Earnings Surprises and Disappointments – Q2 2018

Top Three Surprises

  1. JMP Group LLC (JMP) +256%
  • Had record investment banking revenues
  • Increased accumulation of loans leading up to the CLO V pricing
  • Had a favorable exit from a principal investment
  • Investment banking revenues were up 49.3% yoy and asset management revenues were up 29.5% yoy

 

  1. Anika Therapeutics (ANIK) +106%
  • Maintained the #1 overall position in the U.S. viscosupplementation market
  • S. viscosupplement franchise grew 12% in Q2
  • Completed an accelerated share repurchase program from May to July, with ~800,000 shares repurchased
  • Product gross margin improved by 10% on a sequential basis

 

  1. Olympia Financial Group (OLY) +99%
  • Earnings before income tax increased 61% to $3.72 million from $2.31 million.
  • Total revenue, including interest earned as trustee and interest, increased 28% to $13.18 million from $10.26 million. The increase is due to an increase in service revenue in the Foreign Exchange division and Registered Plans division and interest earned as trustee in the Registered Plans division.  
  • Service revenue increased 25% to $10.31 million from $8.28 million due to an increase in trade volume and transaction sizes in the Foreign Exchange division and fees charged in connection with the restructuring of an exempt market issuer in the Registered Plans division.
  • Interest revenue on monies held in trust and interest on Olympia’s own cash increased 45% to $2.87 million from $1.98 million due to increases in the Canadian prime rate.

 

Top 3 Disappointments

  1. Full House Resorts (FLL) -433%
  • Net Revenue Grew 2.8%, Net Loss Improved 56.6%, and Adjusted EBITDA Increased 19.7%
  • Ferry Boat Christened at Rising Star Casino Resort; Anticipate Commencing Ferry Service This Quarter
  • Silver Slipper Casino & Hotel Preparing for Launch of Sports Betting Within the Next Few Weeks
  • Development Agreement for Expansion of Bronco Billy’s Casino & Hotel Approved; Currently Finalizing Construction Contracts for Phase One of the Expansion
  • Submitted Letter of Intent to Participate in New Mexico Racing Commission’s Competitive Process for State’s Sixth Racing License
  1. Daktronics (DAKT) -280%
  • Reported net sales of $154.2 million, operating income of $4.0 million, and net income of $4.6 million, or $0.10 per diluted share, compared to net sales of $172.7 million, operating income of $11.7 million, and net income of $8.4 million, or $0.19 per diluted share, for the first quarter of fiscal 2018. 
  • Fiscal 2019 first quarter orders were $159.6 million, compared to $153.1 million for the first quarter of fiscal 2018.
  • Product order backlog at the end of the fiscal 2019 first quarter was $177 million, compared to a backlog of $184 million a year earlier and $171 million at the end of the fourth quarter of fiscal 2018. 
  • Reece Kurtenbach, chairman, president and chief executive officer stated, “As expected, first quarter sales were less than the first quarter of 2018 and reflect the financial fluctuations caused by the timing of large projects. Year to date orders have increased over last year, and we achieved a respectable gross profit margin on this level of business. During the quarter, we installed several of the new generation of narrow pixel pitch products for high resolution indoor applications. We continue to invest in broadening our narrow pixel pitch product line and control solutions. Our pipeline of innovative new products and technologies is poised to meet the growing market demand for digital canvases.” 

 

  1. A-Mark Precious Metals (AMRK) -250%
  • Revenues for the three months ended December 31, 2017 decreased 21% to $1.68 billion from $2.13 billion for the three months ended December 31, 2016 and decreased 22% from $2.16 billion for the three months ended September 30, 2017
  • Gross profit for the three months ended December 31, 2017 decreased 10% to $8.9 million from $9.9 million for the three months ended December 31, 2016 and increased 22% from $7.3 million for the three months ended September 30, 2017
  • Net loss for the three months ended December 31, 2017 totaled $0.2 million or $(0.03) per diluted share (which includes $0.3 million of additional tax expense as a result of the recently enacted Tax Cuts and Jobs Act), as compared to net income of $2.8 million or $0.39 per diluted share for the three months ended December 31, 2016 and net income of $0.5 million or $0.07 per diluted share for the three months ended September 30, 2017

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