Stock Monitor: KapStone Paper and Packaging Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free research report on WestRock Co. (NYSE: WRK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WRK as the Company’s latest news hit the wire. On January 29, 2018, the Company announced the acquisition of KapStone Paper and Packaging Corp. (NYSE: KS). The deal has a total enterprise value of approximately $4.9 billion including approximately $1.36 billion debt. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, WestRock and KapStone Paper and Packaging most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Details of the Transaction

As per the agreement signed by WestRock and KapStone, WestRock will acquire all the outstanding KapStone’s shares at $35 per share. The offer price is at a 32% premium of KapStone’s closing price of $26.54 on Friday, January 26, 2018, the last trading day before the deal was announced. Additionally, WestRock will assume KapStone’s net debt valued approximately $1.36 billion. KapStone’s shareholders can opt to receive $35 per share either in cash or 0.4981 WestRock’s shares for each KapStone’s share. WestRock has capped the limit of its equity to 25% for exchange against KapStone’s shares, however there is no ceiling for getting cash consideration for the KapStone’s shares.

Roger Stone, Chairman and Matt Kaplan, President and CEO of KapStone, have signed voting agreements and have agreed to vote in favor of the transaction.

The transaction is expected to be completed in Q3 2018 ending on September 30, 2018 and is subject to regulatory and shareholders’ approvals and other closing conditions.

WestRock plans to fund the cash portion of the deal via new debt and plans to refinance KapStone’s assumed debts at the close of the deal. The deal is not conditional on financing.

After the close of the deal, KapStone’s operations will be absorbed into WestRock’s Corrugated Packaging division.

Advantages for WestRock

The deal is expected to be accretive to WestRock’s adjusted earnings and cash flow immediately on closing of the deal. The deal is expected to result in approximately $200 million in annual cost synergies and performance improvements by end of fiscal 2021. The deal allows WestRock to increase supply of corrugated packaging to Victory Packaging and accelerates its plans to improve margins of its North American corrugated packaging business. KapStone’s existing facilities in West Coast will add to WestRock’s ability to serve customers in this region and at the same time reduce costs across its supply chain. The deal allows WestRock to sell its existing products to an expanded customer base. WestRock will be able to expand its product portfolio with the inclusion of KapStone’s complementary specialty kraft paper offerings. WestRock will be able to increase its portfolio of virgin fiber-based paper from 65% to 67% as 78% of KapStone’s paper is made of virgin fiber as only 22% paper is made from recovered fiber.

Management Comments

Commenting on the acquisition of KapStone, Steve Voorhees, CEO of WestRock, said:

“KapStone is a great fit with WestRock. Their complementary corrugated packaging and distribution operations will enhance WestRock’s ability to serve customers across our system, particularly in the western United States, and the addition of their specialty kraft paper products that we do not make enhances our differentiated portfolio of paper and packaging solutions.”

Matt Kaplan, President and CEO of KapStone, added:

“The agreement to combine with WestRock is a testament to the tremendous Company we have built and the hard work and accomplishments of the KapStone team. The transaction enables us to deliver an immediate and compelling cash premium to our shareholders.”

About KapStone Paper and Packaging Corp.

Northbrook, Illinois-based KapStone was formed in April 2005 and is a leading North American producer and distributor of unbleached Kraft paper and corrugated packaging products. Its wide range of products include containerboard, corrugated products, and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft. KapStone owns Victory Packaging and specializes in providing unique solutions for its clients via 65 distribution centers across US, Canada, and Mexico. KapStone has four paper mills, 22 converting plants, and more than 65 warehouses and distribution centers located across North America. It is supported by a team of 6,200 people.

KapStone’s annual revenues exceed $3 billion, and its preliminary, unaudited adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for Q4 2017 was around $130 million to $135 million.

About WestRock Co.

Atlanta, Georgia-based WestRock is a leading corrugated packaging Company that provides an unbeatable portfolio of paper and packaging products. It’s packaging products and solutions include Containerboard, Corrugated Containers, Displays, Folding Cartons, Kraft Paper, Paperboard, Partitions and Protective Packaging, etc.

The Company has more than 300 manufacturing facilities, design centers, research labs, and sales offices worldwide. WestRock has an employee strength of over 45,000 people.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, WestRock’s stock marginally declined 0.37%, ending the trading session at $68.16.

Volume traded for the day: 3.73 million shares, which was above the 3-month average volume of 1.64 million shares.

Stock performance in the last month – up 7.85%; previous three-month period – up 12.05%; past twelve-month period – up 26.79%; and year-to-date – up 7.83%

After yesterday’s close, WestRock’s market cap was at $17.33 billion.

Price to Earnings (P/E) ratio was at 24.62.

The stock has a dividend yield of 2.52%.

The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry.

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Stock Monitor: IDEX Corp. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free earnings report on 3M Co. (NYSE: MMM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MMM. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on January 24, 2018. The maker of Post-it notes, industrial coatings, and ceramics outperformed top- and bottom-line expectations, and raised its earnings guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For Q4 2017, 3M’s net sales grew 9.0% to $7.99 billion compared to $7.33 billion in Q4 2016. The Company’s organic local-currency sales increased 6.0% on a y-o-y basis, while acquisitions, net of divestitures, benefitted sales by 0.3% and foreign currency translation added 2.7%. 3M’s revenue numbers surpassed analysts’ estimates of $7.88 billion.

For the full year FY17, 3M’s net sales increased 5.1% to $31.66 billion compared to $30.11 billion in FY16. The Company’s organic local-currency sales increased 5.2%, while the combination of acquisitions and divestitures decreased sales by 0.6%. Foreign currency translation increased sales by 0.5% in FY17.

For Q4 2017, 3M’s operating income was $1.82 billion compared to $1.67 billion in Q4 2016.

3M’s GAAP earnings were $523 million, or $0.85 per diluted share, Q4 2017 compared to $1.16 billion, or $1.88 per diluted share, in Q4 2016. The Tax Cuts and Jobs Act (TCJA), signed into law in the reported quarter, resulted in a net tax expense of $762 million, or $1.25 per share, in Q4 2017. Excluding this expense, the Company’s earnings advanced 11.7% to $2.10 per share on a y-o-y basis. 3M’s earnings beat Wall Street’s estimates of $2.03 per share.

For FY17, 3M’s GAAP net income was $4.86 billion, or $7.93 per share, compared to $5.05 billion, or $8.16 per share, in FY16. Excluding the net impact of TCJA, the Company’s earnings stood at $9.17 per share in FY17, reflecting an increase of 12.4% compared to the year ago.

Business Group Results

During Q4 2017, 3M’s Industrial segment’s sales grew 6.9% to $2.7 billion in US dollars. The segment’s organic local-currency sales increased 3.9%, while foreign currency translation benefitted sales by 3.0%. For the reported quarter, the segment’s operating income totaled $527 million, down 5.5% on a y-o-y basis.

For Q4 2017, 3M’s Safety and Graphics segment’s sales jumped 15.0% to $1.5 billion in US dollars. The segment’s organic local-currency sales increased 10.7%; foreign currency translation aided sales by 3.2%; while acquisitions increased sales by 1.1%. The Safety and Graphics segment’s operating income soared 50% to $406 million on a y-o-y basis, including a divesture gain of $95 million.

3M’s Health Care segment’s sales climbed 6.0% to $1.5 billion in US dollars. The segment’s organic local-currency sales rose 3.1%; foreign currency translation increased sales by 2.8%; and acquisitions added 0.1%. The segment’s operating income jumped 12.3% to $464 million on a y-o-y basis.

During Q4 2017, 3M’s Electronics and Energy segment’s sales advanced 12.5% to $1.3 billion on a y-o-y basis. The segment’s organic local-currency sales increased 11.0%; and foreign currency translation added 1.8%, partially offset by a 0.3% decline related to divestitures. The segment’s operating income was $334 million, reflecting an increase of 2.6% on a y-o-y basis.

3M’s Consumer segment’s sales totaled $1.2 billion for Q4 2017, up 7.3% in US dollars. The segment’s organic local-currency sales grew 5.4%, and foreign currency translation increased sales by 1.9%. The Consumer segment’s operating income jumped 17.6% to $269 million.

Cash Matters

For Q4 2017, 3M’s operating cash flow was $1.9 billion, contributing to a conversion of 268% of net income to free cash flow. This result included a $600 million contribution to the Company’s US defined benefit pension plan in the reported quarter, following the signing of the TCJA. The net impact of the TCJA and pension contribution positively impacted free cash flow conversion by 112%.

3M paid $699 million in cash dividends to shareholders and repurchased $504 million of its own shares during Q4 2017.

2018 Outlook

For the full year FY18, 3M is forecasting earnings per share to be in the range of $10.20 to $10.70 versus the prior expectations of $9.60 to $10.00. The Company affirmed its organic local-currency sales growth expectations of 3% to 5%, and free cash flow conversion of 90% to 100%.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, 3M’s stock declined 1.75%, ending the trading session at $251.54.

Volume traded for the day: 2.39 million shares, which was above the 3-month average volume of 1.96 million shares.

Stock performance in the last month – up 6.71%; previous three-month period – up 7.16%; past twelve-month period – up 43.39%; and year-to-date – up 6.87%

After yesterday’s close, 3M’s market cap was at $150.32 billion.

Price to Earnings (P/E) ratio was at 31.72.

The stock has a dividend yield of 1.87%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors has a free review on American Campus Communities, Inc. (NYSE: ACC) following the Company’s announcement that it will begin trading ex-dividend on February 01, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 31, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on ACC:

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Dividend Declared

On January 23, 2018, American Campus Communities, announced that its Board of Directors declared a regular quarterly dividend of $0.44 per share of common stock, payable on February 16, 2018, to shareholders of record at the close of business on February 02, 2018.

American Campus Communities’ indicated dividend represents a yield of 4.48%, which is substantially higher than the average dividend yield of 4.25% for the financial sector. The Company has raised dividend for five years in a row.

Dividend Insights

American Campus Communities has a dividend payout ratio of 76.2%, which denotes that the Company distributes approximately $0.76 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts’ estimates, American Campus Communities is forecasted to report earnings of $0.72 per share for the next year compared to the Company’s annualized dividend of $1.76 per share. One of the primary reasons for the difference between earnings and annualized dividend is that American Campus Communities is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.

Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company’s profitability and capacity to pay and to sustain dividends. For instance, for the three-month period ended September 30, 2017, American Campus Communities reported net loss attributable to the Company of $1.3 million, or $0.01 per fully diluted share, versus net income of $9.6 million, or $0.07 per fully diluted share, in Q3 2016.

On the other hand, American Campus Communities reported quarterly FFO-Modified (FFOM) per share of $0.44 per fully diluted share, or $61.2 million, for Q3 2017 versus $0.45 per fully diluted share, or $60.4 million, for Q3 2016. The FFO number indicates that the Company should be able to comfortably cover its dividend payout.

Recent Development for American Campus Communities

On January 12, 2018, American Campus Communities announced that the Company’s project, The Summit at University City, received the National Association of Home Builders’ (NAHB) 2017 Multifamily Pillars of the Industry Award for Best Student Housing Rental Apartment Community. The Company’s projects were also recognized as finalists for Best Example of Green Building Concepts, Best Student Housing Rental Apartment Community, and Best Mixed-Use Community.

American Campus Communities has been recognized at NAHB’s Pillars of the Industry Awards on 28 occasions since 2005, 14 of which are first place awards, including the Multifamily Development Firm of the Year in 2013.

About American Campus Communities, Inc.

American Campus Communities is the largest owner, manager, and developer of high-quality student housing communities in the United States. The Company is a fully integrated, self-managed, and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. As of September 30, 2017, American Campus Communities owned 166 student housing properties containing approximately 102,500 beds. Including its owned and third-party managed properties, the Company’s total managed portfolio consisted of 204 properties with approximately 131,300 beds.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, American Campus Communities’ stock dropped 1.16%, ending the trading session at $38.19.

Volume traded for the day: 1.19 million shares, which was above the 3-month average volume of 833.84 thousand shares.

After yesterday’s close, American Campus Communities’ market cap was at $5.22 billion.

Price to Earnings (P/E) ratio was at 94.53.

The stock has a dividend yield of 4.61%.

The stock is part of the Financial sector, categorized under the REIT – Residential industry.

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Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

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PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

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Stock Monitor: PetMed Express Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free research report on Aradigm Corp. (NASDAQ: ARDM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ARDM as the Company’s latest news hit the wire. On January 29, 2018, the Company announced the receipt of a Complete Response Letter (CRL) from the US Food and Drug Administration (FDA) regarding its New Drug Application (NDA) for Linhaliq™ as a treatment for non-cystic fibrosis bronchiectasis (NCFBE) patients with chronic lung infections with Pseudomonas Aeruginosa. The FDA has determined that it cannot approve the NDA in its present form and has provided specific reasons for this action along with recommendations needed for resubmission. The areas of concern include clinical data, human factors validation study, and product quality. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Recommendations Provided by the FDA

CRL’s recommendations included an independent third-party verification of the Phase-3 results via analyses of source data as per the statistical analysis plan, and an additional Phase-3 clinical trial that demonstrates a significant treatment effect on clinically meaningful endpoints which could evaluate the co-primary endpoints of frequency and severity of exacerbations to assess for durable evidence of efficacy over a period of two years, or more, if scientifically justified.

The CRL also included a request to conduct another Human Factors Study to demonstrate that the product packaging and instructions for use are effective, additional product quality information with respect to microbiology, and a new in vitro drug release method development report.

Aradigm to Develop Plans to Move Towards Resubmission of Linhaliq™ NDA

Igor Gonda, Ph.D., President and Chief Executive Officer (CEO) of Aradigm, stated that the Company remains confident in the efficacy, safety, and quality of Linhaliq™ and will request a meeting with the FDA to discuss the topics covered in the CRL with the view to developing plans to move towards a resubmission of the Linhaliq™ NDA as soon as possible. Gonda added that Aradigm is committed to continue working on the approval of Linhaliq™ for NCFBE patients. The Company is focusing on the resubmission in the near future for marketing approval in the European Union.

Aradigm Reported Results of the FDA Advisory Committee Meeting on Linhaliq™

On January 11, 2018, the Company announced that the FDA did not recommend approval for Linhaliq™ as a treatment for NCFBE patients with chronic lung Pseudomonas Aeruginosa infections. The Advisory Committee voted 3-12 (1 abstain) against approval, and stated that Aradigm did not provide substantial evidence of the safety and efficacy of ciprofloxacin dispersion for inhalation in delaying the time to first exacerbation after starting treatment in NCFBE patients with chronic lung infections with Pseudomonas Aeruginosa. Aradigm submitted the NDA for Linhaliq™ to the FDA in July 2017.

Linhaliq™ Application Based on Data from Three Clinical Trials

The Linhaliq™ application was based on data from three clinical studies. Two Phase-3 studies, ORBIT-3 and ORBIT-4, were identically designed, multinational, randomized (2:1), double-blind, and placebo controlled. Together with the Phase-2b ORBIT-2 study, these trials were part of the NDA submission to provide evidence of the clinical benefit of Linhaliq™ for patients with NCFBE who have chronic lung infections with Pseudomonas Aeruginosa.

About Non-Cystic Fibrosis Bronchiectasis (NCFBE)

NCFBE is a chronic inflammatory lung disease characterized by irreversible dilation of the bronchi and bronchioles, symptoms of persistent cough and expectoration, and recurrent infective exacerbations. It is often a consequence of a vicious cycle of inflammation, chronic lung infections, and bronchial wall damage. No licensed therapies are currently available for its treatment. NCFBE patients who have chronic infections with Pseudomonas Aeruginosa have a 6.5-fold increase in hospitalizations, three times higher mortality, and a worse quality of life compared to those without Pseudomonas Aeruginosa infections.

About Linhaliq™

Linhaliq™, formerly known as Pulmaquin®, is composed of a mixture of liposome encapsulated and unencapsulated ciprofloxacin. Ciprofloxacin, available in oral and intravenous formulations, is a widely prescribed antibiotic. It is used often to treat acute lung infections because of its broad-spectrum antibacterial activity against various bacteria, such as Pseudomonas Aeruginosa.

About Aradigm Corp.

Founded in 1991 and headquartered in Hayward, California, Aradigm is an emerging specialty pharmaceutical Company developing and commercializing a portfolio of drugs delivered by inhalation for the treatment of severe respiratory diseases. Bolstered by its depth of expertise in pulmonary drug delivery and an extensive intellectual property portfolio, the Company is uniquely positioned to fulfill unmet needs in pulmonary medicine.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, Aradigm’s stock declined 5.66%, ending the trading session at $1.50.

Volume traded for the day: 477.76 thousand shares, which was above the 3-month average volume of 404.17 thousand shares.

Stock performance in the previous six-month period – up 7.11%

After yesterday’s close, Aradigm’s market cap was at $23.45 million.

The stock is part of the Healthcare sector, categorized under the Drug Delivery industry.

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