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Harte Hanks (HHS) – Recent Move Improves Free Cash Flow

Posted on by cpatches


Monday, July 08, 2024

Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .

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

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

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

Terminating pension plan 1. On June 25, the company announced it had executed its plan to terminate its Qualified Pension Plan 1. Notably, the company made a one time contribution of $6.1 million to the plan and transferred $71.9 million of plan assets to Nationwide. The company will make payments to plan members until July 31, and will have no further payment obligations beginning on August 1. We view the successful termination of Plan 1 as a favorable development that should positively impact cash flow.

Benefits of termination. With the termination of  Plan 1 the company’s pension liability payment is expected to be approximately $1.2 million annually, which is a significant reduction from previous years. Prior to the termination of Plan 1, the company was contributing $3.0 million – $4.0 million annually to pension liabilities.


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Ligand Pharmaceuticals Expands Oncology Portfolio with $100 Million APEIRON Biologics Acquisition

Posted on by slightbourne@noblecapitalmarkets.com

In a strategic move to bolster its commercial-stage portfolio, Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) announced on July 8, 2024, its agreement to acquire APEIRON Biologics AG for $100 million in cash. This acquisition marks a significant expansion of Ligand’s oncology footprint, particularly in the realm of rare pediatric cancers.

The crown jewel of this acquisition is QARZIBA® (dinutuximab beta), a highly differentiated oncology drug used in the treatment of high-risk neuroblastoma in patients aged 12 months and above. QARZIBA, which received European Medicines Agency approval in 2017, is currently marketed in over 35 countries by global pharmaceutical company Recordati S.p.A.

Todd Davis, CEO of Ligand, emphasized the strategic importance of this acquisition, stating, “The addition of QARZIBA to our commercial royalty portfolio further supports our growth strategy to invest in high-value medicines that deliver significant clinical value and generate predictable and long-term revenue streams for our investors.”

The deal structure includes the initial $100 million cash payment, with the potential for up to an additional $28 million based on future commercial and regulatory milestones. Specifically, these additional payments are tied to QARZIBA royalties exceeding certain predetermined thresholds by either 2030 or 2034.

From a financial perspective, this acquisition is expected to make an immediate positive impact on Ligand’s bottom line. The company projects that the deal will be accretive to its earnings per share (EPS) by approximately $1.00 on an annualized basis, with a $0.50 impact expected for 2024 alone. In light of this, Ligand has increased its 2024 adjusted EPS guidance by 17% to a range of $5.00-$5.50.

The acquisition of APEIRON represents the sixth key asset added to Ligand’s commercial stage portfolio since the beginning of 2023, underscoring the company’s aggressive growth strategy. This diversification is expected to provide Ligand with a more stable and predictable revenue stream, a key consideration for investors in the volatile biotech sector.

QARZIBA’s unique position as the only immunotherapy for high-risk neuroblastoma marketed across Europe and other parts of the world makes it a particularly valuable addition to Ligand’s portfolio. Neuroblastoma, a rare cancer that primarily affects children, has limited treatment options, highlighting the potential impact of QARZIBA on patient outcomes.

In a parallel move, Ligand has also committed to investing up to $4 million in invIOs Holding AG, a privately held spin-off of APEIRON. This investment is aimed at financing the research and development of three innovative early-stage immuno-oncology assets, further expanding Ligand’s development stage portfolio.

Peter Llewellyn-Davies, CEO of APEIRON, expressed satisfaction with the deal, noting, “This transaction is an important milestone for our company and shareholders. We have spent more than 20 years translating academic research into therapeutic products for diseases with high unmet needs.”

The acquisition is expected to close in July 2024, subject to a 30-day shareholder objection period and other customary closing conditions. Upon completion, it will significantly reshape Ligand’s commercial portfolio and financial outlook.

As the biopharmaceutical industry continues to consolidate and seek ways to mitigate risk while maximizing potential returns, Ligand’s acquisition of APEIRON represents a strategic move to strengthen its position in the oncology market. By focusing on high-value, commercially available assets like QARZIBA, Ligand is positioning itself for sustained growth in the competitive and rapidly evolving pharmaceutical landscape.

Take a moment to take a look at emerging biotech companies by taking a look at Noble Capital Markets Research Analyst Robert LeBoyer’s coverage list.

Release – LakeShore Biopharma to Hold an Extraordinary General Meeting on July 25, 2024, Pursuant to Shareholders’ Requisition

Posted on by aweinsoff@channelchek.com

Research News and Market Data on LSB

 Download this Press Release

GAITHERSBURG, Md., July 5, 2024 /PRNewswire/ — LakeShore Biopharma Co., Ltd (Nasdaq: LSB) (“LakeShore Biopharma” or the “Company”), a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases and cancer, today announced that the Company received a shareholders’ requisition dated June 14, 2024, issued by certain shareholders of the Company holding shares which carry in aggregate not less than 10% of all votes attaching to all issued and outstanding shares of the Company, including Yi Zhang, All Brilliance Investments Limited, Apex Pride Global Limited, Hopeful World Company Limited, and Acton Town International Limited (together, the “Requisitioning Shareholders”), requesting the directors of the Company to convene an extraordinary general meeting (the “EGM”) of the Company (the “Requisition”) to provide explanations to the shareholders of the Company on matters as described below:   

  1. The circumstances leading to the filing of the United States Securities and Exchange Commission Form 6-K Report, filed on June 10, 2024 (the “SEC Report”), including the reasons for the resignation of each of the former directors specified in the SEC Report.
  2. The justification for establishing new subsidiaries of the Company, including Lakeshore Tech Hong Kong Limited and Huan Yuanhang Technology (Beijing) Co., Ltd. The purpose of establishing these new subsidiaries, the related costs, the intended operations of each entity, and if any assets or personnel are intended to be transferred from the Company to any of the subsidiaries.
  3. The reasons leading to the conclusion that “[t]aking into account the financial resources available to the Company and Liaoning Yisheng, the Company does not expect the arbitration proceedings and related asset preservation order to have a material adverse impact on its business, financial condition and results of operations. The Company is in the course of evaluating its options to protect the legitimate interests of the Company and its shareholders through legal means” in the SEC Report.

The Board has reviewed the Requisition and decided to convene an EGM (the “Proposed EGM”) at 10:00 a.m. Hong Kong Time on July 25, 2024, virtually via a Zoom video conference call. The Proposed EGM will be held for the sole purpose of providing information as requested by the Requisitioning Shareholders. A copy of the notice of the Proposed EGM posted to the Company’s website will be attached as an exhibit to the Current Report on Form 6-K to be furnished by the Company with the United States Securities and Exchange Commission today.

The close of business on July 15, 2024 (Eastern Time) has been fixed as the record date of ordinary shares of the Company, par value $0.00002 per share for the EGM. Holders of record of the Company’s ordinary shares as of the record date shall be entitled to vote and have their votes counted at the EGM and any adjourned meeting thereof.

Instructions for accessing the video conference call are as follows:

Zoom dial-in details:

Meeting URL: https://us06web.zoom.us/j/6195900008?pwd=OTEvOGtnNFVpaUdBUkdRRlp4Y0txUT09

Meeting ID: 619 590 0008

Passcode: 666666

About LakeShore Biopharma (formerly known as YS Biopharma)

LakeShore Biopharma, previously known as YS Biopharma, is a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases and cancer. It has developed a proprietary PIKA® immunomodulating technology platform and a new generation of preventive and therapeutic biologics targeting Rabies, Coronavirus, Hepatitis B, Influenza, Shingles, and other virus infections. The Company operates in China, the United States, Singapore, and the Philippines, and is led by a management team that combines rich local expertise and global experience in the biopharmaceutical industry. For more information, please visit https://investor.lakeshorebio.com/.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the expected growth of LakeShore Biopharma, the development progress of all product candidates, the progress and results of all clinical trials, LakeShore Biopharma’s ability to source and retain talent, and the cash position of LakeShore Biopharma. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether identified in this press release, and on the current expectations of LakeShore Biopharma’s management and are not predictions of actual performance.

LakeShore Biopharma cannot assure you the forward-looking statements in this press release will be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including those included under the heading “Risk Factors” in the Post-effective Amendment No. 2 to the Company’s Registration Statement on Form F-1 filed with the SEC on January 23, 2024, and other filings with the SEC. There may be additional risks that LakeShore Biopharma does not presently know or that LakeShore Biopharma currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of LakeShore Biopharma as of the date of this press release. Subsequent events and developments may cause those views to change. However, while LakeShore Biopharma may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of LakeShore Biopharma as of any date subsequent to the date of this press release. Except as may be required by law, LakeShore Biopharma does not undertake any duty to update these forward-looking statements.

Investor Relations Contact

Alyssa Li
Director of Investor Relations
Email: ir@lakeshorebio.com

Robin Yang
Partner, ICR, LLC
Tel: +1 (212) 537-4035
Email: LakeShoreBiopharma.IR@icrinc.com

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SOURCE LakeShore Biopharma Co., Ltd

Release – Bit Digital, Inc. Announces Monthly Production Update for June 2024

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on BTBT

NEW YORK, July 5, 2024 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a sustainable platform for digital assets and artificial intelligence (“AI”) infrastructure headquartered in New York, announced its unaudited digital asset production and corporate updates for the month of June 2024.

Corporate Highlights for June 2024

  • The Company had 256 servers actively generating revenue from its initial Bit Digital AI contract, as of June 30, 2024. The Company earned an estimated $4.1 million of unaudited revenue from this contract during the month of June 2024.
  • In June 2024, the Company produced 61.7 BTC, a 2.5% decrease compared to the prior month.
  • The Company’s active hash rate was approximately 2.57 EH/s as of June 30, 2024.
  • Treasury holdings1 of BTC and ETH were 585.9 and 29,927.9 with a fair market value of approximately $36.7 million and $102.7, respectively, on June 30, 2024.
  • The BTC equivalent2 of our digital asset holdings as of June 30, 2024, was approximately 2,230.5 or approximately $139.8 million.
  • The Company had cash and cash equivalents of $60.8 million and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $200.6 million, as of June 30, 2024.

Proof-of-Stake Highlights

  • The Company had approximately 17,184 ETH actively staked in native staking protocols as of June 30, 2024.
  • Bit Digital earned a blended APY of approximately 3.5% on its staked ETH position for the month of June 2024.
  • The Company earned aggregate staking rewards of approximately 49.8 ETH during June 2024.

Upcoming Events

  • EthCC Brussels on July 8-11
  • C. Wainwright NDR on July 23-24
  • Bitcoin Nashville 2024 on July 25-27

About Bit Digital

Bit Digital, Inc. is a sustainable platform for digital assets and artificial intelligence (“AI”) infrastructure headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has established a business line, Bit Digital AI, that offers specialized cloud-infrastructure services for artificial intelligence applications. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice 

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our most recent Annual Report on Form 20-F for the fiscal year ended December 31, 2023. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors.

Safe Harbor Statement 

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

US Labor Market Continues Cooling

Posted on by cpatches

The latest US jobs report for June reveals a labor market that continues to navigate shifting economic currents. Despite expectations of 190,000 new jobs, the economy added 206,000 nonfarm payroll positions, marking a slight decline from the revised figure of 218,000 in May.

However, the headline figure masks nuanced developments. The unemployment rate unexpectedly edged up to 4.1%, its highest level since November 2021, rising by a tenth of a percentage point from the previous month.

Pre-market trading on Friday saw stock futures rise, building on gains from record highs before the recent holiday break. This uptick follows softer-than-expected economic indicators, reinforcing Federal Reserve Chair Jerome Powell’s observation that the US economy may be entering a disinflationary phase.

Federal Reserve policymakers, in their latest meeting minutes, emphasized the need for continued progress on inflation before considering interest rate adjustments. They noted that despite economic strength and a resilient labor market, there is no immediate urgency to alter monetary policy.

Wage growth, a key indicator for economic health, showed signs of moderation with a year-over-year increase of 3.9%. June saw a modest 0.3% uptick in wages, slightly lower than the previous month.

Sector-specific trends in job creation revealed a 70,000 job surge in government roles, with healthcare (+49,000), social assistance (+34,000), and construction (+27,000) also showing notable gains. Conversely, professional and business services experienced a decline of 17,000 jobs, while the retail sector saw a decrease of 9,000 jobs, reflecting broader economic adjustments.

Historical Context:

The monthly jobs report serves as a crucial barometer for assessing the health of the US economy. Since its inception, these reports have influenced market sentiment and policy decisions. Positive job growth typically boosts investor confidence, driving stock market gains and suggesting economic resilience. Conversely, unexpected rises in unemployment or slower job creation can prompt concerns about economic slowdowns or recessions, influencing Federal Reserve actions on interest rates and monetary policy.

As the economy faces ongoing challenges and transitions, including post-pandemic recovery efforts and global economic shifts, each jobs report provides insights into the trajectory of employment trends and their broader implications for consumer spending, inflationary pressures, and overall economic stability.

Luxury Retail Mergers and Acquisitions Reshape the Fashion Landscape

Posted on by cpatches

In a strategic move set to redefine the luxury retail sector, HBC, the parent company of Saks Fifth Avenue, announced plans to acquire Neiman Marcus Group for $2.65 billion. This landmark deal will pave the way for the formation of Saks Global, a powerhouse conglomerate encompassing Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman.

The acquisition comes amidst a turbulent period for brick-and-mortar retail, where consumer preferences have shifted towards experiential shopping over traditional goods. Luxury brands are increasingly bypassing department stores to establish direct connections with consumers through their own retail channels.

Marc Metrick, current CEO of Saks.com, will assume the role of CEO for the newly formed Saks Global, while Ian Putnam, President and CEO of HBC Properties and Investments, will lead the property and investments division.

This merger, long speculated upon, is expected to bolster the combined entity’s negotiating power with luxury brands, potentially driving down costs. It also marks a strategic alliance with tech giants Amazon and Salesforce, both of which will hold minority stakes in the new company. Amazon’s involvement underscores its ambition to penetrate the luxury retail market, leveraging its technological prowess and logistical infrastructure.

In a separate development reported by the Wall Street Journal, Arkhouse and Brigade Capital have increased their buyout offer for Macy’s to $6.9 billion. This revised bid represents a significant premium of nearly 43% over Macy’s closing price in December 2023, when the talks began. The proposal aims to acquire all outstanding Macy’s shares at $24.80 per share, indicating confidence in Macy’s potential despite its recent challenges.

Macy’s, facing declining sales and market share, has responded with store closures and strategic overhauls. Another option, taking the company private, could provide the flexibility needed to execute its turnaround plan away from the pressures of public markets.

Recent activity, and proposed activity, in the space highlights luxury brands trying to reposition themselves to survive in an ever-evolving consumer landscape that sees more and more consumers turning to online purchases and direct-to-consumer interaction. At the same time, it shows that many experts see the potential for a turnaround.

Gain more insight on the current, and future, state of the consumer, media, and tech sectors straight from the executives. Watch the replays from Noble’s recent virtual equity conference.

UK Election Results: Labour’s Victory and Market Implications

Posted on by cpatches

In a widely anticipated outcome, Conservative Party leader Rishi Sunak conceded defeat early Friday morning, marking the end of his tenure as Prime Minister after a 14-year Conservative majority. The Labour Party secured a commanding victory, claiming over 410 seats in the 650-member House of Commons.

Image Credit: Number 10 (flickr)

The UK economy faces ongoing challenges amidst elevated inflation rates and maintained high interest rates, part of the central bank’s efforts to navigate the post-COVID-19 recovery.

Market Impact and Sectoral Considerations:

Labour’s decisive win is expected to have significant implications across UK markets and sectors. While stock markets and the housing sector are likely to experience shifts, bond and currency markets may see more subdued responses, according to analysts.

Historically, UK election outcomes influence short-term market sentiment, with longer-term impacts contingent on policy decisions and economic stability. The UK has experienced a decade of political flux, impacting investor confidence and economic planning.

Policy Initiatives and Sectoral Reactions:

During their campaign, the Labour Party proposed policy changes likely to affect various sectors:

  • Plans to increase taxes on private equity fund managers and raise fines for water companies may influence investor sentiment in these areas.
  • Increased defense spending pledges could benefit technology, aerospace, and defense stocks.
  • Promises to prioritize housing availability and restore mandatory housebuilding targets may stimulate activity in the housing market and related sectors like home goods.

Currency and Interest Rate Outlook:

Forecasts for the stability of the British Pound vary among experts. While some anticipate minimal currency fluctuations, others suggest potential weakening due to proposed tax increases. Interest rates, currently elevated, could see adjustments under new economic policies, potentially affecting mortgage rates and housing market dynamics.

Historical Context:

This election result, while expected, underscores the influence of political outcomes on market sentiment and economic policy. Investor reactions are typically short-term, with sustained impacts reliant on policy implementation and economic fundamentals.

Conclusion:

As UK markets adjust to the new political landscape, investors will closely monitor policy developments and economic indicators for signs of stability and growth. The election outcome positions Labour to shape sectoral dynamics and investor strategies in the months ahead, highlighting the intersection of political events and financial markets.

Nano Dimension to Acquire Desktop Metal: A Game-Changer in Additive Manufacturing

Posted on by slightbourne@noblecapitalmarkets.com

The additive manufacturing landscape is set for a seismic shift as Nano Dimension Ltd. (Nasdaq: NNDM) announces its plans to acquire Desktop Metal, Inc. (NYSE: DM) in an all-cash transaction. This merger, expected to close in Q4 2024, promises to create a powerhouse in the 3D printing industry, offering investors a unique opportunity to capitalize on the burgeoning trend of digital manufacturing.

Under the terms of the agreement, Nano Dimension will purchase all outstanding shares of Desktop Metal for $5.50 per share, valuing the company at approximately $183 million. This represents a 27.3% premium to Desktop Metal’s closing price on July 2, 2024. However, investors should be aware that the final price could potentially decrease to $4.07 per share, reducing the total consideration to $135 million, depending on transaction expenses and other factors outlined in the agreement.

The strategic rationale behind this merger is compelling. By combining two complementary product portfolios, the new entity aims to create a comprehensive offering across metal, electronics, casting, polymer, micro-polymer, and ceramics applications. This broader product range is expected to accelerate the industry’s transition from prototyping to mass production, a key growth driver in the additive manufacturing sector.

The merger will also deepen the companies’ penetration in key end markets such as automotive, aerospace/defense, industrial, and medical. The combined entity will serve an impressive roster of blue-chip customers, including Amazon, Tesla, NASA, and the US Army, positioning it at the forefront of industry innovation and adoption.

From a financial perspective, the merged company is projected to have 2023 combined revenue of $246 million, with a notable 28% generated from recurring revenue streams. This recurring revenue component is particularly attractive to investors, as it provides more stable and predictable cash flows. Moreover, the deal is expected to generate over $30 million in run-rate synergies over the next few years, in addition to previously announced cost savings from each organization.

Post-merger, the combined entity is expected to boast a strong cash position of approximately $665 million (or $680 million at the reduced price scenario), providing ample resources for future growth initiatives and R&D investments. This financial strength, coupled with an installed base of over 8,000 systems, positions the new company to capitalize on significant opportunities in services and consumables, further enhancing its recurring revenue potential.

The merger positions the new company as a leader in the rapidly evolving additive manufacturing industry, particularly in the transition from prototyping to high-volume production. Investors should take note of the company’s focus on high-tech, premium margin solutions, which could lead to improved profitability in the long term. The diverse product portfolio and expanded customer base also provide some insulation against industry-specific risks.

However, potential investors should be aware of the challenges that come with such a significant merger. Integration risks, including the consolidation of operations across multiple geographies, could impact short-term performance. Additionally, the transaction is subject to approval by Desktop Metal’s stockholders and regulatory authorities, which introduces some uncertainty. The additive manufacturing industry is also highly competitive and rapidly evolving, which may require continuous innovation and investment to maintain market position.

For investors interested in the additive manufacturing sector and M&A activity, this deal offers an attractive entry point into a potentially transformative merger. The combined company’s strong financial position, diverse product offering, and focus on high-growth areas of digital manufacturing make it a compelling investment proposition. However, as with any merger, investors should closely monitor the integration process and the company’s ability to realize projected synergies. The potential for price adjustments also warrants attention, as it could impact the overall value of the deal.

In conclusion, the Nano Dimension-Desktop Metal merger represents a significant consolidation in the additive manufacturing industry, creating a well-capitalized leader with a comprehensive product portfolio. For investors willing to navigate the inherent risks of M&A transactions, this deal could offer substantial long-term value as the additive manufacturing industry continues its growth trajectory, potentially reshaping the future of manufacturing across multiple sectors.

Release – NN, Inc. Strengthens Balance Sheet Through Sale of Non-Core Plastic Plant

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on NNBR

Executing on Key Elements of Transformation Plan

CHARLOTTE, N.C., July 02, 2024 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced it has entered into a definitive agreement to sell its lone plastics products plant known as Industrial Molding Corporation (IMC), to Davalor Mold Company, a wholly owned portfolio company of Blackford Capital. Total net cash proceeds will be approximately $16 million.

“NN is underway with a strategic transformation that includes leveraging our core competencies and implementing a supportive balance sheet” said Harold Bevis, President and CEO of NN, Inc. “IMC is a good, stand-alone plastics injection-molding plant and is not core to our strategic direction. Our core competencies are centered upon delivering globally competitive, mission critical manufacturing solutions to discriminating buyers of high-value, high-precision components and sub-assemblies. This plant is not consistent with this direction and is more general-purpose in nature. Furthermore, the products and customers in this plant are unique to it and there will be no impact to NN’s remaining business. The plant’s business is centered in generic vehicle parts and ball bearing components.”

“A key element of NN’s transformation and leadership plan is to progressively correct our balance sheet back to market norms. We will pay down debt with the net proceeds from this transaction and continue to advance our balance sheet initiatives. We have a tremendous amount of opportunities in front of us and are excited to implement them. We will continue to focus and refine our business plans in our chosen markets of auto, electrical, industrial and medical,” said Bevis.

Updated 2024 Outlook

As a result of this portfolio divestiture and debt reduction and deleveraging transaction, NN is revising its full-year 2024 outlook modestly as follows:

  • Revenue will be in the range of $465 million to $485 million.
  • Adjusted EBITDA will be in the range of $47 million to $51 million.
  • Free cash flow will be in the range of $8 million to $12 million.
  • New business wins will be in the range of $55 million to $70 million.

NN is committed to creating a sustainable and profitable growth business model by participating in large growing markets; partnering with innovative customers on innovative programs; and providing unique value through a global footprint of plants delivering high quality and on-time performance. NN is also strengthening its core values around climate leadership, diversity, and inclusion.

Blaige & Company served as the exclusive financial advisor on the transaction.

About NN, Inc.

NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.

FORWARD-LOOKING STATEMENTS

This press 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, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions, and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.

Investor & Media Contacts:
Joe Caminiti or Stephen Poe, Investors
Tim Peters or Emma Brandeis, Media
NNBR@alpha-ir.com
312-445-2870

NN, Inc. (NNBR) – Strengthening the Balance Sheet

Posted on by cpereira@noblefcm.com


Wednesday, July 03, 2024

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.

Facility Sale. Last night after the market closed, NN disclosed the sale of its lone plastics products plant, known as Industrial Molding Corporation (IMC), to Davalor Mold Company, a wholly owned portfolio company of Blackford Capital. Total net cash proceeds will be approximately $16 million. The business was non-core to NN.

Use of Proceeds. NN will use the net proceeds from the sale to pay down debt. At the end of the first quarter, NN had $151.5 million of long-term debt outstanding. All else equal, we would anticipate the Company to pay down its term loan, which had an all in interest rate of 14.3% at the end of 1Q, compared to the ABL rate of 7.42%. A $16 million payment would result in over $2 million of interest cost savings.


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Fed’s Powell Signals Extended High-Rate Environment

Posted on by slightbourne@noblecapitalmarkets.com

Federal Reserve Chair Jerome Powell’s recent comments at a central banking forum in Sintra, Portugal, have given investors fresh insights into the Fed’s thinking on interest rates and inflation. While acknowledging progress in the battle against inflation, Powell’s cautious tone suggests that investors should prepare for a more measured approach to monetary policy easing than many had initially anticipated.

Powell’s remarks highlight the delicate balance the Fed is trying to strike. On one hand, inflation has shown signs of cooling, with the Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation gauge – declining to a 2.6% annual rate in May. This represents significant progress from the 4% rate seen a year ago. However, it’s still above the Fed’s 2% target, which Powell doesn’t expect to reach until 2026.

For investors, this timeline is crucial. It suggests that while the Fed sees positive trends, it’s not ready to declare victory over inflation just yet. This cautious stance is reflected in Powell’s statement that the Fed wants to be “more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”

This careful approach has implications for various asset classes. Bond investors, who had initially priced in up to six quarter-point rate cuts for 2024, may need to recalibrate their expectations. Current market pricing now anticipates only two cuts, one in September and another before year-end. However, even this may be optimistic given that Fed officials have indicated just one cut in their latest projections.

Equity investors should also take note. The Fed’s commitment to bringing inflation down to its 2% target, even if it means maintaining higher rates for longer, could impact corporate earnings and valuations. Sectors that are particularly sensitive to interest rates, such as real estate and utilities, may face continued pressure if rates remain elevated.

Powell’s comments also touched on the risks of moving too quickly versus too slowly in adjusting monetary policy. He noted that cutting rates too soon could undo the progress made on inflation, while moving too late could unnecessarily undermine economic recovery. This balanced view suggests that the Fed is likely to err on the side of caution, potentially keeping rates higher for longer than some investors might prefer.

For global investors, it’s worth noting that Powell’s stance aligns with other major central banks. European Central Bank President Christine Lagarde, who was also present at the forum, has similarly emphasized the need for continued vigilance on inflation.

The Fed’s approach also has implications for currency markets. A more hawkish Fed stance relative to other central banks could support the U.S. dollar, potentially impacting multinational corporations and emerging market investments.

Looking ahead, investors should pay close attention to upcoming economic data, particularly inflation readings and labor market indicators. These will likely play a crucial role in shaping the Fed’s decisions in the coming months.

It’s also worth noting that Powell downplayed concerns about potential political influence on Fed policy, stating that the central bank remains focused on its mandate regardless of the political climate.

In conclusion, while the Fed sees progress on inflation, investors should prepare for a potentially slower path to monetary policy easing than initially expected. This underscores the importance of maintaining a diversified portfolio and staying attuned to economic indicators that could influence the Fed’s decision-making. As always, adaptability will be key in navigating the evolving economic landscape.

The Economic Impact of Hurricanes: Beryl’s Ongoing Caribbean Journey

Posted on by slightbourne@noblecapitalmarkets.com

As Hurricane Beryl continues its path through the Caribbean islands, leaving a trail of destruction in its wake, the economic implications of this powerful storm are unfolding in real-time. The hurricane’s landfall north of Grenada yesterday was just the beginning, with several other islands now bracing for impact. This developing situation serves as a stark reminder of the far-reaching economic consequences that hurricanes can have, not just on individual islands, but on entire regions.

The immediate economic effects of Beryl are already visible in some of , but as the storm progresses, we’re likely to see a domino effect across the Caribbean. Each island in Beryl’s path faces potential disruptions to key economic sectors such as tourism, agriculture, and offshore financial services. For investors, this means watching a rapidly changing situation that could affect multiple markets simultaneously.

In the short term, we’re seeing the typical pattern of economic contraction in affected areas. Businesses are closing, power outages are widespread, and transportation links are severed. This leads to immediate losses in productivity and revenue. However, the ongoing nature of Beryl’s journey means that these effects are not isolated to a single location but are spreading across the region, potentially amplifying the overall economic impact.

The insurance industry, always at the forefront of hurricane economics, is now facing a complex scenario. With multiple islands potentially affected, insurers are bracing for a wave of claims that could stretch across several jurisdictions. This could put significant pressure on the industry, possibly leading to reassessments of risk in the entire Caribbean region.

Energy markets are also on high alert. While the Caribbean isn’t a major oil and gas producer, the region is home to several refineries and is a key shipping route. Any disruptions to these facilities or shipping lanes could have ripple effects on global energy prices, adding another layer of complexity for investors to consider.

The tourism sector, a cornerstone of many Caribbean economies, is particularly vulnerable. As Beryl continues its path, we’re likely to see widespread cancellations and a potential long-term impact on visitor numbers across multiple islands. This could have a significant effect on the GDP of several nations, not just those directly hit by the hurricane.

For investors, the ongoing nature of Hurricane Beryl presents both challenges and opportunities. The construction and infrastructure sectors may see increased activity as multiple islands engage in reconstruction efforts simultaneously. However, this could also lead to resource competition and potential inflationary pressures in the region.

The long-term economic consequences of Beryl will likely be shaped by how the entire Caribbean region responds to this shared challenge. We may see increased cooperation in disaster preparedness and recovery efforts, potentially leading to new regional economic initiatives. This could create interesting investment opportunities in areas such as resilient infrastructure, regional insurance schemes, and climate adaptation technologies.

As we continue to monitor Beryl’s progress, it’s crucial for investors to think beyond individual islands and consider the interconnected nature of the Caribbean economy. The storm’s impact on regional supply chains, inter-island trade, and collective tourism branding could have lasting effects that extend far beyond the immediate damage.

Hurricane Beryl’s ongoing journey through the Caribbean underscores the complex and far-reaching economic impact of these storms. For investors, this evolving situation highlights the need for a dynamic, region-wide perspective when assessing risks and opportunities in hurricane-prone areas. As climate change continues to intensify the frequency and severity of such storms, understanding these broader, interconnected impacts will be essential for making informed investment decisions in an increasingly volatile world.

Release – Conduent Transportation Launches EMV Contactless Open Payment System on Venice Public Transportation Network

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

JULY 02, 2024

In time for summer, Venice public transportation network users can now pay for fares using contactless credit and debit cards

MILAN & FLORHAM PARK, N.J. — Conduent Transportation, a global provider of smart mobility technology solutions and business unit of Conduent Incorporated (Nasdaq: CNDT), today announced the launch of a contactless open payment system on the Venice transportation network managed by Azienda Veneziana della Mobilità (AVM).

The new EMV (Europay, Mastercard and Visa) open payment system allows passengers to pay with contactless credit and debit cards, offering easier access to AVM’s local public transport service in the metropolitan area of Venice, as well as the integrated mobility services in the urban area. The Conduent system also enables travelers to use NFC-enabled devices such as smartphones and smartwatches with digital wallets.

To support AVM’s transportation modernization initiative, Conduent supplied over 2,200 validators, which enable fare payment on Venice’s fleet of 149 vessels (water buses, speedboats, motorboats and ferries), more than 150 wharfs, 540 buses, 20 trams and two people movers. The validators offer a single point of validation not only for credit and debit cards but for all other media, such as Venezia Unica cards and electronic tickets. Approximately 180 million passengers travel on the Venice public transport network every year.

In addition, the system enables AVM to offer best fare pricing for the first time. Best fare pricing ensures that customers are automatically charged the lowest available price for the journeys taken each day.

“It’s been a few busy months of work that has made EMV technology a reality on the whole transport network managed by AVM,” said Giovanni Seno, General Manager of Gruppo AVM. “I thank all the company teams who have worked hard to achieve this important result, putting professionalism, competence and the desire to improve into their daily work. We have progressively improved the customer experience of the new validators – also listening to feedback received from passengers – and we are looking forward to the summer season with an innovation that has enormous potential, both in terms of market penetration and in terms of impact on our organization.”

“Conduent is honored to be part of AVM’s modernization program to enhance and elevate the network and experience for their passengers,” said Jean-Charles Zaia, President, Transit Solutions at Conduent. “Conduent contactless open payment systems, deployed around the world, are enhancing the services that transportation networks provide to benefit the passengers who use them.”

With Venice, Conduent has further expanded its deployment of EMV contactless open payment systems in the Veneto region, after implementing similar systems in Belluno and Verona . Conduent has also deployed contactless open payment systems in many cities in the Lombardy and Liguria regions.

Conduent Transportation and Elavon, as well as Visa, were selected by AVM in December 2022 to provide a convenient EMV payment system across its public transportation network.

Conduent Transportation is a leading provider of streamlined, high-volume mobility services and solutions, spanning road usage charging and advanced transit systems, that enhance the services provided by transportation agencies to benefit the citizens who use them. For over 50 years, the company has helped clients advance transportation solutions in more than 20 countries.

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 .

Note: To receive RSS news feeds, visit www.news.conduent.com . For open commentary, industry perspectives and views, visit http://twitter.com/Conduent , http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent .

Trademarks

Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

ROBERT CORBISHLEY

Conduent

Robert.Corbishley@conduent.com

+44 (0) 7703 516569

GILES GOODBURN

Conduent