Category: Industrials

Release – V2X Reports Second Quarter Results with Record Revenue

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on VVX

Second Quarter and Recent Highlights

  • Record revenue of $1.07 billion, up 10% y/y
  • Operating income of $27.4 million; adjusted operating income1 of $65.8 million
  • Net loss of $6.5 million, down $8.3 million y/y
  • Adjusted EBITDA1 of $72.3 million with a margin1 of 6.7%
  • Diluted EPS of ($0.21); Adjusted diluted EPS1 of $0.83
  • Over $4 billion of recent awards, including a new award valued up to $3.0+ billion to provide next generation readiness
  •  Successfully repriced and extended $904 million Term Loan B

2024 Guidance:

  • Raising full-year revenue guidance and reaffirming Adjusted EBITDA, EPS, and Operating Cash Flow1

MCLEAN, Va., Aug. 6, 2024 /PRNewswire/ — V2X, Inc. (NYSE:VVX) announced second quarter 2024 financial results.

“I am honored to join the V2X team and look forward to leveraging our mission first culture, differentiated capabilities, and impressive past performance to achieve our next stage of growth,” said Jeremy C. Wensinger, President and Chief Executive Officer of V2X. “Our people, processes, agility and expertise to operate worldwide are a differentiator. This enables alignment to critical missions with an ability to operate at scale around the globe.”

Mr. Wensinger continued, “Demand remains strong for our mission based full lifecycle solutions and was demonstrated through several recent awards valued at over $4 billion. This includes a new five-year award valued at $3.0+ billion to deliver next generation readiness. In addition, we received a new production award from the U.S. Army for our Gateway Mission Routers valued at $49 million, an award valued at $265 million to support NASA’s operations in preparation for human spaceflight missions at the Johnson Space Center, and the award of the F-5 adversarial aircraft program from the U.S. Navy valued at $747 million.”

“Importantly, our ability to deliver a full range of assured communications has resulted in two awards, further expanding our relationship with the Navy and our footprint in the Pacific.  Our $88 million Naval Computer and Telecommunications Pacific award will provide vital C4I support to forces across the Pacific and Indian Oceans.  Our $141 million Fleet Systems Engineering Team (FSET) program will continue to deliver end-to-end C4I systems engineering solutions. FSET ensures that no U.S. Navy Strike Group deploys without V2X.”

Mr. Wensinger concluded, “V2X has great momentum and I believe there is substantial opportunity to build upon the impressive foundation by further leveraging technology and solutions to enhance business and customer outcomes.”  

Second Quarter 2024 Results 

“V2X reported record revenue of $1.07 billion in the quarter, which represents 10% year-over-year growth,” said Shawn Mural, Senior Vice President and Chief Financial Officer. “Revenue growth in the quarter was achieved through continued expansion of existing business in the Pacific and Middle East regions, as well as new programs. Revenue growth in the Pacific was 29% year-over-year and 23% on a sequential basis, driven by continued expansion of scope and services in the region. Revenue growth in the Middle East was also 29% year-over-year, driven primarily by expansion in Qatar and the continued phase-in of our longer-term Saudi Aviation Training and Support Services program.”

“For the quarter, the Company reported operating income of $27.4 million and adjusted operating income1 of $65.8 million. Adjusted EBITDA1 was $72.3 million with a margin of 6.7%. Second quarter GAAP diluted EPS was ($0.21). Adjusted diluted EPS1 for the quarter was $0.83. The adjusted tax rate in the second quarter was 28% due to the executive transition. Absent this, our adjusted tax rate would have been approximately 23% yielding adjusted EPS of $0.88.”

“Year to date, net cash used by operating activities was $31.6 million, reflective of working capital requirements to support growth. Adjusted net cash used by operating activities1 was $137.3 million, adding back approximately $12.1 million of M&A and integration costs and removing the contribution of the master accounts receivable purchase or MARPA facility of $117.8 million.”

“At the end of the quarter, net debt for V2X was $1,150 million.  Net leverage ratio1,2 was 3.56x, essentially flat  compared to the first quarter 2024. We expect to achieve a net leverage ratio of 3.0x, by the end of 2024. During the quarter, we successfully repriced and extended our $904 million Term Loan B. This outcome is a testament to the strength in our business and is yielding additional interest expense savings while lowering our overall cost of capital.”

“Total backlog as of June 28, 2024, was $12.2 billion. Funded backlog was $2.9 billion. Bookings in the quarter were $759 million. We expect backlog to increase in the second half of the year due to awards and contract definitizations.”

Raising 2024 Revenue Guidance

Mr. Mural concluded, “Given our strong revenue performance in the first half of the year we are updating our total year guidance.”

Guidance for 2024 is as follows:

The Company is not providing a quantitative reconciliation with respect to this forward-looking non-GAAP measure in reliance on the “unreasonable efforts” exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Safe Harbor Statement below. 

Second Quarter Conference Call

Management will conduct a conference call with analysts and investors at 8:00 a.m. ET on Tuesday, August 6, 2024. U.S.-based participants may dial in to the conference call at 877-506-6380, while international participants may dial 412-542-4198. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/Aba2LPOkBXe

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through August 20, 2024, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10190283.

Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the “investors” section of the company’s website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission (“SEC”) Regulation FD.

Footnotes:

1 See “Key Performance Indicators and Non-GAAP Financial Measures” for descriptions and reconciliations.
2 Net leverage ratio of 3.6x equals net debt of $1,150 million divided by trailing twelve-month (TTM) bank EBITDA of $322.7 million.

About V2X

V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Investor ContactMedia Contact
Mike Smith, CFAAngelica Spanos Deoudes
IR@goV2X.comCommunications@goV2X.com
719-637-5773571-338-5195

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statements include, but are not limited to, all the statements and items listed under “2024 Guidance” above and other assumptions contained therein for purposes of such guidance, other statements about our 2024 performance outlook, revenue, contract opportunities, and any discussion of future operating or financial performance.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “could,” “potential,” “continue” or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.  In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. For a discussion of some of the risks and uncertainties that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Click here for full report

Release – Graham Corporation Wins Over $65 Million In Defense and Space Industry Contracts for Mission Critical Turbomachinery and Cryogenic Pump Products

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on GHM

  • Secures new contract to provide the MK19 Air Turbine Pump assembly for the Columbia-class submarine
  • Wins new contract to provide cryogenic recirculation pumps for space launch vehicles
  • Awarded another option year for alternators and regulators to support the MK48 Mod 7 Heavyweight Torpedo program

BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or “the Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer, and vacuum technologies for the defense, space, energy, and process industries, today announced that it was awarded three contracts with a combined value of over $65 million.

Matthew Malone, Vice President, Graham Corporation and General Manager – Barber-Nichols, commented, “We believe the investments we have made in our engineering and operations to expand our capacity and increase our capabilities to serve the defense and space industries led to our being awarded these contracts. We differentiated our solutions through our strong customer relationships, engineering expertise, precision manufacturing capabilities and rigorous testing and qualification processes. Our solutions are vital components that meet the high-level performance requirements for mission critical applications. We appreciate our customers’ confidence to select us for these high-value projects.”

The second option year award supporting the MK48 Mod 7 Heavyweight Torpedo program was received in the first quarter of fiscal 2025 which ended June 30, 2024. The Company will continue to provide alternators and regulators for this program. The contract award for the Company to provide the MK19 air turbine pump for the torpedo ejection system on the Columbia-class submarine was awarded in the second quarter of fiscal 2025 ending September 30, 2024. This is a new program for the Company and was won through a competitive bid process.

Also awarded in the second quarter was a contract to provide the cryogenic recirculation pump that provides thermal conditioning for upper stage engines on launch vehicles in space. The products for all three of these contracts will be manufactured at the Company’s Arvada, Colorado operations.

The revenue for the contracts to provide the second-stage cryogenic recirculation pump and to support the MK48 Mod 7 Heavyweight Torpedo program will be recognized over varied periods for the next three years while revenue for the MK19 program will be recognized over varied periods for the next eight years. The revenue from these awards had been considered in the Company’s outlook for fiscal 2025.

About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.

Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “believe,” “expects,” “potential,” “will,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, winning potential future or multi-year orders, potential revenues and timing of such revenues, and delivering timely or otherwise on schedule are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

Christopher J. Thome
Vice President – Finance and CFO
Phone: (585) 343-2216

Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
dpawlowski@keiadvisors.com

Source: Graham Corporation

Released August 5, 2024

Haynes International (HAYN) – Tempering Expectations for the Remainder of FY 2024 and FY 2025

Posted on by cpereira@noblefcm.com


Monday, August 05, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

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.

Third quarter financial results. Haynes reported third-quarter fiscal 2024 net income of $8.1 million or $0.63 per share compared to $8.8 million or $0.68 per share during the prior year period. Adjusted EBITDA was $17.1 million compared to $18.7 million during the prior year period and declined as a percentage of net revenues. Third-quarter results were negatively impacted by raw material headwinds and lower mill production volumes due to fewer orders and company initiatives to reduce inventory.

Updating estimates. We have lowered our 2024 EBITDA and EPS estimates to $68.5 million and $2.52, respectively, from $77.3 million and $3.00. The revisions reflect third quarter financial results and management expectations that fourth quarter revenue and earnings will be like the third quarter due to the unfavorable impact of lower production volumes. Our 2025 EBITDA and EPS estimates were lowered to $90.5 million and $3.82, respectively, from $99.5 million and $4.15 to reflect lower revenue and margin expectations in 2025, particularly during the first half of the year.


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. 

Release – ACCO Brands Reports Second Quarter Results

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on ACCO

  • Reported net sales of $438 million, with gross margin expanding 150 basis points
  • On track to deliver over $20 million in cost savings in 2024 from multi-year cost savings program
  • Net operating cash flow improved $42 million; Anticipate free cash flow of approximately $130 million for full year 2024
  • Consolidated leverage ratio of 3.7x at quarter-end; Net debt position decreased $130 million
  • Loss per share of ($1.29) includes impairment charges; adjusted EPS of $0.37, above the Company’s outlook

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today reported financial results for its second quarter and first six-months ended June 30, 2024.

“Our prudent approach to cost management, as well as strategic improvements in our infrastructure and operational efficiencies delivered strong bottom-line results and improved cash flow and we achieved a lower leverage ratio this quarter. We’ve made significant headway with our multi-year $60 million cost reduction program and are on track to achieve more than $20 million in savings this year. While demand headwinds in certain markets persist, we expect to see a moderation in sales declines across many categories. Additionally, the second quarter was also impacted by our previously communicated exit of lower margin business primarily in our back-to-school categories. The impact of the exits will lessen throughout the remainder of 2024. With the softer than anticipated sales, we are reviewing our cost structure for additional cost reduction opportunities,” stated ACCO Brands’ President and Chief Executive Officer, Tom Tedford.

“Our results reflect an improved cost structure, better service and strengthened relationships with key customers. Over the past two years, our unwavering commitment to debt reduction has significantly improved our financial position, which will allow greater flexibility with our capital allocation priorities. We are operating effectively in a challenging environment and are actively investing in new product development while refining our strategy to enhance business performance,” concluded Mr. Tedford.

Second Quarter Results

Net sales were $438.3 million down 11.2 percent from $493.6 million in 2023. Adverse foreign exchange reduced sales by $4.7 million, or 1.0 percent. Comparable sales decreased 10.2 percent. Both reported and comparable sales declines reflect softer global business and consumer demand for our office products and gaming accessories, and our exit of lower margin business, which accounted for approximately 4.0 percent of the decline. These declines were partially offset by growth in computer accessories.

Operating loss was $111.2 million versus operating income of $55.2 million in 2023 primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets, within the Americas segment. Adjusted operating income was $64.6 million down from $66.2 million in 2023. Both reported and adjusted operating income declines reflect lower sales volume, which were partially offset by moderating product costs, improved product mix and the impact of SG&A cost reduction initiatives and lower incentive compensation expense.

Net loss was $125.2 million, or $(1.29) per share, compared with prior-year net income of $26.4 million, or $0.27 per share, in 2023. The net loss is primarily due to the non-cash charges of $165.2 million related to goodwill and intangible assets. Adjusted net income was $36.6 million compared with $36.5 million in 2023, and adjusted earnings per share of $0.37 per share, compared to $0.38 in the prior year.

Business Segment Results

ACCO Brands Americas – Second quarter segment net sales of $292.3 million decreased 13.1 percent from $336.4 million in the prior year, and comparable sales declined 12.7 percent. Both reported and comparable sales decreases reflect softer business and consumer demand for our office products and gaming accessories, and our exit of lower margin business, which accounted for approximately 5.0 percent of the decline. These declines were partially offset by growth in computer accessories.

Second quarter operating loss was $108.7 million versus operating income of $60.4 million a year earlier, primarily due to the non-cash charges of $165.2 million related to goodwill and intangible assets. Adjusted operating income was $63.2 million, down from $66.8 million in the prior year. Both reported and adjusted operating income declines reflect lower sales volume, partly offset by moderating product costs, improved product mix and lower SG&A expense due to cost reduction initiatives and lower incentive compensation.

ACCO Brands International – Second quarter segment net sales of $146.0 million decreased 7.1 percent from $157.2 million in the prior year. Adverse foreign exchange reduced sales by 2.0 percent. Comparable sales were $149.2 million, down 5.1 percent versus the prior year. Both reported and comparable sales decreases reflect reduced business and consumer demand for our office products, partially offset by the benefit of price increases and growth in computer accessories.

Second quarter operating income was $7.8 million, an increase from $7.1 million in the prior year, with adjusted operating income of $11.7 million, flat with the prior year. This reflects moderating product costs and the cumulative benefit of pricing and cost actions offsetting the impact of lower sales volume.

Six Month Results

Net sales were $797.2 million down 11.0 percent from $896.2 million in 2023. Adverse foreign exchange reduced sales by $3.0 million, or 0.3 percent. Comparable sales decreased 10.7 percent. Both reported and comparable sales declines reflect softer global business and consumer demand for our office products and technology accessories, and our exit of lower margin business, which accounted for approximately 3.0 percent of the decline.

Operating loss was $105.3 million versus operating income of $65.3 million in 2023, primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets within the Americas segment. Adjusted operating income was $80.8 million, down from $90.5 million in 2023. Both reported and adjusted operating income (loss) declines reflect lower sales volume, partially offset by moderating product costs and the cumulative effect of cost reduction initiatives and lower incentive compensation expense resulting in lower SG&A expense.

Net loss was $131.5 million, or $(1.37) per share, compared with a net income of $22.7 million, or $0.23 per share, in 2023, primarily due to the non-cash impairment charges of $165.2 million related to goodwill and intangible assets. Adjusted net income was $39.2 million compared with $45.0 million in 2023, and adjusted earnings per share were $0.40 per share compared with $0.47 per share in 2023.

Capital Allocation and Dividend

Year to date, the Company significantly improved its operating cash flow to $2.6 million versus a cash outflow of $39.3 million in the prior year, driven primarily by working capital. The Company’s consolidated leverage ratio as of June 30, 2024, was 3.7x, versus 4.3x at the end of the prior year second quarter.

On July 26, 2024, ACCO Brands announced that its board of directors declared a regular quarterly cash dividend of $0.075 per share. The dividend will be paid on September 4, 2024, to stockholders of record at the close of business on August 16, 2024.

Full Year 2024 and Third Quarter Outlook

The Company is updating its full year 2024 outlook and providing a third quarter outlook. For the full year the Company now expects reported sales to be down in the range of 8.0% to 9.0%. Full year adjusted EPS is expected to be within a range of $1.04 to $1.09. The Company expects 2024 free cash flow of approximately $130 million with a year-end consolidated leverage ratio of approximately 3.0x to 3.2x.

In the third quarter, the Company expects reported sales to be down in the range of 5.0% to 7.0%, and adjusted EPS within a range of $0.21 to $0.24.

Webcast

At 8:30 a.m. ET on August 2, 2024, ACCO Brands Corporation will host a conference call to discuss the Company’s second quarter 2024 results. The call will be broadcast live via webcast. The webcast can be accessed through the Investor Relations section of www.accobrands.com . The webcast will be in listen-only mode and will be available for replay following the event.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, and play. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com .

Non-GAAP Financial Measures

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this earnings release to aid investors in understanding the Company’s performance. Each non-GAAP financial measure is defined and reconciled to its most directly comparable GAAP financial measure in the “About Non-GAAP Financial Measures” section of this earnings release.

Forward-Looking Statements

Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, and those relating to cost reductions and anticipated pre-tax savings and restructuring costs are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to us at the time such statements are made. These statements, which are generally identifiable by the use of the words “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “forecast,” “project,” “plan,” and similar expressions, are subject to certain risks and uncertainties, are made as of the date hereof, and we undertake no duty or obligation to update them. Forward-looking statements are subject to the occurrence of events outside the Company’s control and actual results and the timing of events may differ materially from those suggested or implied by such forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements when deciding whether to buy, sell or hold the Company’s securities.

Our outlook is based on certain assumptions which we believe to be reasonable under the circumstances. These include, without limitation, assumptions regarding the impact of inflation and global geopolitical and economic uncertainties and fluctuations in foreign currency exchange rates; and the other factors described below.

Among the factors that could cause our actual results to differ materially from our forward-looking statements are: a limited number of large customers account for a significant percentage of our sales; sales of our products are affected by general economic and business conditions globally and in the countries in which we operate; risks associated with foreign currency exchange rate fluctuations; challenges related to the highly competitive business environment in which we operate; our ability to develop and market innovative products that meet consumer demands and to expand into new and adjacent product categories that are experiencing higher growth rates; the long-term impacts of the COVID-19 pandemic; our ability to successfully expand our business in emerging markets and the exposure to greater financial, operational, regulatory, compliance and other risks in such markets; the continued decline in the use of certain of our products; risks associated with seasonality; the sufficiency of investment returns on pension assets, risks related to actuarial assumptions, changes in government regulations and changes in the unfunded liabilities of a multi-employer pension plan; any impairment of our intangible assets; our ability to secure, protect and maintain our intellectual property rights, and our ability to license rights from major gaming console makers and video game publishers to support our gaming accessories business; our ability to successfully execute our multi-year restructuring and cost savings program and realize the anticipated benefits; continued disruptions in the global supply chain; risks associated with inflation and other changes in the cost or availability of raw materials, transportation, labor, and other necessary supplies and services and the cost of finished goods; risks associated with outsourcing production of certain of our products, information technology systems and other administrative functions; the failure, inadequacy or interruption of our information technology systems or its supporting infrastructure; risks associated with a cybersecurity incident or information security breach, including that related to a disclosure of personally identifiable information; our ability to grow profitably through acquisitions, and successfully integrate them; risks associated with our indebtedness, including limitations imposed by restrictive covenants, our debt service obligations, and our ability to comply with financial ratios and tests; a change in or discontinuance of our stock repurchase program or the payment of dividends; product liability claims, recalls or regulatory actions; the impact of litigation or other legal proceedings; the impact of additional tax liabilities stemming from our global operations and changes in tax laws, regulations and tax rates; our failure to comply with applicable laws, rules and regulations and self-regulatory requirements, the costs of compliance and the impact of changes in such laws; our ability to attract and retain qualified personnel; the volatility of our stock price; risks associated with circumstances outside our control, including those caused by telecommunication failures, labor strikes, power and/or water shortages, public health crises, such as the occurrence of contagious diseases, severe weather events, war, terrorism and other geopolitical incidents; and other risks and uncertainties described in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and in other reports we file with the Securities and Exchange Commission.

Click here for full report

Haynes International (HAYN) – Third Quarter Negatively Impacted by Lower Production and Raw Material Headwinds

Posted on by cpereira@noblefcm.com


Friday, August 02, 2024

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

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.

Third quarter financial results. Haynes reported third-quarter fiscal 2024 net income of $8.1 million or $0.63 per share compared to $8.8 million or $0.68 per share during the prior year period. Adjusted EBITDA was $17.1 million compared to $18.7 million during the prior year period and declined as a percentage of net revenues. Third-quarter results were negatively impacted by raw material headwinds and lower mill production volumes due to fewer orders and company initiatives to reduce inventory. Strong operating cash flow of $52.5 million supported reducing the balance of the company’s credit facility by $24.2 million during the first nine months of fiscal 2024.

Merger Update. With respect to Haynes’ proposed merger with North American Stainless, Inc., a wholly owned subsidiary of Acerinox S.A., required approvals in the United States have been obtained. Following favorable decisions by European countries reviewing the transaction from a foreign direct investment (FDI) perspective, the company expects to obtain remaining required clearances from the U.K. and Austria in time for a fourth calendar quarter 2024 transaction close.


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. 

FreightCar America (RAIL) – Multi-Year Tank Car Conversion Contract Provides a Solid Path Toward Tank Car Production

Posted on by cpereira@noblefcm.com


Friday, August 02, 2024

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.

Expansion into tank car conversions. FreightCar America has entered into a multi-year contract to convert over 1,000 existing DOT-111 tank cars to DOT-117R (retrofit) tank cars over a two-year period. In addition to further diversifying its product offerings, the expansion into tank car conversions provides a solid path toward M-1002 tank car facility certification by the Association of American Railroads and the production of DOT-117 tank cars. 

Ensuring the safe transportation of flammable liquids. The completed tank cars will receive new exterior tank jackets, thermal protection, full height head shields, top fittings protection and upgraded bottom outlet valves. As part of a federally mandated program, all tank cars transporting Class 3 flammable liquids, such as refined products, crude oil and ethanol, are required to meet DOT-117 or equivalent specifications by May 1, 2029.


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. 

Release – Seanergy Maritime Announces the Date for the Second Quarter and Six Months Ended June 30, 2024 Financial Results, Conference Call and Webcast

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on SHIP

Earnings Release: Tuesday, August 6, 2024, Before Market Open in New York
Conference Call and Webcast: Tuesday, August 6, 2024, at 11:00 a.m. Eastern Time

GLYFADA, Greece, Aug. 01, 2024 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) announced today that it will release its financial results for the second quarter and six months ended June 30, 2024, prior to the open of the market in New York on Tuesday, August 6, 2024.

Seanergy’s senior management will conduct a conference call and simultaneous Internet webcast to review these results on Tuesday, August 6, 2024 at 11:00 a.m. Eastern Time.

Audio Webcast and Earnings Presentation:
There will be a live, and then archived, webcast of the conference call and accompanying presentation available through the Company’s website. To access the presentation and listen to the archived audio file, visit our website, following the Webcast & Presentations section under our Investor Relations page. Participants to the live webcast should register on Seanergy’s website approximately 10 minutes prior to the start of the webcast, by following this link.

Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.

About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a prominent pure-play Capesize ship-owner publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 18 vessels (1 Newcastlemax and 17 Capesize) with an average age of approximately 13.4 years and an aggregate cargo carrying capacity of approximately 3,236,212 dwt. Upon completion of the delivery of the previously announced Capesize vessel acquisition, the Company’s operating fleet will consist of 19 vessels (1 Newcastlemax and 18 Capesize) with an aggregate cargo carrying capacity of approximately 3,417,608 dwt.

The Company is incorporated in the Republic of 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”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including with respect to market trends and vessels we have agreed to acquire. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, impacts of litigation, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from war (or threatened war) or international hostilities, such as between Israel and Hamas and Russia and Ukraine; risks associated with the length and severity of pandemics (including COVID-19), including their effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
Email: seanergy@capitallink.com

Release – FreightCar America, Inc. Announces Expansion into Tank Cars Securing Multi-Year Order

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on RAIL

  • New agreement leverages FreightCar America’s capabilities by adding tank car conversions to diversified offerings
  • Optimized production capacity at state-of-the-art manufacturing campus supporting large-scale multi-year projects
  • Each tank car will be upgraded to meet the latest federally mandated advancements, ensuring optimal safety, efficiency, and performance

CHICAGO, Aug. 01, 2024 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a pure-play manufacturer of high-quality railcars with a legacy of 120+ years, proudly announces that it has entered into a multi-year agreement to convert tank cars to upgraded specifications. The Company’s storied history includes a strong foundation including deliveries of over 15,000 conversions and rebodied railcars that have paved the way for this landmark agreement. This expansion into tank car conversions marks a key milestone in the Company’s ongoing efforts to diversify its product offerings while continuing to support its legacy and meet customer needs.

The scope of this agreement includes the upgrade of over 1,000 existing DOT 111 tank cars to DOT 117R tank cars over a two-year period. The completed tank cars will receive new exterior tank jacket, thermal protection, full height head shields, top fittings protection and upgraded bottom outlet valves. As part of a federally mandated program, all tank cars transporting certain hazardous and flammable liquids must be upgraded by 2029. This demonstrates the Company’s capability as a reliable partner in large-scale projects, while underscoring the Company’s commitment to meeting the evolving needs of the rail transportation market and solidifying its position as a key player in the industry.

“We are excited to enter the tank car space with this significant multi-year conversion order. Coupled with our prominent history in railcar modifications, our commitment to large-scale projects made us an excellent partner for the deal. Our Castaños facility has the capacity to handle these modifications efficiently, minimizing the number of cars out of service at any given time,” commented Nick Randall, CEO of FreightCar America.

“This expansion broadens our robust offerings of railcars, enhances our opportunity to expand our business, and equips us to grow our addressable market and customer base. We are committed to quality and reliability in large-scale projects as we continue to set new standards in manufacturing and commercial excellence,” Randall concluded.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Investor Contact RAILIR@Riveron.com

DLH Holdings (DLHC) – A Look into the Third Quarter

Posted on by cpereira@noblefcm.com


Thursday, August 01, 2024

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, CFA, 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. Revenue was reported at $100.7 million, below our estimate of $103 million and down from the prior year of $102.2 million. Net income was $1.1 million, or $0.08 per diluted share, compared to $1.7 million, or $0.12 last year. EBITDA was roughly $10.0 million versus $11.4 million in the prior year, or a margin of 10.0% and 11.1%, respectfully, in range of management’s expectations.

Delays. The GRSi acquisition continues to experience anticipated runoff of DLH’s small business set-aside awards, as these contracts transitioned towards small businesses impacting overall revenue. The government evaluation process also has resulted in delays for new business revenue for the Company in fiscal 2024. However, with the budgets passed earlier in the year for various government departments, including the VA and HHS, we expect DLH to be awarded new contracts sooner rather than later.


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).

Release – Great Lakes Dredge and Dock Corporation Schedules Announcement of 2024 Second Quarter Results

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on GLDD

HOUSTON, July 30, 2024 (GLOBE NEWSWIRE) — Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) today announced that it will release the financial results for its three and six months ended June 30, 2024 on Tuesday, August 6, 2024 at 7:00 a.m. C.D.T. A conference call with the Company will be held the same day at 9:00 a.m. C.D.T.

Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.

To pre-register, go to https://register.vevent.com/register/BI42711de8d7e8491e97341de99dae6b10

The live call and replay can also be heard at https://edge.media-server.com/mmc/p/ffnisqsp or on the Company’s website, www.gldd.com, under Events on the Investor Relations page. A copy of the press release will be available on the Company’s website.

The Company
Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) 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 134-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.

For further information contact:
Tina Baginskis
Director, Investor Relations
630-574-3024

SKYX Platforms (SKYX) – Coming to Home Depot

Posted on by cpereira@noblefcm.com

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

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

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

Collaboration with Home Depot. Yesterday, the company announced a collaboration with Home Depot, the industry leader in the home improvement market. The announcement marks the first time the company’s products will be available at a big box retailer. In addition, all of the company’s current product offerings will be available on the Home Depot website. 

Step forward for professional sales channel. In addition to serving retail consumers, Home Depot is a leading supplier for professional contractors. As such, we believe the inclusion of SKYX products at Home Depot could accelerate the adoption of the smart ceiling receptacle and SkyPlug products by commercial contractors.


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. 

Release – FreightCar America, Inc. To Release Second Quarter Results On August 12, 2024

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on RAIL

CHICAGO, July 29, 2024 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL), a diversified manufacturer of railroad freight cars, today announced that it will release its second quarter 2024 financial results on Monday, August 12, 2024 after the market close. The conference call and live webcast will be held on Tuesday, August 13 at 11:00 a.m. (Eastern Time), and will be available on the Investor Relations page of the Company’s website at www.freightcaramerica.com.

Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call which can be accessed at:

Event URL: https://viavid.webcasts.com/starthere.jsp?ei=1678919&tp_key=7f0a694b35

Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call. Interested parties may also participate in the call by dialing (877) 407-0789 or (201) 689-8562. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.

An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, August 13, 2024, until 11:59 p.m. (Eastern Time) on Tuesday, August 27, 2024. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13747591. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Investor ContactRAILIR@Riveron.com

Source: FreightCar America, Inc.

V2X (VVX) – Some New Awards; Refined Projections

Posted on by cpereira@noblefcm.com


Monday, July 29, 2024

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, CFA, 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.

New Awards. Returning to a continuing theme, V2X recently has been awarded some significant new and re-compete business. We believe the awards demonstrate the Company’s ability to compete, and win, in the converged environment.

GMR Award. Notably, on July 22nd V2X secured a $48.5 million ID/IQ contract with the U.S. Army for V2X’s Gateway Mission Router. This is a significant award, in our view, as it highlights V2X’s ability to deliver cutting edge solutions to its partners and expands the number of platforms on which GMR can reside. In addition, margins on the GMR product should be additive to the Company’s overall margin profile.


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.