Lions Gate has been successful in differentiating itself by focusing on young adult movies, such as The Hunger Games and Twilight. It will be expanding its young adult franchise with the release of movies this year based on the Divergent and Ender's Game books. Ender's Game will be released in November 2013 and Divergent will be released in March 2014.
Lions Gate will also be expanding on other movies outside of the young adult arena by working on RED 3, the Expendables 3 and Sinister 2.
Since acquiring Summit, Lions Gate has seen a 12 percent market share of the domestic box office.
Lions Gate is also diversifying its television programming and seeking areas with higher margins. It recently sold the Saint George program, starring George Lopez, to FX. Anger Management will be aired on FX in the same block and four episodes of Anger Management will be shown on Fox in June. Nashville has been renewed for a second season. In total, Lions Gate has 28 shows on 20 networks, and five are in national syndication. It expects $500 million in television revenue in 2014.
Lions Gate is seeing benefits from partnering with Amazon, Netflix and Hulu. One of its shows, Orange is the New Black, will premiere on Netflix in July. Lions Gate is also developing a comedy for Hulu and an animated comedy for Amazon. It expects that more of its business in the future will be creating content for these providers.
Internationally, Lions Gate has seen growth in Latin America, Russia, China and India.
The best method of evaluating Lions Gate is EBITDA adjusted by unusual nonrecurring charges. EBITDA should be increasing for the next two years, but the biggest jump will be in fiscal year 2015, where it will see the benefits of Divergent. Lions Gate will likely refinance the high-interest rate loan due this year with a lower interest bond.
The full transcript of the earnings conference call can be found on Seeking Alpha at the following link: http://seekingalpha.com/article/1474201-lions-gate-entertainment-management-discusses-q4-2013-results-earnings-call-transcript?part=single
Copyright 2013 Jaygo's Earnings Conference Call Summaries
Sunday, June 2, 2013
Friday, May 31, 2013
Summary of Graham Corporation (GHM) Q4/2013 Earnings Conference Call (May 31, 2013)
Sales and operating margins improved substantially from Q2 and Q3. Gross profit doubled from last year. Gross profit margins increased to 34.1 percent from 25.6 percent. Gross profit margins for fiscal year 2013 were 30.3 percent. Graham expects margins to increase to the mid to upper 30 percent as the expansion cycle plays out.
The company has seen a larger than expected increase in demand for aftermarket replacement parts, especially from refineries. Replacement parts have higher margins than original parts. This increase in demand contributed to the company's Q4 profitability.
Bookings overall have been disappointing, but the company has seen "frothy" bid activity, which it hopes will translate into stronger bookings in the future. However, guidance will remain conservative until the bid activity translates into actual orders. Graham has $85.5 million of backlog and expect 75 to 80 percent of it to convert in the next year as a result of an order for the Naval nuclear propulsion program and orders for new U.S. nuclear power plants.
The company is planning to increase profitability by increasing market share and expanding into submarine programs. With regard to submarines, it is working to break into the Virginia-class submarine program and the Ohio class replacement program. It also hopes to reduce earnings volatility by diversifying its customer base and increasing the number of non-cyclical orders.
The company has a strong cash position of $51.7 million and no bank debt. It wants to use its cash position for potential acquisitions.
The full transcript of the earnings conference call can be found on Seeking Alpha at the following link: http://seekingalpha.com/article/1474391-graham-corporation-s-ceo-discusses-f4q-and-full-year-f2013-results-earnings-call-transcript?part=single
Copyright 2013 Jaygo's Earnings Conference Call Summaries
The company has seen a larger than expected increase in demand for aftermarket replacement parts, especially from refineries. Replacement parts have higher margins than original parts. This increase in demand contributed to the company's Q4 profitability.
Bookings overall have been disappointing, but the company has seen "frothy" bid activity, which it hopes will translate into stronger bookings in the future. However, guidance will remain conservative until the bid activity translates into actual orders. Graham has $85.5 million of backlog and expect 75 to 80 percent of it to convert in the next year as a result of an order for the Naval nuclear propulsion program and orders for new U.S. nuclear power plants.
The company is planning to increase profitability by increasing market share and expanding into submarine programs. With regard to submarines, it is working to break into the Virginia-class submarine program and the Ohio class replacement program. It also hopes to reduce earnings volatility by diversifying its customer base and increasing the number of non-cyclical orders.
The company has a strong cash position of $51.7 million and no bank debt. It wants to use its cash position for potential acquisitions.
The full transcript of the earnings conference call can be found on Seeking Alpha at the following link: http://seekingalpha.com/article/1474391-graham-corporation-s-ceo-discusses-f4q-and-full-year-f2013-results-earnings-call-transcript?part=single
Copyright 2013 Jaygo's Earnings Conference Call Summaries
Tuesday, December 18, 2012
Summary of Shuffle Master (SHFL) Q4/2012 Earnings Conference Call December 17, 2012
Shuffle Master recently changed its name to Shuffle Entertainment.
Revenues increased by 14 percent in Q4 and 12 percent for 2012. Diluted earnings per share increased by 6 percent in Q4. Highlights on revenues was the e-Table segment, which increased by 37 percent in Q4, and the specialty game revenue, which increased by 23 percent in Q4.
Gross margins in Q4 were 64 percent, an increase of 110 basis points due to an increase in revenue. The company came closer to its goal of a 25 percent operating profit margin, reaching a 22 percent operating profit margin in 2012.
Shuffle's iGaming strategy includes paid online gambling, such as online poker, and free-to-play games on its operators' websites or standalone game apps to earn chips at a casino. Shuffle has spent $3 million this year to create iGaming. It is creating strategic partnerships to promote iGaming, including a new partnership with Amaya Gaming. Shuffle anticipates investing $10 million into iGaming. The revenue that it hopes to obtain from iGaming will be repetitive and high margin.
Shuffle has also decided to bring its slot machines to select U.S. markets.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1069721-shuffle-master-s-ceo-discusses-f4q2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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Revenues increased by 14 percent in Q4 and 12 percent for 2012. Diluted earnings per share increased by 6 percent in Q4. Highlights on revenues was the e-Table segment, which increased by 37 percent in Q4, and the specialty game revenue, which increased by 23 percent in Q4.
Gross margins in Q4 were 64 percent, an increase of 110 basis points due to an increase in revenue. The company came closer to its goal of a 25 percent operating profit margin, reaching a 22 percent operating profit margin in 2012.
Shuffle's iGaming strategy includes paid online gambling, such as online poker, and free-to-play games on its operators' websites or standalone game apps to earn chips at a casino. Shuffle has spent $3 million this year to create iGaming. It is creating strategic partnerships to promote iGaming, including a new partnership with Amaya Gaming. Shuffle anticipates investing $10 million into iGaming. The revenue that it hopes to obtain from iGaming will be repetitive and high margin.
Shuffle has also decided to bring its slot machines to select U.S. markets.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1069721-shuffle-master-s-ceo-discusses-f4q2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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Sunday, December 16, 2012
Summary of American Pacific (APFC) Q4/2012 Earnings Conference Call December 13, 2012
American Pacific is divesting its aerospace propulsion business, which focused on liquid propulsion thrusters. It is instead focusing on its chemical business, and particularly focusing on pharmaceuticals. The divestiture of the propulsion business allowed American Pacific to reduce debt and obtain a lower interest rate on remaining debt.
American Pacific's chemical business performed well in the second half of the year and beat the company's expectations. Revenues increased 25 percent in 2012, and 62 percent of the revenues were in the second half of the year. Margins increased to 18.5 percent.
American Pacific signed a large contract concerning its major central nervous system product and another contract to produce an antiviral product that is in late Phase 3 trials. The company believes it is likely the FDA will approve the product. The company also has ongoing therapies for cancer, HIV, and influenza, and is developing additional therapies for hepatitis.
American Pacific is also exploring use of chemicals for high end communication applications and is seeing momentum in that area.
In the specialty chemical business, the Department of Defense is the primary customer for ammonium perchlorate for solid rockets. The NASA space exploration program has also resulted in orders the chemical for 2013 and 2014 from ATK, one of American Pacific's customers.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063801-american-pacific-s-ceo-discusses-f4q-2012-results-earnings-call-transcript
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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American Pacific's chemical business performed well in the second half of the year and beat the company's expectations. Revenues increased 25 percent in 2012, and 62 percent of the revenues were in the second half of the year. Margins increased to 18.5 percent.
American Pacific signed a large contract concerning its major central nervous system product and another contract to produce an antiviral product that is in late Phase 3 trials. The company believes it is likely the FDA will approve the product. The company also has ongoing therapies for cancer, HIV, and influenza, and is developing additional therapies for hepatitis.
American Pacific is also exploring use of chemicals for high end communication applications and is seeing momentum in that area.
In the specialty chemical business, the Department of Defense is the primary customer for ammonium perchlorate for solid rockets. The NASA space exploration program has also resulted in orders the chemical for 2013 and 2014 from ATK, one of American Pacific's customers.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063801-american-pacific-s-ceo-discusses-f4q-2012-results-earnings-call-transcript
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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Summary of Quiksilver (ZQK) Q4/2012 Earnings Conference Call December 13, 2012
Revenues in Q4 grew 7 percent in constant currency, with North America and Asia being the strongest regions. However, gross margins declined from 52 percent in Q4/2011 to 46 percent in Q4/2012. Further, gross margins for full year 2012 declined from 52 percent to 49 percent. The gross margin decline was the result of increased clearance sales and discounting. At the end of Q3, the past season's product was 16 percent of the company's inventory because the company overbought and Quiksilver focused on liquidating that inventory in Q4. It is now back to levels of past season's inventory that are comparable to the beginning of 2012. Quiksilver does not believe it will be able to increase prices in 2013.
Quiksilver is expanding its line to ship cold weather Quiksilver and Roxy products to non-coastal regions of the United States and Canada.
In Europe, Quiksilver is gaining market share as weaker brands are going out of business. Sales in Europe were slightly higher in constant currency.
Quiksilver had good promotional sales around Black Friday, but December has started off slow.
The company has seen strong sell-through of the DC Brand in its partnership with JC Penney.
Staff reductions in Q3 resulted in lower SG&A expenses in Q4. Quiksilver also closed several underperforming stores in Q4. Finally, Quiksilver reduced its marketing expenses. Overall, SG&A expenses declined by 5 percent in the quarter.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063831-quiksilver-s-ceo-discusses-f4q-2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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Quiksilver is expanding its line to ship cold weather Quiksilver and Roxy products to non-coastal regions of the United States and Canada.
In Europe, Quiksilver is gaining market share as weaker brands are going out of business. Sales in Europe were slightly higher in constant currency.
Quiksilver had good promotional sales around Black Friday, but December has started off slow.
The company has seen strong sell-through of the DC Brand in its partnership with JC Penney.
Staff reductions in Q3 resulted in lower SG&A expenses in Q4. Quiksilver also closed several underperforming stores in Q4. Finally, Quiksilver reduced its marketing expenses. Overall, SG&A expenses declined by 5 percent in the quarter.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063831-quiksilver-s-ceo-discusses-f4q-2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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Saturday, December 15, 2012
Summary of Adobe Systems (ADBE) Q4/2012 Earnings Conference Call December 13, 2012
Adobe had record revenue in Q4 and fiscal year 2012.
In the Digital Media business, Adobe has seen success with Creative Cloud. Creative units grew by 13 percent, which was greater than the company's expectations. It has 326,000 paid users and over a 1 million free users. It plans to transition enterprise customers to Creative Cloud in 2013 and expects to have 1.25 million paid users by the end of 2013.
In its Document Services business, Adobe launched Acrobat XI in 2012 and Acrobat had record revenue in 2012.
Three years ago, Adobe began its Digital Marketing business. In 2012, it was a leader in analytics, online targeting and media optimization. Adobe believes Digital Marketing will be a multi-billion dollar business. Digital Marketing, however, is a lower margin business.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063941-adobe-systems-ceo-discusses-f4q-2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
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In the Digital Media business, Adobe has seen success with Creative Cloud. Creative units grew by 13 percent, which was greater than the company's expectations. It has 326,000 paid users and over a 1 million free users. It plans to transition enterprise customers to Creative Cloud in 2013 and expects to have 1.25 million paid users by the end of 2013.
In its Document Services business, Adobe launched Acrobat XI in 2012 and Acrobat had record revenue in 2012.
Three years ago, Adobe began its Digital Marketing business. In 2012, it was a leader in analytics, online targeting and media optimization. Adobe believes Digital Marketing will be a multi-billion dollar business. Digital Marketing, however, is a lower margin business.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1063941-adobe-systems-ceo-discusses-f4q-2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
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Friday, December 14, 2012
Summary of VeriFone (PAY) Q4/2012 Earnings Conference Call December 13, 2012
Q4 non-GAAP revenues increased by 18 percent, of which 4 percent was organic growth (8 percent on a constant currency basis). Non-GAAP gross margins were 44.2 percent of revenue. Non-GAAP EPS increased by 43 percent.
Revenues in North America were strong in Q4 and the company believes the region will continue to be strong for several years. There are a number of positive developments: (1) there is increased interest in EMV, (2) the multilane retail systems grew substantially and are used by a number of major retailers, (3) VeriFone is providing touchscreen systems to a number of petroleum businesses, (4) Valero is implementing VeriFone's PAYMEDIA at its corporate-operated gas stations, (5) VeriFone has successfully added couponing to its VeriFone digital network, and (6) VeriFone has implemented a system allowing customers to purchase lottery tickets at the pump in Minnesota.
VeriFone has determined that its micro-merchant initiative, SAIL, is unprofitable and has decided to discontinue it. Instead, it will focus on an indirect distribution channel to provide mobile payment solutions to micro-businesses.
Revenues in North America were strong in Q4 and the company believes the region will continue to be strong for several years. There are a number of positive developments: (1) there is increased interest in EMV, (2) the multilane retail systems grew substantially and are used by a number of major retailers, (3) VeriFone is providing touchscreen systems to a number of petroleum businesses, (4) Valero is implementing VeriFone's PAYMEDIA at its corporate-operated gas stations, (5) VeriFone has successfully added couponing to its VeriFone digital network, and (6) VeriFone has implemented a system allowing customers to purchase lottery tickets at the pump in Minnesota.
VeriFone has determined that its micro-merchant initiative, SAIL, is unprofitable and has decided to discontinue it. Instead, it will focus on an indirect distribution channel to provide mobile payment solutions to micro-businesses.
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