Tag: Industrial

CoreCivic, Inc. (CXW) – Amended Credit Facility Provides More Flexibility

Posted on by cpereira@noblefcm.com


Monday, October 16, 2023

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.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.

Amended Facility. Late last week, CoreCivic announced it had amended its credit agreement. The new facility effectively replaces CoreCivic’s Third Amended and Restated Credit Agreement dated May 12, 2022. The new facility is in the aggregate principal amount of $400 million, consisting of a $125 million term loan and a $275 million revolving credit facility. The new facility provides greater flexibility, in our view. 

Details. The new facility increases in size from $350 million to $400 million. In addition, the Company has an option to increase the availability under the revolving credit facility and to request term loans from the lenders in an aggregate amount not to exceed the greater of (a) $200 million and (b) 50% of consolidated EBITDA for the most recently ended four-quarter period. Maturity has been extended until October 11, 2028 from May 12, 2026.


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

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

Release – Orion Group Holdings Announces Significant Design-Build Contract Award for Grand Bahama Shipyard Dry Dock and $121 Million in Additional Awards

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ORN

Oct 13, 2023

HOUSTON, Oct. 13, 2023 (GLOBE NEWSWIRE) — Orion Group Holdings, Inc. (NYSE: ORN) (“Orion” and “Company”), a leading specialty construction and engineering company today announced a significant contract award valued at over $100 million for its Marine and Engineering business. The contract was awarded by Grand Bahama Shipyard Limited (GBSL) for the turnkey design-build of the Grand Bahama Shipyard Dry Dock Replacement Project, situated in Grand Bahama, Bahamas. In addition, the Company was recently awarded new contracts in both its Concrete and Marine segments for a combined total of $121 million.

Orion Group Holdings won the Grand Bahama Shipyard Dry Dock award through a competitive bid/negotiation process based on demonstrating its multiple core skill competencies. The scope of work includes marine works and infrastructure construction, dredging, creating new mooring facilities, and providing enhancements to shore stability. In addition, Orion will modify and extend service piers for the installation of two cutting-edge floating dry docks, which are among the largest in the western hemisphere. The project is set to commence immediately and will conclude in late 2025. Orion will be working with Bahamian subcontractors on the project.

Travis Boone, President and Chief Executive Officer of Orion Group Holdings, said, “The scope of the Bahama project demonstrates the extensive capabilities and commitment to predictable excellence that our integrated Marine & Engineering teams can deliver to large-scale and complex projects. We are excited to embark on this project and look forward to contributing to the growth and success of the Grand Bahama Shipyard.”

“When completed, the Grand Bahama dry docks will be a milestone in the maritime industry. With this enormous undertaking, Grand Bahama Shipyard will have the first floating dry docks for the Atlantic region capable of lifting the largest cruise ships in the world. The installation of two state-of-the-art floating dry docks, categorized as XL and Mega XL, promises substantial efficiency and cost savings for GBSL’s customers.”

Boone added, “As part of our strategic plan, we have been focused on strengthening our business development efforts and I am very proud of the energy and impact our expanded team is having on our business. In addition to this project award in the Bahamas for Marine, we also recently received new awards totaling $121 million, comprised of $50.8 million in the Concrete segment and $68.5 million in our Marine segment.” For additional information, see our 8-k filed on September 28, 2023.

Orion Group Holdings, Inc. is a renowned name in specialty construction, known for its dedication to quality, innovation, and timely project execution. With these new contract awards, Orion continues to strengthen its position as an industry leader capable of tackling complex projects with unmatched expertise.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. https://www.oriongroupholdingsinc.com.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘seeks’, ‘approximately’, ‘intends’, ‘plans’, ‘estimates’, or ‘anticipates’, or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward-looking statements also include project award announcements, estimated project start dates, anticipated revenues, and contract options which may or may not be awarded in the future. Forward-looking statements involve risks, including those associated with the Company’s fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company’s plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to the Company’s 2022 Annual Report on Form 10-K, filed on March 16, 2023, which is available on its website at www.oriongroupholdingsinc.com or at the SEC’s website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contact:

Financial Profiles, Inc.
Margaret Boyce 310-622-8247
mboyce@finprofiles.com

AZZ Inc. (AZZ) – Sales a bit light, but margins are holding steady.

Posted on by cpereira@noblefcm.com


Thursday, October 12, 2023

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

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

Sales growth stagnated. 2024-2Q sales decreased 1.9% (Metal Coatings up 2.4% and Precoat Metals down 5.0%) due to a soft market for precoated construction and appliances. Management remains optimistic that sales growth will resume pointing to rising new home startups and the AIIJ Act.

EBITDA margins held steady despite the sale decline. Metal Coatings maintained an EBITDA margin above 30% and Precoat Metals held its EBITDA margin near 20%. Importantly, the company has been making a concerted effort to reduce customer inventories. Lower inventories has helped reduce costs and improved cash flow leaving the company well positioned for seasonal sales declines during the winter months.


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

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

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

Release – Orion Group Holdings Honored with Leadership in Safety Award

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ORN

Oct 06, 2023

HOUSTON, Oct. 06, 2023 (GLOBE NEWSWIRE) — Orion Group Holdings, Inc. (NYSE: ORN) (“Orion” and “Company”), a leading specialty construction and engineering company today announced it received the Company Award for Leadership in Safety from the Council of Dredging and Marine Construction Safety (CDMCS). The award, presented at the 2023 CDMCS Annual Awards Dinner in Washington, D.C. on September 28, recognizes outstanding safety leadership in the dredging and marine construction industry.

Orion Group Holdings was recognized for advancing a safety-first culture through safety-conscious policies and procedures in the workplace, mentoring others in safety, training on identifying and properly controlling hazards, and placing high personal value on collaborative and proactive work toward improving safety. Travis Boone, President and Chief Executive Officer of Orion Group Holdings, accepted the award at the ceremony.

“I am honored to accept this award on behalf of our Orion team, who work collaboratively every day to meet exacting standards while safely delivering world-class marine construction and dredging services to our customers,” said Orion Group Holdings CEO Travis Boone. “Our safety-through-leadership success is born out of a strong advocacy for accident prevention, innovative training and a commitment to exceeding regulatory compliance. Being responsible and accountable is a priority for every team member, with special emphasis on performing every task safely, every time.”

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. https://www.oriongroupholdingsinc.com.

Contact:

Financial Profiles, Inc.
Margaret Boyce 310-622-8247
mboyce@finprofiles.com

Kratos Defense & Security (KTOS) – An Acquisition, a Contract, and More Opportunity

Posted on by cpereira@noblefcm.com


Friday, October 06, 2023

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.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.

Acquisition. Wednesday night, Kratos filed an S-3 disclosing the acquisition of Sierra Technical Services, Inc. (“STS”) for 866,026 shares, with an additional 979,038 shares subject to an earnout. Based on Wednesday’s $14.81 closing price, the first share tranche is valued at $12.8 million, with the earnout portion valued at an additional $14.5 million.

Award. In early August, STS was named as a “major subcontractor” for a $77.2 million total value award from the Pentagon’s Test Resources Management Center. The program is a re-start of a previous program to develop a fighter-sized stealthy target drone that can serve as a stand-in for advanced adversary combat jets and their electronic warfare capabilities in particular. Significantly, according to the award, “Upon successful completion of this prototype effort, the Government anticipates that a follow-on production effort may be awarded via either contract or transaction, without the use of competitive procedures if the participants in this transaction successfully complete the prototype project as awarded.”


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

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

Release – Orion Group Holdings, Inc. to Report Third Quarter 2023 Financial Results on Wednesday, October 25

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ORN

Oct 05, 2023

Conference Call to be held Thursday, October 26 at 8:00 a.m. Central Time

HOUSTON, Oct. 05, 2023 (GLOBE NEWSWIRE) — Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today announced that it will issue its financial results for the third quarter ended September 30, 2023, on Wednesday, October 25, 2023, after the close of the stock market.

A conference call and audio webcast with analysts and investors will be held the next day, October 26, at 8:00 a.m. Central Time to discuss the results and answer questions.

Live conference call: 800-715-9871

Live and archived webcast: https://edge.media-server.com/mmc/p/7mcj5p43 or the Company’s website at Orion Group Holdings, Inc. – Investor Relations & Shareholder Contact (oriongroupholdingsinc.com)

About Orion Group Holdings, Inc.

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas (oriongroupholdingsinc.com)

Contact:

Financial Profiles, Inc.
Margaret Boyce
310-622-8247
mboyce@finprofiles.com

V2X, Inc. (VVX) – A CFO Change

Posted on by cpereira@noblefcm.com


Wednesday, October 04, 2023

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

Joe Gomes, 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 CFO Transition. V2X announced this week that the Company has appointed Shawn Mural as its Senior Vice President and Chief Financial Officer (CFO). Mr. Mural will oversee all finance and accounting functions, including controllership, finance operations, planning, tax, treasury, investor relations, and corporate development. The appointment follows Susan Lynch’s retirement, which was effective on September 28, 2023.

Background on Shawn Mural. Mr. Mural has extensive experience in the old Raytheon. He joins V2X management from RTX Corporation and its subsidiaries, where he served most recently as Vice President of Finance and CFO of Raytheon. He provides experience in various leadership roles, as well as managing large integration and operational excellence-related activities in his 24 years at RTX. We believe Mr. Mural’s long tenure at Raytheon, where a good chunk of V2X’s business came from, will be a positive going forward.


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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. 

Orion Group Holdings (ORN) – More Awards

Posted on by cpereira@noblefcm.com


Monday, October 02, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

More Awards. In an 8-K release late last week, Orion Group Holdings reported that on September 22nd its Marine segment business entered into a design-build contract with an undisclosed customer valued at approximately $120 million. In addition, the Company noted that it was recently awarded new contracts in both its Concrete and Marine segments for a combined total of approximately $121 million. Unfortunately, the 8-K does not provide a date range for the $121 million of additional contracts so we do not know if the figure includes the $58 million of new awards announced in early August or if the $121 million is in addition to the $58 million.

Awaiting Additional Detail. While the Company has yet to issue a press release on the new business, we believe the Company likely will, at the same time providing additional detail regarding the nature of the work, timing, and customer details. In any case, the new awards continue a recent trend for Orion of adding substantial new business which should result in improved operating results in the future.


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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. 

Great Lakes Dredge & Dock (GLDD) – More Business

Posted on by cpereira@noblefcm.com


Monday, October 02, 2023

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

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

New Awards. Great Lakes was awarded some additional work, according to the DOD daily new awards announcements. The work totals some $48 million and continues the recent trend of building backlog.

Award 1. On September 27th, Great Lakes was awarded a $14.4 million modification to contract W912HY-21-C-0015 for removal and disposal of pipelines. Work will be performed in Corpus Christie, Texas, with an estimated completion date of March 20, 2024. Fiscal 2021 and 2023 civil construction funds and fiscal 2023 non-federal, Port of Corpus Christie funds in the amount of $14.4 million were obligated at the time of the award.


Get the Full Report

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

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

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

CoreCivic, Inc. (CXW) – New Contracts; Rising Populations

Posted on by cpereira@noblefcm.com


Wednesday, September 27, 2023

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.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.

New Contract. CoreCivic signed a new management contract with Hinds County, Mississippi for up to 250 adult male pre-trial detainees at the Company’s 2,672-bed Tallahatchie County Correctional Facility. The initial contract term is for two years. CoreCivic remains in discussions with additional federal, state, and local government agencies to utilize capacity in numerous CoreCivic facilities.

Other Business. CoreCivic recently accepted approximately 160 additional residents from the state of Idaho under an existing contract at the Saguaro Correctional Facility in Arizona. The Company also recently signed contract extensions with the state of Vermont at the Tallahatchie facility, with ICE at the Elizabeth Detention Center in New Jersey, with the Texas Department of Criminal Justice for five residential reentry centers in Texas, and with the state of Montana at the Crossroads Correctional Center in Montana.


Get the Full Report

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

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

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

Knowles Pushes Into High-Growth Markets With Strategic Cornell Dubilier Acquisition

Posted on by slightbourne@noblecapitalmarkets.com

Knowles Corporation is aggressively transforming into an industrial technology powerhouse. The components supplier announced it will acquire capacitor manufacturer Cornell Dubilier in a $263 million all-cash deal. This strategic purchase provides Knowles with expanded exposure to highly attractive end markets including medtech, defense, and industrial electrification.

Privately-held Cornell Dubilier, based in South Carolina, is a leader in film, electrolytic and mica capacitors used in demanding applications. Its capacitors are found in sectors like aerospace, automation, and critical care medical devices. The company generates over $135 million in revenue annually.

The acquisition brings new state-of-the-art capacitor technology into Knowles’ portfolio. This allows Knowles to offer more innovative solutions and cross-selling opportunities to customers. Cornell Dubilier’s offerings create a compelling combined value proposition for Knowles in the industrials space.

Knowles CEO Jeffrey Niew stated the purchase will help Knowles “grow with new and existing customers as we work to generate stronger earnings and cash flow and create shareholder value.” The deal is expected to contribute positively to Knowles’ earnings per share (EPS) beginning in 2024.

Specifically, the acquisition provides three key benefits:

Expands Knowles’ addressable market – Cornell Dubilier significantly expands Knowles’ serviceable available market through its broad capacitor capabilities and presence in diverse sectors including medtech, defense, aerospace, and industrial automation.

Take a moment to take a look at Kratos Defense & Security Solutions Inc., a company specializing in unmanned systems, satellite communications, missile defense, and hypersonic systems.

Diversifies product portfolio – Combined with Knowles’ existing precision devices like RF filters and ceramic capacitors, the deal delivers a wider range of capacitor products and solutions including film, electrolytic, and mica capacitors.

Boosts profitability – Knowles expects the acquisition to be accretive to earnings per share starting in 2024. The purchase is forecast to contribute to the bottom line while Knowles maintains balance sheet flexibility through its capital deployment strategy.

For investors, the strategic deal offers exposure to higher growth markets as Knowles pivots towards attractive areas with strong tailwinds. The companies noted defense spending increases, healthcare application growth, and industrial automation advances are driving demand.

The announced $263 million price consists of $140 million upfront and $123 million in seller notes due over the next two years. Knowles expects to finance the deal through cash, existing credit, and the deferred paper. The total fair value transferred is estimated at 9.6x Cornell Dubilier’s trailing EBITDA including synergies.

The acquisition caps off a transformative year for Knowles as it shifts towards high value industrial technology. Knowles recently restructured divisions to optimize its focus areas. It is also reviewing strategic options for its consumer microphones segment.

Together, these moves aim to reshape Knowles into a higher growth, higher margin technology supplier. The company is working to leverage megatrends like IoT, EVs, and 5G adoption. Knowles is strengthening its industrial roots to drive value for shareholders.

The Cornell Dubilier deal provides Knowles with an expanded presence in crucial growth industries. It also refocuses the company towards participating in rising opportunities like defense, medtech, and automation. For investors, the transformative purchase plants Knowles firmly in key sectors, unlocking value over the long-term.

Great Lakes Dredge & Dock (GLDD) – Another $34.8 Million of Awards

Posted on by cpereira@noblefcm.com


Monday, September 18, 2023

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

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

Additional Work. Over the past week, the Department of Defense announced two additional awards to Great Lakes with a total value of $34.8 million. Recall, the DOD only discloses awards in excess of $7.5 million in its press releases, so the published number likely under-estimates the actual amount of work Great Lakes has been awarded over time.

Award 1. On September 8th, Great Lakes was awarded a $16.2 million firm-fixed-price contract for beach nourishment. Work will be performed in Cape May, New Jersey, with an estimated completion date of March 20, 2024. Fiscal 2023 civil construction funds in the amount of $16.2 million were obligated at the time of the award.


Get the Full Report

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

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

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

EuroDry (EDRY) – EuroDry doubles down on shipping recovery

Posted on by cpereira@noblefcm.com


Wednesday, September 13, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

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

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

EuroDry announced the acquisition of three ships for $65 million. The three Ultramax ships are smaller than the fleet average but newer having been built in 2014-15. The ships are expected to be delivered in Oct-Nov and are yet to be commissioned. We have assumed the ships will be commissioned at a TCE rate of $12,000/day beginning in the 2024-1Q. This assumes an improvement in drybulk shipping rates in the next three months. Our models estimate that the three ships will add $4 million to EBITDA in 2024 implying a cost of 16 times EBITDA.

Of course this is not just about 2024 results. Chairman and CEO Aristides Pittas used the opportunity of the acquisition to reiterate his belief that market fundamentals will improve in the next two to three years due to a low orderbook. We agree with Mr. Pittas’s assessment but note that the prolonged war in Ukraine (lower grain trade) and a slower-than-expected economic rebound in China (steel and ore trade) could mean improvements are not seen in 2024.


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