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Blogging for Business: Editing your Writing

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-Latest article on PR Newswire’s Small Business PR Toolkit offers expert advice on the editing process

NEW YORK /PRNewswire/ — If blogging is part of your small business content marketing strategy, your goal should be to consistently produce content relevant to your target audience. With all of the other hats you’re wearing it might be difficult to create high-quality content, let alone polished and error-free content on a consistent basis.

Logo – http://photos.prnewswire.com/prnh/20110831/NY59180LOGO

@SteveLazuka, Founder of Interact Media, understands this challenge and in his latest post offers seven ways to improve your editing skills.

  1. Eliminate fluff.  Lazuka suggests to be concise with your writing and avoid unnecessary words that lengthen sentences. Check to see if you are using the most direct route to convey your messaging and avoid words such as “in order,” “here” and “quite.”
  2. Switch to active voice.  On rare occasions it may be necessary to use passive voice in your content, but switching to active voice can instill confidence in audience, which can also lead to higher levels of engagement.
  3. Split sentences. Consider splitting up long sentences that contain more than one idea. These can easily be identified by a heavy use of commas. Splitting sentences can help avoid rambling and keep readers focused.

For discussion on the four remaining tips and tricks to assist your editing process, read Lazuka’s complete posthere.

PR Newswire’s Small Business PR Toolkit is a comprehensive resource that provides small businesses and entrepreneurs the tools to develop an affordable public relations and marketing plan that helps generate interest from potential customers, engage with key audiences and grow their businesses. The toolkit features relevant content such as informative white papers, interactive webinars and how-to articles and premium access to educational resources, as well as the opportunity to take advantage of special offers designed specifically for small businesses. To request information on how PR Newswire can help your small business, click here. You can receive updates on new Small Business PR Toolkit content by following @prnsmallbiz on Twitter.

About PR Newswire
PR Newswire (www.prnewswire.com) is the premier global provider of multimedia platforms that enable marketers, corporate communicators, sustainability officers, public affairs and investor relations officers to leverage content to engage with all their key audiences. Having pioneered the commercial news distribution industry over 60 years ago, PR Newswire today provides end-to-end solutions to produce, optimize and target content — from rich media to online video to multimedia — and then distribute content and measure results across traditional, digital, mobile and social channels. Combining the world’s largest multi-channel, multi-cultural content distribution and optimization network with comprehensive workflow tools and platforms, PR Newswire enables the world’s enterprises to engage opportunity everywhere it exists. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and the Asia-Pacific region, and is a UBM plc company.

Contact:
Amanda Eldridge
Director, Strategic Channels
201-360-6906
Amanda.eldridge@prnewswire.com

Source: PR Newswire Association LLC

Related stocks: LSE:UBM OTC-PINK:UBMPY

Written by asiafreshnews

May 9, 2016 at 2:25 pm

Posted in Uncategorized

Lao Holdings N.V. Files Legal Actions Related To Expropriation And Planned Sale Of Savan Vegas Casino Against The Lao Government And San Marco Capital Partners, LLC

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WASHINGTON /PRNewswire/ — Lao Holdings N.V., the parent company of Sanum Investments Limited, has filed three legal actions in the past week against the Lao Government for violating the 2014 settlement agreement reached by both parties, stipulating the sale of the Savan Vegas Hotel and Casino, and other assets, for maximum value to the benefit of all parties. These actions have been taken in direct response to the expropriation and planned sale of Sanum’s gaming and hotel complex located in Savannkhet, Laos.

“All of the actions taken by the Lao Government over the past two years have been a blatant attempt not only to avoid, but systematically obliterate its legal obligation to work with us in good faith,” said Jody Jordahl, President of Sanum Investments. “If the Government had followed the terms of our agreement, we would not be taking these actions.”

The first action, filed on April 26, 2016, asks an international arbitral tribunal first constituted in 2012 to revive an arbitration to hear Lao Holdings’ claims that the Government of the Lao People’s Democratic Republic (the “Lao Government”) breached its obligations under a Bilateral Investment Treaty known as the Agreement on Encouragement and Reciprocal Protection of Investments Between the Lao People’s Democratic Republic and the Kingdom of the Netherlands (the “Netherlands-Laos BIT”). While Laos has incorrectly claimed that the Settlement vests it with authority to sell Savan Vegas and other Gaming Assets on behalf of Sanum and the Government, if the arbitration is revived, even this veil of legitimacy would disappear.

This arbitration had been suspended pending the performance of a 2014 settlement agreement between Sanum, Lao Holdings and the Lao Government. The second action, filed on May 2, 2016, asks a new international arbitral tribunal to determine whether Lao Government actions undertaken since the settlement was concluded in 2014 breach the Netherlands-Laos BIT. The third action, also filed on May 2, 2016, was filed in United States District Court for the District of Delaware against San Marco Capital Partners, LLC, as well as its sole owner and employeeKelly Gass, alleging claims against San Marco and Ms. Gass arising from their alleged mismanagement of the operation and planned sale of Savan Vegas.

Both actions filed under the Netherlands-Laos BIT are administered by the International Centre for the Settlement of Investment Disputes (“ICSID”), an agency affiliated with the World Bank. The first action, filed pursuant to the terms of the 2014 settlement agreement, alleges that the Lao Government materially breached the settlement agreement when it seized control over all of Lao Holdings’ commercial properties in Laos, including the Savan Vegas Casino. Other acts alleged to materially breach the settlement agreement included the Lao Government’s retroactive assessment of over US $70 million in taxes; its groundless pursuit of criminal allegations against Lao Holdings, Sanum, and affiliated individuals; its actions that will lead to a low-ball sale of Savan Vegas; and its stated intention to ensure that Lao Holdings does not receive any of the proceeds from the Savan Vegas sale. If the material breach application is successful, the ICSID Arbitration that Lao Holdings filed against Laos in 2012, which was intended to be resolved by the 2014 settlement agreement, will be revived. The amount of damages claims that will be at issue if the 2012 ICSID arbitration is revived is approximately US $890 million.

Lao Holdings’ new action under the Netherlands-Laos BIT arises from the renewed efforts of the Lao Government to impose taxes on the Savan Vegas Casino that both provided the pretext for its seizure and will prevent it from being sold for a fair market price. This new action also concerns the Lao Government’s unlawful admitted expropriation of the Casino and other recent acts taken with the effect and intent of depriving Sanum and Lao Holdings of the benefits of any of their investments in Laos.

The third action, pursued in the United States, has been commenced against San Marco Capital Partners, LLC as well as its sole owner and employee Kelly Gass. The action alleges that both San Marco and Ms. Gass are responsible for the current mismanagement of and botched sale efforts of the Casino. San Marco and Ms. Gass, were paid nearly $2 million from revenues generated by the Savan Vegas Casino, to faithfully serve as fiduciaries to the owners of that facility (i.e. Sanum and the Lao Government) in managing the Casino and other gaming operations. The complaint states that Gass purported to know “how to run and sell” these assets but, instead, “Gass has served only [Sanum and Lao Holdings’] adversary, the [Lao Government], a corrupt and totalitarian regime that admittedly expropriated Plaintiffs’ assets in Laos with Gass’s cooperation and assistance.” The Complaint also charges that “[u]nder Gass’s management, the financial rfeporting is opaque at best; the only thing that is clear is millions of dollars of unexplained disbursements, while the 80% shareholder receives nothing.”

Starting in 2007, Sanum and Lao Holdings invested heavily in Laos, building and developing valuable gaming assets. In August 2012, facing expropriatory taxes, withheld or reneged concessions, the seizure of assets and other acts of governmental malfeasance, Lao Holdings began proceedings against the Lao Government before the ICSID Tribunal.

On the eve of the merits hearing, in June 2014, the parties reached a settlement agreement that imposed obligations upon the Lao Government. Under the agreement, the Lao Government promised to facilitate the sale of Sanum and Lao Holdings’ gaming assets to a third party, and to negotiate an agreement for the development of commercial property elsewhere in Laos. The settlement agreement provided that the ICSID arbitration would be suspended pending successful implementation of the settlement’s terms. It also provided for reinstatement of the proceedings in the event of a material breach by the Lao Government.

Sanum and Lao Holdings will continue to evaluate the situation and take actions as required to protect their interests.

More detail on the cases can be seen at:https://www.dropbox.com/sh/nhu3dahrs43gu67/AABVYXhuTsylLBHJk3eIfS2wa?dl=0

CONTACT:
Sanum Investments
John Sario
+1-702-983-1198
Media@sanuminvestment.com

KARV Communications
+1-212-333-0275

Source: Lao Holdings N.V.

Written by asiafreshnews

May 9, 2016 at 2:11 pm

Posted in Uncategorized

Geoforce introduces next generation industry leading ruggedized GPS tracking devices

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-Latest generation GT1 and GT0 enable the industrial Internet of Things (IoT)

DALLAS /PRNewswire/ — Geoforce (www.geoforce.com), a world leader in providing global traceability solutions for field equipment, announced today the commercial availability of its next generation GTx family of satellite-based, battery-powered GPS equipment tracking devices.
The GTx family currently includes:

  • The GT1 Global Asset Tracker – a ruggedized, intrinsically safe tracking device with industry best IECEX/ATEX Zone 0 certification, which allows it to operate safely for extended periods in explosive and other extreme environments;
  • The GT0 Compact Asset Tracker – the world’s smallest industrial grade GPS tracker.
GT0 and GT1
GT0 and GT1

Photo – http://photos.prnewswire.com/prnh/20160504/363652

Both devices, which operate with Geoforce’s Track and Trace web-based software and mobile application, can be purchased at the Geoforce Direct online store, or by contacting a Geoforce representative.

“With the launch of our GT1 and GT0 products in 2013, Geoforce created the market for highly ruggedized, intrinsically safe tracking devices,” said James S. MacLean III, President & CEO of Geoforce. “Over the last three years, we’ve deployed nearly 50,000 of the previous generation devices in over 70 countries. That experience led us to numerous advancements which have resulted in the new GTx family being the most rugged, reliable, and intelligent devices on the market.”

The next generation GTx devices were subjected to intense quality assurance and reliability testing. “Through our rigorous global testing program, this new line has proven its durability, water-resistance and long battery life even before becoming commercially available,” said Gary Naden, CTO of Geoforce.

Significant improvements in embedded power management have maximized battery life even in the harshest environments. Embedded batteries eliminate the hassle of field replacement and create a “set-and-forget” customer experience with no maintenance for up to six years, depending on usage profile and operating environment. The devices also support Bluetooth Low Energy (BLE 4) interface to enable third party sensors and interaction with mobile devices.

About Geoforce

Combining a cloud-based software platform with rugged GPS devices and global satellite and cellular networks, Geoforce’s Track and Trace solutions bring control to often chaotic field operations. The company operates the world’s largest network of connected field equipment within the oil & gas industry, and its asset tracking solutions are used in many other industries, including agriculture, construction, and transportation.

Media contact
Siera Hanson+1.972.546.4176
media@geoforce.com

Photo – http://photos.prnasia.com/prnh/20160505/8521602888

Source: Geoforce
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Written by asiafreshnews

May 9, 2016 at 12:11 pm

Posted in Uncategorized

5 Attributes of a Fantastic Website Lead Form

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NEW YORK /PRNewswire/ — Small businesses recognize how powerful of a tool a business website can be to engage and connect with your customers. Web properties should be a priority for your business, but with increased maintenance also comes the need to actively evaluate your website. Is your website an effective sales tool? Is it working for your customer and, ultimately, your business? Are your lead generation forms improving close rates and saving you time?

PR Newswire's PR Toolkit logo. (PRNewsFoto/PR Newswire Association LLC)
PR Newswire’s PR Toolkit logo. (PRNewsFoto/PR Newswire Association LLC)

Photo – http://photos.prnewswire.com/prnh/20110831/NY59180LOGO

In the latest article posted to PR Newswire’s Small Business PR Toolkit, contributing author Brad Shorr highlights five attributes of a great website lead form that can assist you with lead prioritization.

  1. Budget response.  Having a field in your lead-generation form for budget-related information is an excellent way to weed out legitimate leads from those that aren’t ready to purchase. Any lead that is received where a budget has been allocated should be prioritized and followed up with immediately.
  2. Job titles. Ensure your forms have a field for job titles in order to quickly identify decision-makers who may be ready to make a purchase.
  3. Previous contact. If your lead has made previous contact with your organization, chances are these leads will be easier to close than first-time inquiries. Consider adding a form field that asks, “Have your purchased from us or considered purchasing from us in the past?”

For discussion on the two remaining attributes of a fantastic website lead form, read Shorr’s complete article here:http://bit.ly/1W7EAj1.

PR Newswire’s Small Business PR Toolkit is a comprehensive resource that provides small businesses and entrepreneurs the tools to develop an affordable public relations and marketing plan that helps generate interest from potential customers, engage with key audiences and grow their businesses. The toolkit features relevant content such as informative white papers, interactive webinars and how-to articles and premium access to educational resources, as well as the opportunity to take advantage of special offers designed specifically for small businesses. To request information on how PR Newswire can help your small business, click here. You can receive updates on new Small Business PR Toolkit content by following @prnsmallbiz on Twitter.

About PR Newswire
PR Newswire (www.prnewswire.com) is the premier global provider of multimedia platforms that enable marketers, corporate communicators, sustainability officers, public affairs and investor relations officers to leverage content to engage with all their key audiences. Having pioneered the commercial news distribution industry over 60 years ago, PR Newswire today provides end-to-end solutions to produce, optimize and target content — from rich media to online video to multimedia — and then distribute content and measure results across traditional, digital, mobile and social channels. Combining the world’s largest multi-channel, multi-cultural content distribution and optimization network with comprehensive workflow tools and platforms, PR Newswire enables the world’s enterprises to engage opportunity everywhere it exists. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and the Asia-Pacific region, and is a UBM plc company.

Contact:
Amanda Eldridge
Director, Strategic Channels
201-360-6906
Amanda.eldridge@prnewswire.com

Photo – http://photos.prnasia.com/prnh/20160505/8521602890

Source: PR Newswire Association LLC

Related stocks: LSE:UBM OTC-PINK:UBMPY

Written by asiafreshnews

May 9, 2016 at 12:05 pm

Posted in Uncategorized

CNH Industrial, a global leader in sustainability, presents its 2015 Sustainability Report

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LONDON /PRNewswire/ — CNH Industrial (NYSE: CNHI / MI: CNHI), the reconfirmed Industry Leader in the Dow Jones Sustainability (DJSI) World and Europe Indices for the fifth consecutive year; the 2015 DJSI Capital Goods Industry Group Leader; included in the CDP Climate A List; a Company acknowledged amongst a number of other important sustainability indices with 6.32% of its free float held by Socially Responsible Investors (SRI), has published its 2015 Sustainability Report. The Report presents the results achieved and describes the Company’s main projects and targets.

Main environmental results:

  • -2% of energy consumption per hour of production in comparison to 2014;
  • 48% of the total energy consumption at manufacturing facilities is from renewable sources;
  • 18,000 tons of CO2 emissions avoided due to the adoption of energy saving projects (equaling 59 flights between London and Chicago);
  • 27% of water recycled (equal to the amount of water contained in 812 Olympic-size swimming pools);
  • -9% waste produced per hour of production in comparison to 2014 (equal to the weight of 869 Statues of Liberty);
  • 7 monitored plants near protected or highly bio diverse areas.

Main social results:

  • 94% of supply entrusted to local suppliers;
  • 100% of new suppliers evaluated according to sustainability criteria;
  • 150 suppliers involved in the CDP supply chain questionnaire;
  • $3.7 million invested in local community projects;
  • $84 million spent on Occupational Health and Safety projects;
  • -9% in the occupational accident frequency rate in comparison to 2014;
  • $4.5 million invested in employee training;
  • $450,000 in grants and scholarships awarded to the sons and daughters of employees.

The report is divided into three sections:

  • Our Sustainable Company – contains a description of how CNH Industrial operates in a global context, outlining the aspects that are material to the Company and its stakeholders and the process through which they are identified. It also contains the results achieved during the year and the Company’s objectives for the future;
  • How We Get Things Done – illustrates how the company takes care of its employees and how it interacts with local communities as well as public and private organizations;
  • Our Value Chain – describes the CNH Industrial value chain: from the concept of a new product to its design, from production to sale, from the relationship with the commercial network to customer support until the end of the product life cycle.

The 2015 Sustainability Report presents:

  • More than 100 targets that CNH Industrial has taken on for the future;
  • Approximately 200 qualitative and quantitative indicators in the areas of economics, environment and society;
  • Over 180 environmental or social projects and initiatives, of which more than 50 are specifically targeted towards the well-being of the communities in proximity of CNH Industrial locations.

Leader in sustainability

In 2015, CNH Industrial reconfirmed its prominent position in sustainability in the Dow Jones Sustainability Indices World and Europe. In addition to being named as Industry Leader in its sector (Machinery and Electrical Equipment), the Company was also named as Capital Goods Industry Group Leader, a classification which only includes the 24 companies evaluated as being the most sustainable in the world. CNH Industrial further received 100A, the maximum score in the CDP Climate Change program, which demonstrates its commitment towards climate change mitigation. The Company was also included in other sustainability indices, such as: ECPI Global Agriculture Equity, ECPI Global Developed ESG Best in Class Equity, Euronext Vigeo Europe 120, Euronext Vigeo Eurozone120, FTSE4Good, FTSE ECPI Italia SRI Benchmark, FTSE ECPI Italia SRI Leaders, MSCI Global Sustainability Indexes, STOXX Global ESG Environmental Leaders Index, STOXX Global ESG Social Leaders Index, STOXX Global ESG Leaders Index, STOXX Europe Sustainability Index and EURO STOXX Sustainability Index.

To reinforce the link between its business strategy and upcoming trends, the Company has undertaken a series of new projects. Alongside stakeholder engagement, activities, through which stakeholders are involved in examining the relevancy of certain priority aspects for CNH Industrial, a mega trend study was started to evaluate which of these aspects the company will have to consult in the future. In view of this, CNH Industrial also analyzed the UN Sustainable Development Goals (SDGs) in order to evaluate its own positioning with respect to the targets defined by the United Nations and, in parallel, it joined the Commit to Action campaign promoted by CDP, during the UN Climate Change Conference (COP21), taking on two commitments.

Innovation

Innovation is one of the company’s strategic levers for maintaining a high competitive advantage.

2015 in numbers:

  • $877 million invested in research & development;
  • 50 research centers;
  • More than 7,700 active patents;
  • 66 scientific collaborations and 85 collaborative research projects;
  • 6,000 employees (of its overall workforce of more than 64,000) working in Research & Development.

Manufacturing activities that respect the environment

Thanks to the World Class Manufacturing (WCM) program currently implemented at 54 CNH Industrial manufacturing sites worldwide, the company was able to save over $174.46 million in 2015. WCM is a structured system of methodologies that focuses on continuous improvement with the objective of eliminating all waste and losses in manufacturing plants. At the end of 2015, a total of ten plants achieved the silver level status and 21 achieved the bronze level. Within the scope of the program, employees actively contributed towards optimizing factory activities during the year by providing 422,000 suggestions for improvement on a global level.

Climate change mitigation is one of the most urgent challenges facing the international community, and CNH Industrial assumes its responsibilities by investing in the optimization of energy consumption and decreasing the use of fossil fuels in order to reduce CO2 emissions. In 2015, $11 million were invested to improve the energy performance of its plants. With regards to environmental protection, CNH Industrial invested $37 million in 2015.

2015 results:

  • 2% reduction in energy consumption per hour of production in comparison to 2014;
  • 48% of the total energy consumption at manufacturing facilities from renewable sources;
  • more than 81,000 tons of CO2 emissions avoided due to the increased use of energy from renewable sources;
  • 89% of waste recovered;
  • 7 monitored plants near protected or highly bio diverse areas.

Development of eco-friendly products

Products from CNH Industrial brands are designed and manufactured to demonstrate ever-greater efficiency and ever-lower CO2 emissions. To reach this objective, the company focuses its strategy on the following:

  • Improved consumption and energy efficiency: increase product performance and reduce fuel consumption and Total Cost of Ownership;
  • Use of alternative fuels: offer a wide range of products powered by fuels with low emission levels, such as: natural gas, biomethane and biodiesel. In 2015, CNH Industrial sold 3,255 compressed natural gas (CNG) powered engines produced by its brand FPT Industrial, and more than 900 natural gas vehicles through its brand Iveco.
  • Development of non-conventional propulsion systems: the commercial vehicle segment offers buses, light-duty and medium range vehicles with non-conventional electric or hybrid (electric and diesel) drive systems. In comparison to diesel engines, a medium range truck can reduce its fuel consumption by up to 30% in the city. For buses, average reductions in fuel consumption and CO2 emissions of up to 35% can be achieved.
  • Development of telematics systems that improve productivity: precision farming management provides intelligent solutions for Agricultural Equipment and collects data for enhancing the entire agricultural cycle: plowing, sowing, fertilizing and harvesting. The Construction Equipment segment offers an innovative telematics system that uses a GPS satellite localizer for the remote monitoring of a number of operations and factors to maximize fleet distribution across construction sites, increase efficiency and optimize consumption and emissions. The Commercial Vehicles sector features a system for on-road vehicles for simplifying and integrating infotainment, navigation and driving assistance devices and providing fleet management services.
  • Supporting responsible use: assist customers with understanding the optimal use of their products in order to enhance efficiency and reduce emissions. This goal is achieved through a number of approaches such as: electronic systems, computer tools and targeted training activities.

A responsible supply chain

CNH Industrial takes a responsible approach towards managing its supply chain, maintaining transparent relationships and long-lasting, mutually satisfactory partnerships. In addition, one of CNH Industrial’s commitments is to promote environmentally and socially responsible behaviors along its own supply chain.

2015 in numbers:

  • 5,380 suppliers of direct materials;
  • 94% of supply entrusted to local suppliers;
  • 100% of new suppliers are evaluated according to sustainability criteria;
  • 1,254 suppliers requested to complete a self-assessment questionnaire;
  • 65 sustainability audits performed at supplier plants worldwide;
  • 150 suppliers involved in the CDP supply chain questionnaire.

In the community: creating shared value

The Company promotes an open dialogue to ensure that the legitimate expectations of local communities are duly taken into consideration, and voluntarily endorses projects and activities that encourage their economic, social, and cultural development. In 2015, CNH Industrial invested $3.7 million in local communities through projects, donations and employee volunteer efforts. These investments spanned the areas of social welfare, emergency relief, education, youth development and arts and culture.

2015 results:

  • 273 young people received training through the TechPro2 initiative in Brazil, China, Ethiopia, Italy and South Africa;
  • 3 macro programs supporting communities, particularly for educational and recreational activities for children and teenagers in difficult situations in Brazil;
  • 350 volunteer working hours logged by employees to build houses for the homeless in the United States;
  • 1,500 young farmers and unemployed young people trained through three Agri Training Centers in India.

Some of the organizations with which the Company has established community partnerships and collaborations in 2015 include: The American Cancer Society, Expo Milano 2015, Food and Agriculture Organization of the United Nations (FAO), Cooperação para o Desenvolvimento and Morada Humana, FIA Action for Road Safety, Future Farmers of America, Habitat for Humanity, Hogares San Francisco (IAP), Homeless Assistance Leadership Organization (HALO), Pastoral do Menor, Safe Schools, Slow Food, Telethon Foundation, Trans-Help, United Way.

Our people

CNH Industrial considers its people an essential asset. Operating in dynamic and highly competitive industries, success is achieved first and foremost through the talent and passion of skilled individuals. CNH Industrial strongly believes that business growth goes hand in hand with personal growth. Therefore, its investments are focused on programs for increasing skills as well as training and projects regarding health and safety.

2015 in numbers:

  • 64,391 employees worldwide;
  • $84 million spent on Occupational Health and Safety projects;
  • 55 OHSAS 18001 certified plants;
  • -9% in the occupational accident frequency rate in comparison to 2014;
  • $4.5 million invested in employee training;
  • $450,000 in grants and scholarships awarded to the sons and daughters of employees.

The interactive version of CNH Industrial’s 2015 Sustainability Report is available online at:
http://bit.ly/CNH_Industrial_2015-Sustainability-Report

CNH Industrial N.V. (NYSE: CNHI /MIB: CNHI), a world leader in the capital goods sector backed by solid industrial expertise, an extensive range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. For more information on CNH Industrial:www.cnhindustrial.com

 

Media contacts:

Sustainability contacts

CNH Industrial Corporate Communications

CNH Industrial Sustainability

Tel.: +44 (0)2077 660 326

Tel.: +39 011 00 62 627

E-mail: mediarelations@cnhind.com  

E-mail: sustainability@cnhind.com  

www.cnhindustrial.com

Logo – http://photos.prnewswire.com/prnh/20160119/323658LOGO
Photo – http://photos.prnewswire.com/prnh/20160505/364059
Photo – http://photos.prnewswire.com/prnh/20160505/364058

Source: CNH Industrial N.V.

Related stocks: Milan:CNHI NYSE:CNHI

Written by asiafreshnews

May 9, 2016 at 11:54 am

Posted in Uncategorized

Monster Worldwide Reports First Quarter 2016 Financial Results

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WESTON, Massachusetts /PRNewswire/ —  

First Quarter Highlights:

  • Cash EBITDA of $19.5 Million Increases Significantly over $8.1 Million in Last Year’s First Quarter
  • Non-GAAP EPS of $0.07 Meets Expectations; GAAP EPS of $0.02
  • Revenue of $157.8 Million Down 1% Sequentially at Constant Currency and Actual Rates
  • European Business Demonstrates Sequential and Year-Over-Year Revenue Growth at Constant Currency
  • New Products Continue to Grow and Contribute 8% to Revenue
  • Repurchased 1.1 Million Shares of Common Stock For a Total of $3 Million; Repurchased $10 Million in Aggregate Principal Amount of Convertible Notes

Monster Worldwide, Inc. (NYSE: MWW) today reported financial results for the first quarter ended March 31, 2016.

Tim Yates, Chief Executive Officer and Chief Financial Officer, stated, “We continue to make steady progress on implementing our All the Jobs, All the People strategy which is improving our value proposition for our customers and job seekers.  While results in our North America business in the first quarter were mixed, we have experienced improving trends in our European business for the third consecutive quarter.  Additionally, we repurchased both equity and a portion of the convertible notes outstanding, demonstrating our confidence in our business and starting in the second quarter, as previously noted, we will be increasing investments in a couple of targeted product and marketing areas designed to accelerate top line growth. Overall, we are pleased with our earnings performance and cash generation during the quarter, and we remain focused on revenue growth.”

First Quarter 2016 Results

Revenue from continuing operations of $157.8 million decreased 1% sequentially at both constant currency and actual rates, and 7% at constant currency and 9% at actual rates compared to last year’s first quarter.  Revenue from the Company’s Careers – North America operations decreased 11% year over year to $109.2 million.  Revenue from Careers – International of $48.6 million was flat year over year at constant currency and decreased 4% at actual rates. Historical quarterly revenue data is available in the Company’s supplemental financial information.

Total GAAP operating expenses from continuing operations decreased to $149.4 million compared to $184.9 millionin the first quarter of 2015.  Net income from continuing operations was $1.8 million, or $0.02 per share, compared to income of $7.4 million, or $0.08 per share, in the comparable quarter in 2015.

Non-GAAP net income from continuing operations was $6.2 million, or $0.07 per share, compared to $6.7 million, or$0.07 per share, in last year’s first quarter.  Cash EBITDA grew to $19.5 million compared to $8.1 million in last year’s first quarter.  Pro-forma items are described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables.

Net cash used for operating activities was $8.6 million and free cash flow was a negative $18.7 million in the first quarter of 2016.  During the quarter the Company announced an adjustment to working capital that impacted net cash in the quarter.  Deferred revenue from continuing operations was $270.9 million compared to $279.8 million as of December 31, 2015.  The Company ended the 2016 first quarter with total available liquidity of $231.6 millioncompared to $267.8 million at the end of the previous fourth quarter.

Repurchase Program

In the first quarter of 2016, the Company repurchased 1.1 million shares of the Company’s common stock at a value of $3.0 million. In October 2015, the Board of Directors authorized a $75 million share repurchase program over a period of 24 months.  During the first quarter of 2016, the Board authorized the use of funds allocated to the share repurchase program for the repurchase of the Company’s 3.5% convertible notes due in 2019.  On March 22, 2016, the Company repurchased $10.0 million in aggregate principal amount of the convertible notes for $9.5 million in cash, plus accrued interest. Dependent on market conditions, the Company will execute the purchase of shares and convertible notes under the authorization as a percentage of future Cash EBITDA and free cash flow, which may be adjusted periodically while retaining a conservative capital position.

Guidance

For the second quarter of 2016, the Company expects Cash EBITDA, which is defined as operating income excluding depreciation, amortization, non-cash impairment and stock-based compensation, to be in the range of $13 million to $18 million.  Adjusted EBITDA is expected to be in the range of $15 million to $20 million. The Company stated that Cash EBITDA is its primary profitability metric, however, since the Company has referred to Adjusted EBITDA as a profitability metric in prior periods, this guidance is being provided for the second quarter of 2016.

Non-GAAP earnings per share for the second quarter of 2016 is expected to be in the range of break-even to $0.04, which excludes $2 million to $3 million of stock-based compensation and $1.3 million of non-cash debt discount amortization related to the convertible notes.

For the full year 2016, Cash EBITDA is expected to be in the range of $85 million to $100 million.  The Company now expects year-over-year revenue growth in the low-to-mid single digits at constant rates in the fourth quarter of 2016.  Historical data on Non-GAAP items is available on the Company’s supplemental financial information.

Conference Call and Webcast

First quarter 2016 results will be discussed on Monster Worldwide’s quarterly conference call on May 5, 2016 at8:30 AM ET.  A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at http://ir.monster.com.  To join the conference call by telephone, please dial (888) 317-6003 or (412) 317-6061 and reference conference ID# 9266011.  A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast.  A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.

For a replay of the conference call, please dial (877) 344-7529 or (412) 317-0088 and reference ID# 10084999.  This number is valid until midnight on May 12, 2016.

About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW) is a global leader in connecting people to jobs, wherever they are.  For more than 20 years, Monster has helped people improve their lives with better jobs, and employers find the best talent.  Today, the Company offers services in more than 40 countries, providing some of the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities.  Monster continues its pioneering work of transforming the recruiting industry with advanced technology using intelligent digital, social and mobile solutions, including our flagship website monster.com® and a vast array of products and services.  For more information visit http://monster.com/about.

Special Note:  The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to Cash EBITDA, Adjusted EBITDA and Non-GAAP earnings per share for the second quarter of 2016, revenue growth for the fourth quarter of 2016, and Cash EBITDA for the full year 2016.  Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.  Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict.  Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof.  The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain Non-GAAP financial information as additional information for its operating results.  These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from Non-GAAP measures reported by other companies.  The Company believes that its presentation of Non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.

Non-GAAP revenue, operating expenses, operating income, operating margin, income from continuing operations, income from discontinued operations, net of tax, net income, net income attributable to Monster Worldwide, Inc., and diluted earnings per share attributable to Monster Worldwide, Inc. all exclude certain pro-forma items including: non-cash stock based compensation expense; costs incurred in connection with the Company’s restructuring programs; certain separation charges; certain management advisory fees; amortization of the debt discount and deferred financing costs associated with our 3.50% convertible senior notes due 2019; the results of our former South Korean subsidiary as it has been classified as discontinued operations; and gain on partial sale of an equity method investment

In the first quarter of the calendar year 2015, the Company began to utilize a fixed long-term projected Non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods.  This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items.  When projecting this long-term rate, the Company evaluated a five-year financial projection comprising the current and the next four years that exclude the income tax effects of the Non-GAAP pre-tax items described above, eliminates the effects of non-recurring and period specific items which can vary in size and frequency, and is reflective of the anticipated future geographic mix of income among tax jurisdictions.  The projected rate also assumes no new acquisitions or disposals in the five-year period, eliminates the effect of tax valuation allowances, and takes into account other factors including the Company’s current tax structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates.  The Non-GAAP tax rate is 35%.  The Company intends to re-evaluate this long-term rate on an annual basis or if any significant events that may materially affect this long-term rate occur.  This long-term rate could be subject to change for a variety of reasons, which may include (but are not limited to) for example, significant changes in the geographic earnings mix including future acquisition or disposition activity, having less income than anticipated, or fundamental tax law changes in major jurisdictions where the Company operates.

Non-GAAP diluted shares includes the impact, based on the average share price for the period, of the Company’s outstanding capped call transactions, which are anti-dilutive in GAAP earnings per share, but are expected to mitigate the dilutive effect of the Company’s 3.50% convertible senior notes due 2019.

The Company uses these Non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans.  These Non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Cash EBITDA is defined as income (loss) from continuing operations or net income (loss), as applicable, before income (loss) in equity interests, net, provision for (benefit from) income taxes, interest and other, net, gain on partial sale of equity method investment, depreciation, amortization, non-cash compensation expense and certain non-cash impairment charges.  The Company considers Cash EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance.  Cash EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

Adjusted EBITDA is defined as income (loss) from continuing operations or net income (loss), as applicable, before income (loss) in equity interests, net, provision for (benefit from) income taxes, interest and other, net, gain on partial sale of equity method investment, depreciation, amortization, non-cash compensation expense, non-cash impairment charges, costs incurred with the Company’s restructuring programs, and the impact of the pro-forma items discussed above.  The Company considers Adjusted EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance.  Adjusted EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

Free cash flow is defined as cash flows from operating activities less capital expenditures.  Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment.  Free cash flow reflected herein is a Non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.  Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure.

Net cash is defined as cash and cash equivalents less total debt.  Total available liquidity is defined as cash and cash equivalents, plus unused borrowings under our credit facility.  The Company considers net cash and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations.  The Company also uses net cash and total available liquidity, among other measures, in evaluating its choices for capital deployment.  Net cash and total available liquidity are presented herein as Non-GAAP measures and may not be comparable to similarly titled measures used by other companies.

 

MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended March 31,

2016

2015

Revenue

$          157,787

$          172,882

Salaries and related

78,149

89,350

Office and general

41,781

44,794

Marketing and promotion

29,482

30,631

Restructuring and other special charges

20,092

Total operating expenses

149,412

184,867

Operating income (loss)

8,375

(11,985)

Gain on partial sale of equity method investment

8,849

Interest and other, net

(3,477)

(3,206)

Income (loss) before income taxes and income (loss) in equity interests, net

4,898

(6,342)

Provision for (benefit from) income taxes

3,307

(13,945)

Income (loss) in equity interests, net

250

(220)

Income from continuing operations

1,841

7,383

Income from discontinued operations, net of tax

1,806

Net income 

1,841

9,189

Net income attributable to noncontrolling interest

(1,019)

Net income attributable to Monster Worldwide, Inc.

$              1,841

$              8,170

Basic earnings per share attributable to Monster Worldwide, Inc.:

Income from continuing operations

$                0.02

$                0.08

Income from discontinued operations, net of tax 

0.01

Basic earnings per share attributable to Monster Worldwide, Inc.

$                0.02

$                0.09

Diluted earnings per share attributable to Monster Worldwide, Inc.:

Income from continuing operations

$                0.02

$                0.08

Income from discontinued operations, net of tax 

0.01

Diluted earnings per share attributable to Monster Worldwide, Inc.

$                0.02

$                0.09

Weighted average shares outstanding:

Basic

88,922

89,137

Diluted 

89,786

91,474

Reconciliation of Income from continuing operations to Cash EBITDA and Adjusted EBITDA:

Income from continuing operations

$              1,841

$              7,383

(Income) loss in equity interests, net

(250)

220

Provision for (benefit from) income taxes

3,307

(13,945)

Interest and other, net

3,477

3,206

Gain on partial sale of equity method investment

(8,849)

Depreciation and amortization of intangibles

10,025

11,490

Stock-based compensation

1,079

4,405

Restructuring non-cash charges

4,226

Cash EBITDA

$            19,479

$              8,136

Advisory fees

1,558

Separation charges

417

Restructuring and other special charges, less non-cash items

15,866

Adjusted EBITDA

$            21,454

$            24,002

 

 

MONSTER WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended March 31,

2016

2015

Cash flows (used for) provided by operating activities:

Net income 

$                1,841

$                9,189

Adjustments to reconcile net income to net cash (used for) provided by operating activities:

Depreciation and amortization

10,025

11,807

Provision for doubtful accounts

504

323

Stock-based compensation

1,079

4,465

Deferred income taxes

1,636

3,933

Non-cash restructuring charges

4,226

(Income) loss in equity interests, net

(250)

220

Gain on partial sale of equity method investment

(8,849)

Changes in assets and liabilities, net of acquisitions:

Accounts receivable

16,204

(255)

Prepaid and other 

312

(4,298)

Deferred revenue

(9,452)

9,946

Accounts payable, accrued liabilities and other

(30,541)

(3,948)

Total adjustments

(10,483)

17,570

Net cash (used for) provided by operating activities

(8,642)

26,759

Cash flows used for investing activities:

Capital expenditures

(10,054)

(7,945)

Investment in kununu US, LLC

(3,000)

Dividends received from equity investee and other

976

Capitalized patent defense costs

(2,263)

Cash received from partial sale of equity investment

9,128

Net cash used for investing activities

(13,054)

(104)

Cash flows used for financing activities:

Proceeds from borrowings on credit facilities

31,600

Payments on borrowings on credit facilities

(31,600)

Payments on borrowings on term loan

(2,569)

(2,250)

Payments on convertible notes

(9,475)

Proceeds from partial unwind of capped call, financings fees, and other

122

(997)

Repurchase of common stock

(3,039)

Tax withholdings related to net share settlements of restricted stock awards and units

(317)

(5,494)

Net cash used for financing activities

(15,278)

(8,741)

Effects of exchange rates on cash

775

(1,981)

Net (decrease) increase in cash and cash equivalents

$             (36,199)

$              15,933

Cash and cash equivalents from continuing operations, beginning of period

167,915

72,030

Cash and cash equivalents from discontinued operations, beginning of period

22,267

Cash and cash equivalents, beginning of period

$            167,915

$              94,297

Cash and cash equivalents from continuing operations, end of period

131,716

84,537

Cash and cash equivalents from discontinued operations, end of period

25,693

Cash and cash equivalents, end of period 

$            131,716

$            110,230

Free cash flow:

Net cash (used for) provided by operating activities

$               (8,642)

$              26,759

Less: Capital expenditures

(10,054)

(7,945)

Free cash flow

$             (18,696)

$              18,814

 

 

MONSTER WORLDWIDE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

Assets:

March 31, 2016

December 31, 2015

Cash and cash equivalents

$                  131,716

$                  167,915

Accounts receivable, net

244,110

260,518

Property and equipment, net

109,464

110,143

Goodwill and intangibles, net

524,386

524,373

Investment in unconsolidated affiliates

25,039

21,566

Other assets

73,031

70,417

Total Assets

$               1,107,746

$               1,154,932

Liabilities and Stockholders’ Equity:

Accounts payable, accrued expenses and other current liabilities

$                  108,576

$                  137,069

Deferred revenue

270,925

279,815

Current portion of long-term debt, net

10,287

9,773

Long-term income taxes payable

37,025

36,348

Long-term debt, net, less current portion

174,156

184,499

Other long-term liabilities

25,304

26,022

Total Liabilities

$                  626,273

$                  673,526

Stockholders’ Equity

481,473

481,406

Total Liabilities and Stockholders’ Equity

$               1,107,746

$               1,154,932

 

 

MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS

(in thousands, except per share amounts)

Three Months Ended March 31, 2016

Three Months Ended March 31, 2015

As Reported

Non GAAP
Adjustments

Consolidated 
Non GAAP

As Reported

Non GAAP
Adjustments

Consolidated 
Non GAAP

Revenue

$     157,787

$                –

$     157,787

$     172,882

$                –

$     172,882

Salaries and related

78,149

(1,496)

 a 

76,653

89,350

(4,405)

 a 

84,945

Office and general

41,781

(1,558)

 c 

40,223

44,794

44,794

Marketing and promotion

29,482

29,482

30,631

30,631

Restructuring and other special charges

20,092

(20,092)

 b 

   Total operating expenses

149,412

(3,054)

146,358

184,867

(24,497)

160,370

Operating income (loss)

8,375

3,054

11,429

(11,985)

24,497

12,512

Operating margin

5.3%

7.2%

-6.9%

7.2%

Gain on partial sale of equity method investment

8,849

(8,849)

Interest and other, net

(3,477)

1,245

 d 

(2,232)

(3,206)

1,284

 d 

(1,922)

Income (loss) before income taxes and income (loss) in equity interests, net

4,898

4,299

9,197

(6,342)

16,932

10,590

Provision for (benefit from) income taxes

3,307

(88)

 e 

3,219

(13,945)

17,652

 e 

3,707

Income (loss) in equity interests, net

250

250

(220)

(220)

Income from continuing operations

1,841

4,387

6,228

7,383

(720)

6,663

Income from discontinued operations, net of tax

1,806

(1,806)

 f 

Net income 

1,841

4,387

6,228

9,189

(2,526)

6,663

Net income attributable to noncontrolling interest

(1,019)

1,019

Net income attributable to Monster Worldwide, Inc.

$         1,841

$         4,387

$         6,228

$         8,170

$        (1,507)

$         6,663

Diluted earnings per share attributable to Monster Worldwide, Inc.:

Income from continuing operations

$           0.02

$           0.05

$           0.07

$           0.08

$          (0.01)

$           0.07

Income from discontinued operations, net of tax

0.01

(0.01)

Diluted earnings per share attributable to Monster Worldwide, Inc.:

$           0.02

$           0.05

$           0.07

$           0.09

$          (0.02)

$           0.07

Weighted average shares outstanding:

 Diluted 

89,786

89,786

91,474

(752)

 g 

90,722

Note Regarding Non GAAP Adjustments:

The financial information included herein contains certain Non-GAAP financial measures.  This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of Non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges. 

Non GAAP adjustments consist of the following:

a

Costs related to stock based compensation. Additionally, the Company incurred $0.4 million of separation charges in Q1 2016 primarily relating to the reorganization of the sales force in North America. 

b

Restructuring related charges pertaining to the “Reallocate to Accelerate” program announced in February 2015.

c

Charges incurred for management advisory fees during Q1 2016.

d

Non-GAAP interest expense related to the debt discount and amortization of the deferred financing costs related to the Company’s convertible notes due 2019.

e

The Non-GAAP income tax provision is calculated using a fixed long-term projected Non-GAAP tax rate of 35% as applied to Non-GAAP pre-tax income. 

f

Non-GAAP adjustment relates to the sale of our remaining interest in our former subsidiary in South Korea in October 2015, and primarily includes the operations of our former subsidiary.

g

Non-GAAP adjustment includes the impact, based on the average share price for the period, of the Company’s outstanding capped call transactions, which are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of the Company’s convertible notes due 2019.

 

 

 

MONSTER WORLDWIDE, INC.

UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION

(in thousands)

Three Months Ended March 31, 2016

Careers – 
North America

Careers – 
International

Corporate
Expenses

Total

Revenue 

$       109,194

$          48,593

$       157,787

Operating income (loss) – GAAP

$         19,266

$          (4,320)

$          (6,571)

$           8,375

Non GAAP Adjustments

592

225

2,237

3,054

Operating income (loss) – Non GAAP

$         19,858

$          (4,095)

$          (4,334)

$         11,429

Cash EBITDA

$         26,424

$          (1,303)

$          (5,642)

$         19,479

Non GAAP Adjustments

417

1,558

1,975

Adjusted EBITDA 

$         26,841

$          (1,303)

$          (4,084)

$         21,454

Operating margin – GAAP

17.6%

(8.9%)

5.3%

Operating margin – Non GAAP

18.2%

(8.4%)

7.2%

Cash EBITDA margin 

24.2%

(2.7%)

12.3%

Adjusted EBITDA margin 

24.6%

(2.7%)

13.6%

Three Months Ended March 31, 2015

Careers – 
North America

Careers – 
International

Corporate
Expenses

Total

Revenue 

$       122,392

$          50,490

$       172,882

Operating income (loss) – GAAP

$         13,338

$        (15,425)

$          (9,898)

$       (11,985)

Non GAAP Adjustments

12,508

9,608

2,381

24,497

Operating income (loss) – Non GAAP

$         25,846

$          (5,817)

$          (7,517)

$         12,512

Cash EBITDA

$         26,546

$        (10,726)

$          (7,684)

$           8,136

Non GAAP Adjustments

6,831

8,448

587

15,866

Adjusted EBITDA 

$         33,377

$          (2,278)

$          (7,097)

$         24,002

Operating margin – GAAP

10.9%

(30.6%)

(6.9%)

Operating margin – Non GAAP

21.1%

(11.5%)

7.2%

Cash EBITDA margin 

21.7%

(21.2%)

4.7%

Adjusted EBITDA margin 

27.3%

(4.5%)

13.9%

 

Logo – http://photos.prnewswire.com/prnh/20150113/168978LOGO

 

 

Source: Monster Worldwide, Inc.

Related stocks: NYSE:MWW

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Written by asiafreshnews

May 9, 2016 at 11:45 am

Posted in Uncategorized

Manulife reports 1Q16 core earnings of $905 million and net income of $1,045 million, strong top line growth, and continued positive net flows in its wealth and asset management businesses

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C$ unless otherwise stated
TSX/NYSE/PSE: MFC

SEHK: 945

This quarterly earnings news release should be read in conjunction with the Company’s unaudited First Quarter 2016 Report to Shareholders for the three months ended March 31, 2016, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), which is available on our website at http://www.manulife.com.

Additional information relating to the Company is available on the SEDAR website at http://www.sedar.com and on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov (EDGAR filers section).

Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS, unless otherwise indicated.  We use a number of non-GAAP measures to measure overall performance and to assess our businesses. For more information on non-GAAP financial measures, see “Performance and Non-GAAP Measures” below and in our First Quarter 2016 Report to Shareholders and 2015 Management’s Discussion and Analysis.

TORONTO /PRNewswire/ — Manulife Financial Corporation (“MFC”) today announced net income attributed to shareholders of $1,045 million for the first quarter of 2016 (“1Q16”), fully diluted earnings per common share of $0.51 and return on common shareholders’ equity (“ROE”) of 10.8%, compared with $723 million, $0.36, and 8.4%, respectively, for the first quarter of 2015 (“1Q15”). The increase in net income attributed to shareholders was primarily due to gains from interest rate movements and higher core earnings, partially offset by lower than expected returns on alternative long-duration assets. In 1Q16, MFC generated core earnings of $905 million, diluted core earnings per common share of $0.44 and core return on common shareholders’ equity (“Core ROE”) of 9.3%, compared with $797 million, $0.39, and 9.3%, respectively, for 1Q15.

Donald Guloien, President and Chief Executive Officer, stated, “This was a strong quarter, by almost any measure.  Core earnings grew by 14% from the prior year – despite zero contribution from investment gains during the quarter – a testimony to the strong operating performance from our operations around the world. We are also delivering excellent results from our DBS, Standard Life and New York Life transactions; managing our equity exposure exceedingly well, even in highly volatile markets; and achieved our 25th consecutive quarter of positive net flows into our global Wealth and Asset Management businesses.”

“Net income was up 45%, as a result of a variety of market-related gains, which more than offset depressed oil and gas prices in the quarter, serving as a useful reminder that markets will fluctuate both in our favour and against us, but we should focus on long-term positioning and shareholder wealth creation rather than short-term market fluctuations,” added Mr. Guloien.

Steve Roder, Chief Financial Officer, said, “We achieved a 70% increase in new business value, which speaks to the quality of sales we generated this quarter. This bodes well for our future profitability, as new business value represents the expected present value of future earnings from this quarter’s sales. Today, we published our 2015 Embedded Value Report highlighting a 21% increase in the value of our insurance-related businesses to $47.8 billion.”

“We successfully completed a US$1.75 billion bond offering in the United States and finished the quarter with strong capital levels. This was Manulife’s first bond issuance outside the Canadian market in 5 years, and was an important step in our path to diversify our funding sources,” added Mr. Roder.

HOW OUR COMPANY PERFORMED 

Profitability:

Reported net income attributed to shareholders of $1,045 million, up $322 million from 1Q15.
In 1Q16, net income attributed to shareholders is comprised of core earnings of $905 million and a net gain for items excluded from core earnings of $140 million. The items excluded from core earnings include a $474 million gain from market-related impacts primarily driven by interest rate movements and realized gains on the sale of available-for-sale bonds, largely offset by investment-related experience charges of $340 million primarily related to lower than expected returns on alternative long-duration assets.

Delivered core earnings of $905 million, up $108 million or 14% from 1Q15.
Core earnings increased $108 million, or 14%, compared with 1Q15. This increase reflects strong growth in new business volumes, particularly in Asia, and $75 million related to changes in foreign currency rates, partially offset by higher macro hedging costs. Core earnings in 1Q16 include net policyholder experience charges of $36 millionpost-tax ($68 million pre-tax), due to adverse policyholder experience in the U.S., partially offset by favourable policyholder experience in Asia.  No investment-related experience gains were included in core earnings in 1Q16 or 1Q15.

Growth:

Achieved insurance sales of $954 million, an increase of 14% compared with 1Q15.
Record Asia insurance sales increased 36% driven by double digit growth in most territories, including Singaporeand Hong Kong which benefited from the activation of the bancassurance partnership with DBS. Canadian insurance sales declined 28% as normal variability in large-case group benefits sales more than offset strong retail insurance sales. U.S. insurance sales increased 4%.

Generated net flows of $1.7 billion in our wealth and asset management (“WAM”) businesses compared with$6.6 billion in 1Q15 and gross flows of $28.2 billion increased 15% compared with 1Q15.
This marks the 25th consecutive quarter of positive net flows in our WAM businesses, which is a significant achievement given the continued volatility in global markets. In the U.S., gross flows increased 31%, driven by another strong sales quarter in mutual funds and robust mid-market sales in the pension business acquired in April 2015. In Asia and Canada gross flows modestly declined due to challenging market conditions, and in our institutional asset management business gross flows were in line with the prior year. Net flows declined as redemptions increased in all divisions compared with the prior year.

Delivered Other Wealth sales of $2.4 billion in 1Q16, an increase of 29% compared with 1Q15.
Other Wealth sales in Asia increased 76% driven by the success of new product launches coupled with expanding distribution reach in Japan and through DBS in Singapore. In Canada, other wealth sales were down 9% driven by challenging market conditions.

Generated new business value of $287 million in 1Q16, up 70% from 1Q15.
The increase in new business value was driven by strong performance in Asia and improved product margins in U.S. life insurance.  In Asia, new business value increased 68% on a constant currency basis to $221 million, primarily reflecting strong growth in new business volume and improved product margins in Japan and Asia Other. New business value margins in Asia increased to 28.8%, up 3.4 percentage points from the prior year period. This was most notable in Japan where higher volumes, product margins and business mix led to margin expansion of over 10 percentage points to 26.5%. These gains were partly offset by margin compression in Hong Kong due to a change in business mix.

Reported embedded value of $47.8 billion as at December 31, 2015, up $8.4 billion or 21% from the prior year.
Just under half of the growth in embedded value relates to contributions from inforce and new business.  Currency accounted for the majority of the remaining increase. The impact of acquisitions during the year was largely offset by the common share issuance related to the acquisition of the Canadian-based operations of Standard Life plc. The full 2015 Embedded Value Report is available on our website at http://www.manulife.com.

Reported core EBITDA from our WAM businesses of $285 million, down 4% from 1Q15.
The favourable impact of foreign currency rates and higher fee income was offset by increased distribution costs driven by higher gross flows and strategic investments in the business. WAM assets under management and administration were $488 billion, an increase of 22% from March 31, 2015 reflecting positive net flows and a recent sizeable acquisition.

Achieved total assets under management and administration (“AUMA)”) of $904 billion as at March 31, 2016.
AUMA increased 8% compared to March 31, 2015, largely due to the acquisition of the U.S. pension business in 2015.  AUMA decreased $31 billion compared with December 31, 2015 primarily due to the strengthening of the Canadian dollar compared with the U.S. dollar. On a constant currency basis, AUMA was in-line with the prior quarter.

Financial Strength:

Reported a Minimum Continuing Capital and Surplus Requirements (“MCCSR”) ratio of 233% for The Manufacturers Life Insurance Company (“MLI”) as at March 31, 2016. 

The 10 point increase from 223% as at December 31, 2015 is primarily related to 14 points from the US$1.75 billionsenior debt and C$425 million preferred shares issued by MFC in 1Q16 and invested in MLI, partially offset by 3 points related to the initial payment under the DBS transaction. MFC’s reported MCCSR ratio was 210% as atMarch 31, 2016. The primary difference between the MLI and MFC ratios is that the $4.0 billion of MFC senior debt outstanding does not qualify as available capital for MFC.

Reported a financial leverage ratio of 27.9% at March 31, 2016.
Our financial leverage increased 4.1 percentage points from 4Q15 reflecting the issuance of US$1.75 billion senior debt and C$425 million preferred shares, and the impact of the weakening U.S. dollar compared with the Canadian dollar.

HOW OUR BUSINESSES PERFORMED

Asia Division

Business highlights:
In Asia, we delivered record annualized premium equivalent sales1 (“APE sales”) and new business value (“NBV”), up 48% and 68%, respectively, from the prior year period. This strong growth reflects continued expansion of distribution channels and a focus on product offerings that fulfill customer needs. WAM gross flows remained strong in the quarter despite challenging market conditions. During the quarter, we successfully launched our exclusive bancassurance partnership with DBS in Singapore, Hong Kong, Indonesia and mainland China. In addition, the ManulifeMOVE wellness program was expanded by adding new reward partners in Hong Kong and launching it in the Philippines.

Earnings2:

Core earnings increased US$45 million to US$270 million compared with 1Q15, or 19% after adjusting for the impact of changes in currency rates. The increase was driven by continued strong growth in new business volumes, improvement in product margins and favourable policyholder experience. Included within this growth were non-recurring gains of US$16 million related to two separate reinsurance treaties.

Net income attributed to shareholders was US$88 million in 1Q16 compared with US$227 million in 1Q15. In 1Q16, net income attributed to shareholders included a net charge for items excluded from core earnings of US$182 millionfor 1Q16 compared with a net gain of US$2 million in 1Q15. The 1Q16 net charge for items excluded from core earnings related to the direct impact of equity markets and interest rates.

______________________

1 

APE sales is a non-GAAP measure. See “Performance and Non-GAAP Measures” below. APE sales are presented to provide consistency of scope for NBV disclosures and industry practice. APE sales are presented before adjustments for non-controlling interests. APE sales consist of Insurance sales plus weighted Other Wealth sales, and exclude our Wealth and Asset Management businesses.

2 

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016. Amounts are expressed in U.S. dollars, the presentation currency of the division.

Sales:
Annualized premium equivalents sales in 1Q16 were US$590 million, 48% higher than 1Q15. We achieved double digit growth in most territories and record APE sales in Japan and Asia Other. Contributing to this increase were insurance sales of US$460 million and other wealth APE sales of US$130 million, up 36% and 117% from 1Q15, respectively.

  • Japan APE sales in 1Q16 were US$264 million, a 24% increase driven by strong sales of our other wealth products through both bank and MGA channels.
  • Hong Kong APE sales in 1Q16 were US$109 million, a 48% increase reflecting robust insurance sales through our agent, bank and insurance broker channels.
  • Asia Other (excludes Japan and Hong Kong) APE sales in 1Q16 were US$217 million, representing a 94% increase, driven by record sales in Singapore and mainland China. In Singapore, APE sales were over 5 times 1Q15 levels following the successful launch of our exclusive regional partnership with DBS. Indonesiaexperienced modest growth.

Wealth and Asset Management (“WAM”) gross flows of US$2.5 billion in 1Q16 were 5% lower than 1Q15. We reported net flows in 1Q16 of US$0.2 billion, down from US$0.9 billion in 1Q15 due to market volatility.

  • Japan gross flows in 1Q16 of US$21 million decreased 88% as equity market volatility impacted consumer confidence, resulting in weaker mutual fund sales.
  • Hong Kong gross flows in 1Q16 of US$562 million decreased 2%, driven by lower mutual fund sales.
  • Asia Other gross flows of US$1.9 billion increased 1%. Strong sales in mainland China and Singapore were largely offset by lower mutual fund sales in Taiwan. Indonesia’s WAM gross flows were comparable with 1Q15.

New Business Value:
New business value (“NBV”) in 1Q16 was US$161 million, a 68% increase compared with 1Q15 reflecting the above noted increase in APE sales and a 3.4 percentage point increase in NBV margin.

  • Japan NBV in 1Q16 of US$70 million more than doubled as a result of increased sales, improved product margin and favourable product mix.
  • Hong Kong NBV in 1Q16 of US$49 million increased 4% as higher APE sales were offset by the impact of a change in business mix.
  • Asia Other NBV of US$42 million increased 189% as a result of increased sales and management actions to improve margins.

Canadian Division

Business highlights:
In Canada, we generated solid growth in individual insurance sales driven by continued momentum due to product enhancements.  We delivered robust mutual fund gross flows despite challenging market conditions and achieved our 26th consecutive quarter of Wealth and Asset Management net inflows into our pension business. During the quarter, we also announced an agreement with The Vitality Group to introduce life insurance that rewards customers for healthy living.

Earnings1:
Core earnings was $338 million in 1Q16 compared with $261 million in 1Q15.  The $77 million increase in core earnings reflects improved policyholder experience, increased wealth and asset management fee income, and the impact of one additional month of results from business acquired in 2015.

Net income attributed to shareholders was $600 million compared with $118 million in 1Q15. In 1Q16, net income attributed to shareholders included a net gain for items excluded from core earnings of $262 million compared with a net charge of $143 million in 1Q15.  The change in items excluded from core earnings primarily related to the direct impact of interest rates.

_______________________

1 

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016.

Sales:
WAM gross flows in 1Q16 were $4.2 billion, a decrease of 5% compared with 1Q15 reflecting the impact of volatile market conditions on Mutual Fund deposits. We reported net flows in 1Q16 of $0.8 billion, down from $1.8 billion in 1Q15 due to market volatility. Assets under management for our WAM businesses at March 31, 2016 were $101 billion, an increase of 3% compared with March 31, 2015, driven by strong net flows over the past 12 months.

  • Mutual Fund gross flows of $2.4 billion in 1Q16 decreased $0.2 billion or 8% compared with 1Q15.
  • Group Retirement Solutions gross flows of $1.9 billion in 1Q16 were in line with 1Q15.
  • Other Wealth sales of $944 million in 1Q16 were $93 million or 9% lower than 1Q15 driven by unfavourable equity market sentiment.
  • Segregated Fund Product1 1Q16 sales were $751 million, a decrease of 12% compared with 1Q15.
  • Fixed Product 1Q16 sales were $193 million, an increase of 4% compared with 1Q15, reflecting the success of product enhancements.

Manulife Bank net lending assets of $19.5 billion as at March 31, 2016, were up slightly from 4Q15 as due to the impact of our strategic initiatives.

Insurance sales in 1Q16 of $155 million decreased 28% compared with 1Q15 driven by the timing of large-case activity in Group Benefits.

  • Retail Insurance sales in 1Q16 of $41 million increased by 10% compared with 1Q15 driven by continued momentum from universal life product enhancements and large-case activity.
  • Institutional Markets sales in 1Q16 of $114 million decreased 36% compared with 1Q15 primarily due to normal variability in Group Benefits’ large-case sales.

U.S. Division

Business highlights:
In the U.S., we delivered strong mutual fund gross flows driven by institutional allocations and continued success across retail channels.  We also achieved solid gross flows in our Retirement Plan Services business with contributions from both our small- and mid-market segments. Five new exchange traded funds (“ETFs”) were launched in the quarter, bringing our total offering to 11 and we were named best new ETF manager by ETF.com.

Earnings2:
Core earnings was US$283 million compared with US$302 million in 1Q15. The US$19 million decrease in core earnings was primarily driven by unfavourable policyholder experience in JH Long Term Care.

Net income attributed to shareholders was US$176 million compared with US$375 million in 1Q15.  In 1Q16, net income attributed to shareholders included a net charge for items excluded from core earnings of US$107 millioncompared with a net gain of US$73 million in 1Q15.  The 1Q16 charge primarily related to returns on alternative long-duration assets being lower than the returns assumed in the valuation of our insurance contract liabilities.

Sales:
WAM gross flows in 1Q16 were US$12.7 billion, an increase of 31% compared with 1Q15, driven by continued strong mutual fund sales in John Hancock (“JH”) Investments and the contribution from robust mid-market pension sales in the business acquired by JH Retirement Plan Services’ (“JH RPS”) last year. JH Investments enjoyed positive net flows and continued to deliver double digit organic growth in an industry which has continued to experience net outflows.3 JH RPS recorded negative net flows primarily due to one large termination associated with the acquired mid-market business.

  • JH Investments 1Q16 gross flows of US$7.1 billion increased 15% compared with 1Q15 despite significant market volatility. The increase was driven by institutional allocations and continued success across retail channels. Assets under management increased 7% from March 31, 2015 to a record US$84 billion as at March 31, 2016 and for the 18th consecutive quarter JH Investments had positive net flows. Our 12-month trailing organic growth rate through March 2016 (calculated as net new flows as a percentage of beginning assets) was 12% compared with an industry decline of 2%.3 During the quarter we expanded our ETF line up to 11 funds.
  • JH RPS 1Q16 gross flows of US$5.6 billion were up 57% compared with 1Q15. This was driven primarily by the mid-market acquisition in 2015 and an increase in recurring contributions.

_______________________

1 

Segregated fund products include guarantees. These products are also referred to as variable annuities.

2  

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016. Amounts are expressed in U.S. dollars, the functional currency of the division.

3  

Source: Strategic Insight: ICI Confidential. Direct Sold mutual funds, fund-of-funds and ETF’s are excluded. Organic sales growth rate is calculated as net new flows divided by beginning period assets. Industry data through March 2016.

Insurance sales in 1Q16 of US$122 million represented an increase of 4% compared with 1Q15, driven by the Federal Long Term Care (“LTC”) program. Our Vitality program continued to gain momentum as we extended the feature to older issue ages in March and prepared for the HealthyFood program launch in April.

  • JH Life sales of US$105 million in 1Q16 were in line with the prior year but gained momentum throughout the quarter, increasing sequentially in each month of the quarter. Term sales continued to gain momentum achieving a 68% increase compared to the prior year. The increase in Term sales was offset by lower Survivorship universal life sales.
  • JH Long-Term Care 1Q16 sales of US$17 million were US$6 million higher than 1Q15 and benefited from an additional US$7 million of biennial inflation purchases in the Federal LTC program. Our new innovative Performance LTC product accounted for two-thirds of total retail sales during the quarter.

Corporate and Other

Corporate and Other is composed of: investment performance on assets backing capital, net of amounts allocated to operating divisions and financing costs; Investment Division’s external asset management business; Property and Casualty (“P&C”) Reinsurance business; as well as run-off reinsurance operations including variable annuities and accident and health.

Corporate and Other reported net income attributed to shareholders of $83 million in 1Q16 compared with a net loss of $141 million in 1Q151. The net income (loss) attributed to shareholder was comprised of core loss and items excluded from core loss. The core loss of $193 million in 1Q16 compared with a core loss of $117 million in 1Q15; items excluded from core loss were a net gain of $276 million in 1Q16 compared with a net charge of $24 million in 1Q15.

The $76 million increase in core loss was largely due to higher macro hedging costs from increased hedging activity, higher expenses related to strategic initiatives and the impact of the strengthening U.S. dollar on interest allocated to the U.S. and Asia divisions when expressed in Canadian dollars.

Of the $300 million favourable variance in items excluded from core loss, $232 million related to realized gains on the sale of available-for-sale (“AFS”) bonds in 1Q16 compared with 1Q15.

________________________

1 

The 2015 earnings on assets backing capital allocated to each operating segment has been restated to align with the methodology used in 2016.

CORPORATE ITEMS

In a separate news release today, the Company announced that the Board of Directors approved a quarterly shareholders’ dividend of 18.5 cents per share on the common shares of MFC, payable on and after June 20, 2016to shareholders of record at the close of business on May 17, 2016.

The Board of Directors also approved that, in respect of MFC’s June 20, 2016 common share dividend payment date, and pursuant to MFC’s Canadian Dividend Reinvestment and Share Purchase Plan and its U.S. Dividend Reinvestment and Share Purchase Plan, the required common shares be purchased on the open market. The purchase price of such shares will be based on the average of the actual cost to purchase such common shares. There are no applicable discounts because the common shares are being purchased on the open market and are not being issued from treasury.

Awards & Recognition

In Canada, Manulife Investments won 25 Fundata FundGrade A+ Awards. The Fundata FundGrade A+ Awards are presented annually to Canadian investment funds that achieve consistently high FundGrade scores through an entire calendar year.

In Hong Kong, Manulife received four awards for its Mandatory Provident Fund (MPF) scheme and outstanding fund performance.  One award from Morningstar Awards 2016 Hong Kong for “Best MPF Scheme Award – Finalist”. Three awards from Lipper Fund Awards 2016 Hong Kong: Manulife MPF Japan Equity Fund won for “Best Hong Kong Pension Funds over 3 Years, Equity Japan” and “Best Hong Kong Pension Funds over 5 Years, Equity Japan”; and Manulife MPF Pacific Asia Bond Fund won for “Best Hong Kong Pension Funds over 3 Years, Bond Asia Pacific – Local Currency”.

In Indonesia, Manulife was honoured with Market Conduct Award as PT Asuransi Jiwa Manulife Indonesia and Manulife Indonesia’s Financial Institution Pension Fund won the Market Conduct Award 2015 from the Financial Services Authority. The award recognized Manulife for carrying out principles of consumer protection in financial services with timely result reporting.

In the U.S., John Hancock Investments was named Best New Exchange Traded Fund (“ETF”) Issuer for 2015 at the third annual ETF.com Awards Gala. The award honours the new ETF issuer that has done the most to improve investor outcomes through product introductions, product performance, fund management, investor support and innovation.

Best Employer Award: Manulife and John Hancock were recognized by Forbes as One of Canada’s Best Employers and One of America’s Best Employers, respectively. Forbes’ 2016 list ranked Manulife 29th out of 250 in the Canadian survey while John Hancock 172nd out of 500 in the American survey. Employees were asked to rate their company satisfaction, including how likely they were to recommend their employer to someone else and how they felt about other employers in their industry.

Notes:

Manulife Financial Corporation will host a First Quarter Earnings Results Conference Call at 2:00 p.m. ET on May 5, 2016. For local and international locations, please call 416-340-8530 and toll free in North America please call 1-800-769-8320. Please call in ten minutes before the call starts. You will be required to provide your name and organization to the operator. A replay of this call will be available by 6:00 p.m. ET on May 5, 2016 through May 19, 2016 by calling 905-694-9451 or 1-800-408-3053 (passcode: 1731671).

The conference call will also be webcast through Manulife’s website at 2:00 p.m. ET on May 5, 2016. You may access the webcast at: www.manulife.com/quarterlyreports. An archived version of the webcast will be available at 6:00 p.m. ET on the website at the same URL as above.

The First Quarter 2016 Statistical Information Package is also available on the Manulife website at:www.manulife.com/quarterlyreports.  

Financial Highlights

Quarterly Results

(C$ millions, unless otherwise stated, unaudited)

1Q16

4Q15

1Q15

Net income attributed to shareholders

$

1,045

$

246

$

723

Preferred share dividends

(29)

(29)

(29)

Common shareholders’ net income

$

1,016

$

217

$

694

Core earnings

$

905

$

859

$

797

Basic earnings per common share (C$)

$

0.51

$

0.11

$

0.36

Diluted earnings per common share (C$)

$

0.51

$

0.11

$

0.36

Diluted core earnings per common share (C$)

$

0.44

$

0.42

$

0.39

Return on common shareholders’ equity (“ROE”)

10.8%

2.3%

8.4%

Core ROE

9.3%

8.7%

9.3%

Sales

Insurance products

$

954

$

1,027

$

779

Wealth and Asset Management gross flows

$

28,228

$

31,089

$

22,843

Wealth and Asset Management net flows

$

1,676

$

8,748

$

6,631

Other Wealth products

$

2,384

$

2,109

$

1,767

Premiums and deposits

Insurance products

$

8,186

$

7,759

$

7,158

Wealth and Asset Management products

$

28,228

$

31,089

$

22,843

Other Wealth products

$

1,441

$

1,963

$

1,466

Corporate and Other

$

22

$

26

$

19

Assets under management and administration
(C$ billions)

$

904

$

935

$

821

Capital (C$ billions)

$

49.4

$

49.9

$

46.4

MLI’s MCCSR ratio

233%

223%

245%

Performance and Non-GAAP Measures

We use a number of non-GAAP financial measures to measure overall performance and to assess each of our businesses. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles used for the Company’s audited financial statements. Non-GAAP measures referenced in this presentation include: Core Earnings (Loss); Core ROE, Diluted Core Earnings Per Common Share; Constant Currency Basis; Premiums and Deposits; Assets under Management; Assets under Management and Administration; Capital; Embedded Value; New Business Value; New Business Value Margin; Sales; APE Sales; Gross Flows and Net Flows. Non-GAAP financial measures are not defined terms under GAAP and, therefore, are unlikely to be comparable to similar terms used by other issuers. Therefore, they should not be considered in isolation or as a substitute for any other financial information prepared in accordance with GAAP. For more information on non-GAAP financial measures, including those referred to above, see “Performance and Non-GAAP Measures” in our 1Q16 and 2015 Management’s Discussion and Analysis.

The following tables reconcile reported net income (loss) attributed to shareholders to core earnings (loss).

Total Company

Quarterly Results

(C$ millions, unaudited)

1Q16

4Q15

1Q15

Total core earnings

$

905

$

859

$

797

Investment-related experience outside of core earnings

(340)

(361)

(77)

Core earnings plus investment-related experience

    outside of core earnings

565

498

720

Other items to reconcile core earnings to net income

    attributed to shareholders:

Direct impact of equity markets and interest rates and

variable annuity guarantee liabilities (details below)

474

(29)

13

Recapture of reinsurance treaties

(52)

12

Change in actuarial methods and assumptions

12

(97)

(22)

Integration and acquisition costs

(14)

(39)

(30)

Tax-related items

1

2

30

Other items

7

(37)

Net income attributed to shareholders

$

1,045

$

246

$

723

Other market-related factors

Direct impact of equity markets and variable annuity

    guarantee liabilities

$

(150)

$

77

$

15

Gains (charges) on higher (lower) fixed income reinvestment

    rates assumed in the valuation of policy liabilities

407

(97)

13

Gains (charges) on sale of AFS bonds and derivative

    positions in the Corporate segment

217

(9)

(15)

Direct impact of equity markets and interest rates and

    variable annuity guarantee liabilities

$

474

$

(29)

$

13

 

Asia Division

Quarterly Results

(C$ millions, unaudited)

1Q16

4Q15

1Q15

Asia Division core earnings

$

371

$

334

$

279

Investment-related experience outside of core earnings

(20)

(3)

Core earnings plus investment-related experience outside of

    core earnings

351

331

279

Other items to reconcile core earnings to net income attributed to

    shareholders:

Direct impact of equity markets and interest rates and variable annuity

    guarantee liabilities

(238)

76

(17)

Tax-related items

10

2

20

Integration and acquisition costs

(2)

Net income attributed to shareholders(1)

$

121

$

409

$

282

(1)

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016.

Canadian Division

Quarterly Results

(C$ millions, unaudited)

1Q16

4Q15

1Q15

Canadian Division core earnings

$

338

$

352

$

261

Investment-related experience outside of core earnings

(78)

(180)

(81)

Core earnings plus investment-related experience outside of

    core earnings

260

172

180

Other items to reconcile core earnings to net income attributed to

    shareholders:

Direct impact of equity markets and interest rates and variable annuity

    guarantee liabilities

346

(201)

(65)

Recapture of reinsurance treaties

(52)

12

Integration and acquisition costs

(6)

(23)

(9)

Net income (loss) attributed to shareholders(1)

$

600

$

(104)

$

118

(1)

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016.

U.S. Division

Quarterly Results

(C$ millions, unaudited)

1Q16

4Q15

1Q15

U.S. Division core earnings

$

389

$

332

$

374

Investment-related experience outside of core earnings

(233)

(146)

(9)

Core earnings plus investment-related experience outside of

    core earnings

156

186

365

Other items to reconcile core earnings to net income (loss) attributed to

    shareholders:

Direct impact of equity markets and interest rates and variable annuity

    guarantee liabilities

82

142

99

Integration and acquisition costs

(4)

(5)

Other items

7

Net income attributed to shareholders(1)

$

241

$

323

$

464

(1)

The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016.

Corporate and Other

Quarterly Results

(C$ millions, unaudited)

1Q16

4Q15

1Q15

Corporate and Other core loss

    (excluding expected cost of macro hedges and core investment gains)

$

(107)

$

(85)

$

(73)

Expected cost of macro hedges

(86)

(74)

(44)

Investment-related experience included in core earnings

Total core loss

(193)

(159)

(117)

Investment-related experience outside of core earnings

(9)

(32)

13

Core loss plus investment-related experience outside of core earnings

(202)

(191)

(104)

Other items to reconcile core loss to net income (loss) attributed to

    shareholders:

Direct impact of equity markets and interest rates and variable annuity

    guarantee liabilities

284

(46)

(4)

Changes in actuarial methods and assumptions

12

(97)

(22)

Integration and acquisition costs

(2)

(11)

(21)

Tax-related items

(9)

10

Other items

(37)

Net income (loss) attributed to shareholders(1)

$

83

$

(382)

$

(141)

(1) 

The Corporate and Other segment includes earnings on assets backing capital net of amounts allocated to operating divisions. The 2015 earnings on assets backing capital allocated to each operating segment have been restated to align with the methodology used in 2016.

Caution regarding forward-looking statements

From time to time, MFC makes written and/or oral forward-looking statements, including in this document. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the “safe harbour” provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995.

The forward-looking statements in this document also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “suspect”, “outlook”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “forecast”, “objective”, “seek”, “aim”, “continue”, “goal”, “restore”, “embark” and “endeavour” (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements and they should not be interpreted as confirming market or analysts’ expectations in any way.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.

Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate; changes in regulatory capital requirements; our ability to execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax assets; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels, including through our collaboration arrangements with Standard Life plc, bancassurance partnership with DBS Bank Ltd and distribution agreement with Standard Chartered; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses, including with respect to the acquisitions of Standard Life, New York Life’s Retirement Plan Services business and Standard Chartered’s MPF and Occupational and Retirement Schemes Ordinance (“ORSO”) businesses; the realization of losses arising from the sale of investments classified as available-for-sale; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates when required; obligations to pledge additional collateral; the availability of letters of credit to provide capital management flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used; political, legal, operational and other risks associated with our non-North American operations; acquisitions and our ability to complete acquisitions including the availability of equity and debt financing for this purpose; the failure to realize some or all of the expected benefits of the acquisitions of Standard Life, New York Life’s Retirement Plan Services business and Standard Chartered’s MPF and ORSO businesses; the disruption of or changes to key elements of the Company’s or public infrastructure systems; environmental concerns; our ability to protect our intellectual property and exposure to claims of infringement; and our inability to withdraw cash from subsidiaries.

Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under “Risk Factors” in our most recent Annual Information Form, under “Risk Management”, “Risk Factors” and “Critical Accounting and Actuarial Policies” in the Management’s Discussion and Analysis in our most recent annual report, in the “Risk Management” note to consolidated financial statements in our most recent annual and interim reports and elsewhere in our filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations, our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements, except as required by law.

Media Inquiries: Sean B. Pasternak, (416) 852-2745, sean_pasternak@manulife.com; Investor Relations: Robert Veloso, (416) 852-8982, robert_veloso@manulife.com

 

 

 

Source: Manulife Financial Corporation
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Written by asiafreshnews

May 9, 2016 at 11:38 am

Posted in Uncategorized

AMRI to Acquire Euticals in a Strategic Transaction That Expands its API Development and Manufacturing Business

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ALBANY, N.Y. /PRNewswire/ —

  • Enters definitive agreement to acquire Euticals for $358 million in stock, cash and a seller note
  • Positions AMRI as one of the largest independent developers and suppliers of API to the pharmaceutical industry
  • Significantly expands AMRI’s presence in the European community
  • Transaction expected to be accretive to AMRI’s 2016 non-GAAP diluted EPS
  • AMRI’s 2017 pro forma revenue expected to exceed $750 million, with 2017 adjusted EBITDA margins of 20%

AMRI (NASDAQ: AMRI) today announced that it has signed a definitive agreement to acquire all outstanding shares of Prime European Therapeuticals S.p.A., also known as “Euticals”, in a transaction valued at approximately$358 million (EUR 315 million), consisting of shares of AMRI common stock, cash, and a seller note.

Euticals is a privately-held company headquartered in Lodi, Italy, specializing in custom synthesis and the manufacture of active pharmaceutical ingredients (APIs). It operates a network of API facilities primarily in Italy,Germany, U.S. and France.

“The acquisition of Euticals will provide us an established custom synthesis presence in Europe and will further build on our expertise in complex APIs, positioning AMRI as a preeminent provider of contract research, development and manufacturing services to the pharmaceutical industry,” said William S. Marth, AMRI’s president and chief executive officer.

“Euticals’ expertise with niche and high barrier to entry technologies and products, including certain tetracyclines, monobactams, sterile and fermented APIs and controlled substances, will be a tremendous asset to us. Additionally, Euticals’ large base of over 400 customers will provide us with a number of new large pharma, biotech and generics partners, further extending our global reach and diversifying our revenue.

“Importantly, I am pleased that in connection with the closing of the transaction, Fernando Napolitano will be joining our Board of Directors on behalf of Lauro Cinquantesette, S.p.A (Lauro 57) and its majority investors, Clessidra Capital Partners II and Mandarin Capital Partner SCA SICAR. Clessidra’s and Mandarin’s combined expertise, deep contacts within the European pharmaceutical community and continued guidance will be invaluable to our efforts going forward. Margalit Fine, Euticals’ chief executive officer and former head of European API at Teva, will be leading Euticals’ operations as a senior executive for the combined company,” Mr. Marth said.

“On behalf of Lauro 57 and its investors, we couldn’t be more pleased to be joining AMRI,” said Clessidra Chief Executive Officer, Maurizio Bottinelli. “Its expertise in developing and manufacturing complex pharmaceutical products is well known and we look forward to joining forces to further expand our presence in the European community.”

Strategic Benefits of the Transaction

  • Significantly expands AMRI’s capabilities in custom and complex APIs
    • Provides AMRI with an established European custom synthesis presence
    • Expands expertise in multiple areas: sterile API, steroids, generics, fermentation, controlled substances and monobactams
    • Provides an API portfolio that includes 50 active US Drug Master Files (DMFs), 17 EU Certificates of Suitability (COS) or Compliance with the European Pharmacopeia (CEP), 13 Japanese DMFs and 6 South Korean DMFs; with several APIs having filings in more than one of these areas and over two dozen other international filings
  • Provides AMRI with global scale and a diverse customer and revenue base
    • Euticals brings over 400 customers with no customer concentration
    • With 75% of revenue outside North America, Euticals opens up many new markets for AMRI; more than half AMRI’s combined proforma revenue is expected to be ex U.S.
    • Euticals brings additional portfolio diversification in generics; AMRI to leverage U.S. base to include Euticals’ strong generic portfolio

Euticals operates a highly regarded API, custom synthesis and fine chemical development and manufacturing business with 2015 revenue and EBITDA of approximately $245 million and $27 million respectively. On a stand-alone basis, Euticals’ full year 2016 revenue is forecast to be between $245 million and $255 million, with adjusted EBITDA1 of between $34 million and $38 million, implying a purchase price multiple, prior to anticipated synergies, of approximately 9.9 times 2016 adjusted EBITDA at the midpoint of the range and excluding deal related costs or purchase accounting impacts. The transaction is expected to be accretive to AMRI’s 2016 non-GAAP diluted earnings per share. AMRI expects to generate operational synergies of $13 to $15 million over the next three years. On a pro forma basis including synergies, AMRI’s full year 2017 revenue is forecast to exceed $750 million, with adjusted EBITDA margins of approximately 20%.

Transaction Details, Financing and Closing
AMRI expects to finance the transaction through the issuance of approximately 7 million shares of AMRI common stock (currently valued at $110 million, equal to approximately 19.75% of AMRI common stock); a seller note of $63 million; and the remainder in cash. Including Euticals, AMRI believes that it will have the financial strength to manage its increased debt and plans to de-lever based on a combination of EBITDA growth and/or principal re-payments.

AMRI has entered into debt financing commitments with JP Morgan and Barclays for amounts that are expected to be sufficient to provide funds necessary to consummate the transaction. In addition to the financing, the closing of the transaction is subject to customary closing conditions, including Hart-Scott-Rodino clearance in the U.S.

The 7 million shares of AMRI common stock (the “Shares”) to be issued in connection with the transaction will be offered and sold outside the United States to Lauro 57, an eligible investor pursuant to Regulation S of the Securities Act of 1933, as amended (the “Securities Act”).

The Shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration under or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the Shares in any jurisdiction in which such offer or solicitation would be unlawful.

Nomura acted as exclusive financial advisor to AMRI in connection with this transaction and Goodwin Procter LLP and LCA Studio Legale acted as AMRI’s legal advisors. Lincoln International acted as sole financial advisor to Lauro 57, and Chiomenti Studio Legale and Debevoise & Plimpton LLP acted as Lauro 57’s legal advisors.

Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as EBITDA, which is adjusted to exclude, among other things, the impact of interest income and expense, depreciation and amortization expense, and income tax expense or benefit. We exclude these items from the non-GAAP financial measures because they are outside our normal operations. There are limitations in using non-GAAP financial measures, as they are not prepared in accordance with generally accepted accounting principles, and may be different than non-GAAP financial measures used by other companies. In particular, we believe that the inclusion of supplementary non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our core operating results and future prospects without the effect of these often-one-time charges, and is consistent with how management measures and forecasts the company’s performance, especially when comparing such results to prior periods or forecasts. Non-GAAP results also allow investors to compare the company’s operations against the financial results of other companies in the industry who similarly provide non-GAAP results. The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. It is not feasible to provide reconciliation to the most comparable projected U.S. GAAP measure because the excluded items are difficult to predict and estimate and are primarily dependent on future events.

Conference Call and Webcast
AMRI will hold a conference call at 8:30 a.m. ET today to discuss the transaction. The conference call can be accessed by dialing (866) 208-5728 (domestic calls) or (224) 633-1279 (international calls) at 8:20 a.m. ET and entering passcode 4868381. A live webcast with slides will also be available and can be accessed on the company’s website at www.amriglobal.com. Replays of the webcast can also be accessed for up to 90 days after the call via the investor area of the company’s website at http://ir.amriglobal.com.

About AMRI
Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization that has been working with the Life Sciences industry to improve patient outcomes and the quality of life for more than two decades. With locations in North America, Europe and Asia, our key business segments include Discovery and Development Services (DDS), Active Pharmaceutical Ingredients (API), and Drug Product Manufacturing (DPM). Our DDS segment provides comprehensive services from hit identification to IND, including expertise with diverse chemistry, library design and synthesis, in vitro biology and pharmacology, drug metabolism and pharmacokinetics, as well as natural products. API supports the chemical development and cGMP manufacture of complex API, including potent and cytotoxic compounds, controlled substances, steroids, hormones, and sterile API. DPM supports development through commercial scale production of complex liquid-filled and lyophilized parenterals, sterile suspensions and ophthalmic formulations. For more information about AMRI, please visit our website atwww.amriglobal.com or follow us on Twitter (@amriglobal).

About Euticals
Established in 1984, Euticals is a chemical company focused on Active Pharmaceutical Ingredients (APIs), Custom Synthesis and Fine Chemicals projects and products.

Today Euticals Group is one of the leading players in the Pharmaceutical & Fine Chemicals Industry with a global scale production and diversified manufacturing plants, offering multiple technology platforms.

Euticals’ mission is to be the partner of choice for pharmaceutical and related chemical industries, by supplying its API portfolio and providing custom manufacturing and custom synthesis with large industrial capacity and broad R&D developmental capabilities.

Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that involve risks and uncertainties. These statements include, but are not limited to, statements regarding the acquisition of Euticals, the projected revenue and non-GAAP EBITDA of Euticals, the potential synergies associated with the transaction, the potential impact on AMRI’s operations and financial results and its accretive nature, and statements made by AMRI’s chief executive officer and a principal investor of Euticals, the expected timing for the closing of the transaction and AMRI’s expectations for financing the transaction, including the type of such financing; expectations regarding Euticals employees joining AMRI following the closing of the transaction and the contributions and responsibilities of those employees to AMRI’s and Euticals’ continued operations, the appointment of Fernando Napolitano to the AMRI board of directors after closing, the sufficiency of committed debt financing and AMRI’s existing cash to finance the transaction, repay AMRI’s current credit facilities and pay fees and expenses related to the transaction. Readers should not place undue reliance on our forward-looking statements. AMRI’s actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which AMRI may not be able to predict and may not be within AMRI’s control. Factors that could cause such differences include, but are not limited to, the ability of AMRI to effectively integrate the Euticals businesses; possible negative impacts to the revenue expected to be received by the Euticals businesses; trends in pharmaceutical and biotechnology companies’ outsourcing of manufacturing services and chemical research and development, including softness in these markets; the success of the sales of other products for which AMRI receives royalties; the risk that clients may terminate or reduce demand under any strategic or multi-year deal; AMRI’s ability to enforce its intellectual property and technology rights; AMRI’s ability to obtain financing sufficient to meet its business needs; AMRI’s ability to successfully comply with heightened FDA scrutiny on aseptic fill/finish operations; the results of further FDA inspections; AMRI’s ability to effectively maintain compliance with applicable FDA and DEA regulations; AMRI’s ability to integrate past or future acquisitions,  and make such acquisitions accretive to AMRI’s business model, AMRI’s ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of AMRI’s strategic investments and acquisitions to perform as expected, as well as those risks discussed in AMRI’s Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission on March 30, 2016, and AMRI’s other SEC filings. Revenue, adjusted EBITDA, accretion and other financial guidance offered by senior management today with respect to 2016 and 2017 represent a point-in-time estimate and are based on information as of May 4, 2016. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. Numerous factors, including those noted above, may cause actual results to differ materially from the guidance provided. AMRI expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

1 EBITDA reflects IFRS with an adjustment to U.S. GAAP only for capitalization of R&D expenses

Source: AMRI

Related stocks: Frankfurt:AYM NASDAQ-NMS:AMRI

Written by asiafreshnews

May 9, 2016 at 11:24 am

Posted in Uncategorized

Vonage Holdings Corp. to Acquire Nexmo, Inc., Second Largest CPaaS Company Globally

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-Accelerates Company’s Growth Strategy and Elevates Leadership Position in Cloud Communications

HOLMDEL, New Jersey /PRNewswire/ — Vonage Holdings Corp. (NYSE: VG) (“the Company”) has entered into a definitive agreement to acquire privately-held Nexmo, Inc. (“Nexmo”), a global leader in the Communications Platform as a Service (“CPaaS”) segment of the Cloud Communications market, for $230 millionin cash and stock. Nexmo is the world’s second largest CPaaS company as measured by revenues. This acquisition accelerates Vonage’s growth strategy, deepens the Company’s technology capability and elevates its leadership position in Cloud Communications.

Innovative Technology Platform

San Francisco-based Nexmo provides communication application program interfaces (“APIs”) for text messaging and voice communications, allowing developers and enterprises to embed contextual communications into mobile apps, websites and business workflows via text, social media, chat apps and voice, creating better customer engagement for their business.

“In 2014, we set out on a mission to become the clear leader in Cloud Communications for business. With the acquisition of Nexmo, we are now uniquely positioned to lead the market,” said Vonage CEO Alan Masarek. “By combining Vonage’s rapidly growing Unified Communications as a Service (“UCaaS”) business, with Nexmo, the second largest player in CPaaS, we are creating the future of Cloud Communications. These companies represent a set of strategic, technology and human resources assets that deliver the broadest services offering in our industry.”

Significantly Expands Vonage’s Total Addressable Market

Industry analyst IDC expects CPaaS to grow to an $8 billion market by 2018. This rapid growth is being driven by the demand for communications within business apps and workflows, and the needs of new economy companies such as Uber, Alibaba and Snapchat, and traditional companies like KLM Airlines and Daimler, each of which are important Nexmo customers. With the addition of Nexmo, Vonage will have a total addressable market of nearly $28 billion by 2018.

“Vonage’s acquisition of Nexmo creates a Cloud Communications company that can not only help an enterprise’s employees be more productive using robust UCaaS solutions, but can also enable enterprises to improve how they engage with their customers through embedded, contextual communications, on any platform and on any device,” said Mark Winther, VP Worldwide Telecom Consulting for IDC.

Vonage + Nexmo Set New Standard

Founded in 2011, Nexmo has offices in London, Hong Kong and Singapore in addition to its San Franciscoheadquarters. Nexmo has the largest global network of interconnected carriers, 650 in total, delivering the best API-based communications platform for messaging, programmable voice and chat apps. Vonage’s strength in voice, coupled with Nexmo’s robust communications platform, will position the combined company as a best-in-class leader across the two dominant modes of communication today – voice and messaging. By joining Vonage, Nexmo will benefit from the power of Vonage’s carrier-grade voice network, the strength of the Vonage brand, broad sales distribution in the U.S., and significant operational and financial scale and resources.

Today, Nexmo has more than 350 tech-savvy enterprise customers worldwide, more than 114,000 registered developers and processes 5 billion API calls annually. Nexmo also represents a platform and entry point for Vonage to expand its brand globally and sell its solutions in EMEA, Asia Pacific and other attractive geographies.

Tony Jamous, co-founder and CEO of Nexmo, commented, “Nexmo was founded to make it easy for developers to create greater business efficiency and customer engagement through communications. Our success has been tied to our vision to reinvent communications for every app, everyone and everything.”

Mr. Jamous continued, “Our API technology, global network of interconnected carriers, and messaging expertise, combined with Vonage’s powerful brand, industrial-strength infrastructure and second-to-none voice capabilities, will enable us to provide an unmatched value proposition to businesses.”

Mr. Jamous has nearly 15 years of experience building high growth technology businesses with a focus on cloud, communications and mobile. Upon closing, he will join Vonage as President of Nexmo, a Vonage company, along with co-founder Eric Nadalin, Chief Technology Officer, and Nexmo’s 170-person team.

Transaction Terms and Financing

Under the agreement, Nexmo shareholders will receive consideration of $230 million, with an additional earn-out opportunity of up to $20 million dollars contingent upon Nexmo hitting certain performance targets. Of the consideration, $195 million will be paid at close, consisting of a minimum of $159 million of cash and a maximum of$36 million in stock. Vonage may elect at close to substitute $23 million of additional cash for stock. The remaining$35 million of the $230 million purchase price is in the form of restricted cash and restricted stock for Nexmo management and employees, both subject to vesting requirements over time. Vonage believes this structure will provide significant long-term incentives and retention value for Nexmo management. The earn-out opportunity is payable in cash or stock at Vonage’s election.

Vonage is financing the acquisition through a combination of cash on hand and revolver capacity, including a portion of the existing accordion feature in the 2015 credit facility. Pro-forma for the transaction, net debt to EBITDA will be approximately 2.25 times.

Vonage believes that the deal consideration, including payment of the earn-out opportunity, represents a multiple of less than 2 times projected Nexmo 2017 revenue. Annual cost synergies of $5 million are projected, primarily in the areas of Cost of Telephony Services and G&A.

J.P. Morgan Securities LLC served as lead financial advisor to Vonage and provided a fairness opinion to the Board of Directors. Weil, Gotshal & Manges LLP served as legal counsel to Vonage. G2020 Advisors, LLC served as financial advisor and Goodwin Procter LLP served as legal counsel to Nexmo.

Conference Call

Vonage will discuss further details of this transaction at 8:30 AM Eastern Time on May 5, 2016 during the Company’s First Quarter 2016 earnings call. To participate, please dial (877) 359-9508 approximately 10 minutes prior to the call. International callers should dial (224) 357-2393.

The webcast will also be broadcast live through Vonage’s Investor Relations website at http://ir.vonage.com. Windows Media Player or RealPlayer is required to listen to this webcast. A replay of the call and webcast will be available shortly after the conclusion of the call through May 11, 2016 and may be accessed through Vonage’s Investor Relations website at http://ir.vonage.com or by dialing (855) 859-2056. International callers should dial (404) 537-3406. The replay passcode is: 90282662.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, but are not limited to: (i) statements about the benefits of the merger; (ii) future financial and operating results following the merger; (iii) the combined company’s plans, objectives, expectations and intentions with respect to future operations, products and services; (iv) the competitive position and opportunities of the combined company; (v) the impact of the merger on the market for the combined company’s products; and (vi) the timing of the completion of the merger. In addition, other statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management’s belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to: risks related to the integration of Nexmo and the anticipated future benefits resulting from the acquisition of Nexmo; the combined company’s ability to react to trends and challenges in our business and the markets in which we operate; the combined company’s ability to anticipate market needs or develop new or enhanced products to meet those needs; the adoption rate of the combined company’s products; the combined company’s ability to establish and maintain successful relationships with our distribution partners; the competition we face; the expansion of competition in the unified communications market; our ability to adapt to rapid changes in the market for voice and messaging services; our ability to retain customers and attract new customers; the risk associated with developing and maintaining effective internal sales teams; the risk associated with developing and maintaining effective distribution channels; risks related to the acquisition or integration of future businesses; security breaches and other compromises of information security; risks associated with sales of our UCaaS services to medium-sized and enterprise customers; our dependence on third party facilities, equipment, systems and services; system disruptions or flaws in our technology and systems; our ability to scale our business and grow efficiently; our reliance on third party hardware and software; our dependence on third party vendors; the impact of fluctuations in economic conditions, particularly on our small and medium business customers; our ability to obtain or maintain relevant intellectual property licenses; intellectual property and other litigation that have been and may be brought against us; failure to protect our trademarks and internally developed software; obligations and restrictions associated with data privacy; uncertainties relating to regulation of VoIP services; results of regulatory inquiries into our business practices; fraudulent use of our name or services; our ability to establish and expand strategic alliances; risks associated with operating abroad; liability under anti-corruption laws; governmental regulation and taxes in our international operations; our dependence upon key personnel; our dependence on our customers’ existing broadband connections; restrictions in our debt agreements that may limit our operating flexibility; our ability to obtain additional financing if required; any reinstatement of holdbacks by our vendors; our history of net losses and ability to achieve consistent profitability in the future; and other factors that are set forth in the “Risk Factors” section and other sections of Vonage’s Annual Report on Form 10-K for the year ended December 31, 2015, in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, and therefore, you should not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to today.

About Vonage
Vonage (NYSE: VG) is a leading provider of cloud communications services for businesses. Vonage transforms the way people work and businesses operate through a portfolio of communications solutions that enable internal collaboration among employees, while also keeping companies closely connected with their customers, across any mode of communication, on any device. The Company also provides a robust suite of feature-rich residential communication solutions. In 2015, the Company was named a Visionary in the Gartner Magic Quadrant for Unified Communications as-a-Service, Worldwide and also earned the Frost & Sullivan Growth Excellence Leadership Award for Hosted IP and Unified Communications and Collaboration (UCC) Services. For more information, visitwww.vonage.com.

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage America Inc. To follow Vonage on Twitter, please visit www.twitter.com/vonage. To become a fan on Facebook, go to www.facebook.com/vonage. To subscribe on YouTube, visit www.youtube.com/vonage.

About Nexmo
Nexmo is a global cloud communications platform leader providing innovative communication APIs for voice, text, messaging and phone verification services. Nexmo enables applications and enterprises to communicate with their customers reliably and with ease, no matter where in the world they are located. High-volume communication companies such as Alibaba, and Viber send millions of messages per month using Nexmo APIs. Nexmo has been recognized by Roaming Consulting Company as a Tier 1 A2P SMS Messaging Vendor in 2015, a Top 20 Most Promising API Solution Providers in 2015 by CIO Review and was selected as an Aragon Research Hot Vendor in Real-Time Communication and Collaboration Platform as a Service in 2015. www.nexmo.com

(vg-f)

Source: Vonage Holdings Corp.

Related stocks: NYSE:VG

Written by asiafreshnews

May 9, 2016 at 11:18 am

Posted in Uncategorized

Retail Sees 400% YoY Growth in Wi-Fi Indoor Analytics Installations

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LONDON /PRNewswire/ — ABI Research, the leader in transformative technology innovation market intelligence, saw greater growth in Wi-Fi location analytics within the retail market in 2015 than initially anticipated. Calculations show that total Wi-Fi location technology installations in retail were up almost 400% YoY. Driving the growth is a combination of start-ups and access point vendors, such as Cisco Systems, Ruckus Wireless, and Zebra Technologies, that are adopting new pricing models, technologies, and a large number of platform partners to help them win new business.

Logo – http://photos.prnewswire.com/prnh/20151014/276887LOGO

“Previous iterations of Wi-Fi location platforms were expensive and not ideal for customer engagement,” saysPatrick Connolly, Principal Analyst at ABI Research. “But retailers and vendors quickly grasped that Wi-Fi’s role in this space centers on gathering customer analytics. iBeacons are good for engagement and advertising but very limited in the short-term for customer analytics. Zebra Technologies, for example, shows marked innovation in combining Wi-Fi and beacon technology with third party app offerings, to maximize analytics and customer engagement capabilities for their retail partners.”

Independent Wi-Fi analytics start-up providers, such as Euclid, Walkbase, Cloud4Wi, and, in particular, Purple, experienced rapid growth of their customer bases over the past two years, even expanding beyond retail into public venues like hospitality, stadiums, airports and cities/tourism. There are also some very significant Wi-Fi based rollouts at advanced stages of planning, which will ensure 2015 was not a one-off.

“The ongoing challenge is a simple one: there is always new technology around the corner,” concludes Connolly. “Retailers are only beginning to grow accustomed to Wi-Fi and iBeacons, yet the industry is already shifting toward a new generation of technologies, such as magnetic field, sensor fusion, and Google’s Project Tango. Many Wi-Fi and beacon vendors are also developing their own high accuracy proprietary solutions, which will start to penetrate the market in 2016. Overall, we also expect to see a big shift towards hybridization and increased accuracy in 2016.”

These findings are part of ABI Research’s Location Technologies Service (https://www.abiresearch.com/market-research/service/location-technologies/), which includes research reports, market data, insights, and competitive assessments.

About ABI Research

For more than 25 years, ABI Research has stood at the forefront of technology market intelligence, partnering with innovative business leaders to implement informed, transformative technology decisions. The company employs a global team of senior analysts to provide comprehensive research and consulting services through deep quantitative forecasts, qualitative analyses and teardown services. An industry pioneer, ABI Research is proactive in its approach, frequently uncovering ground-breaking business cycles ahead of the curve and publishing research 18 to 36 months in advance of other organizations. In all, the company covers more than 60 services, spanning 11 technology sectors. For more information, visit www.abiresearch.com.

Contact Info: Mackenzie Gavel

Tel: +44.203.326.0142

pr@abiresearch.com

Source: ABI Research

Written by asiafreshnews

May 9, 2016 at 11:13 am

Posted in Uncategorized