Month: May 2022

RCI Hospitality Holdings (RICK) – Sweet Home Alabama

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Friday, May 06, 2022

RCI Hospitality Holdings (RICK)
Sweet Home Alabama

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Adding more Restaurants. RCI Hospitality announced the signing of a franchise agreement for Bombshells Restaurant & Bar that brings three franchise locations of the restaurant to the state of Alabama. The franchisee of the locations will be a newly established entity by Jerry Westland, a hospitality entrepreneur who owns nightclubs, bars, and restaurants. These locations will be opening over the next five years, with the first one being placed in Huntsville.

Continuing to Grow Bombshells. This announcement is a testament to RCI’s strategy of expanding Bombshells into various states as well as expanding on the franchising model for the restaurant. Recall, management’s goal is to have 80-100 locations over the next five years, and the Company is actively looking at different areas of Texas and Florida in which to expand the brand….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Lee Enterprises (LEE) – Results Validate Its Digital Growth Strategy

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Friday, May 06, 2022

Lee Enterprises (LEE)
Results Validate Its Digital Growth Strategy

Lee Enterprises, Incorporated provides local news, information, and advertising primarily in midsize markets in the United States. It publishes 49 daily newspapers, as well as offers 300 weekly newspapers and specialty publications in 23 states. The company also provides online advertising and services; and online infrastructure and online publishing services for approximately 1,500 daily and weekly newspapers and shoppers. In addition, it offers commercial printing services. The company has a strategic alliance with Yahoo!, Inc. to provide its classified employment advertising customer base the opportunity to post job listings and other employment products on Yahoo!s HotJobs national platform. Lee Enterprises, Incorporated was founded in 1890 and is based in Davenport, Iowa.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A little light, but not worrisome. Fiscal Q2 revenues of $190.0 million was slightly less than our $191.2 million estimate. The results reflected better-than-expected growth in its Digital businesses and weaker results in its print advertising business. Adj. EBITDA was $16.9 million versus our $17.8 million estimate. 

Digital excels. Total Digital revenues were $58.1 million, 7% better than our expectation, and represented 31% of total company revenues, up from 27% in fiscal Q1. The strong results were driven by Digital Only Subscription revenue, up 44.7% to $32.9 million, an impressive 26% above expectations. Amplified, its digital agency business, increased revenues 108%. We believe that the strong Digital growth validates the company’s Digital investments and its growth strategy. …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Genco Shipping (GNK) – Reaping the benefits of a favorable environment

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Friday, May 06, 2022

Genco Shipping (GNK)
Reaping the benefits of a favorable environment

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Revenues benefit from a favorable shipping environment. Revenues rose 55% to $136.2 million, slightly above our forecast of $133.8 million. EBITDA of $58.0 million, up 181%, was slightly below our $60.4 million estimate due to higher operating costs. Net income for the quarter was $41.9 million ($0.97 per share) versus $2.0 million ($0.05) last year, slightly below our estimate of $44.0 million ($1.03). 

Management is making good use of higher cash flow. The company took delivery of two vessels in the quarter, reduced debt by $48.75 million and raised the quarterly dividend 18% to $0.79 per share (14% yield). …

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FAT Brands Inc. (FAT) – All Together Now – 1Q22 Results

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Friday, May 06, 2022

FAT Brands Inc. (FAT)
All Together Now – 1Q22 Results

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q22 Results. For the first time, all of FAT Brands’ acquisitions were together for a quarter. The Company reported 1Q22 revenue of $97.4 million up from $74.2 million in the fourth quarter, and compared to $6.6 million in 1Q21. The increased revenue reflects the 2022 acquisitions. FAT reported adjusted EBITDA of $15.1 million in 1Q22. Net loss for the quarter was $23.8 million, or $1.45 per share. We had projected revenue of $83 million and a net loss of $12.3 million, or $0.85 per share.

Solid Performance. The restaurant operations continue to post solid performance. Systemwide sales hit $504.9 million from $114.5 million a year ago, driven by the acquisitions. Notably SSS for concepts owned for a year were up 16.8%, and including all locations, were up 11.8%….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Entravision Communications (EVC) – In A Strong Growth Mode

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Friday, May 06, 2022

Entravision Communications (EVC)
In A Strong Growth Mode

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Exceeds expectations. While revenues were largely in line with expectations, the company overachieved our adj. EBITDA estimate. Total company revenues increased a very strong 32% to $197.2 million (vs our $198.3 million estimate) and adj. EBITDA increased an impressive 28% to $18.1 million (vs our $16.1 million estimate). 

Digital on fire. The company’s digital businesses, which contributed 78% of total company revenue, increased a strong 51%. The company is executing on an attractive Digital growth strategy of expanding reach into new countries and territories and expanding commercial partnerships. In addition, the company is expanding its programmatic ad tech platform into new territories as well.  …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

DLH Holdings (DLHC) – Solid Core Operating Results

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Friday, May 06, 2022

DLH Holdings (DLHC)
Solid Core Operating Results

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2QFY22 Results. Revenue totaled $108.7 million, up from $61.5 million in 2Q21. The short-term FEMA awards accounted for $39.8 million of the increase. Earnings were $7.2 million, or $0.50 per diluted share, compared to $2.6 million, or $0.19 per diluted share last year. Ex FEMA, DLH would have reported net income of $3.1 million, or $0.22 per share. We had projected revenue of $95.2 million and EPS of $0.33.

Nice Underlying Growth. Ex FEMA, the underlying business grew 12.1%, in excess of the overall market growth rate. DLH experienced continued growth in its VA-related contracts, as well as HHS programs, with Head Start revenue jumping $2 million sequentially and $1.5 million y-o-y. Demand for DLH’s services continues to increase across the board….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – A Timely, Smart Move To Buyback Stock

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Friday, May 06, 2022

Cumulus Media (CMLS)
A Timely, Smart Move To Buyback Stock

Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Launches Dutch Auction. The company announced that it will be commencing a Dutch Auction tender offer for up to $25 million of class A common stock, at a share price of no greater than $16.50 and no less than $14.50. The offer is set to run from May 6th to June 3rd of 2022, unless extended or terminated earlier by the company. 

Attractive valuation. We view the move favorably given the compelling valuation of the CMLS shares. Moreover, the announcement signals that management is taking an aggressive approach to return capital to shareholders.    …

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Coeur Mining (CDE) – First Quarter Miss; Upside Remains Despite Lowered Price Target

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Friday, May 06, 2022

Coeur Mining (CDE)
First Quarter Miss; Upside Remains Despite Lowered Price Target

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter 2022 results. Coeur reported a first quarter adjusted net loss of $13.8 million or $(0.05) per share, compared to net income of $13.9 million, or $0.06 per share during the prior year period, and our loss estimate of $7.9 million, or $(0.03) per share. Coeur reported full year adjusted EBITDA of $41.5 million compared to our estimate of $40.5 million. First quarter sales included 1.8 million ounces of silver and 28,242 million ounces of gold. Coeur’s gold hedging program now covers 70% of its 2022 expected gold production at an average forward price of $1,955 per ounce and 38% of its 2023 expected gold production at an average forward price of $1,982 per ounce.

Updating estimates. While we have lowered our full year 2022 EPS estimate to $0.02 from $0.05 to reflect first quarter results and higher interest expense, our EBITDA estimate has been increased to $182.1 from $180.9 to reflect adjustments, including to amortization. During the quarter, Coeur bolstered its balance sheet by increasing available borrowing capacity under its revolving credit facility to $390 million from $300 million and completed a $100 million at-the-market equity offering with the sale of roughly 22 million shares. As of May 2, there were 280,806,345 shares issued and outstanding. For the balance of the year, we expect Coeur to lean on its borrowing capacity if needed. …

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Baudax Bio (BXRX) – First Quarter 2022 Reported; Slow But Steady Progress

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Friday, May 06, 2022

Baudax Bio (BXRX)
First Quarter 2022 Reported; Slow But Steady Progress

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q 2022 revenues reported. Late Wednesday the 4th, Baudax Bio released their 1Q 2022 results and held a conference call early on the 5th.  Revenues of $.422 million, somewhat due to timing differences, missed our estimate of $.577 million.  Covid still muted Q1 procedures, but procedure growth showed signs of life late in the quarter.

Company reduced headcount and expenses. In March, the Company implemented a reduction in force (RIF) workplace plan to curtail expenses and reduce need for capital. Intended to reduce operating costs in connection with ANJESO commercialization, the company expects approximately $4.0 million in severance and related costs to be taken by end of 2Q 2022, of which approximately $1.7 million was taken late in Q1. Cash burn will be substantially reduced in 2H 2022 and beyond. The company is evaluating possible partnering options which will further reduce cash needs.

…

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Axcella Therapeutics (AXLA) – First Quarter Loss As Expected, Milestones Expected in 2H22

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Friday, May 06, 2022

Axcella Therapeutics (AXLA)
First Quarter Loss As Expected, Milestones Expected in 2H22

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Axcella Reported 1Q Financial Results. Axcella reported a loss of $19.0 million or $(0.46) per share for the quarter ended March 31, 2022, hitting our estimated loss of $19.0 million.  During the quarter, the company completed a $25 million offering,  bringing cash to $63.2 million at the end of the quarter.  Based on our FY 2022 quarterly estimates, we expect the company to have sufficient cash through 2023.

We Continue To Expect Interim Data From EMMPACT.  Axcella is currently conducting a Phase 2b study testing AXA1125 in non-alcoholic steatohepatitis (NASH). The trial tests two doses against placebo with a target enrollment of 270 patients. Enrollment began in April 2021, with an interim analysis expected in mid-2022.  AXA1125 has received Fast Track designation from the FDA in this indication….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Alvopetro Energy (ALVOF) – April production levels remain on target

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Friday, May 06, 2022

Alvopetro Energy (ALVOF)
April production levels remain on target

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Alvopetro reported April sales volumes of 2,494 barrel of oil equivalent per day (boepd). Results were slightly below March sales volumes of 2,512 boepd and March quarter levels of 2,501 boepd reflecting natural well production declines. Results were slightly above the 2,461 boepd rate we have modeled for the June quarter. The completion of the 182-C1 well in March and the expected completion of the 183-B1 well in May should offset normal well declines and boost overall production going forward.

Alvopetro anticipates announcing 2022-1Q results after market close on May 12th. Management will host a call with investors on May 13th at 10:00 EST. We are expecting revenues of $13.3 million, a 110% annual and 45% sequential increase due mainly to an increase in the price of gas received. We look for EBITDA of $11 million and earnings of $5.9 million ($0.17 per share)….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Great Lakes Dredge & Dock (GLDD) – Solid 1Q22 Sets the Table for 2022

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Thursday, May 05, 2022

Great Lakes Dredge & Dock (GLDD)
Solid 1Q22 Sets the Table for 2022

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q22 Operating Results. Revenue of $194.4 million exceed our $176 million estimate and consensus $170 million, partly due to the pull forward of certain business. Margin was a little lighter than projections due to dry dockings and weather issues that restricted work. Nonetheless, adjusted EBITDA for the quarter was $29.7 million versus our $32.7 million estimate. EPS for the quarter was $0.17 compared to our estimate of $0.18.

Favorable Environment. The operating environment remains favorable. The Omnibus Appropriations Bill for fiscal year 2022 included funding for the U.S. Army Corps of Engineers totaling $8.3 billion for fiscal year 2022, an increase of $548 million above the fiscal year 2021 level and an increase of $1.6 billion above the President’s original budget request….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – A Sanguine Outlook

Posted on by Admin

Thursday, May 05, 2022

Cumulus Media (CMLS)
A Sanguine Outlook

Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 406 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,500 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A solid quarter. Q1 revenues increased a strong 15% to $232.0 million, above our $227.2 million estimate. Adj. EBITDA was $31.2 million, above our $22.2 million estimate.  The Revenues and Adj. EBITDA results benefited from a $5 million in pull forward revenues and adj. EBITDA as a results of the cancelled Wynbet contract. Notably, the company would have beat our Adj. EBITDA estimate, without the adjustment.

Tweaking 2022 estimates upward. We are flowing through a portion of the Q1 upside to our full year 2022 estimates. We are raising our full year 2022 adj. EBIDA estimate from $173.7 million to $175.1 million. At this time, we are maintaining our full year 2023 estimates. …

This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.