6:35PM CLARCOR reaffirms FY13 sales guidance of +2.5-4.0% YoY to ~$1.15-1.167 bln vs $1.16 bln Capital IQ Consensus Estimate (CLC) 54.17 -0.81 :
6:33PM Wright Medical to acquire MicroPort Scientific Corporation OrthoRecon business for $290 mln (WMGI) 24.95 -0.60 : Co announced a definitive agreement under which MicroPort Medical B.V., a subsidiary of MicroPort Scientific Corporation, will acquire Wright's OrthoRecon business. The purchase price is $290 million, subject to a net working capital adjustment, and is payable in cash at closing, which is expected to occur by the end of the third quarter or early in the fourth quarter of 2013. Wright's OrthoRecon business consists of hip and knee implant products and generated global revenue of approximately $269 million in 2012. The OrthoRecon business has established hip and knee franchise brands including DYNASTY and CONSERVE hips, PROFEMUR modular stems, SUPERPATH minimally invasive hip surgical instrumentation, and ADVANCE and EVOLUTION medial-pivot knee implants. According to industry research, the worldwide hip and knee reconstruction market is approximately $14 billion in 2012. In addition, the China Hip and Knee implant market is estimated to be approximately $1.3 billion by 2018 and is growing at approximately 17% per year.
As a result of the transaction, Wright Medical plans to update its financial guidance on its second quarter conference call, which is currently scheduled for August 1, 2013, and its previous guidance is no longer valid. However, Wright is providing Extremity segment revenue guidance for 2013 of approximately $235 million to $240 million, which anticipates some potential minor, short-term dis-synergies as a result of the transaction. Beginning in the second quarter of 2013, the OrthoRecon segment will be accounted for as a discontinued operation in Wright's GAAP and non-GAAP income statements. Wright plans to provide additional details regarding the financial impact of the transaction when it reports it second quarter 2013 results.
6:30PM CLARCOR misses by $0.01, misses on revs; narrows FY13 EPS below consensus (CLC) 54.17 -0.81 : Reports Q2 (May) earnings of $0.66 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.67; revenues rose 1.0% year/year to $287.58 mln vs the $290.53 mln consensus.
Higher diluted earnings per share (prior year was $0.65) were driven by a 1% increase in net sales from last year's second quarter while operating margin remained consistent at 17.2%. The increase in consolidated net sales compared with the second quarter of 2012 was influenced by higher sales in CLARCOR's Engine/Mobile and Industrial/Environmental Filtration segments partially offset by lower sales in its Packaging segment.
Co issues downside guidance for FY13, sees EPS of $2.45-2.55 (narrowed from $2.45-2.60) vs. $2.56 Capital IQ Consensus Estimate. "There continue to be significant macroeconomic uncertainties in all of our primary geographic markets as we enter the second half of the year...We project fiscal year 2013 cash from operations to be between $125 million and $135 million, capital expenditures to be between $55 million and $65 million and our effective tax rate to be between 32.0% and 32.5%."
6:08PM MTS Systems announces collaboration with GE Power Conversion to supply a simulation system to RWTH Aachen University (MTSC) 58.41 -0.45 :
5:54PM Pharmacyclics: Ibrutinib study results in patients with relapsed/refractory chronic lymphocytic leukemia published in The New England Journal of Medicine (PCYC) 84.70 -3.56 : Co announced that The New England Journal of Medicine (NEJM) published results online of a Phase 1b/2 study evaluating the investigational oral Bruton's tyrosine kinase (BTK) inhibitor ibrutinib in patients with relapsed/refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL). Ibrutinib was shown to be safe and effective in patients with relapsed/refractory CLL or SLL, even in patients who were at high-risk due to factors such as deletion of part of chromosome 17 (del 17p).
Results of a separate study examining the safety and efficacy of ibrutinib monotherapy for the treatment of relapsed/refractory mantle cell lymphoma (MCL) has also been published online in NEJM today. Pharmacyclics sponsored both studies and is jointly developing ibrutinib with Janssen Research & Development, LLC. The open-label study reported on 85 patients with relapsed/refractory CLL or SLL. The majority of patients had advanced disease and had previously undergone treatment with several rounds of therapies before enrollment in the study. Approximately one-third of patients enrolled in the study presented with a malignancy carrying del 17p. Patients with del17p typically respond poorly to chemoimmunotherapy, which is the current standard treatment for CLL.
5:53PM Fidelity National announces adjustment to the consideration mix in the acquisition of Lender Processing Services (LPS); cash component increased by $500 mln (FNF) 23.26 -0.91 : Co announced that it was exercising its option to adjust the consideration mix in the previously announced acquisition of Lender Processing Services (LPS) by increasing the cash component of the total consideration by approximately $500 million and correspondingly decreasing the stock component of the total consideration by an equal amount. FNF will directly provide $300 million of the $500 million increase, with funds affiliated with Thomas H. Lee Partners, L.P. ("THL") providing the remaining $200 million. The total consideration will be unchanged and the additional $500 million cash component will be offset by an equal reduction in the stock component of the total consideration.
5:17PM Zion Oil & Gas to conduct in-well testing operations at its Elijah #3 well (ZN) 2.06 -0.54 : Co announced that the Board of Directors approved of in-well testing at its Elijah #3 well in the Asher-Menashe License, in which an application was submitted to Israel's Petroleum Commissioner for a third one-year extension on April 26, 2013. During Zion's 2013 Annual Shareholders' Meeting, the Board of Directors on June 12, 2013 approved an Authority for Expenditure ("AFE") proposal to conduct in-well testing of its Elijah #3 well within the Jurassic geological section, at approximately 7,380 feet (2,250 meters), with operations likely to occur in September, 2013. Zion then plans to perforate the zone of interest, fluid stimulate the carbonate rock, and perform a drill stem test. A drill stem test is a procedure for isolating and testing the pressure, permeability and productive capacity of a geological formation within a well. The test is a key method of obtaining information on the formation fluid and establishing whether a well has found a commercial hydrocarbon reservoir.
5:16PM Helix Energy announces new $900 mln credit facility and notice of redemption of $275 mln 9.5% senior unsecured notes (HLX) 23.88 -0.53 : Co announced that it has entered into a credit agreement with a syndicated bank lending group in the amount of $900 million, consisting of a $600 million revolving credit facility and a $300 million term loan. The term loan will be funded in conjunction with the early redemption of the Company's remaining $275 million Senior Unsecured Notes. The new facility replaces the Company's existing credit facility that would have expired in July 2015.
4:57PM Willis Lease further expands revolving credit facility to $450 mln from $430 mln (WLFC) 11.92 -0.28 : Co announced that it increased its revolving credit facility to $450 million from $430 million. The credit facility is available to Willis Lease on a revolving basis through November 2016. This and other credit facilities support the company and its subsidiaries in financing its lease portfolio, which stood at over $1 billion as of March31, 2013.
4:33PM PetroQuest Energy announces acquisition of Shallow Water Gulf Of Mexico assets and acceleration of its onshore programs; updates 2013 and provides 2014 production guidance (PQ) 4.50 -0.14 : Co announced that it has entered into definitive agreements to acquire certain shallow water Gulf of Mexico producing properties for approximately $193 million in cash. The transactions will be effective as of January 1, 2013 and are expected to close in July 2013, subject to customary closing conditions. Transaction overview:
4:30PM Pfizer announces final exchange ratio of 0.9898 for Zoetis (ZTS) exchange offer and automatic extension of offer to midnight on Friday, June 21, 2013 (PFE) 29.10 -0.30 :
4:27PM Chimera Investment declared Q2 common stock cash dividend of $0.09 per common share (unchanged from prior) (CIM) 3.09 -0.02 :
4:18PM Diamond Foods: Updates Legal Proceedings in 8-K (DMND) 20.48 +0.28 : On May 29, 2013, Diamond Foods, Inc. entered into a Stipulation and Agreement of Settlement to resolve previously disclosed stockholder derivative claims, including In re Diamond Foods, Inc., Shareholder Derivative Litigation and Astor BK Realty Trust v. Diamond Foods, Inc. A copy of the Stipulation and Agreement of Settlement is attached as Exhibit 99.1 to this report.
On June 14, 2013, the Superior Court for the State of California, San Francisco County, issued an order granting preliminary approval of the settlement. A hearing to determine whether the Court should issue an order finally approving the proposed settlement has been scheduled for August 7, 2013. As set forth in the Notice of Derivative Settlement, attached as Exhibit 99.2 to this report, any objections to the settlement must be made by stockholders of the Company as of the May 29, 2013 record date, in writing, and delivered to counsel for Diamond by July 24, 2013.
4:17PM Stratasys to acquire MakerBot for initial value of ~$403 mln in all stock transaction (SSYS) 84.60 -1.52 : Co and MakerBot, a leader in desktop 3D printing, announced the signing of a definitive merger agreement whereby privately held MakerBot has agreed to merge with a subsidiary of Stratasys in a stock-for-stock transaction. Under the terms of the merger agreement, Stratasys will initially issue approximately 4.76 million shares in exchange for 100% of the outstanding capital stock of MakerBot. The proposed merger has an initial value of $403 million based on Stratasys' closing stock price of $84.60 as of June 19, 2013. MakerBot stakeholders also qualify for performance-based earn-outs that provide for the issue of up to an additional 2.38 million shares through the end of 2014. The proposed earn-out payments have an initial value of up to $201 million based on the Stratasys closing stock price as of June 19, 2013. Those payments, if earned, will be made in Stratasys shares or cash (in an amount reflecting the value of the Stratasys shares that would have otherwise been issued at the relevant earn out determination date), or a combination thereof, at Stratasys' discretion. The merger is expected to accelerate Stratasys' growth rate and be slightly dilutive to Non-GAAP earnings per share in 2013, and accretive to Stratasys' Non-GAAP earnings per share by the end of 2014. Stratasys intends for MakerBot to operate as a separate subsidiary. MakerBot reports that during the first quarter of 2013, the company generated $11.5 million in total revenue, compared to $15.7 million for all of 2012.
4:16PM Brigus reports high grade drilling results at the 147 Zone ("These deep, high grade drill results substantiate the strong down-plunge continuity of the 147 Zone and continue to confirm the potential for future underground development at Grey Fox") (BRD) 0.58 -0.02 : Co additional drilling results from its ongoing drill program at the 147 Zone on the Grey Fox project. These results will be included in an updated NI 43-101 resource estimate on the Grey Fox property that will be released this month. "These deep, high grade drill results substantiate the strong down-plunge continuity of the 147 Zone and continue to confirm the potential for future underground development at Grey Fox," said Howard Bird, Brigus' Senior Vice President of Exploration.
"The 147, Contact and Grey Fox South zones all remain open for further expansion and three drill rigs will continue to systematically test these targets throughout the year." The 147, Contact and Grey Fox South Zone all occur within close proximity of each other and provide Brigus with near term production growth opportunities because of their proximity to the Black Fox Mine infrastructure.
4:16PM SandRidge Energy appoints CFO Bennet to CEO (former CEO Ward leaving the co) (SD) 5.08 +0.11 : Co announced that the Board of Directors has named CFO James Bennett CEO and president and that lead independent director Jeffrey Serota will serve as interim non-executive chairman, effective June 19, 2013. SandRidge also announced that Tom Ward, the former Chairman and CEO of SandRidge, is leaving the co. The Board's decision to replace Ward reflects its judgment that, despite Ward's many contributions to SandRidge, new leadership is in the best interests of the co and its shareholders at this time.
4:15PM LipoScience: Analysis demonstrates cost-effectiveness of managing low-density lipoprotein particle number to reduce cardiovascular disease risk (LPDX) 6.61 -0.10 : Co announced the online publication of data in the Journal of Clinical Lipidology demonstrating the economic benefits of managing to a low-density lipoprotein particle (LDL-P) number measured by NMR as part of a cardiovascular disease (CVD) risk-reduction strategy.
"Managing to Low-Density Lipoprotein Particles Compared to Low-Density Lipoprotein Cholesterol: A Cost-Effective Analysis," is the first of several anticipated publications to establish the economic value proposition for LDL-P. This study models the economic benefits of managing to both LDL-P and low-density lipoprotein cholesterol targets, in comparison to managing LDL-C alone, to help reduce cardiovascular events and associated costs. The analysis was modeled over a three-year period and is based on published clinical data from the Multi-Ethnic Study of Atherosclerosis, a community-based population study. The cost-effectiveness of managing to both LDL-P and LDL-C targets was demonstrated in the first year of additional lipoprotein testing, and this became a significant cost savings to the healthcare system by year three for individuals managed to both LDL-P and LDL-C treatment goals. In addition, management of LDL-P, whether alone or in combination with LDL-C management, was associated with lower incidences of heart attacks and strokes - benefits that can also result in improved productivity and more time at work.
"This economic analysis shows that managing to an LDL-P goal can help lower the direct and indirect costs associated with cardiovascular events resulting from high LDL-P in the presence of normal LDL-C levels,"
4:12PM Jabil Circuit announces reorganization plan (JBL) 19.82 -0.10 : Please see 16:03 for Q3 EPS (beat by 2 cents, beats on revenues) and Q4 guidance (EPS below, revs in line).
From Press Release
In addition to the segment guidance, Jabil announced its intention to realign its global operations to more appropriately reflect current market conditions and customer needs. The company indicated that they began consultation with employees during the third fiscal quarter. Jabil management did not provide specific locations under consideration out of respect for employees, their families and their representatives, and statutory and consultation periods required. The company currently estimates that the realignment could result in approximately $188 million of charges, including the $28 million of charges incurred during the company's third quarter. It is currently estimated that $60 to $70 million will be recorded in Jabil's fourth fiscal quarter of 2013 and the balance during its fiscal years 2014 and 2015. Jabil estimates that the majority of the $140 million cash associated with these actions will be used in fiscal 2014.
4:11PM FBR & Co announces results of self-tender offer; co accepted for purchase sixty-four shares of its common stock, or less than 0.1% of its shares outstanding, at $23.10 per share (FBRC) 24.65 +0.37 :
4:10PM Annaly Capital Mgmt cuts Q2 dividend to $0.40 from $0.45 per share in prior quarter (NLY) 12.99 -0.37 :
4:09PM Ashford Hospitality Trust announces offering of 11 mln shares of common stock (AHT) 13.60 -0.19 : Co announced that it has commenced a follow-on public offering of 11 mln shares of common stock. Ashford intends to use the net proceeds of the offering to effect the planned spin-off of Ashford Hospitality Prime, Inc. that the Company announced on June 17, 2013, including, because of the way the spin-off is structured, to pay the common stock dividend just for this new share issue for the quarter ending June 30, 2013. If the spin-off is not effected, Ashford intends to use the net proceeds of the offering for other general corporate purposes, including, without limitation, financing future hotel-related investments, capital expenditures, working capital and repayment of debt or other obligations.
4:09PM Perceptron receives full redemption of long-term illiquid investment (PRCP) 7.50 : Co announced that Primus Financial Products, LLC ("Primus"), redeemed the remaining outstanding shares of its Floating Rate Cumulative Preferred Stock Series I and Series II ("Preferred Stock") at the full value of $1,000 per share. Perceptron held 2,600 shares of the Preferred Stock and received $2.6 mln.
These securities have been held as long-term investments, and were written down to their current carrying value of ~$1.47 mln in fiscal year 2009. The redemption will result in an increase of ~$1.0 mln in net income in the fourth quarter of Perceptron's 2013 fiscal year, and represents an expected increase of ~$0.12 in basic earnings per share.
4:08PM Red Hat beats by $0.01, reports revs in-line (RHT) 46.22 -0.41 : Reports Q1 (May) earnings of $0.32 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.31; revenues rose 15.4% year/year to $363.25 mln vs the $359.98 mln consensus.
4:07PM Steelcase reports EPS in-line, misses on revs; guides Q2 EPS in-line, revs in-line (SCS) 15.15 +0.13 : Reports Q1 (May) earnings of $0.13 per share, excluding $0.03 in unfavorable items, in-line with the Capital IQ Consensus Estimate consensus of $0.13; revenues fell 1.2% year/year to $667.1 mln vs the $691.33 mln consensus. Revenues were lower than expected primarily due to the timing of shipment dates associated with first quarter orders in the Americas, and revenue shortfalls in France and Northern Europe.
Organic revenue decline in Q1 was 1% after adjusting for $2.8 million of unfavorable currency translation effects and a favorable impact of $3.5 million from recent dealer acquisitions, net of a divestiture. The Americas organic revenue growth was less than 1% compared to the prior year, which included revenue from two particularly large projects in the energy sector, and EMEA experienced a 3% organic revenue decline. Revenue continued to include a higher than normal mix of project business from some of the company's largest corporate customers. "Following twelve consecutive quarters of year-over-year organic revenue growth, we experienced a modest decline in the first quarter. We are not too concerned with this decline, as order growth in the Americas was better than expected, resulting in a strong quarter-end backlog, and customer visits and project activity remain high."
Co issues in-line guidance for Q2, sees EPS of $0.25-0.29, excluding $0.03 in unfavorable items, vs. $0.27 Capital IQ Consensus; sees Q2 revs of $760-785 mln vs. $768.43 mln Capital IQ Consensus. The co projects second quarter organic revenue growth in the range of 1 to 4% over the prior year. First quarter order growth in the Americas approximated 7% compared to the prior year, and customer order backlog at the end of the first quarter increased ~10% compared to the prior year. EMEA first quarter orders declined by ~5% compared to the prior year, while customer order backlog at the end of the first quarter increased ~7% compared to the prior year.
4:06PM Tech Data receives NASDAQ notice relating to late quarterly report and announces NASDAQ acceptance of plan to regain compliance (TECD) 48.64 -0.59 : Co announced that it received, as expected, a notice from the NASDAQ Listing Qualifications Department stating that the Company is not in compliance with NASDAQ Listing Rule 5250 because the Company has not timely filed its Form 10-Q for the quarterly period ended April 30, 2013.
4:06PM Hanesbrands promotes Gerald Evans to Chief Operating Officer (HBI) 52.45 +0.11 : Co announced that it has promoted Gerald W. Evans Jr. to chief operating officer effective Aug. 1, 2013. Evans served as the company's co-chief operating officer since 2011.
4:06PM Micron beats by $0.01, beats on revs (MU) 13.97 +0.21 : Reports Q3 (May) GAAP earnings of $0.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.03; revenues rose 6.7% year/year to $2.32 bln vs the $2.25 bln consensus.
"As the memory market shows improvement in both DRAM and NAND fundamentals, we continue to focus our efforts on advancing our operational efficiency," said Micron CEO Mark Durcan. "We have also made progress in securing the necessary approvals related to the Elpida acquisition and are optimistic we will be able to close the transaction in our fiscal fourth quarter ending August 29, 2013."
4:06PM Itron has been selected by Larsen & Turbo, a construction co in India, to provide an advanced metering solution to the Delhi Jal Board (ITRI) 43.43 -0.02 : Co announced that it is helping address water conservation and efficiency efforts in India by delivering advanced automation technology. Itron has been selected by Larsen & Turbo, the largest construction company in India, to provide an advanced metering solution to the Delhi Jal Board.
The solution includes 120,000 advanced automated meters, 40,000 standard meters, mobile collection equipment and software, which will be used to collect, measure and analyze water usage. With 120,000 advanced meters deployed in New Delhi, the project will be India's largest mobile advanced metering system when completed.
4:06PM Finisar beats by $0.03, reports revs in-line; guides Q1 EPS above consensus, revs in-line (FNSR) 14.52 +0.08 : Reports Q4 (Apr) earnings of $0.20 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.17; revenues rose 2.1% year/year to $243.4 mln vs the $242.6 mln consensus.
Co issues guidance for Q1, sees EPS of 0.22-0.26, excluding non-recurring items, vs. $0.20 Capital IQ Consensus Estimate; sees Q1 revs of $245-260 mln vs. $248.94 mln Capital IQ Consensus Estimate.
Non-GAAP gross margin increased to 32.2% from 30.7% in the preceding quarter, primarily as the result of favorable product mix.
"I am pleased to report fiscal fourth quarter revenues of $243.4 million, which is $5.1 million, or 2.1%, greater than the prior quarter. Our growth in revenues came primarily from sales of 10G and 100G Ethernet transceivers and transponders for datacom applications. Our favorable product mix in the quarter enabled us to achieve gross margin and earnings per diluted share that exceeded our guidance range."
Outlook Details: The Company indicated that it currently expects revenues for the first quarter of fiscal 2014 to be in the range of $245 to $260 million; GAAP operating margin to in the range of ~5.0% to 6.5%. The Company also noted that during the fourth fiscal quarter of 2013 and during the first week of the first quarter of fiscal 2014, the Company completed the divestment of two non-strategic subsidiaries of Ignis AS, which was acquired by Finisar in May 2012.
4:05PM Safe Bulkers announces the commencement of trading of its series b preferred shares on the NYSE (SB) 5.35 -0.04 : Co announced the commencement of trading of its 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares on the New York Stock Exchange. The ticker symbol of the Preferred Shares is 'SBPRB.'
4:05PM Progenics Pharm announces public offering of common stock, size not disclosed (PGNX) 4.80 -0.01 : All of the shares to be sold in the offering are to be sold by Progenics, with the proceeds to be used for research and development and general corporate purposes. Jefferies LLC is acting as sole book-running manager for the proposed offering.
4:03PM Jabil Circuit beats by $0.02, beats on revs; guides Q4 EPS below consensus, revs in-line (JBL) 19.82 -0.10 : Reports Q3 (May) earnings of $0.56 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.54; revenues rose 5.1% year/year to $4.47 bln vs the $4.4 bln consensus. Co issues mixed guidance for Q4, sees EPS of $0.50-0.58, excluding non-recurring items, vs. $0.59 Capital IQ Consensus Estimate; sees Q4 revs of $4.55-4.65 bln vs. $4.6 bln Capital IQ Consensus Estimate.l
4:02PM Zalicus publishes preclinical data in Science Translational Medicine showing the beneficial effects of applying the Zalicus combination high-throughput screening technology for the potential treatment of ebolavirus infections (ZLCS) 0.56 +0.00 : Co announced that it has published preclinical data in Science Translational Medicine showing the beneficial effects of applying the Zalicus combination high-throughput screening (cHTS) technology for the potential treatment of ebolavirus (EBOV) infections. In the paper entitled "FDA-Approved Selective Estrogen Receptor Modulators Inhibit Ebola Virus Infection," the scientists, including drug developers from Zalicus and collaborators from the U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID) and investigators from the University of Virginia School of Medicine (UVA), describe screening a series of approved drugs and select molecular probes to identify drugs with antifilovirus activity. Key findings include:
4:02PM American Capital Agency declares Q2 dividend on Series A Preferred (AGNC) 24.44 -0.90 : Co has declared a cash dividend on its 8.000% Series A Cumulative Redeemable Preferred Stock of $0.50 per share for the second quarter 2013. The dividend is payable on July 15, 2013 to preferred shareholders of record as of July 1, 2013, with an ex-dividend date of June 27, 2013.
4:01PM Five Below launches secondary offering of 8,563,172 shares of its common stock by selling shareholders (FIVE) 39.50 -0.39 : All of the shares are being offered by selling shareholders, including certain members of Five Below's management team and Board of Directors (and their affiliates). Goldman, Sachs & Co., Barclays Capital Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are acting as joint book-running managers of the offering, UBS Securities LLC and Wells Fargo Securities, LLC are acting as co-managers of the offering, and Goldman, Sachs & Co., Barclays Capital Inc. and Jefferies LLC are the representatives of the underwriters.