Stock Earnings Analysis: Renren Inc. (NYSE:RENN)

Renren Inc. (NYSE:RENN) reported earnings for the three months ended March 2016 on June 08, 2016. The company earned $0.13 per share on revenue of $21.63M. Analysts had been modeling earning per share of $-0.06 with $22.76M in revenue.

Renren Inc. (NYSE:RENN) announced its unaudited financial results for the first quarter ended March 31, 2016.

First Quarter 2016 Highlights

  • Total net revenues were US$10.8 million, a 29.2% increase from the corresponding period in 2015.
  • Advertising and IVAS net revenueswere US$6.1 million, a 24.8% decrease from the corresponding period in 2015.
  • Financing income wasUS$4.7 million, compared to US$0.2 million in the corresponding period of 2015.
  • Gross profit was US$2.4 million.
  • Operating loss was US$19.2 million, compared to an operating loss of US$27.8 million in the corresponding period in 2015.
  • Net loss attributable to the Company was US$23.2 million, compared to a net loss of US$23.8 million in the corresponding period in 2015.
  • Adjusted net loss(non-GAAP) was US$15.9 million, compared to an adjusted net loss of US$17.6 million in the corresponding period in 2015.

Financing income was US$4.7 million for the first quarter of 2016, compared to US$0.2 million in the corresponding period of 2015. The increase was in line with the increase of financing receivable from US$12.7 million as of March 31, 2015 to US$170.6 million as of March 31, 2016.

Cost of revenues was US$8.4 million, a 7.7% increase from the corresponding period of 2015.

Operating expenses were US$21.5 million, a 23.9% decrease from the corresponding period of 2015.

Selling and marketing expenses were US$4.6 million, a 39.1% decrease from the corresponding period of 2015. The decrease was primarily due to a decrease in advertising expenses, headcount reductions, and a decrease in personnel related expense.

Research and development expenses were US$5.3 million, a 39.0% decrease from the corresponding period in 2015. The decrease was primarily due to headcount reductions and a decrease in personnel related expense.

General and administrative expenses were US$11.6 million, a 3.2% decrease from the corresponding period in 2015.

Share-based compensation expenses, which were all included in operating expenses, were US$7.2 million, compared to US$6.2 million in the corresponding period in 2015.

Operating loss was US$19.2 million, compared to an operating loss of US$27.8 million in the corresponding period in 2015.

Realized loss on short-term investments was US$0.1 million, compared to a gain of US$1.1 million in the corresponding period in 2015.

Loss in equity method investments was US$11.9 million, compared to earnings of US$0.5 million in the corresponding period in 2015.

Net loss attributable to the Company was US$23.2 million, compared to a net loss of US$23.8 million in the corresponding period in 2015.

Renren Inc. earnings per share showed a decreasing trend of -869.4% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -24%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -28.2% when sales declined -11.7. It reported -12% sales drop, and -869.4% EPS decline in the last quarter.

The stock is trading at $1.95, up 9.55% from 52-week low of $1.78. The stock trades down -50.13% from its peak of $3.85 and % below the consensus price target of $1.9. Its volume clocked up at 0.68 million shares which is higher than the average volume of 0.61 million shares. Its market capitalization currently stands at $659.85M.

Stock Earnings Analysis: TiVo Inc. (NASDAQ:TIVO)

TiVo Inc. (NASDAQ:TIVO) reported earnings for the three months ended April 2016 on May 31, 2016. The company earned $0.04 per share on revenue of $99.71M. Analysts had been modeling earning per share of $0.08 with $99.56M in revenue.

TiVo Inc. (NASDAQ:TIVO) reported financial results for the first quarter ended April 30, 2016.

Q1 Highlights

  • Total TiVo subscriptions now over 7 million, up 24% versus last year; includes 312,000 MSO and 3,000 TiVo-Owned net additions in the first quarter
  • First quarter Service and Software & Technology revenue of $99.7 million, an increase of 8% year-over-year
  • Operator-related service and software revenue increased 44% year-over-year
  • First quarter net income was $4.2 million; includes $5.2 million in Rovi transaction costs and $3.7 million in restructuring expenses partially offset by a $3.2 million tax benefit from those items
  • First quarter Adjusted EBITDA was $32.1 million
  • Entered into agreement to be acquired by Rovi at 40% premium to TiVo’s unaffected closing price on March 23rd; Creates $3 billion software, services, and data provider for the evolving entertainment ecosystem.

Transaction with Rovi

The transaction with Rovi, announced on April 29, continues to move forward as planned. Pending required approvals, the transaction is expected to close in the third calendar quarter of this year. As discussed in the transaction announcement, the combination with Rovi offers a sound strategic rationale, including:

  • The creation of the market’s largest entertainment software provider with over 500 operator, consumer electronic, and content owner relationships;
  • Clear opportunities to combine product offerings and create end-to-end solutions for service provider partners, which will integrate and bundle software, cloud services, metadata, advertising, and analytics;
  • Significantly enhanced R&D capabilities, leveraging TiVo’s consumer DNA across an even broader group of products and customers;
  • Highly meaningful financial benefits including a $100M+ in annual cost synergies and calendar year 2016 Pro forma revenue of $780M to $830M with ~40% Adjusted EBITDA margins1.

Revenue

Service and software & technology revenue for the First Quarter of Fiscal Year 2017 was $99.7 million, an 8% increase from $92.4 million in the First Quarter of 2016. This growth was driven by a year-over-year increase of 44% in our Operator-related service and software revenue and strong double-digit growth in our data and analytics business, which had record revenue. This growth was offset in part by lower year-over-year TiVo-Owned and IP revenues.

Net Income

For the First Quarter of 2017, GAAP Net Income was $4.2 million and included non-recurring restructuring costs of $3.7 million and Rovi transaction expenses of $5.2 million offset by a $3.2 million tax benefit from restructuring and Rovi transaction costs. This compared to GAAP Net Income of $9.1 million in the year-ago quarter.

Non-GAAP Net Income grew 33% to $12.1 million compared to $9.1 million in the year-ago quarter. Non-GAAP Net Income excludes restructuring costs, Rovi transaction expenses as well as amortization and earn-outs related to the Cubiware acquisition.

TiVo Inc. earnings per share showed a decreasing trend of -6.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 64%.Analysts project EPS growth over the next 5 years at 15.2%. It has EPS annual growth over the past 5 fiscal years of 18.2% when sales grew 17.4. It reported -6.5% sales drop, and -47.9% EPS decline in the last quarter.

The stock is trading at $10.15, up 39.23% from 52-week low of $7.29. The stock trades down -5.84% from its peak of $10.78 and 18.03% above the consensus price target of $11.98. Its volume clocked up at 0.46 million shares which is lower than the average volume of 2.32 million shares. Its market capitalization currently stands at $999.02M.

Stock Earnings in Review: FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) reported earnings for the three months ended April 2016 on June 08, 2016. The company earned $-0.56 per share on revenue of $28.58M. Analysts had been modeling earning per share of $-0.4 with $35.02M in revenue.

FuelCell Energy Inc. (NASDAQ:FCEL) reported financial results for its second quarter ended April 30, 2016 and key business highlights.

  • ExxonMobil carbon capture agreement advances global market opportunity
  • More than 125 megawatts of fuel cell project bids outstanding with near term decision dates
  • Total assets in excess of $300 million and backlog in excess of $400 million
  • New $25 million debt facility to further support project development activities

Financial Results 
FuelCell Energy (the Company) reported total revenues for the second quarter of 2016 of $28.6 million, which is comparable to the prior year period.  Revenue components include:

  • Product sales of $15.4 million for the current period compared to $20.2 million for the second quarter of 2015, as the comparable prior year period included module sales to Asia and higher equipment, procurement and construction (EPC) activity.
  • Service agreements and license revenues of $10.6 million for the current period compared to $4.6 million for the comparable prior year period, increasing year-over-year, primarily due to revenue recognized from module replacements.
  • Advanced Technologies contract revenues of $2.6 million for the current period compared to $3.8 million for the comparable prior year period.  Revenue was lower year-over-year pending commencement of new projects in backlog.

A gross loss of ($0.2) million was incurred in the second quarter of 2016, compared to a gross profit of $2.0 million generated for the comparable prior year period.  Product revenue mix oriented towards fuel cell kit sales to Asia in the current period compared to complete power plant sales in North America for the prior year period resulted in a year-over-year decrease in product gross profit.  Service margins were negatively impacted by non-recurring charges from the termination of a legacy sub-megawatt service contract and changes to a different legacy service contract reflecting continued initiatives to optimize the service business, exit sub megawatt sites and expand future margin potential.

Operating expenses for the current period totaled $12.6 million compared to $10.8 million for the prior year period.  The increase reflects greater project bid activity and timing of increased research and development related to product enhancements and new near-term product introductions, such as completion of European Union (EU) certification for MW-class plants, developing a renewable biogas clean-up skid as the Company seeks to capture more of the overall project value chain, further enhancing the micro-grid offering, and advancing different power plant configurations for specific target markets.

Net loss attributable to common shareholders for the second quarter of 2016 totaled $16.2 million, or $0.56 per basic and diluted share, compared to $10.7 million or $0.44 per basic and diluted share for the second quarter of 2015.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter of 2016 totaled ($11.5) million. Refer to the discussion of Non-GAAP financial measures below regarding the Company’s calculation of Adjusted EBITDA.  Capital spending was $1.0 million and depreciation expense was $1.2 million.

Revenue Backlog
Total backlog was $410.7 million as of April 30, 2016 compared to $312.2 million as of April 30, 2015 and sequentially, total backlog was $403.9 million as of January 31, 2016.

  • Services backlog totaled $294.8 million as of April 30, 2016 compared to $203.7 million as of April 30, 2015. Services backlog includes future contracted revenue from routine maintenance, scheduled module exchanges, and from power purchase agreements.
  • Product sales backlog totaled $51.0 million as of April 30, 2016 compared to $91.6 million as of April 30, 2015.  Product sales backlog reflects firm orders with executed contracts.  Notices of awards, outstanding bids, and project pipeline is not included in product backlog.
  • Advanced Technologies contracts backlog totaled $64.9 million as of April 30, 2016 compared to $16.9 million as of April 30, 2015.  Carbon capture contracts account for the majority of the increase year-over-year.

FuelCell Energy Inc. earnings per share showed an increasing trend of 34.2% for the current fiscal year. The company’s expected EPS decline rate for next fiscal year is -90%.Analysts project EPS growth over the next 5 years at 15%. It has EPS annual growth over the past 5 fiscal years of 29.3% when sales grew 18.5. It reported 0% sales drop, and -27.4% EPS decline in the last quarter.

The stock is trading at $5.5, up 21.95% from 52-week low of $4.51. The stock trades down -56.76% from its peak of $12.72 and % below the consensus price target of $12.4. Its volume clocked up at 0.52 million shares which is lower than the average volume of 0.6 million shares. Its market capitalization currently stands at $167.29M.

Stock Earnings in Review: G-III Apparel Group, Ltd. (NASDAQ:GIII)

G-III Apparel Group, Ltd. (NASDAQ:GIII) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $0.06 per share on revenue of $457.4M. Analysts had been modeling earning per share of $0.02 with $473.21M in revenue.

G-III Apparel Group, Ltd. (NASDAQ:GIII) announced operating results for the first quarter of fiscal 2017 that ended April 30, 2016.

For the quarter ended April 30, 2016, G-III reported that net sales increased 6% to a first quarter record of $457.4 million compared to $433.0 million in the year-ago period. The Company’s net income for the first quarter was $2.8 million, or $0.06 per diluted share, compared to $6.8 million, or $0.15 per diluted share, in the prior year’s comparable period.

Morris Goldfarb, G-III’s Chairman, Chief Executive Officer and President, said, “Fiscal 2017 got off to a strong start in our wholesale business, particularly with respect to our Calvin Klein products and our dress businesses including Eliza J and the newly launched Tommy Hilfiger dress line. Although our own retail businesses did not perform to plan, we expect many of the measures we are taking to improve top and bottom line performance for these businesses in the second half of the year. We are looking forward to our upcoming multi-category product launches for Tommy Hilfiger, as well as further penetration and distribution of the Karl Lagerfeld brand.”

Outlook

The Company today reiterated its prior guidance for the full fiscal 2017 year ending January 31, 2017. The Company continues to expect net sales of approximately $2.56 billion and net income between $120 million and $125 million, or a range between $2.55 and $2.65 per diluted share. For the fiscal 2016 year ended January 31, 2016, net sales were $2.34 billion and net income was $114.3 million, or $2.46 per diluted share.

On an adjusted basis, excluding items resulting in other income in Fiscal 2016 of $0.02 per share, net of taxes, non-GAAP net income per diluted share was $2.44 for the 2016 fiscal year.

The Company also continues to project adjusted EBITDA for fiscal 2017 to increase between 9% and 12%, to between approximately $228 million and $236 million. Adjusted EBITDA for fiscal 2016 was $210.1 million.

For its second fiscal quarter ending July 31, 2016, the Company is forecasting net sales of approximately $485.0 million compared to $473.9 million in the comparable quarter last year. The Company is also forecasting net income for the second fiscal quarter between $7.0 million and $9.0 million, or between $0.15 and $0.19 per diluted share, compared to net income of $12.5 million, or $0.27 per diluted share, in last year’s second quarter.

Non-GAAP Financial Measures

Reconciliations of GAAP net income per share to non-GAAP net income per share and of GAAP net income to adjusted EBITDA are presented in tables accompanying the condensed financial statements included in this release and provide useful information to evaluate the Company’s operational performance. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the Company’s financial results prepared in accordance with GAAP.

G-III Apparel Group, Ltd. earnings per share showed a decreasing trend of -1.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 303%.Analysts project EPS growth over the next 5 years at 13.7%. It has EPS annual growth over the past 5 fiscal years of 11.3% when sales grew 17.1. It reported 5.6% sales growth, and -60% EPS decline in the last quarter.

The stock is trading at $45.23, up 25.15% from 52-week low of $36.14. The stock trades down -38.82% from its peak of $73.93 and 17.47% above the consensus price target of $53.13. Its volume clocked up at 0.54 million shares which is lower than the average volume of 0.62 million shares. Its market capitalization currently stands at $1.98B.

Stock Earnings Roundup: CLARCOR Inc. (NYSE:CLC)

CLARCOR Inc. (NYSE:CLC) reported earnings for the three months ended May 2016 on June 15, 2016. The company earned $0.73 per share on revenue of $364.97M. Analysts had been modeling earning per share of $0.68 with $356.29M in revenue.

CLARCOR Inc. (NYSE:CLC) reported that its second quarter diluted earnings per share were $1.09, a $0.33 increase from the second quarter of 2015. Higher diluted earnings per share were driven by a $0.37 per diluted share benefit from the patent litigation award received in the second quarter of 2016 offset by an approximate $0.02 reduction from upfront expenses for cost reduction initiatives incurred in the second quarter of 2016 and an approximate $0.02 reduction from the disposition of the packaging business, J.L. Clark, which was sold in June 2015.

2016 Guidance

We are maintaining our consolidated diluted earnings per share guidance between $2.60 and $2.80 and our consolidated net sales guidance between $1,375 million and $1,415 million. We are reducing our consolidated operating margin guidance range from 14.1% to 14.7% in our previous guidance to the range of 13.9% to 14.5%. Our 2016 diluted earnings per share guidance does not include costs that we may incur in 2016 related to any potential facility consolidations or any other restructuring or cost savings initiatives (including the $2.1 million in upfront expenses from cost reduction initiatives incurred in the first six months of 2016) or the $27.3 million patent litigation award received in the second quarter of 2016.

Consolidated sales guidance for 2016 remains unchanged from our previous guidance. However, the composition of expected 2016 net sales between our two reporting segments has shifted from our previous guidance. We have increased our sales guidance for our Engine/Mobile Filtration segment by approximately $6 million, or 1.0%, at the mid-point primarily due to higher expectations for second half sales in several international markets. We have lowered our sales guidance for our Industrial/Environmental Filtration segment by approximately $6 million, or 0.8%, at the mid-point, primarily due to anticipated continued pressures in our natural gas filtration market and recent headwinds in some of our industrial liquid filtration markets, which we anticipate will be partially offset by improved sales expectations in our HVAC filtration markets. Due to the sales mix shift from higher margin natural gas and industrial liquid filtration markets to the lower margin HVAC filtration market, our expected full year operating margin for the Industrial/Environmental Filtration segment was lowered from our previous guidance at the mid-point by approximately 0.3 percentage points. Our expected full year operating margin guidance for the Engine/Mobile Filtration segment has remained unchanged.

Our 2016 earnings guidance includes approximately $7.0 million of net interest and other expense. We project 2016 cash from operations to be between $200 million and $220 million (excluding after-tax proceeds from the patent litigation award). We expect capital expenditures to be between $45 million and $55 million, our effective tax rate to be between 30.8% and 31.2%, and 49.0 million average diluted shares outstanding.

CLARCOR Inc. earnings per share showed a decreasing trend of -5.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 290%.Analysts project EPS growth over the next 5 years at 8.8%. It has EPS annual growth over the past 5 fiscal years of 7.3% when sales grew 7.9. It reported -8.7% sales drop, and 43.8% EPS growth in the last quarter.

The stock is trading at $61.35, up 40.23% from 52-week low of $44.13. The stock trades down -0.77% from its peak of $62.84 and % below the consensus price target of $59.33. Its volume clocked up at 0.35 million shares which is higher than the average volume of 0.25 million shares. Its market capitalization currently stands at $2.95B.

Stock Earnings Roundup: Zumiez, Inc. (NASDAQ:ZUMZ)

Zumiez, Inc. (NASDAQ:ZUMZ) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $-0.08 per share on revenue of $172.97M. Analysts had been modeling earning per share of $-0.11 with $172.42M in revenue.

Zumiez, Inc. (NASDAQ:ZUMZ) reported results for the first quarter ended April 30, 2016.

Total net sales for the first quarter ended April 30, 2016 (13 weeks) decreased 2.6% to $173.0 million from $177.6 million in the first quarter ended May 2, 2015 (13 weeks). Comparable sales for the thirteen weeks ended April 30, 2016 decreased 7.5% compared to a comparable sales increase of 3.0% in the first quarter of 2015. Net loss in the first quarter of fiscal 2016 was $2.1 million, or ($0.08) per diluted share, compared to net income of $2.8 million, or $0.09 per diluted share, in the first quarter of the prior fiscal year. The results for the first quarter of 2015 include approximately $1.1 million, or $0.03 per diluted share, for charges associated with the acquisition of Blue Tomato.

At April 30, 2016, the Company had cash and current marketable securities of $62.1 million, compared to cash and current marketable securities of $150.9 million at May 2, 2015. The decrease in cash and current marketable securities is primarily a result of stock repurchases and capital expenditures, partially offset by cash generated through operations.

Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, “While our monthly comparable sales trends improved as the quarter progressed, the quarter was more challenging than expected. We did experience pockets of strength within our merchandise assortments, however it wasn’t enough to offset the general weakness in consumer demand for our major categories. During this period of instability for the retail industry, we are taking actions aimed at preserving near-term profitability while continuing to make the necessary investments in the business to best position the company for future success. We remain confident that we have the right strategies in place to capitalize on the domestic and international growth opportunities that lie ahead and return greater value to our shareholders over the long-term.”

Fiscal 2016 Second Quarter Outlook
The Company is introducing guidance for the three months ending July 30, 2016. Net sales are projected to be in the range of $172 to $176 million resulting in net loss per diluted share of approximately -$0.09 to -$0.13. This guidance is based on an anticipated comparable sales decrease in the 6% to 8% range for the second quarter of fiscal 2016. The Company currently intends to open approximately 29 new stores in fiscal 2016, including up to 6 stores in Canada and 7 stores in Europe.

Zumiez, Inc. earnings per share showed a decreasing trend of -29.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 96%.Analysts project EPS decline over the next 5 years at -1.67%. It has EPS annual growth over the past 5 fiscal years of 5.8% when sales grew 10.9. It reported -2.6% sales drop, and -190.3% EPS decline in the last quarter.

The stock is trading at $14.86, up 28.88% from 52-week low of $11.53. The stock trades down -48.3% from its peak of $28.12 and % below the consensus price target of $14.3. Its volume clocked up at 0.36 million shares which is lower than the average volume of 0.46 million shares. Its market capitalization currently stands at $377.07M.

Stock in the Spotlight: Conns Inc. (NASDAQ:CONN)

Conns Inc. (NASDAQ:CONN) reported earnings for the three months ended April 2016 on June 02, 2016. The company earned $-0.31 per share on revenue of $389.11M. Analysts had been modeling earning per share of $0.06 with $392.64M in revenue.

Conns Inc. (NASDAQ:CONN) announced its financial results for the first quarter ended April 30, 2016.

Norm Miller, Conn’s Chairman, Chief Executive Officer and President, commented, “Our results this quarter reflect the transition we are undergoing this year to transform our credit business. We have a strong, differentiated retail model that delivers an excellent value to our customers. Our work the past few years to revitalize our retail operation was highly successful, but changes in the underlying behavior of our customer base exposed the need for increased investment in credit risk management. We are temporarily slowing the pace of growth to allow us to implement strategies to turn around our credit segment’s financial performance. These strategies include investments in our credit risk management team, improvements to our underwriting strategies and reviewing opportunities to increase the yield on the portfolio. It will take several quarters before the benefits of these efforts begin to meaningfully impact our reported results. I am confident we are headed in the right direction, and will end the year better positioned to achieve consistent and predictable earnings growth.

Retail Segment First Quarter Results (on a year-over-year basis unless otherwise noted)

Total retail revenues were $319.0 million for the first quarter of fiscal 2017, an increase of $20.4 million, or 6.8%, primarily a result of new store openings partially offset by a decline in same store sales. Excluding the impact of our April 2015 decision to exit video game products, digital cameras, and certain tablets, same store sales for the quarter decreased 1.3%. Sales growth was also impacted by underwriting changes made in the fourth quarter of fiscal 2016 and in the first quarter of fiscal 2017. Retail segment operating income for the first quarter was $33.7 million, and $34.2 million adjusted to exclude net charges of $0.5 million primarily from legal and professional fees related to securities-related litigation.

The following provides a summary of items impacting the performance of our product categories during the first quarter of fiscal 2017 compared to the prior-year period:

  • Furniture unit volume increased 23.5%, partially offset by a 3.8% decrease in average selling price;
  • Mattress unit volume increased 13.2% and average selling price increased 3.3%;
  • Home appliance unit volume increased 5.4% with average selling price flat. Total sales for refrigeration increased 6.8%, laundry increased 2.6%, and cooking increased 8.5%;
  • Consumer electronic unit volume decreased 10.4%, partially offset by a 4.0% increase in average selling price. Television sales decreased 1.5% as unit volume decreased 8.1%, partially offset by a 7.2% increase in average selling price. Excluding the impact from exiting video game products and digital cameras, consumer electronics same store sales decreased 8.6%;
  • Home office average selling price increased 11.0%, partially offset by a 7.4% decrease in unit volume. Excluding the impact from exiting certain tablets, home office same store sales increased 2.8%; and
  • The increase in repair service agreement commissions was driven by improved program performance resulting in higher retrospective commissions and increased retail sales.

Conns Inc. earnings per share showed a decreasing trend of -45.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 52%.Analysts project EPS growth over the next 5 years at 23%. It has EPS annual growth over the past 5 fiscal years of 87.4% when sales grew 14.8. It reported 6.6% sales growth, and -174.8% EPS decline in the last quarter.

The stock is trading at $8.07, up 6.18% from 52-week low of $7.6. The stock trades down -81.64% from its peak of $43.95 and 63.2% above the consensus price target of $13.17. Its volume clocked up at 0.8 million shares which is lower than the average volume of 0.88 million shares. Its market capitalization currently stands at $248.65M.

Stock in the Spotlight: Krispy Kreme Doughnuts, Inc. (NYSE:KKD)

Krispy Kreme Doughnuts, Inc. (NYSE:KKD) reported earnings for the three months ended April 2016 on May 31, 2016. The company earned $0.25 per share on revenue of $136.48M. Analysts had been modeling earning per share of $0.24 with $137.08M in revenue.

Krispy Kreme Doughnuts, Inc. (NYSE:KKD) reported financial results for the first quarter of fiscal 2017, ended May 1, 2016.

First Quarter Fiscal 2017 Highlights Compared to the Year-Ago Period:

  • Revenues increased 3.0% to $136.5 million from $132.5 million.
  • Domestic systemwide same store sales rose 0.7%, including a 0.7% decrease at Company Stores and 1.6% increase at domestic franchise stores; constant currency international franchise same store sales declined 7.3%.
  • Systemwide store count rose 13.0% from the first quarter of last year to 1,133 shops worldwide.
  • Operating income was $15.9 million compared to $17.3 million, including $0.5 million in impairment and lease termination costs and $1.6 million in employee termination benefits and Merger related costs in the current year period.
  • Net income was $9.4 million ($0.14 per share) compared to $10.7 million ($0.16 per share) in the first quarter last year.
  • Adjusted earnings per share rose to $0.25 per share from $0.24 in the first quarter last year.
  • Cash provided by operating activities was $19.5 million compared to $17.1 million in the first quarter last year.
  • The Company repurchased 2.4 million shares of its common stock for a total cost of $39.6 million under the authorization approved by the Board of Directors and pursuant to a pre-arranged stock trading plan in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and the Company’s policies regarding stock transactions. The settlement of such purchases was $34.2 million during the quarter.

Results for the Quarter Ended May 1, 2016

Consolidated Results

In addition to the results included in the highlights above, direct operating expenses for the first quarter of fiscal 2017 increased to $108.0 million from $103.8 million in the comparable period last year and, as a percentage of total revenues, increased to 79.1% from 78.3%. Direct operating expenses include $1.1 million related to employee termination benefits.

General and administrative expenses were $7.5 million in the first quarter compared to $7.6 million in the same period a year ago. General and administrative expenses in the first quarter of fiscal 2017 include $0.1 million in employee termination benefits and $0.5 million in Merger related costs.

Impairment charges and lease termination costs of $0.5 million in the first quarter of the current year principally relate to the refranchising of certain shop locations which was completed during the second quarter of fiscal 2017.

Segment Results

Revenues at Company Stores increased 3.6% to $94.0 million in the quarter, driven by a 4.7% increase in on-premises sales, which included a 1.8% increase in store operating weeks and 0.7% decrease in same store sales. Sales within the consumer packaged goods category, which represents just under half of the Company Stores segment revenues, increased 2.3% compared to the prior year. Company Stores segment operating income decreased from $7.4 million to $6.0 million in the quarter as a result of the Company Stores contribution margin decreasing from 18.5% to 17.1% and $0.4 million in employee termination benefits. The decrease in contribution margin was primarily due to higher shop labor partially offset by lower commodity costs.

Domestic Franchise revenues increased 11.5% to $4.1 million primarily reflecting higher royalties. Total sales by domestic franchisees rose 6.7%, and same store sales at domestic franchise shops increased 1.6%. The Domestic Franchise segment generated operating income of $2.5 million compared to $2.1 million in the same period last year, and included $0.2 million in employee termination benefits.

Krispy Kreme Doughnuts, Inc. earnings per share showed an increasing trend of 11% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 105%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual growth over the past 5 fiscal years of 34.8% when sales grew 7.5. It reported 3% sales growth, and -7.4% EPS decline in the last quarter.

The stock is trading at $20.99, up 62.71% from 52-week low of $12.9. The stock trades down -3.49% from its peak of $21.75 and % below the consensus price target of $21.1. Its volume clocked up at 0.58 million shares which is lower than the average volume of 1.46 million shares. Its market capitalization currently stands at $1.28B.

Stock on the Move: CarMax Inc. (NYSE:KMX)

CarMax Inc. (NYSE:KMX) reported earnings for the three months ended May 2016 on June 21, 2016. The company earned $0.9 per share on revenue of $4.13B. Analysts had been modeling earning per share of $0.92 with $4.19B in revenue.

CarMax Inc. (NYSE:KMX) reported results for the first quarter ended May 31, 2016.

  • Net sales and operating revenues increased 2.8% to $4.13 billion.
  • Used unit sales in comparable stores increased 0.2%.
  • Total used unit sales rose 4.0%.
  • Total wholesale unit sales increased 1.8%.
  • CarMax Auto Finance (CAF) income declined 7.7% to $100.8 million.
  • Net earnings declined 3.6% to $175.4 million, while net earnings per diluted share rose 4.7% to $0.90.

First Quarter Business Performance Review

Sales. Total used vehicle unit sales grew 4.0% and comparable store used unit sales rose 0.2% versus the prior year’s first quarter. The comparable store sales performance reflected the combination of an improvement in conversion that more than offset a decrease in store traffic. Our sales performance included a reduction in the Tier 3 sales mix to 11.9% of used unit sales from 14.7% in the prior year’s first quarter. Tier 3 sales represent those financed by our Tier 3 third-party finance providers (those to whom we pay a fee) and those in CAF’s Tier 3 loan origination program. For the non-Tier 3 customer base, comparable store used unit sales rose 3.6%.

Wholesale vehicle unit sales grew 1.8% versus the first quarter of fiscal 2016, primarily driven by the growth in our store base.

Other sales and revenues declined 10.9% year-over-year, primarily reflecting a decrease in new vehicle sales (which are now included in other sales and revenues) due to the disposal of two of our four new car franchises during fiscal 2016. Extended protection plan (EPP) revenues increased 6.3%, largely reflecting improved margins and the growth in our used unit sales. Net third-party finance fees improved by 29.8%, primarily due to the reduced proportion of our sales attributable to Tier 3 finance providers.

Gross Profit. Total gross profit increased 5.3% versus last year’s first quarter, to $572.6 million. Used vehicle gross profit rose 4.1%, driven by the 4.0% increase in total used unit sales. Used vehicle gross profit per unit was consistent at $2,202 versus $2,200 in the prior year period. Wholesale vehicle gross profit declined 1.9% versus the prior year’s quarter, as the 1.8% increase in wholesale unit sales was offset by a decrease in wholesale vehicle gross profit per unit to $995 from $1,032. Other gross profit rose 20.9%, primarily reflecting the improvements in EPP revenues and net third-party finance fees. The decrease in new vehicle sales did not significantly affect other gross profit.

SG&A. Compared with the first quarter of fiscal 2016, SG&A expenses increased 8.7% to $380.2 million. The growth primarily reflected the 11% increase in our store base since the beginning of last year’s first quarter (representing the addition of 16 stores), as well as a $7.0 million increase in share-based compensation expense. SG&A per used unit was $2,223 in the current quarter, up $97 year-over-year, of which $36 was attributable to the higher share-based compensation expense.

CarMax Auto Finance.(1) Compared with last year’s first quarter, CAF income declined 7.7% to $100.8 million. The decline was due to an increase in the provision for loan losses and a lower total interest margin percentage, partially offset by the effects of an increase in average managed receivables. The increase in the provision for loan losses reflected the combined effects of: favorable loss experience in the prior year’s quarter, which reduced last year’s provision; some unfavorable loss experience in the current year’s quarter; and the growth in managed receivables. Average managed receivables grew 12.5% to $9.75 billion. The total interest margin, which reflects the spread between interest and fees charged to consumers and our funding costs, declined to 5.9% of average managed receivables from 6.3% in last year’s first quarter. The allowance for loan losses as a percentage of ending managed receivables was 1.05% as of May 31, 2016, compared with 0.94% as of May 31, 2015.

Interest Expense. Interest expense rose to $11.1 million in the first quarter of fiscal 2017 from $7.1 million in the prior year’s quarter. The increase reflected the combination of growth in our finance and capital lease obligations, which resulted from the recent extension of select store leases beyond their original term, as well as higher average outstanding debt levels in fiscal 2017. During the current year’s quarter, we entered into a note purchase agreement to sell $500 million of senior unsecured notes, due in 2023, 2026 and 2028, to investors in a private placement. Of this amount, $300 million was sold during the first quarter and $200 million will be sold in the second quarter. The proceeds of the first quarter sale of notes were primarily used to reduce outstanding revolving credit borrowings.

CarMax Inc. earnings per share showed an increasing trend of 11% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 361%.Analysts project EPS growth over the next 5 years at 14.33%. It has EPS annual growth over the past 5 fiscal years of 12.9% when sales grew 11. It reported 5.5% sales growth, and 6.2% EPS growth in the last quarter.

The stock is trading at $46.98, up 13.89% from 52-week low of $41.25. The stock trades down -32.06% from its peak of $68.99 and % below the consensus price target of $59.25. Its volume clocked up at 3.71 million shares which is higher than the average volume of 2.9 million shares. Its market capitalization currently stands at $9.01B.

Stock on the Move: Layne Christensen Company (NASDAQ:LAYN)

Layne Christensen Company (NASDAQ:LAYN) reported earnings for the three months ended April 2016 on June 06, 2016. The company earned $-0.45 per share on revenue of $159.74M. Analysts had been modeling earning per share of $-0.31 with $160.24M in revenue.

Layne Christensen Company (NASDAQ:LAYN) announced financial and operating results for the fiscal 2017 first quarter (Q1 FY 2017) ended April 30, 2016.

Highlights

  • Reported net loss from continuing operations for Q1 FY 2017 was ($8.8) million, or ($0.45) per share, compared to ($6.6) million, or ($0.34) per share, for Q1 FY 2016. Q1 FY 2016 results included a $4.2 million gain, or $0.22 per share, on extinguishment of debt.
  • Adjusted EBITDA (a non-GAAP financial measure as defined below) was $4.5 million in Q1 FY 2017 compared to $4.8 million in Q1 FY 2016.
  • Consolidated revenues declined 8% to $159.7 million in Q1 FY 2017 from $174.3 million in Q1 FY 2016, largely related to lower activity levels at Mineral Services and Heavy Civil.  Water Resources produced strong revenue growth while Inliner revenues were relatively flat.
  • Unallocated corporate expenses reflected in our Adjusted EBITDA calculation continued to decline, benefiting from Layne’s overall cost reduction efforts, and were $7.0 million in Q1 FY 2017 compared to $9.5 million in Q1 FY 2016.
  • As of April 30, 2016, cash and cash equivalents were $59.8 million, and total debt was $159.9 million.  Total liquidity, which includes availability under Layne’s credit facility and total cash and cash equivalents, was $126.1 million at April 30, 2016, compared to $131.7 million at January 31, 2016.
  • Total backlog was $316.1 million at April 30, 2016 compared to $346.3 million at January 31, 2016 and $380.4 million at April 30, 2015.   The decrease in backlog was primarily within the Heavy Civil division and related to the continuing strategic shift towards more selective opportunities.

CEO Commentary

Michael J. Caliel, President and Chief Executive Officer of Layne, commented, “Our first quarter results reflect our continued progress on several fronts and the challenges we continue to face in the minerals market.  Notably, Inliner delivered another quarter of strong performance driven by improved margins and Water Resources generated top line growth although margins were impacted by some execution issues, including within the energy business, and increased bad debt expense. We continue to make meaningful progress in transforming our Heavy Civil division where we produced positive Adjusted EBITDA for the first time in more than two years.  The ongoing commodity-related headwinds continue to adversely impact our Mineral Services business although we benefitted from improved profitability of our Latin American affiliates.

Layne Christensen Company earnings per share showed an increasing trend of 16.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 19%.Analysts project EPS growth over the next 5 years at 3%. It has EPS annual decline over the past 5 fiscal years of -31.2% when sales declined -7.3. It reported -8.4% sales drop, and -33.5% EPS decline in the last quarter.

The stock is trading at $7.17, up 91.2% from 52-week low of $3.75. The stock trades down -31.78% from its peak of $10.51 and % below the consensus price target of $8.94. Its volume clocked up at 0.18 million shares which is higher than the average volume of 0.16 million shares. Its market capitalization currently stands at $140.20M.