Tag: Earnings

Monro posts record earnings, misses Street estimates

monro-logo-300x167Monro Inc., formerly Monroe Muffler Brake, last week reported record first quarter sales and earnings, but missed Wall Street expectations.

For the first quarter ended March 30, Monro reported sales of $295.8 million, up more than 6 percent from $278.5 million in the first quarter last year. Net income for the quarter rose to $20.6 million from $17.6 million a year ago. On a per-share basis, Monro reported diluted earnings of 62 cents, up from 53 cents in the year-ago quarter.

Analysts polled by Zacks Investment Research had expected earnings of 67 cents per share. Analysts expect full-year earnings of $2.41 per share. Prior to Thursday’s quarterly report, Zacks had raised shares of Monro from a “hold” rating to a “buy” rating.

Monro officials said the first-quarter sales increase was a result of sales from new stores and a comparable store sales increase of 1.9 percent, up from 1.4 percent in the first quarter last year.

Operating expenses increased by $5.1 million in the quarter, which included $1.6 million in costs related to a new Monro.Forward initiative detailed in a recent Securities and Exchange Commission proxy statement filing.

Monro.Forward centers around four key pillars, according to the SEC filing, which will be supported by a number of investments in technology and data-driven analytics across the business. Those pillars include improving customer experience, enhancing customer-centric engagement, optimizing product and service offering and accelerating productivity and team engagement.

New President and CEO Brett Ponton said upon his arrival at Monro in October he observed “significant opportunities” to build upon a solid foundation and rich history and to capitalize on the accelerating momentum in the undercar maintenance industry.

“I developed our key strategic priorities focused on delivering a consistent 5-star experience to our customers in order to drive higher traffic and increase customer lifetime value,” Ponton wrote in the proxy statement. “I also enhanced an already capable senior leadership team with seasoned leaders in both operations and marketing to assist in executing this plan.”

In its quarterly earnings report, Monro said it had acquired eight retail locations in Missouri from Sawyer Tire Co., filling an existing market. The locations are expected to add roughly $8 million in annualized sales, representing a sales mix of 50 percent service and 50 percent tires.

Brett Ponton
Brett Ponton

In addition, Monro has signed a definitive agreement to acquire another seven locations, but did not provide details on what company it has purchased. Monro officials said the locations fill in existing markets and are expected to add some $8 million in annualized sales, representing a sales mix of 60 percent service and 40 percent tires. The acquisition is expected to close in the second quarter.

“We are off to a solid start in fiscal 2019, with sustained business momentum and robust first quarter top line performance driven by our Monro.Forward strategy,” Ponton said in the earnings report. “We believe the rollout of our strategy is progressing well as we make the necessary investments in key initiatives that will enable us to develop a scalable platform to drive sustainable, long-term growth.”

Ponton said during the first quarter, Monro addressed its store staffing to support improved traffic trends.

“In the coming quarters, we plan to right size overstaffed stores, which we expect will get us back to a flat staffing model and will allow us to achieve overall greater store efficiency,” Ponton said in the company’s first-quarter earnings calls. “As part of our store staffing optimization efforts, we plan to also rebalance the level of technical skills in each store, ensuring our stores are staffed with technicians that have the appropriate skill level for the services needed.”

On Tuesday, Monro announced the appointments of Jerry Alessia as senior vice president of tire merchandising and Avi Dasgupta as vice president of information technology infrastructure and data architecture. Both hires are part of the company’s new Monro.Forward initiative.

Separately last week, Monro announced a collaboration with Amazon.com to provide tire installation services at Monro’s retail tire and automotive service centers throughout the Eastern U.S.

Monro’s tire installation services are now available to customers who purchase tires from Amazon.com and select the ship-to-store option across Monro’s 52 stores in the Greater Baltimore area. Following the initial launch, the collaboration will be expanded to provide the service at Monro’s nearly 1,200 retail locations in 27 states. The Amazon deal is non-exclusive.

“In line with our Monro.Forward strategy, this collaboration marks a major milestone of development of our omni channel presence and builds upon the success of our multiple preferred tire installer agreements,” Ponton said in Monro’s earnings call. “While still representing a small fraction of our business, our agreements with online retailers are a key component of our omni channel strategy.”

Ponton said roughly half of the online tire customers are new to the Monro brand. Historically Monro has experienced an average ticket of roughly $120 for online tire sales, compared with the company average ticket of more than $160.

“We have no reason to believe that the economics on the Amazon relationship will be dissimilar to what we’re currently experiencing with other online partners,” he said in the call.

Monro officials also increased full-year guidance. Based on current sales, business and economic trends, as well as acquisitions, Monro anticipates fiscal 2019 sales to be in the range of $1.18 billion to $1.21 billion. The company expects diluted earnings per share of $2.30 to $2.40, compared with $1.92 per share in fiscal 2018.

Monro will hold its annual meeting on Aug. 14, at which shareholders will vote to elect four directors and approve compensation for company executives. Under a 2017 employment agreement that runs through July 31, 2020, Ponton is paid a base salary of $550,000 and is eligible to earn an annual bonus of up to 150 percent of his base salary upon certain performance achievements.

The proxy statement notes that for fiscal 2018, the median income of all employees other than the CEO was $34,543, while the total compensation of the CEO was $5.9 million. John Van Heel served as CEO until Oct. 1.

Following a dip in share price to $63.25 on Friday, Monro stock (Nasdaq: MNRO) has rebounded, trading at $67.75 mid-week.

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Xerox misses Street estimates in Q2

xerox logoXerox Corp. on Thursday reported a drop in second quarter revenues and earnings, missing Street estimates.

The document company also announced plans for a $1 billion share repurchase program, and Xerox will opportunistically buy back up to $500 million in 2018. Xerox ended the quarter with a cash balance of $1.26 billion.

“This positive step forward is a strong endorsement of the company and represents an immediate action to deliver value to our investors,” said new company CEO and Vice Chairman John Visentin in a statement.

For the quarter ended June 30, Xerox reported revenue of $2.51 billion, down 2.2 percent from $2.57 billion a year ago. Income for the quarter dropped to $112 million, or 42 cents per diluted share, from $166 million in the second quarter last year. On an adjusted basis, Xerox earnings for the quarter were 80 cents per diluted share.

Analysts polled by Zacks Investment Research earnings of 92 cents per share on revenues of $2.5 billion.

John Visentin
John Visentin

“It’s clear after two months as CEO of this iconic brand that we can return Xerox to the forefront as a leading tech company,” Visentin said. “We currently have software, services and printing technologies, along with a pipeline of innovations, which can disrupt the marketplace and bring increased value to those we serve.”

Visentin stepped into the role of CEO upon the ousting of then-CEO Jeff Jacobson. Jacobson’s resignation came after months of sparring between Xerox major shareholders and several executives following Jacobson’s $6.1 billion deal with Fujifilm Holdings Corp. That deal collapsed amid accusations that Jacobson had gone rogue in making the deal.

Fujifilm has since sued Xerox for $1 billion for breach of contract, and in response Visentin in June promised not to renew the company’s Fuji Xerox contract when it expires in 2021 and to seek new vendors for its products. Visentin also said that Xerox plans to compete with Fuji in the Asia-Pacific market.

In the second quarter Xerox reported $40 million in severance costs related to headcount reductions of 550 employees worldwide, impacting the company’s balance sheet. Transaction costs for the quarter were $58 million, which included costs associated with legal fees and other costs from the terminated Fuji agreement.

“Our second-quarter results demonstrate the benefit of having a business model underpinned by annuity cash flow. However, it also highlights the challenge of improving revenue and flowing cost savings to the bottom line,” Visentin said in Friday’s news release. “Our success will depend on operating with a relentless focus on optimization.

“Actions include improving the effectiveness and efficiency of our supply chain and go-to-market channels,” Visentin added. “Equally important is ensuring we provide a great experience for our customers and address their evolving business needs.”

Shares of company stock (NYSE: XRX) spiked Thursday morning and have remained near $26.

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Genesee & Wyoming beats Street estimates in second quarter

g&w genesee__wyoming_logo-svgGenesee & Wyoming Inc. on Friday reported a second quarter increase in operating revenues and reported earnings, beating Street predictions.

For the second quarter ended June 30, G&W reported a 10 percent increase in revenues to $595 million, compared with $540.4 million in the second quarter last year. Reported net income was $44.2 million, down from $46 million in the year-ago quarter.

On a per-share basis, G&W’s reported earnings were 94 cents, compared with 80 cents in the second quarter last year. Analysts polled by Zacks Investment Research had expected earnings of 92 cents.

“Our adjusted diluted EPS of 94 cents for the second quarter of 2018 were at the high end of our outlook as business conditions continued to improve in each of our three geographies, led by North America,” G&W Chairman, President and CEO Jack Hellmann said in a statement. “Our same railroad carloads increased 8 percent in North America, with particular strength in coal, steel and minerals and stone traffic.”

Operating revenues from G&W’s North American operations increased nearly 8 percent to $339.6 million, from $315.7 million in the year-ago quarter. Australia’s operating revenues increased to $79 million from $76.8 million a year ago, while the firm’s U.K./Europe revenues increased more than 19 percent to $176.4 million, from $148 million in the second quarter last year.

G&W’s second-quarter results were adversely affected by a $9.4 million restructuring cost related to activities in the U.K., as well as a $1.4 million loss on the sale of its Continental Europe intermodal business, ERS Railways B.V.

“Our business outlook for the remainder of 2018 remains promising thanks to growing customer demand for rail shipments across most commodity groups, particularly in North America,” Hellmann said. “In addition, we have refinanced our senior credit facility with improved terms through 2023; we have more than $600 million of capacity under our revolving credit facility, and we continue to evaluate investment opportunities in multiple markets including the opportunistic purchase of our own shares.”

Shares of company stock (NYSE: GWR) were down 1 percent to $83.32 in brisk trading Friday.

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Transcat reports revenue, earnings increases in Q1

transcat_416x416Transcat Inc. this week reported first-quarter increases in revenue and earnings, beating Street estimates.

The Rochester-based provider of accredited calibration, repair, inspection and laboratory instrument services posted sales for the quarter ended June 30 of $36.7 million, compared with $36.3 million in the year ago quarter.

Transcat reported net income of $1.4 million, compared with $856,000 in the first quarter of fiscal 2018. Diluted earnings per share were 19 cents, compared with 12 cents a year ago.

Analysts had expected earnings of 17 cents per diluted share.

“The operating leverage we believe is inherent in our business, combined with the early impact from our operation excellence initiatives were demonstrated in the first quarter with only modest improvement in revenue,” Transcat President and CEO Lee Rudow said in a statement. “Both of our segments saw margin expansion, resulting in enhanced profitability.”

Transcat’s service revenue was $19.3 million in the first quarter, compared with $18.5 million a year ago, while its distribution sales was $17.3 million, down from $17.8 million a year ago.

“Our service segment organic revenue growth rate was almost 5 percent, while our new business activity levels were quite strong. We generated a record level of new bookings in the first quarter, which we expect will drive higher levels of growth for the fiscal year as we continue to take market share,” Rudow said.

In June Transcat announced it had acquired NBS Calibrations Inc., a Tempe, Arizona, provider of liquid and gas flow meter calibrations and repair services. Transcat did not disclose financial terms of the deal but did say NBS President Brent Dudden would join Transcat under a contractor agreement.

In its first quarter report, Rudow said NBS will be consolidated with Transcat’s Phoenix facility.

“NBS both leverages our existing infrastructure and adds a capability in liquid and gas flow meter calibrations to our offerings,” Rudow said in the quarterly report. “Historically outsourced, we now have the capability in-house, creating a niche service we can continue to expand.”

He said the company’s current acquisition pipeline is “active.”

“We expect to deliver solid fiscal 2019 results,” Rudow added. “Our strong and unique value proposition continues to resonate in the market and recent new business wins in our service segment support our confidence level. The distribution business is also expected to continue to generate significant cash, provide differentiation in the market and foster service growth opportunities.”

Shares of Transcat stock (Nasdaq: TRNS) were down slightly to $22.20 in light volume Wednesday.

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Alstom records 14 percent rise in quarterly sales

alstom_300x200Alstom Signaling Inc. last week reported a first-quarter increase in booked orders and sales.

Sales for the quarter ended June 30 increased 14 percent to 2.02 billion euros, or roughly $2.35 billion. The company’s orders increased 38 percent from a year ago.

“Alstom is starting the financial year with sound commercial momentum and a strong sales level,” said Alstom Chairman and CEO Henri Poupart-Lafarge. “In particular, we are proud to have won the driverless light metro system for Montreal, one of the major urban systems projects this year.”

Poupart-Lafarge said the sales growth was driven primarily by progress made within Middle East system projects.

Alstom is a French multinational company operating worldwide in rail transport markets, active in the fields of passenger transportation, signaling and locomotives. The company employs 34,500 people in 60 countries, including some 380 in Rochester.

The company reiterated its full year outlook for sales of roughly 8 billion euros, with a 7 percent profit margin.

In November last year, Alstom announced plans to transfer its hardware equipment manufacturing from its Rochester facility to other U.S. sites, eliminating 80 jobs in the process. The layoffs were expected to be completed in March this year.

Alstom last September announced a merger with Germany’s Siemens AG, a supplier of power generation and infrastructure solutions. The two companies filed the application for merger control clearance with the European Commission on June 8, and on July 17 Alstom shareholders approved the merger. Alstom officials expect that deal to close in the first half of 2019.

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Seneca Foods reports loss, net sales increase

seneca_foods_corp_logoSeneca Foods Corp. on Thursday reported a fourth quarter and full year loss in earnings as a result, in part, of decreased demand for canned fruit.

For the fourth quarter ended March 31, Seneca Foods reported a 6.8 percent increase in net sales to $299.7 million. Net earnings fell to a loss of $14.3 million, or a loss of $1.46 per diluted share, for the quarter. That compares with net earnings of $300,000, or 3 cents per diluted share a year ago.

For the full year, Seneca Foods reported a net loss of $13.8 million, or a $1.41 loss per diluted share, compared with net earnings of $15.9 million, or $1.60 per diluted share, in fiscal 2017. Net sales for the year increased 4.2 percent to $1.31 billion, which the company attributed to higher prices and its acquisition of Kentucky-based Truitt Bros., a manufacturer of shelf-stable foods.

In mid-February this year, the company announced plans to close its plant in Modesto, Calif., due to challenging economic conditions. The facility, which employed 265 people, was used for packaging and warehousing of Seneca Foods’ peach and fruit cocktail products.

Company officials in its earnings report said a “significant portion” of the net earnings decrease was attributable to non-recurring restructuring charges of $10 million related to the Modesto plant closing.

“Fiscal year 2018 was a challenging year for us. The canned fruit business in particular continued to struggle,” President and CEO Kraig Kayser said in a statement, also noting the closing of the Modesto facility. “This decision had a direct impact on our fiscal year earnings.”

Seneca Foods also determined that it needed to restate prior year financial statements regarding the bill and hold treatment for its Green Giant contract. The restatement relates to the timing of when revenue is recognized for the contract, Kayser explained.

Separately last week, the company confirmed plans to shutter its Marion, Wayne County, canning facility.

Citing economic reasons, Seneca Foods Chief Financial Officer Timothy Benjamin said 45 jobs will be affected by the closure, expected to be completed by the end of this year. The company’s headquarters, also in Marion, will remain open, as will its facilities in Geneva and Leicester, Livingston County.

The Mill Street facility produces the cans that cooked vegetables are sold in, Benjamin said.

“The vegetable canning industry has seen a steady decline in consumption over the years and we need to be running our plants at full capacity,” Benjamin told the RBJ last week. “It just wasn’t happening in our Marion facility.”

Seneca Foods plans to close its Rochester, Minn., seasonal canning operation after this season, according to an article from the Post Bulletin. Roughly 60 employees work full time for that part of Seneca Foods’ facility, which primarily produces cream corn, the newspaper reported. Some 180 employees, who work in the company’s frozen distribution center there, will not be affected by the decision.

On Monday, shares of Seneca Foods stock (NasdaqGS: SENEA) were up trading slightly at $27.15 in light morning volume.

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Graham revenue, earnings down in fourth quarter

graham-logoGraham Corp. on Thursday reported a drop in fourth-quarter revenue and earnings.

For the fourth quarter ended March 31, the Batavia manufacturer posted revenue of $22.2 million, down from $25.6 million in the same quarter last year. Net income for the quarter was $800,000, or 9 cents per diluted share, compared with $1.8 million, or 18 cents per diluted share, in the fourth quarter of fiscal 2017.

Company officials said the decrease in net income and diluted EPS for the quarter was due primarily to lower sales and weaker project mix.

For the full year, Graham reported net sales of $77.5 million, down from $91.8 million in 2017. The company posted a net loss of $9.8 million for the year, compared with net income of $5 million last year. On a per-share basis, the full-year loss was $1.01, compared with earnings of 52 cents for 2017.

“Fiscal 2018 was another challenging year due to weak order levels in fiscal 2017 that totaled $66 million. We believe that fiscal 2018 was the trough of the downturn,” Graham President and CEO James Lines said in a statement. “Throughout the prolonged cyclical downturn which began in late 2014, we continued to make investments in our business processes, focusing on lead time reduction and first pass yield quality, as well as other continuous improvement and performance management initiatives.”

Lines said company leadership expects those investments to help drive profitability as Graham enters a growth cycle. Total orders grew to $43.5 million in the fourth quarter, compared with $9 million in the fourth quarter last year. Company officials said that growth was driven by the U.S. Navy and the refining industry in North America, and demonstrates early signs of cyclical recovery.

“Strong order levels during the past two quarters provide a solid foundation for anticipated revenue growth in fiscal 2019 of 16 to 22 percent, compared with fiscal 2018,” Lines said. “Margin for recent orders is superior to fiscal 2017 orders and, when considered in conjunction with our operational improvements, this gives us confidence in our expected fiscal 2019 gross margin range. We are pleased to once again be on a growth trajectory.”

Separately, Graham declared a quarterly cash dividend of 9 cents per common share, payable on June 27 to stockholders of record on June 13.

Graham is a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries. Shares of company stock (NYSE: GHM) closed Thursday at $25.50, down from Wednesday’s close of $26.19.

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Transcat has positive fourth quarter

transcat_416x416Transcat Inc. has reported record fourth quarter and full year revenue, beating Street estimates.

For the fourth quarter ended March 31, Transcat reported revenue of $42.5 million, up from $38.5 million in the same quarter a year ago. Service segment revenues increased to roughly $22 million, while distribution sales increased to $20.5 million in the quarter.

Net income for the quarter increased to $2.45 million from $1.43 million a year ago. On a per share basis, diluted earnings increased to 33 cents from 20 cents in the fourth quarter last year.

Analysts polled by Zacks Investment Research had expected diluted earnings per share of 23 cents.

Transcat provides state-of-the-art equipment and calibration services for the pharmaceutical, industrial, manufacturing, energy and chemical process industries. The company has been headquartered in Monroe County for more than five decades and has more than 20 locations in the U.S. and Canada.

For the full year, Transcat reported revenues of $155.14 million, up from $143.9 million in fiscal 2017. Net income improved to $5.92 million from $4.52 million the previous year. Diluted earnings per share for the year were 81 cents, up 17 cents from fiscal 2017.

“Our fiscal 2018 results demonstrated solid performance in both of our segments as we achieved new records with more than $155 million in revenue and $5.9 million in net income,” Transcat President and CEO Lee Rudow said in a statement. “We are particularly pleased that we now have had 36 straight quarters, or nine years, of quarter-over-quarter growth in our service segment revenue.”

Company officials said fiscal 2019 capital expenditures will be roughly $7 million to $7.5 million, with the majority for IT infrastructure investments.

“We are pleased with the results we delivered for fiscal 2018,” Rudow said. “We continue to expect mid- to high single-digit organic growth in our service segment and believe we will continue to take market share, particularly within the life science space.”

Rudow added that the company’s “pipeline of acquisition opportunities” is strong and continues to be an important piece to the company’s long-term growth strategy.

Shares of Transcat stock (Nasdaq: TRNS) have climbed from $16.90 on May 21, prior to the company’s quarterly earnings release, to $17.75 today.

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Monro 1st quarter results beat Street estimates; company adds 12 stores

monro-logo-300x167Rochester automotive undercar specialist Monro Inc. on Monday reported an increase in fourth-quarter revenue and record year-end sales, beating Street estimates. The company also announced the acquisition of 12 stores and four wholesale locations in the South.

Sales for the fourth quarter ended March 31 increased more than 13 percent to $285.6 million, compared with $252 million in the fourth quarter of fiscal 2017. Fiscal 2018 was a 53-week year with 368 selling days, compared with 361 selling days last year, company officials noted. In addition to the extra week, the fourth quarter included an increase in sales from new stores of $13.8 million.

Net income for the quarter was $17.5 million, up from $9.7 million in the same period last year. On a per-share basis, earnings were 52 cents, compared with 29 cents in the fourth quarter last year.

Analysts polled by Zacks Investment Research had expected earnings of 49 cents on revenue of $283.86 million.

Comparable store sales—or sales at stores open for at least one year—for the quarter increased 10.3 percent and 2.4 percent when adjusted for days. During the quarter, Monro opened 15 stores and closed three company-operated locations, ending the quarter with 1,150 stores and 102 franchised locations.

“We delivered solid fourth quarter results, driven by positive top line trends and strong execution across our business, as we launched a number of foundational tools designed to support our strategy,” Monro President and CEO Brett Ponton said in a news release. “We exit the quarter with solid industry tailwinds, improving operating performance, a disciplined acquisition strategy and newly implemented initiatives to drive improvement across the organization.”

Monro also announced the acquisition of 12 retail and commercial Free Service Tire Co. locations in Tennessee, filling in an existing market and expanding its footprint in the south. The company also acquired four wholesale centers as part of the transaction, located in Tennessee, Virginia and North Carolina, increasing its tire purchasing and distribution efficiencies, Monro officials said.

“We believe we have a clear path for future growth and look forward to carrying this strong momentum through fiscal year 2019 and beyond,” Ponton said. “As we enter fiscal 2019, we are excited about the significant opportunities that lie ahead of us. I am confident that our renewed focus on the customer and strong commitment to operational excellence will position us well to capitalize on favorable industry trends over the next few years and drive sustainable long-term value for our shareholders.”

Monro expects the new retail locations to add some $47 million in annualized sales, representing a sales mix of 15 percent service and 85 percent tires.

For the full year, Monro posted a net sales increase of 10.4 percent to a record $1.128 billion, compared with $1.022 billion for fiscal 2017. The company attributed the rise to an increase in sales from new stores of $96.2 million.

Adjusted for days, comparable store sales decreased 0.1 percent, compared with a 4.3 percent decline in the previous year.

Net income for the year was $63.9 million, or $1.92 per diluted share, compared with net income of $61.5 million, or $1.85 per diluted share in 2017.

Monro on Monday also announced a 2-cent increase in the company’s cash dividend for the first quarter of fiscal 2019 to 20 cents. The company has increased its cash dividend 13 times during the 13 years since a cash dividend was first issued. The first quarter dividend is payable on June 14 to shareholders of record as of June 4.

Monro operates in 27 states serving the Mid-Atlantic and New England regions and portions of the Great Lakes, Midwest and Southeast. The company was founded in 1957 and went public in 1991.

Shares of company stock (Nasdaq: MNRO) closed Friday at $56.10 and were down more than 2 percent to $53.94 in early morning trading Monday.

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IEC reports rise in revenue, earnings

iec-logoIEC Electronics Corp. on Wednesday reported a 49 percent increase in revenues for the second quarter and a 21-cent rise in per-share earnings, beating Street estimates.

For the second quarter ended March 30, the Newark, Wayne County, electronic contract manufacturing services provider reported revenues of $31.8 million, compared with $21.4 million for the same quarter last year.

IEC reported net income of $1.6 million, compared with a net loss of $600,000 in the second quarter a year ago. On a per-share basis, diluted earnings for the quarter were 15 cents, compared with a 6-cent loss per share in the second quarter 2017.

Analysts polled by Zacks Investment Research had expected earnings of 5 cents on revenues of $29 million.

For the first six months of fiscal 2018, IEC revenues increased 25 percent to $52.9 million from $42.3 million last year. Net income for the first six months was $1.1 million, or 11 cents per diluted share, compared with a net loss of $1.5 million, or a 14-cent per-share loss in 2017.

“We’re pleased to have delivered strong second quarter results, characterized by significant revenue growth, gross margin improvement and a return to profitability,” IEC President and CEO Jeffrey Schlarbaum said in a statement this week. “As expected, our conversion of backlog to sales improved during the quarter, including the shift of several program deliveries from the first quarter to the second quarter.”

IEC’s sales pipeline and backlog continue to grow as a result of the company’s increased program activity from existing and new customers, Schlarbaum added.

“This success can be attributed to our focus on improving our operations and project execution, as well as to our sales team’s ability to target the right customers for our skill set,” he said.

IEC continues to encounter global supply chain challenges related to component shortages and is working with partners to minimize the impact on the company’s ability to assemble and ship products, Schlarbaum said.

“We are energized by our second quarter performance and optimistic about the remainder of 2018 given the opportunities presented by our robust sales pipeline and growing backlog,” he said.

Shares of company stock (NYSE: IEC) opened Wednesday at $4.01, skyrocketing to $4.75 by market’s close. Shares were down slightly to $4.70 in midday trading Thursday.

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Kodak reports first quarter loss

kodak1bEastman Kodak Co. on Wednesday reported a $25 million net loss in the first quarter, as well as a decrease in assets.

For the quarter ended March 31, Kodak reported revenues of $357 million, unchanged from the first quarter last year. Kodak’s $25 million net loss for the quarter compares with earnings of $7 million in the same quarter a year ago.

The company reported operational earnings before interest, taxes, depreciation and amortization (EBITDA) of $1 million for the quarter. The company ended the quarter with a cash balance of $313 million, down $31 million from the fourth quarter cash balance of $344 million.

“Our use of cash for the first quarter was in line with our expectations and significantly improved from the same period a year ago,” Kodak CFO David Bullwinkle said. “We have meaningfully improved productivity and are on track to deliver over $50 million year on year cost savings in 2018.

Kodak officials said the company experienced continued growth in its Kodak Sonora process-free plates, Kodak Flexcel NX packaging and Kodak Prosper inkjet businesses.

“We are on plan to deliver full-year revenue and operational EBITDA performance within the expected guidance range,” Kodak Chief Executive Jeff Clarke said in a news release.

Kodak’s largest division, its Print Systems Division, had first quarter revenues of $216 million, a $3 million increase from the first quarter last year. Kodak’s Enterprise Inkjet Systems Division reported revenues of $31 million, down from $37 million a year ago, while the Flexographic Packaging Division posted revenues of $37 million, up $4 million from the same period last year.

Shares of company stock (NYSE: KODK) opened Wednesday at $5.49, but by Thursday morning had fallen to $5.175.

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Ambrell exceeds estimates in first quarter report

ambrellAmbrell Corp. parent company, inTEST Corp., has posted first quarter revenue and earnings increases, beating Street estimates.

The Mt. Laurel, N.J.-based public company—which designs and manufactures engineered solutions for automated test equipment and other electronic test and industrial process applications—posted revenues of $18.87 million in the first quarter ended March 31, up from $14.2 million in the first quarter last year.

Net revenues excluding Ambrell were $12.7 million for the quarter. Adjusted net earnings per diluted share were 22 cents, compared with 21 cents in the year-ago quarter.

Analysts had expected diluted EPS of 17 cents on revenues of $17.8 million.

“The first quarter was fueled across the board by continued demand for our broad-based solutions, a testament to the strength of our customer relationships and the depth of our product suite,” inTEST President and CEO James Perin said in a statement. “We continue to benefit from the robust demand environment associated with the semiconductor industry, with automotive sensors, mobility technologies and Internet of Things leading our semiconductor test business, while non-semi business drivers included solid demand in the automotive, telecom and defense/aerospace markets.

“Our Ambrell business has made significant contributions to inTEST, and its first quarter 2018 record bookings of $7 million increased 14 percent sequentially and 53 percent year-over-year,” Perin added.

As part of inTEST’s thermal unit, Ambrell employs more than 90 staffers worldwide, including about 80 in Scottsville. The company’s planned move to a larger facility on Lyell Avenue will add roughly another nine staffers.

For the second quarter, inTEST expects net revenues to be in the range of $19 million to $20 million, with adjusted earnings per diluted share of 22 cents to 26 cents.

“We are well positioned to capture market share in the markets we serve, while expanding inTEST’s footprint in additional thermal test and industrial markets,” Perin said. “As we continue to execute on our differentiated product strategy, we believe the conditions for our long-term success remain firmly in place and we are solidly on track for a strong 2018.”

After an initial drop, shares of company stock (NYSE: INTT) have increased 10 cents to $7.30 since inTEST reported its quarterly earnings Thursday.

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Xerox reports drop in revenue, earnings

xerox logoAmid turmoil among Xerox Corp. leaders and shareholders, the company last week reported a first quarter drop in revenue and earnings, missing Street estimates.

The document company reported revenue for the quarter of $2.44 billion, down 0.8 percent from $2.45 billion in the year-ago quarter. Net income for the quarter was $23 million, down from $40 million a year ago.

Diluted earnings per share for the quarter ended March 31 were 8 cents, compared with 14 cents in the first quarter last year. Adjusted earnings were 68 cents for the quarter, a 1-cent increase over last year.

Analyst expectations ranged from 70 cents to 73 cents earnings for the quarter.

“In the first quarter of 2018, we grew adjusted operating profit year-over-year, excluding equity income, and continued to generate significant cash flow,” said Bill Osbourn, Xerox’s chief financial officer. “The entire team is keenly focused on continuing to lead in our markets, serving our customers well and generating strong shareholder returns.”

During the first quarter, Xerox’s equity income from its non-controlling 25 percent interest in Fuji Xerox was a loss of $68 million, down $108 million from the prior year. This includes a $28 million charge related to the correction of accounting adjustments and misstatements found last year during an audit.

Xerox did not provide full-year guidance due to the ongoing battle between shareholders, the board and company CEO Jeff Jacobson. The company last week let a deal with two of its largest shareholders expire, an unexpected U-turn that will, at least for now, keep Jacobson in the driver’s seat.

Activist shareholders Carl Icahn and Darwin Deason had reached an agreement last Tuesday to replace Jacobson and six board members, stemming from the $6.1 billion deal that would have Fujifilm Holdings taking 50.1 percent control over the document company. Icahn and Deason have said the merger with Fujifilm greatly undervalues Xerox stock and gives Fujifilm control without providing a premium to Xerox shareholders. As a result, they have fought for Jacobson’s ouster.

Tuesday’s agreement called for Jacobson’s resignation and a realignment of the board as resolution to Deason’s lawsuit against the merger. But the agreement required “execution of stipulations discontinuing the Deason litigation with respect to the Xerox defendants,” a statement from Xerox said.

Those stipulations were never executed and the agreement expired at 8 p.m. Thursday. Xerox said Jacobson and the original board remain in place and in control.

Earlier stories about the merger and subsequent lawsuits can be found here, here and here.

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Garlock parent reports 12 percent gain in first quarter income

ENPRO INDUSTRIES LOGOGarlock Sealing Technologies LLC parent EnPro Industries Inc. last week reported a 9 percent increase in first quarter sales and a nearly 12 percent jump in earnings, beating Street estimates.

For the quarter ended March 31, EnPro reported consolidated net sales of $368.8 million, up 9 percent from $337.9 million in the same quarter a year ago. Adjusted net income for the quarter rose 12 percent, from $20.9 million to $18.4 million.

On a per-share basis, EnPro’s adjusted diluted earnings were 85 cents, down from 96 cents in the first quarter last year. Analysts polled by Zacks Investment Research had expected revenues of $338.97 million in the quarter.

Consolidated results for the first quarter of 2017 reflected the deconsolidation of Garlock and its subsidiaries, which in 2010 filed for Chapter 11 bankruptcy protection related to current and future asbestos claims against it. Consolidated results for the first quarter of 2018 include the results of Garlock and another subsidiary, which were reconsolidated in July 2017.

Due to the reconsolidation, EnPro’s first quarter results compare 2018 consolidated results with 2017 pro forma results for the same period.

“I am pleased that we generated year-over-year sales growth in each of our divisions and segments in the first quarter. Despite select areas of profitability declines in heavy-duty trucking and power systems, we had a strong start to the year,” EnPro President and CEO Steve Macadam said in a news release. “We continued to experience favorable momentum in many of the markets that we serve. Excluding the impact of foreign exchange translation, acquisitions and divestitures, total company consolidated sales in the first quarter increased by 4.8 percent, versus pro forma sales in the same period of last year.”

EnPro is a Charlotte, N.C.-based company engaged in the design, development, manufacturing and marketing of proprietary engineered industrial products. Garlock is a multinational manufacturer of high-performance fluid sealing and pipeline solutions with an emphasis on safety, longevity and productivity.

Garlock’s customers work in the field of chemical processing, food and beverage, pharmaceutical, and oil and gas, among others.

EnPro officials said excluding results in heavy-duty trucking, consolidated profit for its sealing products segment increased versus pro forma segment profit in the first quarter last year due to higher volumes across most markets.

“We remain committed to our strategy to create shareholder value through earnings growth and balanced capital allocation,” Macadam said. “We continue to focus on disciplined investments for organic growth and innovation, strategic acquisitions and returning capital to shareholders through dividends and share repurchases.”

On May 1, EnPro declared a quarterly dividend of 24 cents per share, payable June 20 to shareholders of record on June 6, 2018.

“Sales grew year-over-year in all of our divisions in the first quarter, and despite a challenging start to the year for profitability in the heavy-duty trucking portion of sealing products and in power systems, we are optimistic about our overall financial performance for the remainder of the year,” Macadam said.

EnPro expects a 2018 consolidated sales increase between 6 and 8 percent over 2017 pro forma sales. Shares of company stock (NYSE: NPO) closed Friday at $69.20, up from Thursday’s close of $67.19.

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Ultralife revenue, income up in first quarter

ultralife-logoUltralife Corp. on Thursday reported a first-quarter increase in revenue and income.

For the quarter ended April 1, the Newark, Wayne County-based manufacturer reported operating income of $2.4 million on revenue of $23.1 million. That compares with operating income of $1.8 million on revenue of $22 million in the first quarter last year.

Net income for the quarter was $2.2 million, or 14 cents per diluted share, compared with net income of $1.7 million, or 11 cents per diluted share, in the first quarter last year.

“Our first quarter results demonstrate the leveraged earnings power of our business model and the diversity of new revenue opportunities we have been cultivating,” Ultralife President and CEO Michael Popielec said in a statement. “A strong start to the year, backlog and strict adherence to our business model parameters give us confidence that we will deliver another year of profitable growth.”

The company’s first-quarter revenue growth reflected higher medical and government/defense sales, Ultralife officials said. Battery & Energy Products sales decreased by $300,000 to $17.2 million, while Communications Systems grow more than 28 percent to $5.8 million.

Shares of Ultralife (Nasdaq: ULBI) stock were up nearly 3 percent to $9.50 in light trading Friday morning.

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