower tax provision for the quarter.\nOn a combined basis, our operating businesses generated an annualized after-tax return of over 28% in Q2, utilizing $483 million of average capital.\nSpecifically, we deployed $45 million of capital to Brisbane during the quarter and $50 million to SFR securities in core loans.\nWorking capital for our mortgage banking businesses represented less than 30% of our allocated capital, but produced approximately 65% of our adjusted revenue for the second quarter.\nWe settled the call rights on three Sequoia securitizations and one capital securitization during the second quarter, acquiring $83 million of seasoned jumbo loans and $45 million of seasoned SFR loans all at par, which benefited book value by $0.05 per share.\nWe estimate about $250 million to $300 million of expected call activity across capital and Sequoia through the remainder of the year and we estimate at current market conditions the underlying loans can generally be sold or resecuritized well above their par value creating further potential upside to earnings and book value of approximately $0.68 per share for 2021.\nFurthermore, we project another $2 billion of loans that could become callable by the end of 2024 with the majority of those currently expected to occur by the end of 2022, and that could potentially add another $0.63 to $0.65 per share on average to book value depending on execution.\nSpecifically Choice and RPL securities experience improved 90-day delinquencies during the quarter with select remaining flat from Q1 and absolute low levels of 80 basis points.\nWe added over $750 million of financing capacity to support growth of our operating platforms including the refinance of a $242 million bridge loan financing which contributed to a roughly 100 basis point cost of funds improvement for our overall investment portfolio.\nImportantly, the second quarter marked another record for Redwood with combined $3.3 billion of residential whole loan sales and securitizations underscoring our ability to source and distribute in side.\nOur recourse leverage was marginally higher at 2.2 times at the end of the second quarter as we incurred additional warehouse borrowings to finance higher loan inventory.\nAt June 30th our unrestricted cash was $421 million, which is over half the size of our outstanding marginable debt, and at quarter end, our investable capital was $175 million, not including $100 million of incremental capital generated from a secured term financing we closed in early July.\nAs we look ahead, we remain on track to keep pace with the robust volumes we've seen through the first half of the year anticipating another $6 to $8 billion of jumbo lock and approximately $1 billion of BPL originations for the second half of the year, which would have nearly doubled the volume of that business year-over-year.\nFor the remainder of the year, we anticipate generating an adjusted return on allocated capital between 20% to 25% from our mortgage banking operations, and 10% to 12% for the investment portfolio.\nAnd finally, in terms of the potential sources and book value upside we began the year with $444 million of net accretable discount in our portfolio, and even after growing book value of $1.55 per share or roughly $175 million since that time we have approximately $2.60 per share or $300 million of remaining discount in the portfolio that we have the potential to recognize over time.", "summaries": "Strong operating income and rising portfolio valuations drove exceptional financial results for the second quarter, including GAAP earnings of $0.66 per diluted share, well in excess of our $0.18 per share dividend for the second quarter.\nThis contributed to a 6.5% increase in our GAAP book value to $11.46 per share at June 30th.\nWe reported GAAP book value per share of $11.46 at June 30th, a 6.5% increase relative to the prior quarter end.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "During the fourth quarter, we continued to execute our downsizing plans, first disclosed in October, including closing various facilities and scrapping equipment.\nIn addition, we reduced headcount by approximately 21% since the end of the second quarter.\nDuring the fourth quarter, we recorded additional impairment and other charges of $10.6 million related primarily to severance and underutilized assets, bringing the total of impairment and other charges to $82.3 million in 2019.\nFor the fourth quarter of 2019, revenues decreased to $236 million compared to $376.8 million in the prior year.\nAdjusted operating loss for the fourth quarter was $17.3 million compared to an operating profit of $19.7 million in the fourth quarter of the prior year.\nAdjusted EBITDA for the fourth quarter was $23.2 million compared to EBITDA of $61.7 million in the same period of the prior year.\nFor the fourth quarter of 2019, RPC reported a $0.07 adjusted loss per share compared to a $0.06 diluted earnings per share in the prior year.\nCost of revenues during the fourth quarter of 2019 was $176.9 million or 75% of revenues compared to $274.4 million or 72.8% of revenues during the fourth quarter of 2018.\nSelling, general and administrative expenses decreased to $36.8 million in the fourth quarter compared to $40 million in the fourth quarter of the prior year and this was due to lower employment costs.\nDepreciation and amortization expense was $40.3 million during the fourth quarter of 2019, a decrease of 5.2% compared to $42.6 million in the prior year.\nTechnical Services segment revenues for the quarter decreased 38.7% compared to the same quarter of the prior year.\nExcluding impairment and other charges, we incurred an operating loss of $17.2 million in the fourth quarter of 2019 compared to 19.9% [Phonetic] operating profit in the prior year.\nOur Support Services segment revenues for the quarter decreased 13.2% compared to the same quarter in the prior year.\nOperating profit in the fourth quarter of 2019 was $1.2 million compared to $2.5 million in the prior year.\nOn a sequential basis, RPC's fourth quarter revenues decreased 19.5% to $236 million from $293.2 million in the third quarter due primarily to pronounced seasonally lower activity levels and slightly lower pricing.\nCost of revenues during the fourth quarter of 2019 decreased by $48.3 million or 21.5% due to lower activity levels and our cost reduction actions.\nAs a percentage of revenues, cost of revenues decreased from 76.8% in the third quarter to 75% in the current quarter due primarily to a favorable job mix within RPC's pressure pumping service line.\nSelling, general and administrative expenses decreased to $36.8 million during the fourth quarter of the current year compared to $42.6 million in the prior quarter.\nRPC generated an adjusted operating loss of $17.3 million during the fourth quarter of 2019 compared to an adjusted operating loss of $21 million in the prior quarter.\nOur adjusted EBITDA was $23.2 million compared to adjusted EBITDA of $22.8 million in the prior quarter.\nOur Technical Services segment revenues decreased by 55.6% [Phonetic] or 20.3% to $218.9 million in the fourth quarter.\nThe Technical Services segment incurred a $17.2 million operating loss in the current quarter compared to an operating loss of $18.2 million in the prior quarter.\nOur Support Services segment revenues in the fourth quarter were $17.1 million compared to $18.8 million in the prior quarter.\nOperating profit was $1.2 million in the fourth quarter compared to $1.6 million operating profit in the prior quarter.\nAt the end of the fourth quarter, RPC operated 10 pressure pumping fleets.\nAt year-end '19, RPC's pressure pumping fleet totaled approximately 735,000 hydraulic horsepower.\nFourth quarter 2019 capital expenditures were $41.4 million and the full-year total of $250.6 million and we currently estimate 2020 capex to be approximately $80 million.\nDespite the challenging environment during 2019 and approximately $250 million of capital expenditures, we ended the year with $50 million in cash and no debt.", "summaries": "During the fourth quarter, we continued to execute our downsizing plans, first disclosed in October, including closing various facilities and scrapping equipment.\nDuring the fourth quarter, we recorded additional impairment and other charges of $10.6 million related primarily to severance and underutilized assets, bringing the total of impairment and other charges to $82.3 million in 2019.\nFor the fourth quarter of 2019, revenues decreased to $236 million compared to $376.8 million in the prior year.\nFor the fourth quarter of 2019, RPC reported a $0.07 adjusted loss per share compared to a $0.06 diluted earnings per share in the prior year.\nOn a sequential basis, RPC's fourth quarter revenues decreased 19.5% to $236 million from $293.2 million in the third quarter due primarily to pronounced seasonally lower activity levels and slightly lower pricing.", "labels": "1\n0\n1\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Third quarter pre-tax core operating earnings and AFG's Property and Casualty Insurance segment were 60% higher than the comparable prior year period, and each of our Specialty Property and Casualty groups reported healthy growth and excellent underwriting margins.\nThis year, market conditions in the Property and Casualty business remain among the best I've seen in my 40 plus year career.\nAs you'll see on Slide 3, AFG reported core net operating earnings of $2.71 per share, an impressive 96% increase year-over-year.\nThe increase was primarily the result of substantially higher underwriting profit in our Specialty P&C insurance operations and significantly higher P&C net investment income due to the continued strong performance of AFG's $1.7 billion and alternative investments.\nAnnualized core operating return on equity in the third quarter was nearly 18%.\nTurning to Slide 4, you'll see the third quarter 2021 net earnings per share of $2.56 included non-core after-tax realized losses on securities of $0.15 per share, most of which pertain to fair value adjustments on securities that we continue to hold at the end of the quarter.\nThe details surrounding our $16.4 billion investment portfolio are presented on Slides 5 and 6.\nPre-tax unrealized gains on AFG's fixed maturity portfolio were $225 million at the end of the third quarter.\nFor the nine months ended September 30, 2021, P&C net investment income was approximately 66% higher than the comparable 2020 period and included significantly higher earnings from alternative investments.\nThe annualized return on alternative investments reported in core operating earnings in the third quarter of 2021 was a very strong 20.3%.\nThe average annual return on these investments over the past five calendar years was approximately 10%.\nExcluding the impact of alternative investments, P&C net investment income for the nine months ended September 30, 2021 decreased by 8% year-over-year, reflecting lower market interest rates.\nAs you can see on Slide 6, our investment portfolio continues to be high quality with 88% of our fixed maturity portfolio rated investment grade and 97% of our P&C group fixed maturities portfolio with an NAIC designation of 1 or 2, its highest two categories.\nOur excess capital was approximately $3 billion at September 30, 2021.\nThis number included parent company cash and investments of approximately $2.7 billion.\nYear-to-date, AFG has declared $24 per share and special dividends.\nWhile all AFG's excess capital is available for internal growth and acquisitions, approximately $180 million of excess capital can be used for share repurchases and additional special dividends while staying within our most restrictive debt to capital guideline.\nThis figure is in addition to our regular quarterly dividend and a $4 per share special dividend declared and accrued in September and paid at the beginning of October, and the $4 per share special dividend declared yesterday.\nAnnualized growth and book value per share plus dividends was an outstanding 37% in the first nine months of 2021.\nBook value per share excluding unrealized gains related to fixed maturities was $59.70 at September 30, 2021 compared to $63.61 per share.\nAt the end of 2020 and reflects the $21.5 per share and dividends declared during the first nine months of 2021.\nThird quarter pre-tax core operating earnings in AFG's Property and Casualty Insurance segment establish another record for the third time this year at $329 million.\nSpecialty Property and Casualty Insurance operations generated an underwriting profit of $169 million in the 2021 third quarter, an impressive 63% increase year-over-year, driven primarily by higher year-over-year underwriting profit in our Specialty Casualty Group and to a lesser extent our Specialty Financial Group.\nDespite the impact of Hurricane Ida and other natural disasters during the quarter, our catastrophe losses were very manageable at $31 million.\nEach of our Specialty Property and Casualty Groups reported strong premium growth, underwriting margins across our portfolio of businesses were excellent, and overall Specialty P&C combined ratio of 89%.\nThe third quarter 2021 combined ratio improved 3.1 points from the 92.1% reported in the comparable prior year period and included 2 points of catastrophe losses and 5.4 points of favorable prior year reserve development.\nAverage renewal pricing across our entire Property and Casualty group was up approximately 11% for the quarter.\nExcluding our workers' comp business, renewal pricing was up approximately 13% in the third quarter.\nGross and net written premiums for the third quarter of 2021 were up 19% and 16% respectively when compared to the third quarter of last year.\nProperty and Transportation Group reported an underwriting profit of $45 million in the third quarter of '21 compared to $47 million in the third quarter of 2020.\nKnowing what we know at this point, we also expect to have an above average crop year from both the profitability and a growth standpoint with net written premiums projected to be up approximately 32% for this year.\nAbout 40% of our MPCI corn and soybean business is in the eastern corn belt, where growing conditions were more favorable.\nCorn and soybean harvest pricing settled at 17% percent and 4% higher respectively than spring discovery pricing, and was comfortably within desired ranges of volatility.\nThe third quarter 2021 gross and net written premiums in this group were 26% and 22% higher respectively than the comparable prior year period, with growth reported in all businesses in this group.\nOverall, renewal rates in the Property and Transportation Group increased 5% on average for the third quarter of '21.\nThe Specialty Casualty Group reported an underwriting profit of $110 million in the 2021 third quarter compared to $53 million last year.\nThis Group reported a very strong 82 calendar year combined ratio for the third quarter, an impressive improvement of 8.7 points from the comparable period in 2020.\nGross and net written premiums for the Specialty Casualty Group increased 15% and 14% respectively when compared to the same prior year period.\nRenewal pricing for this group was up 13% in the third quarter and excluding workers' compensation businesses, renewal rates in this group were up approximately 18%.\nNow the Specialty Financial Group reported an underwriting profit of $26 million in the third quarter of 2021 compared to an underwriting profit of $13 million in the third quarter of 2020.\nThis group continued to achieve excellent underwriting margins and reported an 84.2 combined ratio for the third quarter.\nGross and net written premiums increased by 9% and 8% respectively in the 2021 third quarter when compared to the prior year period and nearly all businesses in this group reported growth, including our surety, fidelity and crime and lender services businesses.\nRenewal pricing in this group was up approximately 8% for the quarter, consistent with the results in the second quarter of 2021.\nFor more than 10 years, the average overall combined ratio of this group has consistently been below 90.\nBased on results for the first nine months of the year, we now expect AFG's core net operating earnings in 2021 to be in the range of $10.10 to $10.70, up significantly from our previous range of $8.40 to $9.20 per share.\nThis guidance reflects an assumed annualized return of approximately 10% on alternative investments in the fourth quarter of 2021, which would produce a return of approximately 20% on our $1.7 billion of alternative investments for the full year in 2021.\nWe now expect the 2021 combined ratio for the Specialty Property and Casualty Group overall between 86% and 88%, an improvement of 2 points at the midpoint of the range of our previous estimate.\nNet written premiums are now expected to be 11% to 14% higher than the $5 billion reported last year.\nGrowth in net written premiums excluding workers' comp is now expected to be in the range of 13% to 17%, an increase from the range of 12% to 16% estimated previously.\nWe now expect the Property and Transportation group combined ratio to be in a range of 86% to 88%.\nOur guidance assumes above average crop earnings for the year and we continue to expect growth in net written premiums for this group to be in the range of 15% to 19%.\nOur Specialty Casualty Group is now expected to produce a combined ratio in the range of 85% to 87%.\nWe have raised our projection for growth in net written premiums to a range of 8% to 12% higher than 2020 results.\nExcluding workers' comp, we now expect 2021 premiums in the Specialty and Casualty Group to grow in a range of 15% to 19%, an increase of 5 percentage points from the midpoint of our previous guidance.\nAnd we now expect the Specialty Financial Group combined ratio to be in a range of 84% to 86%, reflecting strong underwriting results for the first nine months of the year.\nWe continue to expect growth in net written premiums for this group to be between 10% and 14% based on projected premium growth in our fidelity and crime and surety businesses.\nAnd our expectations for overall renewal pricing are unchanged from last quarter, remaining in the range of 9% to 11% overall.\nAnd excluding workers' comp, we expect renewal rate increases to be in the range of 11% to 13%.", "summaries": "As you'll see on Slide 3, AFG reported core net operating earnings of $2.71 per share, an impressive 96% increase year-over-year.\nTurning to Slide 4, you'll see the third quarter 2021 net earnings per share of $2.56 included non-core after-tax realized losses on securities of $0.15 per share, most of which pertain to fair value adjustments on securities that we continue to hold at the end of the quarter.\nBased on results for the first nine months of the year, we now expect AFG's core net operating earnings in 2021 to be in the range of $10.10 to $10.70, up significantly from our previous range of $8.40 to $9.20 per share.", "labels": "0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We had 14% organic sales growth in the second quarter driven, again, by robust high-value product sales.\nGAAP measures are described in Slides 13 to 17.\nWe recorded net sales of $527.2 million, representing organic sales growth of 14.3%.\nCOVID-related net revenues are estimated to have been approximately $19 million in the quarter.\nWe recorded $195.1 million in gross profit, $37.2 million or 23.6% above Q2 of last year.\nAnd our gross profit margin of 37% was a 340-basis-point expansion from the same period last year.\nWe saw improvement in adjusted operating profit, with $106 million recorded this quarter, compared to $81.9 million in the same period last year for a 29.4% increase.\nOur adjusted operating profit margin of 20.1% was a 270-basis-point increase from the same period last year.\nFinally, adjusted diluted earnings per share grew 40% for Q2.\nExcluding stock tax benefit of $0.09 in Q2, earnings per share grew by approximately 38%.\nOur proprietary product sales grew organically by 13.3% in the quarter.\nHigh-value products, which made up more than 65% of proprietary product sales in the quarter, grew double digits and had solid momentum across all market units throughout Q2.\nVolume and mix contributed $59.4 million or 12.6 percentage points of growth, including approximately $19 million of volume driven by COVID-19-related net demand.\nSales price increases contributed $7.8 million or 1.7 percentage points of growth, and changes in foreign currency exchange rates reduced sales by $9.6 million or a reduction of 2 percentage points.\nSlide 9 shows our consolidated gross profit margin of 37% for Q2 2020, up from 33.6% in Q2 2019.\nProprietary products' second-quarter gross profit margin of 42.8% was 330 basis points above the margin achieved in the second quarter of 2019.\nContract manufacturing second-quarter gross profit margin of 19% was 470 basis points above the margin achieved in the second quarter of 2019.\nThere was approximately 180 to 200 basis points positive impact on margin, primarily due to a onetime engineering project work.\nOur adjusted operating profit margin of 20.1% with a 270-basis-point increase from the same period last year, largely attributable to our gross profit expansion.\nOne point to note, we took a onetime charge of $6.3 million for asset impairment.\nOperating cash flow was $205.2 million for the year-to-date 2020, an increase of $52.5 million, compared to the same period last year, a 34% increase.\nOur year-to-date capital spending was $69.2 million, $12.1 million higher than the same period last year and in line with guidance.\nWorking capital of $735.4 million at June 30, 2020, was $18.3 million higher than at December 31, 2019, primarily due to an increase in inventory, mainly as a result of increasing our safety stock levels and accounts receivable due to increased sales activity.\nOur cash balance at June 30 of $445.9 million was $6.8 million more than our December 2019 balance, primarily due to our positive operating results.\nFull-year 2020 net sales guidance will be in a range of between $2.035 billion and $2.055 billion.\nThis includes estimated net COVID incremental revenues of $60 million.\nThere is an estimated headwind of $26 million based on current foreign exchange rates.\nWe expect organic sales growth to be approximately 12.5%.\nThis compares to prior guidance of $1.95 billion to $1.97 billion and growth of 8%.\nWe expect our full-year 2020 reported diluted earnings per share guidance to be in a range of $4.15 to $4.25, compared to prior guidance of $3.52 to $3.62.\nCapex guidance has raised to $170 million to $180 million.\nThis compares to previous guidance of $130 million to $140 million.\nEstimated FX headwind on earnings per share has an impact of approximately $0.07 based on current foreign currency exchange rates.\nThe revised guidance also includes $0.16 earnings per share impact from our H1 tax benefits from stock-based compensation.\nOur long-term construct remains at approximately 6% to 8% organic sales growth and continued earnings per share expansion.", "summaries": "We recorded net sales of $527.2 million, representing organic sales growth of 14.3%.\nFull-year 2020 net sales guidance will be in a range of between $2.035 billion and $2.055 billion.\nThere is an estimated headwind of $26 million based on current foreign exchange rates.\nWe expect our full-year 2020 reported diluted earnings per share guidance to be in a range of $4.15 to $4.25, compared to prior guidance of $3.52 to $3.62.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0"}
{"doc": "I'd like to start by taking a moment on behalf of our Board, our entire team and myself to recognize Henry Tippie for everything he's done for our organization over the last 68 years.\nDuring his distinguished career, not only was Henry our longest-serving CFO through a period for over 17 years, he was the architect of Rollins' purchase of Orkin in 1964.\nHenry, along with Randall Rollins, our Chairman at the time, were the only two Rollins Directors present during our initial stock exchange listing in 1968, and again, on our 50th year New York Stock Exchange anniversary.\nRevenue grew 9.8% to $535.6 million compared to $487.9 million for the same quarter in 2020.\nNet income rose to $92.6 million or $0.19 per diluted share compared to $43.3 million or $0.09 per diluted share for the first quarter of last year.\nIt is not just the results we are pleased with, but the returns we are seeing in the business, highlighted by strong performance in our residential and termite service lines, growing 14.9% and 12.2%, respectively.\nFurther, our commercial business has improved every single quarter during 2020 and continued this steady progress once again this quarter, reaching 2.9% growth over the first quarter 2020.\nAnd our total revenue, less significant acquisitions, grew 7.9% over first quarter 2020 as both our residential and termite segments presented double-digit growth of 12.8% and 11.2%, respectively.\nThis segment has enjoyed sequential improvement since last April, reaching 1.3% growth over first quarter of 2020.\nWe're pleased with the steady progress achieved over the past 12 months in this segment.\nFor the quarter, our mosquito revenue experienced growth of over 30%.\nEven though we're still in early stages, for Orkin Canada, we've achieved routing improvements of over 20% at this time.\nThe first group that sold netted a $31 million gain included in our numbers this quarter.\nLooking at the numbers, the first quarter revenues of $535.6 million increased 9.8% over the prior year's first quarter revenue of $487.9 million.\nOur GAAP income before income taxes was $119.9 million or 116.3% above 2020.\nOur GAAP net income was $92.6 million, up 114.1% compared to 2020.\nAnd our GAAP earnings per share were $0.19 per diluted share.\nWhen removing the positive impact of the property gain on the sale of $31 million, our non-GAAP income before income taxes was $88.8 million compared to $55.4 million in 2020 or up 60.3%.\nOur non-GAAP net income was $69.8 million, up 61.2% compared to Q1 of 2020.\nOur total revenue increase of 9.8% included 1.9% from significant acquisitions and the remaining 7.9% was from pricing and new customer growth.\nIn total, residential pest control, which made up 44% of our revenue, was up 14.9% and commercial, excluding fumigation pest control, which made up 35% of our revenue, was up 3.6%.\nTermite and ancillary services, which made up approximately 20% of our revenue, were up 12.2%.\nAgain, total revenue, less significant acquisitions, were up 7.9%, and from that, residential was up 12.8%; commercial, ex-fumigation, increased 1.3%; and termite and ancillary grew by 11.2%.\nIn total, gross margins increased to 51.2% from 49.5% in the prior year's quarter.\nDepreciation and amortization expenses for the quarter increased $2 million to $23.6 million, an increase of 9.3%.\nDepreciation increased $920,000 due to acquisitions and planned IT upgrades, while amortization of intangible assets increased $1.1 million due to several acquisitions, including McCall Pest Control in December of 2020.\nSales, general and administrative expenses for the first quarter increased $4.3 million or 2.8% to $162.2 million or 30.3% of revenues.\nThis was down 6.5% compared to 2020, and the quarter produced savings in administrative salaries and benefits, travel and telephone savings from better negotiated contracts.\nAs for our cash, for the period ended March 31, 2021, we spent $17 million on acquisitions compared to $47.6 million during the same period last year.\nWe paid $39.4 million on dividends and had $7.8 million of capital expenditures, which was slightly higher compared to 2020.\nWe ended the period with $117.3 million in cash, of which $71.3 million is held by our foreign subsidiaries.\nYesterday, the Board of Directors approved a regular cash dividend of $0.08 per share that will be paid on June 10, 2021, to stockholders of record at the close of business on May 10, 2021.", "summaries": "Revenue grew 9.8% to $535.6 million compared to $487.9 million for the same quarter in 2020.\nNet income rose to $92.6 million or $0.19 per diluted share compared to $43.3 million or $0.09 per diluted share for the first quarter of last year.\nLooking at the numbers, the first quarter revenues of $535.6 million increased 9.8% over the prior year's first quarter revenue of $487.9 million.\nAnd our GAAP earnings per share were $0.19 per diluted share.", "labels": "0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Total revenue for the third quarter was down 25% and we posted positive net income of $9 million or $0.25 per share.\nPeopleReady is our largest segment representing 61% of trailing 12-month revenue and 76% of segment profit.\nPeopleReady's revenue was down 29% during the quarter and we saw intra-quarter improvement with revenue down 27% in September versus down 32% in July.\nPeopleManagement is our second largest segment representing 30% of trailing 12-month revenue and 15% of segment profit.\nRevenue for PeopleManagement was down 8% during the quarter with the top line down just 2% in September versus down 12% in July.\nTurning to our third segment, PeopleScout, represents 9% of trailing 12-month revenue and 9% of segment profit.\nRevenue was down 48% during the quarter versus down 53% in Q2.\nWe now have digital fill rates north of 50% and more than 26,000 clients using the app.\nIn Q3 2020, we filled 726,000 shifts via JobStack representing a digital fill rate of 51%.\nOur client user count ended the quarter at 26,100, up 37% versus Q3 2019.\nEarly results indicate a 20% increase in worker throughput.\nA heavy user is a client who has 50 or more touches on JobStack per month whether it's entering an order, rating a worker or approving time.\nThe growth differential is north of 20 percentage points and has held true even in this market downturn.\nWe doubled our heavy user mix since 2019, up from 11% of our business in fiscal 2019 to 22% for 2020 year-to-date.\nEven in the middle of this downturn, year-to-date new business wins at PeopleManagement are up 13% versus the prior year as we've secured $70 million of annualized new business wins versus $62 million the prior year.\nOver the last five years, we've returned $169 million of capital to shareholders via share repurchases.\nTotal revenue for Q3 2020 was $475 million representing a decline of 25%.\nWe posted net income of $9 million or $0.25 per share and adjusted net income of $8 million or $0.24 per share.\nThe Q3 year-over-year revenue decline was 14 percentage points better than the Q2 year-over-year revenue decline and the Q3 year-over-year SG&A decline was 8 points better than the Q2 year-over-year SG&A decline.\nAdjusted EBITDA was $18 million, down from $39 million in Q3 2019, but up from a loss of $5 million in Q2 2020.\nGross margin of 23.3% was down 300 basis points.\nOur staffing businesses contributed 230 basis points of compression with 180 basis points of pressure from negative bill and pay rate spreads and 50 basis points from mix and other items.\nPeopleScout contributed another 70 basis points of compression primarily due to client mix and lower volume.\nExpense was down $40 million or 31% compared to Q3 2019.\nTurning to our tax rate, our effective tax rate was 30% in Q3, which is higher than what we had experienced in prior years as a result of this quarter's performance reducing the net operating loss for the year.\nTurning to our segments, PeopleReady, our largest segment, saw a 29% decline in revenue and segment profit was down 39%.\nWe saw nice intra-quarter revenue improvement with September down 27% compared to 32% in July with further improvement to a decline of 19% in October.\nPeopleManagement saw an 8% decline in revenue and segment profit was up 35%.\nPeopleManagement experienced encouraging intra-quarter revenue improvement with September down 2% compared to 12% in July.\nMonth-to-date for October, PeopleManagement was up 1%.\nTurning to PeopleScout, we saw a 48% decline in revenue and segment profit was down 97%.\nIntra-quarter revenue did show improvement with September down 40% compared to 52% in July.\nAs Patrick noted, PeopleScout results were adversely impacted by exposure to travel and leisure clients, which made up roughly 25% of the prior year mix and revenue for this vertical was down 74% year-over-year.\nWe also repurchased 9% of our common stock at favorable prices earlier this year to boost shareholder return.\nYear-to-date cash flow from operations was $99 million as compared to $53 million for Q3 year-to-date last year with the increase coming from the deleveraging of accounts receivable.\nIn 2017, our total debt-to-capital was 18%; in 2018, 12%; in 2019, 6%; and as of Q3 this year, nearly zero.\nFor the fourth quarter of 2020, we expect gross margin contraction of 250 basis points to 190 basis points.\nFor the fourth quarter of 2020, we expect a year-over-year SG&A reduction of $23 million to $27 million, which would result in $102 million to $106 million of savings in 2020.\nAll-in, this would produce a decrease in SG&A expense of about 20% in 2020.\nI'd also like to remind everyone that our business can generate an incremental operating margin of about 20% on incremental revenue which can of course run much higher with gross margin expansion or further SG&A declines.\nFor capital expenditures, we expect about $7 million for the fourth quarter of 2020, which is net of approximately $4 million of build out costs for our Chicago headquarters that are to be reimbursed by our landlord.\nOur outlook for fully diluted weighted average shares outstanding for the fourth quarter of 2020 is 34.8 million.\nTotal benefits derived from this program were $11 million for fiscal 2019 and $6 million year-to-date in Q3 of this year.", "summaries": "Total revenue for the third quarter was down 25% and we posted positive net income of $9 million or $0.25 per share.\nTotal revenue for Q3 2020 was $475 million representing a decline of 25%.\nWe posted net income of $9 million or $0.25 per share and adjusted net income of $8 million or $0.24 per share.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "The sequential improvement in revenues was driven by MP whose revenues improved approximately 18%.\nIn addition to sequential strength in bookings, AWP bookings were flat with last year's pre-COVID levels and MP's bookings were up 53%.\nYear-end customer backlogs increased 25% over prior year pre-COVID levels.\nOur stringent cost control and producing the customer demand helped us deliver operating margins in line with prior year on 11% lower revenues, even with $18 million of restructuring and related charges.\nAWP recorded near breakeven operating margins, including $11 million of restructuring charges and revenue down 18% from the prior year, representing a decremental margin of 7% or an incremental margin of 3% when excluding restructuring and related charges.\nOur MP segment achieved outstanding financial results, reporting a 15 % operating margin while revenues were down slightly year-over-year reporting an 82% incremental margin.\nOur intense focus on networking capital management drove a $129 million of free cash flow in the fourth quarter, delivering excellent full year cash flow generation.\nWe aggressively took out cost, not just manufacturing cost, we also executed on an SG&A cost reduction initiative with a target of SG&A percent of sales for 2021 of approximately 12.5%.\nOverall revenue of $787 million was down 11% year-over-year.\nFor the quarter, we recorded an operating profit of $32 million compared to adjusted operating profit of $36 million in the fourth quarter of last year.\nThe overall operating profit resulted from revenues being down, combined with $18 million of severance and restructuring charges primarily in our AWP segment.\nWhile lower revenues impacted our gross margins and resulted in elevated SG&A as a percentage of sales, our aggressive cost reduction actions allowed Terex to achieve an approximately 5% decremental margin in Q4.\nThis decremental margin was achieved despite $5 million of gross profit charges primarily due to restructuring.\nIn addition, SG&A was adversely impacted by $13 million primarily due to team members' severance and restructuring.\nExcluding these charges, operating profit was $49 million and Terex achieved an incremental margin of 13% in the quarter.\nThe low operating income, interest and other expense was almost $10 million lower than Q4 of 2019 because of several factors, including: first, lower interest rates versus a year ago; second, $4 million of investment income; and third, non-recurrence of $2 million in FX losses recognized in the prior year.\nOur 2020 global effective tax rate was approximately 18% compared to our previous estimate of 52%.\nFinally, our reported earnings per share of $0.21 per share includes the adverse operating impact on gross profit and SG&A, offset by the favorable benefits in other income that I just discussed.\nAWP sales of $412 million contracted by 18% compared to last year, driven by end markets in North America and Europe due to the impacts from the pandemic.\nDuring Q4, our aerial products production was 16% lower than Q4 2019.\nThis continued aggressive production control allowed us to achieve almost $180 million reduction in aerial products inventory levels year-over-year.\nAWP achieved strong decremental margin performance of 7% in the quarter, which includes $11 million of charges for severance and restructuring.\nAWP fourth quarter bookings of $753 million were flat with pre-COVID Q4 2019 levels, while backlog at quarter end was $826 million, up 10% from the prior year.\nMP had another solid quarter achieving 15% operating margins as markets continue to improve.\nIt is a testament to the MP team's operational strength to deliver these positive operating margins and revenues down 3%.\nSales were lower at $366 million, driven by cautious yet improving customer sentiment.\nThe MP team has been aggressively managing all elements of cost in a challenging market environment, resulting in incremental margin performance of 82%.\nBacklog of $523 million was 59% higher than last year and up 81% sequentially.\nMP saw its businesses strengthen through the quarter with bookings up 53% year-over-year and up 76% sequentially.\nSignificant cost actions reducing SG&A by $82 million from 2019 helped deliver 21% decremental margin and beat our 25% target.\nWe always had an SG&A target going back to our 2016 Analyst Day of 12.5% of sales.\nThe results of these actions is that we were able to reduce our SG&A cost structure by more than $100 million for 2021 versus 2019 and delivered the improved results detailed in my earlier comments.\nThese actions have enabled Terex to come into 2021 well-positioned to meet the 12.5% target.\nNow I would like to update you on how we currently anticipate 2021 to develop financially.\nWe anticipate earnings per share of $1.95 to $2.35 per share based on sales of approximately $3.45 billion.\nImportantly, we are planning for and look forward to reporting incremental, rather than decremental margins, which meet or exceed our 25% target for full year 2021.\nBased upon global tax laws, we expect a 2021 tax rate of 19%.\nFor full year 2021, we are estimating free cash flow of approximately $100 million, reflecting another year of positive cash generation.\nWe also estimate capital expenditures, net of asset dispositions, will be approximately $9 million.\nTaking together, these operational improvements drive our 2021 operating margin guidance of approximately 7%.\nAWP margins are expected to be positive each quarter of 2021 with incremental margins well above our targeted 25%.\nTurning to Page 13.\nWe have ample liquidity with greater than $1 billion available to us.\nIn connection with this arrangement, last week, the bank purchased approximately $100 million of our Terex Financial Services portfolio of receivables.\nAs a result of our strong liquidity position, including the proceeds from the sale of the TFS on-book portfolio, we initiated this week the repayment of approximately $200 million of term loans, reducing outstanding debt and lowering leverage.\nIn Q1, we will recognize the corporate and other operating gain of $7 million in connection with the TFS sale and interest and other charge of $2 million related to the repayment of the term loans.\nWe continue to invest in the business in 2020 at reduced levels and we'll continue to invest in 2021 with capital spending, net of assets disposition, of approximately $90 million.\nThe Board has approved a Q1 dividend of $0.12 per share as we return cash to shareholders.\nFrom an operational perspective, the AWP team executed in Q4 by delivering breakeven operating margins despite $15 million of restructuring charges, aggressively taking cost out of the business to improve the ability to deliver future industry competitive margins and innovating by continuing to bring new products to market.\nThe financial performance of MP relative to market conditions by achieving an operating margin of 15% in Q4 demonstrates the MP team's strong execution.\nMP's bookings improved and increased throughout the fourth quarter, resulting in bookings being up 53% year-over-year.", "summaries": "Finally, our reported earnings per share of $0.21 per share includes the adverse operating impact on gross profit and SG&A, offset by the favorable benefits in other income that I just discussed.\nNow I would like to update you on how we currently anticipate 2021 to develop financially.\nWe anticipate earnings per share of $1.95 to $2.35 per share based on sales of approximately $3.45 billion.\nThe Board has approved a Q1 dividend of $0.12 per share as we return cash to shareholders.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0"}
{"doc": "We reported fourth-quarter revenue of $106.7 million, an operating margin of 39% and net income of $1.05 per share.\nFor the full year, we had revenue of $301 million, an operating margin of 15% and net income of $0.45 per share.\nOur quarterly revenue was up 20%, and earnings per share was up 133% from the same period last year.\nFor the full year, our revenue was down 14%, and earnings per share was down 68%.\nWith respect to costs, our compensation ratio for the year was 59%, slightly above our target level as a result of lower revenue for the year.\nFor the quarter, the compensation ratio was an unusually low 42% in order to offset unusually high ratios in the first two quarters of the year.\nOur non-compensation operating expenses for the quarter were $21 million, which was $3.7 million higher than the same period last year due to some foreign currency-related losses compared to gains the prior year along with a charge for an uncollectible account receivable from a client in financial difficulty.\nOur effective tax rate was 33% for the quarter and 40% for the year.\nWe continue to expect a rate generally in the mid-20% range going forward.\nDuring the quarter, we purchased 1.5 million shares and share equivalents at an average price of $15.98 per share.\nFor the full year, we purchased 3.8 million shares and share equivalents at an average price of $18.04 per share.\nFor 2020, our Board has authorized $60 million in purchases of shares and share equivalents, which compares to $69 million we spent for such purchases during 2019.\nIn the quarter to date, we have repurchased 345,723 shares of common stock at an average price of $16.47 per share for $5.7 million in total, meaning we have repurchase authority of $54.3 million left for the remainder of the year.\nWe also declared a quarterly dividend for the quarter of $0.05 per share.\nWe ended the year with cash of $114 million and debt of $365.6 million, meaning we had net debt of $251.6 million.\nAs of yesterday, our cash balance was up to $133.9 million despite the incremental share repurchases in January with the debt amount unchanged.\nIn the past year, we added a net five client-facing managing directors, such that we have 79 today, and we increased our total professional headcount by 11%.\nOur brand for high-quality and independent advice has been built over decades of client service, and our team collectively owns 48% of the economic value of our firm through common stock and restricted stock and is, thereby, highly incentivized to generate strong results and create value for all shareholders.", "summaries": "We reported fourth-quarter revenue of $106.7 million, an operating margin of 39% and net income of $1.05 per share.\nFor 2020, our Board has authorized $60 million in purchases of shares and share equivalents, which compares to $69 million we spent for such purchases during 2019.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0"}
{"doc": "We enhanced our digital capabilities, highlighted by our global e-commerce channel, a margin accretive business for Tapestry, reaching approximately $1.6 billion in revenue, nearly doubling versus prior year and over $1 billion ahead of pre-pandemic levels.\nThis was fueled by the acquisition of nearly 4 million new customers in North America alone, including a growing number of millennial and Gen Z consumers.\nIn fact, Tapestry's business in Greater China reached $1.1 billion in sales this fiscal year, led by over 60% growth on the Mainland.\nThis has underpinned our ability to optimize the assortment planning process, lower SKU counts by 40% to 45% and reduced promotional activity, supporting higher AUR and gross margin as well as improved inventory turns.\nThis resulted in $200 million of gross expense savings in fiscal year '21, which funded investments in areas such as digital and marketing to fuel our continued growth as well as our purpose-led initiatives to accelerate and amplify our work within our social fabric to effect positive change for our industry and stakeholders.\nIn addition, we generated $1.2 billion of free cash flow and ended the year in a strong cash position, while reducing our leverage through organic profit growth and the pay down of the company's revolver.\nGiven our strong financial position and underlying business trends, our board of directors approved the reinstatement of our capital return programs with a plan to return over $750 million to shareholders through both dividend and share repurchases in fiscal year '22.\nDuring the fourth quarter, Coach revenue rose 117% versus prior year, outpacing pre-pandemic levels of sales by 2%, a meaningful achievement given the volatile backdrop.\nIn addition, we delivered significant profitability enhancements during the fiscal year, resulting in operating income increases of 67% on a one year basis and 14% on a two year basis.\nDuring the fiscal year, we acquired nearly 2.5 million new Coach customers through our digital channels in North America alone, a meaningful increase versus prior year.\nFourth, we accelerated growth in China by leveraging our foundation in the country, which resulted in over 60% revenue growth on the Mainland in fiscal year '21 with strength across channels.\nFinally, we enhanced profitability to realize an operating margin of over 31%.\nThis performance was driven by higher gross margin, which reached nearly 74% through a focus on streamlining our offering, sharpening our merchandising efforts and reducing SKU counts by approximately 45%.\nLooking ahead to fiscal year '22, our goals are to increase market share in our core handbag and small leather goods categories through a combination of AUR and unit growth by continuing to develop the brand's iconic families, approachable and inclusive messaging and consistent global positioning, invest and grow in digital while delivering differentiated and compelling omnichannel experiences, continue to drive growth in China with key initiatives to capitalize on market trends of the emerging middle class and increased digitalization and grow men's by expanding lifestyle, building brand awareness and increasing our presence in Asia in keeping with our ambition to deliver over $1 billion in revenue in this category over our planning horizon.\nThroughout the year, the brand delivered consistent improvement on the top-line, resulting in fiscal year '21 sales growth of 3% compared to prior year or 13% decline compared to pre-pandemic revenue levels.\nIn the most recent quarter, sales increased 95% versus prior year and were 4% below fiscal year '19.\nDuring the most recent quarter, we continued to rereengage lapsed customers and an increasing rate as we reactivated 550,000 customers through our North America digital channels, an increase of nearly 35% compared to prior year, demonstrating our focus on building lasting relationships with our customers.\nThis was evidenced by our viral Happy Dance Campaign on TikTok, which has over 11 billion views and counting.\nWe're seeing traction in leather with the introduction of the Knot, which has already grown to approximately 20% of our retail assortment, proving its position as a key family in the assortment going forward.\nFourth, we leaned into our digital strength, delivering approximately 35% growth compared to prior year across our e-commerce channels, reaching 35% of sales for the fiscal year.\nThis growth was driven by both the acquisition of nearly 1.4 million new customers through our North America digital channels as well as the engagement of existing customers.\nThrough the use of data, we adjusted our assortment and pricing strategies, which resulted in approximately 40% lower SKU count and disciplined promotional activity.\nWe continue to believe in the significant runway ahead and our ability to achieve $2 billion in revenue and enhanced profitability in the future.\nSecond, we grew our key categories by building strength in boots, booties and sandals through fashion innovation, highlighted by the continued success of our iconic 5050 Land and Nudist families, which brought a new and younger customers.\nAt the same time, we dramatically simplified the product assortment with SKU counts declining approximately 45%.\nAt the same time, momentum continued for our China business in fiscal '21 with revenue on the Mainland increasing over 35% compared to prior year or nearly 50% on a two year basis.\nAs previously shared, we reentered 90 Nordstrom doors in the year, fueling North America wholesale revenue ahead of pre-pandemic levels in the fourth quarter.\nFinally, we made progress in establishing a robust digital presence and drove approximately 30% e-commerce growth during the fiscal year, including continued strength in the fourth quarter, even as store trends improve.\nWe grew operating margin by 300 basis points versus FY '19, reaching peak levels of Tapestry.\nThis despite significant investments in talent, digital capabilities and marketing, which were more than funded by gross profit gains and $200 million in gross SG&A savings delivered through the Acceleration Program.\nAnd we further strengthened our financial position through tight inventory management and a reduction in debt levels, while achieving $1.2 billion in free cash flow, resulting in an ending cash position of approximately $2 billion.\nTotal sales rose 126% versus prior year on a 14-week basis or 113% on a 13-week basis, outpacing pre-pandemic levels, an important milestone.\nBy region, North America led the overall growth, rising approximately 150% versus FY '20 and a high-single-digit percentage versus FY '19, fueled by digital and a continued improvement in our brick and mortar businesses.\nIn Mainland China, our strong momentum continued as revenue increased approximately 60% on a one year basis and over 40% compared to pre-pandemic levels.\nBy channel, we maintained strength in digital, which grew more than 35% compared to prior year, reaching 30% penetration, that's three times 2019 level.\nOn a two year basis, the increase in SG&A was attributable to higher marketing spend of almost $100 million compared to Q4 '19, and an increase in our annual incentive plan given our outperformance this year.\nIn addition, our expenses for the quarter included the $25 million contribution toward the endowment of the newly established Tapestry Foundation.\nEarnings per diluted share for the quarter was $0.74 on a 14-week basis or $0.65 on a 13-week basis, a significant increase compared to a loss in the prior year and 7% ahead of pre-pandemic earnings per share levels.\nFor Tapestry, we closed a net of 59 locations globally in FY '21, including 10 net closures in the fourth quarter.\nAs compared to fiscal '19 year end, we have closed a net of 90 locations across our brands.\nWe ended the quarter in a strong position with $2 billion in cash and equivalents and total borrowings of $1.6 billion.\nTotal inventory at quarter end was approximately in line with last year and 6% below FY '19, reflecting in part deliberate actions to reduce SKU counts and prioritize inventory turn.\nAnd we generated $1.2 billion in free cash flow in FY '21 versus $202 million in the prior year and $118 million in fiscal '19.\nThis included capex of $116 million, a decline of 44% versus prior year as we prioritize investments in high return projects, notably in digital, while tightly controlling overall spend and reducing our outlay for new stores.\nIn keeping with the strategy, we're pleased to announce today our plan to return over $750 million to shareholders.\nSpecifically, the board declared a quarterly cash dividend of $0.25 with an anticipated annual dividend rate of $1 per share.\nWe also expect to repurchase approximately $500 million worth of stock in fiscal '22 under our current authorization.\nAnd finally, in keeping with our objective to reduce leverage, we expect to repay our July 2022 bonds totaling $400 million at the end of this fiscal year.\nWe expect revenue to increase at a mid-teens rate versus FY '21, resulting in approximately $6.4 billion in sales, which would mark a record for the company.\nWe continue to estimate that we will realize approximately $300 million in structural gross run rate expense savings, including $100 million of incremental savings from the prior year.\nWe are utilizing these savings to fund investments in the business, including $50 million of planned higher marketing spend, which is expected to represent approximately 7% of sales in fiscal '22, up roughly 75% or 3, 4 percentage points compared to FY '19.\nAnd we're focused on continuing to retain and develop these strong teams as evidenced by our recently announced commitment that all U.S. Tapestry employees will earn at least $15 per hour.\nOperating income is expected to increase in a mid-teens rate, resulting in operating margin modestly ahead of prior year and an increase of over 300 basis points versus 2019.\nNet interest expense for the year is expected to be $65 million, and the tax rate is estimated at 18.5%, assuming a continuation of current tax laws.\nWeighted average diluted share count is forecasted to be in the area of 283 million shares, approximately even with last year with share repurchase activity expected to offset dilution.\nWe anticipate earnings per share to be in the range of $3.30 to $3.35, reflecting leverage to the bottom line.\nCapex for the year is projected to be about $220 million.\nWe anticipate approximately 40% of the spend to be related to store development, primarily in China, with the balance dedicated to our digital and IT initiatives, including the initial investments related to build out our new distribution center.\nRevenue growth versus prior year is expected to be front-half weighted given relatively easier compares due to lapping COVID impacts with the first quarter forecasted to increase more than 20%.", "summaries": "Total sales rose 126% versus prior year on a 14-week basis or 113% on a 13-week basis, outpacing pre-pandemic levels, an important milestone.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Third quarter FFO is adjusted for comparability of $0.57, outperformed the high end of guidance by $0.01, and represented the sixth time in the past seven quarters that we outperformed expectations.\nThe $2.27 midpoint of updated 2021 guidance is $0.08 above our original midpoint and represents an increase of 7.1% over 2020 results.\nIn August, we issued $400 million of senior unsecured notes with a 2% coupon, which tied as the second lowest coupon ever issued among office REITs.\nIn the quarter, we achieved a total of one million square foot of leasing, which included extremely strong vacancy leasing of 215,000 square feet.\nThis vacancy leasing volume represented the highest achievement in two years, and was 67% above the trailing eight-quarter average volume.\nVacancy leasing also included a 68,000 square foot lease with the United States government for two floors at 310 NBP.\nIn the quarter, we also completed 274,000 square feet of development leasing, all at Defense/IT locations, including a full building lease with the US government.\nLastly, we renewed 553,000 square feet, delivering a 76% retention rate at lease economics that were consistent with our expectations.\nWe completed 2.7 million square feet of total leasing, which included 420,000 square feet of vacancy leasing at an average lease term of 8.6 years.\nWe completed 1.4 million square feet of renewals, achieving a 75% retention rate.\nAnd we executed 915,000 square feet of development leasing with an average initial term of 14.1 years.\nAfter the quarter, we leased another 263,000 square feet, bringing our total development leasing for the year to just under 1.2 million square feet with an average lease term of 13.4 years.\nAs a result of this transaction, our active developments totaled 1.8 million square feet that are 94% leased.\nDevelopment leasing to date exceeds our 2021 goal by 18% and represents the fourth consecutive year we've achieved over one million square feet of development leasing.\nIncluding the impact of assets sold to fund development, for the nine-month period, NOI from real estate operations increased 7%, FFO per share as adjusted for comparability grew 10%, and AFFO is up 16% from one year ago.\nThird quarter vacancy leasing was exceptionally strong at 215,000 square feet, representing 18% of our available space at the beginning of the quarter.\nTo put this achievement in perspective, since defense spending began rebounding in 2016, our quarterly vacancy leasing has averaged 132,000 square feet.\nThere were two major transactions from the quarter worth highlighting, the first of which was a 68,000 square foot lease with the US government at 310 NBP, leaving two floors to lease to bring that building to 100%.\nThe second major vacancy lease was for 63,000 square feet at 6740 Alexander Bell Drive in Columbia Gateway.\nThe new tenant is consolidating multiple offices, and executed a 16.5-year lease for the entire building with lease commencement expected in July 2022.\nFor the nine months, our 420,000 square feet of vacancy leasing represented 114% of the trailing five-year average through nine months, and was the second highest nine-month volume in the past five years.\nOur current leasing activity ratio is 101%, and since the start of the second quarter has averaged 90%, underpinning much of the third quarter's vacancy leasing success and our expectation for strong lease achievements continuing into the fourth quarter.\nDuring the third quarter, we renewed 553,000 square feet, translating into a 76% tenant retention rate.\nCash rents on renewals rolled down 0.6%, and GAAP rents grew 1%.\nExcluding an 89,000 square foot renewal where the tenant was rolling off a 10-year lease that had escalated above market, cash and GAAP rents increased 1% and 5%, respectively, in the quarter.\nFor the nine-month period, we completed 1.4 million square feet of renewals with a 75% retention rate, cash rents rolling down 0.3%, with annual escalations averaging 2.4% and average initial lease terms of 3.8 years.\nExcluding the two Boeing buildings and Redstone Gateway that are still on one-year renewals, the lease term for the nine months averaged 4.7 years.\nWe continue to advance negotiations to renew the 11.25 megawatt user at DC-six.\nDuring the quarter, we executed 274,000 square feet of development leasing at Redstone Gateway.\nThe largest transaction was a 205,000 square foot full building lease with the U.S. government.\nThis development represents our second building in the secured campus, which, upon completion of this project, will total 460,000 square feet.\nThe remaining 69,000 square feet of development leasing was with two defense contractors who leased space at 8,000 Ride Out Road.\nThat development was started because of the contractor demand we are tracking, and is now 88% leased.\nWe are working to close a lease for the remaining 12,000 square feet.\nThe 2-building campus totals 263,000 square feet of highly visible Class A office space with one of the world's largest defense contractors, just outside Redstone Arsenal's main gate.\nOnce the active projects under development at Redstone Gateway are placed into service, the park will total 2.2 million square feet, making it our second largest concentration of Defense/IT assets, and equal to slightly more than half the size of the National Business Park.\nThe Northrop leases brought our year-to-date development leasing total to nearly 1.2 million square feet, making 2021 the tenth straight year we have exceeded our development leasing goal.\nBased on the 1.5 million square feet of opportunities we are tracking in our development leasing pipeline, we expect continued strong development leasing.\nLastly, in the first nine months, we placed 709,000 square feet of developments into service that were 89% leased.\nWe expect to place another 74,000 square feet into service in the fourth quarter bringing our total for the year to roughly 800,000 square feet.\nThird quarter FFO per share as adjusted for comparability of $0.57 exceeded the midpoint of guidance by $0.02 driven by $0.01 of deferred R&M projects and $0.01 of other outperformance.\nIncorporating this change, we are adjusting the midpoint of our fourth quarter guidance to a new range of $0.55 to $0.57.\nThe timing of R&M projects drove 165 basis points of outperformance in same-property cash NOI, which increased 4.8% in the quarter.\nGiven the year-to-date results, we are increasing our full year guidance for same-property cash NOI growth again from a prior range that was flat to up 1% to a new range that is up 50 to 100 basis points.\nAt the 75 basis point midpoint, our revised full year guidance for same-property cash NOI growth is 175 basis points above the midpoint of our original guidance.\nWe are also narrowing our full year guidance for same-property occupancy from the prior range of 90% to 92% to a new range of 90% to 91.5%.\nOur revised guidance continues to incorporate the 20 basis point negative impact of joint venturing fully occupied, wholly owned data center shells to raise equity in the fourth quarter, and has been adjusted to include the 40 basis point negative impact of placing 6740 Alexander Bell Drive back into service, back to the same property pool.\nIn August, we issued $400 million of long 7-year senior unsecured notes priced at 2% and used the proceeds to retire floating rate debt.\nSpecifically, we prepaid $100 million of our 2022 term loan, retired the $89 million construction loan at 2100 L Street and paid down amounts on our line of credit with the remainder.\nThe August deal was more than five times oversubscribed and priced at 105 basis points over the seven-year treasury, which was 25 to 30 basis points below initial price talk.\nThe 2% coupon ranks as the lowest among office REITs for seven-year paper and ties as the second lowest overall face rate of any duration among office REITs.\nAlso of note, since September of 2020, we have issued $1.4 billion of senior notes with an average term of over eight years, and use the proceeds to retire debt carrying an average term of 1.8 years.\nLastly, incorporating the items addressed earlier, we are increasing our full year guidance from a previously elevated range of $2.24 to $2.28 to a new range of $2.26 to $2.28.\nAt the midpoint, our updated guidance range implies 7.1% growth over 2020 results and is $0.08 higher than the midpoint of our original guidance.\nIt is important to note that placing several development projects into service earlier than originally planned, drove nearly $0.02 of this year's outperformance, and pulling that NOI forward into 2021 tempers 2022 growth by approximately 1%.", "summaries": "Third quarter FFO is adjusted for comparability of $0.57, outperformed the high end of guidance by $0.01, and represented the sixth time in the past seven quarters that we outperformed expectations.\nThird quarter FFO per share as adjusted for comparability of $0.57 exceeded the midpoint of guidance by $0.02 driven by $0.01 of deferred R&M projects and $0.01 of other outperformance.\nIncorporating this change, we are adjusting the midpoint of our fourth quarter guidance to a new range of $0.55 to $0.57.\nThe timing of R&M projects drove 165 basis points of outperformance in same-property cash NOI, which increased 4.8% in the quarter.\nLastly, incorporating the items addressed earlier, we are increasing our full year guidance from a previously elevated range of $2.24 to $2.28 to a new range of $2.26 to $2.28.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0"}
{"doc": "They are also referenced on Page 2 of our financial supplement.\nSpecifically, we generated adjusted EBITDA of $95 million and pro forma earnings per share of $0.22 per share.\nAdjusted EBITDA exceeded the prior-year quarter by 21%, as favorable results in each of our timber segments more than offset lower adjusted EBITDA in the real estate segment.\nDrilling down to our different operating segments, our Southern Timber segment generated adjusted EBITDA of $31 million for the quarter, which was 16% above the prior year second quarter.\nNet stumpage prices increased 14% which more than offset a 4% reduction in harvest volumes as weather conditions impacted productions across the South.\nIn our Pacific Northwest Timber segment, we achieved adjusted EBITDA of $14 million, an improvement of $10 million versus the prior year quarter.\nThis sharp increase in adjusted EBITDA was driven by a 30% increase in delivered saw timber prices stemming from favorable domestic lumber markets and increased log export demand as well as higher volumes following the merger with Pope Resources.\nSecond quarter adjusted EBITDA nearly triple to $28 million.\nThe year-over-year increase in adjusted EBITDA was due to both significantly higher harvest volumes as the second quarter of 2020 was severely impacted by COVID 19 related headwinds and weighted average log prices and increased 51% as a result of robust export and domestic log demand.\nIn our Real Estate segment, we generated adjusted EBITDA of $29 million, down from $45 million in an exceptionally strong period last year.\nThe decline versus the prior year quarter was driven by a 61% reduction in acres sold, partially offset by significantly higher per acre prices.\nThe aggregate purchase price was $35.9 million and the transaction will be reflected in our third quarter financial results.\nFollowing this transaction, we continue to manage, as well as own 20% co-investment stake in one Timber Fund comprising 31,000 acres in the Pacific Northwest.\nLet's start on Page 5 with our financial highlights.\nSales for the quarter totaled $291 million, while operating income was $84 million and net income attributable to Rayonier was $57 million or $0.41 per share.\nOn a pro forma basis, net income was $31 million or $0.22 per share.\nAs Dave touched on second quarter adjusted EBITDA of $95 million was above the prior year period as higher results across all of our timber segments more than offset a lower contribution from our Real Estate segment.\nOn the bottom of Page 5, we provide an overview of our capital resources and liquidity at quarter-end as well as a comparison to year-end, our cash available for distribution or CAD for the first half of the year was $111 million versus $80 million in the prior-year period, primarily due to higher adjusted EBITDA, partially offset by higher cash taxes, interest expense and capital expenditures.\nA reconciliation of CAD to cash provided by operating activities and other GAAP measures is provided on Page 8 of the financial supplement.\nConsistent with our nimble approach to capital allocation, we raised $81 million through our at-the-market equity offering program during the second quarter an average price of $36.79 per share.\nSpecifically in May, we issued $450 million or 2.75% senior notes due 2031.\nWe executed a credit agreement for a delayed-draw term loan for up to $200 million, which if utilized would mature in 2029.\nA portion of the proceeds from the May debt offering were used to completely repay a $250 million term loan that was due in 2025.\nAdditionally, given our strong cash position, following the large disposition completed during the quarter we prepaid $100 million of the term loan that matures in 2026 reducing the outstanding balance to $200 million.\nIn conjunction with these actions, we recorded a $2.2 million loss associated with the termination of an interest rate swap as well as cost of $1.1 million related to debt extinguishments and modifications.\nCollectively, these items translated the $0.02 per share, a pro forma adjustments in the quarter.\nPro forma for the repayment of our 2022 bond maturity, we expect that our weighted average cost of debt will drop below 3% and our weighted average maturity will extend to roughly seven years.\nIn sum, we closed the quarter with $310 million of cash and $1.4 billion of debt, both of which exclude cash and debt attributable to the Timber Funds segment which is non-recourse to Rayonier.\nOur net debt of $1.1 billion represented 17% of our enterprise value based on our closing stock price at the end of the second quarter.\nLet's start on Page 9 with our Southern Timber segment.\nAdjusted EBITDA in the second quarter of $31 million was $4 million above the prior year quarter.\nThe 4% decline in volume during the second quarter was largely due to wet weather resulting in lost production days.\nSpecifically, average sawlog stumpage pricing was roughly $28 per ton, a 10% increase compared to the prior year quarter.\nPulpwood pricing climbed 14% from the prior year quarter, reflecting robust customer demand, coupled with tighter supply due to wet weather conditions.\nOverall weighted average pine stumpage prices increased 14% versus the prior year quarter due to higher sawtimber and pulpwood prices as well as a more favorable mix of sawtimber.\nMoving to our Pacific Northwest Timber segment on Page 10.\nAdjusted EBITDA of $14 million was $10 million above the prior year quarter.\nSecond quarter harvest volume was 4% above the prior year quarter due to additional volume from last year's merger with Pope Resources.\nAt $98 per ton, our average delivered sawlog price during the second quarter was up 30% from the prior year quarter.\nIn part due to the pricing support created by stronger export market demand meanwhile pulpwood pricing fell 21% in the second quarter relative to prior year quarter.\nAs a reminder, none of our fee timber properties were impacted by last year's fires, either on the roughly 10,000 acres of timber fund properties sustained fired image.\nPage 11 shows results and key operating metrics for our New Zealand Timber segment.\nAdjusted EBITDA in the second quarter of $28 million was nearly triple the $10 million that we reported in the prior year quarter.\nTurning to pricing, average delivered prices for export sawtimber jumped 50% in the second quarter from the prior year period to $148 per tonne, reflecting improved China demand the ban on a strain log exports in China and the reduced flow of European Spruce salvage logs into China.\nAs we've previously noted, prior to the ban Australia was applying approximately 10% of the total volume imported by China.\nShifting to the New Zealand domestic market average delivered sawlog prices increased 27% in the prior year period to $85 per ton.\nThe increase in US dollar pricing was driven primarily by foreign exchange rates and New Zealand domestic pricing improved by more modest 9% in the second quarter versus the prior year quarter.\nAverage domestic pulpwood pricing declined 35% as compared to the prior year quarter.\nHighlight on Page 12 Timber Funds segment generated consolidated EBITDA of $8 million in the second quarter on harvest volume of 185,000 tons.\nAdjusted EBITDA, which reflects the look through contribution from the Timber Funds was $1 million.\nLastly, in our Trading segment we reported $400,000 of adjusted EBITDA in the second quarter.\nAs detailed on Page 13, our Real Estate segment delivered strong results in the second quarter, second quarter real estate sales totaled $75 million on roughly 17,000 acres sold, which included a large disposition in Washington consisting of roughly 8500 acres.\nExcluding this transaction, second quarter sales totaled $39 million on roughly 8,000 acres sold at an average price of $4900 per acre.\nAdjusted EBITDA for the quarter was $29 million.\nSales in the Improved Development category totaled a record high $19 million in the second quarter as we closed significant transactions within both our Wildlight and Belfast Commerce Park development projects.\nIn our Wildlight development project north of Jacksonville, Florida sales included a $9.1 million sale of 130 acres to a national homebuilder for the first phase of an active adult community.\nDue to post closing obligations roughly $5 million of revenue from this transaction was deferred and will be recognized in future periods.\nIn addition, we closed on 36 residential lots in our Wildlight project for $2.3 million or $65 per lot.\nMeanwhile, in our Belfast Commerce Park development project south of Savannah, Georgia, we sold 153 acre parcel to a national developer of industrial properties for $7.9 million or $51,000 per acre.\nIn the rural category sales totaled roughly 7700 acres at an average price of just over $2600 per acre, a nearly 100-acre sale in Georgia to the Conservation Fund comprise the bulk of our second quarter activity.\nWe also closed on a conservation easement sale covering 18 acres in Washington for $4 million in the second quarter.\nLastly, if we closed on a large disposition in Western Washington during the quarter for $6 million roughly $100 per acre.\nBased on our solid first half results and our expectations for the balance of the year, we are raising our full-year adjusted EBITDA guidance to range of $300 million to $320 million, which reflects a 3% increase at the midpoint from our original guidance.\nIn our Southern Timber segment, we now expect full year harvest volumes of $5.9 million to $6.1 million tons as production has been constrained by regional weather conditions and trucking availability.\nOverall, we expect full-year adjusted EBITDA of $118 to $122 million and our Southern Timber segment a modest increase from prior guidance.\nIn our Pacific Northwest Timber segment we are maintaining our full year volume guidance of $1.7 million to $1.8 million tons, along with our full-year adjusted EBITDA guidance of $50 million to $55 million.\nIn our New Zealand Timber segment, we are maintaining our full year volume guidance of $2.6 million to $2.8 million tons.\nGiven the robust start to 2021, we now expect full-year adjusted EBITDA of $78 million to $82 million.\nIn our Real Estate segment, we now expect full-year adjusted EBITDA of $78 million to $86 million.\nAs I reflect on the last 18 months.\nWe opportunistically recycled capital out of a non-strategic timberland holding in Washington State while also closing on a total of $22 million of bolt-on acquisitions.", "summaries": "Specifically, we generated adjusted EBITDA of $95 million and pro forma earnings per share of $0.22 per share.\nSales for the quarter totaled $291 million, while operating income was $84 million and net income attributable to Rayonier was $57 million or $0.41 per share.\nOn a pro forma basis, net income was $31 million or $0.22 per share.\nAt $98 per ton, our average delivered sawlog price during the second quarter was up 30% from the prior year quarter.\nBased on our solid first half results and our expectations for the balance of the year, we are raising our full-year adjusted EBITDA guidance to range of $300 million to $320 million, which reflects a 3% increase at the midpoint from our original guidance.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Along those lines, recall that in the first quarter of 2020 we launched a rationalization of our locomotive fleet by 703 units, which resulted in a non-cash charge of $385 million, so we will speak to the quarterly results excluding that charge.\nFor the quarter, revenue increased 1% due primarily to volume growth up 3% year-over-year.\nAt the same time, expenses declined 3% or $48 million compared to our adjusted first quarter of 2020.\nThese trends have been improving since we implemented Top 21 in mid-2019, but the team has been able to both accelerate and extend the improvement and we are very well positioned to continue these trends, leveraging our efficiency initiatives with rising volumes.\nDespite the difficult operating conditions, overall revenue improved 1% year-over-year to $2.6 billion while volume grew 3%.\nMerchandise revenue fell 4% from prior year levels on a 3% volume decline.\nMarch U.S. light vehicle sales surged to a 17.7 million unit seasonally adjusted annual rate, the second highest March ever, while inventories are at a 10-year low.\nMerchandise revenue per unit excluding fuel reached a record high for the quarter, delivering 24 consecutive quarters of year-over-year improvement in this market.\nVolume growth was driven by a continuation of the inventory replenishment cycle combined with the tight truck market and strength in consumer activity as retail sales grew 9.8% in March, the largest sequential increase since May 2020 when sales initially rebounded as states reopened from shutdowns.\nIntermodal revenue per unit excluding fuel improved 6% year-over-year, supported by continued strength in the LTL market driven by growth in e-commerce.\nOur coal business delivered 5% revenue growth in the quarter.\nRevenue per unit improved 3% year-over-year, inclusive of a $9 million incremental gain from volume shortfall revenue.\nConsensus for U.S. GDP growth is north of 6%, the highest in the last 40 years.\nPMI rose to 64.7 in March, hitting the highest level since 1983, while inventories remain low.\nSpending on durable goods is expected to grow 15% in 2021, which bodes well for our domestic intermodal franchise that is closely correlated with consumption markets.\nOn Slide 15, walking you through our summarized results compared with an adjusted first quarter 2020, we reported an OR of 61.5%, which was a 220 basis point improvement, and an earnings per share improvement of $0.08.\nI will note that the $0.08 improvement in earnings per share was dampened by the absence of a gain recognized last year from a 2012 income tax refund that equated to $0.09, so core earnings per share improvement in the quarter was $0.17.\nMoving to Slide 16, revenue grew 1% in the quarter due primarily to the 3% increase in volume year-over-year, with growth in intermodal and coal more than offsetting declines in merchandise.\nAt the same time, we drove operating expenses down by 3% as we harvested additional benefits from workforce and asset productivity.\nThe volume growth coupled with the productivity drove the operating ratio down to a record low 61.5%, improving 220 basis points year-over-year and 30 basis points sequentially versus Q4.\nThis produced operating income of $1 billion, another record, up $62 million or 7% year-over-year, and we generated first quarter free cash flow of $750 million, also a record, up $161 million or 27% versus the first quarter of 2020.\nMoving to a drill down of operating expense improvement on Slide 17, the reduction of $48 million or 3% comes with improvements in nearly all expense categories.\nComp and benefits declined $11 million or 2% from lower employment costs related to a workforce that was 12% smaller than a year ago and 2% smaller than the fourth quarter.\nPurchase services and rents were collectively down $10 million or 2% as reduced freight car expenses more than offset higher spend associated with technology investments and increased intermodal volumes.\nWhen matched to a 3% volume increase, the 3% decline in opex provides another quarter of additional productivity, building in the work we've done over the past several quarters, as you'll see here on Slide 18.\nFrom the quarter that we launched our Top 21 operating plan, we have made meaningful progress on our workforce productivity with GTMs per employee up 16% since the third quarter of 2019 and a 340 basis point improvement in our operating ratio.\nTurning to Slide 19 for the remainder of the P&L below operating income, you'll see that other income net of $7 million is $15 million of 68% unfavorable year-over-year due primarily to lower net returns on our company-owned life insurance investments.\nOur effective tax rate in the quarter was just over 22%, and recall last Q1 we had the 2012 tax refund that resulted in a lower effective tax rate.\nAs a result, net income increased by 1% compared to pre-tax earnings growth of 5%.\nEarnings per share rose by 3%, supported by 2.3 million shares that we repurchased in the quarter at an average price of $254.\nWrapping up now with our free cash flow on Slide 20, free cash flow at $750 million was buoyed by strong operating cash conversion and a relatively modest $265 million in property additions in the quarter, which was below our annual targeted run rate for the year due to timing issues, including weather related delays and capital spend.\nYears ago, we recognized the importance of reducing our environment footprint, beginning in 2007 when we first established our sustainability program.\nHere we highlight a few key milestones and also show a few examples of external recognition, including recently being named by the Wall Street Journal as one of the 100 Most Sustainably Managed Companies.\nAlthough we don't generally update guidance, given the unusual circumstances in the first quarter with February's extreme cold and a global supply chain disruption, let me wrap up restating our confidence in our ability to meet the market for full year 2021 with the expectation that strength in consumer-oriented and manufacturing markets will drive 9% revenue growth year-over-year.\nFor the full year, we expect to achieve more than 300 basis points of OR improvement versus our adjusted 2020 result, and we expect to end 2021 with a 60% run rate OR.\nBefore we open the call to Q&A, I want to quickly address the proposed transactions involving another Class 1 railroad.", "summaries": "On Slide 15, walking you through our summarized results compared with an adjusted first quarter 2020, we reported an OR of 61.5%, which was a 220 basis point improvement, and an earnings per share improvement of $0.08.\nThe volume growth coupled with the productivity drove the operating ratio down to a record low 61.5%, improving 220 basis points year-over-year and 30 basis points sequentially versus Q4.\nThis produced operating income of $1 billion, another record, up $62 million or 7% year-over-year, and we generated first quarter free cash flow of $750 million, also a record, up $161 million or 27% versus the first quarter of 2020.\nFrom the quarter that we launched our Top 21 operating plan, we have made meaningful progress on our workforce productivity with GTMs per employee up 16% since the third quarter of 2019 and a 340 basis point improvement in our operating ratio.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We're extremely proud to deliver yet another quarter of outperformance with comps of 16.9%, building to an accelerated two-year stack of 41.3% and operating margin expansion of 60 basis points.\nAs a result, we are raising our full year outlook to reflect revenue growth of 22% to 23% and operating margins of 16.9% to 17.1%.\nWe are one of the strongest market players and have incredible opportunity to capture more of an almost $1 trillion market opportunity.\nIn fact, almost 70% of consumers today want to support brands that are purpose-driven and doing good in the world we share.\nAnd as a result, approximately 85% of our holiday receipts have already been received.\nWest Elm delivered a 22.5% comp, with all categories driving strong growth.\nPottery Barn delivered another high-performance quarter, with a comp of 15.9%, driven by strong growth in all product categories, including our seasonal decorating business.\nPottery Barn Kids and Teens grew with a comp of 16.9%.\nPottery Barn, we're excited to share that our B2B growth initiative continues to produce record performance with our largest quarter ever, generating over $200 million of sales, nearly double that of last year.\nSignificant accomplishments of the business include an increase of 44% in new clients over last year, an acceleration of our contract grade lineup as businesses reopen and growth and diversification in our large project pipeline.\nWith almost 70% of our volume derived from e-commerce, we understand the importance of first-party data in the cookie less future that is rapidly approaching.\nWe are proud to announce that in the third quarter, we raised minimum wages again to at least $15 an hour for all of our employees.\nAdditionally, we also announced new goals to both expand our purchase of next ethically handcrafted products to 50 million and to nearly double our investments in fair trade certified products to 10 million by 2025.\nWe continue to be confident in our outlook of at least mid- to high single-digit comps, accelerating our revenues to 10 billion by 2024, with operating margins at least that of fiscal 2021.\n95% of our products are proprietary or exclusive to our brands.\nWe have a vertically integrated digital first but not digital-only operating model that is nearly 70% e-commerce in an industry that primarily consists of brick-and-mortar or pure e-commerce players, and we are a sustainable and values-led company.\nNet revenues grew 16% to $2.048 billion, with comparable brand revenue growth of 16.9%, with comps accelerating to 41.3% on a two-year basis.\nIn fact, against tougher compares, our e-commerce business accelerated to over 67% of our total revenues from the second quarter and was our highest two-year comp ever at 64%.\nBy brand, West Elm delivered a 22.5% comp, taking year-to-date revenues for the brand to over $1.5 billion.\nPottery Barn, our largest brand, drove their fifth consecutive quarter of double-digit comps with a 15.9% comp.\nPottery Barn Kids and Teen grew at a comp of 16.9% and had their highest two-year comp ever.\nWilliams-Sonoma drove a 7.6% comp accelerating from the second quarter and on top of 30.4% last year.\nAnd our emerging brands, Rejuvenation and Mark and Graham combined continue to drive significant growth at a 26.5% comp, and all brands grew nearly 40% or higher on a two-year basis.\nGross margin expanded 370 basis points to 43.7%.\nOur selling margins drove 280 basis points of this expansion.\nAnd relative to 2019, our selling margins are up 430 basis points, in line with our first half results, despite higher ocean freight costs incurred during the quarter.\nOccupancy cost leverage was also a factor in our gross margin expansion, leveraging approximately 90 basis points, resulting from higher sales and low occupancy dollar growth.\nOccupancy costs were approximately $183 million, up 5.1% year over year and relatively in line with our second quarter growth.\nSG&A in the third quarter was in line with the prior quarters at 27.5% of net revenue.\nYear over year, SG&A deleveraged 320 basis points, driven by higher advertising spend coming off of our substantially reduced costs in 2020 and our decision to incrementally invest in advertising.\nOperating income grew to a record $333 million, resulting in an operating margin of 16.3%, expanding 60 basis points over last year.\nThis resulted in diluted earnings per share of $3.32, up 30% from last year's record third quarter of $2.56 per diluted share.\nIn fact, year to date, we are tracking to a 28% comp or 41% on a two-year basis, with 400 basis points of operating margin expansion at a 16.3% operating margin and over 85% growth in earnings.\nWe ended the quarter with strong liquidity levels and a cash balance of almost $660 million.\nThe strength of our business has generated operating cash flow of almost $790 million year to date, which is approximately $60 million over last year's elevated cash flow levels.\nThis cash flow strength has allowed us to fund the operations of the business to invest over $140 million in capital expenditures and to return almost $790 million to our shareholders in the form of over $135 million in dividends and over $650 million in share repurchases.\nMoving down the balance sheet, merchandise inventories, which includes inventory and transit, were $1.272 billion, representing an increase of 13% over last year.\nInventory on hand and available for sale was up 3% year over year.\nWe are raising our 2021 outlook to reflect revenue growth from high teens to low 20s to now 22% to 23%, and operating margins from 16% to 17% to now 16.9% to 17.1%.\nAdditionally, we are also reiterating our longer-term outlook of revenues accelerating to $10 billion by 2024, with operating margins at least in line with our raised fiscal year '21 levels, which implies at least a mid- to high single-digit comp with margins at least holding over the next three-plus years.\nWe saw comps accelerating even before the pandemic as a result of our growth initiatives to a tie the 10% comp in February 2020.\nAnd our results every quarter this year have halted a two-year comp of approximately 40%, despite accelerating tougher year-over-year compares.", "summaries": "We're extremely proud to deliver yet another quarter of outperformance with comps of 16.9%, building to an accelerated two-year stack of 41.3% and operating margin expansion of 60 basis points.\nAs a result, we are raising our full year outlook to reflect revenue growth of 22% to 23% and operating margins of 16.9% to 17.1%.\nPottery Barn Kids and Teens grew with a comp of 16.9%.\nNet revenues grew 16% to $2.048 billion, with comparable brand revenue growth of 16.9%, with comps accelerating to 41.3% on a two-year basis.\nPottery Barn Kids and Teen grew at a comp of 16.9% and had their highest two-year comp ever.\nThis resulted in diluted earnings per share of $3.32, up 30% from last year's record third quarter of $2.56 per diluted share.\nWe are raising our 2021 outlook to reflect revenue growth from high teens to low 20s to now 22% to 23%, and operating margins from 16% to 17% to now 16.9% to 17.1%.\nAdditionally, we are also reiterating our longer-term outlook of revenues accelerating to $10 billion by 2024, with operating margins at least in line with our raised fiscal year '21 levels, which implies at least a mid- to high single-digit comp with margins at least holding over the next three-plus years.", "labels": "1\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0"}
{"doc": "And before handing the call over to John, you'll note that with our strong first quarter results and favorable outlook across a number of our markets, we raised our full year adjusted earnings per share forecast to approximately $7.50.\nOur reported first quarter earnings per share was $5.52 compared to a loss of $1.46 in the first quarter 2020.\nOur reported results include a net gain of $1.09 related to the previously announced sale of our Rotterdam oil refinery as well as our packaging plant in Mexico.\nReported results also include a mark-to-market timing difference of $1.30 per share.\nAdjusted earnings per share was $3.13 in the quarter versus $0.91 in the prior year.\nAdjusted core segment earnings before interest and taxes, or EBIT, were $737 million in the quarter versus $354 million in the prior year driven by strong performances in our Agribusiness and Refined and Specialty Oils segments.\nPrior year results reflect less favorable environment and were also negatively impacted by approximately $25 million in FX translation losses of the joint venture due to depreciation of Brazilian real.\nFor the quarter, income tax expense was $192 million as compared to an income tax benefit of $55 million for the prior year.\nAdjusted for notable items, the effective tax rate for the quarter was 21%.\nNet interest expense of $64 million was in line with our expectations.\nWe achieved underlying addressable SG&A savings of $16 million, of which approximately 80% was related to indirect costs.\nThe most recent trailing 12-month period, our cash generation, excluding notable items and mark-to-market timing differences, were strong at approximately $2.2 billion of adjusted funds from operations.\nThis cash flow generation enabled us to comfortably fund our cash obligations over the past year and retained approximately $1.4 billion to strengthen our balance sheet in support of our credit rating objective of BBB/Baa2.\nAfter allocating $32 million of sustaining capex, which includes maintenance, environmental, health and safety and $8 million to preferred dividends, we had $493 million of discretionary cash flow available.\nOf this amount, we paid $71 million in common dividends to shareholders and invested $21 million in growth and productivity capex, leaving approximately $400 million of retained cash flow.\nThe $400 million of retained cash flow and other cash sources, including proceeds from the sale of assets, more than offset our approximately $700 million of cash outflow this quarter for working capital.\nAs a result, net debt decreased by approximately $100 million.\nWe also took action to increase our availability under committed credit lines to $5.8 billion, leaving us with ample liquidity to support potentially higher working capital needs.\nAs you can see on Slide 11, we further strengthened our balance sheet during the quarter to a point where the entirety of our net debt funded 91% of our readily marketable inventory with the 90% balance of RMI being funded with equity.\nThe trailing 12 months adjusted ROIC was 18.7% or 12.1 percentage points over our RMI adjusted weighted average cost of capital of 6.6%.\nROIC was 13.4%, 7.4 percentage points over our weighted average cost of capital of 6% and well above our stated target of 9%.\nFor the trailing 12 months, we produced a discretionary cash flow of almost $1.9 billion and a cash flow yield of nearly 29%.\nAs Greg mentioned in his remarks, taking into account our strong Q1 results, forward curves and market conditions, we've increased our full year adjusted earnings per share outlook from at least $6 per share to approximately $7.50 per share.\nIn Agribusiness, full year results are expected to be up from our previous expectations, but down from 2020.\nIn Refined and Specialty Oils, we expect full year results to be up from our previous outlook and significantly higher compared to last year due to strong first quarter results and positive demand trends in North America.\nResults in Milling and Corporate and Other are expected to be generally in line with last year.\nAdditionally, the company expects the following for 2021: an adjusted annual effective tax rate in the range of 20% to 22%, net interest expense in the range of $230 million to $240 million, capital expenditures in the range of two -- $425 million to $475 million and depreciation and amortization of approximately $415 million.\nAs we noted, with our strong first quarter performance and what we see from the forward curves, we're forecasting full year earnings per share to be around $7.50.", "summaries": "And before handing the call over to John, you'll note that with our strong first quarter results and favorable outlook across a number of our markets, we raised our full year adjusted earnings per share forecast to approximately $7.50.\nOur reported first quarter earnings per share was $5.52 compared to a loss of $1.46 in the first quarter 2020.\nAdjusted earnings per share was $3.13 in the quarter versus $0.91 in the prior year.\nAs Greg mentioned in his remarks, taking into account our strong Q1 results, forward curves and market conditions, we've increased our full year adjusted earnings per share outlook from at least $6 per share to approximately $7.50 per share.\nIn Agribusiness, full year results are expected to be up from our previous expectations, but down from 2020.\nIn Refined and Specialty Oils, we expect full year results to be up from our previous outlook and significantly higher compared to last year due to strong first quarter results and positive demand trends in North America.\nResults in Milling and Corporate and Other are expected to be generally in line with last year.\nAdditionally, the company expects the following for 2021: an adjusted annual effective tax rate in the range of 20% to 22%, net interest expense in the range of $230 million to $240 million, capital expenditures in the range of two -- $425 million to $475 million and depreciation and amortization of approximately $415 million.\nAs we noted, with our strong first quarter performance and what we see from the forward curves, we're forecasting full year earnings per share to be around $7.50.", "labels": "1\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n1\n1\n1"}
{"doc": "As a result, enterprise same-store sales declined 3.7%.\nFor added perspective at the end of the quarter, approximately 45% of our store locations were under some level of capacity restriction or closure across the globe.\nDespite the top line disruptions, hair color was up 19% at Sally U.S. and Canada.\nIn addition, vivid colors remained on trend and delivered another quarter of strong performance, up approximately 50% at Sally U.S. and Canada over the prior year.\nIn Q1, vivid accounted for 25% of our total color sales and they continue to attract a new and younger customer to our stores.\nFinally, nails were up 7% at Sally U.S. and Canada and salon supplies were up over 50% at BSG compared to the prior year.\nAdditionally, our e-commerce business achieved strong growth, up 48% versus a year ago.\nDespite the external pressures of the macro environment, our teams also did an excellent job on margin and expense control, which resulted in first quarter adjusted earnings per share of $0.50, up 6% on a year-on-year basis.\nWe ended the quarter with inventory down 10% compared to the prior year and approximately $538 million of cash on the balance sheet.\nMore on this from Marlo later in the call.\nAs we reflect back on the investments we've made and the hard work of our teams over the past 3.5 years, today, we have a business that is well positioned from a strategic, operational and financial perspective.\nAnd third, we expect to further reduce our debt leverage ratio closer to our target of 2.5.\nFor example, At Sally U.S. and Canada, BOPIS accounted for 11% of our e-commerce sales for the quarter after launching nationwide in November.\nAnd BOPIS sales surpassed 20% of our e-commerce sales for the month of December, while ship from store represented 31% of our e-commerce sales during the quarter.\nWe are rapidly gaining traction on the rollout of our Private Label Rewards Credit Card to both Sally and BSG customers in the U.S. At the end of the first quarter, we had 163,000 cardholders.\nAnd our rewards card accounted for 2% of sales in the Sally segment and 5% in the BSG segment.\nI've been with the company now for 10 months.\nAnd by the end of Q1, approximately 45% of our stores globally were operating under capacity restrictions or closures.\nThis resulted in a consolidated same-store sales decline of 3.7%.\nOur global e-commerce business remained strong in Q1 with consolidated sales up 48% versus one year ago.\nFirst quarter gross margin came in at 50.3%, up 190 basis points to last year.\nWe anticipate that our targeted promotional strategy will allow us to continue to deliver strong consolidated gross margin in the range of 50%.\nSG&A expenses totaled $366 million in Q1, down $12 million versus last year.\nAs we expected, as a percentage of sales, SG&A deleveraged on a year-over-year basis, coming in at 39.1%, up 50 basis points from Q1 of 2020 due to lower sales volume.\nIn Q1, adjusted operating margin was up 130 basis points to 11.2%.\nAdjusted EBITDA increased 5% to $134 million and adjusted diluted earnings per share grew 6% to $0.50.\nThe first quarter same-store sales decline of 3.3% can largely be traced to extensive closures and restrictions in Europe and Latin America.\nIn the U.S. and Canada, same-store sales declines were less than 1%.\nThis drove a significant increase in segment operating margin, which expanded 440 basis points to 17.4%.\nE-commerce remained strong, up 46% versus one year ago.\nIn our BSG segment, same-store sales declines of 4.6% and primarily reflect restrictions on store capacity across several territories in the U.S. and Canada and salon closures in California and parts of Canada.\nE-commerce remained strong, delivering growth of 51% over the prior year.\nGross margin decreased by 40 basis points, reflecting higher capitalized costs due to lower inventory purchases.\nWe ended the first quarter with $538 million of cash on the balance sheet and a zero balance on our $600 million revolving line of credit.\nInventories at quarter end totaled $896 million.\nThat's down 10% versus one year ago and reflects our efforts to return to more optimal levels.\nAs a result, first quarter cash flow from operations came in better than we anticipated at $39 million.\nCapital expenditures totaled $15 million and were deployed mostly toward store repair and maintenance and digital capabilities, most notably buy online/pick up in-store.\nFree cash flow was $24 million for the quarter.\nAt the end of Q1, our leverage ratio stood at 2.78 times.\nFor comparison purposes, the leverage ratio that we often cite, as defined in our loan agreement, where the impact of cash on hand is capped at $100 million for net debt calculation purposes was 3.73 times.\nAfter the close of the quarter, we further reduced our debt levels by another $213 million in early January, which is consistent with our philosophy to deleverage the balance sheet.\nIn fiscal 2021, we expect to make additional progress toward bringing our debt leverage ratio closer to our target of 2.5 times.", "summaries": "As a result, enterprise same-store sales declined 3.7%.\nDespite the external pressures of the macro environment, our teams also did an excellent job on margin and expense control, which resulted in first quarter adjusted earnings per share of $0.50, up 6% on a year-on-year basis.\nMore on this from Marlo later in the call.\nThis resulted in a consolidated same-store sales decline of 3.7%.\nAdjusted EBITDA increased 5% to $134 million and adjusted diluted earnings per share grew 6% to $0.50.", "labels": "1\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Those risks and other risks are described in the company's filings with the Securities and Exchange Commission over the last 12 months.\nI'm pleased to report that for the quarter, Group one generated adjusted net income of $103 million.\nThis equates to adjusted earnings per share of $5.57 per diluted share, an increase of 236% over the prior year and an increase of 170% over the pre-pandemic first quarter of 2019.\nOur adjusted net income results exclude noncore items of $1.7 million of after-tax disaster pay provided to employees who couldn't work during our February Texas store closures partially offset by an $800,000 after-tax benefit from legal settlements and a $200,000 after-tax net gain on dealership and real estate transactions.\nThese profit results were particularly impressive given the fact that our Texas operations, which typically represent around 40% of our total revenues, were severely impacted due to a record-setting February winter weather event.\nThis improvement was driven by new and used vehicle revenue increases in the U.S., of well over 20% in the first quarter.\nOn a same-store basis, our U.S. total aftersales gross profit increased 3% versus the first quarter of 2019, and customer paid gross profit increased 14% over that same pre-pandemic time period.\nDespite not having the benefit of physical sales departments, or the ability to conduct test drives, we were able to deliver over 13,000 new and used vehicles during the quarter.\nLimited new vehicle availability increased our same-store new vehicle margins by 160 basis points to 5.6% during the first quarter.\nOur aftersales margin increased by almost 400 basis points to 58.4% as most service work at our dealerships was heavy repair work as customers chose to defer routine maintenance until after the lockdown.\nThe strong new vehicle and aftersales margins combined with strong cost discipline, evidenced by an 1,800 basis point same-store SG&A improvement over last year, enabled us to generate a meaningful level of profit in the U.K. despite closed showrooms.\nThis gives us a high level of confidence in our U.K. business during the remainder of 2021.\nCompared to the pre-pandemic first quarter of 2019, our same-store new and used unit sales increased by 11% and 5%, respectively.\nThis 11% increase in new outperformed the retail industry.\nU.S. new vehicle inventory levels finished the quarter at 14,500 units, of 34 days supply.\nOur same-store used vehicle unit sales improved sequentially by 14%, along with a 5% growth over the first quarter of 2019.\nAlthough we are around record high monthly levels of 90 units sold core rooftop, in the quarter, we continue to believe there is a great deal of opportunity in used vehicles in our dealerships going forward.\nAs Earl mentioned, our same-store CP customer pay gross profit was up 14% versus the first quarter of 2019.\nThis allowed us to grow total aftersales gross profit by 3% versus pre-pandemic levels, despite the significant headwinds in warranty and collision, both of which will reverse in time.\nIn March, traffic counts increased and our same-store customer pay RO count grew 23% versus March of 2020.\nOur first quarter adjusted SG&A as a percentage of gross profit was 63%, down from 74% in the pre-pandemic first quarter of 2019.\nWe continued our upward trajectory in the first quarter by selling a record 4,000 vehicles through Acceleride, an increase of 124% over the prior year and 7% of total retail units sold.\nDespite a 7% decline in new vehicle industry sales driven by tight inventories and additional COVID lockdowns, our team did a tremendous job of growing margins and aggressively thinning the cost structure in order to realize a very strong quarterly profit in what is seasonally the weakest quarter of the year.\nWe easily set a record for the most profitable first quarter over the entire eight years of Group 1's ownership and are well positioned to benefit from a sales rebound coming out of the pandemic.\nAs of March 31, we had $83 million of cash on hand and another $245 million invested in our floorplan offset accounts bringing total cash liquidity to $328 million.\nThere was also another $283 million of additional borrowing capacity on our U.S. syndicated acquisition line bringing total immediate liquidity to over $600 million.\nWe also generated $157 million of adjusted operating cash flow in the first quarter and $134 million of free cash flow after backing out capex.\nOn a net basis, which considers all U.S. cash on hand, our leverage was 1.6 times as of March 31.\nOur quarterly floorplan interest of $7.6 million was a decrease of $5.3 million or 41% from the first quarter of 2020.\nNon-floorplan interest expense decreased by $4.3 million or 24% from prior year, primarily due to the last year's bond debt refinancing.\nWe have floorplan swaps averaging $550 million in place through 2026.\nWe also considering our mortgage swaps on bond debt, over 75% of our debt is at fixed rates.\nAs a result, a 100-basis point increase in interest rates would only have an approximate $0.20 negative impact on our annual EPS.\nRelated to our corporate development efforts, we previously announced the March acquisition of two Toyota franchises on Cape Cod that increased our new England platform to 10 stores and will contribute $120 million in incremental annual revenues.", "summaries": "This equates to adjusted earnings per share of $5.57 per diluted share, an increase of 236% over the prior year and an increase of 170% over the pre-pandemic first quarter of 2019.\nThis improvement was driven by new and used vehicle revenue increases in the U.S., of well over 20% in the first quarter.\nThis gives us a high level of confidence in our U.K. business during the remainder of 2021.\nNon-floorplan interest expense decreased by $4.3 million or 24% from prior year, primarily due to the last year's bond debt refinancing.", "labels": 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{"doc": "Just 13 months ago, along with a new leadership team, we began the process of turning around this iconic company.\nTritan Renew uniquely offers Tupperware's ability to design clear or transparent products with 50% certified recycled content, without compromising on quality or clarity.\nHistorically, we have done 30 to 35 million per year in business-to-business partnerships.\nThis past weekend, Tupperware ran a future segment using limited products with a major home shopping channel, who has access to more than 92 million homes across the U.S. through various media channels.\nIn the U.S. and Canada market, sales increased 83%, and sales force activity was up 92%.\nTupperware Mexico had an 18% sales growth in the first quarter on a 6% growth in average active sales force.\nThe new leader of this market worked with me over the last 10 years, and I'm confident he will be able to work with the local sales force to increase sales and profitability.\nIn Brazil, sales increased 46% on an easy first-quarter comparison and was achieved through an increase in sales force activity of 40%.\nAnd lastly, a key market in our loan-term growth plan in China, which declined 14% as active studios were down 7% versus last year.\nOur first-quarter sales were 460 million, which was an increase of 20% compared with last year in local currency and up 22% on a reported basis.\nand Canada, Mexico and Brazil contributed 74% of the dollar increase.\nOn a regional basis, North America increased 43%, South America increased 53%, Europe increased 12% and Asia was up 6%, excluding the negative impact from China's decline that you heard Miguel say.\nThese higher sales, coupled with our turnaround land cost savings led to a gross margin of 70.3%, 480 basis points higher than a year ago.\nOf the improvement, 330 basis points was attributable to lower manufacturing costs.\nAdjusted SG&A as a percentage of sales was 53.9% and reflected an 820 basis point improvement from last year.\nRightsizing efforts contributed 560 basis points and 310 basis points improvements are from lower promotional costs.\nThese improvements were partially offset by 50 basis points of higher distribution costs.\nWe estimate this incremental investment to be in the range of 30 to 35 million for the balance of 2021.\nAdditionally, through approximately 10 million of additional investments in our tax strategy, we believe we have the ability and opportunity to more quickly achieve a tax rate in the low 30 for the full year of 2021.\nWe expect these 2021 additional investments will result in SG&A in the mid-50% range in the near term.\nLonger term, we will continue to pursue SG&A at sub-50% of sales through ongoing centralization efforts, creating centers of excellence to leverage our size, simplifying our compensation plans, and through sales growth in our omnichannel initiatives.\nFor the first quarter, the improvements in gross margin and SG&A that I just discussed, combined with our contribution margin on the 20% sales growth resulted in an adjusted operating income of 75.3 million or 16.4% of sales, which reflects a significant improvement of 1,290 basis points versus prior year.\nIn addition to the higher operating income I just mentioned, Q1 EBITDA was favorably impacted by a one-time gain on sale of assets of $9 million, a $3 million benefit related to a grant from the China government normally received in the fourth quarter and a bad debt reversal in Germany of 2 million.\nThe improvements in the operations, higher sales and higher margins led to a GAAP diluted earnings per share in the first quarter of $0.85.\nThis is a dramatic turnaround from the loss of $0.16 in the first quarter of 2020.\nAnd adjusted earnings per share of $0.82 also improved significantly compared to just $0.09 last year.\nThe $0.73 of improvement in adjusted earnings per share includes $0.69 of turnaround plan savings profits associated with the growth in sales and less COVID-19 impact.\n$0.07 related to the China grant and the reversal of the bad debt reserves.\nOffset by $0.03 of acceleration of interest related to the debt repayment, which I'll discuss in a minute.\nIn the first quarter, our total balance of debt was 695 million, reflecting a reduction of nearly 300 million from the 991 million in the first quarter of last year.\nIn addition to the proactive actions we took in 2020 to reduce and restructure our debt, in the first quarter, we used the proceeds of approximately 34 million from the sale of noncore assets to pay down our term loan debt.\nThe debt reduction, together with strong improvement in EBITDA, resulted in a debt to adjusted EBITDA ratio for debt covenant purposes of 2.36 versus 5.36 last year and well below our required covenant of four.\nThe debt reduction also triggers a favorable 50 basis point reduction in our new term loan interest rate effective during the second quarter.\nWe expect the rate to decline from 9.75% to 9.25% on 240 million of term loan debt.\nAchieving double-digit growth for the third consecutive quarter, delivering profits that continue to reflect our rightsizing efforts and lowering our debt through the proceeds of noncore asset sales, resulting in a leverage ratio of 2.36 are continued evidence that our turnaround plan is working.", "summaries": "Our first-quarter sales were 460 million, which was an increase of 20% compared with last year in local currency and up 22% on a reported basis.\nFor the first quarter, the improvements in gross margin and SG&A that I just discussed, combined with our contribution margin on the 20% sales growth resulted in an adjusted operating income of 75.3 million or 16.4% of sales, which reflects a significant improvement of 1,290 basis points versus prior year.\nThe improvements in the operations, higher sales and higher margins led to a GAAP diluted earnings per share in the first quarter of $0.85.\nAnd adjusted earnings per share of $0.82 also improved significantly compared to just $0.09 last year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our sales decreased 26% year-over-year from $553 million to $410 million and our adjusted diluted earnings per share from continuing operations decreased 45% from $0.57 per share to $0.37 per share.\nOur sales to commercial customers decreased 42% and our sales to government and defense customers increased 4%.\nFor the quarter sales and government -- to government and defense customers were 49% of our total sales.\nAs we mentioned on the last earnings call, we expected relatively stable revenue which is what we saw in this quarter with sales up 2% sequentially.\nRegarding profitability, our adjusted diluted earnings per share from continuing operations were up 19% sequentially reflecting our continued margin improvement progress.\nOn an adjusted basis, which excludes the benefit of the CARES Act, our gross margin improved sequentially from 13.9% to 16.1% and our operating margin improved from 4% to 5%.\nWe are also proud to have fully reinstated salaries and 401(k) benefits at the beginning of the third quarter which had been a priority for us as we look to attract and retain top talent.\nWe generated $18 million from operating activities from continuing operations and remain in a strong balance sheet position with 1.1 times net debt to adjusted EBITDA.\nWe expanded our distribution relationship with GE subsidiary Unison on a five-year program from the US Air Force to provide and repair and overhaul of F-16 accessories and extended our support of the Navy's H-60 Seahawk platform for an additional seven years.\nWe also began operations on our previously announced Honeywell 737 MAX EBAS contract.\nOur sales in the quarter of $410.3 million were down 25.8% or $142.8 million year-over-year driven by the reduction in commercial passenger flying activity due to COVID-19.\nSequentially sales were up 1.7% with commercial sales up 7% driven by MRO volumes and government and defense sales down 3.3% driven by the scheduled reduction in activity and our program to deliver two C-40 aircraft to the US Marine Corps.\nGross profit margin in the quarter increased to 21% from 11.8% in the prior-year quarter driven primarily by the CARES Act payroll support.\nOn an adjusted basis, excluding the CARES Act support and other items, gross profit margin was 16.1% consistent with the 16% in the year-ago quarter despite the significant decline in sales.\nSequentially adjusted gross profit was up meaningfully from 13.9% to 16.1% reflecting the actions we have taken to reduce our indirect costs and drive efficiency.\nGross profit margin increased to 17% from 0.4% in the prior-year quarter, driven by the divestiture of the composites business and improved performance at the mobility operation.\nSG&A expenses were $44.9 million for the quarter.\nOn an adjusted basis, SG&A was $42.8 million or 10.4% of sales down $9 million from the prior-year quarter, reflecting the reduction of our overhead cost structure.\nWe have an $8.8 million promissory note associated with the CARES Act, which we expect to repay during the fourth quarter.\nOther adjustments during the quarter included $4 million of loss provision and exit costs for commercial programs contracts, $1.5 million of which reduced sales.\nIn addition, there was a gain of $4.3 million related to a legal settlement, which we have excluded from our adjusted results.\nAlso during the quarter, we reached a tentative agreement with the Department of Justice to settle the investigation of airlift under the False Claims Act for approximately $11.5 million.\nAs such, we recognized a charge in the quarter of $4.2 million in discontinued operations.\nIn the quarter, we generated $17.6 million of cash in our operating activities from continuing operations.\nWe reduced inventories by $21 million from our second quarter as we continued to focus on working capital management.\nOur net debt at quarter-end was $108.4 million, down from $112.1 million at the end of Q2 and from $171.1 million at the end of Q3 of last year.\nIn addition, our accounts receivable financing program has decreased by $37.2 million over the last year from $85.6 million at the end of the year-ago quarter to $48.4 million.\nOur overall leverage and liquidity remain strong with net debt of 1.1 times adjusted EBITDA, unrestricted cash of $99.2 million and unused capacity under our revolver of over $400 million.", "summaries": "Our sales decreased 26% year-over-year from $553 million to $410 million and our adjusted diluted earnings per share from continuing operations decreased 45% from $0.57 per share to $0.37 per share.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "The S&P 500 suffered the worst first quarter performance since 1928 while global equity and fixed income markets were equally battered.\nOur flagship LargeCap Value strategy showed resilience during the sell-off, capturing only about 85% of the downside and posting nearly 400 basis points of outperformance relative to the Russell 1000 Value Index.\nOur LargeCap Select strategy also finished the quarter ahead of the Russell 1000 Value benchmark and it now possesses a ranking in the top-decile among institutional peers in the eVestment large-cap value manager universe for the trailing three-year time period.\nOur SMidCap strategy also beat the Russell 2500 Value Index by over 400 basis points and now has returns above the benchmark in most trailing year periods.\nSmallCap was the hardest hit sector of our U.S. Value strategies, but our portfolio managers continue to focus on finding companies with strong fundamental qualities and finished the quarter ahead of the Russell 2000 Value benchmark by approximately 260 basis points.\nSmallCap's longer-term tracker record places it in the top-decile over the trailing seven-, 10- and since inception time periods.\nAmong institutional peers, our Alternative Income strategy ranked in the Top 20% for the trailing one-year and top-decile in the trailing five-, seven- and 10-year time periods.\nAdditionally, we tax loss harvest throughout the year instead of waiting until year-end, which helps lower our clients' tax bills and has provided over 200 basis points of additional annualized alpha over the last three years.\nIn our institutional and intermediary sales group, we had inflows of nearly $400 million and $950 million in outflows for total net outflows of $560 million.\nWe did an online campaign to 25,000 advisors a few weeks ago and we were thrilled to see over 10,000 views.\nTo-date, we've identified over 750,000 of cost reductions that are being implemented or in process over the balance of the year.\nWe will move to an outsourced trading model later this summer and expect to save over $1 million per year beginning in 2021.\nToday, we reported total revenues of $16.7 million for the first quarter of 2020 compared to $18.6 million in the fourth quarter of 2019 and $23.9 million in the prior year's first quarter.\nFirst quarter net income was $1.1 million or $0.13 per share compared to $2.5 million or $0.30 per share in the fourth quarter of 2019.\nEconomic earnings, a non-GAAP metric, were $4.2 million or $0.50 per share in the current quarter versus $5.4 million or $0.64 per share in the fourth quarter of 2019.\nFirst quarter net income of $1.1 million or $0.13 per share compared to $0.4 million or $0.05 per share in the prior year's first quarter.\nEconomic earnings for the quarter were $4.2 million or $0.50 per share compared to $4.1 million or $0.49 per share in the first quarter of 2019.\nFirmwide assets under management totaled $11.6 billion at quarter end and consisted of institutional assets of $6.3 billion or 55% of the total, wealth management assets of $3.8 billion or 33% of the total and mutual fund assets of $1.5 billion or 12% of the total.\nOver the quarter, we experienced market depreciation of $3 billion and net outflows of $0.6 billion.\nOur financial position continues to be very solid with cash and short-term investments at quarter end totaling $82.4 million and a debt free balance sheet.\nIn the first quarter, we repurchased approximately 272,000 shares of our common stock for an aggregate purchase price of $4.9 million.\nIn April, we repurchased an additional 407,000 shares for an aggregate purchase price of approximately $8.1 million.", "summaries": "Today, we reported total revenues of $16.7 million for the first quarter of 2020 compared to $18.6 million in the fourth quarter of 2019 and $23.9 million in the prior year's first quarter.\nFirst quarter net income was $1.1 million or $0.13 per share compared to $2.5 million or $0.30 per share in the fourth quarter of 2019.\nEconomic earnings, a non-GAAP metric, were $4.2 million or $0.50 per share in the current quarter versus $5.4 million or $0.64 per share in the fourth quarter of 2019.\nFirst quarter net income of $1.1 million or $0.13 per share compared to $0.4 million or $0.05 per share in the prior year's first quarter.\nEconomic earnings for the quarter were $4.2 million or $0.50 per share compared to $4.1 million or $0.49 per share in the first quarter of 2019.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n1\n1\n0\n0\n0\n0\n0"}
{"doc": "With this Advantage platform, we executed on her Delaware focused operating plan and captured cost synergies that resulted in $600 million of annual cash flow improvements.\nThis disciplined execution was rewarded by the market, with our share price achieving the highest return of any stock in the entire S&P 500 index during 2021.\nWith the operational momentum we've established, we have designed a capital program to efficiently sustain production at a ultra-low WTI breakeven funding level of around $30 a barrel.\nCombined with the full benefit of merger-related costs synergies and a vastly improved hedge book, we're positioned to deliver free cash flow growth of more than 70% compared to 2021.\nAs you can see on the graph, the strong outlook translates into a free cash flow yield of 14%, assuming an $85 WTI price.\nWith this differentiated framework, we've increased Devon's dividend payout for five consecutive quarters, and in aggregate, we paid out $1.3 billion of dividends in 2021, which is a per share increase of roughly two times that of 2020.\nAs you can see on the bar chart, we're on pace to essentially double our dividend again in the upcoming year, which equates to around 8%.\nThere's 45% increase in the fixed dividend reflects the confidence we have in our underlying business and financial performance as we head into 2022.\nAs you can see, Devon's yield of 8% is approximately six times higher than the S&P 500 index, and well in excess of the prevailing interest rate you can get from a 10-year treasury.\nOn Slide 10, in addition to our market-leading dividend payout, we're also excited to announce that we are increasing our share repurchase authorization by 60% to $1.6 billion.\nGiven this favorable setup, we put our money where our mouth is by aggressively repurchasing $589 million of shares just in the fourth quarter alone.\nThe first key point that is there is no change to the upstream capital budget of $1.9 to $2.2 billion as we disclosed last quarter.\nYou'll notice that our 22 program looks quite a bit like our 21 program.\nThe relatively steady level of activity in 22 is projected to sustain our production throughout the year, ranging from 570,000 to 600,000 Boe per day.\nDuring 2021, we had great success with our capital program that resulted in production growth rate of 34% compared to our first quarter 21.\nEach of these prolific projects eclipse 30-day rates of more than 5,000 Boe per day on a plural basis, exhibiting the world class reservoir potential that resides in the Delaware Basin.\nAt year-end, our proved reserves in the Delaware increased 18% on a Pro Forma basis, and these reserve additions replaced more than 200% of what we produce during the year.\nI find it especially impressive that our team added these reserves and an ultra-low F&D cost of only $5 per Boe.\nTo execute on this plan, we expect to run 14 rigs in 4 [inaudible] during the year.\nNot only with this level of activity continuing to grow Delaware production in 22, but the benefits of our operating scale and best practices from the merger integration, we are well-positioned to continue to improve our execution capabilities.\nThe operational improvements have also meaningfully reduced our cost over time to about $550 per lateral foot in 2021, which competes very well with anyone out there.\nAs I look ahead to 22, I expect our operational performance to continue to improve.\nBased on today's industry activity and commodity price projections, we've baked in around 15% higher costs than we saw in 2021.\nOn Slide 17, the next area I want to showcase is the momentum we're building in the Anadarko Basin, where we have a concentrated 300,000 net acre position in the liquids rig window of the play.\nWith the benefits of our $100 billion Dow JV Kerry, we drilled over 30 wells in 2021 and commenced the first production on 16 of those wells during the year.\nWith the benefit of state-of-the-art completion designs, and appropriately up spaced developments, per well capital cost of decrease by 25% versus legacy activity and well productivity to date has exceeded the type curve expectations by 35%.\nGiven the success, we've elected to step up activity in the Anadarko Basin to 3 rigs and 22.\nThis program will result in around 40 new wells coming online in 2022, allowing us to maintain steady production profile throughout the year and harvest significant amounts of free cash flow.\nCollectively, these assets generated more than a billion dollars of free cash flow in 2021, and we're on pace to produce a similar amount of free cash flow in 22.\nWe do not have finalized figures yet for this past year, but I can tell you our scope 1 & 2 GHG emissions will improve roughly by 20% in 2021 versus our 19 baseline, well ahead of that, stated the stated goals from this past summer.\nIn 2020, we reduced methane emissions by 47% and we reduce flaring by 33%.\nLooking specifically at 22, we have many visible catalysts that will drive important results, such as advancing advancements and leak detection technologies, improved facility design, facility retrofits, wide-scale deployment of air-driven pneumatic controllers, and electrification of select field operations.\nBeginning with production, our total volumes in the fourth quarter averaged 611,000 Boe per day, exceeding the midpoint of our guidance by 3%.\nIn the upcoming quarter, we expect production to approximate 570,000 Boes' per day.\nWe expect this to be our lowest production quarter of the year due to winter weather downtime that reduced volumes by about 15,000 Boe per day.\nMoving to expenses, our lease operating GP&T costs exceeded 2021 at a rate of $7.25 per barrel.\nThis result represents a 1%t decline compared to where we started the year, but with slightly elevated compared to our forecast.\nOverall, our exposure to higher-value production, coupled with the low-cost structure, expanded Devon's field level cash margin to $42.37 per barrel, a 14% increase from last quarter.\nIn aggregate, G&A and financing costs declined 31% year over year on a pro forma basis due to lower personnel cost and the company's ongoing debt reduction program.\nCutting to the bottom line, Devon's core earnings increase for the sixth quarter in a row to a $1.39 per share.\nThis level of earnings momentum translated into operating cash flow of $1.6 billion in the fourth quarter.\nafter funding our disciplined maintenance capital program, we generated $1.1 billion of free cash flow in the quarter.\nThis represents growth in free cash flow of more than 400% compared to where we started the year after closing the WPX merger.\nAs Rick covered earlier, in conjunction with our earnings report, we announced a fixed plus variable dividend of $1 per share that is payable in March and includes the benefit of our 45% raise to the fixed dividend.\nSince we initiated the program in November, we're off to a great start by repurchasing $14 million shares at a total cost of $589 million.\nThis equates to an average price of $42 per share, which is around a 25% discount to our current trading levels.\nWith the board expanding our share repurchase program to $1.6 billion, we now have roughly $1 billion remaining on this authorization, and we expect to continue to opportunistically buy back stock in 2022.\nIn 2021, we made significant progress strengthening Devon's financial position by retiring more than $1.2 billion of outstanding notes, and we achieved our net debt to EBITDA target ahead of plan, exiting the year at less than a turn of leverage.\nIn 2021, we achieved a 20% return on capital employed, and we are positioned for this measure to substantially increase in 2022.", "summaries": "The relatively steady level of activity in 22 is projected to sustain our production throughout the year, ranging from 570,000 to 600,000 Boe per day.\nBeginning with production, our total volumes in the fourth quarter averaged 611,000 Boe per day, exceeding the midpoint of our guidance by 3%.\nIn the upcoming quarter, we expect production to approximate 570,000 Boes' per day.\nWe expect this to be our lowest production quarter of the year due to winter weather downtime that reduced volumes by about 15,000 Boe per day.\nCutting to the bottom line, Devon's core earnings increase for the sixth quarter in a row to a $1.39 per share.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "About 90% of our sales are generated by proprietary products, and over [ three-quarters ] of our net sales come from products for which we believe we are the sole source provider.\nBut in Q2, we acquired the Cobham Aero Connectivity business for an enterprise value of $965 million.\nOn the divestiture front, in the last 60 days, we signed agreements to sell three additional, less proprietary and mostly defense businesses for about $240 million.\nCollectively, these businesses have revenues of roughly $180 million and EBITDA margins in the low 20%.\nIn our business, we saw another quarter of sequential improvement in commercial aftermarket revenues with total commercial aftermarket revenues up 12% over Q1.\nIn the commercial market, which typically makes up close to 65% of our revenue, we will split our discussion into OEM and aftermarket.\nOur total commercial OEM market revenue declined approximately 43% in Q2 when compared with Q2 of the prior-year period.\nOn a positive note, Q2 bookings demonstrated strong sequential improvement of over 20% compared to Q1 bookings and solidly outpaced sales.\nTotal commercial aftermarket revenues declined by approximately 39% in Q2 when compared to prior-year Q2.\nTo repeat, sequentially, total commercial aftermarket revenues grew approximately 12% in Q2, another encouraging data point.\nQ2 bookings sequentially improved almost 30% and solidly outpaced sales.\nIATA's most recent forecast expects that calendar-year 2021 revenue passenger miles will be 57% below 2019, but we are cautiously optimistic.\nNow let me speak about our defense market, which, traditionally, is at or below 35% of our total revenue.\nThe defense market revenue, which includes both OEM and aftermarket revenues, grew by approximately 8% in Q2 when compared with the prior-year period.\nEBITDA as defined of about $519 million for Q2 was down 23% versus prior Q2.\nEBITDA as defined margin in the quarter was approximately 43.5%.\nWe were able to improve our EBITDA as defined margin approaching 100 basis points sequentially despite the acquisition dilution from the recent Cobham acquisition of about 100 basis points as well.\nWe are still not in a position to issue formal fiscal 2021 sales EBITDA as defined in net income guidance at this time.\nWe assume a steady increase in commercial aftermarket revenue going forward and expect full-year fiscal 2021 EBITDA margin roughly in the area of 44%, which could be higher or lower based on the rate of commercial aftermarket recovery.\nFor the quarter, organic growth was negative 20%, driven by the declines in our commercial end markets and despite some healthy defense growth in the quarter.\nThat is, we still anticipate our GAAP cash and adjusted rates to be in the 18% to 22% range.\nOn interest expense, we now expect the full-year charge to be $1.06 billion, reduced from prior guidance, primarily for the refinancing activity completed this year.\nFree cash flow, which we traditionally define at TransDigm as our EBITDA as defined less cash interest payments, cash capex and cash taxes, was roughly $146 million.\nIn line with our prior November guidance, we still expect this amount to be in the $800 million area, maybe a little better for our fiscal '21.\nWe ended the second quarter with $4.1 billion of cash, down from $4.9 billion at last quarter's end.\nNote that last quarter's $4.9 billion balance was prior to the Cobham acquisition for an enterprise value of $965 million that closed on January 5.\nPro forma for the closing of this acquisition, our Q2 net debt-to-LTM-EBITDA ratio was 8.2 times.", "summaries": "We are still not in a position to issue formal fiscal 2021 sales EBITDA as defined in net income guidance at this time.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "We had a strong start to our fiscal year, reporting earnings of $2.55 a share in Q1 versus $11.22 in the prior-year quarter.\nExcluding restructuring and one-time items, we generated a record $2.46 per share in earnings in Q1 compared to $0.64 in the prior-year quarter.\nDuring the quarter, we recognized a net after-tax restructuring gain of $5 million or $0.09 a share primarily related to the sale of a shuttered facility owned by our WSP joint venture.\nThat compares to restructuring and impairment charges of $0.16 a share a year ago.\nIn addition, the prior-year results included a net benefit of $10.74 per share related to our investment in Nikola Corporation.\nConsolidated net sales in the quarter of $1.1 billion were up significantly compared to $703 million in Q1 of last year.\nGross profit for the quarter increased to $219 million from $113 million a year ago and our gross margin increased to 19.7% from 16.1%.\nAdjusted EBITDA in Q1 was a record $196 million, up from $75 million in Q1 of last year and our trailing 12-month adjusted EBITDA is now $604 million.\nIn Steel Processing net sales of $823 million nearly doubled from $431 million in Q1 of last year due to higher average selling prices and increased volumes.\nTotal shipped tons were up 14% from last year's first quarter when demand was just beginning to recover from COVID-related shutdowns, particularly at our automotive customers.\nDirect tons in Q1 were 49% of mix, which was consistent with the prior-year quarter.\nIn the current quarter, steel generated adjusted EBIT of $108 million and adjusted EBIT margin of 13% compared to $14 million and 3% in Q1 of last year.\nIn the quarter, we had pre-tax inventory holding gains estimated to be $47 million or $0.68 per share compared to holding losses of $7 million or $0.09 a share in Q1 of last year.\nIn Consumer Products, net sales in Q1 were $148 million, up 10.6% from the prior-year quarter.\nEBIT for the consumer business was $21 million and EBIT margin was 14%, down from $24 million and 18% in the prior-year quarter.\nBuilding Products generated net sales of $115 million in Q1, which was up 30% from $88 million in the prior-year quarter.\nBuilding Products EBIT was $49 million and EBIT margin was 42%, up significantly from $23.4 million and 27% in Q1 of last year.\nWe saw significant growth year-over-year in our wholly owned Building Products businesses but the majority of the upside was driven by strong results at WAVE and ClarkDietrich that contributed $26 million and $17 million respectively in equity earnings.\nIn Sustainable Energy Solutions net sales in Q1 were $25 million, down from $28 million in the prior-year quarter.\nThe business reported a negative EBIT of $3 million in the current period as volumes were too low to absorb fixed costs.\nWith respect to cash flows in our balance sheet, operations used cash of $50 million in the quarter, which was driven by $149 million increase in working capital, primarily associated with higher steel prices along with annual accrued compensation being paid out during the quarter.\nDuring the quarter, we received $20 million in dividends from our unconsolidated JVs, received $27 million in proceeds from asset sales, completed one acquisition for $105 million, invested $24 million in capital projects, paid $15 million in dividends and spent $61 million to repurchase 1 million shares of our common stock.\nFollowing the Q1 purchases, we have 8.3 million shares remaining under our share repurchase authorization.\nFunded debt at quarter end of $706 million was relatively flat sequentially and interest expense of $8 million was in line with the prior-year quarter.\nEnded Q1 with $399 million in cash and we continue to take a balanced approach to capital allocation focused on growth and on returning capital to shareholders.\nEarlier today, the Board declared a $0.28 per share dividend for the quarter, which is payable in December 2021.\nIn fiscal '21, 64% of our facilities achieved a four or five star performance rating.", "summaries": "We had a strong start to our fiscal year, reporting earnings of $2.55 a share in Q1 versus $11.22 in the prior-year quarter.\nExcluding restructuring and one-time items, we generated a record $2.46 per share in earnings in Q1 compared to $0.64 in the prior-year quarter.\nConsolidated net sales in the quarter of $1.1 billion were up significantly compared to $703 million in Q1 of last year.", "labels": "1\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In the second quarter, we reported core earnings of $836 million or $2.33 per diluted share; 8% growth in year-over-year diluted book value per share, excluding AOCI; and a trailing 12-month core earnings ROE of 13.1%.\nIn addition, we returned $694 million to shareholders in the quarter from share repurchases and common dividends.\nFor nearly 40 years, we have been a leader in the small commercial market and have consistently generated highly profitable margins.\nJust two years ago, this business was generating combined ratios above 110%.\nWe have nearly $2.5 billion of annual premium in Global Specialty, and I am very optimistic about the future as we realize the full potential of the products and capabilities of this business.\nLast quarter, we shared our target of a core earnings ROE of 13% to 14% in 2022 and into 2023 driven by top line growth across the businesses, margin improvement with strong earned pricing trends in excess of loss costs, operating efficiencies and proactive and prudent capital management.\nSecond quarter core earnings were $836 million or $2.33 per diluted share and up 91% from last year.\nIn P&C, the combined ratio of 88.5 improved 8.4 points from the second quarter of 2020, including improvements in both the loss and expense ratios.\nThe expense ratio in the quarter improved by 220 basis points to 31%, reflecting earned premium growth as well as cost savings from Hartford Next and a lower provision for doubtful accounts.\nIn Commercial Lines, we produced an excellent underlying combined ratio of 89.4, which included ex COVID loss ratio improvement in Middle & Large Commercial and in Global Specialty and expense ratio improvement across all businesses.\nResults in Commercial Lines also improved year-over-year due to lower direct COVID losses of $3 million compared to $213 million or 9.9 points in second quarter 2020.\nWritten premium was up 15% with growth in all lines of business, including the effect of higher audit and endorsement premiums reflecting the economic rebound.\nPersonal Lines generated an underwriting gain of $96 million and an underlying combined ratio of 88.2%.\nAcross Property & Casualty, catastrophes were $128 million in the quarter, $120 million lower than second quarter 2020, which included $110 million for civil unrest.\nP&C prior accident year reserve development within core earnings was a net favorable $188 million, including an $82 million reduction in catastrophe reserves as well as decreases in workers' compensation, personal auto liability, package business and bond.\nThis compared to $322 million of net favorable reserve development in second quarter 2020, which included a $400 million decrease in catastrophe reserves, including the subrogation benefit from PG&E.\nIn second quarter 2021, we ceded an additional $39 million of unfavorable Navigators reserve development to the adverse development cover primarily related to U.S. financial lines.\nGroup Benefits core earnings were $149 million, up 46% over prior year.\nSales were nearly $100 million in the quarter, and we experienced a continuation of strong persistency at 91.1%.\nAll-cause excess mortality in the quarter was $25 million, which includes $88 million for second quarter death dates, offset by $63 million of favorable development for prior period excess mortality estimates, predominantly related to the first quarter.\nThrough the first six months of the year, our results include excess mortality of $210 million.\nThe disability loss ratio for the quarter was 64.2%, up 1.6 points as the prior year benefited from favorable short-term disability claim frequency due to the deferral of elective medical procedures at the beginning of the pandemic.\nAt Hartford Funds, core earnings for the quarter were $51 million compared with $33 million for the prior year period, reflecting the impact of daily average AUM increasing 36%.\nMutual Fund net flows were very strong at $2.4 billion of net inflows for the quarter.\nThe Corporate core loss was higher at $52 million in second quarter 2021 compared to a loss of $6 million in the prior year quarter due to income from our investment in Talcott in the second quarter of 2020 of $68 million before tax.\nOn June 30, 2021, we received $217 million from the sale of our ownership interest in Talcott, resulting in a realized capital gain of $46 million before tax in the quarter.\nNet investment income was $581 million for the quarter, up 71% from the prior year quarter, benefiting from very strong annualized limited partnership return of 33%, driven by higher valuations and sales of underlying investments within private equity funds.\nThe total annualized portfolio yield, excluding limited partnerships, was 3.1% before tax compared to 3.4% in the second quarter of 2020.\nThe portfolio credit quality remains strong with no credit losses on fixed maturities in the quarter and a $10 million gain from the partial reduction of the valuation allowance for credit losses on mortgage loans due to improved economic scenarios.\nNet unrealized gains on fixed maturities before tax were $2.8 billion at June 30, up from $2.3 billion at March 31 due to lower interest rates and tighter credit spreads.\nThe program delivered $195 million in pre-tax expense savings in the six months ended June 30, 2021, compared to the six-months period in 2019.\nWe continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.\nBook value per diluted share, excluding AOCI, rose 8% since June 30, 2020, to $49.01.\nAnd our trailing 12-month core earnings ROE was 13.1%.\nDuring the quarter, The Hartford returned $694 million to shareholders, including $568 million of share repurchases and $126 million in common dividends paid.\nFor the 6-month period, we returned $933 million with $691 million of share repurchases and $242 million in common dividends paid.\nFrom July one to July 27, we repurchased 1.9 million shares for $116 million.\nThere remains $1.7 billion available under our $2.5 billion authorization through 2022.\nResources at the holding company as of June 30 included a total of $1.7 billion in cash and investments.\nDuring the quarter, we received $337 million in dividends from subsidiaries and expect approximately $725 million to $900 million over the second half of 2021.\nIn the second quarter, Property & Casualty produced an outstanding underlying combined ratio of 89.2.\nMiddle & Large Commercial accelerated into the second quarter, producing superior written premium growth of 20%.\nMiddle Market new business of $147 million, up 48%, was at its highest level in two years.\nPolicy retention in Middle Market increased four points to 82% while maintaining disciplined risk-by-risk underwriting decisions using our increasingly refined segmentation tools.\nLike Small Commercial, increased payroll and rising wages contributed to the second quarter Middle & Large Commercial written premium growth of 20%.\nGlobal Specialty produced another strong quarter with written premium growth of 16%.\nNew business growth of 27% was equally impressive, and retention is up significantly from prior year.\nIn the quarter, the breadth of our written premium growth was led by 25% in wholesale and 18% in U.S. financial lines.\nGlobal Reinsurance also had an excellent quarter with written premium growth of 26%.\nDuring the quarter, cross-sell new business premium between Global Specialty and Middle Market was $28 million or 11% of related new business sold by these segments.\nSince the Navigators acquisition, this effort has delivered $185 million in new business and is on pace to eclipse our initial goal of $200 million a year early.\nWe now have close to 2,500 accounts with policies that record premium in both Middle Market and Global Specialty.\nThe combined new business growth from these two lines has increased more than 50% since the acquisition.\nU.S. standard lines and Global Specialty commercial pricing, excluding workers' compensation, was 9.2% in the quarter.\nMiddle Market ex workers' compensation price change of 8.2%, although down 1.1 points, continues to exceed loss cost trend and reflects improved profitability performance.\nIn the workers' compensation, renewal repricing was 1% in the quarter.\nGlobal Specialty renewal written price remained strong in the U.S. at 11% and international at 24%.\nIn the quarter, the Commercial Lines underlying ex COVID loss ratio was 57%, 1.3 points better than Q2 of last year.\nAs expected, the second quarter underlying combined ratio rose 7.5 points to 88.2.\nWritten premium declined 5% after adjusting for both the second quarter 2020 extended billing grace period and the $80 million -- $81 million refund.\nAccording to J.D. Power, auto shopping rates among the 50-plus age segment are down approximately 5% from third quarter 2020 when they first initiated the survey.\nOur top line outperformed, providing confidence we will achieve our Commercial Lines 4% to 5% multiyear CAGR guidance.\nI'm thrilled with our continued progress and look forward to updating you in 90 days.", "summaries": "We continue to expect full year pre-tax savings of approximately $540 million in 2022 and $625 million in 2023.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Winnebago Industries is built on our strong momentum and delivered robust results in the second quarter of fiscal 2022, capitalizing on sustained and elevated demand for our portfolio of premium products.\nWe grew revenues by 39% year over year to $1.2 billion, matching the previous sales record set last quarter.\nA recent RV industry association study confirmed that 51% of new RVers in the 2020 and 2021 time periods suggested that that reasons surrounding COVID were certainly the impetus for purchasing in RV.\nOur friends at the campgrounds of America cited a 16% projected increase in households camping through November of 2021 versus the same period in 2020.\nWith 50% already seeking an upgrade via new parts or a different RV altogether.\nSix in 10 new millennial RVs, those who bought an RV for the first time in 2020 and 2021, already say they are likely to purchase another RV in the future.\nAs it relates to the growing popularity of flexible work, among new RVers 25% of millennials and 27% of Gen Xers stated that they used an RV for a place to stay while working as a reason for purchasing the RV.\nOn a trailing three-month basis through January, our RV market share was 14.3%, up a full 100 basis points from 13.3% for the same period in 2021.\nAnd in our marine segment, Barletta has now grown to be the fifth-largest pontoon boat company by market share at 4.6% on a trailing three-month basis through December, and recent retail results show them approaching and breaking the 5% barrier.\nWith our strong execution and pricing actions, Winnebago Industries delivered gross margin of 18.6% during the second quarter, equal to the great results last year.\nAs Mike mentioned, second-quarter revenues, including results for Barletta were $1.2 billion, reflecting an increase of 39%, compared to $839.9 million for the fiscal 2021 period.\nExcluding Barletta, our organic growth for second quarter was 29%.\nGross profit was $216.6 million, representing an increase of 38%, compared to $156.6 million for the fiscal 2021 period.\nGross profit margin of 18.6% was equal to last year, driven by operating leverage and pricing offset by higher material and component costs as well as some operating inefficiencies caused by supply chain constraints and the associated inconsistencies in the deliveries of parts and subcomponents.\nOperating income was $136.8 million for the quarter, an increase of 37% compared to $100 million for the second quarter of last year.\nOur second-quarter operating income includes $0.5 million in acquisition-related costs and $4.6 million of incremental amortization of intangible assets related to the Barletta acquisition.\nFiscal 2022 second-quarter net income was $91.2 million, an increase of 32%, compared to $69.1 million in the prior-year quarter.\nNote that fiscal 2022 net income includes $6.5 million of contingent consideration fair value adjustment, which is included in non-operating income related to the earn-out included in the deal structure associated with the Barletta acquisition.\nWe are pleased to note that Barletta performance through the end of calendar 2021 as specified by the July 2021 purchase agreement will result in the full dispensation of $15 million which is the maximum payout for the first earn-out period tied to calendar year 2021 performance.\nReported earnings per diluted share was $2.69, compared to reported earnings per diluted share of $2.04 in the same period last year.\nAdjusted earnings per diluted share was $3.14, which represents an increase of 42%, compared to adjusted earnings per diluted share of $2.21 in the same period last year.\ntowable segment revenues were $646.6 million for the second quarter, up 47% over the prior year, primarily driven by pricing increases across the segment and unit growth of 13%.\nUnit growth of 13% is especially strong given last year's 55% growth versus fiscal year 2020 for the same time period.\nSegment adjusted EBITDA was $100.6 million, up 61% over the prior-year period.\nAdjusted EBITDA margin of 15.6% increased 140 basis points over the prior year, driven by operating leverage and pricing, partially offset by cost input inflation.\nIn the second quarter, revenues for the motorhome segment were $417.6 million, up 9% from the prior year driven by pricing increases across the segment.\nSegment adjusted EBITDA was $46.1 million, representing a decrease of 10% from the prior year.\nAdjusted EBITDA margin was a strong 11%, while a decrease of 230 basis points from the prior year.\nIn the second quarter, revenues for the marine segment were $97.3 million.\nmarine segment adjusted EBITDA of $13.0 million was $11.9 million higher than the same period last year, and adjusted EBITDA margin was 13.3%, 620 basis points higher than last year, reflecting the addition of the Barletta business.\nWe continue to maintain a healthy liquidity position with approximately $327 million available, including an untapped ABL of $192.5 million.\nOur leverage ratio is currently at 0.8 times.\nOn a fiscal year-to-date basis, capex spending is $43.4 million, which is three times higher than last year's year-to-date capex.\nDuring the quarter, share buybacks totaled $40 million, and on a year-to-date basis, we have bought back $59.6 million worth of shares.\nAs discussed previously, our dividend this year is running at a 50% higher than it was last year.\nCombining share buybacks with dividends, we have returned a robust $115 million to shareholders on a trailing 12-month basis through the second quarter of fiscal 2022.\nLooking at the RV industry at a macro level, we believe wholesale shipments for the calendar year could be down low to mid-single digits percentage-wise, as compared to the record 600,000 units shipped in calendar 2021.\nOur trailing 12-month sales of $4.3 billion, compares to $976 million at the end of fiscal 2015.\nOur fiscal year-to-date 19.2% gross margin, compares to 10.7% in fiscal 2015.\nOur current three-month trailing RV share of 14.3%, compares to 2.9% at the end of 2015.\nOur approximate working capital of 11% in this fiscal year, compares favorably to 20% in 2015.\nOur leverage ratio is under one times for each of the last four fiscal quarters, and in the last 12 months, we have returned more than $100 million of cash to shareholders.", "summaries": "Winnebago Industries is built on our strong momentum and delivered robust results in the second quarter of fiscal 2022, capitalizing on sustained and elevated demand for our portfolio of premium products.\nWe grew revenues by 39% year over year to $1.2 billion, matching the previous sales record set last quarter.\nAs Mike mentioned, second-quarter revenues, including results for Barletta were $1.2 billion, reflecting an increase of 39%, compared to $839.9 million for the fiscal 2021 period.\nReported earnings per diluted share was $2.69, compared to reported earnings per diluted share of $2.04 in the same period last year.\nAdjusted earnings per diluted share was $3.14, which represents an increase of 42%, compared to adjusted earnings per diluted share of $2.21 in the same period last year.", "labels": "1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In the first quarter, Capital One earned $3.3 billion or $7.03 per diluted common share.\nPre-provision earnings increased 1% in the quarter to $3.4 billion, and we recorded a provision benefit of $823 million.\nAfter recognizing $535 million of gains during 2021 on our Snowflake investment, we had a loss on our position in the first quarter of $75 million or $0.12 per share.\nWe've now fully exited our position with a cumulative gain of $460 million.\nIn the first quarter, we released $1.6 billion of allowance.\nThe release was driven by strong credit performance across all of our businesses and a more favorable economic outlook that includes the $1.9 trillion stimulus package passed in March.\nAfter the impact of the $1.6 billion allowance release, our coverage levels declined modestly across all segments from the prior quarter and remain well above pre-pandemic levels.\nOur domestic card coverage is now 10.5%, down from 10.8% last quarter.\nOur branded card coverage is 12.1%.\nCoverage in our consumer business declined 38 basis points to 3.6%.\nAnd coverage in our commercial banking business fell 23 basis points to 2%.\nYou can see our preliminary average liquidity coverage ratio during the first quarter was 139%, well above the 100% regulatory requirement.\nOur liquidity reserves from cash, securities, and federal home loan bank capacity ended the quarter at approximately $151 billion.\nThe $7 billion increase in total liquidity is largely attributable to strong inflows of consumer and commercial deposits in the last few weeks of the quarter.\nOur common equity Tier 1 capital ratio was 14.6% at the end of the first quarter, up 90 basis points from the fourth quarter and 260 basis points higher than a year ago.\nWe continue to estimate that our CET1 capital need is around 11%.\nRecall that in January, our board of directors authorized a repurchase plan of up to $7.5 billion of the company's common stock.\nIn the first quarter, we repurchased $400 million of -- $490 million of common stock at an average price of approximately $114 per share.\nBased on the Fed's extension of the trailing four-quarter average earnings rule, our share repurchase capacity will be limited to approximately $1.7 billion in the second quarter.\nDomestic card purchase volume for the first quarter was up 8.4% year over year, with growth accelerating in March.\nCompared to the first quarter of 2019, purchase volume is up 17%.\nAt the end of the first quarter, domestic card ending loan balances were down $18.5 billion or about 17% year over year.\nExcluding the impact of a partnership portfolio moved to held-for-sale last year, first-quarter ending loans declined about 15% year over year.\nThe domestic card charge-off rate for the quarter was 2.54%, a 214-basis-point improvement year over year.\nThe 30-plus delinquency rate at quarter end was 2.24%, 145 basis points better than the prior year.\nFirst-quarter provision for credit losses improved by nearly $4 billion year over year.\nStrong credit and purchase volume growth were also key drivers of domestic card revenue margin, which was up 229 basis points year over year to 17.2%.\nDriven by auto, first-quarter ending loans increased 10% year over year in the consumer banking business.\nAverage loans grew 9%.\nAuto originations were up 16% year over year, and up 20% from the linked quarter.\nFirst-quarter ending deposits in the consumer banking were up $36.4 billion, or 17% year over year.\nAverage deposits were up 16%.\nOn a linked-quarter basis, ending deposits were up 2% and average deposits were flat.\nFirst-quarter consumer banking revenue increased 22% from the prior-year quarter, driven by growth in auto loans and retail deposits.\nFirst-quarter provision for credit losses improved by $986 million year over year, driven by an allowance release and lower charge-offs in our auto business.\nYear over year, the first-quarter charge-off rate improved 104 basis points to 0.47%, and the delinquency rate improved 217 basis points to 3.12%.\nFirst-quarter ending loan balances were down 9% year over year.\nAverage loans were down 3%.\nQuarterly average deposits increased 24% from the first quarter of 2020 and 4% from the linked quarter as middle market and government customers continued to hold elevated levels of liquidity.\nFirst-quarter revenue was up 4% from the prior-year quarter.\nThe criticized performing loan rate was 9.2%, and the criticized nonperforming loan rate was 0.9%.", "summaries": "In the first quarter, Capital One earned $3.3 billion or $7.03 per diluted common share.\nPre-provision earnings increased 1% in the quarter to $3.4 billion, and we recorded a provision benefit of $823 million.\nOur common equity Tier 1 capital ratio was 14.6% at the end of the first quarter, up 90 basis points from the fourth quarter and 260 basis points higher than a year ago.\nAverage loans were down 3%.", "labels": 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{"doc": "Winnebago Industries grew fourth-quarter revenues 40.4% year over year, and 56.8% on an organic basis ex-Newmar, compared to our fiscal 2019 fourth quarter.\nSecond, Winnebago Industries trend of expanding market share accelerated in the fourth quarter, gaining a full 2.1 percentage points of share during the three-month period ending August.\nOur employees now 6,800 plus drawn with the addition of Barletta, have worked tirelessly to provide the high-quality products and exceptional service our customers and dealer partners have come to expect.\nOver 10 million households camp for the first time in 2020, and we are tracking toward another estimated 4.3 million households to have their first camping experience in 2021.\nAs of August 2021, our RV fiscal year-to-date market share is now 12.5%, up 140 basis points from the same period last year.\nThese operational efforts can be clearly seen as we kept off the fiscal year with record consolidated annual gross margins of 17.9%.\nFourth-quarter revenues were a record $1 billion, an increase of 40% compared to the fiscal 2020 fourth quarter.\nFourth quarter consolidated gross profit margin of 18.1% was up 150 basis points compared to the same period last year due to leverage, pricing, including lower discounts and allowances and profitability initiatives.\nFourth-quarter earnings per diluted share was a record $2.45, an increase of 96% versus the same period last year.\nFourth-quarter adjusted earnings per diluted share was a record $2.57, up 77% versus the same period last year.\nConsolidated fiscal 2021 record revenues of $3.6 billion increased approximately 54% from $2.4 billion in fiscal 2020, positively impacted by strong consumer demand for Winnebago Industries product, coupled with continued RV market share gains.\nAnnual gross profit margin improved 460 basis points to a record 17.9%, primarily due to robust fixed cost leverage, profitability initiatives, increased pricing, including lower discounts and allowances and favorable segment mix.\nFull-year earnings per diluted share were a record $8.28, an increase of 350% compared to fiscal 2020.\nAnnual adjusted earnings per diluted share also hit a record high of $8.55, an increase of 231% compared to adjusted earnings per diluted share of $2.58 in the same period last year.\nTowable segment revenues for the fourth quarter were $560 million, up approximately 35% from $414 million in fiscal 2020, primarily driven by strong-end consumer demand and pricing, which was implemented to offset inflationary cost input pressures.\nSegment adjusted EBITDA for the fourth quarter was $83.4 million, up approximately 36% year over year, primarily driven by the higher revenues.\nFourth-quarter adjusted EBITDA margin of 14.9% increased 10 basis points, compared to the same period last year, primarily driven by operating leverage, which was offset by a shift in mix favoring travel trailers versus fifth wheel.\nFor the full-year fiscal 2021, revenues for the towable segment were a record $2 billion, up 64% from fiscal 2020, driven by high demand for our towable products and pricing, which was implemented to offset inflationary cost input pressures.\nSegment adjusted EBITDA for the full year was $289 million, up 95% from fiscal 2020.\nSegment adjusted EBITDA margin of 14.4% increased 230 basis points for the full year over fiscal 2020.\nIn the fourth quarter, revenues for the motor home segment were $448.9 million, up approximately 49% from the prior year, driven by strong end consumer demand, particularly in class B and class A and pricing, which was implemented to offset inflation.\nSegment adjusted EBITDA was $50.4 million, up approximately 159% from the prior year.\nAnd adjusted EBITDA margin was 11.2%, an increase of 480 basis points over the prior year and 150 basis points sequentially, driven by fixed cost leverage and profitability initiatives.\nFor the full-year fiscal 2021, revenues from motor home segment were $1.5 billion, up approximately 46% compared to fiscal 2020 due to increased unit sales and pricing.\nSegment adjusted EBITDA for the full year was $169.2 million, up 414% from fiscal 2020.\nSegment adjusted EBITDA margin for the full year was 11%, up 790 basis points over fiscal 2020.\nThe company had outstanding debt of $528.6 million comprised of $600 million of gross debt, net of convertible note discount of $60.4 million and net of debt issuance costs of $11.1 million.\nWorking capital was $651.6 million.\nOur current net debt to adjusted EBITDA ratio is 0.4 times, below our targeted range of 0.9 to 1.5 times providing financial flexibility and balance sheet strength to enable continued investment in our strategic imperatives and health returns for our shareholders.\nOur cash balance increased to $434.6 million at the end of fiscal 2021, and we have not drawn on our $192.5 million ABL.\nThis liquidity of approximately $627 million provided the necessary funding for the Barletta acquisition, which closed in early fiscal 2022.\nWe also bought back approximately $45 million worth of shares throughout the year with approximately $35 million occurring in the fourth quarter.\nCombining share repurchases with dividends paid, Winnebago Industries returned a total of $62 million to shareholders in fiscal 2021, while also growing the business significantly.\nThe effective income tax rate for the full year was 23.3% compared to 20.5% for fiscal 2020 due to relatively consistent year-over-year tax credits on higher pre-tax income in fiscal 2021.\nLooking ahead to fiscal 2022, we expect our tax rate to be in the range of 23.5% to 24.5%, not considering unforeseen discrete items or any change in the tax law.\nOn August 18, 2021, the company's board of directors approved a quarterly cash dividend of $0.18 per share, payable on September 29, 2021, to common stockholders of record at the close of business on September 15, 2021.\nThis quarter's dividend declaration represents a 50% or $0.06 per share increase from the previous quarter and further demonstrates our confidence in future business performance while also delivering financial returns to our shareholders.\nAs mentioned previously, we returned approximately $45 million to shareholders through share repurchases during the year.\nwith approximately $35 million occurring in the fourth quarter.\nTo enable further repurchase activity in the future, our board approved a new share buyback program on October 13 that authorizes us to repurchase up to $200 million of our shares in the future.\nSecond, going forward, we will be adjusting for 100% of intangible amortization within our adjusted earnings per diluted share metric.\nThird, the tax rate for adjusting items that impact reported earnings per share to arrive at adjusted earnings per share will be 24.2%.\nWe have historically utilized the federal statutory 21% rate.\nIn the spirit of reducing our footprint for the next generation of outdoor enthusiasts, we recently strengthened our commitment to sustainability by joining the business ambition for 1.5 degrees Celsius, a United Nations-backed global coalition of business leaders.\nAs part of this program, we are committing to help limit the impact of climate change by setting a goal to achieve net zero greenhouse gas emissions by 2050.\nAs I mentioned earlier, over 14 million households will have experienced camping for the first time during the 2021 and 2021 period.\nThe level of price increases year-over-year across our portfolio of our respective brands varies from mid-single digits to 20% plus.\nWe are aligned with RVIA's recent -- recently released RVIA forecast for calendar year 2022, which calls for 600,000 wholesale shipments or a growth of 4% versus the calendar year 2021 forecast of 577,000 units.\nOn a fiscal year 2022 basis for Winnebago Industries, the RVIA forecast translates to 605,000 wholesale industry shipments or 6% growth compared to the fiscal 2021 number of 569,000 units.\nRV retail sales for the industry in our fiscal year 2021 were approximately 585,000 units, a record number and will likely be adjusted upwards as SSI adjustments take place in the coming months.", "summaries": "Fourth-quarter earnings per diluted share was a record $2.45, an increase of 96% versus the same period last year.\nFourth-quarter adjusted earnings per diluted share was a record $2.57, up 77% versus the same period last year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Revenue in the first quarter was $399 million, a slight decrease from the record fourth quarter as expected with a 6% increase from a year ago.\nNon-GAAP net income was $0.86 per share, exceeding the high end of guidance as gross margins improved to 12% in the quarter.\nOptical communications revenue of $302 million was up about $2 million from the fourth quarter and represented 76% of total revenue.\nWithin optical communications, telecom revenue of $230 million increased 7% from the fourth quarter and represented 76% of optical revenue.\nDatacom revenue was $73 million in the quarter, an expected decrease from Q4, of 15%.\nDatacom represented 24% of optical communications revenue.\nBy technology, silicon photonics based optical communications revenue decreased from the fourth quarter to $77 million and represented 25% of optical communications revenue.\nRevenue from QSFP28 and QSFP56 transceivers was $45 million, down slightly from fourth quarter.\nBy data rate, 100-gig programs continued to represent nearly half of optical communications' revenue at $147 million.\nAnd products rated at speeds of 400 gig and above were up strongly from the fourth quarter of $38 million or 13% of optical communications revenue.\nRevenue moderated sequentially as expected to $97 million from $105 million in Q4.\nAs anticipated, revenue from industrial lasers declined from the fourth quarter and was $41 million compared to $53 million in Q4.\nAutomotive and sensor revenue were both stable at $24 million and $3.5 million, respectively.\nFinally, revenue generated from other nonoptical applications grew 15% sequentially to $28 million, mainly from Fabrinet West.\nTotal revenue in the first quarter of fiscal year 2020 was $399.3 million and above the upper end of our guidance range.\nNon-GAAP net income was $0.86 per share and was also above our guidance range even after a foreign exchange headwind of $1.9 million and the mark-to-market loss on interest rate swap contracts of $1.7 million.\nThese losses accounted for approximately $0.09 per share.\nWe were pleased to see non-GAAP gross margin in the first quarter improve to 12%, a 20-basis-point increase from the fourth quarter as efficiency more than offset the impact of merit increases.\nNon-GAAP operating expense was $11.6 million in the first quarter.\nAs a result, non-GAAP operating income was $36.2 million and non-GAAP operating margin was 9.1%, flat with the fourth quarter.\nTaxes in the quarter were $2.2 million, and our normalized effective tax rate was less than 5%.\nWe expect our effective tax rate to be 5% to 6% for the full year.\nNon-GAAP net income was above our guidance range at $32.2 million in the first quarter or $0.86 per diluted share as I indicated earlier.\nOn a GAAP basis, which includes share-based compensation expenses and amortizations of debt issuing costs, net income for the first quarter was $25.9 million or $0.69 per diluted share, also above the high end of our guidance.\nAt the end of the first quarter, cash, restricted cash and investments were $436.4 million compared to $444.7 million at the end of the fourth quarter.\nOperating cash flow in the quarter was $2.6 million and with capex of $6.3 million, free cash flow was an outflow of $3.7 million in the first quarter.\nAs such, $62.2 million remain in our share repurchase program and we will continue to evaluate market condition to opportunistically repurchase shares when possible.\nAs Seamus described, we expect a strong second quarter and anticipate that revenue will be between $408 million and $416 million.\nFrom a margin perspective, we are optimistic that we will see efficiency continue to drive incremental improvements in non-GAAP gross margin within our target range of 12% to 12.5%.\nFrom an earnings per share perspective, we anticipate non-GAAP net income per share in the second quarter to be in the range of $0.91 to $0.94 and GAAP net income per share of $0.74 to $0.77 based on approximately $37.7 million fully diluted shares outstanding.", "summaries": "Non-GAAP net income was $0.86 per share, exceeding the high end of guidance as gross margins improved to 12% in the quarter.\nTotal revenue in the first quarter of fiscal year 2020 was $399.3 million and above the upper end of our guidance range.\nNon-GAAP net income was $0.86 per share and was also above our guidance range even after a foreign exchange headwind of $1.9 million and the mark-to-market loss on interest rate swap contracts of $1.7 million.\nNon-GAAP net income was above our guidance range at $32.2 million in the first quarter or $0.86 per diluted share as I indicated earlier.\nOn a GAAP basis, which includes share-based compensation expenses and amortizations of debt issuing costs, net income for the first quarter was $25.9 million or $0.69 per diluted share, also above the high end of our guidance.\nAs Seamus described, we expect a strong second quarter and anticipate that revenue will be between $408 million and $416 million.\nFrom an earnings per share perspective, we anticipate non-GAAP net income per share in the second quarter to be in the range of $0.91 to $0.94 and GAAP net income per share of $0.74 to $0.77 based on approximately $37.7 million fully diluted shares outstanding.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n1\n0\n1"}
{"doc": "Jim Nickolas will then review our first quarter 2020 financial results and liquidity position, and then Ward will provide some closing comments.\nWe're making an exception and as highlighted on our supplemental information slides 13 and 14, we are sharing preliminary April shipment and pricing trends to provide greater transparency as to what we're now seeing in a COVID-19-impacted month.\nApril revenues for the Magnesia Specialties business are $10 million lower than the comparable prior year period.\nPrior to the COVID-19 outbreak, we were highly confident in realizing the full announced increase of $8 per ton implemented April 1, given overwhelming market support in a tight Texas cement environment.\nFlorida DOT, for example, has accelerated over $2 billion of critical transportation projects to leverage construction efficiencies resulting from lower vehicle traffic, including closing additional travel lanes and performing more daytime hours work.\nThe first recommendation is the federal backstop of nearly $50 billion in immediate flexible funding to offset the estimated 30% loss in state transportation revenues over the next 18 months.\nIn addition to strengthening our balance sheet through a timely $500 million bond offering in early March, we've cut nonessential costs, reduced capital spending for discretionary projects and implemented hiring restrictions.\nFirst, Martin Marietta has a much stronger geographic and competitive position today compared with any previous downturn in our more than 25 years as a public company.\nToday, we continue to generate record profitability on aggregate shipment levels much lower than our peak volumes in 2005, and with a geographic footprint that we've not only considerably expanded but also improved.\nWe now have leading positions in 90% of our markets, up from 65% a decade ago, which supports favorable pricing trends, economies of scale and cost flexibility.\nIn brief, Martin Marietta has the right strategies, priorities, experience and teams to responsibly manage us through these challenging times.\nOn a consolidated basis, total revenues increased 2% to $958 million, a first quarter record.\nSelling, general and administrative expenses improved 10 basis points as a percent of total revenues.\nDiluted earnings per share was $0.41 and adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, decreased 6% to $149 million.\nThe Building Materials business achieved record first quarter revenues.\nKey takeaways include the following: aggregates product gross profit decreased $5 million, largely due to our quarterly update of inventory standard costs.\nOur per ton production costs have been trending downward over the last 12 months as cost control measures and operating efficiencies have their desired effect.\nBut in this quarter, it also resulted in a $4 million expense as we reflected the lower cost in our updated inventory valuation.\nIn contrast, during the first quarter of 2019, we recorded an $11 million inventory valuation adjustment to reflect the higher production costs experienced during the weather-impacted year in 2018.\nWhile this cumulative $15 million year-over-year inventory standard variance reduced quarterly product gross margin by 260 basis points, lower unit production costs will provide future benefits.\nCement product gross margin expanded 1,170 basis points driven by improved cost absorption from higher production levels as well as increased shipments to the San Antonio, Austin and Houston markets.\nGross profit for the ready mixed concrete business declined $9 million.\nFor the Magnesia Specialties business, product revenues decreased 13%, consistent with expectations as chemicals customers continue to reduce inventory levels for reasons unrelated to COVID-19.\nNotably, product gross margin improved 500 basis points despite lower revenues, driven by ongoing cost control measures and lower energy costs.\nIn addition to the aggregates inventory standard adjustments discussed earlier, these items also included $6 million of other nonoperating expenses to finance third-party railroad maintenance in exchange for a federal income tax benefit of approximately $7 million, which drove the low-income tax rate for the first quarter 2020.\nLastly, we incurred a noncash expense of $2 million to implement a new paid time-off policy for our employees.\nAs you will see on slide five, first quarter 2020 earnings before income tax, absent items affecting comparability, improved $15 million.\nBefore the extent of the economic disruption became better understood, we repurchased 211,000 shares during the first quarter.\nWe now estimate full year capital expenditures will be $325 million to $350 million, down from our original guidance of $425 million to $475 million.\nWe've strengthened the company's balance sheet and cash position with our timely bond offering in early March, issuing $500 million of 10-year senior notes at a 2.5% coupon.\nProceeds will be used to repay the $300 million of floating rate notes that mature later this month, with the bulk of the remaining cash preserved on the balance sheet.\nNet cash, combined with the nearly $760 million available on our existing revolving facilities, provided total liquidity of approximately $880 million at the end of the quarter.\nAdditionally, at 2.3 times net debt to the consolidated adjusted EBITDA, we remain well within our target leverage ratio of two to 2.5 times at the end of the first quarter.\nIn regards to our 2020 full year guidance, we will reinstate earnings guidance once we have sufficient visibility to do so.", "summaries": "Jim Nickolas will then review our first quarter 2020 financial results and liquidity position, and then Ward will provide some closing comments.\nIn brief, Martin Marietta has the right strategies, priorities, experience and teams to responsibly manage us through these challenging times.\nDiluted earnings per share was $0.41 and adjusted earnings before interest, taxes, depreciation, depletion and amortization, or adjusted EBITDA, decreased 6% to $149 million.\nThe Building Materials business achieved record first quarter revenues.\nIn regards to our 2020 full year guidance, we will reinstate earnings guidance once we have sufficient visibility to do so.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "As Pete mentioned, I'm coming into this role from our Automation Solutions finance organization, and I've been with Emerson for over 13 years.\nThe operating leverage -- profit leverage at 34% was very strong and now most importantly, has given us the room to accelerate investment in differentiating technologies and further -- that will further, I think, drive relevance -- increased relevance at our customer base.\nAdjusted earnings per share was $1.09, up 36% from the prior year.\nDemand continues to strengthen with sales coming in ahead of our expectations with underlying growth of 15%, and June trailing 3-month orders were at 26%.\nAutomation Solutions notably turned positive this quarter in both sales and orders, up 9% in sales and 17% on an underlying basis.\nCommercial & Residential Solutions continues to experience robust demand across the business and geographies with 29% sales growth and 43% orders growth on an underlying basis.\nAnd along with the additional volume and leverage, they drove adjusted segment EBIT growth of 40%, 280 basis points of increased margin to 19.6%.\nCash flow continues to be very strong with operating and free cash flow up approximately 30% year-over-year and free cash flow conversion exceeding 150% of net earnings.\nIn this quarter, we initiated $32 million of restructuring actions.\nOperations added 33% to adjusted EPS, and it was balanced between the platforms.\nLeverage was 34% across the enterprise.\nTax, currency, pension, stock comp netted to a $0.05 headwind, and there was a minor favorable impact from share repurchase.\nAgain, in total, adjusted earnings per share was $1.09, up 36%.\nSo as I mentioned, underlying sales is up 15%.\nGross profit increased 90 basis points to 42.4%, driven mainly by the benefits of the cost reduction actions and then the leverage on the volume across the enterprise.\nAdjusted EBIT margin was 18.4%, up 310 basis points.\nEffective tax rate was 19.2% versus 11% in the prior year.\nThis was a $0.10 headwind year-over-year that we overcame.\nAdjusted EPS, as mentioned, was $1.09 versus $0.80 last year.\nAdjusted segment EBIT again increased 40%, margin up 280 basis points.\nAdjusted pre-tax earnings increased 350 basis points to 17.6%.\nOperating cash flow was very strong, up 31% at $1.1 billion.\nFree cash flow was $977 million, also up a little over 30%, driven by strong earnings growth and effective working capital management.\nLastly, the trade working capital ratio improved to 15.4% of sales.\nUnderlying sales turned positive this quarter at 8%.\nTrailing 3-month orders accelerated to 17%.\nAdjusted EBIT margin increased 320 basis points and 310 basis points at adjusted EBITDA, driven mainly by the flow-through of the cost reset savings and by the volume leverage.\nBacklog increased to $5.5 billion.\nIt is up 17% year-to-date.\nSales were up on an underlying basis 29% versus the prior year.\nThe June trailing 3-month underlying orders were up 43%, and it was very balanced across both Climate Technologies and Tools & Home products.\nThe Americas were up 29% with continued strength across all end markets.\nEurope was up 37%, driven by continued heat pump demand and increasing sales of professional tools.\nAsia, Middle East and Africa was up 25%, driven by Cold Chain and various heating technologies.\nMargins improved by 170 basis points of adjusted EBIT and 120 basis points of adjusted EBITDA driven by the strong volume leverage and the cost reset savings, which more than offset the price/cost headwinds that we are seeing in the business.\nSteel prices are at record highs with 11 months of consecutive increases and in our estimation, have not peaked yet.\nAnd while copper pricing has receded off record highs, it is still up over $1.40 a pound year-over-year.\nElectronics shortages are proliferating in most of our businesses, impacting both platforms, and supply is expected to remain constrained well into 2022.\nIt is important to note that price/cost remains at an unfavorable $75 million as we estimated last quarter.\nWe now expect underlying sales growth to be near the top of our May guidance of approximately 5% to 6%, Commercial Residential above their range in May at 15% to 16% and Automation Solutions closer to the top of that range at 0% to 1%.\nOur estimates are now 50 basis points above the previous guidance, increasing adjusted EBIT margin and adjusted EBITDA by 0.5% to approximately 18% and 23%, respectively.\nStrong profitability and working capital performance enabled an increase in our operating cash flow and free cash flow estimates, both of which increased by $300 million.\nWe are also raising our adjusted earnings per share guidance to $4.07, plus or minus $0.01.\nOur price/cost headwind for 2021 currently remains as estimated in Q2 and Ram covered at $75 million despite the current challenges that were highlighted.\nStock compensation impact increases to $125 million.\nSo now we'll go over to Chart 16, and I'll just frame the order environment that we've experienced through the last three months.\nCommercial & Residential Solutions continues to see strength in Residential, Cold Chain and the Professional Tools business, and all three very near to that average band of 43%.\nThe Americas really strengthened, up 29% as deferred maintenance demand and site access drove momentum.\nLet's now turn to Chart 17, and I'll review the underlying sales growth outlook.\nQ3 underlying sales were up 15% versus prior year, exceeding our management expectations, driven by the strength in Commercial & Residential Solutions as well as the North America recovery just discussed.\nFull year expectations on underlying sales are between 5% and 6%, at the top end of our prior guidance of 3% to 6% and sales of approximately $18.4 billion.\nFor the remainder of the year, we expect to see the North America business continue to recover in Automation Solutions as well as continued broad strength in commercial residential solutions.\nAs Frank mentioned, for the full year, we are expecting Automation Solutions sales to be flat to 1% and Commercial & Residential Solutions to be between 15% and 16%, driving us to our overall 5% to 6% underlying sales expectations.\nQuarter four is expected to be strong in Automation Solutions at approximately 20% growth, broad-based recovery across all industries, led by continued strength in discrete and increasing strength in hybrid.\nFor KOB 3, we expect to see continued spend for deferred maintenance and increasing spend for site access that has been pent-up from the pandemic with an expectation that we will see a strong fall shutdown turnaround season.\nLet's now turn to Chart 19, and we'll review the business funnel for Automation Solutions.\nSo back in February, we commented that our traditional large project funnel was $6.4 billion, and this should be something that is very familiar to those of you who watch this carefully.\nSince February, we have booked approximately $80 million of projects, some LNG and one most notably in Mexico.\nThe August 2021 funnel is now valued at $6.3 billion in approximately 180 projects.\nToday, as depicted on the chart, these opportunities are worth $400 million in approximately 120 projects.\nThe combination of our traditional project funnel and the new sustainability funnel is now valued at $6.7 billion.\nThe value of these opportunities is $1.5 billion and are made up of 530 projects.\nTo give you some perspective on the scale and how differentiated it is, approximately 15% of that $1.5 billion has a value of greater than $5 million, and 50% of it is between $1 million and $5 million.\nThe funnel is global, although approximately $1 billion of it is in North America and Europe.\nNow let's turn to Chart 20.\nIt involves over $600 million in spend and approximately $650 million in savings.\nIn February, we also introduced our midrange targets of 24% adjusted EBITDA margins and $4.75 to $5 in adjusted EPS.", "summaries": "Adjusted earnings per share was $1.09, up 36% from the prior year.\nAutomation Solutions notably turned positive this quarter in both sales and orders, up 9% in sales and 17% on an underlying basis.\nAgain, in total, adjusted earnings per share was $1.09, up 36%.\nAdjusted EPS, as mentioned, was $1.09 versus $0.80 last year.\nElectronics shortages are proliferating in most of our businesses, impacting both platforms, and supply is expected to remain constrained well into 2022.\nWe are also raising our adjusted earnings per share guidance to $4.07, plus or minus $0.01.\nFor the remainder of the year, we expect to see the North America business continue to recover in Automation Solutions as well as continued broad strength in commercial residential solutions.\nQuarter four is expected to be strong in Automation Solutions at approximately 20% growth, broad-based recovery across all industries, led by continued strength in discrete and increasing strength in 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{"doc": "Diluted GAAP earnings per common share were $3.69 for the third quarter of 2021, improved from $3.41 in the second quarter of 2021 and $2.75 in the third quarter of 2020.\nNet income for the quarter was $495 million, compared with $458 million in the linked quarter and $372 million in the year-ago quarter.\nOn a GAAP basis, M&T's third-quarter results produced an annualized rate of return on average assets of 1.28% and an annualized return on average common equity of 12.16%.\nThis compares with rates of 1.22% and 11.5%, respectively, in the previous quarter.\nIncluded in GAAP results in the recent quarter were after-tax expenses from the amortization of intangible assets amounting to $2 million or $0.02 per common share, little change from the prior quarter.\nAlso included in the quarter's results were merger-related charges of $9 million related to M&T's proposed acquisition of People's United Financial.\nThis amounted to $7 million after tax or $0.05 per common share.\nResults for this year's second quarter included $4 million of such charges amounting to $3 million after-tax effect or $0.02 per common share.\nM&T's net operating income for the third quarter, which excludes intangible amortization and the merger-related expenses, was $504 million.\nCompare that with $463 million in the linked quarter and $375 million in last year's third quarter.\nDiluted net operating earnings per common share were $3.76 for the recent quarter, improved from $3.45 in 2021 second quarter and up from $2.77 in the third quarter of 2020.\nNet operating income yielded annualized rates of return on average tangible assets and average tangible common shareholders' equity of 1.34% and 17.54% for the recent quarter.\nThe comparable returns were 1.27% and 16.68% in the second quarter of 2021.\nTaxable equivalent net interest income was $971 million in the third quarter of 2021, compared with $946 million in the linked quarter.\nHigher income from PPP loans accounted for the majority of the $25 million quarter-over-quarter increase in net interest income and the second round of PPP loans began to receive forgiveness from the Small Business Administration.\nThe net interest margin for the past quarter was $2 dollars -- excuse me, 2.74%, down just three basis points from 2.77% in the linked quarter.\nWe estimate that the higher balance of cash on deposit at Federal Reserve contributed about 13 basis points of pressure to the margin.\nLargely offsetting that was the higher income from PPP loans both scheduled amortization and accelerated recognition of fees from forgiven loans, which added an estimated 10 basis points to the margin.\nCompared with the second quarter of 2021, average interest earning assets increased by 3%, reflecting a 22% increase in money market placements, primarily cash on deposit with the Fed and a 3% decline in investment securities.\nAverage loans outstanding declined about 3% compared with the previous quarter.\nOverall, commercial and industrial loans declined by $3.3 billion or 12%.\nThe primary driver was a $2.4 billion decline in PPP loans.\nDealer floor plan loans declined by $803 million, reflecting the ongoing impact from vehicle production and inventory issues seen across the industry.\nResidential real estate loans declined by just under 4%.\nConsumer loans were up 3%, consistent with the recent quarters and continuing to be led by growth in indirect auto and recreational finance loans.\nOn an end-of-period basis, total loans were down 4%, reflecting most of the same factors I just mentioned.\nThe 11% decline in C&I loans include a decline of PPP loans outstanding to $2.2 billion at September 30.\nAverage core customer deposits, which exclude CDs over $250,000, increased 2% or $2.8 billion compared with the second quarter.\nThat figure includes $3.8 billion of noninterest-bearing deposits partially offset by lower interest checking deposits.\nNoninterest income totaled $569 million in the third quarter, compared with $514 million in the linked quarter.\nThe recent quarter included an insignificant valuation gain on equity securities, largely on our remaining holdings of GSE preferred stock, while the prior quarter included $11 million of valuation losses.\nMortgage banking revenues were $160 million in the recent quarter, compared with $133 million in the linked quarter.\nRevenues for our residential mortgage business, including both origination and servicing activities, were $110 million in the third quarter, compared with $98 million in the prior quarter.\nResidential mortgage loans originated for sale were down about 7% to $1.1 billion when compared with the second quarter.\nCommercial mortgage banking revenues were $50 million in the third quarter, compared with $35 million in the linked quarter.\nTrust income was $157 million in the recent quarter, compared with $163 million in the previous quarter.\nRecall that the second quarter's results included $4 million of seasonal fees arising from tax preparation work we undertake for clients, which did not recur in the third quarter.\nAlso, in conjunction with the transfer of M&T's retail brokerage and advisory business to the platform of LPL Financial in mid-June of this year, about $10 million in revenues associated with managed investment accounts, previously classified as trust income, are now included in brokerage services income.\nService charges on deposit accounts were $105 million, compared with $99 million in the second quarter.\nOperating expenses for the third quarter, which exclude the amortization of intangible assets and merger-related expenses previously mentioned, were $888 million.\nThe comparable figure was $859 million in the linked quarter.\nSalaries and benefits were $510 million for the quarter, compared with $479 million in the prior quarter.\nOther cost of operations in the recent quarter, including $5 million from the accelerated amortization of capitalized mortgage servicing rights as a result of the prepayments of previously securitized commercial mortgage loans that we referenced earlier.\nAlso recall that the other cost of operations for the second quarter included an $8 million addition to the valuation allowance for our capitalized residential mortgage servicing rights.\nThe efficiency ratio, which excludes intangible amortization and merger-related costs from the numerator and securities gains or losses from the denominator was 57.7% in the recent quarter, compared with 58.4% in 2021's second quarter.\nThe allowance for credit losses declined by $60 million to stand at $1.5 billion at the end of the third quarter.\nThis reflects a $20 million recapture of previous provisions for credit losses, combined with $40 million of net charge-offs in the quarter.\nAt September 30, the allowance for credit losses as a percentage of loans outstanding was unchanged from June 30 at 1.62%.\nAnnualized net charge-offs as a percentage of total loans were 17 basis points for the third quarter, 19 basis points in the second quarter.\nOur forecast assumes the national unemployment rate continues to be elevated compared to prepandemic levels, averaging 5.5% over 2021, followed by a gradual improvement, reaching 3.5% by mid-2023.\nThe forecast also assumes that GDP grows at a 6.8% annual rate over 2021 and 2.7% annual rate during 2022.\nNonaccrual loans were essentially flat at $2.2 billion compared with June 30, but increased as a percentage of loans to 2.4%, compared with 2.31% of loans at the end of June.\nLoans past due, on which we continue to accrue interest, were $1 billion at the end of the recent quarter.\nM&T's Common Equity Tier 1 ratio was an estimated 11.1% at quarter end, compared with 10.7% at the end of the second quarter.\nWe noted on the July conference call that we expected net interest income in the third and fourth quarters to, on average, be in line with the $946 million in the second quarter.", "summaries": "Diluted GAAP earnings per common share were $3.69 for the third quarter of 2021, improved from $3.41 in the second quarter of 2021 and $2.75 in the third quarter of 2020.\nDiluted net operating earnings per common share were $3.76 for the recent quarter, improved from $3.45 in 2021 second quarter and up from $2.77 in the third quarter of 2020.\nTaxable equivalent net interest income was $971 million in the third quarter of 2021, compared with $946 million in the linked quarter.\nThis reflects a $20 million recapture of previous provisions for credit losses, combined with $40 million of net charge-offs in the quarter.\nAt September 30, the allowance for credit losses as a percentage of loans outstanding was unchanged from June 30 at 1.62%.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Excluding the $40 million cost attributed to the strike and a small improvement in our restructuring reserves, we lost $0.12 per share in the second quarter.\nOur jet engine product revenues were up over 20% compared to the first quarter 2021.\nThe High Performance Materials & Components segment, or HPMC, saw its margins improve by more than 200 basis points sequentially and nearly 300 basis points year-over-year.\nUnder this contract, annual healthcare cost inflation will be capped at 3.5%.\nOn a year-to-year basis, we grew sales in most of our key end markets, most notably Energy, up 60%; and Defense, up 22%.\nWe expect this positive growth trend to continue and expand as increased production rates on the 737 MAX become a larger part of our order book.\nIn the second quarter, sales of our Specialty Materials like Rene 65 for LEAP engines grew significantly compared to the first quarter, but were still below prior year.\nOn a reported basis, ATI lost $0.39 per share in the second quarter.\nExcluding $40 million of costs associated with the strike and a small favorable true-up to our restructuring reserves, the company lost $0.12 per share in the second quarter.\nThis is readily apparent in our HPMC segment results where jet engines account for more than 40% of overall segment revenues.\nAs Bob shared, jet engine revenues increased by more than 20% sequentially for ATI as a whole and for HPMC.\nAs a result of our profitable jet engine growth and increased asset utilization, HPMC EBITDA margins increased by 220 basis points compared to the first quarter and nearly 300 basis points versus the second quarter of 2020.\nWe anticipate third quarter growth across HPMC's key end markets, most notably jet engine and specialty energy and further utilization benefits from increasing production rates across our network.\nIt should be noted that while we removed strike-related costs from segment earnings, segment revenues also declined nearly $140 million versus the first quarter due to plant outages and resulting production declines.\nAs a result of the strike continuing throughout most of July and the inefficiencies associated with the production reramp, we anticipate approximately $25 million of additional third quarter costs.\nWhile HPMC revenues were flat versus prior year, earnings grew 30%.\nDespite the recent strike, we ended the quarter with roughly $830 million of total liquidity, including at least $475 million of cash.\nLooking ahead, we anticipate contributing up to $50 million to our U.S. defined benefit pension plan in the third quarter to improve our funding status and long-term leverage profile.\nThis will result in a onetime noncash pre-tax gain of approximately $65 million in our third quarter results.\nThis benefit and associated $15 million tax charge will be excluded from our adjusted earnings.\nIn aggregate, we expect third quarter adjusted earnings to be between breakeven and a loss of $0.08 per share, excluding strike-related costs and the $65 million post-retirement medical accounting gain.\nFinally, due to the negative strike-related earnings impact, we now anticipate full year free cash flow to be at breakeven to slightly positive levels.", "summaries": "Excluding the $40 million cost attributed to the strike and a small improvement in our restructuring reserves, we lost $0.12 per share in the second quarter.\nOn a reported basis, ATI lost $0.39 per share in the second quarter.\nExcluding $40 million of costs associated with the strike and a small favorable true-up to our restructuring reserves, the company lost $0.12 per share in the second quarter.\nWe anticipate third quarter growth across HPMC's key end markets, most notably jet engine and specialty energy and further utilization benefits from increasing production rates across our network.\nFinally, due to the negative strike-related earnings impact, we now anticipate full year free cash flow to be at breakeven to slightly positive levels.", "labels": "1\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "Data shows that the U.S. remains the most valuable sports rights market in the world with an estimated $19.5 billion of annualized rights value last year.\nIn the second quarter, we renewed our Wimbledon U.S. media rights agreement with ESPN and its tennis channel until 2035 for a significant increase over the prior term.\nOur last five renewals have yielded, on average, over 100% increases.\nSports wagering is now legal in 21 states and growing fast.\nWe also closed a deal for UFC and Panini to create NFT trading cards, the first release of which sold out in less than 24 hours.\nThe first half of 2021 saw median telecom M&A has reached their highest level in years, $83 billion.\nThe competition for content and talent is at its highest level I've seen in 26 years.\nThe number of original series and movies commissioned by streaming platforms grew 48% for the past four quarters as compared to prior four quarters.\nNetflix alone revealed it will spend $17 billion on content in 2021, up 44%, compared to 2020.\nFor example, this past quarter alone, we've closed new podcast deals for 40 clients, while four client shows hit No.\n1 on the Apple charts.\nFirst, we announced during our last earnings call that we expected to pay down $600 million of debt in the third quarter, part of our continued commitment to reduce leverage.\nFor the quarter ended June 30, 2021, we generated approximately $1.1 billion in revenue, up $648 million or 140%.\nAdjusted EBITDA for the quarter was approximately $168 million, up $122 million.\nOur Owned Sports Properties segment continued to perform very well, with revenues of $258.9 million, an increase of $106.6 million or 70%.\nAdjusted EBITDA for the quarter was $132.3 million, double that of the same period in 2020, primarily driven from the higher revenues I just mentioned.\nMore recently, our July UFC 264 event in Las Vegas finished at the second-highest gate in T-Mobile Arena history and the third-highest gate among UFC events of all time.\nThe event had more than 20,000 fans, the highest attendance ever recorded at a sporting event in T-Mobile.\nYear over year, we've seen nearly 30% growth in the 18 to 24 demographic, and we're currently ranked third behind the NFL and NBA among millennials.\nPartnership revenues is up over 25% versus 2020.\nLastly, as relates to viewership, UFC events, which are simulcast across the ESPN family, reached 18.3 million viewers on ESPN TV networks alone in the first half of this year, up 10% over last year.\nThis segment recorded revenue of $528.7 million, an increase of $408.8 million.\nAdjusted EBITDA for the quarter was $36.8 million, up $79.5 million compared to Q2 2020, where we recorded a loss.\nRevenue was $328.2 million, an increase of $135.4 million or just over 70%.\nThis growth was primarily driven by an increase in client commissions and project deliveries at Endeavor Content, including episodes of Season 2 of Truth Be Told for Apple TV, The Wall in NBC and Netflix film Blue Miracle.\nThat slight timing delay, predominantly from three shows, negatively impacted our revenues in the quarter by approximately $90 million.\nAdjusted EBITDA for the quarter was $61.7 million, an increase of $9.6 million or just over 18% as we realized a higher percentage of revenue growth from Endeavor Content versus clients in the quarter.\nFinally, corporate adjusted EBITDA for the quarter was a loss of $62.7 million, reflecting an increase in costs brought on to support increased activity and investment in the business, as well as those costs associated with being a new public company.\nWe paid down $600 million of our outstanding debt in Q2, which consisted of the repayment of approximately $163 million under the WME IMG revolving credit facility, which now carries a zero balance; $257 million, representing the entirety of the WME IMG term loan issued in May 2020, which was the highest cost paper in our capital structure; and $180 million of the first lien term loan under the UFC facilities.\nBecause of these moves, we will realize $35 million in annual interest savings going forward.\nOn to our updated guidance for the full-year 2021.\nWe are, therefore, raising our revenue guidance from a prior range of $4.76 billion and $4.83 billion to now between $4.8 billion and $4.85 billion.\nAnd on adjusted EBITDA, we're raising the range from $735 million to $745 million to between $765 million and $775 million.", "summaries": "For the quarter ended June 30, 2021, we generated approximately $1.1 billion in revenue, up $648 million or 140%.\nOn to our updated guidance for the full-year 2021.\nWe are, therefore, raising our revenue guidance from a prior range of $4.76 billion and $4.83 billion to now between $4.8 billion and $4.85 billion.\nAnd on adjusted EBITDA, we're raising the range from $735 million to $745 million to between $765 million and $775 million.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1"}
{"doc": "We kept driving innovation and strengthening our diverse portfolio of 13 blockbusters and more than 300 product lines across eight species and seven major product categories.\nFor the full year, we generated 9% operational growth in revenue primarily based on new products in our companion animal business, the continued strength of our key dermatology portfolio and growth in China.\nAnd as part of our long-term value proposition, we once again grew revenues faster than the anticipated growth for 2020, and faster than the historical industry rates of 4% to 6%.\nFor the full year, we delivered operational growth of 10% in adjusted net income while adapting our operations in the pandemic and continuing investments in our pipeline and new product launches.\nWe are guiding operational growth of 9% to 11% in revenue for full year 2021.\nOur investment plans and focus on growth for 2021 include, continuing the successful launch of Simparica Trio in the U.S. and other markets as well as the ongoing adoption of other new parasiticides, Revolution Plus and ProHeart 12, driving growth in dermatology through increased use of direct-to-consumer advertising and disease awareness campaigns in the U.S. and globally.\nOur focus remains on growing this market and increasing customer loyalty through our innovative treatments, which we expect to help us top $1 billion in annual sales for the first time.\nWe had another exceptional year with revenue of $6.7 billion and adjusted net income of $1.8 billion, both exceeding the high end of our November full-year guidance range.\nFull year revenue grew 9% operationally and 7% on a reported basis with adjusted net income increasing 10% operationally and 5% on a reported basis.\nGoing deeper into the numbers, price contributed 2% to full year operational revenue growth with volume contributing 7%.\nVolume growth consisted of 3% from new products, 3% from key dermatology products and 1% from acquisitions, with other in-line products flat for the year.\nWe again saw broad-based revenue growth with the U.S. growing 11% and International growing 7% operationally.\nThe innovation we brought to the market and the diversity of our portfolio was key to our strong performance, as companion animal grew 17% while livestock was flat on a year-over-year basis.\nPerformance in companion animal was led by our parasiticide portfolio, bolstered by the launch of Simparica Trio which generated revenue of $170 million.\nThis added approximately $150 million of incremental revenue and exceeded our expectations set prior to the pandemic.\nSales of Simparica also grew double-digits for the year with operational revenue growth of 16%.\nOur key dermatology portfolio demonstrated continued strength in 2020 growing 23% operationally, generating revenue of $925 million and increasing more than $170 million versus prior year.\nOperational growth and adjusted net income of 10% were driven mainly by strong revenue growth and operating margin expansion.\nNow, moving on to our Q4 financial results where we posted another strong quarter with revenue of $1.8 billion representing an increase of 9% operationally and 8% reported.\nAdjusted net income of $438 million is an increase of 3% operationally and flat on a reported basis.\nOperational revenue grew 9% with 2% from price and 7% from volume.\nVolume growth of 7% consisted of 4% from new products, 3% from key dermatology products, 1% from acquisitions and a decline of 1% from other in-line products.\nCompanion animal products led the way in terms of species growth, growing 25% operationally, while livestock declined 5% operationally in the quarter.\nCompanion animal parasiticides grew 52% in the quarter, gaining market share in the U.S. of more than 7% within the flea, tick and heartworm segment, versus the same period in the prior year.\nThis includes the continued adoption of Simparica Trio which generated sales of $60 million in Q4.\nOur key dermatology products, Apoquel and Cytopoint again had significant global growth in the quarter with $257 million of revenue, representing 27% operational growth versus an extremely difficult comparative period in which key derm grew 29% for the fourth quarter of last year.\nThis was the primary driver of the 5% operational decline in livestock for the fourth quarter.\nNow moving on to revenue growth by segment for the quarter, U.S. revenue grew 11% with companion animal products growing 30% and livestock sales declining by 15%.\nFor companion animal, the positive trends at the vet clinic continued in Q4 with patient visits up 2% and revenue per visit increasing by 13%.\nSimparica Trio performed well again in the quarter with sales of $56 million.\nKey dermatology sales were $176 million for the quarter, growing 32% with significant growth for Apoquel and Cytopoint.\nCompanion animal diagnostic sales increased 22% in the quarter as a result of reference lab expansion and growth in point-of-care instruments and consumables.\nU.S. livestock declined 15% in the quarter driven primarily by cattle, which had a portion of Q4 sales pulled into the third quarter as a result of the earlier movement from pasture to feedlot.\nRevenue in our International segment grew 7% operationally in the quarter.\nCompanion animal revenue grew 17% operationally and livestock revenue grew 2% operationally.\nCompanion animal diagnostics grew 16% in the quarter, led by an increase in point-of-care consumable usage.\nSwine revenue grew 14% operationally, posting a third consecutive quarter of double-digit growth.\nSwine sales in China grew in excess of 100% for the second straight quarter.\nChina total products grew 45% operationally in the quarter and 34% operationally for 2020.\nBrazil was also a significant contributor to international growth in the quarter, growing 18% operationally.\nAdjusted gross margin of 67.7%, fell 80 basis points on a reported basis compared to the prior year resulting from other manufacturing costs, inventory charges, recent acquisitions and elevated freight expense.\nAdjusted operating expenses increased 10% operationally, resulting from increased advertising and promotion expense for Simparica Trio and Apoquel, partially offset by T&E savings.\nThe adjusted effective tax rate for the quarter was 13.5%, a decrease of 70 basis points, driven by the impact of net discrete tax benefits, partially offset by the jurisdictional mix of earnings.\nAnd finally, adjusted net income and adjusted diluted earnings per share for the quarter grew 3% operationally.\nIn December, we announced 25% annual dividend increase, continuing our commitment to grow our dividend at or faster than the growth in adjusted net income.\nIn addition, we resumed our share repurchase program in January with $1.4 billion of remaining capacity under the current authorization.\nFor 2021, we are projecting revenue between $7.400 billion and $7.550 billion representing 9% to 11% operational growth.\nWe are expecting foreign exchange favorability in 2021 of approximately 200 basis points.\nBeginning with dermatology, our guidance does not assume a meaningful competitive entrant in 2021 and with continued investment behind the franchise, we believe revenue will exceed $1 billion for the full year.\nFor the remainder of the P&L, adjusted cost of sales as a percentage of revenue is expected to be approximately 30% which is relatively consistent with our cost of sales in 2020.\nAdjusted SG&A expenses for the year are expected to be between $1.775 billion and $1.85 billion with the increase from 2020 focused on supporting primary drivers of revenue growth, including recent and future product launches, key brands and recent acquisitions and reference lab expansion in diagnostics.\nAdjusted R&D expense for 2021 is expected to be between $500 million and $520 million as we remain committed to investing in pipeline opportunities for new therapies and lifecycle innovation.\nAdjusted interest and other income deductions is expected to be approximately $260 million with the increase over 2020 driven by increased interest expense as well as lower interest income.\nOur adjusted effective tax rate for 2021 is expected to be approximately 20%.\nAdjusted net income is expected to be in a range of $2.08 billion to $2.13 billion, representing operational growth of 9% to 12%.\nFinally, we expect adjusted diluted earnings per share to be in the range of $4.36 to $4.46, and reported diluted earnings per share to be in the range of $4.02 to $4.14.\nTo summarize, 2020 was another exceptional year in which we delivered 9% operational revenue growth and 10% operational growth in adjusted net income.", "summaries": "Now, moving on to our Q4 financial results where we posted another strong quarter with revenue of $1.8 billion representing an increase of 9% operationally and 8% reported.\nFinally, we expect adjusted diluted earnings per share to be in the range of $4.36 to $4.46, and reported diluted earnings per share to be in the range of $4.02 to $4.14.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "Unfortunately, COVID is not going away quietly and with vaccination rates at our locations ranging anywhere from 22% to 76%, we need to continue to practice good behaviors to keep our people safe.\nIn addition, our $250 vaccination incentive remains in place.\nOur operation was down for a total of 11 days as Wildcat Fire Services arrive to fight the fires and keep our people and our facilities safe.\nOn Slide 10 through 15, we have a number of notable happenings that have occurred in the past quarter.\nLet's start on Slide 17, that shows consolidated sales were $441 million, an increase of sales from $437 million in the prior year.\nSales for RUPS were $196 million, down from $210 million.\nPC sales rose to $146 million, up from $137 million, and CM&C sales came in at $100 million, up from $90 million.\nAdjusted EBITDA for the first quarter was $66 million or approximately 15%, up from $60 million or 14% in the prior year.\nCompared to the prior year, adjusted EBITDA for RUPS was $12 million, down from $23 million.\nPC EBITDA rose to $35 million, up from $29 million, and CM&C EBITDA improved to $19 million, up from $7 million.\nOn Slide 19, sales for RUPS were $196 million and declined from $210 million in the prior year.\nAdjusted EBITDA for RUPS was $12 million in the quarter compared with $23 million in the prior year.\nOn Slide 21, sales for PC were $146 million in the quarter compared to sales of $137 million in the prior year.\nOn Slide 22, adjusted EBITDA for PC was $35 million compared with $29 million in the prior year.\nSlide 23 shows CM&C sales at $100 million for the quarter compared to sales of $90 million in the prior year.\nAdjusted EBITDA for CM&C was $19 million in the quarter compared to $7 million in the prior year.\nAs seen on Slide 26, at the end of June, we had $760 million of net debt with $330 million in available liquidity.\nWe continue to project $30 million of debt reduction for 2021 and expect to be at a 3.1 times to 3.2 times net leverage ratio by year-end.\nOur net leverage ratio dropped to 3.2 times at June 30, down from 3.5 times at December 31, 2020, and it also showed a significant decline from 4.5 times in the prior year quarter.\nLumber futures are currently trading at 1/3 of their peak from mid-May, and everyone is still a little skittish as to where things are going in the near term.\nTo provide some perspective, while our Q2 was a record sales and adjusted EBITDA quarter for PC, we did see a 17% drop in sales from May to June and even more pronounced drop in EBITDA for that period as business pulled back.\nExisting home sales in June increased 1.4% from May, marking sales higher than prior year by 22.9%, with all four major U.S. regions experiencing double-digit year-over-year gains according to the National Association of Realtors.\nThe leading indicator of remodeling activity states that spending on home renovation repairs will reach 8.6% annual growth and surpass $380 billion by mid-2022.\nAnd in July, the Consumer Confidence Index stands at 129.1, the highest level since February of 2020, with consumer spending expected to support robust economic growth in the second half of this year.\nWe've experienced this phenomenon a couple of times over the past seven to 10 years, and we'll need to ride it out as supply demand either normalizes, crosstie pricing moves up or some combination of the 2.\nThe Railway Tie Association, for example, forecast 2021 demand for crossties at $18.9 million or four percent -- 4.7% growth and $19.5 million in 2022 or 3.2% growth, driven by the commercial market.\nThe American Association of Railroads reports total year-over-year U.S. carload traffic increased 9.4%.\nIntermodal units increased 17.5% and combined carloads and intermodal units increased by 13.7%.\nSlide 32 outlines our maintenance-of-way segment, where we've accumulated a 50% higher backlog than prior year projects and railroad structures in 2021.\nLight vehicle production worldwide is expected to grow 50% in the second quarter according to IHS Markit, but supply issues around semiconductors have not been resolved.\nOn Slide 36, our sales forecast for 2021 remains in the range of $1.7 billion to $1.8 billion compared with $1.67 billion in the prior year.\nDue to improved end market dynamics, CM&C is expected to see a seven percent to 15% top line increase this year, while both RUPS and PC could be anywhere from two percent to three percent positive or negative.\nOn Slide 37, we're holding our EBITDA projections for 2021 to a range of $220 million to $230 million compared with $211 million in the prior year.\nOn Slide 38, the EBITDA estimate to adjusted earnings per share guidance of $4.35 to $4.60 per share is unchanged from prior year's quarter -- from prior quarter's guidance and compares favorably to the prior year adjusted earnings per share of $4.12.\nFinally, on Slide 39, our capital expenditures were $60.9 million year-to-date through June 30 or $55.8 million, net of the $5.1 million in cash proceeds.\nWe remain on-track to spend a net amount of $80 million to $90 million on capital expenditures, with half of that dedicated to growth and productivity projects that are expected to generate $8 million to $12 million of annualized benefits.\nBeyond this year, I remain excited about the many opportunities we have to further build upon our integrated business model, focused on wooden infrastructure and looking forward to sharing the details of how we believe we can continue to take Koppers to over $300 million of EBITDA generation by the end of 2025 at our upcoming September 13 Investor Day.", "summaries": "Let's start on Slide 17, that shows consolidated sales were $441 million, an increase of sales from $437 million in the prior year.\nOn Slide 36, our sales forecast for 2021 remains in the range of $1.7 billion to $1.8 billion compared with $1.67 billion in the prior year.\nOn Slide 38, the EBITDA estimate to adjusted earnings per share guidance of $4.35 to $4.60 per share is unchanged from prior year's quarter -- from prior quarter's guidance and compares favorably to the prior year adjusted earnings per share of $4.12.", "labels": "0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0"}
{"doc": "We Specifically, we generated adjusted EBITDA of $115 million and pro forma earnings per share of $0.35 per share during the third quarter.\nAdjusted EBITDA exceeded the prior year quarter by 71%, fueled by solid contributions across our timber segments as well as an outsized contribution from our Real Estate segment due to the closing of two significant development transactions.\nBased on our performance over the first nine months of the year and our outlook for the balance of the year, we're modestly raising our full year 2021 adjusted EBITDA guidance to a range of $320 million to $330 million.\nOur Southern Timber segment generated adjusted EBITDA of $24 million for the quarter, which was 7% below the prior year quarter.\nWe were encouraged to see net stumpage prices increase by 16%, but this lift in pricing was more than offset by 20% reduction in harvest volumes due to wet weather conditions and trucking shortages.\nIn our Pacific Northwest Timber segment, we achieved adjusted EBITDA of $13 million, an improvement of 38% from the prior year quarter.\nThis increase in adjusted EBITDA was driven by a 15% increase in sawmill (sic) sawtimber prices as domestic lumber markets remained favorable.\nIn our New Zealand Timber segment, third quarter adjusted EBITDA increased 10% year-over-year to $20 million.\nFavorable pricing more than offset, a significant increase in export shipping costs as well as 14% lower production volumes due to the government-mandated shutdown, which prohibited harvest activity throughout the country during a two-week period in August.\nIn our Real Estate segment, we generated record adjusted EBITDA of $64 million, up from $22 million in the prior year period, as we closed on a $38 million Unimproved Development sale in Kingston, Washington, and a $25 million improved development transaction in our Belfast Commerce Park project south of Savannah, Georgia.\nDuring the third quarter, as previously announced, we sold the rights to manage Timber Funds, III and IV, as well as our co-investment stake in both funds for an aggregate purchase price of roughly $36 million.\nWe subsequently entered into three separate agreements to sell the remaining Fund II Timberland assets for an aggregate purchase price of $157 million.\nAll said, based on Rayonier's 20% ownership interest in Fund II, and factoring in the repayment of Fund II debt, proceeds to Rayonier from the sale of Fund II assets, will be roughly $24 million.\nIn addition, we expect to receive a carried interest incentive fee with respect to Fund II of approximately $14 million.\nOverall, we view this as a favorable result for the sale process, particularly given the negative impact that last year's forest fires had on roughly 10,000 acres of Fund II and Fund IV properties, in Oregon.\nSales for the quarter totaled $365 million, while operating income was $123 million, and net income attributable to Rayonier was $76 million or $0.53 per share.\nOn a pro forma basis, net income was $50 million or $0.35 per share.\nAs Dave touched on, third quarter adjusted EBITDA of $115 million was considerably above the prior year period, as an exceptionally strong contribution from our Real Estate segment, and year-over-year improvements in the contributions from our Pacific Northwest and New Zealand Timber segments more than offset a modestly lower contribution from our Southern Timber segment.\nOur cash available for distribution, or CAD, for the first nine months of the year was $204 million versus $124 million in the prior year period, primarily due to higher adjusted EBITDA, partially offset by higher cash taxes and capital expenditures.\nConsistent with our nimble approach to capital allocation, we raised $52 million through our at-the-market equity offering program during the third quarter at an average price of $37.26 per share.\nIn September, we opportunistically repaid the $45 million outstanding under our credit facility with Northwest Farm Credit Services, which previously -- which we had previously assumed in the Pope Resources transaction.\nIn sum, we closed the third quarter with $420 million of cash and $1.4 billion of debt, both of which exclude cash and debt attributable to the Timber Funds segment, which is nonrecourse to Rayonier.\nOur net debt of $957 million represented 15% of our enterprise value based on our closing stock price at the end of the third quarter.\nAdjusted EBITDA in the third quarter of $24 million was $2 million below the prior year quarter.\nMore specifically, volume declined 20% during the third quarter as wet weather conditions, and constraints on trucking availability, hindered production throughout most of the region.\nThis decline in volume was partially offset by a 12% increase in average sawlog stumpage pricing compared to the prior year quarter.\nAt slightly over $20 per ton, third quarter pricing reflected the highest average sawlog pricing, we have registered since early 2015.\nSpecifically, our prices climbed 23% from the prior year quarter in response to strong domestic demand, constrained supply due to wet weather conditions, and an increase in pulpwood exports to China.\nOverall, weighted-average pine stumpage prices increased 16% year-over-year, despite a shift toward a higher mix of pulpwood sales as compared to the prior year quarter.\nMoving to our Pacific Northwest Timber segment on page 10.\nAdjusted EBITDA of $13 million was $3 million above the prior year quarter.\nAt nearly $108 per ton, our average delivered selling price during the third quarter was up 15% from the prior year quarter.\nMeanwhile, pulpwood pricing fell 2% in the third quarter relative to prior year quarter as sawmill residuals remain plentiful, amid strong lumber production.\npage 11 shows results and key operating metrics for our New Zealand Timber segment.\nAdjusted EBITDA in the third quarter of $20 million was $2 million above the prior year quarter.\nVolume declined 14% in the third quarter as compared to the prior year quarter.\nAs the government shut down all nonessential activity across New Zealand from August 18 through August 31 due to COVID-19.\nAverage delivered prices for export sawtimber jumped 59% in the third quarter from the prior year to $150 per ton, reflecting solid demand from China, the ban on Australian log exports to China, and the reduced level European spruce salvage logs into China.\nDuring the third quarter, average delivered sawtimber prices increased 21% from the prior year period to $85 per ton.\nExcluding the impact of foreign exchange rates, domestic sawtimber prices improved 14% versus the prior year period.\nAverage domestic pulpwood pricing climbed 25% as compared to the prior year quarter.\nHighlighted on page 12, the Timber Funds segment generated consolidated EBITDA of $4 million in the third quarter on harvest volume of 61,000 tons.\nAdjusted EBITDA, which reflects the look-through contribution from the timber funds was less than $1 million.\nAs detailed on page 13, our Real Estate segment delivered exceptionally strong results in the third quarter.\nThird quarter real estate sales totaled $93 million on roughly 12,000 acres sold which included a large disposition in Washington, consisting of roughly 8,100 acres.\nExcluding this transaction, third quarter sales totaled $73 million on roughly 4,100 acres sold at an average price of over $17,000 per acre.\nAdjusted EBITDA for the quarter was $64 million.\nSales in the improved development category totaled a record high $28 million in the third quarter.\nIn our Richmond Hill development project, South of Savannah, Georgia, we closed a $25 million transaction for three entitled industrial parcels at the Belfast Commerce Park near the new Interstate 95 interchange that is adjacent to our property.\nMeanwhile, within our Wildlight development project north of Jacksonville, Florida, we closed on 42 residential lots, to three different homebuilders, for $2.8 million in total or $66,000 per lot.\nUnimproved development sales of $38 million consisted of a 359-acre sale in Kingston, Washington, for roughly $105,000 per acre.\nIn the rural category, sales totaled just under 3,300 acres at an average price of roughly $2,100 per acre.\nLastly, we closed on a large disposition, comprising roughly 8,100 acres in Washington state during the quarter for $20 million or nearly $2,500 per acre.\nWe are raising our full year adjusted EBITDA guidance to a range of $320 million to $330 million, which reflects a 5% increase at the midpoint from our previous guidance, and an 8% increase at the midpoint from the original 2021 guidance we've provided in February.\nIn our Southern Timber segment, we now expect full year harvest volumes of 5.7 million to 5.8 million tons, as production has been constrained by regional weather conditions and trucking availability.\nOverall, we expect full year adjusted EBITDA of $118 million to $120 million in our Southern Timber segment, a slight decrease at the midpoint from prior guidance.\nIn our Pacific Northwest Timber segment, we are maintaining our full year volume guidance of 1.7 million to 1.8 million tons.\nWe now expect full year adjusted EBITDA of $53 million to $55 million, a modest increase at the midpoint from prior guidance.\nIn our New Zealand Timber segment, we now expect full year harvest volumes of 2.5 million to 2.6 million tons as we do not expect to fully recover production loss during the third quarter due to the COVID-19 shutdown.\nOverall, we now expect full year adjusted EBITDA of $75 million to $78 million, a decrease from prior guidance.\nIn our Real Estate segment, we now expect full year adjusted EBITDA of $101 million to $104 million, a significant increase from prior guidance.\nWe opportunistically recycled capital out of nonstrategic timberland holdings in Washington state and exited the timber fund business, while also closing on a total of $52 million on bolt-on acquisitions through September.", "summaries": "We Specifically, we generated adjusted EBITDA of $115 million and pro forma earnings per share of $0.35 per share during the third quarter.\nSales for the quarter totaled $365 million, while operating income was $123 million, and net income attributable to Rayonier was $76 million or $0.53 per share.\nOn a pro forma basis, net income was $50 million or $0.35 per share.\nOverall, we now expect full year adjusted EBITDA of $75 million to $78 million, a decrease from prior guidance.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0"}
{"doc": "At the peak, nearly 20% of our office network was closed to the public.\nOur efforts during this crisis to continue to meet the needs of clients, digitally enable our business, and serve our clients however they want, has led to strong feedback with service quality scores improving 2 points in Assisted and 5 points in DIY building on significant increases in both areas in fiscal '19.\nThrough June 5, the IRS reported total filings down 6%.\nExcluding these returns, we estimate DIY e-files are down approximately 4% compared to Assisted e-files, down 15% through June 5.\nTurning to Wave, after posting strong results of over 40% revenue growth through mid-March, we've seen flat revenues in April and May as small businesses were impacted by the pandemic.\nIn fiscal '20, we recognized revenues of $2.6 billion, representing a 14.7% decline from the prior year, driven by lower tax return volumes as a result of the extension of the federal tax filing deadline, partially offset by the contribution of Wave.\nRegarding expenses, total operating expenses increased 3.4%, driven entirely by the impairment of Wave goodwill and Wave's operating expenses.\nWe recorded a $106 million non-cash goodwill impairment at Wave due to the pandemic and its impact on small businesses.\nTurning to the rest of the income statement, interest expense increased by $9 million.\nApproximately half of this increase was due to higher draws on our line of credit during the normal course of the business through our fiscal third quarter, while the other half was due to additional interest associated with the $2 billion draw in late March.\nThe changes in revenue and expenses resulted in a pre-tax loss from continuing operations of $3 million.\nGAAP earnings per share was positive at $0.03 due to favorable discrete tax items.\nAdjusted earnings per share, which excludes the impact of the impairment and amortization of intangibles related to Wave and tax office acquisitions, was $0.84.\nOur current liquidity position remains strong as we ended the year with $2.7 billion in cash, which includes the full $2 billion drawn on our line of credit.\nAs we announced in late March, we believe we have sufficient funds to support the business at the start of tax season '21.\nOur line of credit is subject to various conditions including a covenant, which requires us to maintain a debt to EBITDA ratio of 3.5 times on April 30.\nI'm pleased to announce that despite the financial impact of COVID-19 and the extended tax season, our Board of Directors has declared a $0.26 per share dividend payable July 1.\nWe've never missed a dividend payment since going public in 1962.\nWith respect to share repurchases, in fiscal '20, we repurchased a total of 10.1 million shares for $247 million at an average price of $24.36.\nWe expect an increase of approximately $10 million in marketing expense and approximately $10 million in interest expense.\nAdditionally, we expect variable expenses related to compensation benefits and bad debt to be approximately 40% of incremental Assisted revenues generated.", "summaries": "We recorded a $106 million non-cash goodwill impairment at Wave due to the pandemic and its impact on small businesses.\nAs we announced in late March, we believe we have sufficient funds to support the business at the start of tax season '21.\nI'm pleased to announce that despite the financial impact of COVID-19 and the extended tax season, our Board of Directors has declared a $0.26 per share dividend payable July 1.", "labels": "0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0"}
{"doc": "Sales totaled $367 million this quarter, a decrease of 14% from the second quarter last year.\nNet earnings totaled $29 million for the quarter or $0.17 per diluted share, including $30 million or $0.20 related to the impairment charges associated with selling the Alco business.\nAfter adjusting for the impairment and other tax adjustments, net earnings totaled $62 million or $0.37 per diluted share.\nAlco operations contributed $7 million of sales and $2 million of operating losses year-to-date, which have been included within the Process segment.\nBased on the negotiations to sell, our investment in Alco was revalued in the second quarter, and we recorded noncash impairment charges of $34 million after tax, including $24 million of previously unrecognized foreign currency translation losses recorded in accumulated other comprehensive income.\nThe $24 million loss reserve for previously unrecognized foreign currency translation is recorded in other current liability at the end of the second quarter and will be cleared through accumulated other comprehensive income in the third quarter, as the divestiture was finalized in early July.\nOur gross margin rate was 49.8% for the second quarter, approximately three percentage points below the second quarter last year.\nOperating expenses, excluding the effect of the impairment, decreased by $12 million from the second quarter last year, as reductions in volume and earnings based expenses more than offset higher product development costs.\nThe reported income tax rate was 31% for the quarter, 13 percentage points higher than the second quarter last year, primarily due to nondeductible impairment charges.\nAfter adjusting for the effect of the impairment and excess tax benefits from stock option exercises and other nonrecurring tax benefits, our tax rate was 19% for the quarter or one percentage point lower than last year.\nCash flows from operations totaled $143 million year-to-date as compared to $164 million last year as a result of lower revenues.\nCapital expenditures totaled $33 million year-to-date as we continue to invest in manufacturing capabilities as well as the expansion of several locations.\nCash dividends totaled $58 million year-to-date.\nWe also completed an acquisition for $27 million in the second quarter, which will be a part of the Process segment.\nFor the full year 2020 capital expenditures are expected to be approximately $80 million, including approximately $50 million for facility expansion projects.\nWe completed share repurchases of $17 million net of share issuances during the quarter, bringing our total share repurchases net of issuances to $62 million for the year.\nOn Page 11 of our slide deck, we note our six-week booking average by segment.\nUnallocated corporate expenses are expected to be approximately $30 million for the full year 2020 and can vary by quarter.\nThe effective tax rate is expected to be approximately 20% to 21% for the full year, excluding the effect of onetime items and any impact from excess tax benefits related to stock option exercises.\nWe used a similar approach during the 2008, 2009 crisis and our investors were subsequently rewarded and we look to repeat this again.", "summaries": "Net earnings totaled $29 million for the quarter or $0.17 per diluted share, including $30 million or $0.20 related to the impairment charges associated with selling the Alco business.\nAfter adjusting for the impairment and other tax adjustments, net earnings totaled $62 million or $0.37 per diluted share.", "labels": "0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "On a consolidated basis, total revenue was a third quarter record of $6.5 billion, up 4% compared to $6.2 billion in the same quarter last year.\nOn a constant currency basis, revenue was up 5% compared to the prior year quarter.\nOur consolidated gross profit dollars totaled $708 million, down 2% or 18 million versus a year ago, and gross margin was 11% compared to 11.7% a year ago.\nTotal adjusted SG&A expense was $448 million or 7% of revenue, down $8 million compared to the year ago quarter.\nConsolidated non-GAAP operating income was $260 million, down $10 million or 4% compared to a year ago.\nNon-GAAP operating margin of 4% was lower by 34 basis points, compared to the prior year period.\nFirst on Technology Solutions revenue was $5.3 billion, up 5% or $258 million over the prior year quarter.\nTechnology Solutions' gross margin was 5.6%, and that was 37 basis points lower than the prior year quarter, primarily due to product mix.\nOperating income of $132 million was down $6 million compared to a year ago.\nNon-GAAP operating income was $142 million, down 5% or $7 million compared to the prior year quarter.\nNon-GAAP operating margin was 2.7%, 29 basis points lower than a year ago.\nTechnology Solutions COVID-19 related net incremental expense was approximately $8 million for the quarter, primarily made up of an increase in allowance for doubtful accounts, staffing and work from home costs.\nNow to Concentrix; Concentrix revenue was $1.2 billion, up 24 basis points over the prior year quarter.\nConcentrix gross margin was 35.5%, up 308 basis points sequentially, and down 126 basis points compared to the year ago quarter, primarily due to the impact of COVID-19.\nNon-GAAP operating income in the quarter was $118 million, down $3 million in absolute dollars or 2% compared to a year ago.\nNon-GAAP operating margin was 10.1% compared to 5.9% in fiscal Q2 and 10.4% a year ago.\nNet Concentrix COVID-19 related incremental expenses were approximately $13 million for the quarter.\nNow moving back to our consolidated results; third quarter net total interest expense and finance charges were $29 million, a reduction of $14 million compared to a year ago quarter.\nFor the fourth quarter, we expect interest expense to be approximately $29 million.\nTotal non-GAAP net income was $173 million, up $3 million or 2% over the prior year period, and non-GAAP diluted earnings per share was $3.33, up $0.03 or 1% over the same period a year ago.\nThe effective tax rate for the third quarter was 25.2% compared to 25.3% a year ago.\nFor the fourth quarter of fiscal 2020, we expect the effective tax rate to be approximately 25%.\nTurning to the balance sheet, our accounts receivable totaled $3.6 billion and inventories totaled $2.8 billion on August 31, 2020.\nOur cash conversion cycle for the third quarter was 38 days, 11 days lower from a year ago and improved eight days from last quarter and led to a preliminary cash flow from operations of $321 million.\nAt the end of Q3, including our cash and credit facilities, SYNNEX had approximately $2.8 billion in total liquidity available to fund operations.\nAs we see it today, the estimated the SYNNEX Corp gross debt will be approximately $2.6 billion with Concentrix receiving approximately $1.1 billion and SYNNEX receiving approximately $1.5 billion.\nThe majority of cash on hand, which we estimate will be approximately $700 million at spin, will be held by SYNNEX.\nNow moving to our fourth quarter outlook; we expect revenue to be in the range of $6.45 billion to $6.65 billion.\nNon-GAAP net income is expected to be in the range of $191 million to $204 million.\nNon-GAAP diluted earnings per share is expected to be in the range of $3.68 to $3.93 per diluted share, on weighted average shares of approximately $51.5 million.\nNon-GAAP net income and non-GAAP diluted earnings per share guidance excludes after-tax costs of approximately $37.5 million or $0.72 per share, related to the amortization of intangibles and acquisition-related and integration expenses.\nThe Concentrix F-10 document is available for your review.\nThe third quarter revenue for Concentrix totaled $1.16 billion, slightly higher than the same quarter last year.\nThis is just the latest innovation from our staff of well over 1,000 skilled engineers and developers.\nThe communication vertical is now approximately 21% of revenue, representing an impact of 4% to our year-over-year growth rate, but giving us a much more balanced portfolio.\nAs expected, our travel, transportation and tourism clients during the quarter have been impacted by COVID-19, resulting in an additional 2% impact on growth.\nNow moving to profitability; adjusted operating income for the quarter was $118 million or 10.1%, nearly reaching the year-ago level.\nThe return to double-digit operating margin reflects revenue over performance, with lower variable spend, despite $13 million of additional net COVID-19 cost impacts.\nCash flow from operations in the third quarter totaled approximately $91 million.\nCapital expenditures totaled approximately $37 million.\nAs a result, we expect fourth quarter revenue to increase by at least 2% year-over-year on a constant currency basis, and we expect our adjusted operating margin to be above 12.5%.\nWe intend to announce our Board of Directors in an updated Form 10 Registration Statement in early October.", "summaries": "First on Technology Solutions revenue was $5.3 billion, up 5% or $258 million over the prior year quarter.\nNow to Concentrix; Concentrix revenue was $1.2 billion, up 24 basis points over the prior year quarter.\nTotal non-GAAP net income was $173 million, up $3 million or 2% over the prior year period, and non-GAAP diluted earnings per share was $3.33, up $0.03 or 1% over the same period a year ago.\nNow moving to our fourth quarter outlook; we expect revenue to be in the range of $6.45 billion to $6.65 billion.\nNon-GAAP diluted earnings per share is expected to be in the range of $3.68 to $3.93 per diluted share, on weighted average shares of approximately $51.5 million.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Well before this pandemic, 95% of our employees were utilizing company laptops with the ability to work from home.\nWhile the current environment is certainly challenging the way that we all live and work, DHI's business model gives us some level of protection and stability in these uncertain times, as 90% of our revenues are generated through annual subscription-based contracts.\nAs a result, as of March 31, we had already booked over 2/3 of our total revenue for fiscal 2020.\nDespite this difficult environment, DHI was able to exceed its target of a 20% adjusted EBITDA margin in the first quarter.\nWe also took the precautionary step to ensure sufficient liquidity by drawing down an additional $25 million on our credit facility in early March while still maintaining a significant cushion to our covenants.\nOver the longer-term, if you look at the U.S. Bureau of Labor Statistics trend line for tech jobs over the past 20 years, including through the dotcom bubble and Great Recession, there has been a constant increase in technologist positions in this country.\nIn 2019, we delivered over 20 marquee product releases and dozens of minor releases.\nWe also moved 100% of our audience to a new Dice home page that includes a modern layout and navigation scheme.\nHowever, less than 1% of its revenue historically has come from direct contracts with government agencies.\nThese teams grew their pipelines very successfully, and we signed on many new clients based on their efforts for the first 10 weeks of the quarter.\nObviously, the state of the U.S. economy changed dramatically in mid-March, and these teams, which are 100% dedicated to building new business relationships, have seen what we believe is a temporary slowdown in their efforts as a result.\nThe insights we've gained in the first 10 weeks of the quarter, and the momentum we saw in signing new customers, gives us great confidence that our focus on commercial accounts will be the cornerstone for our growth as the business environment normalizes.\nFor the first quarter, we reported total revenues, $6.6 million, which was down 3% from the fourth quarter and down 1% year-over-year when you exclude the impact of foreign exchange.\nDice revenue was $22.5 million in the first quarter, down 3% sequentially and down 3% year-over-year.\nWe ended the first quarter with 5,850 Dice recruitment package customers, which is down 3% sequentially and 4% year-over-year.\nWe continue to see an increase in our average monthly revenue per recruitment package customer, which was up 2% year-over-year to $1,153, or approximately $13,840 on an annual basis.\nThis is important, as over 90% of Dice revenue is recurring and comes from recruitment package customers.\nOur Dice customer renewal rate was 67% for the first quarter, down 1 percentage point year-over-year, and our revenue renewal rate was 80%, which was also down 1 percentage point when compared to the same period last year.\nAs an example, currently 15% of our customers generate 50% of our recruitment package revenue, though no customer makes up even 1% of revenue.\nFirst quarter revenue for eFinancial Careers was $7.2 million, down 6% from the fourth quarter and 10% year-over-year when excluding the impact of foreign exchange rates.\nClearanceJobs' first quarter revenue was $6.9 million, increase of 4% sequentially and 19% year-over-year.\nTurning to operating expenses, first quarter operating expenses were $41.9 million, which includes an impairment of the Dice trade name of $7.2 million, which I will address in a moment.\nExcluding the impairment, operating expenses were $34.7 million, representing an increase of $1.2 million, or 3% year-over-year.\nWe had a tax benefit for the first quarter of approximately $900,000, resulting in an effective tax rate of 12%, which includes the impacts of the impairment losses and certain discreet tax items related to stock-based compensation.\nAs I mentioned, during the first quarter, we recorded an impairment charge of $7.2 million related to the Dice trade name.\nAlso, during the quarter, we recorded an impairment charge of $2 million due to liquidity concerns for a minority equity investment made in 2016 and 2017.\nWe recognized a net loss for the first quarter of $6.6 million, or $0.13 per diluted share compared to net income of $1.6 million, or $0.03 per diluted share a year ago.\nThis quarter's earnings per share had a $0.16 detriment as a result of the impairment of intangible assets and equity investments, as well as certain discreet tax and other items.\nLast year's earnings had a $0.04 detriment from disposition-related and discreet tax items.\nExcluding those items, on a normalized basis, earnings per share for the quarter was $0.03 versus $0.07 last year.\nAdjusted EBITDA margin for the first quarter was 21%, down from 23% in the same quarter last year.\nWe generated $2.9 million of operating cash flow in the first quarter compared to $3.2 million in the prior year quarter.\nFrom a liquidity perspective, at year-end we had approximately $5 million of net debt and $10 million drawn on a $90 million revolver.\nDuring the quarter, we drew down $27 million from our revolver, which puts us at 1.1 times leverage, which is well within our covenant of 2.5 times leverage.\nAt the end of the quarter, our total debt was $37 million.\nWe had $27.8 million of cash resulting in net debt of $9.2 million.\nDeferred revenue at the end of the quarter was $55.5 million, down 9% from a year ago.\nWhen we add the unbilled portion of our contracts to deferred revenue, our committed contract backlog at the end of the quarter was down 1% from the end of the first quarter last year.\nAs part of our share buyback program, we repurchased approximately 660,000 shares during first quarter for $1.6 million, or $2.49 per share.\nThis left roughly $3.3 million remaining of the current $7 million buyback program, which runs through May of this year.\nI would like to note that DHI's Board of Directors has approved a new $5 million share buyback program, which will begin following the expiration of our current program and run through May of 2021.\nAs an example, approximately 75% of the global 50 banks are customers.\nWith regards to ClearanceJobs, they grew through the dot-com implosion of 2001 and the Great Recession of 2008 because their success is correlated to the U.S. Department of Defense budget which is, relatively speaking, immune to the environment we find ourselves in.\nWe continue to manage the business to margins in the 20% range.", "summaries": "As a result, as of March 31, we had already booked over 2/3 of our total revenue for fiscal 2020.\nFor the first quarter, we reported total revenues, $6.6 million, which was down 3% from the fourth quarter and down 1% year-over-year when you exclude the impact of foreign exchange.\nWe recognized a net loss for the first quarter of $6.6 million, or $0.13 per diluted share compared to net income of $1.6 million, or $0.03 per diluted share a year ago.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Revenue was well above our guidance range and for the first time exceeded $0.5 billion at $509.6 million.\nIn addition to record revenue, we also delivered record non-GAAP operating margins of 9.9%, resulting in an all-time high non-GAAP earnings per share of $1.31 in the fourth quarter.\nFor the full fiscal year, we produced record revenue of $1.88 billion, representing industry-leading growth of 14% from the prior year.\nNon-GAAP net income was $4.67 per share.\nTotal operating cash flow for the year was $118.7 million and free cash flow was $76.1 million.\nWe estimate that the supply constraints we are experiencing impacted our fourth quarter revenue by approximately $25 million to $30 million, and we expect to see a similar impact in Q1.\nOur manufacturing facilities are fully operational, but we have implemented additional safeguards beyond what we have been doing for the past 1.5 years in order to protect our staff.\nWe are very pleased that at this time the vast majority of our employees have already received their second doses, such that by the end of this month, approximately 90% of our employees in Thailand will be considered fully vaccinated.\nAs we communicated earlier this year, we have broken ground on a new 1 million square foot building at our Chonburi campus.\nWe also previously discussed our intention to add approximately 100,000 square feet of manufacturing space at our Pinehurst campus.\nJust after the end of the fourth quarter, we completed the acquisition of 15 acres of land that had become available adjacent to our Pinehurst facility.\nRevenue of $509.6 million, up 6% from Q3 and 26% from a year ago, and was above our guidance range.\nWe also executed very well, hit our highest gross margin in four years, and record operating margins to produce non-GAAP earnings of $1.31 per share, which also exceeded our guidance.\nOptical communications was $387.8 million or 76% of total revenue, up 7% from Q3.\nNon-optical communications revenue was $121.7 million or 24% of total revenue, and increased 4% from Q3.\nWithin optical communications, telecom revenue was $310.7 million, up 10% from last quarter.\nDatacom revenue was $77.1 million, down very modestly from Q3.\nBy technology, silicon photonics products made up 22% of total revenue or $110.2 million, up 5% from Q3.\nRevenue from products rated at speeds of 400 gig or higher was $133.3 million, up 27% from the prior quarter.\nThis more than offset a 4% sequential decline of 100 gig products to $133.6 million in the fourth quarter.\nAutomotive revenue was $48.6 million, a slight decline from our record third quarter results.\nIndustrial laser revenue more than offset this at $41.1 million, up 14% from the third quarter.\nSensor revenue was $3.6 million and other non-optical communications revenue was up 14% to $28.2 million [Phonetic].\nGross margin of 12.3%, up 10 basis points from Q3 and was at the highest level in four years.\nOperating expenses in the quarter were $12 million or 2.4% of revenue, reflecting our operating leverage, resulting in operating income of $50.5 million or 9.9% of revenue, a record for the Company.\nDuring the fourth quarter, we have recorded a tax benefit of $2.1 million.\nWe anticipate that our effective tax rate in fiscal year 2022 will be approximately 4%.\nNon-GAAP net income was a record at $49.4 million or $1.39 per diluted share.\nOn a GAAP basis, net income was also a record at $42.4 million or $1.13 per diluted share.\nFor the full year, revenue was $1.88 billion, an increase of 14% from the prior year.\nNon-GAAP gross margin was 12.1% and operating margins were 9.5% of revenue.\nNon-GAAP earnings per share for the year was $4.67, up a strong 25% from fiscal year 2020.\nWe report 10% customers annually and in fiscal year 2021, we had three 10% customers.\nCisco and Lumentum both represented 14% of revenue and the Infinera represented 12% of revenue for the year.\nExcluding the impact of the acquisition, Acacia would also have been a 10% customer in fiscal year 2021.\nOur Top 10 customers represented 78% of revenue, compared to 79% in fiscal year 2020.\nAt the end of the fourth quarter, cash, restricted cash and investments were $548.1 million, an increase of $39.2 million from the end of the third quarter.\nOperating cash flow was $43.5 million with capex of $13.5 million; free cash flow was $30 million in the quarter.\nIn addition to expenses related to construction at our Chonburi campus, the recently purchased 15 acres of land, adjacent to our Pinehurst campus that will facilitate the manufacturing expansion we have in progress at that campus.\nOf the $13.2 million purchase price, 10% was paid during the fourth quarter and the remainder was paid in the first quarter of fiscal 2022.\nWe remain active in our share repurchase plan, and during the fourth quarter, we repurchased approximately 123,000 [Phonetic] shares at an average price of $85.88 for a total cash outlay of $10.5 million.\nApproximately $81.2 million remains in our buyback authorization.\nFor the first quarter, we anticipate revenue in the range of $510-530 million, which will represent another record quarter for Fabrinet.\nFrom a profitability perspective, we anticipate non-GAAP net income to be in the range of $1.29 to $1.36 per diluted share.\nI'd like to point out that this guidance includes the impact of our customary annual merit increases as well as approximately a $0.04 to $0.05 impact from the cost we are incurring in order to safeguard our employees through the vaccination program that Seamus described.", "summaries": "In addition to record revenue, we also delivered record non-GAAP operating margins of 9.9%, resulting in an all-time high non-GAAP earnings per share of $1.31 in the fourth quarter.\nRevenue of $509.6 million, up 6% from Q3 and 26% from a year ago, and was above our guidance range.\nWe also executed very well, hit our highest gross margin in four years, and record operating margins to produce non-GAAP earnings of $1.31 per share, which also exceeded our guidance.\nOn a GAAP basis, net income was also a record at $42.4 million or $1.13 per diluted share.\nFor the first quarter, we anticipate revenue in the range of $510-530 million, which will represent another record quarter for Fabrinet.\nFrom a profitability perspective, we anticipate non-GAAP net income to be in the range of $1.29 to $1.36 per diluted share.", "labels": "0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0"}
{"doc": "For the third quarter, Teleflex generated double-digit constant currency revenue and 27% adjusted earnings-per-share growth on a year-over-year basis despite a greater-than-expected headwind from increased COVID-19 infections due to the Delta variant.\nAs many investors will be aware, there were restrictions on elective surgical procedures in as many as 28 states during the third quarter.\nHowever, as we have seen since the pandemic began, our broad-based portfolio provides a hedge in periods of increased COVID activity with more than 60% of our business, either benefiting from increased COVID-related treatments or remaining relatively insulated from disruptions due to the pandemic.\nGiven our year-to-date results and outlook for the fourth quarter, we are reducing our constant currency revenue growth to a range of 8% to 9% from 8.5% to 9.75% previously.\nHowever, given strength in our operating margin performance and improvements in our balance sheet, we are increasing earnings per share guidance to a range of $13.15 to $13.35 versus our previous range of $12.90 to $13.10, implying growth of 23% to 25% year-over-year.\nThird quarter revenue was $700.3 million, an increase of 10.3% year-over-year on a constant currency basis.\nIn comparison to the comparable period in 2019, third quarter revenue increased 5.8% and demonstrated accelerating quarter-over-quarter growth in our Vascular, OEM and Anesthesia businesses, which offset sequential deceleration in areas of the business more exposed to the surge in COVID-19, including Interventional Urology, Interventional and Surgical.\nThird quarter adjusted earnings per share of $3.51 increased 26.7% year-over-year and exceeded our internal expectations.\nAmericas revenues were $417.3 million in the third quarter, which represents 10.9% growth year-over-year.\nEMEA revenues of $143.9 million increased 3.6% year-over-year with Interventional and Vascular products leading the growth.\nRevenues were $75 million, increasing 6.3% year-over-year.\nJapan was strong in the third quarter, growing north of 30%, but was partially offset by the impact of COVID-19 in Southeast Asia.\nThird quarter revenue increased 8.5% to $175.5 million.\nOur PICC portfolio continues to perform well with 10% growth year-over-year.\nIntraosseous was also solid in the third quarter with growth up 12% year-over-year.\nThird quarter revenue was $104.3 million, up 10.4% year-over-year.\nMANTA momentum remains strong, both in the U.S. and in international markets, with over 80% global growth year-over-year in the third quarter.\nGiven the year-to-date performance for MANTA, we are confident in our ability to achieve 8% share in 2021 of the $200 million to $300 million global market opportunity.\nThird quarter revenue was $97.1 million, up 26.6% year-over-year.\nProducts from Z-Medica contributed roughly 85% of the growth as the business continues to track to our $60 million to $70 million revenue expectations for 2021, partly offset by lower sales of tracheostomy products.\nIn our Surgical business, revenue was $92.8 million, representing 10.9% growth year-over-year.\nUrology, third quarter revenue was $83.1 million, an increase of 1.5% year-over-year and below our expectations at the time of the quarter two conference call.\nWe continue to target patients that are suffering from BPH and have either failed or are not satisfied with drug therapy, a population that is estimated to be 1.5 million men in the United States.\nWhen taking into account the softer-than-expected UroLift revenues during the third quarter and our recalibration of the fourth quarter, we are reducing our 2021 Interventional Urology revenue growth guidance to 15% to 17% year-over-year.\nOur OEM business, which accounts for roughly 9% of total sales increased 29.4% year-over-year to $64.1 million in the third quarter.\nAnd finally, our other category, which consists of respiratory products that were not included in the divestiture to Medline, manufacturing service agreement revenues and Urology Care products declined by 4.3% to $83.4 million year-over-year.\nIn the third quarter, we trained 124 urologists.\nInterest in UroLift remains strong, and with over 355 doctors trained in the year-to-date, we remain positioned to meet our training target of 450 to 500 urologists in 2021.\nWe recently won a bronze award for best new branded television campaign from DTC perspective, which is a meaningful accomplishment given 13 finalists.\nMoving to UroLift 2.\nUroLift two remains an important margin driver as we remain positioned to generate 400 basis points of UroLift gross margin expansion as the revenue base is fully converted.\nJapan remains an important long-term opportunity for UroLift with a $2 billion TAM and we are excited for our upcoming launch.\nWe continue to expect our sales in the region to ramp in a similar fashion to the U.S. in a market that is 1/3 the size.\nThe proposed rule would negatively impact reimbursement for roughly 600 procedures performed in the doctor's office across a broad range of surgical specialties with a disproportionate hit to device-heavy procedures such as UroLift.\nWe are pleased with the performance of our recently launched Arrow ErgoPack kit, which contributed over $5 million in revenue during the third quarter.\nWe intend to file a 510(k) for expanded use of QuikClot Control+ following the completion of the study.\nFor the third quarter, adjusted gross margin totaled 59.5%, a 230 basis point increase versus the prior year period.\nThird quarter adjusted operating margin was 28.5% or a 340 basis point year-over-year increase, driven by the gross margin improvement as well as disciplined expense management and partially offset by planned investment in the business.\nFor the quarter, net interest expense totaled $11.8 million, a decrease from $16.4 million in the prior year period.\nOur adjusted tax rate for the third quarter of 2021 was 11.3% compared to 7% in the prior year period.\nAt the bottom line, third quarter adjusted earnings per share increased 26.7% to $3.51.\nIncluded in this result is an estimated favorable impact from foreign exchange of approximately $0.13 per share versus prior year.\nYear-to-date, cash flow from operations totaled $450.5 million compared to $241.5 million in the prior year period and represented a year-over-year increase of $209 million.\nAt the end of the third quarter 2021, our cash balance was $481.2 million versus $375.9 million at the end of the fourth quarter of 2020.\nAs noted previously, we made a $259 million payment in July against our revolving credit facility, using funds primarily generated from the initial close of the respiratory business divestiture.\nAt the end of the third quarter, we had $342 million drawn on our revolver and net leverage was approximately 2 times.\nWe are adjusting our 2021 constant currency revenue growth guidance to a range of 8% to 9% year-over-year compared to 8.5% to 9.75% previously.\nWe continue to assume a 2% tailwind to reported revenue from foreign exchange rates in 2021, which is unchanged from our previous assumption.\nAs a result, we are reducing our as-reported revenue growth guidance to 10% to 11% year-over-year versus 10.5% to 11.75% previously.\nThe updated guidance would equate to a dollar range of between $2.791 billion and $2.186 billion.\nWe are lowering the top end of our 2021 adjusted gross margin guidance by 25 basis points to a range of between 59.25% and 59.5%.\nThere is no change to our expectation at Z-Medica, will add approximately 50 basis points to gross margin for 2021.\nAs a result of the expiring shipping contracts and increasing inflation, we now estimate that inflationary costs will be roughly $3 million higher in the fourth quarter than what was incurred in the third quarter.\nFor adjusted operating margin, we are increasing our 2021 guidance range to 27.5% to 28%, representing an increase of 75 basis points at the low end and 50 basis points at the high end of the range versus prior guidance.\nWe now expect interest expense to be roughly $57 million versus our previous guidance of $60 million to $62 million.\nOn taxes, we now expect our adjusted tax rate for 2021 to be roughly 12% to 13% versus the prior range of 13% to 13.5%.\nConsidering all of these elements, we are raising our adjusted earnings per share outlook for 2021 by $0.25 at the high and low end of the range to $13.15 to $13.35, a 23.2% to 25.1% year-over-year increase.\nThird, we raised our earnings per share guidance for 2021, reflecting 23% to 25% earnings growth year-over-year.\nOur balance sheet is in a solid position with leverage at 2 times, providing ample financial flexibility for our capital allocation priorities.", "summaries": "Given our year-to-date results and outlook for the fourth quarter, we are reducing our constant currency revenue growth to a range of 8% to 9% from 8.5% to 9.75% previously.\nHowever, given strength in our operating margin performance and improvements in our balance sheet, we are increasing earnings per share guidance to a range of $13.15 to $13.35 versus our previous range of $12.90 to $13.10, implying growth of 23% to 25% year-over-year.\nThird quarter revenue was $700.3 million, an increase of 10.3% year-over-year on a constant currency basis.\nThird quarter adjusted earnings per share of $3.51 increased 26.7% year-over-year and exceeded our internal expectations.\nAt the bottom line, third quarter adjusted earnings per share increased 26.7% to $3.51.", "labels": "0\n0\n0\n1\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Our net organic revenue growth in the second quarter was 19.8%.\nThat's against the second quarter of 2020 when as you will recall our organic change was negative 9.9%, which while well ahead of our peer group did mark our steepest decrease of the recession.\nIt's also important to note that our 7.9% organic increase this quarter relative to the pre-pandemic second quarter of 2019.\nIn the US, it was 17.4%, growth in our international markets ranged from 14% in the Asia-Pacific region to 49% in Latin America.\nOur IAN segment grew 20.5% organically with increases led by media, data and technology and with solid contributions from our global integrated networks.\nAt our DXTRA segment, organic growth was 15.1% with strong increases from last year's heavily impacted Q2 across Octagon's sports and entertainment and Jack Morton's experiential offerings.\nThe auto, retail and other sectors were up more than 20%, consumer goods, tech and telecom and healthcare increased in the mid to high teens, food and beverage and financial services were up in the low double-digit range.\nOur second quarter net income was $263.3 million as reported.\nAdjusted EBITDA was $405.8 million and adjusted EBITDA margin on net revenue was 17.9%.\nDiluted earnings per share was $0.66 as reported and was $0.70 as adjusted for the after tax expense of the amortization of acquired intangibles.\nAt that time, we outlined our view toward full year organic growth of 5% to 6% and adjusted EBITDA margin of approximately 15.5%.\nWith predicated on the continued progress and public health issues, we believe that we can deliver organic growth for the full year of 9% to 10%.\nAnd with that level of growth, we would expect to achieve 2021 adjusted EBITDA margin of approximately 16%.\nAdjusted EBITDA, before a small restructuring adjustment, was $405.8 million, and margin was 17.9%.\nDiluted earnings per share were $0.66 as reported and $0.70 as adjusted before the after-tax impact of the amortization of acquired intangibles.\nOur net revenue in the quarter was $2.27 billion, an increase of $416.2 million from a year ago.\nCompared to Q2 2020, the impact of the change in exchange rates was positive 3.1% with the US dollar weaker against currencies in most of our largest markets.\nNet divestitures were negative 40 basis points.\nOur organic net revenue increase was 19.8%, which brings us to 10.6% organic growth for the six months.\nOur IAN segment grew 20.5% organically.\nAt IPG DXTRA, organic growth was 15.1%, which reflects some recovery of the events and sports marketing offerings within the segment, the disciplines that have been most significantly impacted by the pandemic.\nIn the US, which was 63% of net revenue in the quarter, organic growth was 17.4%.\nRevenue decreased a year ago in the same period by 8%.\nInternational markets were 37% of our net revenue in the quarter and increased 24.4% organically.\nYou'll recall that the same market decreased 13.1% a year ago in the second quarter which ranged by region between negative 10% and negative 15%.\nContinental Europe grew 27.9% with notably strong growth in Germany, Spain and France.\nThe UK increased 18.7% organically, led by McCann, DXTRA, media, data and tech and R/GA.\nAsia-Pac grew 14% organically.\nOur organic growth in LatAm was 49% with exceptional results across the region, including Brazil, Mexico and Argentina.\nOur other markets group grew 29.2% with notably strong performance in the Middle East and Canada.\nOur operating expenses excluding billable expenses, the amortization of acquired intangibles and restructuring charges increased only 11% from a year ago and to 22.5% growth of net revenue.\nThe result was second quarter margin expansion to 17.9% from 9.4% a year ago.\nWe also reduced our real estate footprint by 15% last year.\nWe are currently seeing the benefit of most of these actions and at a full run rate they will generate $160 million in annual cost savings.\nAs you can see on this slide, a ratio of total salaries and related expense, as a percentage of net revenue was 65.4%, which has significantly improved from the second quarter of 2020 when revenue had decreased sharply.\nUnderneath that, we drove very strong leverage on our expense for base payroll, benefits and tax, which was 53% of net revenue in the quarter.\nOur severance expense ratio also decreased sharply to only 40 basis points of net revenue, compared to 3% in Q2 2020, which was at an elevated level due to the impact of the recession.\nGoing the other way, our expense for performance-based incentive compensation increased to 6.4%, consistent with our very strong operating results.\nExpense for temporary labor also increased, as a percentage of net revenue to 4.5%, as a result of servicing the top line's quick acceleration.\nAt quarter-end, total worldwide headcount was approximately 53,000, a 1.4% increase from a year ago and up 5.2% from the beginning of this year, with hiring to support our growth.\nAlso on this slide, our office and other direct expense decreased as a percentage of net revenue by 380 basis points to 13.3%.\nOur occupancy expense decreased to 5% of net revenue, mainly due to the restructuring of our real estate, as well as leverage on our revenue growth.\nWe leveraged all other office and other direct expense by 220 basis points, which reflects lower expense for bad debt and acquisition costs and leverage as a result of our revenue growth.\nOur SG&A expense was 1.3% of net revenue, with the increase from a year ago due to the higher unallocated performance-based incentive expense and increased employee insurance expense, which was at a very low level a year ago.\nOur expense for the amortization of acquired intangibles in the second column was $21.6 million.\nThe restructuring refinement in the quarter is a benefit of $200,000.\nBelow operating expenses in column four, we had a pre-tax loss in the quarter of $1.7 million in other expenses due to the disposition of small non-strategic businesses.\nAt the foot of the slide, you can see the after-tax impact per diluted share of these adjustments was $0.04 per share, which bridges our diluted earnings per share as reported at $0.66 to adjusted earnings of $0.70 per diluted share.\nCash from operations was $468.2 million, compared with the use of $87.1 million a year ago.\nWe generated $101.6 million from working capital compared to a use of $264.9 million last year.\nInvesting activities was $43.3 million in the quarter, mainly for capex of $34 million.\nFinancing activities used $101.8 million, mainly for our dividend.\nOur net increase in cash for the quarter was $325.6 million.\nWe ended the quarter with $2.34 billion of cash and equivalents.\nUnder current liabilities, the current portion of long-term debt refers to our $500 million, 3.75% senior note which matures in October of this year.\nAgain, we have the maturity in October of this year, and then only $250 million due in April 2024.\nOne of our many priorities over the years has been the creation and implementation of open architecture solutions, where we bring the best of IPG together in collaborative teams that are customized to client-specific business needs and increasingly a key element of this approach, Open Architecture 2.0, as it were, is Acxiom whose data management expertise and data assets play a role in an increasingly broad range of our offerings.\nFCB Health was also named Healthcare Network of the Year and AREA 23 and FCB Health Agency was named Healthcare Agency of the Year.\nDuring the quarter, as part of our integrated ESG efforts, we also announced an action plan that consists of three climate roles, committing to set a science-based target; sourcing 100% renewable electricity by 2030, and joining the Climate Pledge, co-founded by Amazon and Global Optimism.\nAnd they announced that they're committing to invest at least 5% of client budgets in black-owned media by 2023.\nWe will, of course, be mindful of the public health situation and of the learnings we've accumulated during the past 16 months when it comes to flexible work practices.", "summaries": "Diluted earnings per share was $0.66 as reported and was $0.70 as adjusted for the after tax expense of the amortization of acquired intangibles.\nWith predicated on the continued progress and public health issues, we believe that we can deliver organic growth for the full year of 9% to 10%.\nDiluted earnings per share were $0.66 as reported and $0.70 as adjusted before the after-tax impact of the amortization of acquired intangibles.\nOur net revenue in the quarter was $2.27 billion, an increase of $416.2 million from a year ago.\nAt the foot of the slide, you can see the after-tax impact per diluted share of these adjustments was $0.04 per share, which bridges our diluted earnings per share as reported at $0.66 to adjusted earnings of $0.70 per diluted share.", "labels": 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{"doc": "Flowserve delivered adjusted earnings per share of $0.50, in line with our expectations.\nIn the quarter, adjusted SG&A decreased $30.8 million year-over-year to $193 million.\nWe continue to track ahead of our $100 million cost-out program for full-year 2020, compared to last year's cost structure.\nOur Flowserve 2.0 Transformation program continued to deliver solid operational execution, limiting the decline in our adjusted operating margin to 60 basis points on a $71.4 million revenue decrease versus third quarter 2019, resulting in decremental margins of 19.5% in the quarter.\nWe are confident, as additional Flowserve 2.0 process improvement initiatives are implemented within the organization, we will capture more margin enhancement opportunities through further cost actions, manufacturing productivity and product cost reductions.\nFPD's bookings decreased 22.6%, while sales decreased 1.8% as we executed on its strong backlog.\nThe bookings decline was driven by original equipment down 37%, while aftermarket bookings were more resilient at a decline of 12%.\nOil and gas bookings were down 45% year-over-year, primarily due to a nearly $60 million decline in project awards.\nFPD's adjusted margins were in line with expectations, including the 110 basis point improvement in adjusted operating margin to 14.1%.\nDespite the modest revenue decline, adjusted operating income increased approximately 6.8% to $94.5 million, demonstrating solid operating performance, which more than offset the headwind of a 400 basis point mix shift toward original equipment.\nAggressive cost actions drove a $22 million decrease in adjusted SG&A and a 280 basis point decrease in adjusted SG&A as a percentage of sales to 18.7%.\nFCD's bookings and sales were down 16% and 18.7%, respectively.\nOil and gas, power and general industries were both primary drivers or were the primary drivers, down 30%, 20% and 12%, respectively.\nFCD's adjusted gross and operating margins were 30.3% and 12.2%, respectively.\nAs expected, our third quarter bookings of $806 million was generally in line with second quarter levels and represented a 21% decline year-over-year.\nAs you may recall, last year's third quarter included strong oil and gas project activity in the Middle East and Asia Pacific, as well as the number of smaller projects awards, which together totaled roughly $140 million.\nBy contrast, the largest award we received in the 2020 third quarter was $12 million and when combined with our other small- to medium-sized project awards, the sum represented less than $60 million of project awards.\nThird quarter aftermarket activity remained relatively stable with bookings up $424 million, down 32.5%, modestly better -- modestly below our expectations.\nOriginal equipment bookings in the quarter were $381 million, down 28% versus prior year and up about 4% sequentially.\nLarge projects, which typically accounts for 10% to 15% of our business, remain the most challenged.\nWe are beginning to see signs of increased aftermarket spending in 2021 as operators are planning for maintenance and turnaround events.\nThird quarter bookings declined 42% year-over-year and were roughly flat sequentially.\n2019 third quarter included over $90 million of project awards.\nThis quarter, our largest project award in oil and gas was just $12 million.\nThird quarter chemical bookings were down 21.6% in the quarter, primarily driven by FPD's 31% decline, while FCD's bookings were down only 5%.\nThe quarter included one small award of $4 million in Asia Pacific.\nThird quarter and year-to-date bookings are down just 7.5% and 9.2%, respectively.\nThe quarter includes a few small nuclear awards totaling $9 million and a $4 million fossil fuel award in Asia.\nThe general industries market, which includes a significant level of distribution and was our most challenging market in 2019, continued to show signs of recovery in the third quarter with bookings up 18.6% and up 5.9% year-to-date.\nFPD's 31% increase was partially offset by FCD's 11.5% decline, driven by the continued MRO slowdown in North America.\nFinally, representing our smallest market, water bookings decreased $41 million or 66%.\nLast year's third quarter was particularly strong, including over $20 million in awards for a large Middle East desalination project.\nWhile the 2020 third quarter included only one project award of $6 million in North America, we continue to expect investment opportunities from desalination, flood control and municipal water markets.\nOnly Latin America has delivered constant-currency bookings growth in 2020, up 6% and 9% in the third quarter and year-to-date, respectively.\nLooking at Flowserve's third quarter financial results in greater detail, our reported earnings per share of $0.39 included realignment and transformation expenses, as well as below the line FX charges totaling $0.11.\nAdjusted earnings per share of $0.50 was solid, considering we continued to experience ongoing COVID-related headwinds.\nThird quarter revenues of $924 million were flat sequentially and down 7.2% versus the prior year.\nFPD's revenue declined 1.8% on reduced aftermarket activity, which more than offset strong original equipment sales growth of 10% through backlog execution.\nConsolidated OE revenues of $479 million were down 5.6%, where FCD's 21% year-over-year decrease more than offset FPD strength.\nAftermarket revenue of $445 million was down 8.8%, with both segments down in that general range.\nThird quarter adjusted gross margin decreased 230 basis points to 31.5%, including declines of 180 basis points and 240 basis points at FPD and FCD, respectively.\nIn addition to the previously mentioned cost increases related to COVID and the associated disruption with our sites, margins were also negatively impacted by a 100 basis point mix shift toward original equipment revenues as a percentage of our total sales, driven by FPD's 400 basis point mix shift.\nOn a reported basis, Flowserve's third quarter gross margins decreased 250 basis points to 30.9%, again due to COVID disruptions and mix headwinds, and a $2 million increase in realignment expenses versus last year's third quarter.\nThird quarter adjusted SG&A decreased $30.8 million or 13.8%, demonstrating our cost control and the aggressive cost actions we took in the first half of the year.\nThese measures brought our $193 million of adjusted SG&A down 160 basis points as a percentage of sales to 20.9% versus prior year, which was flat sequentially.\nOn a reported basis, SG&A as a percentage of sales decreased 140 basis points, primarily due to the cost actions we implemented considering our adjusted items were relatively flat with prior year.\nThird quarter adjusted operating margin decreased 60 basis points versus last year's 10.9%.\nWith third quarter adjusted operating income of $100.6 million and a $71.4 million year-over-year revenue decline, it represents an adjusted decremental margin of approximately 19.5%.\nAs a result, FPD drove 110 basis points increase in its adjusted operating margin to 14.1%.\nFCD's adjusted operating margin of 12.2% was below our expectations, driven by a higher mix of lower margin project work.\nReported third quarter operating margin decreased 110 basis points to 9.4%, driven primarily by a loss of leverage on lower revenues and included the benefit of modestly lower adjusted items.\nBased on our operating cash flow of $70 million to $75 million and quarterly capex spending, free cash flow for the quarter will be about $57 million.\nThis performance as well as the $300 million of net proceeds after our note issuance and tender offer, brought Flowserve's cash and cash equivalents balance at September 30 to over $921 million.\nEven absent the net proceeds of the bond issuance, Flowserve increased its cash position $59 million in the quarter.\nHowever, primary working capital as a percent of sales grew to 30%, as inventory, including contract assets and liabilities, increased roughly $100 million versus the prior year.\nDSO was 73 days in the quarter versus 74 in each of the first two quarters of 2020, although we still see opportunities for improvement.\nDespite some COVID-driven slow pay impacted this year, we have made significant improvement in the last three years when DSO was 87 days in the third quarter of 2017, and we expect our transformation initiatives will enable us to reach our target of below 70 days, which given the competitive environment for payment terms in certain of our end markets would represent strong performance.\nIn addition to the $500 million note issuance and tender offer during the third quarter, we also amended our $800 million senior credit facility to provide Flowserve increased flexibility and ample access to this source of liquidity.\nIn total, our quarter-end liquidity position increased roughly $370 million sequentially to $1.7 billion, which includes our cash balance as well as nearly $750 million of available capacity under our amended credit facility which remains undrawn.\nWith the continued progress on our $100 million cost reduction program, combined with the anticipated working capital improvements, disciplined capital spending, and discretionary cost management, we expect to deliver significant cash from operations in the seasonally strong fourth quarter.\nOur expected major cash usages in 2020 remain consistent with our prior guidance, including funding our structural cost-out actions and the realignment and transformation programs.\nWe continue to expect full-year capital expenditures in the $60 million range and annual dividends of roughly $100 million.\nAs a result, we increased our liability by $74 million to $101 million in total.\nThis liability is partially offset by $87 million of insurance coverage booked as a receivable.\nWe are managing through the COVID pandemic, and our operational efforts with Flowserve 2.0 are positively impacting our downturn performance.\nThe Flowserve 2.0 work is not done and we continue to remain committed to our transformational program.\nIn fact, the speed with which we reduced our cost structure by $100 million versus 2019 was possible because of our success over the last few years, creating a more flexible Flowserve 2.0 operating model.\nMost of the structural cost initiatives we implemented mid-year were comprised of measures previously planned as part of the Flowserve 2.0 program that we accelerated.\nOver the last 18 months, we've put a lot of effort in analyzing our end markets and evaluating our overall product portfolio.\nThis year, we have launched five new products, introduced 10 product upgrades and put six existing products through the design-to-value process.\nToday, oil and gas represents about 60% of the global energy mix.\nWith significant investment in renewables through 2040, most still expect oil and gas to provide more than 50% of the global energy mix.\nWe also specifically announced a new target for reducing global CO2 emissions intensity by 40% by 2030 using 2015 as a baseline.\nWe expect to make significant progress converting our $2 billion backlog in the fourth quarter and deliver our largest revenue quarter of this year.\nFourth quarter decrementals should be around the 20% level.\nFinally, we are forecasting to finish the last quarter of the year with free cash flow generation of at least $100 million, as we reduce primary working capital from the third quarter levels.", "summaries": "Flowserve delivered adjusted earnings per share of $0.50, in line with our expectations.\nWe are beginning to see signs of increased aftermarket spending in 2021 as operators are planning for maintenance and turnaround events.\nLooking at Flowserve's third quarter financial results in greater detail, our reported earnings per share of $0.39 included realignment and transformation expenses, as well as below the line FX charges totaling $0.11.\nAdjusted earnings per share of $0.50 was solid, considering we continued to experience ongoing COVID-related headwinds.\nOur expected major cash usages in 2020 remain consistent with our prior guidance, including funding our structural cost-out actions and the realignment and transformation programs.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Turning to slide four, we reported net income of $50 million or $0.56 per share for the third quarter of 2021.\nThis compares with the loss of $17 million or $0.19 per share for the third quarter of 2020.\nAnd despite, third quarter volatility in the energy markets and higher O&M, we are reaffirming our 2021 earnings guidance of $2.70 to $2.85 per share.\nOur long-term outlook remains unchanged and we are reaffirming our 4% to 6% long-term earnings growth guidance.\nYear-to-date revenue is up 12% versus 2020 and for the quarter, up 17% versus last year.\nThe ongoing impacts of climate change underscore the importance of investments and actions that we are taking to rapidly transition to a clean energy future and meet our 2030 decarbonization goals while also ensuring that we have sufficient capacity.\nWe estimate that our 2030 targets will require approximately 1,500 to 2,000 megawatts of additional carbon-free resources and approximately 800 megawatts of non-emitting capacity resources.\nIn addition to removing coal from our portfolio, we're seeking approximately 1,000 megawatts of renewables and non-emitting capacity resources as part of our RFP, which will be issued in December.\nAs part of this procurement, we plan to add 375 to 500 megawatts of renewables to our portfolio.\nWe will also bring on approximately 375 of non-emitting to special capacity.\nWe could see procuring about a third of our clean energy resources needed to meet the 2030 emissions target reductions with this RFP.\nWe estimate that as much as 25% of flexibility needed to meet our decarbonized future would come from customers and distributed energy resources, such as solar panels, batteries, electric vehicles.\nDuring the 2021 summer heat up, we worked with customers to save 62 megawatts of power equivalent to powering 25,000 homes.\nWe're working to significantly grow this program to 500 megawatts by the end of 2023.\nWe recently adopted a green financing framework, under which we successfully placed $150 million in green bonds.\nIn October that resolves the cost of equity and gives at 9.5% as well as the 50/50 cash structure.\nOur high tech and digital services sectors continue to grow at a rapid pace 9% higher when compared to Q3 2020.\nWe reported GAAP income of $0.56 per share in the third quarter of 2021, compared to a GAAP loss of $0.19 per share in the third quarter of 2020.\nNon-GAAP income for the third quarter of 2020 is $0.90 after removing the negative impact of the energy trading losses.\nBeginning with the loss of $0.19 per share for the third quarter of 2020, we will add back the $1.09 one-time impact of the energy trading losses.\nWe experienced a $0.37 increase in total revenues, primarily due to the strong economy driving growth in our service territory with the balance due to warmer weather.\nThis represents a 17% year-over-year increase in total revenues.\nOffsetting this was a $0.39 of unfavorable power cost.\nAs a result, we are forecast to be above the $30 million threshold to begin customer cost sharing pursuant to our power cost adjustment mechanism.\nThrough the quarter, we have deferred $27 million, which represents 90% of the variance above that threshold.\nOur portfolio is well positioned and a bit long to balance gas price fluctuation and we have significant gas storage at the 4.1 billion cubic foot North Mist facility that we can draw on as needed.\nThere was $0.11 decrease to earnings per share from cost associated with our fixed operating expenses, including $0.03 for enhanced wildfire mitigation, $0.04 of additional vegetation management, including work that was delayed as we focused on storm restoration during the second quarter, $0.02 of service restoration costs and $0.02 of miscellaneous other expenses.\nThere was an $0.18 decrease to earnings per share from administrative expense.\nHalf of the year-over-year increase is attributed to items that were unique to 2020, including $0.07 in adjustments to incentive programs, following the energy trading losses in the prior period and $0.02 from the deferral of bad debt following the approval of the COVID-19 deferral.\nThe remaining administrative expense can be attributed to $0.06 for outside services to support improvements to our customer experience, a $0.02 increase in employee benefit expenses and $0.01 from miscellaneous other expenses.\nWhile O&M was higher this quarter when compared to Q3 2020, on a year-over-year basis our cost have increased only 2% annually since 2019.\nThe fact that we have reduced planned outages by 29% year-over-year, stood up a large wildfire prevention program and greatly increased vegetation management is a testament to the efficiency we built into the O&M program.\nFinally, there was a $0.03 decrease to earnings per share from the following items; $0.03 benefit from lower depreciation and amortization due to plant retirements, $0.04 of higher tax expense due to the timing difference of asset retirements in 2020, and $0.02 from other unfavorable miscellaneous items.\nOur agreement supports a capital structure of 50% debt, 50% equity, and a 9.5% allowed ROE.\nWe increased our capital expenditure forecast by over $100 million this quarter.\nTotal available liquidity at $930 million is just over $1 billion.\nThis quarter, we renewed and increased by $150 million our revolving credit facility to include sustainability linked performance metrics.\nOur year-to-date 2021 performance remains on track and we reaffirm our guidance range of $2.70 to $2.85 and remain on track to achieve long-term earnings growth guidance of 4% to 6% from the 2019 base year.", "summaries": "Turning to slide four, we reported net income of $50 million or $0.56 per share for the third quarter of 2021.\nAnd despite, third quarter volatility in the energy markets and higher O&M, we are reaffirming our 2021 earnings guidance of $2.70 to $2.85 per share.\nWe reported GAAP income of $0.56 per share in the third quarter of 2021, compared to a GAAP loss of $0.19 per share in the third quarter of 2020.\nOur year-to-date 2021 performance remains on track and we reaffirm our guidance range of $2.70 to $2.85 and remain on track to achieve long-term earnings growth guidance of 4% to 6% from the 2019 base year.", "labels": "1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1"}
{"doc": "From my perspective, the highlights are the Q4 revenues got back to year-ago levels despite food equipment being down 17% and net operating income, operating margin and after-tax ROIC were all Q4 records for the Company.\nFor 2021, our Win the Recovery posture in mindset continues on and serves as the central theme driving the 2021operating plans for every one of our 83 divisions.\nIn the fourth quarter, we continue to see solid recovery progress in many of the end markets that we serve as evidenced by our revenue being up sequentially 5% versus the third quarter.\nThe increase is 8% when you adjust for equal number of days when historically our revenue per day has increased by 1% from Q3 to Q4.\nOverall, we delivered revenue of $3.5 billion, operating income of $883 million, an increase of 7% year-over-year, operating margin of 24.4%, free cash flow of $705 million, and GAAP earnings per share of $2.02.\nAfter-tax return on invested capital improved to 32%.\nOn a year-over-year basis, North America organic revenue declined 3%, International revenue grew 1%, Europe was down 2%.\nSimilar to Q3, China was the bright spot with 11% growth.\nAs we've talked about before, the operating flexibility that is core to our 80/20 Front-to-Back operating system also applies to the cost structure, which was on full display through our operating margin performance in Q4.\nWe improved operating margin by 170 basis points to 25.4%, the second-highest margin rate in a quarter in the history of the Company.\nAnd like I say, grew operating income 7% to $883 million, the highest fourth quarter ever.\nThe biggest driver of our margin improvement remains our enterprise initiatives, as the ITW team executed on projects and activities that contributed 130 basis points in Q4.\nThe impact was broad-based with all segments delivering enterprise initiative benefits in the range of 80 basis points to 170 basis points.\nGAAP earnings per share was $2.02 sets, up 2%, but keep in mind, the Q4 last year had $0.11of one-time gains from divestitures.\nTo exclude those gains, earnings per share was up 7%, the same as operating income.\nWorking capital performance was excellent and free cash flow of $705 million was solid with a conversion rate of 110% of net income.\nFinally, the effective tax rate was 22.1%, down slightly from last year.\nYou can see the rapid recovery in our end markets, relative to the Q2 bottom, but down 27%.\nThe most pronounced recovery has been in automotive OEM, which is more than doubled since Q2 and grew 8% year-over-year in Q4, as did construction products.\nPolymers and Fluids grew 7% while demand in three segments, Test & Measurement and electronics, welding and specialty products was only slightly lower year-over-year.\nOverall, you can see the benefit of having a high quality diversified portfolio and the fact that we're back to demand levels of a year ago with total revenue essentially flat year-over-year despite one of our core segments being down organically by 19%.\nAt the bottom, in Q2, we still delivered solid operating margins of 17.5% and only two segments were below 20%.\nIn Q4, were almost 800 basis points higher at 25.4% despite no volume growth year-over-year and every segment is back about 22% including food equipment and six out of seven segments achieved record fourth quarter operating margins.\nIn Q4, organic growth of 8% year-over-year was the highest growth rate since the first quarter of 2017.\nWhile North America was flat in Q2, it was more than offset by strong demand in Europe, which grew 10% and China, which grew 20%.\nAs expected, food equipment end markets remained challenged in Q4, organic revenue was down 19%, a little better than the third quarter, and demand in Q4 was similar to Q3 when you look at it by geography and the end markets.\nNorth America was down 20%, international down 18%, equipment sales were down 20% and service was down 18%.\nInstitutional demand was down about 30% with restaurants down a little bit more than that.\nAnd not surprisingly, the bright spot throughout the year, continue to be retail with organic growth of 8%.\nQ4 organic revenue declined 3% with Test & Measurement down 8% against the tough comparison of plus 6% in Q4 '19.\nElectronics was up 3% and while demand for capital equipment remains sluggish, the segment benefited from considerable strength in several end-markets, including semiconductor, healthcare and clean room.\nPre-COVID revenues in fiscal year 2019 were $559 million with operating margin of 6%.\nWe expect to get the business to generate ITW caliber operating margins by the end of year five and generate after-tax ROIC in the high teens by the end of year 10.\nin welding, where we saw a meaningful pickup in demand as organic revenue improved from being down 10% year-over-year in Q3 to only being down 2% in Q4.\nOur commercial business which primarily serves smaller businesses and individual users and accounts for 35% of the revenue in this segment remained strong and grew 12% year-over-year.\nOur Industrial business showed signs of strong recovery from being down 23% in Q3 to down only 5% in Q4 as customer activity and equipment orders gained strength.\nOverall organic revenue for equipment was flat versus prior year and much improved versus a 10% decline in the third quarter.\nPolymers & Fluids delivered strong organic growth of 7% with fluids up 16% with continued strong demand in end-markets related to healthcare and hygiene.\nThe automotive aftermarket business benefited from strong retail sales with organic growth of 5% and polymers grew 4% with solid demand for MRO and automotive applications.\nConstruction continue to benefit from strong demand in the home center channel and delivered organic growth of 8% in Q4.\nGrowth was strong across all geographies with North America up 10%, double-digit growth in the residential renovation market offset by commercial construction, which represents only about 15% of North America revenue down 11%.\nEurope grew 9% and Australia/New Zealand grew 5% due to strong retail sales.\nSpecialty organic revenue was down 3% this quarter with North America down 2% and international revenue down 4%.\nAnd in the face of unprecedented challenges that included temporary customer shutdowns across wide swaths of our end markets during the year, organic revenue was down 10%.\nwe delivered operating income of $2.9 billion and highly resilient operating margin of 22.9%, only down 120 basis points year-over-year despite no major cost takeout initiatives on mandates, and with the strong contribution of 120 basis points from our Enterprise Initiatives.\nAfter-tax ROIC was 26.2% and free cash flow was $2.6 billion.\nWe did not have a need to issue any debt or commercial paper in 2020 and we ended the year with total debt to EBITDA leverage of 2.5 times, which is only slightly above our 2.25 times target.\nAt year-end, we had approximately $2.6 billion of cash and cash equivalents on hand.\nThe outcome of that exercise is a forecast of solid broad-based organic growth of 7% to 10% at the enterprise level.\nForeign currency at today's exchange rates is favorable and has 2 percentage points revenue for total revenue growth forecast of 9% to 12%.\nAt our typical incremental margins of 35% to 40%, we expect GAAP earnings per share in the range of $7.60 to $8 a share, up 18% at the midpoint.\nWe're forecasting operating margin in the range of 24% to 25%, which is an improvement of more than 150 basis points year-over-year at the midpoint.\nEnterprise Initiatives are a key driver of operating margin expansion in 2021, as are expected to contribute approximately 100 basis points.\nWe expect strong free cash flow in 2021 with a conversion rate greater than 100% of net income.\nIn line with our capital allocation, we returned surplus capital to shareholders and we are reinstating share repurchases with a plan to invest approximately $1 billion in 2021.\nWe expect our tax rate for the year to be in the range of 23% to 24%.\nAt the enterprise level, it all adds up to solid organic growth of 7% to 10%.", "summaries": "The increase is 8% when you adjust for equal number of days when historically our revenue per day has increased by 1% from Q3 to Q4.\nOverall, we delivered revenue of $3.5 billion, operating income of $883 million, an increase of 7% year-over-year, operating margin of 24.4%, free cash flow of $705 million, and GAAP earnings per share of $2.02.\nOn a year-over-year basis, North America organic revenue declined 3%, International revenue grew 1%, Europe was down 2%.\nGAAP earnings per share was $2.02 sets, up 2%, but keep in mind, the Q4 last year had $0.11of one-time gains from divestitures.\nThe outcome of that exercise is a forecast of solid broad-based organic growth of 7% to 10% at the enterprise level.\nAt our typical incremental margins of 35% to 40%, we expect GAAP earnings per share in the range of $7.60 to $8 a share, up 18% at the midpoint.\nEnterprise Initiatives are a key driver of operating margin expansion in 2021, as are expected to contribute approximately 100 basis points.\nIn line with our capital allocation, we returned surplus capital to shareholders and we are reinstating share repurchases with a plan to invest approximately $1 billion in 2021.\nAt the enterprise level, it all adds up to solid organic growth of 7% to 10%.", "labels": "0\n0\n0\n1\n1\n0\n1\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n1\n0\n1\n0\n1"}
{"doc": "Teekay Tankers generated total adjusted EBITDA of $132 million during the fourth quarter more than double the $62 million reported in the fourth quarter of 2018.\nFor the full year 2019 we generated total adjusted EBITDA of $259 million up approximately 100% from the $129 million in fiscal year 2018.\nWe reported adjusted net income of $83 million or $2.47 per share in the fourth quarter up from an adjusted net income of $14 million or $0.42 per share in the fourth quarter of 2018.\nFor the full year in 2019 we reported adjusted net income of $64 million or $1.91 per share up from an adjusted net loss of $55 million or $1.63 per share in fiscal year 2018.\nOur spot tanker rates in the fourth quarter of 2019 peaked at the highest level since 2008 and Teekay Tankers marked one of the most profitable quarters since the end of the tanker market super cycle in 2009.\nIncluding all of these items our pro forma net debt at the end of the year was reduced by $153 million or 15% since the third quarter of 2019.\nAnd our pro forma liquidity at year-end increased to approximately $260 million from $95 million at the end of last quarter.\nThe market received a significant boost in October from the removal of 26 COSCO-owned VLCCs from the trading fleet due to sanctions imposed by the United States.\nThis tightened available fleet supply further exacerbating positive underlying fundamentals and caused crude tanker spot rates to spike to the highest level since 2008.\nThis spike in spot rates also drove an increase in time charter rates and Teekay Tankers took advantage of this window of opportunity by chartering out four Suezmaxes at very attractive rates averaging $37000 per day for average durations of 12 months.\nBased on approximately 77% and 62% of spot revenue days booked Teekay Tankers' first quarter-to-date Suezmax and Aframax bookings have averaged approximately $51700 and $38100 per day respectively.\nFor our LR2 segment with approximately 65% of spot revenue days booked first quarter-to-date bookings have averaged approximately $40100 per day.\nWe also believe that scrapping could rebound this year as 13 million deadweight ton of tankers reaches 20 years of age.\nOn an annualized basis the rates we achieved in the fourth quarter of 2019 would result in over $320 million of free cash flow or over $9.5 per share.\nThis is compelling relative to our closing share price yesterday of $12.66 per share and equates to a free cash flow yield of approximately 75%.\nFrom an earnings per share perspective using a similar methodology it would translate into $8 per share which can be seen in the graph on the right.\nThis equates to a compelling 1.6 times price to earnings ratio.\nStarting with the graph on the top of the page we provide our debt repayment profile before and after the recently secured five year $533 million revolving credit facility refinancing which was approximately two times oversubscribed.\nThis attractively priced refinancing at LIBOR plus 240 basis points reduces our 2021 balloon maturities from approximately $390 million to approximately $70 million with our next balloon maturity coming at the end of 2024.\nIncluding this refinancing and our previously mentioned asset sales our pro forma December 31 liquidity is $260 million compared to $95 million at the end of the third quarter.\nOur balance sheet leverage has also improved with net debt to capitalization decreasing by 5% from 51% at the end of the third quarter to 46% on a pro forma basis at December 31.\nTaking into account cash flows earned from the improved tanker market and proceeds from agreed asset sales our pro forma net debt at the end of the year stands at $844 million a decrease of over $200 million or approximately 20% since the end of 2018 and a decrease of $150 million or approximately 15% from the third quarter of 2019.\nOn the asset side we have opportunistically agreed to sell more than $100 million of assets further accelerating our debt reduction and exiting a noncore business.\nAnd lastly on IMO 2020 I am pleased that we have had a very smooth transition to burning lower sulfur more environmentally friendly fuels which we attribute to our extensive preparations over the past three years and to having secured supply contracts with quality fuel suppliers covering approximately 75% of our requirements.", "summaries": "We reported adjusted net income of $83 million or $2.47 per share in the fourth quarter up from an adjusted net income of $14 million or $0.42 per share in the fourth quarter of 2018.", "labels": "0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "For illustration, our sales on a weekly run rate basis and excluding favorable currency translation were up 8% from the prior year.\nOur confidence in the situation improving is evidenced by our decision to give an early indication of our anticipated sales for fiscal 2022 of over 10% organic growth.\nLast quarter we reported that sales into EV applications were over 9% of consolidated sales and were expected to be in the high single-digits for fiscal 2021.\nThis quarter, EV sales were over 12% of consolidated sales and we now expect that number to be over 10% for fiscal 2021.\nWe generated over $80 million in free cash flow and significantly reduced our net debt in the quarter.\nThe debt reduction was driven by the full repayment of our $100 million revolver draw from March of last year.\nThe awards identified here represent a cross-section of the business wins in the quarter and represent over $50 million in annual business.\nLastly, we won two sizable awards for User Interface programs with international automotive OEMs. For the first three quarters of the fiscal year, Methode has booked orders of over $150 million in potential annual sales.\nWe are also pleased to protect that our sales from any single customer is expected to drop below 25% from a high of approximately 50% four years ago, all while we continue to grow our top line.\nThe additional content in EV could range from 20% to over 100% of our current content on an internal combustion vehicle.\nPlease note that the third quarter of fiscal year '21 contains 13 work weeks, whereas the third quarter of fiscal year '20 had 14 work weeks.\nThird quarter sales were $295.3 million in fiscal year '21 compared to $285.9 million in fiscal year '20, an increase of $9.4 million or 3.3%.\nThe year-over-year quarterly comparisons included a favorable foreign currency impact on sales of $9.7 million in the current quarter.\nOn a weekly run rate basis and excluding the foreign currency impact, net sales were up a solid 7.6%, compared to the same quarter of fiscal year '20.\nThird quarter net income decreased $9.3 million to $31.9 million or $0.83 per diluted share from $41.2 million or $1.09 per diluted share in the same period last year.\nAlso contributing to the decline was lower other income of $2.5 million and higher income tax expense of $1.8 million.\nFiscal year '21, third quarter margins were 24.6% as compared to 27.7% in the third quarter of fiscal year '20.\nThird quarter selling and administrative expenses as a percentage of sales decreased 50 basis points year-over-year to 11% compared to 11.5% in the fiscal year '20 third quarter.\nRegarding our restructuring activities the third quarter expense was $700,000 and the year-to-date third quarter expense was $8.3 million.\nThe company currently expects an additional restructuring expense of $200,000 in the remainder of the fiscal year, resulting from the previous quarters actions.\nFirst, other income net was lower by $2.5 million, mainly due to lower government assistance between the comparable quarters.\nSecond, income tax expense in the third quarter of fiscal year '21 was $4.6 million or 12.6% as compared to a tax expense of $2.8 million or an effective tax rate of 6.4% in the third quarter of fiscal year '20.\nThe 12.6% effective tax rate for the quarter was less than the estimated tax rate due to the benefits of some tax planning enacted in the third quarter, which was retroactively applied to the first quarter of the current fiscal year.\nWe expect to benefit from the third quarter tax planning in the current fourth quarter, which will result in an estimated fourth quarter effective tax rate of 15%, down from the previously guided rate of 17%.\nFiscal year '21 third quarter EBITDA was $51.3 million versus $58.7 million in the same period last year.\nWe reduced gross debt by $103 million in the third quarter, resulting from the full repayment of the $100 million precautionary draw we initiated in March 2020.\nSince our acquisition of Grakon in September 2018, we have reduced gross debt by $113 million.\nNet debt, a non-GAAP financial measure decreased by $108.9 million in the third quarter of the fiscal year '21 as compared to the fiscal year '20 year-end from $134.8 million to $25.9 million.\nWe ended the quarter with $218.7 million in cash.\nOur debt to trailing 12 month EBITDA ratio, which is used for our bank covenants is approximately 1.3.\nOur net debt to trailing 12 months EBITDA ratio was 0.1.\nFor the fiscal year '21 third quarter, free cash flow was $82.8 million as compared to $6.7 million in the third quarter of fiscal '20.\nThe strong free cash flow performance was driven by an approximately $40 million favorable change in working capital in the quarter.\nIn the third quarter of fiscal year '21, we invested approximately $4.9 million in capex as compared to $8.1 million in the third quarter of fiscal year '20.\nThe revenue range for the fourth quarter is between $270 million and $300 million.\nDiluted earnings per share range is between $0.60 and $0.82.", "summaries": "Third quarter sales were $295.3 million in fiscal year '21 compared to $285.9 million in fiscal year '20, an increase of $9.4 million or 3.3%.\nThird quarter net income decreased $9.3 million to $31.9 million or $0.83 per diluted share from $41.2 million or $1.09 per diluted share in the same period last year.\nThe revenue range for the fourth quarter is between $270 million and $300 million.\nDiluted earnings per share range is between $0.60 and $0.82.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1"}
{"doc": "We finished 2020 in very strong fashion with our highest level of quarterly organic sales growth in over 10 years and our highest annual organic sales growth since the depths of the financial crisis.\nOur net sales grew 7.5% in the quarter.\nOrganic sales growth of 8.5% was driven by 5% organic volume growth and a 3.5% increase in prices.\nThe impact of acquisitions added an additional 100 basis points to volume growth, while foreign exchange was a 2% headwind.\nIn the fourth quarter, our gross profit margin was 61.1% on both a GAAP basis where we were up 100 basis points year over year and a base business basis where we were up 90 basis points.\nFor the fourth quarter, pricing was 130 basis points favorable to gross margin while raw materials were a 320 basis-point headwind driven by increases in the cost of raw materials like fats and oils and the transactional impact from foreign exchange.\nProductivity was a 280 basis-point benefit.\nOn a GAAP basis, our SG&A was up 260 basis points as a percent of sales for the fourth quarter and 100 basis points for the full year.\nOn the base business basis, in the fourth quarter, our SG&A was up 310 basis points on a percent of sales basis.\nThis was primarily driven by a 210 basis-point increase in advertising to sales as we drove strong activation on brand building, innovation, and e-commerce.\nFor the full year on a base business basis, our SG&A ratio was up 150 basis points driven primarily by a 100 basis-point increase in advertising to sales and increased logistics cost.\nFor the fourth quarter on a GAAP basis, our operating profit was up 4% year over year, while it was up 3% on a base business basis.\nOur earnings per share was flat on a GAAP basis and up 5% on a base business basis.\nFor the full year, our earnings per share growth was 14% on a GAAP basis and 8% on a base business basis.\nWe delivered 18% growth in free cash flow for the full year.\nNorth America delivered 10% net sales and 8.5% organic sales growth in the quarter, driven by premium innovation and increased consumption in categories impacted by the COVID pandemic.\nOrganic sales growth of 4.5% was driven by volume growth across all three segments; oral care, personal care, and home care, and in every hub.\nWe delivered 7% net sales and 5% organic sales growth in Asia Pacific led by volume growth across our biggest hubs; Greater China, India, the Philippines, and South Pacific.\nAfrica/Eurasia net sales declined 1.5% due to significant foreign exchange headwinds as the division delivered organic sales growth across all three categories and in every hub.\nWe expect organic sales growth to be within our 3% to 5% long-term target range.\nWe expect net sales to be up 4% to 7%.\nWe expect our gross profit margin to be up year over year in 2021 despite difficult comparisons given our performance in 2020, increases in raw materials, and the continuing uncertainty associated with COVID.\nOur tax rate is expected to be between 23.5% to 24.5% on both the GAAP and base business basis.\nSo now I'll provide some thoughts on why I believe what we did last year leaves us well positioned to continue our growth journey in 2021 and beyond.\nYou can see this in our 2020 results where we delivered 8% earnings-per-share growth despite negative foreign exchange, while increasing brand building and investing in capabilities across the entire organization.\nAnd all this paid off in more than 50% online growth in the fourth quarter and we'll exit the year with e-commerce at a double-digit run rate as a percentage of total sales.", "summaries": "We expect organic sales growth to be within our 3% to 5% long-term target range.\nWe expect net sales to be up 4% to 7%.\nWe expect our gross profit margin to be up year over year in 2021 despite difficult comparisons given our performance in 2020, increases in raw materials, and the continuing uncertainty associated with COVID.\nSo now I'll provide some thoughts on why I believe what we did last year leaves us well positioned to continue our growth journey in 2021 and beyond.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n1\n0\n1\n0\n0"}
{"doc": "Pass product sales for the North American ski season increased approximately 47% in units and approximately 21% in sales dollars through December 5, 2021 as compared to the period in the prior year through December 6, 2020, without deducting for the value of any redeemed credits provided to certain North American pass holders in the prior period.\nPass product sales through December 5, 2021 for the 2021-2022 North American ski season increased approximately 76% in units and approximately 45% in sales dollars as compared to the sales for the 2019-2020 North American ski season through December 8, 2019, with pass product sales adjusted to include peak resorts pass sales in both periods.\nPass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.78 between the Canadian dollar and the U.S. dollar in all periods for Whistler Blackcomb pass sales.\nDriven in part by the 20% price reduction in passes for the 2021-2022 season, we expect that the total number of guests on all advanced commitment products this year will exceed 2.1 million, including all pass products for our North American and Australian resorts, representing an increase of approximately 700,000 pass holders from last year and an increase of approximately 900,000 pass holders from two years ago.\nCompared to the period ended December 6, 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.\nWe significantly outperformed our original expectations for pass sales relative to the estimates we provided when we announced the 20% price decrease in our passes, which was driven by the significant increase in new pass holders and guests trading up to higher-value passes.\nWe also added a new four-person high-speed lift at Breckenridge to serve the popular Peak 7, replaced the Peru lift at Keystone with a six-person high-speed chairlift, and replaced the Peachtree lift at Crested Butte with a new three-person fixed-grip lift.\nNet loss attributable to Vail Resorts was $139.3 million for the first quarter of fiscal 2022, compared to a net loss attributable to Vail Resorts of $153.8 million in the same period in the prior year.\nResort reported EBITDA was a loss of $108.4 million in the first fiscal quarter, which compares to resort reported EBITDA loss of $94.8 million in the same period in the prior year.\nAdditionally, the prior-year period included the recognition of $15.4 million of lift revenue associated with the expiration of the credit offers that were made to 2019-2020 pass product holders in connection with COVID-19-related closures.\nOur total cash and revolver availability as of October 31, 2021 was approximately $2.1 billion with $1.5 billion of cash on hand, $417 million of revolver availability under the Vail Holdings Credit Agreement, and $220 million of revolver availability under the Whistler Blackcomb Credit Agreement.\nAs of October 31, 2021, our net debt was 2.6 times trailing 12 months total reported EBITDA, and we exited the temporary waiver period under the Vail Holdings Credit Agreement, effective October 31, 2021.\nThe dividend will be $0.88 per share of common stock and will be payable on January 11, 2022 to shareholders of record on December 28, 2021.\nThis dividend payment equates to 50% of pre-pandemic levels, consistent with our prior quarter cash dividend, 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.\nOur guidance includes an estimated $2 million of acquisition-related expenses specific to Seven Springs but does not include any estimate for the closing costs, operating results, or integration expense associated with the Seven Springs acquisition, which is expected to close later this winter.\nWe will be acquiring Seven Springs for a purchase price of approximately $125 million, subject to certain adjustments.\nWe estimate that Seven Springs will generate incremental annual EBITDA in excess of $15 million in the company's fiscal year ending July 31, 2023, which includes approximately $5 million for the 418-room Slopeside Hotel and its associated conference facilities and lodging operations.\nThe ongoing capital expenditures associated with the Seven Springs operations are expected to be approximately $3 million per year.\nAs announced in September, we are excited to be proceeding with our ambitious capital investment plan for calendar year 2022 of approximately $318 million to $328 million 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 advanced commitment products.\nThe plan includes the installation of 21 new or replacement lifts across 14 of our resorts and a transformational lift-served terrain expansion at Keystone.\nIn addition, we are excited to announce a $3.6 million capital investment plan in Vail Resorts' Commitment to Zero initiative, including targeted investments in high-efficiency snowmaking, heating and cooling infrastructure, and lighting to further improve our energy efficiency and make meaningful progress toward our 2030 goal.\nWe expect our capital plan for calendar 2022 to be approximately $315 million to $325 million, excluding approximately $3 million of one-time items associated with real-estate-related capital, and excluding any capital expenditures associated with the Seven Springs acquisition, which remains subject to closing.\nThis 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.\nIncluding one-time real-estate-related capital, our total capital plan is expected to be approximately $318 million to $328 million.\nI am especially grateful to the more than 55,000 employees who make Vail Resorts so special.", "summaries": "Resort reported EBITDA was a loss of $108.4 million in the first fiscal quarter, which compares to resort reported EBITDA loss of $94.8 million in the same period in the prior year.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "In the third quarter, systemwide RevPAR grew 99% year-over-year.\nCompared to 2019, RevPAR was down roughly 19%, improving 17 percentage points versus the second quarter, with systemwide rates down just 2.5% versus 2019.\nAdjusted EBITDA totaled approximately $519 million, up 132% year-over-year and down 14% versus 2019.\nIn the quarter, business transient room nights were roughly 75% of prior peak levels.\nFor the quarter, group RevPAR was approximately 60% of 2019 levels, improving 21 percentage points from the second quarter.\nOverall systemwide RevPAR versus 2019 peaked in July at 85% with rates just shy of prior peaks.\nBoth August and September RevPAR achieved roughly 80% of 2019 levels, driven by continued strength in leisure and upticks in business travel post-Labor Day as offices and schools reopen.\nThese trends improved modestly into October with month-to-date RevPAR at approximately 84% of 2019 levels and rates in the U.S. nearly back to prior peaks.\nRoughly 40% of systemwide hotels have exceeded 2019 RevPAR levels in October month-to-date.\nAdditionally, bookings for all future periods are just 8% below 2019.\nTSA reported third quarter travel numbers were nearly 80% of 2019 with demand picking up further following the announcements of the U.S. border reopening and the lift of the international travel ban for vaccinated travelers.\nAdditionally, studies show that nearly 70% of U.S. businesses are back on the road, up 28 points from the end of the second quarter.\nWith roughly 80% of our typical corporate mix coming from small- and medium-sized businesses and with the lagging recovery of larger corporate travel, we've taken the opportunity to continue our work from before COVID to further increase our focus on this segment of demand.\nWe added nearly 100 hotels and 15,000 rooms across all major regions and delivered strong net unit growth of 6.6% in the third quarter.\nConversions represented roughly 1/3 of openings.\nYear-to-date, we've added more than 42,000 net rooms globally, higher than all our major branded competitors.\nTo date, we have signed more than 100 deals to develop Hilton Garden properties in China, strengthening our confidence in the long-term growth of our focused service brands and our ability to cater to a growing middle class.\nFollowing our recently announced exclusive license agreement with Country Garden, we were thrilled to open our first Home2 Suites in China with plans to grow to more than 1,000 properties.\nWe also celebrated the opening of our 500th Home2 Suites following the brand's launch just 10 years ago, making it one of the fastest-growing brands in industry history and boasting the industry's largest pipeline in North America with more than 400 hotels in development.\nIn the quarter, we signed nearly 24,000 rooms, up approximately 40% year-over-year, driven by strength in the Americas and Asia Pacific regions.\nWith approximately 404,000 rooms in development, more than half of which are under construction, we expect positive development trends to continue, driven by both new development and conversion opportunities.\nFor the full year, we expect net unit growth in the 5% to 5.5% range, and we continue to expect mid-single-digit growth for the next several years.\nWe continue to focus on new opportunities to further engage our 123 million Honors members and are thrilled to see engagement is nearly back to 2019 levels.\nIn the quarter, membership grew 11% year-over-year.\nHonors members accounted for 59% of occupancy with the U.S. at 66%, just two points below 2019 levels.\nDuring the pandemic, approximately 23 million U.S. households brought home a new pet, including my own.\nIn the coming months, Homewood Suites will join Home2 in becoming 100% pet-friendly in the U.S. with plans for all limited service brands to be pet-friendly by the first quarter of next year.\nDuring the quarter, systemwide RevPAR grew 98.7% versus the prior year on a comparable and currency-neutral basis as the recovery continued to accelerate, driven by strong leisure demand, particularly in the U.S. and across Europe.\nAs Chris mentioned, systemwide RevPAR was down 18.8% compared to 2019.\nAdjusted EBITDA was $519 million in the third quarter, up 132% year-over-year.\nManagement and franchise fees grew 93%, driven by strong RevPAR improvement and Honors license fees.\nFor the quarter, diluted earnings per share, adjusted for special items, was $0.78.\nThird quarter comparable U.S. RevPAR grew 105% year-over-year and was down 14% versus 2019.\nU.S. occupancy averaged nearly 70% for the quarter with overall rate largely in line with 2019 levels.\nIn the Americas outside the U.S., third quarter RevPAR increased 168% year-over-year and was down 30% versus 2019.\nIn Europe, RevPAR grew 142% year-over-year and was down 35% versus 2019.\nIn the Middle East and Africa region, RevPAR increased 110% year-over-year and was down 29% versus 2019.\nIn the Asia Pacific region, third quarter RevPAR grew 5% year-over-year and was down 41% versus 2019.\nRevPAR in China was down 25% as compared to 2019 as a rise in COVID cases led to reimposed restrictions and lockdowns across the country.\nChina has recovered steadily into October with occupancy nearing 60% for the month.\nAs Chris mentioned, in the third quarter, we grew net unit 6.6%.\nOur pipeline grew sequentially, totaling 404,000 rooms at the end of the quarter with 62% of pipeline rooms located outside the U.S. Development activity continues to gain momentum across the globe as the recovery progresses, a testament to the confidence owners and developers have in our strong commercial engines and industry-leading brands.\nFor the full year, we now expect signings to increase in the mid- to high teens range year-over-year and expect net unit growth of 5% to 5.5%.\nWe ended the quarter with $8.9 billion of long-term debt and $1.4 billion in total cash and cash equivalents.\nWe're proud of the financial flexibility we demonstrated over the past 18 months.", "summaries": "During the quarter, systemwide RevPAR grew 98.7% versus the prior year on a comparable and currency-neutral basis as the recovery continued to accelerate, driven by strong leisure demand, particularly in the U.S. and across Europe.\nFor the quarter, diluted earnings per share, adjusted for special items, was $0.78.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Some of the key initiatives include reorganizing to become more nimble while also reducing our cost structure by $200 million; building concert streaming and direct-to-consumer businesses to expand our revenue streams; advancing our technology initiatives globally while accelerating the shift to digital tickets to meet changing needs of fans, venues and artists; and reinforcing our balance sheet to endure this period while maintaining a strong position to build our business for the future and act on opportunities as we identify them, such as our recent acquisition of the streaming platform, Veeps; and continued pipeline bolt-on acquisitions throughout the globe.\nThe $2.4 trillion projected surplus in savings in the U.S. alone by June is a key indicator of consumer spending potential.\nAt the same time, surveys demonstrate the high demand for concerts globally with 95% of fans likely to attend a show when restrictions are lifted.\nThis is proving out in fan behavior as well with 83% of fans continuing to hold on to their tickets with rescheduled shows.\nGiven the limited touring activity in 2020 and '21, the pipeline for 2022 is much stronger than usual, with almost twice as many major touring artists on cycle in 2022 in a typical year, about 45 artists versus the usual 25.\nAnd there remains plenty of scheduling availability at arenas, amphitheaters and stadiums to accommodate these additional tours, with over 2/3 of these venue nights unused by sporting events or major concerts in a typical year.\nAs part of this, we further reduced discretionary spending by another $50 million and closed 2020 with over $950 million in lower costs.\nWe also reduced our cash usage by $1.65 billion relative to our pre-COVID plans, $150 million more than we were projecting last quarter.\nOur AOI loss for the quarter was $244 million, which consisted of $290 million in operational fixed costs and $46 million of contribution margin, which included $96 million contribution from operations along with various onetime items.\nAs we pointed out last quarter, this contribution margin from operations includes our sponsorship business, where we've been able to maintain close to 90% of the commitments that were in place at the end of February last year.\nHalf of this sponsorship moved into 2021, while the portion we retained in 2020 was repurposed in other assets, including streaming concerts.\nWe ended the fourth quarter with $643 million in free cash, which increased to $1.1 billion in early January with our debt raise.\nThis, along with over $950 million of available debt capacity, gives us $2 billion in readily available liquidity.\nOur total free cash usage in the quarter was $308 million or $103 million per month.\nWe had $97 million per month average in operational burn plus another $44 million per month of nonoperational cash costs to get us to $142 million average per month in gross burn.\nAnd then we had $39 million per month in cash contribution margin and ended up with a total effective cash burn of $103 million per month.\nThe global refund rate for Live Nation concerts that are rescheduled and are in or have gone through a refund window or windows was unchanged from the prior quarter at 17% through the end of Q4.\nBut for festivals where fans could retain their tickets for next year's show, 63% of fans are doing so.\nOn deferred revenue, at the end of the fourth quarter, deferred revenue for events in the next 12 months was $1.5 billion versus the $1.4 billion we projected at the end of Q3, higher due to $100 million in ticket sales during the quarter.", "summaries": "Half of this sponsorship moved into 2021, while the portion we retained in 2020 was repurposed in other assets, including streaming concerts.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "Non-GAAP earnings per share of $0.40 was up 100% from the $0.20 reported in second quarter 2020.\nWe generated 22% sales growth and our network ramps up to meet that demand.\nOn a year-over-year basis, total revenue growth exceeded 50% in the quarter and operating profit more than doubled, with operating margins expanding more than 500 basis points from second quarter 2020 levels.\nFrom a channel perspective, new construction revenue was up more than 30% from year ago levels and remodel retrofit sales increased nearly 90% versus the prior year quarter.\nOrders were equally strong in the quarter, growing 53% year-over-year.\nAs a reminder in new construction two-thirds of homebuyers see having a fireplace is a must-have feature of the home, but less than 40% buy one.\nAnd on the remodel retrofit side, we estimate that only about 3% of all remodeling projects involve a fireplace.\nOn an organic basis, net sales in this segment increased 9% and orders grew 32% versus the prior year period.\nSecond quarter non-GAAP operating income grew 21% year-over-year despite the pressures discussed earlier.\nOur small-to-mid sized customers continue to outperform as does demand in the public sector with orders in our businesses focused on these markets increasing 55% year-over-year in the second quarter, putting us back to pre-pandemic levels.\nIn addition, the North American contracting market continues to recover with orders in our contract businesses up more than 23% in the second quarter year-over-year.\nAnd in the past five weeks, contract orders were up approximately 30% versus the prior year period.\nYear-to-date orders are up over 40% with record bookings in May and June.\nOver 600 dealer sales reps are already using the app.\nWe expect third quarter revenue to grow in the mid 20% range compared to the prior year quarter.\nBecause of our seasonality, this outlook implies third quarter volume will be substantially above second quarter levels, the sequential growth in the mid 20% range.\nAs a result, we expect labor and supply chain constraints will limit third quarter revenue growth versus the prior year quarter by 4 to 6 percentage points.\nWe can solve these constraints over time, we are capturing demand and expect that 4 to 6 percentage points of growth to flow to subsequent quarters.\nRecent order trends, new home construction activity, the outlook for remodel and retrofit demand and expected benefits tied to our multiple growth initiatives combine to suggest that revenue growth rate in the mid to high 20% range compared to the prior year quarter.\nStrong second quarter order trends, our growing backlog and a low prior year comparable adjusted growth rate including acquisition impacts in the low to mid 20% range on a year-over-year basis.\nQuarter ending debt levels were approximately $179 million, modestly higher than last quarter and down slightly from the second quarter of last year.\nThe gross leverage ratio at the end of the second quarter of 2021 was approximately 0.9, unchanged from last quarter.\nOn sequential basis, while our leverage ratio was unchanged, cash increased by more than $24 million.", "summaries": "Non-GAAP earnings per share of $0.40 was up 100% from the $0.20 reported in second quarter 2020.\nWe expect third quarter revenue to grow in the mid 20% range compared to the prior year quarter.\nBecause of our seasonality, this outlook implies third quarter volume will be substantially above second quarter levels, the sequential growth in the mid 20% range.\nRecent order trends, new home construction activity, the outlook for remodel and retrofit demand and expected benefits tied to our multiple growth initiatives combine to suggest that revenue growth rate in the mid to high 20% range compared to the prior year quarter.\nStrong second quarter order trends, our growing backlog and a low prior year comparable adjusted growth rate including acquisition impacts in the low to mid 20% range on a year-over-year basis.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n1\n0\n0\n1\n1\n0\n0\n0"}
{"doc": "During the first quarter, Central Pacific stepped up again to support our small business community by originating over 3,600 PPP loans, totaling over $290 million.\nOur financial results for the first quarter were very strong with a highest quarterly pre-tax income since 2007.\nBased on our strong results and financial position, our Board of Directors increased our quarterly cash dividend to $0.24 per share.\nOur unemployment rate declined to 9% in March, and while so elevated, is significantly down from its peak of 22% in April last year.\nVisitor arrivals have recently been averaging nearly 20,000 per day or about two third of pre-pandemic levels.\nReal estate in Hawaii continues to be extremely strong with the medium price for a single-family home in Oahu hitting our record high of $950,000 in March.\nOur vaccination progress is also quite good with over 30% of our residents fully vaccinated, currently putting us the eighth high state in the nation.\nIn the first quarter, our total loan portfolio increased by $174 million, primarily due to the new round of PPP loan originations.\nIn Q1, we processed over 3,600 PPP loans totaling over $290 million, which represented over 50% of the loans we funded in 2020.\nConcurrently, our team continue to assist our existing PPP borrowers to apply for forgiveness from the SBA, resulting in approximately $100 million in paydowns in Q1.\nTo date, inclusive of forgiveness applications processed in 2020 and through March 31st, we have processed over 3,600 forgiveness applications, resulting in $234 million in PPP loan paydowns.\nTo date, we have expanded banking relationships with approximately 20% of the new to CPBs small business customers.\nTotal deposits during the first quarter increased by $410 million or about 8% sequential quarter, which was supported by PPP loan fundings and other government stimulus.\nAdditionally, our cost of total deposits declined by 3 basis points from the prior quarter and is now down just to 6 basis points.\nAt March 31st, the loan portfolio totaled $5.1 billion with 53% consumer and 47% commercial.\nApproximately 78% of the total loan portfolio, excluding PPP balances is real estate secured.\nAt quarter end, the total balance of loans on payment deferrals declined significantly by $80.7 million sequential quarter to $39.5 million or 0.9% of the total loan portfolio, excluding PPP balances.\nTotal loans on payment deferrals further declined to $32.5 million as of April 21st.\nDuring the quarter, criticized loans declined by $10.5 million sequential quarter to $181.7 million or 4% of the total loan portfolio, excluding PPP balances.\nSpecial mentioned loans declined by $14.7 million to $127.8 million or 2.8% of the total loan portfolio, excluding PPP balances, and classified loans increased by $4.2 million to $53.9 million or 1.2% of the total loan portfolio, excluding PPP balances.\nWe continue to monitor our borrowers in the high-risk industries of food service and accommodation or $44 million is rated special mentioned, an $8 million is rated classified.\nApproximately 27% of total special mentioned balances and 8% of total classified balances also received PPP loan.\nAdditional details on our high-risk industry loans and loans rated special mention and classified can be found on Slides 11, 13 and 14.\nNet income for the first quarter was $18 million or $0.64 per diluted share.\nReturn on average assets in the first quarter was 1.07% and return on average equity was 13.07%.\nNet interest income for the first quarter was $49.8 million, which decreased from the prior quarter, primarily due to less recognition of PPP fee income due to lower forgiveness.\nNet interest income included $5.2 million in PPP net interest income and net loan fees compared to $6.3 million in the prior quarter.\nAt March 31, unearned net PPP fees for rounds one and two was $5.8 million and net fees for round three was $14.5 billion.\nThe net interest margin decreased to 3.19% in the first quarter compared to 3.32% in the prior quarter.\nThe net interest margin normalized for PPP was 3.12% in the first quarter compared to 3.17% in the prior quarter.\nFirst quarter other operating income totaled $10.7 million compared to 14.1 million in the prior quarter.\nThe increase was primarily due to lower mortgage banking income of $2.5 million and lower income from bank-owned life insurance of $0.4 million.\nOther operating expense for the first quarter was $37.8 million, which was a decrease of $6.8 million from carried through the prior quarter.\nThe prior quarter included one-time expenses totaling $5.9 million.\nAdditionally, in the current quarter, $0.8 million in PPP loan origination cost were deferred from salaries and benefits.\nThe efficiency ratio decreased to 62.5% in the first quarter compared to 68.2% in the prior quarter, primarily due to the one-time expenses in the prior quarter.\nNet charge-offs in the first quarter totaled $0.7 million compared to net charge-offs of $1.8 million in the prior quarter.\nAt March 31st, our allowance for credit losses was $81.6 million or 1.80% of outstanding loans excluding the PPP loans.\nThis compares to 1.83% as of the prior quarter end.\nIn the first quarter, we reported a $0.8 million credit to the provision for credit losses due to improvements in the economic forecast utilized in our CECL methodology.\nThe effective tax rate was 23.2% in the first quarter, a slight decline from the prior quarter as we recognized the benefit for capital loss carry-backs.\nGoing forward, we expect the effective tax rate to be in the 24% to 26% range.\nFinally, as Paul noted earlier, our Board of Directors declared a quarterly cash dividend of $0.24 per share, which was an increase from the $0.23 in the prior quarter.", "summaries": "Net income for the first quarter was $18 million or $0.64 per diluted share.\nNet interest income for the first quarter was $49.8 million, which decreased from the prior quarter, primarily due to less recognition of PPP fee income due to lower forgiveness.", "labels": "0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}
{"doc": "2020 was the year that our flagship Comfort brand returned to unit growth after its successful transformation, increasing its domestic system size by 2%.\n2020 was also the year our extended stay segment rapidly expanded by 44 units to nearly 450 domestic hotels and the domestic pipeline for that segment alone reached over 315 hotels.\nThe segment now represents nearly 8% of our total domestic portfolio and strong developer interest reaffirms that our strategic commitment and continued investments in this highly cycle-resilient segment are driving a competitive advantage.\nAnd finally, 2020 was a year of continued growth for our upscale portfolio, highlighted by an 8% growth of Cambria Hotels.\nThe brand now has a pipeline of nearly 80 hotels and is expected to accelerate its unit growth in 2021.\nOur domestic, systemwide year-over-year RevPAR change surpassed the industry by nearly 17 percentage points for the full year, declining 30.7% from 2019.\nSince the onset of the pandemic in mid-March, our performance has achieved sequential quarter-over-quarter improvement with our fourth quarter domestic systemwide RevPAR declining 25.1% from the same quarter of 2019.\nIn 2020 Choice Hotels grew RevPAR faster than our local competitors, increasing RevPAR index by over 5 percentage points through notable lifts in weekday and weekend RevPAR index.\nTurning to 2021, we expect our momentum to continue into the first quarter, allowing Choice Hotels to further outperform the industry in the current environment.\nMore specifically, our website contribution increased by 150 basis points, ending the year with the three strongest months in 2020 while our loyalty program increased its contribution by 280 basis points quarter-over-quarter.\nThese results have helped drive RevPAR index share gains of over 600 basis points in the fourth quarter versus our local competitors, up significantly across all location types as reported by STR.\nIn the past 46 consecutive weeks through mid-February, we've observed significant RevPAR share gains against the competition, giving us further optimism about our future revenue trajectory.\nWe're especially pleased with the performance of our Comfort portfolio where our efforts to transform the brand have led to RevPAR index gains versus its local competitors of nearly 9 percentage points and a RevPAR change that was over 10 percentage points more favorable than the upper mid-scale chain scale in the fourth quarter.\nThe brand now has over 50 domestic hotels open or in the pipeline.\nOur WoodSpring Suites brand achieved an average occupancy rate of 72% for full year 2020 and experienced year-over-year RevPAR growth of 2% in the month of December, a truly remarkable achievement given the current environment.\nThe brand's pipeline continues to expand and reached 150 domestic hotels at the end of 2020.\nAt the same time our Suburban extended stay brand experienced year-over-year occupancy gains in the fourth quarter and an over 40% increase in franchise agreements activity for the full year.\nOur MainStay Suites mid-scale extended stay brand captured more than 20 percentage points in RevPAR index gains versus its local competitors both in the fourth quarter and full year and developer interest is growing.\nMost recently we signed and on-boarded the largest multi-unit transaction in MainStay's history, 15 units which significantly increased the brand's presence in the segment.\nLast year alone, the brand's portfolio expanded to 90 domestic hotels open and over 20% increase year-over-year and its pipeline has swelled to more than 140 domestic properties.\nFor full year 2020 Choice Hotels awarded nearly 110 extended stay franchise agreements, validating our strategic focus on this segment for both new construction and conversion opportunities.\nI'd now like to turn to our upscale portfolio whose choicehotels.com contribution increased by nearly 500 basis points year-over-year in the fourth quarter and marked the strongest quarterly revenue share in 2020.\nOur upscale Cambria Hotels brand continues its ongoing momentum, growing its portfolio size by 8% and its pipeline to nearly 80 domestic hotels, 19 of which were already under construction at year-end.\nDeveloper interest in the brand remains high with 16 franchise agreements executed for the full year, including one-third of those awarded in the fourth quarter.\nWith nearly 300 hotels open around the globe Ascend Hotels outperformed the upscale segment in year-over-year fourth quarter RevPAR change by over 20 percentage points.\nThe brand also achieved RevPAR index gains of nearly 13 percentage points against its local competitors for the full year, further enhancing the brand's attractiveness to developers looking for a smart conversion opportunity.\nFor full year 2020 we awarded 427 new domestic franchise agreements of which over 70% were for conversion hotels.\nIn the fourth quarter alone, we executed 195 domestic agreements, of which over 70% were for conversions.\nIn fact, nearly 30% of total domestic franchise agreements we awarded in 2020 were for new construction contracts.\nWe recently announced the further expansion of our attractive upscale platform with the addition of 22 Penn National Gaming casino resort properties, representing nearly 7,000 rooms joining our Ascend Hotel Collection.\nThis strategic agreement will offer more than 47 million Choice Privileges members the opportunity to earn and redeem points at these Penn properties by booking their stay directly on choicehotels.com.\nThroughout 2020 we conducted 49,000 individual consultations with hotel owners and operators that helped our franchisees remain open and continue serving guests.\nTaking a closer look at our results, for full year 2020 total revenues, excluding marketing and reservation system fees, were $371.5 million, $88 million of which was generated in the fourth quarter and adjusted EBITDA totaled $241.1 million, $54.7 million of which was generated in the fourth quarter.\nAnd our adjusted EBITDA margin for full year 2020 was 65%.\nAs a result, our adjusted earnings per share were $2.22 and $0.51 for full year 2020 and the fourth quarter respectively.\nOur domestic systemwide RevPAR outperformed the overall industry by nearly 17 percentage points for the full year, declining 30.7% from the prior year.\nOur fourth quarter 2020 domestic systemwide RevPAR surpassed the industry by nearly 26 percentage points, declining 25.1% from the same period of the prior year and improved by 370 basis points from the third quarter.\nIn addition, our results exceeded the primary chain scale segments in which we compete as reported by STR by over 5 percentage points for full year 2020 and nearly 8 percentage points for the fourth quarter.\nSpecifically, our upscale portfolio increased relative to its local competitive set by over 12 percentage points.\nOur extended stay portfolio outperformed the industry's RevPAR change by an impressive 49 percentage points and grew versus its local competitive sets by 14 percentage points.\nAnd finally the RevPAR change for our mid-scale and upper mid-scale portfolio exceeded these segments by 10 percentage points.\nFor full-year 2020 all of our select service brands achieved significant RevPAR index gains versus their local competitors with each of our upscale and extended stay brands experiencing share gains of more than 10 percentage points.\nIn fact, we were able to increase our overall RevPAR index against local competitors by over 600 basis points in the fourth quarter through notable lifts in both continued occupancy gains and our franchisees' ability to maintain rate integrity.\nMore specifically, our average daily rate index increased 2.4 percentage points.\nAcross our more revenue intense brands in the upscale, extended stay and mid-scale segments we observed stronger unit growth, increasing the number of hotels by 1.8% year-over-year.\nWe're especially pleased to report that following the completion of its brand transformation the Comfort brand family returned to growth in 2020, increasing the number of domestic units by 2% year-over-year.\nThe brand reached over 260 hotels in its domestic pipeline one quarter of which are hotels awaiting conversion, which we believe will fuel the brand's growth in the near term.\nThe Company's domestic effective royalty rate increased 7 basis points year-over-year to 4.98% in the fourth quarter and grew 8 basis points for full year 2020 compared to the prior year.\nIn fact, we reduced our net debt by approximately $50 million during the fourth quarter and are pleased to report cash flow from operations of over $115 million for 2020, over $45 million of which was generated in the fourth quarter alone despite the historically lower seasonal demand environment.\nAt the end of last year, the Company had approximately $835 million in cash and available borrowing capacity through its revolving credit facility.\nOur strong results relative to the industry and the chain scales in which we compete since the onset of the pandemic as well as our adjusted SG&A cost savings of 21% realized throughout 2020 gave us confidence to make certain investments in the fourth quarter to position the Company for success in 2021 and beyond.\nThe ultimate and precise impact of the pandemic on our business for 2021 and beyond remains largely unknown as is the exact trajectory of our industry's recovery.\nIn fact, our year-to-date 2021 RevPAR has declined by approximately 18% from the same period of 2020.", "summaries": "Since the onset of the pandemic in mid-March, our performance has achieved sequential quarter-over-quarter improvement with our fourth quarter domestic systemwide RevPAR declining 25.1% from the same quarter of 2019.\nTurning to 2021, we expect our momentum to continue into the first quarter, allowing Choice Hotels to further outperform the industry in the current environment.\nAs a result, our adjusted earnings per share were $2.22 and $0.51 for full year 2020 and the fourth quarter respectively.\nOur fourth quarter 2020 domestic systemwide RevPAR surpassed the industry by nearly 26 percentage points, declining 25.1% from the same period of the prior year and improved by 370 basis points from the third quarter.\nThe ultimate and precise impact of the pandemic on our business for 2021 and beyond remains largely unknown as is the exact trajectory of our industry's recovery.", "labels": "0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0"}
{"doc": "Beginning with the top line, revenues for the quarter totaled $171.7 million, up 142% year over year and 173% sequentially.\nOn a pro forma basis, including Cisneros Interactive, revenues improved 51% over the fourth quarter of 2019.\nIn total, political advertising revenue for the fourth quarter was $14.2 million, surpassing our prior record set in the fourth quarter of 2012.\nExcluding political ad sales, and including Cisneros Interactive on a pro forma basis, revenue increased by 39% in the quarter.\nAdjusted EBITDA totaled $32.6 million for the fourth quarter of 2020, an increase of 195% compared to $11.1 million in the prior year period.\nOn a pro forma basis, EBITDA increased 159% in 2020 versus 2019.\nFor 2020, revenues totaled $344 million, up 26% over 2019.\nAdjusted EBITDA totaled $60.4 million for full-year 2020 as compared to $41.2 million in 2019 or a 47% EBITDA growth in 2020 versus 2019.\nAs Chris Young, our CFO, will discuss shortly, in Q4, we more than doubled our prior record of free cash flow set in the second quarter of 2006.\nOur television division generated revenues of $50.5 million for the quarter, up 37% compared to the prior year and up 34% sequentially.\nBreaking this down further, television advertising and multicast revenue was up 48% over the prior year fourth quarter, while retransmission consent revenues were up 1% year over year.\nExcluding political spend, our core television revenues increased by 10%, with television political revenues totaling $11.1 million in the quarter versus the nonmaterial amount of political revenue in the fourth quarter of 2019.\nExcluding political revenue, national advertising revenues were up 20% driven mainly by Tier 2 automotive and healthcare, while local advertising revenues, excluding political, were up 2% driven by legal services and healthcare.\nOn a full-year basis, television revenues totaled $154.5 million, up 3% year over year.\nExcluding political ad sales, core television revenues for 2020 were $131.9 million, a decrease of 12% over full-year 2019.\nTurning to our top 10 television ad categories.\nAuto, our largest television ad category, increased 3% year over year, but improved 28% from Q3 2020.\nServices, our second largest advertising category, was up 17% compared to the prior year period.\nHealth care, our third largest category, was up 26% over the prior year and also improved 102% sequentially.\nMedia was up 22% year over year and up 26% sequentially.\nRetail, while still down 21% year over year, posted a strong gain sequentially of 60%.\nFor adults 18 to 49 in early local news, our Univision television stations finished ahead of or tied their Telemundo competitor in 11 of 17 markets where we have head-to-head competition.\nIn late local news, we finished ahead of or tied Telemundo competitors in 10 markets among the 17 markets where we have head-to-head competition.\n1 or 2 against English and Spanish language television competitors in nine markets, and we built up audience levels from the 15-minute lead-in in eight markets.\n1 or 2 against English and Spanish language television competitors in six markets.\nDuring the full week, our Univision and UniM\u00e1s television stations combined have a cumulative audience of 3.8 million persons of two plus in our markets combined compared to Telemundo's 3.1 million persons two plus.\nWe have 22% more viewers than Telemundo in our television footprint.\nDuring weekday primetime, when comparing to all stations in total, we had a higher ratings than at least one of the big four networks in nine markets among adults 18 to 49 and 10 markets among adults 18 to 34.\nTelecast for Univision's Latin GRAMMY Awards show on November 19 was among the top 10 broadcast television primetime programs for the night among adults 18 to 49 and adults 25 to 54 in 13 markets.\nAmong adults 18 to 34, the show ranked among the top 10 in 15 markets.\nOur sales teams did a remarkable job selling the Latin GRAMMYS, setting a revenue record for this signature TV special, with revenues up 25% over 2019.\nAudio revenues for the fourth quarter totaled $16.2 million, an increase of 17% over the prior year period and up 41% sequentially.\nLocal audio revenues decreased 3% over the prior year fourth quarter, while national revenues were up 51% over prior year, largely bolstered by political ad sales.\nExcluding political spend, core radio revenues declined 5% versus the prior year fourth quarter, with political revenues totaling $3 million in the quarter versus a nonmaterial amount of political revenue in the fourth quarter of 2019.\nExcluding political spend, national advertising revenues were up 8% driven by the service category, while local advertising revenues were down 11% in our audio unit as a result of the continued impact of the COVID-19 pandemic.\nOn a full-year basis, audio revenues totaled $46.3 million, down 16% year over year.\nExcluding political ad sales, core audio revenues for 2020 were down 26% over full-year 2019.\nThe 12 markets where we subscribe to Miller Kaplan data, we outperformed the market by 34.6 points in total revenue combined.\nWe outperformed the total market in 11 out of the 12 markets where we subscribe to Miller Kaplan.\nServices, our largest category, representing 26% of our total audio revenue, improved 31% over the prior year fourth-quarter period.\nAuto, our second largest advertising category, declined 28% for the fourth quarter as compared to the fourth quarter of '19, but was up 49% sequentially.\nAuto repair advertising was up a healthy 34% year over year as was grocery store advertising, which improved 3% over the prior year period.\nThe remaining top 10 advertising categories were all down year over year in the fourth quarter, with the exception of political ads, where revenues totaled $3 million in the fourth quarter compared to an immaterial amount in the prior year period.\n1 in nine out of 14 markets, including Los Angeles, released for fall among Hispanic adults 18 to 49, including ties; and No.\n1 in 11 markets, including Los Angeles, among Hispanic adults 25 to 54.\nAcross our 14 O&O radio stations, the Erazno y La Chokolata show reached more than 608,000 Hispanics 18 to 49 in the fall 2020 survey.\n1 or 2 Spanish language midday show, including Los Angeles, in 10 out of our 13 markets released among Hispanic adults 18 to 49, including ties.\n1 or 2 among Spanish language radio stations in eight out of our 11 El Genio markets among Hispanic adults 18 to 49 and Hispanic adults 25 to 54.\nAll 2020 Hispanic adults 18 to 49 weekly reach was at 95% of 2019 levels, while fall 2020 reach for total adults 18 to 49 was at 91% of 2019 levels.\nDigital revenues totaled $105 million for the fourth-quarter 2020, a substantial increase of 424% as compared to the prior year period.\nSequentially, digital revenues improved 669%.\nOn a pro forma basis for Cisneros Interactive, digital revenue increased 67% compared to the prior year period.\nOn a full-year basis, digital revenues totaled $143.3 million, an increase of 108% compared to 2019.\nJuan has over two decades of experience in media, marketing, technology, venture capital and e-commerce industries as a result of working for Bertelsmann in Germany, Spain and Mexico and as Executive Director of Televisa's digital interactive for 7 years.\nWith Juan, a fluent Spanish speaker at the helm of our U.S. and global digital businesses, we expect to be able to grow our solutions, technology and talent pool that serve today more than 4,000 clients in 21 countries.\nOur video network continues to expand and close exclusive connections with Tier 1 publishers.\nWe generated over $28 million in political revenue in 2020, which is an incredible 65% increase over our prior year record of $17 million in 2012.\nAccording to a recently published UCLA Latino study of the 2020 presidential election turnout, approximately 16.6 million Latinos cast votes in the 2020 election.\nThis represents a 31% increase and nearly double the nationwide growth of 16% in ballots cast between 2016 and 2020.\nLatino voters supported Joe Biden by a margin across the country, consistent with margins that Obama won in both 2008 and 2012.\nAs Walter has discussed, revenue for the fourth-quarter 2020 totaled $171.7 million, an increase of 142% from the fourth quarter of 2019 and up 173% sequentially.\nWhen comparing on a pro forma basis and including Cisneros Interactive's revenue in our 2019 results, revenues increased 51% year over year.\nFor our TV division, ad revenues totaled $41.8 million, up 48% year over year.\nRetransmission revenue totaled $8.8 million and was up 1% year over year.\nFor our audio division, revenues totaled $16.2 million, up 17% over the prior year period.\nLastly, digital revenues totaled $105 million, up 424% year over year.\nWhen comparing on a pro forma basis and including Cisneros Interactive's revenue in our 2019 results, digital revenues increased 67% year over year.\nSG&A expenses were $14 million for the quarter, a decrease of 1% compared to $14.1 million in the year ago period.\nExcluding the Cisneros acquisition, SG&A expenses were down 23%.\nDirect operating expenses totaled $31.9 million for Q4 of 2020, an increase of 6% compared to Q4 of 2019.\nExcluding the Cisneros acquisition, direct operating expenses were down 2%.\nFinally, corporate expenses for the fourth quarter increased 18%, totaling $9.3 million compared to $7.9 million in the same quarter of last year.\nWe also maintained a dividend of $0.025 per share and continued to eliminate expenses at the operating and corporate levels deemed secondary to serving our core media business.\nExcluding expenses related to Cisneros, operating expenses are expected to be down approximately 13%.\nConsolidated adjusted EBITDA totaled $32.6 million for the fourth quarter, up 195% compared to the fourth quarter of last year.\nOn a pro forma basis, accounting for the Cisneros Interactive acquisition, adjusted EBITDA was up 159% year over year.\nEntravision's 51% portion of Cisneros Interactive adjusted EBITDA was $3.6 million for the fourth quarter.\nEarnings per share for the fourth-quarter 2020 were $0.24 compared to $0.09 per share in the same quarter of last year.\nNet cash interest expense was $1.3 million for the fourth quarter compared to $2.2 million in the same quarter of last year.\nCash capital expenditures for fourth quarter totaled $1.3 million compared to $4.1 million in the prior year.\nThis brought us to $9.1 million in cash capital expenditures for the full year of 2020.\nCash and marketable securities as of December 31, 2020 totaled $147.2 million.\nTotal debt was $215 million.\nNet of $75 million of cash and marketable securities on the books, our total leverage, as defined in our credit agreement, was 2.3 times as of the end of the fourth quarter.\nNet of total accessible cash and marketable securities, our total net leverage was 1.3 times.\nAs of today, our TV advertising business is presently pacing a minus 14%, with core TV, excluding political, pacing at a minus 4%.\nOur audio business is pacing a minus 8%, with core audio, excluding political again, pacing at a minus 6%.\nAnd our digital business, including revenue from Cisneros Interactive, is pacing plus 500%.\nFactoring in Cisneros revenue generated in Q1 of last year of approximately $42.2 million, our digital business on a pro forma basis is currently pacing at a plus 65%.\nIf that's the case, we will file a notice with the SEC to extend our 10-K filing deadline for an additional 15 days.", "summaries": "Beginning with the top line, revenues for the quarter totaled $171.7 million, up 142% year over year and 173% sequentially.\nTelecast for Univision's Latin GRAMMY Awards show on November 19 was among the top 10 broadcast television primetime programs for the night among adults 18 to 49 and adults 25 to 54 in 13 markets.\nOur sales teams did a remarkable job selling the Latin GRAMMYS, setting a revenue record for this signature TV special, with revenues up 25% over 2019.\n1 in 11 markets, including Los Angeles, among Hispanic adults 25 to 54.\n1 or 2 among Spanish language radio stations in eight out of our 11 El Genio markets among Hispanic adults 18 to 49 and Hispanic adults 25 to 54.\nEarnings per share for the fourth-quarter 2020 were $0.24 compared to $0.09 per share in the same quarter of last year.", "labels": "1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n1\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0\n0"}