Perficient (NASDAQ: PRFT), a global digital consultancy renowned for its transformative solutions for enterprises and brands, has made headlines with its recent announcement of an acquisition agreement. The company is set to be acquired by an affiliate of BPEA Private Equity Fund VIII, part of EQT AB, a prominent global investment organization. This all-cash transaction, valued at approximately $3.0 billion, marks a significant milestone for Perficient and its shareholders.
Key Details of the Acquisition:
Perficient has entered into a definitive agreement with EQT AB for acquisition in an all-cash transaction.
The deal values Perficient at an enterprise value of approximately $3.0 billion.
Perficient stockholders will receive $76 per share, representing a remarkable 75% premium to Perficient’s closing stock price on April 29.
The transaction has been unanimously approved by Perficient’s board of directors and is expected to close by the end of the year.
Rationale Behind the Acquisition:
Jeffrey Davis, Chairman of the Board of Perficient, highlighted the comprehensive review conducted by the board to maximize value for shareholders.
The acquisition provides shareholders with compelling, certain cash value for their shares while enabling Perficient to continue supporting clients in achieving business success.
By partnering with EQT, Perficient aims to leverage resources and expertise to accelerate its growth trajectory and enhance its position as a global digital consultancy leader.
Impact on Perficient and Shareholders:
Following the transaction’s closure, Perficient will transition from being a publicly traded company on NASDAQ to a private entity.
The company plans to remain headquartered in St. Louis, with Tom Hogan continuing in his role as CEO and the current management team expected to stay onboard.
Perficient’s commitment to delivering innovative digital transformation solutions remains unwavering, supported by EQT’s strategic backing.
Market Response and Guidance Withdrawal:
The announcement of the acquisition propelled Perficient’s stock, with PRFT surging more than 50% in early Monday trading.
In response to the acquisition news, Perficient withdrew its guidance for the full year, reflecting the transformative nature of the impending transaction.
Perficient’s acquisition by EQT marks a pivotal moment in the company’s journey, reflecting its commitment to maximizing shareholder value and accelerating growth. With a focus on delivering innovative digital solutions, Perficient remains poised to continue its legacy of excellence in the ever-evolving digital landscape. As the transaction progresses, stakeholders eagerly anticipate the next chapter in Perficient’s evolution under EQT’s strategic stewardship.
Noble Capital Markets, a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving emerging growth companies, is pleased to present the Basic Industries Virtual Equity Conference Emerging Growth Virtual Equity Conference, taking place September 25th and 26th, 2024. This virtual gathering is set to be an immersive experience, bringing together a unique blend of investors, industry leaders, and experts in various sectors surrounding the natural resources, energy, industrials, and transportation spaces.
Part of Noble’s Robust 2024 Events Calendar
The Natural Resources, Energy, Industrials, and Transportation Emerging Growth Virtual Equity Conference is part of Noble’s 2024 event programming, featuring a range of c-suite interviews, in-person non-deal roadshows throughout the United States, two other sector-specific virtual equity conferences, and culminating in Noble’s preeminent in-person investor conference, NobleCon20, to be held at Florida Atlantic University in Boca Raton, Florida December 3-4. Learn more about NobleCon20 here.
The Natural Resources, Energy, Industrials, and Transportation Emerging Growth Virtual Equity Conference will feature 2 days of corporate presentations from up to 50 innovative public companies, showcasing their latest advancements and investment opportunities. Each presentation will be followed by a fireside-style Q&A session proctored by one of Noble’s analysts or bankers, with questions taken from the audience during the presentation. Panel presentations are planned, featuring key opinion leaders in these sectors, providing valuable insights on emerging trends. Scheduled one-on-one meetings with public company executives, coordinated by Noble’s dedicated Investor Outreach team, are also available to qualified investors.
Why Your Company Should Present
Looking to increase awareness in your company and increase liquidity? Paid participation in Noble’s investor conferences, both virtual and in-person, provides that opportunity, with a tailored experience aimed at delivering substantial value. After 40 years of serving emerging growth companies, and the investors who follow them, Noble has built an investor base eager to discover where the next success story lies.
Noble’s investor base is relevant and, in many cases, new to your company. Noble’s dedicated Investor Outreach team provides unmatched exposure to investors that can invest in your company, including small money managers, family offices, RIAs, wealth managers, self-directed investors, and institutions. Most of Noble’s investors specifically seek undervalued, overlooked, emerging investment opportunities.
The cost to present includes your corporate presentation with a Q&A session proctored by one of Noble’s analysts or bankers, a webcast recording, scheduled 1×1 meetings with qualified investors, and marketing on Channelchek.
Benefits for Investors
Hear directly from the c-suite of the next innovators in natural resources, energy, industrials, and transportation and learn about new investment opportunities. The Q&A portion of each presentation gives you the opportunity to have your questions answered during or after the proctored session. The planned panel presentations are sure to provide expert insight on growing trends in these spaces. And, for qualified investors, one-on-one meetings are available with company executives; scheduled by Noble’s dedicated Investor Outreach team. All from the comfort of your own desk, and at no cost.
Transaction expected to close the third quarter of 2024
FLORHAM PARK, N.J. — Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, today announced an agreement to sell its Casualty Claims Solutions business to MedRisk, the nation’s largest managed care organization dedicated to the physical rehabilitation of workers’ compensation patients.
The sale, for $240 million in cash, subject to customary adjustments, consists of Conduent’s workers’ compensation and auto casualty bill review solutions and services that includes the processing of medical bills and clinical services, and its portfolio of Strataware bill review software products. In 2023, the business, with approximately 100 clients across multiple markets, processed approximately 29 million medical bills.
As part of this transaction, current Conduent employees in the Casualty Claims Solutions business will join MedRisk. Conduent will continue to provide mailroom services for current casualty claims clients including MedRisk. The transaction is expected to close in the third quarter of 2024, subject to the satisfaction of customary closing conditions and regulatory approvals.
“This transaction is an additional example of the significant progress we have made in our strategy to streamline our portfolio while increasing our focus on core capabilities to fuel Conduent’s growth,” said Cliff Skelton, Conduent President and CEO. “MedRisk is well-established in the workers’ compensation industry, and we are confident in a seamless transition for our associates and clients.”
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com .
About MedRisk
Based in King of Prussia, Pennsylvania, MedRisk is the nation’s largest managed care organization dedicated to the physical rehabilitation of workers’ compensation patients. For more information, please visit www.medrisknet.com or call 800-225-9675.
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.
Forward-Looking Statements
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,” “expect,” “plan,” “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” “continue to,” “endeavor,” “if,” “growing,” “projected,” “potential,” “likely,” “see,” “ahead,” “further,” “going forward,” “on the horizon,” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, all statements regarding the sale of Conduent’s Casualty Claims Solutions business, including that such transaction will be consummated and the timing of such consummation, expectations regarding our strategy to streamline our portfolio while increasing our focus on core capabilities to fuel Conduent’s growth, expectations regarding continued efforts to be strategic regarding the allocation of capital and any future portfolio rationalization efforts, and our confidence in a seamless transition for our associates and clients. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make. Important factors and uncertainties that could cause actual results to differ materially from those in our forward-looking statements include, but are not limited to: Conduent’s ability to realize the benefits anticipated from the sale of its Casualty Claims Solutions business, including as a result of a delay or failure to obtain certain required regulatory approvals or the failure of any other condition to the closing of the transaction such that the closing of the transaction is delayed or does not occur; unexpected costs, liabilities or delays in connection with the proposed transaction; the significant transaction costs associated with the proposed transaction; negative effects of the announcement, pendency or consummation of the transaction on the market price of our common stock or operating results, including as a result of changes in key customer, supplier, employee or other business relationships; the risk of litigation or regulatory actions; our inability to retain and hire key personnel; the risk that certain contractual restrictions contained in the definitive transaction agreement during the pendency of the proposed transaction could adversely affect our ability to pursue business opportunities or strategic transactions; and other factors that are set forth in the “Risk Factors” and other sections of our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this press release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
Virtual Webinar Updated VERSATILE-002 Phase 2 Trial Results, Unmet Treatment Needs in Advanced Head and Neck Cancer and Planned Triple Combination Trial to be held May 8, 2024
PRINCETON, N.J., May 03, 2024 (GLOBE NEWSWIRE) — PDS Biotechnology Corporation (Nasdaq: PDSB) (“PDS Biotech” or the “Company”), a late-stage immunotherapy company focused on transforming how the immune system targets and kills cancers and the development of infectious disease vaccines, today announced additional details of its virtual Key Opinion Leader (KOL) event to be held on Wednesday, May 8, 2024 at 1:30 PM ET. To register for the event, click here.
The virtual webinar will focus on the positive, updated data from the Company’s VERSATILE-002 Phase 2 clinical trial, current unmet need in HPV-positive head and neck cancer, and next steps for PDS Biotech’s planned triple combination trial including Versamune® HPV and PDS01ADC (IL-12 fused antibody drug conjugate).
Panel participants will include:
Jared Weiss, MD, Section Chief of Thoracic and Head/Neck Oncology, Professor of Medicine at University of North Carolina, and Principal Investigator of the VERSATILE-002 clinical trial, who will present and discuss the updated trial results
Robert Haddad, MD, Professor of Medicine, Harvard Medical School and Dana-Farber Cancer Institute, who will discuss the unmet need in HPV-positive head and neck squamous cell cancer (“HNSCC”)
The event will be moderated by Kirk Shepard, M.D., PDS Biotech’s Chief Medical Officer who will also present the next steps on the clinical path forward to registration for the Versamune® HPV and PDS01ADC based triple combination.
The VERSATILE-002 trial (NCT04260126) is evaluating Versamune® HPV in combination with the immune checkpoint inhibitor (“ICI”) KEYTRUDA® (pembrolizumab) in patients with unresectable, recurrent, or metastatic HPV16-positive HNSCC.
A live Q&A session will follow the formal presentations.
About Jared Weiss, MD Jared Weiss, MD received his undergraduate degree from Brown University and medical degree from Yale University. He completed residency at Harvard’s Beth Israel Deaconess Medical Center then fellowship at the Hospital of the University of Pennsylvania. He is currently employed as a tenured professor of medicine at UNC’s Lineberger Comprehensive Cancer Center where he also serves as section chief of thoracic and head/neck oncology. Dr. Weiss is proud to volunteer for and serve on the executive board of cancergrace.org and to advocate with the Lung Cancer Initiative of North Carolina. Dr. Weiss has published extensively, including in the New England Journal of Medicine, the Journal of Clinical Oncology and Lancet Oncology. He has played a role in the development of numerous approved agents, most recently including pembrolizumab, durvalumab, selpercatinib, trilaciclib and adagrasib. He has frequently presented at international conferences, including the Presidential Session of the European Society of Medical Oncology and Plenary Session of the Multidisciplinary Head and Neck Cancer Symposium. Dr. Weiss’s clinical practice is focused on lung cancer and head/neck cancer. Dr. Weiss’s research is focused on personalized and adaptive immunotherapy to treat cancer (neo-antigen cancer vaccines and cellular therapeutics). He has particular interest in small-cell lung cancer and in NUT carcinoma.
About Robert Haddad, MD Robert Haddad, MD is Professor of Medicine, Harvard Medical School, Division Chief and Institute Physician, Center of Head and Neck Oncology Program, and a member of the Department of Adult Oncology, Dana-Farber Cancer Institute, Boston, Massachusetts.
Dr. Haddad received his medical degree from Saint Joseph University, French Faculty of Medicine, and served as intern and resident at St. Luke’s Roosevelt Hospital Center, New York, New York. He completed his fellowship in hematology/oncology at Greenbaum Cancer Center, University of Maryland, Baltimore, Maryland. Dr. Haddad is a member of several professional societies, including the American Society of Clinical Oncology, American Association for Cancer Research and the American Society for Therapeutic Radiology and Oncology. Dr Haddad research is focused on identifying innovative forms of treatment in Head and Neck Cancer. His research activities involve the use of induction chemotherapy for patients with locally advanced head and neck cancer and the development of novel immunotherapeutic agents for treating locally advanced disease. He has been instrumental in the development, execution and publication of numerous phase II and III trials in head and neck cancer. These trials have advanced the field of head and neck oncology and have resulted in new therapies for patients.
Dr Haddad is also involved in teaching oncology fellows as well as medical residents, and ENT residents through the Dana-Farber Cancer Institute outpatient clinic and Brigham and Women’s Hospital inpatient service. He lectures extensively on head and neck cancer at the local, regional, national and international levels and has been invited to lecture in prestigious institutions and at national and international forums. He has presented his work at important scientific meetings such as the American Society of Clinical Oncology (ASCO) and the American Head and Neck Society Meeting (AHNS) and has edited two textbooks on head and neck cancer. Dr Haddad has an active role in the national comprehensive cancer network (NCCN) where he participates as a committee member in the head and neck committee and chair of the thyroid cancer committee. In this capacity, He helps write treatment guidelines. He has authored more than 200 publications related to Head and Neck cancer.
About PDS Biotechnology PDS Biotechnology is a late-stage immunotherapy company focused on transforming how the immune system targets and kills cancers and the development of infectious disease vaccines. The Company plans to initiate a pivotal clinical trial in 2024 to advance its lead program in advanced head and neck squamous cell cancers (HNSCC). PDS Biotech’s lead program is a proprietary dual-acting combination of IL-12 fused antibody drug conjugate (ADC) PDS01ADC and T-cell activator Versamune® HPV in regimen with a standard-of-care immune checkpoint inhibitor. We believe that proof-of-concept long-term data have shown positive survival results and tumor shrinkage with this combination and indicate favorable tolerability.
We believe that with a novel investigational “inside-outside” mechanism, the PDS01ADC and Versamune® HPV immunotherapy has shown compelling results with potential to successfully disrupt a tumor’s inside defenses, while also generating potent, targeted killer T-cells to attack the tumor from the outside. We believe that data from more than 350 patients, as well as ongoing clinical trials across multiple tumor types and standard treatment regimens, have validated the potential for both platforms and point to potential broad utility.
Our Infectimune® based vaccines have demonstrated the potential to induce not only robust and durable neutralizing antibody responses, but also powerful T-cell responses, including long-lasting memory T-cell responses in pre-clinical studies to date. For more information, please visit www.pdsbiotech.com.
Forward Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” “forecast,” “guidance”, “outlook” and other similar expressions among others. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the Company’s ability to protect its intellectual property rights; the Company’s anticipated capital requirements, including the Company’s anticipated cash runway and the Company’s current expectations regarding its plans for future equity financings; the Company’s dependence on additional financing to fund its operations and complete the development and commercialization of its product candidates, and the risks that raising such additional capital may restrict the Company’s operations or require the Company to relinquish rights to the Company’s technologies or product candidates; the Company’s limited operating history in the Company’s current line of business, which makes it difficult to evaluate the Company’s prospects, the Company’s business plan or the likelihood of the Company’s successful implementation of such business plan; the timing for the Company or its partners to initiate the planned clinical trials for PDS01ADC, PDS0101, PDS0203 and other Versamune® and Infectimune® based product candidates; the future success of such trials; the successful implementation of the Company’s research and development programs and collaborations, including any collaboration studies concerning PDS01ADC, PDS0101, PDS0203 and other Versamune® and Infectimune® based product candidates and the Company’s interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company’s product candidates; the success, timing and cost of the Company’s ongoing clinical trials and anticipated clinical trials for the Company’s current product candidates, including statements regarding the timing of initiation, pace of enrollment and completion of the trials (including the Company’s ability to fully fund its disclosed clinical trials, which assumes no material changes to the Company’s currently projected expenses), futility analyses, presentations at conferences and data reported in an abstract, and receipt of interim or preliminary results (including, without limitation, any preclinical results or data), which are not necessarily indicative of the final results of the Company’s ongoing clinical trials; any Company statements about its understanding of product candidates mechanisms of action and interpretation of preclinical and early clinical results from its clinical development programs and any collaboration studies; the Company’s ability to continue as a going concern; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the other risks, uncertainties, and other factors described under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the U.S. Securities and Exchange Commission. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Versamune® and Infectimune® are registered trademarks of PDS Biotechnology Corporation.
Keytruda® is a registered trademark of Merck Sharp and Dohme LLC, a subsidiary of Merck & Co., Inc., Rahway, N.J., USA.
MALVERN, Pa., May 03, 2024 (GLOBE NEWSWIRE) — Ocugen, Inc. (Ocugen or the Company) (NASDAQ: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines, today announced that it will host a conference call and live webcast to discuss the Company’s first quarter 2024 financial results and provide a business update at 8:30 a.m. ET on Tuesday, May 14, 2024.
Ocugen will issue a pre-market earnings announcement on the same day. Attendees are invited to participate on the call using the following details:
Dial-in Numbers: (800) 715-9871 for U.S. callers and (646) 307-1963 for international callers Conference ID: 8699924 Webcast: Available on the events section of the Ocugen investor site
A replay of the call and archived webcast will be available for approximately 45 days following the event on the Ocugen investor site.
About Ocugen, Inc. Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patient’s lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs. Discover more at www.ocugen.comand follow us onXandLinkedIn.
Cautionary Note on Forward-Looking Statements This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.
Transformational acquisition strengthens scale and capabilities of Kelly’s staffing and consulting solutions across technology, telecommunications, and government specialties in North America, and recruitment process outsourcing (RPO) solutions globally
Provides Motion Recruitment Partners and its leading brands with a highly invested partner to enable continued growth
Demonstrates Kelly’s commitment to rapidly redeploying capital and leveraging its strong balance sheet in pursuit of inorganic investments in higher-margin, higher-growth specialties
TROY, Mich., May 03, 2024 (GLOBE NEWSWIRE) — Kelly (Nasdaq: KELYA, KELYB) (“the Company”), a leading global specialty talent solutions provider, has entered into a definitive agreement to acquire Motion Recruitment Partners, LLC (“MRP”), from Littlejohn & Co., LLC (“Littlejohn”), a private investment firm based in Greenwich, Connecticut.
Under the terms of the agreement, Kelly will acquire MRP for $425 million in cash to be paid at close, with additional earnout potential of up to $60 million based on certain performance criteria. The Company expects to fund the transaction through debt and available capital, including the rapid redeployment of more than $100 million from the sale of Kelly’s European staffing operations in January 2024. The transaction is expected to close in the second quarter of 2024, subject to receipt of required regulatory approvals and other customary closing conditions.
The transaction will significantly build upon Kelly’s market-leading solutions portfolio, which includes Kelly Science, Engineering & Technology (SET), the second and fourth largest life sciences(1) and engineering(2) staffing provider, respectively, and a leading provider of technology, telecommunications, and government workforce solutions; KellyOCG, a top provider of RPO(3) and managed service provider (MSP)(4) solutions; Kelly Professional & Industrial, one of the ten largest industrial(5) staffing providers; and Kelly Education, the largest provider of K-12 education talent(6).
Following the close of the transaction, MRP will deliver services through its existing operating companies and brands with the goal of expanding Kelly’s capabilities and significantly increasing market share across several key areas:
Motion Recruitment’s technology staffing and consulting business will significantly expand Kelly SET’s delivery platform and establish the business as a top ten provider of tech talent solutions in the U.S.;
Sevenstep® will bring an industry leading brand and highly attractive client base in both RPO and MSP to elevate KellyOCG’s RPO segment to consistently rank in the top five globally;
Motion Telco will add a complementary client portfolio and set of delivery capabilities to Kelly’s existing telecommunications specialty to create a market-leading telecommunications offering; and
TG Federal will bring a dedicated new platform in government technology subcontracting with strong partnerships to build upon Kelly SET’s success in the government space.
In alignment with Kelly’s long-term strategy, the acquisition of MRP will enhance the revenue growth potential of the Company and accelerate EBITDA margin expansion. It will build upon the significant EBITDA margin expansion Kelly has delivered through actions implemented in 2023 and the sale of the Company’s European staffing operations in January 2024.
“We look forward to welcoming MRP to the Kelly team in what is a transformational step forward on our journey to sharpen the Company’s focus on higher-margin, higher-growth specialty outcome-based and staffing services in North America, and global RPO and MSP solutions,” said Peter Quigley, president and chief executive officer, Kelly. “MRP’s portfolio of businesses are an exceptional fit for Kelly’s SET and OCG segments, adding extensive expertise and an established presence in attractive end-markets. Likewise, Kelly’s breadth of resources and culture of collaboration form a strong foundation upon which MRP will reach extraordinary new heights.”
“There are so many valuable and complementary aspects to this new partnership and both companies have a lot to learn and gain from each other,” said Beth Gilfeather, chief executive officer, MRP. “We are excited to begin this new chapter to become part of the exceptional Kelly story and are very motivated to be a driving force behind the significant growth goals that lie ahead.”
“We are proud to have partnered with MRP’s strong leadership team during an important period of growth and evolution,” said Drew Greenwood, managing director, Littlejohn. “During our ownership period, MRP executed on a number of organic and inorganic initiatives that positioned it as a premier talent solutions provider with particular strength and depth in the technology market. We wish the company continued success as part of Kelly moving forward.”
The acquisition of MRP will be the largest in Kelly’s history and follows eight acquisitions completed and integrated successfully since 2017 as part of the Company’s strategy to pursue inorganic investments in higher-margin, higher-growth specialties. Kelly’s inorganic strategy has been enabled by a series of strategic actions to unlock significant capital and optimize the Company’s operating model, including: selling its European staffing operations; monetizing non-core real estate holdings; unwinding its cross-shareholding arrangement with Persol, reducing its ownership interest in PersolKelly, its Asia-Pacific staffing joint venture; and selling its operations in Brazil and Russia.
The Company will provide additional details about this transaction during its upcoming first-quarter earnings conference call on May 9, 2024.
Houlihan Lokey is serving as financial advisor to Kelly with Jasso Lopez PLLC serving as its legal counsel. Robert W. Baird is serving as the financial advisor to MRP with Baker Hostetler serving as its legal counsel.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 500,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2023 was $4.8 billion. Learn more at kellyservices.com.
About Motion Recruitment Partners, LLC
Established in 1989 and headquartered in Boston, Massachusetts, Motion Recruitment Partners, LLC, is parent company to a group of leading global talent solution providers to include Motion Recruitment (IT Staffing & Managed Solutions), Motion Consulting Group (IT Consulting), Motion Telco (IT & Telecom Solutions), Tech in Motion (Tech Networking & Events program), TG Federal (Government IT Subcontracting), and Sevenstep® (RPO, MSP & TA Advisory/Consulting). Learn more at www.motionrecruitment.com, www.sevensteptalent.com, and www.tgfederal.com.
About Littlejohn & Co., LLC
Littlejohn & Co., LLC, is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in growing middle-market industrial and services companies that can benefit from Littlejohn’s 25+ years of operational and sector expertise. With approximately $8 billion in regulatory assets under management, the firm seeks to build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.
Forward-Looking Statements
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vi) our future business development, results of operations and financial condition, (vii) damage to our brands, (viii) dependency on third parties for the execution of critical functions, (ix) conducting business in foreign countries, including foreign currency fluctuations, (x) availability of temporary workers with appropriate skills required by customers, (xi) cyberattacks or other breaches of network or information technology security, and (xii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Reported net sales of $359 million, with gross margin expanding 120 basis points
On track to deliver over $20 million in cost savings from our multi-year cost savings program
Net operating cash flow improved $51 million, generated free cash flow of $26 million
Consolidated net leverage ratio of 3.5x at quarter-end
Loss per share of $(0.07); adjusted EPS of $0.03, in line with the Company’s outlook
LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today reported financial results for the first quarter ended March 31, 2024.
“Our first quarter results demonstrate our commitment to improving profitability and cash flow generation as we work to overcome persistent consumer and business spending weakness. We generated higher free cash flow year over year, which allowed us to end the quarter with a leverage ratio of 3.5 times, which was a significant improvement over the prior year. I am proud of our team’s execution as we implemented our global restructuring and cost savings initiatives, which are already yielding benefits,” stated ACCO Brands’ President and Chief Executive Officer, Tom Tedford.
“We continue to invest in new product development, innovation, and other growth initiatives, while generating strong free cash flow and reducing our debt levels. Looking ahead, we remain focused on streamlining our operations and refining our strategy to enhance business performance and create long-term shareholder value. ” concluded Mr. Tedford.
First Quarter Results
Net sales were $358.9 million a 10.9 percent decline from $402.6 million in 2023. Favorable foreign exchange increased sales by $1.7 million, or 0.4 percent. Comparable sales decreased 11.3 percent. Both reported and comparable sales declines reflect softer global consumer and business demand for our office products and computer accessories, and from the exit of lower margin business.
Operating income was $5.9 million compared to $10.1 million in 2023. We incurred higher restructuring charges of $3.3 million in 2023 associated with our cost reduction and footprint rationalization programs primarily in Europe. Adjusted operating income was $16.2 million down from $24.3 million in 2023. Both reported and adjusted operating income declines reflect lower sales volumes, which more than offset moderating input costs and the cumulative effect of cost reduction initiatives and price increases.
Net loss was $6.3 million, or $(0.07) per share, compared with a net loss of $3.7 million, or $(0.04) per share, in 2023. Adjusted net income was $2.7 million compared with $8.5 million in 2023, and adjusted earnings per share were $0.03 per share compared with $0.09 per share in 2023.
Capital Allocation and Dividend
For the quarter, the Company significantly improved its operating cash flow to $28.2 million versus an outflow of $23.2 million in the prior year, driven primarily by working capital. Free cash flow was $25.9 million versus an outflow of $25.2 million in 2023. The Company’s consolidated leverage ratio as of March 31, 2024, was 3.5x, versus 4.3x at the end of Q1 of the prior year.
On April 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 June 12, 2024, to stockholders of record at the close of business on May 17, 2024.
Business Segment Results
ACCO Brands Americas – First quarter segment net sales of $197.2 million decreased 14.3 percent from $230.0 million in the prior year, and comparable sales declined 15.3 percent. Both reported and comparable sales decreases reflect softer consumer and business demand, particularly for our office products and computer accessories, and from the exit of lower margin business. In Brazil, end of season for back-to-school sales were weaker than the prior year.
First quarter operating income was $6.1 million versus $12.3 million a year earlier. Adjusted operating income was $12.3 million, down from $18.7 million in the prior year. Both reported and adjusted operating income declines reflect lower volume and negative fixed cost leverage, partly offset by moderating input costs, cost reduction initiatives and lower SG&A expense.
ACCO Brands International – First quarter segment net sales of $161.7 million decreased 6.3 percent from $172.6 million in the prior year. Favorable foreign exchange increased sales by 0.4 percent. Comparable sales were $162.4 million, down 5.9 percent versus the prior year. Both reported and comparable sales decreases reflect reduced consumer and business demand for our office and computer accessories categories, partially mitigated by the benefit of price increases.
First quarter operating income was $12.8 million, an increase from $9.7 million in the prior year, primarily due to lower restructuring expense. Adjusted operating income of $16.9 million decreased from $17.5 million in the prior year. The decline in adjusted operating income was due to the lower sales volume, which more than offset moderating input costs and the cumulative benefit of pricing and cost actions.
Updated Full Year 2024 and Second Quarter Outlook
“With a demand environment for our categories that is slower to recover than anticipated, we have prudently tempered our full year 2024 outlook. We previously announced a multi-year, $60 million cost reduction program, with $20 million expected to be realized in 2024, with further cost savings initiatives under consideration. I am confident that we are taking the appropriate actions to maintain our gross margins, reset our cost structure and generate strong cash flows, while investing in product development and other important growth initiatives,” Tedford added.
For the full year, the Company expects reported sales to be down in the range of 5.0% to 7.0%. This reflects the lower reported sales for the first quarter and a more tempered demand view for the balance of the year. Full year adjusted EPS is expected to be within a range of $1.02 to $1.07. The Company is maintaining its 2024 free cash flow outlook of at least $120 million and a year-end consolidated leverage ratio of approximately 3.0x to 3.2x.
In the second quarter, the Company expects reported sales to be down in the range of 7.0% to 9.0% and adjusted EPS within a range of $0.30 to $0.33.
Webcast
At 8:30 a.m. ET on May 3, 2024, ACCO Brands Corporation will host a conference call to discuss the Company’s first quarter and full year 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 relatively 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 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.
ACCO Brands Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
March 31,
2024
December 31,
2023
(in millions)
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
124.6
$
66.4
Accounts receivable, net
274.8
430.7
Inventories
348.8
327.5
Other current assets
49.6
30.8
Total current assets
797.8
855.4
Total property, plant and equipment
584.7
599.6
Less: accumulated depreciation
(422.1
)
(429.5
)
Property, plant and equipment, net
162.6
170.1
Right of use asset, leases
92.2
91.0
Deferred income taxes
99.0
104.7
Goodwill
577.1
590.0
Identifiable intangibles, net
797.9
815.7
Other non-current assets
17.0
17.9
Total assets
$
2,543.6
$
2,644.8
Liabilities and Stockholders’ Equity
Current liabilities:
Notes payable
$
—
$
0.2
Current portion of long-term debt
57.3
36.5
Accounts payable
170.1
183.7
Accrued compensation
33.3
53.3
Accrued customer program liabilities
73.4
104.0
Lease liabilities
20.6
20.5
Other current liabilities
118.6
143.8
Total current liabilities
473.3
542.0
Long-term debt, net
897.5
882.2
Long-term lease liabilities
77.8
76.8
Deferred income taxes
119.9
125.6
Pension and post-retirement benefit obligations
148.2
157.6
Other non-current liabilities
68.4
73.6
Total liabilities
1,785.1
1,857.8
Stockholders’ equity:
Common stock
1.0
1.0
Treasury stock
(47.0
)
(45.1
)
Paid-in capital
1,918.8
1,913.4
Accumulated other comprehensive loss
(544.6
)
(526.3
)
Accumulated deficit
(569.7
)
(556.0
)
Total stockholders’ equity
758.5
787.0
Total liabilities and stockholders’ equity
$
2,543.6
$
2,644.8
ACCO Brands Corporation and Subsidiaries
Consolidated Statements of Loss (Unaudited)
Three Months Ended
March 31,
(in millions, except per share data)
2024
2023
% Change
Net sales
$
358.9
$
402.6
(10.9)%
Cost of products sold
248.5
283.3
(12.3)%
Gross profit
110.4
119.3
(7.5)%
Operating costs and expenses:
Selling, general and administrative expenses
94.2
95.0
(0.8)%
Amortization of intangibles
10.6
10.9
(2.8)%
Restructuring
(0.3
)
3.3
NM
Total operating costs and expenses
104.5
109.2
(4.3)%
Operating income
5.9
10.1
(41.6)%
Non-operating expense (income):
Interest expense
13.3
13.9
(4.3)%
Interest income
(1.9
)
(2.4
)
(20.8)%
Non-operating pension expense
0.4
0.1
NM
Other (income) expense, net
(0.6
)
1.8
NM
Loss before income tax
(5.3
)
(3.3
)
60.6%
Income tax expense
1.0
0.4
NM
Net loss
$
(6.3
)
$
(3.7
)
70.3%
Per share:
Basic loss per share
$
(0.07
)
$
(0.04
)
75.0%
Diluted loss per share
$
(0.07
)
$
(0.04
)
75.0%
Weighted average number of shares outstanding:
Basic
95.7
94.9
Diluted
95.7
94.9
Cash dividends declared per common share
$
0.075
$
0.075
Statistics (as a % of Net sales, except Income tax rate)
Three Months Ended
March 31,
2024
2023
Gross profit (Net sales, less Cost of products sold)
30.8
%
29.6
%
Selling, general and administrative expenses
26.2
%
23.6
%
Operating income
1.6
%
2.5
%
Loss before income tax
(1.5
)%
(0.8
)%
Net loss
(1.8
)%
(0.9
)%
Income tax rate
(18.9
)%
(12.1
)%
ACCO Brands Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31,
(in millions)
2024
2023
Operating activities
Net loss
$
(6.3
)
$
(3.7
)
Loss on disposal of assets
—
1.1
Depreciation
7.4
9.0
Amortization of debt issuance costs
0.7
0.8
Amortization of intangibles
10.6
10.9
Stock-based compensation
5.1
5.6
Changes in operating assets and liabilities:
Accounts receivable
153.8
88.6
Inventories
(26.5
)
(25.0
)
Other assets
(18.6
)
3.6
Accounts payable
(12.7
)
(38.0
)
Accrued expenses and other liabilities
(76.2
)
(63.6
)
Accrued income taxes
(9.1
)
(12.5
)
Net cash provided (used) by operating activities
28.2
(23.2
)
Investing activities
Additions to property, plant and equipment
(2.3
)
(2.0
)
Net cash used by investing activities
(2.3
)
(2.0
)
Financing activities
Proceeds from long-term borrowings
61.4
101.1
Repayments of long-term debt
(18.9
)
(10.0
)
Repayments of notes payable, net
(0.2
)
(1.2
)
Dividends paid
(7.2
)
—
Payments related to tax withholding for stock-based compensation
(1.9
)
(1.7
)
Net cash provided by financing activities
33.2
88.2
Effect of foreign exchange rate changes on cash and cash equivalents
(0.9
)
1.9
Net increase in cash and cash equivalents
58.2
64.9
Cash and cash equivalents
Beginning of the period
$
66.4
$
62.2
End of the period
$
124.6
$
127.1
About Non-GAAP Financial Measures
We explain below how we calculate each of our non-GAAP financial measures. This is followed by a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financial measures.
We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe our non-GAAP financial measures provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance.
Our non-GAAP financial measures exclude certain items that may have a material impact upon our reported financial results such as restructuring charges, the impact of foreign currency exchange rate fluctuations, unusual tax items, goodwill impairment charges, and other non-recurring items that we consider to be outside of our core operations. On an interim basis, we also calculate adjusted income tax expense using our estimated annual income tax rate. These measures should not be considered in isolation or as a substitute for, or superior to, the directly comparable GAAP financial measures and should be read in connection with the Company’s financial statements presented in accordance with GAAP.
Our non-GAAP financial measures include the following:
Comparable Sales: Represents net sales excluding the impact of material acquisitions, if any, with current-period foreign operation sales translated at prior-year currency rates. We believe comparable sales are useful to investors and management because they reflect underlying sales and sales trends without the effect of material acquisitions and fluctuations in foreign exchange rates and facilitate meaningful period-to-period comparisons. We sometimes refer to comparable sales as comparable net sales.
Adjusted Operating Income (Loss)/Adjusted Income (Loss) Before Taxes/Adjusted Net Income (Loss)/Adjusted Net Income (Loss) Per Diluted Share:Represents operating income (loss), income (loss) before taxes, net income (loss), and net income (loss) per diluted share excluding restructuring and goodwill impairment charges, the amortization of intangibles, non-recurring items, other income/expense, adjustments to reflect the estimated annual tax rate and discrete income tax adjustments, including income tax related to the foregoing. We believe these adjusted non-GAAP financial measures are useful to investors and management because they reflect our underlying operating performance before items that we consider to be outside our core operations and facilitate meaningful period-to-period comparisons. Senior management’s incentive compensation is derived, in part, using adjusted operating income and adjusted net income per diluted share, which is derived from adjusted net income. We sometimes refer to adjusted net income per diluted share as adjusted earnings per share or adjusted EPS.
Adjusted Income Tax Expense:Represents income tax expense calculated using the estimated annual income tax rate and excludes the tax effect of the items that have been excluded from adjusted income before taxes, unusual income tax items such as the impact of tax audits and changes in laws, significant reserves for cash repatriation, excess tax benefits/losses, and other discrete tax items. We believe our adjusted income tax expense is useful to investors because it reflects our income tax calculated using the estimated annual tax rate before discrete items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons.
Adjusted EBITDA:Represents net income excluding the effects of depreciation, stock-based compensation expense, amortization of intangibles, interest expense, net, other (income) expense, net, and income tax expense, restructuring and goodwill impairment charges, and other non-recurring items. We believe adjusted EBITDA is useful to investors because it reflects our underlying cash profitability and adjusts for certain non-cash charges and other items that we consider to be outside our core operations and facilitates meaningful period-to-period comparisons. In addition, this calculation of adjusted EBITDA is used in our loan agreement to calculate our leverage ratio covenant.
Free Cash Flow:Free cash flow represents cash flow from operating activities less cash used for additions to property, plant and equipment. We believe free cash flow is useful to investors because it measures our available cash flow for paying dividends, funding strategic material acquisitions, reducing debt, and repurchasing shares.
Consolidated Leverage Ratio:Represents balance sheet debt plus debt origination costs and less any cash and cash equivalents divided by adjusted EBITDA. We believe that consolidated leverage ratio is useful to investors since the company has the ability to, and may decide to use, a portion of its cash and cash equivalents to retire debt.
We also provide forward-looking non-GAAP comparable sales, adjusted earnings per share, free cash flow, adjusted EBITDA and historical and forward-looking consolidated leverage ratio. We do not provide a reconciliation of these forward-looking and historical non-GAAP measures to GAAP because the GAAP financial measure is not currently available and management cannot reliably predict all the necessary components of such non-GAAP measures without unreasonable effort or expense due to the inherent difficulty of forecasting and quantifying certain amounts that are necessary for such a reconciliation, including adjustments that could be made for restructuring, integration and acquisition-related expenses, the variability of our tax rate and the impact of foreign currency fluctuation and material acquisitions, and other charges reflected in our historical results. The probable significance of each of these items is high and, based on historical experience, could be material.
ACCO Brands Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited)
(In millions, except per share data)
The following tables set forth a reconciliation of certain Consolidated Statements of Loss information reported in accordance with GAAP to Adjusted Non-GAAP Information for the three months ended March 31, 2024 and 2023.
Three Months Ended March 31, 2024
Operating
Income
% of
Sales
(Loss) Income
before Tax
% of
Sales
Income Tax
Expense (B)
Tax Rate
Net (Loss)
Income
% of Sales
Reported GAAP
$5.9
1.6 %
$(5.3)
(1.5)%
$1.0
(18.9)%
$(6.3)
(1.8)%
Reported GAAP diluted loss per share (EPS)
$(0.07)
Restructuring
(0.3)
(0.3)
(0.1)
(0.2)
Amortization of intangibles
10.6
10.6
2.9
7.7
Net operating tax gains
(A)
—
(1.2)
(0.4)
(0.8)
Discrete tax items and adjustments to annual tax rate
(B)
—
—
(2.3)
2.3
Adjusted Non-GAAP
$16.2
4.5 %
$3.8
1.1 %
$1.1
29.0 %
$2.7
0.8 %
Adjusted net income per diluted share (Adjusted EPS)
$0.03
Three Months Ended March 31, 2023
Operating
Income
% of
Sales
Income (Loss)
before Tax
% of
Sales
Income Tax
Expense (B)
Tax Rate
Net (Loss)
Income
% of Sales
Reported GAAP
$10.1
2.5 %
$(3.3)
(0.8)%
$0.4
(12.1)%
$(3.7)
(0.9)%
Reported GAAP diluted loss per share (EPS)
$(0.04)
Restructuring
3.3
3.3
0.9
2.4
Amortization of intangibles
10.9
10.9
2.9
8.0
Other asset write-off
(C)
—
1.1
0.3
0.8
Discrete tax items and adjustments to annual tax rate
(B)
—
—
(1.0)
1.0
Adjusted Non-GAAP
$24.3
6.0 %
$12.0
3.0 %
$3.5
29.4 %
$8.5
2.1 %
Adjusted net income per diluted share (Adjusted EPS)
$0.09
Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Loss to Adjusted EBITDA (Unaudited)
A.
Represents certain indirect tax credits in Brazil and losses related to the additional recorded reserves for certain operating taxes.
B.
The income tax impact of the non-GAAP adjustments and other discrete tax items. The Company adjusts its tax rate to 29.0% which represents its full year non-GAAP estimated annual tax rate as of March 31, 2024. The Company’s full year non-GAAP estimated annual effective tax rate remains subject to variation from the mix of earnings across the Company’s operating jurisdictions.
C.
Represents the write off of assets related to a capital project.
ACCO Brands Corporation and Subsidiaries
Reconciliation of Net Loss to Adjusted EBITDA (Unaudited)
(In millions)
The following table sets forth a reconciliation of net loss reported in accordance with GAAP to Adjusted EBITDA.
Three months ended
March 31,
2024
2023
% Change
Net loss
$(6.3)
$(3.7)
70.3 %
Stock-based compensation
5.1
5.6
(8.9)%
Depreciation
7.4
9.0
(17.8)%
Amortization of intangibles
10.6
10.9
(2.8)%
Restructuring credits
(0.3)
3.3
(109.1)%
Interest expense, net
11.4
11.5
(0.9)%
Other (income) expense, net
(0.6)
1.8
(133.3)%
Income tax expense
1.0
0.4
NM
Adjusted EBITDA (non-GAAP)
$28.3
$38.8
(27.1)%
Adjusted EBITDA as a % of Net Sales
7.9 %
9.6 %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
(In millions)
The following table sets forth a reconciliation of net cash provided by operating activities reported in accordance with GAAP to Free Cash Flow.
For the three months
ended March 31, 2024
For the three months
ended March 31, 2023
Net cash provided by operating activities
$28.2
$(23.2)
Net (used) provided by:
Additions to property, plant and equipment
(2.3)
(2.0)
Free Cash Flow (non-GAAP)
$25.9
$(25.2)
ACCO Brands Corporation and Subsidiaries
Supplemental Business Segment Information and Reconciliation (Unaudited)
(In millions)
2024
2023
Changes
Reported
Net Sales
Reported
Operating
Income
(Loss)
Adjusted
Items
Adjusted
Operating
Income
(Loss)
Adjusted
Operating
Income
(Loss)
Margin
Reported
Net Sales
Reported
Operating
Income
(Loss)
Adjusted
Items
Adjusted
Operating
Income
(Loss)
Adjusted
Operating
Income
(Loss)
Margin
Net
Sales $
Net
Sales %
Adjusted
Operating
Income
(Loss) $
Adjusted
Operating
Income
(Loss) %
Adjusted
Margin
Points
Q1:
ACCO Brands Americas
$197.2
$6.1
$6.2
$12.3
6.2%
$230.0
$12.3
$6.4
$18.7
8.1%
$(32.8)
(14.3)%
$(6.4)
(34.2)%
(190)
ACCO Brands International
161.7
12.8
4.1
16.9
10.5%
172.6
9.7
7.8
17.5
10.1%
(10.9)
(6.3)%
(0.6)
(3.4)%
40
Corporate
—
(13.0)
—
(13.0)
—
(11.9)
—
(11.9)
—
(1.1)
Total
$358.9
$5.9
$10.3
$16.2
4.5%
$402.6
$10.1
$14.2
$24.3
6.0%
$(43.7)
(10.9)%
$(8.1)
(33.3)%
(150)
See “Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Loss to Adjusted EBITDA (Unaudited)” for further information regarding adjusted items.
ACCO Brands Corporation and Subsidiaries
Supplemental Net Sales Change Analysis (Unaudited)
% Change – Net Sales
$ Change – Net Sales (in millions)
GAAP
Non-GAAP
GAAP
Non-GAAP
Net Sales Change
Currency Translation
Comparable Sales Change (A)
Net Sales Change
Currency Translation
Comparable Sales Change (A)
Comparable Sales
Q1 2024:
ACCO Brands Americas
(14.3)%
1.0 %
(15.3)%
$(32.8)
$2.4
$(35.2)
$194.8
ACCO Brands International
(6.3)%
(0.4)%
(5.9)%
(10.9)
(0.7)
(10.2)
162.4
Total
(10.9)%
0.4 %
(11.3)%
$(43.7)
$1.7
$(45.4)
$357.2
(A) Comparable sales represents net sales excluding material acquisitions, if any, and with current-period foreign operation sales translated at the prior-year currency rates.
In a blockbuster move that reverberated through Wall Street, Apple Inc. dropped a financial bomb by announcing the largest stock buyback in corporate history – a staggering $110 billion repurchase program. This unprecedented display of cash deployment immediately sparked a rally in Apple’s shares and sent shockwaves across the markets.
The tech juggernaut’s decision to pour over $110 billion into buying back its own shares eclipses the company’s previous buyback record set just five years ago and underscores the bounty of cash reserves being marshaled by big tech’s elite players. No other corporate giant has ever approached this level of buyback firepower.
The buyback goliath dwarfs the previous U.S. record held by Apple itself at $100 billion in 2018. It also tops other shareholder-friendly titans like ExxonMobil’s $50 billion repurchase plan and Meta’s $40 billion program announced in recent years.
For a company sitting on a $99 billion windfall of net cash, committing over $110 billion to buying back its own shares at depressed levels amounts to a hugely aggressive move by Apple. It signals management’s belief that the stock remains undervalued even after years of market-beating returns.
The buyback also serves as a counterweight to negative investor sentiment surrounding the broader tech sector’s correction over the past 18 months. Even Apple’s shares are down over 20% from their peak, despite the company’s market-leading profitability and growth runway.
By gobbling up over $110 billion of its own shares from the open market, Apple effectively transfers wealth from the company directly into the pockets of its remaining shareholders. This buyback will condense Apple’s share count and boost all-important earnings per share metrics in an accretive double-shot for shareholders.
It’s a power move squarely aimed at bolstering Apple’s premium valuation multiple at a pivotal juncture. While the iPhone posted soft sales, the company saw upside in categories like Macs and wearables. Yet Apple’s stock retrenched over 20% from peaks, providing the opening for this buyback blitz.
For investors, Apple’s unrivaled buyback barrage equates to the most high-conviction, shareholder-friendly signal a public company can send about its outlook. With over $110 billion committed to voraciously repurchasing its undervalued shares, Apple is doubling down on preserving its premium multiple despite the iPhone’s maturity cycle.
The buyback also raises the stakes for other cash-bloated tech and industrial titans evaluating ways to enhance shareholder value. If any company matches Apple’s sheer spending magnitude, the reverberations could be felt across indexes and actively-managed funds.
While Apple’s buyback frenzy amplifies its financial fortitude, it also showcases a lack of more fertile reinvestment opportunities within its core businesses. Sustained low interest rates have motivated corporations to increasingly funnel excess profits into buybacks rather than infrastructure or acquisitions.
Still, Apple’s move speaks volumes – reinforcing its status as the world’s preeminent cash flow machine unrivaled in capital return abilities. Whether this historic deployment marks a supernova acceleration or the peak of Apple’s financial engineering mastery remains to be seen.
For investors, one thing is certain – Apple’s $110 billion buyback barrage is the ultimate shock and awe market event of 2024 thus far. They better buckle up as this could merely be the opening salvo in an escalating buyback arms race by corporate titans aimed at bolstering their Silicon Valley supremacy.
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.
Noble Virtual Conference. On April 17, management presented at Noble’s Virtual Healthcare Equity Conference. Management highlighted several key attributes of the company, such as its strong customer acquisition capabilities, synergistic business model, and long history of serving American consumers, among others.
Understanding the customer. Through its licensed agents, SelectQuote has roughly 30k conversations per day with American seniors, resulting in deep insights into the needs of American consumers, such as Medicare beneficiaries. This allows the company to refine its offerings in ways that add value for customers and lead to return customers.
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.
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.
A Distribution Agreement. Yesterday, MustGrow Biologics announced an exclusive distribution agreement with G.S. Long Co., Inc. for MustGrow’s TerraSante biofertility product in Oregon and Washington State. We view this as the next step in revenue generation for the Company, with meaningful revenue now on the horizon for 2025.
Who Is G.S. Long? G.S. Long is a family-owned and operated agricultural chemical and fertilizer retailer headquartered in Central Washington with additional branches located in both Washington and Oregon State. The firm has deep crop consultant capabilities, including experience with biologics, representing generational grower relationships. G.S. Long has over 40 state-licensed Crop Advisors providing a variety of full-service consulting to its farming customers.
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.
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.
Merger proposal receives scrutiny in Austria. The Austrian Federal Competition Authority (AFCA) is of the opinion that the proposed merger between Haynes International and North American Stainless, Inc., a wholly owned subsidiary of Acerinox S.A., should not receive clearance in its current form but should be subjected to a detailed examination by the Austrian Cartel Court. The AFCA filed an application with the Austrian Cartel Court for a Phase II in-depth examination. Like Haynes, Acerinox is active in the field of specialty alloys through its VDM Metals subsidiary.
What is the problem? Based on the release, the AFCA is concerned that the merger would further strengthen Acerinox’s market position in the nickel alloy products sector which could have a negative impact on competition and lead to higher prices.
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 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.
Government Budgets. With the budgets for the 2024 fiscal year passed, DLH is prepared to capitalize on the expected increased bidding environment, in our view. The Company has roughly $500 million in outstanding bids, and we expect to see awards to be announced throughout the fiscal year.
Increasing Cash Flow. The Company generated $10.3 million in cash from operations year-to-date, above 2023’s cash generation of $6.9 million. The result is from an improvement in the Company’s Day Sales Outstanding, which improved to 50 days from 61 days last year. Improved cash collections corresponds to quicker debt reduction, in our view.
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.
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.
Q1 results in line. The company reported Q1 revenue of $34.9 million, in line with our forecast of $35.0 million. Adj. EBITDA for the quarter was $0.2 million, compared with our forecast of $0.5 million as illustrated in Figure #1 Results. Notably, total customers in the quarter increased 95% over the prior year period.
Definitive merger agreement. On April 1, 2024, the company announced it had entered into a definitive merger agreement to be acquired by privately held Cadent, LLC, a subsidiary of Novacap, for $324 million. The merger is an all cash transaction at $3.21 per share. Notably, the merger agreement includes a 33-day go-shop period, which allows the company to solicit alternative acquisition proposals until its expiration at 11:59 pm ET on May 4.
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.
