cpereira@noblefcm.com, Author at Channelchek

FAT Brands Inc. (FAT) – Second Quarter Post Call Commentary

Posted on August 4, 2023August 4, 2023 by cpereira@noblefcm.com

Friday, August 04, 2023

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

2Q23 Results. FAT Brands reported 2Q23 revenue of $106.8 million, up 3.9% y-o-y from $102.8 million in the year ago quarter. System-wide sales growth was 1.7%. Same Store Sales were up 1.9%. FAT reported adjusted EBITDA of $23.1 million in the quarter, compared to $29.5 million in 2Q22. Net loss for the quarter was $7.1 million, or $0.53/sh, compared to a net loss of $9.8 million, or $0.60/sh last year. Adjusted net income for the quarter was $3.0 million, or EPS of $0.08/sh, compared to a net loss of $3.1 million, or a loss of $0.29/sh, last year. We had projected revenue of $106.8 million and a net loss of $26 million, or a loss of $1.57/sh.

Development Continues. YTD, FAT has opened 66 restaurants, including 25 in 2Q and the Company remains on track to open 175 locations in 2023. YTD, over 150 new franchise agreements have been signed, bringing the total pipeline to over 1,100 signed agreements.

Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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) – Post Call Commentary: Ready to Pounce

Posted on August 4, 2023August 4, 2023 by cpereira@noblefcm.com

Friday, August 04, 2023

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Standing Ready. With its acquisitions of S3, IBA, and, most recently GRSi, DLH has truly morphed into a one stop shop platform to address a broader range of client’s solution needs with expertise in science, research and development, systems engineering, and integration.

Promising Pipeline. Although the contract award environment continues to experience some headwinds, there does appear to be some movement both with anticipated proposals from previously won ID/IQ contracts as well as normal ongoing business. Overall, we believe there is significant demand from its clients for the services DLH provides.

Get the Full Report

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

Beasley Broadcast Group (BBGI) – Digital Revenues Carry The Quarter

Posted on August 4, 2023August 4, 2023 by cpereira@noblefcm.com

Friday, August 04, 2023

Beasley Broadcast Group, Inc. owns and operates 61 stations (47 FM and 14 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Solid Q2 results. The company reported revenue of $63.5 million, in-line with our estimate of $63.7 million. Adj. EBITDA of $7.7 million, beat our estimate of $6.5 million by 18.2%. Notably, the quarter was driven by strong digital revenue growth of 14.8% and cash flow was supported by meaningful cost reductions and permanently reduced headcount.

Strong digital growth. The bulk of digital revenue growth in the quarter came from high margin content creation on the company’s owned and operated platforms. Importantly, Q2 digital accounted for 19.4% of total revenue, only slightly below management’s target of 20% to 30% for full year 2023.

Get the Full Report

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

Seanergy Maritime (SHIP) – Results better than expected and should improve in upcoming quarters

Posted on August 3, 2023August 3, 2023 by cpereira@noblefcm.com

Thursday, August 03, 2023

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Seanergy reported 2023-2Q results slightly above our expectations. Seanergy reported net revenues of $28.3 million on an average TCE rate of $18,708/day versus our estimate of $26.4 million and $18,000/day, respectively. Adjusted EBITDA and EPS were $12.7 million and $0.18 versus our estimate of $10.6 million and $0.12. Higher-than-expected results reflect strong utilization rates, high interest income, and the positive effect of debt restructuring.

The company is setting up for a strong 4Q and 2024. The company has locked in 53% of 2023-3Q shipping days at a rate of $16,710/day, slightly below 3Q rates. However, it has locked in 21% of 2023-2H days at rates above $20,000/day, implying that locked in rates will be improving in 4Q. In addition, Seanergy will take possession of a new ship in 4Q (with option to buy in a year) which management estimates will receive a 20% premium to Baltic Capesize Index prices.

Get the Full Report

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

DLH Holdings (DLHC) – Better Than Expected Third Quarter Results

Posted on August 3, 2023August 3, 2023 by cpereira@noblefcm.com

Thursday, August 03, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

3Q Results. DLH posted revenue of $102.2 million from $66.4 million last year. Excluding FEMA (negative $5.1 million impact), revenue last year was $71.6 million. GRSi contributed $34.4 million towards revenue which indicates core business decreasing $3.8 million y-o-y. Net income for DLH was $1.7 million, or $0.12 per diluted share, compared to $4.9 million, or $0.34 per share, last year. EBITDA was at $11.4 million versus $9.0 million in the prior year. We had estimated revenue of $102 million, adjusted EBITDA of $11 million, and EPS of $0.10.

Other Key Indicators. DLH produced $15.0 million in operating cash in the quarter and had cash of $0.5 million and debt outstanding under its credit facilities of $195.8 million as of June 30, 2023. The Company paid off $8.4 million of debt from the previous quarter, and the Company lowered the range on its pace to reduce its total debt balance to between $185.0-$187 million from $185.0-$190 million by the end of this fiscal year.

Get the Full Report

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

Direct Digital Holdings (DRCT) – Quarterly Preview: Expect A Noisy Quarter

Posted on August 3, 2023August 3, 2023 by cpereira@noblefcm.com

Thursday, August 03, 2023

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

Upcoming quarterly results. The company is expected to report second quarter results on Thursday, August 10th with an investor call scheduled for 5pm ET. The dial in number is (888) 350-2056.

Mixed results. We believe that the company will be in line with our revenue estimate of $29.65 million, up 39.5%, reflecting modest Buy-side advertising growth of 3.5% and strong Sell-side advertising growth of roughly 67%. Sell-side margins are expected to decline to roughly 12.5%, due to a step up in costs for additional servers. We do not believe that the increase costs will be ongoing and that Sell-side margins should rebound to the near 14% range for the balance of the year.

Get the Full Report

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

Commercial Vehicle Group, Inc. (CVGI) – Post Call Commentary – Continuing to Implement the Strategy

Posted on August 3, 2023August 3, 2023 by cpereira@noblefcm.com

Thursday, August 03, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

The Strategy is Working. We would reiterate what we have previously noted: the strategy is working. Once again, CVG posted record quarterly revenue and improved margins for the quarter. We believe CVG is at an inflection point for improved growth and margins. The Company is well on its way to achieving its 2027 goal of $1.5 billion in revenue and 9% adjusted EBITDA margin, in our view.

Continue to Add New Business. CVG recorded approximately $40 million of new business wins in the quarter, increasing the YTD number to $125 million, rapidly approaching the already upward revised 2023 goal of $150 million of new business wins. The majority of new business wins continue to be within the Electrical Systems segment.

Get the Full Report

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

Alliance Resource Partners (ARLP) – In-Line Second Quarter; Lowering Near-Term Estimates

Posted on August 2, 2023August 2, 2023 by cpereira@noblefcm.com

Wednesday, August 02, 2023

ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Second quarter financial results. Alliance reported second quarter EBITDA and earnings per unit (EPU) of $249.2 million and $1.30, respectively, compared to $246.9 million and $1.23 during the prior year period. EPU was in line with our estimate and was modestly ahead of the consensus. We had forecast EBITDA and EPU of $254.4 million and $1.30. Revenue increased 3.5% to $641.8 million, while income from operations increased 3.7% to $183.9 million. The company generated free cash flow of $153.5 million compared to $81.3 million during the prior year period and distributable cash flow provided quarterly cash distribution coverage of 1.9x.

Refined management guidance. Alliance provided updated guidance for the remainder of the year which we have incorporated into our estimates as detailed in the body of this note. Total coal sales are expected to be in the range of 35.5 million to 36.0 million tons compared to previous expectations of 36.0 million to 38.0 million tons, while the coal sales price per ton is expected to be in the range of $65 to $66 compared to previous guidance of $65 to $67. Alliance also guided to lower depreciation, depletion, and amortization, general and administrative, and income tax expense.

Get the Full Report

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

Great Lakes Dredge & Dock (GLDD) – A Top Line Miss, But Better than Expected Bottom Line

Posted on August 2, 2023August 2, 2023 by cpereira@noblefcm.com

Wednesday, August 02, 2023

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, Managing Director, Equity Research Analyst, Generalist , 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.

2Q23. Revenue came in at $132.7 million down from $149.4 million last year, and below our $150 million projection. Reported gross margin was 13.5%, up from 7% in the year ago period and our 7.3% estimate. Adjusted EBITDA for the quarter was $16.6 million, the highest since 1Q22, versus $10.2 million last year. The Company reported net income of $1.7 million, or EPS of $0.03 per share, compared to last year’s loss of $4.0 million, or a loss of $0.06 per diluted share. We had projected a net loss of $4.5 million, or a loss of $0.07 per share.

Quarter Impacts. Second quarter top line was impacted by the reduced award levels in 2022 as well as the removal of the Terrapin Island and the two cold stacked vessels. On the positive side, a better mix of revenue and the cost cutting measures implemented positively impacted the bottom line.

Get the Full Report

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

Commercial Vehicle Group, Inc. (CVGI) – A First Look at 2Q23 Results

Posted on August 2, 2023August 2, 2023 by cpereira@noblefcm.com

Wednesday, August 02, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Solid Top Line Results. CVGI had a solid quarter with revenues of $262.2 million, up 4.5% from the $250.8 million the prior year. We had revenue at $265 million. The higher revenue was driven by strong price realization, which drove revenue across three segments, partially offset by sales volume decreases in the Industrial Automation segment. Foreign currency translation favorably impacted second quarter 2023 revenues by $0.7 million, or 0.3%.

Even Better Bottom Line. Net income for the quarter was $10.1 million, or EPS of $0.30 per share. Adjusted EPS was $0.32. We had forecast net income of $8.7 million, or EPS of $0.26. New business, price realization, and cost reduction efforts all positively impacted the bottom line. Adjusted EBITDA came in at $20.8 million, or a 7.9% margin, up from $12.4 million and 4.9%.

Get the Full Report

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

Snail Inc. (SNAL) – A Bridge Toward Profitability

Posted on August 2, 2023August 2, 2023 by cpereira@noblefcm.com

Wednesday, August 02, 2023

Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

Multi-year server hosting agreement. The company disclosed a new agreement with Marbis GmbH, owner of Nitrado servers. As part of the agreement, Marbis will become the exclusive server provider for Snail’s ARK games for 7 years. In return, Marbis will make a $4.05 million interest-free loan commitment to Snail, which will serve as a bridge loan as the company builds toward positive cash flow generation.

Favorable terms. As part of the agreement, Snail will be required to repay the loan with a 20% share of all monthly gross revenue from the release of its upcoming title, ARK: Survival Ascended, until the loan balance has been repaid in full. We expect any outstanding balance to be repaid very quickly upon the game’s release in Q4.

Get the Full Report

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

LithiumBank Resources (LBNKF) – Sale of Saskatchewan Properties Keeps the Focus on Boardwalk and Park Place

Posted on August 1, 2023August 1, 2023 by cpereira@noblefcm.com

Tuesday, August 01, 2023

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Sale of Saskatchewan properties. LithiumBank executed a definitive agreement to sell the company’s three lithium brine projects in Saskatchewan, Canada to Pristine Lithium Corp. The strategic sale is expected to expedite the development of the Saskatchewan properties while allowing LithiumBank to maintain a financial interest in the properties through an ownership interest in Pristine Lithium. LithiumBank is now positioned to focus on the development of Boardwalk and Park Place in the province of Alberta without having to dilute its resources by developing multiple projects in two jurisdictions.

Financial terms. LithiumBank will receive cash consideration of C$2,000,000, including a C$250,000 deposit and an additional C$1,750,000 payable upon closing. LithiumBank will receive 40 million common shares in the capital of Pristine Lithium, or buyer shares, representing roughly 47% of the outstanding buyer shares on a post-financing basis, along with 20 million warrants, each exercisable into one buyer share for a period of two years from the date of issuance. Upon filing a NI 43-101 compliant preliminary economic assessment technical report, Pristine will issue buyer shares or cash representing C$1,000,000 of consideration to LithiumBank.

Get the Full Report

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

Saga Communications, Inc. (SGA) – A New Saga Premiers

Posted on August 1, 2023August 1, 2023 by cpereira@noblefcm.com

Tuesday, August 01, 2023

Saga Communications, Inc. is a broadcast company whose business is primarily devoted to acquiring, developing and operating radio stations, television stations and state radio networks. Saga currently owns or operates broadcast properties in 26 markets, including 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low power television stations. Saga’s strategy is to operate top billing radio and television stations in mid sized markets, defined as markets ranked (by market revenues) from 20 to 200. Saga’s radio stations employ a myriad of programming formats, including Classic Hits, Adult Contemporary, Active Rock, Oldies, News/Talk, Country and Classical. Saga’s television stations are affiliated with CBS and Fox in Joplin, MO; CBS in Greenville, MS; ABC, Fox, NBC, Telemundo and Univision in Victoria, TX. In operating its stations, Saga concentrates on the development of strong decentralized local management, which is responsible for the day-to-day operations of the stations in their market area and is compensated based on their financial performance as well as other performance factors that are deemed to effect the long-term ability of the stations to achieve financial objectives. Saga began operations in 1986 and became a publicly traded company in December 1992. The stock trades on the NYSE Amex under the ticker symbol “SGA”.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Non-deal Roadshow highlights. On July 27, Chris Forgy, CEO, and Sam Bush, CFO, hosted investor meetings in St. Louis. We believe that the management team was sanguine about favorable revenue and cash flow growth prospects. This report highlights the company’s resilient local radio operations, strong balance sheet and emergent digital revenues.

Strong local presence. The company operates primarily in small and midsize markets outside the top 50. We believe its highly localized footprint provides more revenue stability relative to its nationally focused peers. Additionally, we believe its strong local relationships will assist in accelerating digital revenue growth. Notably, management highlighted its commitment to local audiences, given its ethos is grounded in localism.

Get the Full Report

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