ETEV, GSAE, NVSR, APDN, ALRX, ARIO, CMLS, NVNC, PGTI, HRRN, DUSS Daily Market Movers Digest Midday Report for Thursday, August 6th from OTCPicks.com
Our Stocks to Watch today include Ethos Environmental Inc. (OTCBB: ETEV), Green Star Alternative Energy Inc. (OTC: GSAE), NavStar Technologies Inc. (OTC: NVSR), Applied DNA Sciences Inc. (OTCBB: APDN), AlphaRx Inc. (OTCBB: ALRX), AmeriResource Technologies Inc. (OTC: ARIO), Cumulus Media Inc. (Nasdaq: CMLS), Novo Energies Corp. (OTCBB: NVNC), PGT Inc. (Nasdaq: PGTI), HE-5 Resources Corp. (OTC: HRRN) and Dussault Apparel Inc. (OTCBB: DUSS).
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ETHOS ENVIRONMENTAL INCORPORATED (OTCBB: ETEV)
"Up 20.45% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/ETEV.php
Company Profile: http://www.otcpicks.com/ethos-environmental.htm
Ethos Environmental, Inc. (OTCBB: ETEV), a San Diego-based corporation, is the manufacturer of award-winning fuel reformulating products that help industries meet environmental regulations and relieve skyrocketing fuel costs. By using EthosFR+, commercial vehicles can increase fuel economies, while reducing harmful emissions.
ETEV News:
August 6 - Continuing Fuel Economy Improvement Documented in Latest 25,000 Mile Mark Over-the-Road Testing Opacity Emissions Now Reduced to Virtually Zero
Ethos Environmental, Inc. (OTCBB: ETEV), a San Diego based company, today announced the Company's research division, Ethos Scientific LLC, has received confirmation of continued improvements in fuel economy from the latest Over-The-Road (OTR) interim test results reported at the 25,000 mile mark from the start of the test on the test vehicle. The test results were obtained from the combined use of EthosFR+, a liquid fuel catalyst, in the test vehicle's fuel and EthosFR Oil Treatment in the vehicle's engine oil.
The original test results were reported on June 29th, 2009 at the 10,000 mile mark on the test vehicle.
The ongoing OTR testing is being performed by the California Environmental Engineering (CEE) Laboratory, Center for Environmental Research in
This latest test data now reveals a substantial fuel economy improvement of up to 15% with opacity emissions now being reduced to virtually zero. The previous interim results as reported in the Company's June 29th, 2009 press release showed up to an 11.3% improvement in fuel economy. The test vehicle is the same vehicle referenced in the June 29th, 2009 press release.
Ongoing fuel economy and opacity emissions testing on this vehicle will include Particulate Matter Density results in the next phase of testing.
"We're delighted to be able to substantively document and report that continued use of EthosFR+ and EthosFR results in increased improvements in fuel economy and further reductions in tailpipe emissions," said Corey P. Schlossmann, Ethos Environmental, Inc.'s CEO. "These newest test results confirm the steady stream of user/anecdotal results the Company continues to receive from its growing customer base."
GREEN STAR ALTERNATIVE ENERGY INCORPORATED (OTC: GSAE)
"Up 5.77% in morning trading"
Detailed Quote: www.otcpicks.com/quotes/GSAE.php
Company Profile: http://www.otcpicks.com/Newsletter/GSAE_eProfile_091708.htm
Green Star Alternative Energy is an environmentally conscious, renewable energy producer. The Company is working to develop more than 300 MW (megawatts) of clean electricity through wind energy. The corporate revenue model is two-fold: the use of a renewable resource allows not only for the creation of environmentally friendly energy, but the granting of carbon (greenhouse gas) emission credits which may be traded and sold. Green Star is pursuing a significant opportunity to provide clean energy to the growing
GSAE News:
August 6 - Market Advisors, Inc. Issues 'Speculative Buy' Report on Green Star Alternative Energy with a $2.38 Target Price
A new research report has been issued on Green Star Alternative Energy, Inc. (OTCPK: GSAE) by Market Advisors, Inc. "Fundamental Analysis for Today's Investments" with a "Speculative Buy" and a $2.38 intermediate price target. Visit www.thegreenbaron.com/gsae to view the report.
Market Advisors arrived at its price target of $2.38 per share by taking 7 times 2011 projected net income of .34 per share (U.S $17.2 million) and assumed there could be 50 million shares outstanding by year-end 2011.
Green Star is pursuing a significant opportunity to provide clean energy to the growing
August 5 - Green Star to Attend the United Nations Climate Change Conference
Green Star Alternative Energy, Inc. (OTC: GSAE) (Frankfurt: GAT) announced that the Company will be attending COP15 – United Nations Climate Change Conference where representatives from over 150 countries will meet in Copenhagen, Denmark to replace the now expiring ‘Kyoto Climate Treaty’. A consensus, backed by science, is emerging among the international community that by 2050 the world will need to reduce emissions of carbon dioxide, methane, and other greenhouse gases to approximately 80 percent lower than they were in 1990. It will mean wholesale reinvention of the global energy economy; anything less could result in catastrophic global temperature increases.
Oliver Dulic, Minister of Environment and Spatial Planning of Republic of Serbia, and President of United Nations Environment Programme stated, “In response to the eminent world threats of climate change and economic crisis, UNEP has launched an initiative to promote the 'greening' of the global economy through increased investments in such areas as clean sources, sound chemical and waste management, biodiversity-based products, and environmental infrastructure. As an immediate first step, UNEP is calling for a Global Green New Deal to steer economic stimulus investments in an environmentally and financially sustainable direction.”
Mike Andric, CEO of Green Star Alternative Energy, stated: “The issues surrounding the global economy and our environment are at the forefront for developing a sound and healthy future. Studies are calling for over 2000 GW of wind power by 2050, while the world has developed only 120 GW to date. The need is pressing and provides the Company and our shareholders with exceptional growth potential.”
NAVSTAR TECHNOLOGIES INCORPORATED (OTC: NVSR)
"Up 32.86% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/NVSR.php
Company Profile: http://www.otcpicks.com/navstar-technologies/navstar-technologies.htm
NavStar is focused on the creation of GPS products and services that provide wireless tracking of vehicles, equipment, and other valuable and personal assets. The goal is to be a total solutions provider.
NVSR News:
August 6 - Upside of $30M in Hardware and Service Revenue From Distribution Agreement Completed Between NavStar Technologies and Anything Trucker for Sales and Marketing in
NavStar Technologies, Inc. (OTC: NVSR), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo, announced the completion of a distribution agreement to sell products and services to the trucking industry in the U.S.
NavStar announced earlier this week that they would partner with Anything Trucker, a transportation marketing unit of Anything Brands Online, Inc (Pinksheets:ANYT - News). A distribution agreement has been signed. Both companies are excited about moving forward with tracking and monitoring assets, and providing new productivity and efficiency tools that have not been available to the trucking industry in the past.
Tim Norton, President, Anything Trucker, stated, "We are very excited to have NavStar as a business partner as we continue to provide communications, safety, and security products and services that make the American Trucker more efficient. Today millions of pieces of road equipment are scattered across the country with very limited information as to their exact location. With the NavStar Asset Tracker we can provide real-time location reporting, eliminate excessive fuel consumption, and reduce time spent searching for a specific piece of equipment. We can now provide innovations that will change how any motorized fleet, whether: private or for-hire, delivery companies, auto services or heavy equipment industry, monitor and track their assets while making them more efficient, productive and ultimately more profitable. These are just some of the many benefits of the NavStar Asset Tracker System."
"This new distribution agreement has permitted NavStar Technologies to identify and develop six new software applications which will be launched in the next several months. As well NavStar Technologies is pleased to have access to Anything Trucker's resources and industry knowledge. We have worked long and hard to make the NavStar Asset Tracker the industry's most flexible solution and are pleased to deliver a platform which allows for customization and optimization as evidenced by our meeting the demands of Anything Trucker. A prime example of our system's benefits is that at the present time, trucking companies spend upwards of $50,000 a year just calculating fuel taxes; whereas our system does so automatically, as well as provide a monthly report in any format they desire," said N. Douglas Pritt, Chairman & CEO, NavStar Technologies, Inc. "This distribution agreement represents a market penetration of .005% into the US trucking market and will double our forecast of unit sales over the next four years and will generate a minimum of $30M in hardware and service revenue."
APPLIED DNA SCIENCES INCORPORATED (OTCBB: APDN)
"Up 2.37% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/APDN.php
Company Profile: http://www.otcpicks.com/applied-dna-sciences.htm
APDN sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied. APDN also provides BioMaterial GenoTyping(TM) by detecting genomic DNA in natural materials to authenticate finished products. Both technologies protect brands and products in a wide range of industries and provide a forensic chain of evidence that can be used to prosecute perpetrators.
APDN News:
August 5 - Crystal Research Issues Executive Informational Overview® on Applied DNA Sciences
DNA Platform Technologies Provide Anti-Counterfeiting Security Solutions
Applied DNA Sciences, Inc. (OTCBB: APDN) announced that Crystal Research Associates, LLC has issued an Executive Informational Overview (EIO) on APDN. The full report can be found at www.crystalra.com. Well-known and respected on Wall Street, Jeffrey Kraws, CEO of Crystal Research Associates (Crystal), has received some of the most prestigious awards in the industry and is a frequent guest on CNN, CNBC, MSNBC, Fox Business News and Bloomberg. He has been consistently ranked as one of the leading research analysts in the pharmaceutical sector on Wall Street (StarMine), and often cited for his expert opinion on important trends and financial direction relative to security, biotech, pharmaceuticals and other key sectors.
APDN provides DNA-based security and authentication solutions to identify originals and to help protect products, brands, and intellectual property from counterfeiting and diversion. Counterfeiting is one of the fastest growing pecuniary crimes, threatening jobs and business, and endangering public health and safety. The World Customs Organization estimated that the $600 billion (2004) annual global trade in illegitimate goods is expected to double to $1.2 trillion by 2014.
Driven by its two anti-counterfeiting security platforms, SigNature DNA and BioMaterial Genotyping™, APDN can service a multitude of industries including cash-in-transit, textiles and apparel, secure documents for military and homeland security, pharmaceuticals, wine, and other luxury items. Commercial applications across a broad spectrum of industries allow APDN to minimize revenue risk concentration and create a steady stream of income.
DNA is a form of forensic evidence trusted by police and recognized by courts around the world. APDN is the ONLY company making use of the complex codes embedded in botanical DNA as the ultimate solution to counterfeiting. Unlike holograms and RFIDs, APDN's patented SigNature DNA markers:
* cannot be copied or reverse engineered
* are forensic and offer absolute authentication
* are "green," safe and affordable
APDN has recently been selected to launch its SigNature DNA Anti-Counterfeiting Program for the
ABOUT
ALPHARX INCORPORATED (OTCBB: ALRX)
Detailed Quote: http://www.otcpicks.com/quotes/ALRX.php
Company Profile: http://www.otcpicks.com/alpharx/alpharx.htm
AlphaRx is a specialty pharmaceutical company dedicated to developing proven therapies by reformulating FDA approved and marketed drugs which through the application of its proprietary site-specific nano drug delivery technology, offers improved medical benefits and a potential for significant commercial product development.
ALRX News:
August 4 - AlphaRx and Venturepharm Announce Collaboration Agreement
AlphaRx Inc. (OTCBB: ALRX), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, announced that the Company has entered into a collaboration agreement with Venturepharm Group (the "Venturepharm") to establish a drug development center in China Medical City, Taizhou, China that is expected to be used as a platform for the development of innovative drug products for the fast growing China pharmaceutical market. The goal of this is to enhance the Company's research capabilities, expedite the development of new products as well as to expand the Company's product range.
Under the terms of the agreement, AlphaRx will incorporate its China R D facility into Venturepharm's state of the art pre-clinical development complex which comprises of a 200,000 sq. ft. chemistry center, a 200,000 sq. ft. multi-product pilot plant to support pilot scale formulation and Clinical Trial Material (CTM) manufacture of biopharmaceutical products and a 500,000 sq. ft. (Asia's largest) animal testing center (under construction). The in-house pharmaceutical research facilities provide specialized equipment for most aspects of drug research and development. AlphaRx will be responsible for all of its own product development costs and will in turn retain the intellectual property rights relating to any developed products.
Michael Lee, President of AlphaRx, said: "Venturepharm provides the equipment and physical infrastructure to further establish our presence in
ABOUT VENTUREPHARM GROUP
Venturepharm Group is an
AMERIRESOURCE TECHNOLOGIES INCORPORATED (OTC: ARIO)
"Up 100.00% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/ARIO.php
AmeriResource is a diversified holding company with headquarters in
ARIO News:
August 5 - AmeriResource Enters Multi-Billion Dollar Freight Savings Business
AmeriResource Technologies, Inc. (OTC: ARIO), a diversified holding company, shares its insight into the multi-billion dollar freight industry. ARIO, through its subsidiary, ATTO Enterprises, Inc., is in the initial stages of hiring sales staff, retooling its software, and updating its web site in an effort to begin saving potentially thousands of clients anywhere between 5% to 20% on their shipping bills.
Delmar Janovec, CEO of AmeriResource comments, "The trucking-freight industry has enjoyed some of its best years in the amount of revenues and tons shipped during the 2006 and 2007 timeframe, as detailed in the Reuters press release report at http://www.reuters.com/article/pressRelease/idUS162692+25-Jan-2008+BW20080125. Revenues exceeded $600 billion and over 10 billion tons were shipped. The report shows the industry is an enormous market and If ATTO Enterprises is able to capture only a fraction of this industry revenue, ATTO will have a bright future."
Mr. Janovec continued, "With the economy still on the ropes, ATTO's technology is another way for businesses to trim the 'fat' by reducing shipping costs. The beauty of ATTO's service is that it cost nothing other than the time it takes for its clients to sign up. ATTO gets paid out of the savings it creates for its clients. According to documents from former Atto Solution LLC, the technology was able to save up to 20% in shipping cost for it clients. I am optimistic that ATTO, with the proper financing, will be able to land many clients that spend in excess of $1M in shipping every year. I encourage potential clients and investors alike to do the math on what such numbers could mean to ARIO's bottom line in the not too distant future."
ABOUT ATTO ENTERPRISES
ATTO Enterprises addresses the shipping expenditures for its clients by providing our software technology that reviews the customer's overall freight systems and expenses to determine if the customer's costs are in line within the industry. Following the analysis, the Company will provide the customer with our findings and cost saving projections. If ATTO does not save the customer on its shipping charges, then the customer does not pay. If ATTO saves the customer on its shipping charges, then ATTO shares in the cost savings as our fee for the services.
CUMULUS MEDIA INCORPORATED (NASDAQ: CMLS)
"Up 1.45% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/CMLS.php
Cumulus Media, Inc. engages in the acquisition, operation, and development of frequency modulation and amplitude modulation radio stations in mid-size radio markets in the
CMLS News:
August 5 - Cumulus Reports Second Quarter 2009 Results
Cumulus Media Inc. (Nasdaq: CMLS) reported financial results for the three and six months ended June 30, 2009:
Results of Operations
Three Months Ended June 30, 2009 Compared to the Three Months Ended June 30, 2008
Net revenues for the second quarter decreased from $83.6 million to $66.0 million, a decrease of 21.1% versus the second quarter of 2008, primarily due to the impact the current economic recession has had across our entire station platform. Cash revenues for the second quarter decreased from $79.8 million to $62.8 million, a decrease of 21.2% and barter revenue decreased $0.7 million or 18.3% as we continue to deemphasize barter transactions.
Station operating expenses decreased from $53.0 million to $39.2 million, a decrease of 25.9% from the second quarter of 2008. This decrease was primarily due to continued efforts to contain operating costs, such as personnel reductions, a mandatory one-week furlough and continued scrutiny of all operating expenses across our entire station platform.
Station operating income decreased from $30.7 million to $26.7 million, a decrease of 12.8% from the second quarter of 2008, for the reasons discussed above.
Corporate expenses (excluding non-cash stock compensation and terminated transaction expense) for the three months ended June 30, 2009 increased $0.1 million over the comparative period in 2008, primarily due to deal fees associated with an asset exchange, partially offset by timing differences associated with various other corporate expenses.
Non-cash stock compensation expense was $0.6 million for the three months ended June 30, 2009, as compared with $0.8 million non-cash stock compensation expense in the prior year, three-month period due to certain option awards becoming fully amortized in 2008.
Interest expense, net of interest income, increased by $6.8 million to $6.2 million for the three months ended June 30, 2009 as compared with net interest income of $0.6 million in the prior year’s period. Cash interest expense associated with outstanding debt decreased by $4.3 million to $3.8 million as compared to $8.1 million in the prior year’s period. This decrease was due to a lower average cost of bank debt and decreased levels of bank debt outstanding during the current quarter. Cash interest expense associated with the yield on interest rate swap increased $3.3 million to $3.6 million from $0.3 million in the prior year’s period. The remaining $7.8 million increase as primarily due to the change in the fair value of certain derivative instruments.
For the three months ended June 30, 2009, the Company recorded income tax expense of $6.1 million, as compared to expense of $8.1 million for the second quarter of 2008.
Six Months Ended June 30, 2009 Compared to the Six Months Ended June 30, 2008
Net revenues for the six months ended June 30, 2009 decreased from $156.5 million to $121.3 million, a decrease of 22.5% from the same period in 2008, due to the impact the current economic recession has had across our entire station platform. Cash revenues for the six months ended June 30, 2009 decreased from $149.4 million to $115.9 million, a decrease of 22.5% and barter revenues decreased 23.0% to $5.5 million from $7.1 million as we continue to deemphasize barter transactions.
Station operating expenses decreased from $104.1 million to $81.5 million, a decrease of 21.7% from the same period in 2008. This decrease was primarily due to continued efforts to contain operating costs, such as personnel reductions, a mandatory one-week furlough and continued scrutiny of all operating expenses across our entire station platform.
Station operating income decreased from $52.4 million to $39.8 million, a decrease of 24.1% from the six months ended June 30, 2008, for the reasons discussed above.
Corporate expenses (excluding non-cash stock compensation and terminated transaction expense) for the six months ended June 30, 2009 increased $2.2 million over the comparative period in 2008, due primarily to an increase in professional fees associated with our defense of certain lawsuits and deal fees associated with an asset exchange plus timing differences associated with the payment of various corporate expenses.
Non-cash stock compensation expense was $1.2 million for the six months ended June 30, 2009, as compared with $2.9 million non-cash stock compensation expense in the prior year, six-month period.
Interest expense, net of interest income, decreased by $6.0 million to $13.9 million for the six months ended June 30, 2009 as compared with $19.9 million in the prior year’s period. Cash interest expense associated with outstanding debt decreased by $10.4 million to $7.9 million as compared to $18.3 million in the prior year’s period. This decrease was due to a lower average cost of bank debt and decreased levels of bank debt outstanding during the current period. Cash interest expense associated with the yield on the interest rate swap increased $6.6 million to $6.0 million from income of $0.6 million in the prior year’s period. The remaining $2.2 million decrease as primarily due to the change in the fair value of certain derivative instruments.
For the six months ended June 30, 2009, the Company recorded income tax expense of $5.3 million, as compared to expense of $4.4 million for the same period during 2008.
Cumulus Media Partners
For the three and six months ended June 30, 2009, the Company recorded as net revenues approximately $1.0 million and $2.0 million, respectively, in management fees from CMP.
Leverage and Financial Position
Net leverage was 8.05 times at June 30, 2009.
Capital expenditures for the three and six months ended June 30, 2009 totaled $0.4 million and $1.2 million, respectively. Capital expenditures during the quarter were comprised of $0.3 million of expenditures related to leasehold improvements and the purchase of equipment related to studio facilities and tower structures, and $0.1 million of maintenance capital expenditures.
Non-GAAP Financial Measures
The Company utilizes certain financial measures that are not calculated in accordance with GAAP to assess financial performance and profitability. The non-GAAP financial measures used in this release are station operating income, adjusted EBITDA and free cash flow. Station operating income consists of operating income before LMA fees, depreciation and amortization, non-cash stock compensation, impairment charge, gain on exchange of radio stations, terminated transaction expense and corporate general and administrative expenses. Adjusted EBITDA is defined as operating income before LMA fees, depreciation and amortization, non-cash stock compensation, impairment charge, gain on exchange of radio stations and terminated transaction expense.
Free cash flow is defined as operating income before non-cash stock compensation, impairment charge, depreciation and amortization, gain on exchange of radio stations, terminated transaction expense, less net interest expense (excluding non-cash charge/credit for change in value and amortization of swap arrangements and amortization of debt issuance costs), and maintenance capital expenditures.
Station Operating Income
Station operating income isolates the amount of income generated solely by the Company’s stations and assists management in evaluating the earnings potential of the Company’s station portfolio. In deriving this measure, management excludes LMA fees, even though it requires a cash commitment, due to the insignificance and temporary nature of such fees. Management excludes depreciation and amortization due to the insignificant investment in tangible assets required to operate the stations and the relatively insignificant amount of intangible assets subject to amortization. Management excludes non-cash stock compensation and impairment charges from the measure as they do not represent cash payments for activities related to the operation of the stations. Management excludes gain on the exchange of radio stations as it does not represent a cash transaction. Management excludes terminated transaction expense as it is unrelated to the operation of the stations. Corporate expenses, despite representing an additional significant cash commitment, are excluded in an effort to present the operating performance of the Company’s stations exclusive of the corporate resources employed. Management believes this is important to its investors because it highlights the gross margin generated by its station portfolio. Management believes that station operating income is the most frequently used financial measure in determining the market value of a radio station or group of stations. Management has observed that station operating income is commonly employed by firms that provide appraisal services to the broadcasting industry in valuing radio stations. Further, in each of the more than 140 radio station acquisitions the Company has completed since its inception, it has used station operating income as the primary metric to evaluate and negotiate the purchase price to be paid. Given its relevance to the estimated value of a radio station, management believes, and its experience indicates that investors consider the measure to be extremely useful in order to determine the value of its portfolio of stations. Management believes that station operating income is the most commonly used financial measure employed by the investment community to compare the performance of radio station operators. Finally, station operating income is one of the measures that management uses to evaluate the performance and results of its stations. Management uses the measure to assess the performance of the Company’s station managers and the Company’s Board of Directors uses it as part if its assessment of the relative performance of the Company’s executive management. As a result, in disclosing station operating income, the Company is providing its investors with an analysis of its performance that is consistent with that which is utilized by its management and its Board.
Station operating income is not a recognized term under GAAP and does not purport to be an alternative to operating income from continuing operations as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, station operating income is not intended to be a measure of free cash flow available for dividends, reinvestment in the Company’s business or other management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Station operating income should be viewed as a supplement to, and not a substitute for, results of operations presented on the basis of GAAP. Management compensates for the limitations of using station operating income by using it only to supplement the Company’s GAAP results to provide a more complete understanding of the factors and trends affecting the Company’s business than GAAP results alone. Station operating income has its limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
Adjusted EBITDA
Adjusted EBITDA is also utilized by management to analyze the cash flow generated by the Company’s business. This measure isolates the amount of income generated by its stations after the incurrence of corporate general and administrative expenses (exclusive of terminated transaction expense which is non-recurring and unrelated to the operation of the stations). Management uses this measure to determine the contribution of the Company’s station portfolio, including the corporate resources employed to manage the portfolio, to the funding of its other operating expenses and to the funding of debt service and acquisitions.
In deriving this measure, management excludes LMA fees, even though it requires a cash commitment, due to the insignificance and temporary nature of such fees. Management also excludes depreciation and amortization due to the insignificant investment in tangible assets required to operate its stations and corporate office and the relatively insignificant amount of intangible assets subject to amortization. Management excludes non-cash stock compensation and impairment charges from the measure as they do not represent cash payments for activities related to the operation of the stations. Management excludes gain on the exchange of radio stations as it does not represent a cash transaction. Finally, management excludes terminated transaction expense as it is unrelated to the operation of the stations.
Management believes that adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the investment community as a measure for determining the market value of a radio company. Management has also observed that adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for radio broadcasting companies. Given the relevance to the overall value of the Company, management believes that investors consider the metric to be extremely useful.
Adjusted EBITDA should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP.
Free Cash Flow
Free cash flow is also utilized by management to analyze the cash generated by our business. Free cash flow measures the amount of income generated each period that could be used to fund acquisitions or repay debt, after funding station and corporate expenses (excluding transaction costs), maintenance capital expenditures, payment of LMA fees and debt service.
Management believes that free cash flow, although not a measure that is calculated in accordance with GAAP is commonly employed by the investment community to evaluate a company’s ability to pay down debt, pay dividends, repurchase stock and/or facilitate the further growth of a company through acquisition or internal development. Management further believes that free cash flow is also utilized by investors as a measure in determining the market value of a radio company. Free cash flow should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP.
As station operating income, adjusted EBITDA and free cash flow are measures that are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures employed by other companies. See the quantitative reconciliation of these measures to their most directly comparable financial measure calculated and presented in accordance with GAAP that follows below.
NOVO ENERGIES CORPORATION (OTCBB: NVNC)
"Up 66.67% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/NVNC.php
Novo is a public company trading on the Over the Counter Bulletin Board Market ("OTCBB") under the symbol NVNC, with offices in
NVNC News:
August 5 - Novo Energies Corporation Announces the Appointment of Bruno Fortier, Former Delegate General for the
Novo Energies Corporation (OTCBB: NVNC) ("Novo") announced that it has appointed Bruno Fortier, former Delegate General for the
As Delegate General, Mr. Fortier focused on fostering the growth of mid market companies within
"I am delighted to be part of Novo Energies as I envision being able to further introduce Novo's proprietary technology developed in
"Novo welcomes Mr. Fortier to its Advisory Board. Mr. Fortier's Canadian government relationships and introductions in the
PGT INCORPORATED (NASDAQ: PGTI)
"Up 19.05% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/PGTI.php
PGT® pioneered the
PGTI News:
August 5 - PGT Reports 2009 Second Quarter Results
PGT, Inc. (Nasdaq: PGTI), the leading
* Net sales were $46.9 million, an increase of $5.4 million, or 12.9%, compared to the first quarter of 2009. Sales decreased when compared to the prior year second quarter by $13.2 million, or 22.0%.
* Gross margin of 31.2% improved compared to the 2009 first quarter gross margin of 23.8%, but declined when compared to gross margin of 35.8% in the second quarter of 2008.
* Net income was $342 thousand, compared to an adjusted net loss of $3.7 million in the first quarter of 2009, and adjusted net income of $1.9 million in the second quarter of 2008.
* Net income per diluted share was $0.01, compared to an adjusted net loss per diluted share of $0.11 in the first quarter of 2009, and adjusted net income per diluted share of $0.06 in the second quarter of 2008.
* EBITDA was $6.0 million, compared to adjusted EBITDA of $2.0 million in the first quarter of 2009 and $9.5 million in the second quarter of 2008.
* Solid cash generation was used to make additional debt payments totaling $8.0 million in June.
* Cost reductions from initiatives taken in the first quarter of 2009 were fully realized and are on track to produce savings for the rest of the year and beyond.
"We delivered solid operating performance in an environment of new housing starts down 44% compared to the second quarter of 2008, as the challenges faced by the home building industry continue. Although our sales decreased 22% in the second quarter of 2009 compared to 2008, we were able to generate $5.0 million of cash from our operations," said Rod Hershberger, PGT's President and Chief Executive Officer. "Additionally, the homebuilding industry began to show some positive signs as several of the nation's largest home builders reported increases in new home orders and decreases in cancellation rates. However, credit availability continues to be of concern and the rate of unemployment in some areas is now in the double-digits. These mixed economic signals make predicting a turn-around in the home building industry difficult, but they may be an indicator of increased stability. Actions in 2009 to better align costs with the continued decline in our sales levels benefited us in our second quarter results and will benefit us into the future. We continue to move forward with new product offerings and line expansions and to pursue growth opportunities both inside and outside of
Commenting further on the second quarter of 2009, Jeff Jackson, PGT's Executive Vice President and Chief Financial Officer, stated, "Our sales continued to be negatively impacted by the most difficult market conditions we have ever encountered, declining $13.2 million, or 22.0%, from the second quarter of 2008. However, we saw some encouraging signs in the second quarter, including an increase in sequential quarter sales, and our efficiency initiatives positively impacted our ability to generate cash. This internally generated cash, coupled with effective management of working capital, enabled us to prepay $8.0 million of outstanding bank debt in June, while cash on hand decreased only $1.7 million during the quarter."
Mr. Jackson continued, "While we are pleased with the results of our second quarter, we expect the challenges of this unprecedented market downturn to continue through the rest of 2009, and possibly further. However, we remain committed to investing in our future, controlling costs and strengthening our balance sheet by further reducing debt."
HE-5 RESOURCES INCORPORATED (OTC: HRRN)
"Up 6.12% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/HRRN.php
HE-5 Resources Corp. engages in the explorations of mineral properties in
HRRN News:
August 6 - HE-5 Resources Corp. Announces Dividend and Mandatory Share Exchange
HE-5 Resources, Corp. (OTC: HRRN) announced a stock dividend payment for its loyal shareholders. The Company has resolved to offer this stock dividend as a means to reward all its shareholders who stayed with the company through the difficult re-organization process.
HE-5 Resources Inc. is pleased to announce a dividend payment for all shareholders of record on August 11, 2009. On this date, the common shares of HRRN will be forward split by a ratio of 2 for 1 and payable as a mandatory exchange. The effective date of the forward split will be August 16, 2009.
In order for shareholders to take advantage of the forward split, each shareholder will be required to return their physical certificates to the transfer agent in order to collect their new shares. There will be more news developments from the company next week in and more updates in regards to the procedure to be taken by shareholders in order to secure the dividend payment.
DUSSAULT APPAREL INCORPORATED (OTCBB: DUSS)
"Up 21.15% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/DUSS.php
Dussault Apparel, Inc. is a designer, manufacturer, wholesaler and retailer of high-end quality apparel, its expanding product line includes custom designed hoodies, jeans, jewelry, t-shirts, hats and leather goods. An accelerated growth company, Dussault Apparel, Inc. trades on the Nasdaq OTC bulletin board.
DUSS News:
August 6 - Dussault Apparel Launches Deuce Apparel Collection With Concept One
Dussault Apparel Inc. (OTCBB: DUSS) (the "Company") announced that its Deuce Collection brand of head wear will be available this fall at an international retail chain with stores across North America through a distribution arrangement with Concept One.
Concept One has received an initial order of 4000 qty 1000 of each style that was presented in the Fall 2009 collection of Deuce by Dussault hats for distribution to stores in early November 2009. "We are delighted to be working with such a dominant distributor as Concept One," said Jason Dussault, President and CEO of Dussault Apparel Inc. "I couldn't be happier with the delivery date of early November in time for the all important holiday season, and this opportunity brings the brand to more locations than we have ever had," added Dussault.
Sam Haif of Concept One commented, "I am very happy with this opening order. The retailer is one of our key accounts and they were very excited about the line."
ABOUT CONCEPT ONE
Concept One is the premier resource for licensed fashion, sports, and entertainment accessories. Its integrated portfolio contains an unprecedented offering — creating the ultimate go-to resource for men's, women's and children's licensed accessory products.
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