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Indonesia suicide bomber mum 'chatted to neighbors about schools, swapped recipes' | May 17, 2018 / 8:58 AM / Updated 23 minutes ago Indonesia suicide bomber mum 'chatted to neighbors about schools, swapped recipes' Kanupriya Kapoor 6 Min Read
SURABAYA, Indonesia (Reuters) - The mother of an Indonesian family of six who launched suicide bomb attacks on three churches chatted to neighbors about schooling and swapped recipes, leading what appeared to be a regular middle-class life and eluding counter-terrorism forces.
The family killed at least 18 people, including themselves, by bombing the churches in Indonesia’s second-biggest city of Surabaya on Sunday in the worst militant attacks in the world’s biggest Muslim-majority country in more than a decade.
Home was a quiet, relatively affluent neighborhood of Surabaya. Most houses in the area have hatchbacks and family cars parked outside and in front a small yard more often than not strewn with toys and children’s bicycles.
“My wife talked to the mother all the time about the children’s education, about recipes. They often met at the local market,” said Wery Trikusuma, who lives next door.
“They were quite open and interactive. They contributed money to neighborhood repairs for example for roads. They often left their front gates open to receive guests, he said, adding it “seemed impossible that they could do this”.
The day after the church bombings, six died, including four bombers, in another suicide attack. Another family of five blew themselves up, but the eight-year-old daughter survived.
In another blast in an apartment near Surabaya on Sunday night, three members of a family believed to have been making bombs were killed when one device went off by accident. Three children survived.
Police also later shot dead four people with suspected links to the attacks.
Police suspect the attacks were carried out by a cell of the Islamic State-inspired Jemaah Ansharut Daulah (JAD), an umbrella organization on a U.S. State Department terrorist list that is reckoned to have drawn hundreds of Indonesian sympathizers of the extremist group. RAW INTELLIGENCE
The families all lived in ordinary middle-class districts where neighbors say they saw few things to mark them out.
“We had received very raw intelligence that there may be an attack in the week before Ramadan but not about when exactly or where,” said a senior government official, referring to the Muslim fasting month that started on Thursday in Indonesia.
“But there was never any report about an entire family being used, or that that was even possible.”
Police say the father in the family that attacked the churches, Dita Oepriarto, was head of the local JAD cell and likely radicalized decades earlier.
Indonesia set up a counter-terrorism unit, Detachment, or “Densus”, 88, in 2003 which is credited with thwarting hundreds of plots, but the Surabaya attacks mark the squad’s biggest challenge in decades.
In all, around 30 people have been killed since Sunday in the attacks, including 13 of the suspected suicide bombers.
According to the senior government official, President Joko Widodo decided not to fire top security personnel when he learnt of the shocking nature of the attacks and instead called for action to dismantle the networks and said he would use executive powers to force through a strengthened anti-terrorism law if parliament did not act.
The presidential palace did not respond to requests for comment.
“This attack demonstrates that entire communities and families can be radicalized,” Rohan Gunaratna, a Singapore based terrorism expert, said.
“This means that a catch and kill response alone will not work. The government must engage more with community leaders, schools, religious leaders in addition to expanding counter-terrorism capabilities,” he said. FAMILY SECRETS
Wawan Purwanto, a spokesman for the intelligence agency, said militants were being influenced by tactics in the Middle East, where children and women have been used in attacks.
He said there may also have been a belief that the whole family would enter heaven by carrying out an attack together.
Ansyad Mbai, a former head of Indonesia’s anti-terrorism agency (BNPT), said using a family unit for an attack helped ensure planning was kept secret.
The parents of the families had indoctrinated their children and every Sunday evening made them attend a prayer circle with adults, police said.
Oepriarto’s house is now boarded up and cordoned off with police tape after being searched by bomb squad and forensics teams for two days.
“On the day of the attack, the father and the two male children attended morning prayers at the neighborhood mosque and then came back home briefly. They went out again at around 7 a.m. but I didn’t know where they were going. It turned out to be to the churches,” said the neighbor, Trikusuma.
Still, it appears there were some warning signs.
In the attack on Surabaya’s city police headquarters on Monday, the father who brought his family on motorbikes to blow themselves up had come up on police radar after visiting terror convicts in a nearby jail, according to the community head.
Kukuh Santoso, 47, said that six to eight months ago the father, Tri Murtiono, had visited the convicts in a jail in Porong and after that police had paid a visit to the family.
“Besides that, we had absolutely no idea they were even thinking like this”, said Santoso.
A counter-terrorism source confirmed this account, but declined to elaborate. Additional reporting by Agustinus Beo Da Costa; Writing by Ed Davies; Editing by Nick Macfie | https://www.reuters.com/article/us-indonesia-bomb-families/indonesia-suicide-bomber-mum-chatted-to-neighbors-about-schools-swapped-recipes-idUSKCN1II116 | 916 |
Netflix has the best long-term business model: Chamath Palihapitiya | Streaming giant Netflix has a huge advantage in the original content space due to its strong relationship with consumers, tech venture capitalist Chamath Palihapitiya said Wednesday.
Netflix has shown "that having a direct relationship with your customer — where your customer and your consumer are the same — is probably the best long-term business model," the former Facebook executive said in an interview on CNBC's " Squawk Box ."
Subscribers have a relationship with Netflix "where they understand the data that's being collected," Palihapitiya said.
Netflix, with a market value of nearly $142 billion, has seen its share prices more than double during the past 12 months. Netflix added far more users than expected in the first quarter as it pushed out heavy investments in original content to drive subscriptions.
The company, facing increasing competition from the likes of Amazon and Disney , said it expects to have $7.5 billion to $8 billion in content expenses this year, in line with previous estimates.
Some on Wall Street have expressed concern about Netflix's strategy to splurge heavily on new content.
But Palihapitiya, who served in various management roles at Facebook during his four years there, including vice president of user growth, said he expects that money is being used efficiently to create content in various ways. He said that includes keeping existing subscribers, acquiring new consumers as well as seeding and launching completely new markets entirely.
"When you segregate that out, they all have different values to Netflix," Palihapitiya said. "That's why you end up with numbers that may not seem obvious on the surface. But underneath I bet you there's a strong discipline and science around how they do that capital allocation."
Sign Up for Our Newsletter Morning Squawk CNBC's before the bell news roundup SIGN UP NOW Get this delivered to your inbox, and more info about about our products and service. Privacy Policy . | https://www.cnbc.com/2018/05/09/netflix-has-the-best-long-term-business-model-chamath-palihapitiya.html | 318 |
Resource Capital Corp. Reports Results for Three Months Ended March 31, 2018 and Announces Name Change | NEW YORK, Resource Capital Corp . (NYSE:RSO) ("RSO" or the "Company") reports results for the three months ended March 31, 2018.
Significant Items and Highlights
GAAP net loss allocable to common shares of $(0.40) per share-diluted for the three months ended March 31, 2018.
Core Earnings were $(0.28) per common share-diluted, and were $0.03 per common share-diluted when adjusted for the non-recurring charges relating to the redemption of the Company's 8.25% Series B Cumulative Redeemable Preferred Stock ("Series B Preferred Stock") and the pending settlement of a securities litigation (see Schedule I).
Effective at 5:00 p.m. (EDT) on May 25, 2018, RSO will change its name to "Exantas Capital Corp."
RSO's board of directors anticipates that it will declare a cash dividend of $0.10 per share on its common stock for the second quarter of 2018, which is a 100% increase over the first quarter of 2018 amount.
RSO has monetized $400.6 million of the investments that were included in management's previously communicated strategic plan (the "Plan") (see Schedule III). This includes $13.9 million of assets liquidated during the three months ended March 31, 2018 and $22.7 million of assets liquidated in April and May 2018.
RSO originated $146.3 million of new commercial real estate ("CRE") loans during the three months ended March 31, 2018 (see Schedule IV).
In April 2018, RSO entered into an additional CRE term financing facility, increasing its borrowing capacity to $900.0 million from $650.0 million.
RSO redeemed all of its outstanding 8.50% Series A Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") and Series B Preferred Stock.
Common stock cash dividend of $0.05 per share for the three months ended March 31, 2018.
Book value of $13.92 per common share at March 31, 2018, as compared to $14.46 per common share at December 31, 2017.
Three Months Ended March 31, 2018 Results
GAAP net loss allocable to common shares of $12.6 million, or $(0.40) per share-diluted, for the three months ended March 31, 2018 as compared to GAAP net income allocable to common shares of $2.7 million, or $0.09 per share-diluted, for the three months ended March 31, 2017. GAAP net loss allocable to common shares for the three months ended March 31, 2018 includes a $4.5 million decline in the fair value of an asset held for sale based on independent appraisals.
Core Earnings were $(8.6) million, or $(0.28) per common share-diluted, for the three months ended March 31, 2018, and were $1.0 million, or $0.03 per common share-diluted, when adjusted for the non-recurring charges relating to the redemption of the Company's Series B Preferred Stock and the pending settlement of a securities litigation.
GAAP net loss allocable to common shares and Core Earnings for the three months ended March 31, 2018 include a charge of $7.5 million, or $(0.24) per share-diluted, related to the March 2018 redemption of all remaining outstanding shares of the Company's Series B Preferred Stock. The redemption charge represents the difference between the carrying value and the redemption price of the redeemed Series B Preferred Stock. Core Earnings for the three months ended March 31, 2018 additionally include a charge of $2.2 million, or $(0.07) per common share-diluted, related to the pending settlement of a securities litigation.
Additional Items
Commercial Real Estate
Substantially all of RSO's $1.4 billion CRE loan portfolio comprised floating rate senior whole loans at March 31, 2018.
RSO's CRE floating rate whole loan portfolio had a weighted average spread of 4.65% over the one-month London Interbank Offered Rate ("LIBOR") of 1.88% at March 31, 2018.
The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the three and twelve months ended March 31, 2018 (in millions, except percentages and amounts in footnotes):
Three Months
Ended
March 31, 2018 Twelve Months
Ended
March 31, 2018 New CRE loan commitments $ 127.1 $ 598.5 New CRE preferred equity investment 19.2 19.2 Total CRE loan commitments and investments 146.3 617.7 Payoffs and paydowns (1)(2) (51.5 ) (500.3 ) Previous commitments funded 10.5 35.8 New unfunded loan commitments (13.6 ) (70.1 ) Net CRE loans funded $ 91.7 $ 83.1 Weighted average one-month LIBOR floor on new originations (3) 1.37 % 1.13 % Weighted average spread above one-month LIBOR (3) 3.94 % 4.28 % Weighted average unlevered yield, including amortization of origination fees 5.79 % 5.76 %
(1) CRE loan payoffs and extensions resulted in $370,000 and $1.2 million of exit and extension fees during the three and twelve months ended March 31, 2018, respectively. (2) Activity does not include legacy CRE loans classified as assets held for sale. (3) Applicable to new CRE whole loans funded, excluding one CRE whole loan with an 8.00% fixed interest rate. Commercial Mortgage-Backed Securities
RSO's commercial mortgage-backed securities ("CMBS") portfolio had a carrying value of $250.7 million and a weighted average coupon of 4.36% at March 31, 2018.
The following table summarizes RSO's CMBS activities, at face value, for the three and twelve months ended March 31, 2018 (in millions, except percentages):
Three Months
Ended
March 31, 2018 Twelve Months
Ended
March 31, 2018 CMBS acquisitions $ 44.3 $ 256.2 Sales — (7.4 ) Principal paydowns (3.4 ) (50.5 ) CMBS acquisitions, net $ 40.9 $ 198.3 Weighted average coupon at March 31, 2018 3.88 % 4.14 % Commercial Real Estate Loans Term Facility
In April 2018, RSO entered into a $250.0 million master repurchase agreement with Barclays Bank PLC to finance CRE loan originations. The facility matures in April 2021, subject to certain one-year extension options. This facility increases RSO's financing capacity to $900.0 million from $650.0 million.
Discontinued Operations
Pursuant to the Plan, the assets and liabilities of Primary Capital Mortgage, LLC ("PCM") and RSO's middle market lending segment, NEW NP, LLC, were reclassified to held for sale during the fourth quarter of 2016 and are reported as discontinued operations on the consolidated statements of operations.
In the first quarter of 2018, PCM sold its remaining loans held for sale generating total cash proceeds of $1.9 million. PCM recognized a net loss of $539,000 for the three months ended March 31, 2018.
In the first quarter of 2018, NEW NP, LLC sold its remaining syndicated middle market loans generating total proceeds of $27.6 million, of which $12.7 million had been received in cash as of March 31, 2018 and the balance was received in May 2018.
At March 31, 2018, the one remaining directly originated middle market loan, with a carrying value of $2.0 million, was in default. The middle market portfolio generated net income of $819,000 for the three months ended March 31, 2018, including a $216,000 net realized gain on the syndicated middle market loan sales.
Liquidity
At April 30, 2018, RSO's available liquidity consisted of three primary sources:
• unrestricted cash and cash equivalents of $67.1 million;
• approximately $87.0 million of available liquidity from the financing of unlevered CRE and CMBS positions; and
• $396.2 million available under three term financing facilities to finance CRE loans.
Common Stock Book Value and Total Stockholders' Equity
The following table reconciles RSO's common stock book value from December 31, 2017 to March 31, 2018 (in thousands, except per share data and amounts in footnotes):
Total Amount Per Share
Amount Common stock book value at December 31, 2017 (1) $ 447,634 $ 14.46 Net loss allocable to common shares (12,582 ) (0.40 ) Change in other comprehensive income: Available-for-sale securities (1,292 ) (0.04 ) Derivatives 1,149 0.03 Common stock dividends (1,560 ) (0.05 ) Common stock dividends on unvested shares (23 ) — Accretion (dilution) from additional shares outstanding at March 31, 2018 (2) 898 (0.08 ) Total net decrease (13,410 ) (0.54 ) Common stock book value at March 31, 2018 (1)(3) $ 434,224 $ 13.92
(1) Per share calculations exclude unvested restricted stock, as disclosed on the consolidated balance sheets, of 465,808 and 483,073 shares at March 31, 2018 and December 31, 2017, respectively. The denominators for the calculations are 31,184,609 and 30,946,819 at March 31, 2018 and December 31, 2017, respectively. (2) Per share amount calculation includes the impact of 237,790 additional shares. (3) Common stock book value is calculated as total stockholders' equity of $550.2 million less preferred stock equity of $116.0 million at March 31, 2018. Common stock book value includes $13.4 million of unamortized discount resulting from the value of the conversion option on RSO's convertible senior notes. The convertible senior notes' discounts will be amortized into interest expense over the remaining life of each note issuance. At March 31, 2018, common stock book value excluding this item would have been $420.9 million, or $13.50 per common share.
Total stockholders' equity at March 31, 2018, which measures equity before accounting for non-controlling interests, was $550.2 million, of which $116.0 million was attributable to preferred stock. Total stockholders' equity at December 31, 2017 was $671.5 million, of which $223.8 million was attributable to preferred stock.
Preferred Stock Redemptions
In the first quarter of 2018, RSO redeemed all of its outstanding Series A Preferred Stock and Series B Preferred Stock for $166.8 million. These redemptions eliminated approximately $13.7 million of preferred stock dividends on an annual basis, or $0.44 per common share.
Corporate Name Change
Effective at 5:00 p.m. (EDT) on May 25, 2018, RSO will change its name to "Exantas Capital Corp." The Company's common stock and 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock ("preferred stock") will continue to be listed on the NYSE, and the Company anticipates that on May 29, 2018 its common stock will begin trading under the symbol "XAN" and its preferred stock will begin trading under the symbol "XAN PrC." The new CUSIP number for the Company's common stock following the name change will be 30068N105, and the new CUSIP number for its preferred stock will be 30068N402.
Investment Portfolio
The following table summarizes the amortized cost and net carrying amount of RSO's investment portfolio at March 31, 2018, classified by asset type (in thousands, except percentages and amounts in footnotes):
At March 31, 2018 Amortized
Cost Net Carrying
Amount Percent of
Portfolio Weighted
Average
Coupon Core Assets: CRE whole loans (1)(2) $ 1,362,520 $ 1,357,991 80.23 % 6.34 % CRE preferred equity investment (2) 19,008 19,008 1.12 % 11.50 % CMBS (3) 251,343 250,746 14.81 % 4.36 % Total Core Assets 1,632,871 1,627,745 96.16 % Non-Core Assets: Structured notes (4) 1,218 164 0.01 % N/A (10) Investments in unconsolidated entities (5) 4,891 4,891 0.29 % N/A (10) Direct financing leases (6) 824 89 0.01 % 5.66 % Legacy CRE loans held for sale (7)(8) 63,882 57,341 3.39 % 1.71 % Middle market loan held for sale (7)(9) 13,837 1,978 0.12 % — % Life settlement contracts (7) 177 177 0.01 % N/A (10) Property available-for-sale (7) 117 117 0.01 % N/A (10) Total Non-Core Assets 84,946 64,757 3.84 % Total investment portfolio $ 1,717,817 $ 1,692,502 100.00 % (1) Net carrying amount includes an allowance for loan losses of $4.5 million at March 31, 2018.
(2) Classified as CRE loans on the consolidated balance sheets.
(3) Classified as investment securities available-for-sale on the consolidated balance sheets.
(4) Classified as investment securities, trading on the consolidated balance sheets.
(5) Classified as investments in unconsolidated entities on the consolidated balance sheets.
(6) Net carrying amount includes an allowance for lease losses of $735,000 at March 31, 2018.
(7) Classified as assets held for sale on the consolidated balance sheets.
(8) Net carrying amount includes a lower of cost or market value adjustment of $6.5 million at March 31, 2018.
(9) Net carrying amount includes the lower of cost or market value adjustment of $11.9 million at March 31, 2018.
(10) There are no stated rates associated with these investments.
Supplemental Information
The following schedules of reconciliations and supplemental information at March 31, 2018 are included at the end of this release:
Schedule I - Reconciliation of GAAP Net Income (Loss) to Core Earnings;
Schedule II - Summary of Securitization Performance Statistics;
Schedule III - Strategic Plan Update;
Schedule IV - CRE Loan Activities; and
Schedule V - Supplemental Information.
About Resource Capital Corp.
Resource Capital Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and commercial real estate-related debt investments.
The Company is externally managed by Resource Capital Manager, Inc. (the "Manager"), which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC, a leading commercial real estate investment management and services company engaged in a broad range of activities.
For more information, please visit RSO's website at www.resourcecapitalcorp.com or contact investor relations at IR@resourcecapitalcorp.com .
Safe Harbor Statement
Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. RSO's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:
fluctuations in interest rates and related hedging activities;
the availability of debt and equity capital to acquire and finance investments;
defaults or bankruptcies by borrowers on RSO's loans or on loans underlying its investments;
adverse market trends that have affected and may continue to affect the value of real estate and other assets underlying RSO's investments;
increases in financing or administrative costs; and
general business and economic conditions that have impaired and may continue to impair the credit quality of borrowers and RSO's ability to originate loans.
For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RSO is subject, see Item 1A, "Risk Factors," included in its Annual Report on Form 10-K for the year ended December 31, 2017 and the risks expressed in its other public filings with the Securities and Exchange Commission.
RSO cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RSO or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RSO undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Furthermore, certain non-GAAP financial measures are discussed in this release. RSO's presentation of this information is not intended to be considered in isolation of or as a substitute for the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP are set forth in Schedule I of this release and can be accessed through RSO's filings with the SEC at www.sec.gov .
The remainder of this release contains RSO's unaudited (2018) and audited (2017) consolidated balance sheets, unaudited consolidated statements of operations, a reconciliation of GAAP net income (loss) to Core Earnings, a summary of securitization performance statistics, an update on RSO's strategic plan, a summary of RSO's CRE loan activities and supplemental information regarding RSO's CRE loan portfolio and loans held for sale.
RESOURCE CAPITAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) March 31,
2018 December 31,
2017 (unaudited) ASSETS (1) Cash and cash equivalents $ 61,500 $ 181,490 Restricted cash 546 22,874 Accrued interest receivable 6,945 6,859 CRE loans, net of allowances of $4,529 and $5,328 1,376,999 1,284,822 Investment securities available-for-sale 250,746 211,737 Investment securities, trading 164 178 Loans held for sale — 13 Principal paydowns receivable 20 76,129 Investments in unconsolidated entities 6,439 12,051 Derivatives, at fair value 1,751 602 Direct financing leases, net of allowances of $735 and $735 89 151 Other assets 6,981 7,451 Assets held for sale (amounts include $57,341 and $61,841 of legacy CRE loans held for sale in
continuing operations) 77,621 107,718 Total assets $ 1,789,801 $ 1,912,075 LIABILITIES (2) Accounts payable and other liabilities $ 6,654 $ 5,153 Management fee payable 938 1,035 Accrued interest payable 3,244 4,387 Borrowings 1,222,386 1,163,485 Distributions payable 3,308 5,581 Preferred stock redemption liability — 50,000 Derivatives, at fair value — 76 Accrued tax liability 209 540 Liabilities held for sale 2,883 10,342 Total liabilities 1,239,622 1,240,599 STOCKHOLDERS' EQUITY Preferred stock, par value $0.001: 10,000,000 shares authorized 8.25% Series B Cumulative
Redeemable Preferred Stock, liquidation preference $25.00 per share; 0 and 4,613,596 shares
issued and outstanding — 5 Preferred stock, par value $0.001: 10,000,000 shares authorized 8.625% Fixed-to-Floating
Series C Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share;
4,800,000 and 4,800,000 shares issued and outstanding 5 5 Common stock, par value $0.001: 125,000,000 shares authorized; 31,650,417 and 31,429,892
shares issued and outstanding (including 465,808 and 483,073 unvested restricted shares) 32 31 Additional paid-in capital 1,080,927 1,187,911 Accumulated other comprehensive income 1,154 1,297 Distributions in excess of earnings (531,939 ) (517,773 ) Total stockholders' equity 550,179 671,476 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,789,801 $ 1,912,075
RESOURCE CAPITAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - (Continued) (in thousands, except share and per share data) March 31,
2018 December 31,
2017 (unaudited) (1) Assets of consolidated variable interest entities ("VIEs") included in total assets above: Restricted cash $ 513 $ 20,846 Accrued interest receivable 2,728 3,347 CRE loans, pledged as collateral and net of allowances of $844 and $1,330 571,640 603,110 Loans held for sale — 13 Principal paydowns receivable 20 72,207 Other assets 188 73 Total assets of consolidated VIEs $ 575,089 $ 699,596 (2) Liabilities of consolidated VIEs included in total liabilities above: Accounts payable and other liabilities $ 65 $ 96 Accrued interest payable 412 592 Borrowings 298,970 416,655 Total liabilities of consolidated VIEs $ 299,447 $ 417,343
RESOURCE CAPITAL CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) For the Three Months Ended March 31, 2018 2017 (unaudited) (unaudited) REVENUES Interest income: CRE loans $ 22,383 $ 21,533 Securities 3,456 2,308 Other 118 1,630 Total interest income 25,957 25,471 Interest expense 14,384 14,254 Net interest income 11,573 11,217 Other (expense) revenue (95 ) 928 Total revenues 11,478 12,145 OPERATING EXPENSES Management fees 2,813 2,680 Equity compensation 967 788 General and administrative 3,060 3,863 Depreciation and amortization 13 68 Impairment losses — 177 (Recovery of) provision for loan and lease losses, net (799 ) 999 Total operating expenses 6,054 8,575 5,424 3,570 OTHER INCOME (EXPENSE) Equity in (losses) earnings of unconsolidated entities (292 ) 361 Net realized and unrealized (loss) gain on investment securities available-for-sale and loans and derivatives (642 ) 7,606 Net realized and unrealized loss on investment securities, trading (5 ) (911 ) Fair value adjustments on financial assets held for sale (4,665 ) (21 ) Other income 11 68 Total other (expense) income (5,593 ) 7,103 (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE TAXES (169 ) 10,673 Income tax benefit (expense) 32 (1,499 ) NET (LOSS) INCOME FROM CONTINUING OPERATIONS (137 ) 9,174 NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX 247 (561 ) NET INCOME 110 8,613 Net income allocated to preferred shares (5,210 ) (6,014 ) Consideration paid in excess of carrying value of preferred shares (7,482 ) — Net loss allocable to non-controlling interest, net of taxes — 101 NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES $ (12,582 ) $ 2,700 NET (LOSS) INCOME PER COMMON SHARE - BASIC: CONTINUING OPERATIONS $ (0.41 ) $ 0.11 DISCONTINUED OPERATIONS $ 0.01 $ (0.02 ) TOTAL NET (LOSS) INCOME PER COMMON SHARE - BASIC $ (0.40 ) $ 0.09 NET (LOSS) INCOME PER COMMON SHARE - DILUTED: CONTINUING OPERATIONS $ (0.41 ) $ 0.11 DISCONTINUED OPERATIONS $ 0.01 $ (0.02 ) TOTAL NET (LOSS) INCOME PER COMMON SHARE - DILUTED $ (0.40 ) $ 0.09 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 31,111,315 30,752,006 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 31,111,315 30,914,148 SCHEDULE I
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO CORE EARNINGS
(unaudited)
RSO uses Core Earnings as a non-GAAP financial measure to evaluate its operating performance. RSO previously used Adjusted Funds from Operations as a non-GAAP measure of operating performance.
Core Earnings exclude the effects of certain transactions and GAAP adjustments that RSO believes are not indicative of its current CRE loan portfolio and other CRE-related investments and operations. Core Earnings exclude income (loss) from all non-core assets, such as commercial finance, middle market lending, residential mortgage lending, certain legacy CRE loans and other non-CRE assets designated as assets held for sale at the initial measurement date. (1)
Core Earnings, for reporting purposes, is defined as GAAP net income (loss) allocable to common shareholders, excluding (i) non-cash equity compensation expense, (ii) unrealized gains and losses, (iii) non-cash provisions for loan losses, (iv) non-cash impairments on securities, (v) non-cash amortization of discounts or premiums associated with borrowings, (vi) net income or loss from a limited partnership interest owned at the initial measurement date, (vii) net income or loss from non-core assets, (2)(3) (viii) real estate depreciation and amortization, (ix) foreign currency gains or losses and (x) income or loss from discontinued operations. Core Earnings may also be adjusted periodically to exclude certain one-time events pursuant to changes in GAAP and certain non-cash items.
Although pursuant to the Third Amended and Restated Management Agreement RSO calculates incentive compensation using Core Earnings excluding incentive fees payable to the Manager, beginning with the three months and year ended December 31, 2017 RSO includes incentive fees payable to the Manager in Core Earnings for reporting purposes.
Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to GAAP net income or as a measure of liquidity under GAAP. RSO's methodology for calculating Core Earnings may differ from methodologies used by other companies to calculate similar supplemental performance measures, and, accordingly, its reported Core Earnings may not be comparable to similar performance measures used by other companies.
The following table provides a reconciliation from GAAP net (loss) income allocable to common shares to Core Earnings allocable to common shares for the periods presented (in thousands, except per share data): For the Three
Months Ended
March 31, 2018 2017 Net (loss) income allocable to common shares - GAAP $ (12,582 ) $ 2,700 Adjustment for realized gain on CRE assets — — Net (loss) income allocable to common shares - GAAP, adjusted (12,582 ) 2,700 Reconciling items from continuing operations: Non-cash equity compensation expense 967 788 Non-cash (recovery of) provision for CRE loan losses (799 ) 860 Realized loss on core activities (4) (2,167 ) — Non-cash amortization of discounts or premiums associated with borrowings 778 414 Net income from limited partnership interest owned at the initial measurement date (1) — (358 ) Income tax (benefit) expense from non-core investments (2)(3) (32 ) 1,499 Net realized loss on non-core assets (2)(3) 215 — Net loss (income) from non-core assets (3) 397 (1,429 ) Reconciling items from discontinued operations and CRE assets: Net interest income on legacy CRE loans held for sale (322 ) (1,324 ) Realized gain on liquidation of CRE loans — (6,954 ) Fair value adjustments on legacy CRE loans held for sale 4,672 — Net loss (income) from other non-CRE investments held for sale 478 (25 ) (Income) loss from discontinued operations, net of taxes (247 ) 561 Core Earnings allocable to common shares (5) (8,642 ) (3,268 ) Reconciling items for nonrecurring activities: Loss on redemption of Series B Preferred Stock 7,482 — Realized loss on core activities 2,167 — Core Earnings allocable to common shares, adjusted $ 1,007 $ (3,268 ) Weighted average common shares - diluted 31,111 30,752 Core Earnings per common share - diluted (5) $ (0.28 ) $ (0.11 ) Core Earnings per common share, adjusted - diluted $ 0.03 $ (0.11 )
(1) Initial measurement date is December 31, 2016. (2) Income tax expense from non-core investments and net realized gain on non-core assets are components of net income or loss from non-core assets. (3) Non-core assets are investments and securities owned by RSO at the initial measurement date in (i) commercial finance, (ii) middle market lending, (iii) residential mortgage lending, (iv) legacy CRE loans designated as held for sale and (v) other non-CRE assets included in assets held for sale. (4) Payment of pending settlement of a securities litigation, previously accrued in 2017. (5) Core Earnings include a non-recurring charge of $7.5 million, or $(0.24) per common share-diluted, for the three months ended March 31, 2018 in connection with the redemption of the remaining Series B Preferred Stock. RSO has five operating segments: commercial real estate debt investments; commercial finance; middle market lending; residential mortgage lending; and corporate & other. The commercial real estate debt investments operating segment includes our activities and operations related to commercial real estate loans and commercial real estate-related securities. The commercial finance operating segment includes the activities and operations related to syndicated corporate loans, syndicated corporate loan-related securities and direct financing leases. The middle market lending operating segment includes the activities and operations related to the origination and purchase of middle market corporate loans. The residential mortgage lending operating segment includes the activities and operations related to originating and servicing residential mortgage loans and investments in residential mortgage-backed securities. The corporate & other segment includes corporate level interest income, interest expense, inter-segment eliminations not allocable to any particular operating segment and general and administrative expense.
As part of the plan to exit non-CRE businesses, the entire middle market lending and substantially all of the residential mortgage lending segments are reported as discontinued operations. The following table presents a reconciliation of GAAP net income (loss) allocable to common shares to Core Earnings allocable to common shares for the three months ended March 31, 2018 presented by operating segment (in thousands, except per share data):
Commercial
Real Estate
Debt
Investments Corporate
& Other Core
Subtotal Commercial
Finance Middle
Market
Lending Residential
Mortgage
Lending Total Net income (loss) allocable to common shares - GAAP $ 12,302 $ (24,366 ) $ (12,064 ) $ (470 ) $ 819 $ (867 ) $ (12,582 ) Reconciling items from continuing operations: Non-cash equity compensation expense — 967 967 — — — 967 Non-cash recovery of CRE loan losses (799 ) — (799 ) — — — (799 ) Realized loss on core activities (4) — (2,167 ) (2,167 ) — — — (2,167 ) Non-cash amortization of discounts or premiums associated with borrowings — 778 778 — — — 778 Income tax benefit from non-core investments (2)(3) — — — (32 ) — — (32 ) Net realized loss on non-core assets (2)(3) — — — 215 — — 215 Net loss from non-core assets (3) — — — 286 — 111 397 Reclassification of allocated expenses to non-CRE activities — (185 ) (185 ) 1 — 184 — Reconciling items from discontinued operations and CRE assets: Net interest income on legacy CRE loans held for sale (322 ) — (322 ) — — — (322 ) Fair value adjustments on legacy CRE loans held for sale 4,672 — 4,672 — — — 4,672 Net loss from other non-CRE investments held for sale — 478 478 — — — 478 (Income) loss from discontinued operations, net of taxes — — — — (819 ) 572 (247 ) Core Earnings allocable to common shares (5) 15,853 (24,495 ) (8,642 ) — — — (8,642 ) Reconciling items for nonrecurring activities: Loss on redemption of Series B Preferred Stock — 7,482 7,482 — — — 7,482 Realized loss on core activities — 2,167 2,167 — — — 2,167 Core Earnings allocable to common shares, adjusted $ 15,853 $ (14,846 ) $ 1,007 $ — $ — $ — $ 1,007 Weighted average common shares - diluted 31,111 31,111 31,111 31,111 31,111 31,111 31,111 Core Earnings per common share - diluted (5) $ 0.51 $ (0.79 ) $ (0.28 ) $ — $ — $ — $ (0.28 ) Core Earnings per common share, adjusted - diluted $ 0.51 $ (0.48 ) $ 0.03 $ — $ — $ — $ 0.03
(1) Initial measurement date is December 31, 2016. (2) Income tax expense from non-core investments and net realized gain on non-core assets are components of net income or loss from non-core assets. (3) Non-core assets are investments and securities owned by RSO at the initial measurement date in (i) commercial finance, (ii) middle market lending, (iii) residential mortgage lending, (iv) legacy CRE loans designated as held for sale and (v) other non-CRE assets included in assets held for sale. (4) Payment of pending settlement of a securities litigation, previously accrued in 2017. (5) Core Earnings include a non-recurring charge of $7.5 million, or $(0.24) per common share-diluted, for the three months ended March 31, 2018 in connection with the redemption of the remaining Series B Preferred Stock.
SCHEDULE II
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUMMARY OF SECURITIZATION PERFORMANCE STATISTICS
(unaudited)
Distributions, Coverage Tests and Liquidations
The following table sets forth the distributions made by and coverage test summaries for RSO's active securitizations for the periods presented (in thousands):
Name Cash Distributions Overcollateralization Cushion (1) End of Designated
Principal
Reinvestment
Period For the Three
Months Ended
March 31, 2018 For the Year
Ended December
31, 2017 At March 31, 2018 At the Initial
Measurement Date RCC 2015-CRE3 (2) $ 1,428 $ 8,672 $ 61,469 $ 20,313 February 2017 RCC 2015-CRE4 (2) $ 1,887 $ 8,554 $ 72,184 $ 9,397 September 2017 RCC 2017-CRE5 (2) $ 10,601 $ 6,643 $ 19,655 $ 20,727 July 2020 Apidos Cinco CDO (3) $ — $ 2,056 N/A $ 17,774 N/A
(1) Overcollateralization cushion represents the amount by which the collateral held by the securitization issuer exceeds the maximum amount required. (2) The designated principal reinvestment period for Resource Capital Corp. 2015-CRE3, Resource Capital Corp. 2015-CRE4 and Resource Capital Corp. 2017-CRE5 is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. Additionally, the indenture for each securitization does not contain any interest coverage test provisions. (3) Apidos Cinco CDO was substantially liquidated in November 2016. The following table sets forth the distributions made by and liquidation details for RSO's liquidated securitizations for the periods presented (in thousands):
Name Cash Distributions Liquidation Details For the Three
Months Ended
March 31, 2018 For the Year
Ended December
31, 2017 Liquidation Date Remaining Assets at
the Liquidation
Date (1) RCC 2014-CRE2 (2) $ — $ 33,050 August 2017 $ 92,980
(1) The remaining assets at the liquidation date were measured at fair value and returned to RSO in exchange for its preference share and equity notes in the securitization. (2) Cash distributions for the year ended December 31, 2017 include preference share and equity notes distributions at liquidation of $25.6 million for Resource Capital Corp. 2014-CRE2.
SCHEDULE III
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
STRATEGIC PLAN UPDATE
(unaudited)
In November 2016, RSO's board of directors approved the Plan, pursuant to which RSO is primarily focused on making CRE debt investments. The Plan includes disposing of certain non-core businesses and investments and underperforming legacy CRE loans ("Identified Assets"), as well as maintaining a dividend policy based on sustainable earnings. As part of the Plan, certain Identified Assets were reclassified as discontinued operations and/or assets held for sale during the fourth quarter of 2016. The following table delineates these disposable investments by business segment and details the current net book value of the businesses and investments included in the Plan (in millions, except amounts in footnotes):
Identified
Assets at
Plan Inception Impairments/
Adjustments
on Non-
Monetized
Assets (1)(2) Impairments/
Adjustments
on Monetized
Assets (1) Monetized
through
March 31,
2018 (3)
Net Book
Value at
March 31,
2018 (3) Discontinued operations and assets held for sale: Legacy CRE loans (4) $ 194.7 $ (18.3 ) $ (11.7 ) $ (107.4 ) $ 57.3 Middle market loans 73.8 (17.0 ) (0.8 ) (54.0 ) 2.0 Residential mortgage lending segment (5) 56.6 (1.7 ) (9.6 ) (43.7 ) 1.6 Other assets held for sale 5.9 — 3.9 (8.9 ) 0.9 Subtotal - discontinued operations and assets held for sale $ 331.0 $ (37.0 ) $ (18.2 ) $ (214.0 ) $ 61.8 Investments in unconsolidated entities 86.6 — 38.3 (124.3 ) 0.6 Commercial finance assets 62.5 — — (62.3 ) 0.2 Total $ 480.1 $ (37.0 ) $ 20.1 $ (400.6 ) $ 62.6
(1) Reflects adjustments as a result of the designation as assets held for sale or discontinued operations, which occurred during the third and fourth quarters of 2016 except as noted in (2) below. (2) The impairment adjustment to middle market loans includes $5.4 million of fair value adjustments that occurred prior to the inception of the Plan. (3) Residential mortgage lending segment and investments in unconsolidated entities include pro forma adjustments of $3.6 million and $4.3 million, respectively, for proceeds received in April 2018. Middle market loans include pro forma adjustments of $14.8 million for proceeds received in May 2018. (4) Legacy CRE loans includes $118.2 million par value of loans at the inception of the Plan that were not reflected on the consolidated balance sheets until RSO's investment in Resource Real Estate Funding CDO 2007-1 was liquidated in November 2016. (5) Includes $1.9 million of cash and cash equivalents not classified as assets held for sale in the residential mortgage lending segment at March 31, 2018.
SCHEDULE IV
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CRE LOAN ACTIVITIES
(unaudited)
The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the periods then ended (in millions):
For the Three Months Ended
March 31,
2018 December 31,
2017 September 30,
2017 June 30,
2017 March 31,
2017 December 31,
2016 September 30,
2016 June 30,
2016 New CRE loan commitments $ 127.1 $ 229.0 $ 157.7 $ 84.7 $ 128.9 $ 50.6 $ 86.5 $ 10.5 New CRE preferred equity
investment 19.2 — — — — — — — Total CRE loan commitments and
investments 146.3 229.0 157.7 84.7 128.9 50.6 86.5 10.5 Payoffs and paydowns (1) (51.5 ) (185.7 ) (129.5 ) (133.6 ) (110.7 ) (69.1 ) (155.9 ) (107.2 ) Previous commitments funded 10.5 4.0 8.0 13.3 6.3 12.9 15.4 21.7 New unfunded loan commitments (13.6 ) (24.6 ) (23.0 ) (8.9 ) (14.9 ) (3.5 ) (6.7 ) (3.3 ) Net CRE loans funded $ 91.7 $ 22.7 $ 13.2 $ (44.5 ) $ 9.6 $ (9.1 ) $ (60.7 ) $ (78.3 ) (1) Activity does not include legacy CRE loans classified as assets held for sale.
SCHEDULE V
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
Loan Investment Statistics
The following table presents information on RSO's allowances for loan losses and its loans held for sale portfolio at the dates indicated (amounts in thousands, percentages based on amortized cost):
March 31,
2018 December 31,
2017 (unaudited) Allowance for loan losses: Specific allowance: CRE whole loans $ 2,500 $ 2,500 Total specific allowance 2,500 2,500 General allowance: CRE whole loans 2,029 2,828 Total general allowance 2,029 2,828 Total allowance for loans $ 4,529 $ 5,328 Allowance as a percentage of total loans 0.3 % 0.4 % Loans held for sale: Syndicated corporate loans (1) $ — $ 13 Total loans held for sale $ — $ 13 (1) The fair value option was elected for syndicated corporate loans held for sale.
The following table presents unaudited CRE loan portfolio statistics at March 31, 2018, excluding legacy CRE loans classified as assets held for sale (percentages based on carrying value at March 31, 2018): Loan type: Whole loans 98.6 % Preferred equity investment 1.4 % Total 100.0 % Collateral type: Multifamily 48.6 % Office 20.2 % Retail 18.3 % Hotel 8.6 % Manufactured Housing 2.0 % Industrial 1.4 % Self-Storage 0.9 % Total 100.0 % Collateral by NCREIF U.S. region: Southwest (1) 28.3 % Pacific (2) 24.5 % Mountain (3) 12.7 % Southeast (4) 10.8 % Northeast (5) 9.0 % Mid Atlantic (6) 8.8 % East North Central 5.1 % West North Central 0.8 % Total 100.0 %
(1) CRE loans in Texas represent 26.2% of the total loan portfolio. (2) CRE loans in Southern and Northern California represent 14.3% and 7.8%, respectively, of the total loan portfolio. (3) CRE loans in Arizona represent 5.4% of the total loan portfolio. (4) CRE loans in Florida represent 8.1% of the total loan portfolio. (5) CRE loans in Pennsylvania represent 5.2% of the total loan portfolio. (6) CRE loans in North Carolina represent 5.8% of the total loan portfolio.
CONTACT:
DAVID J. BRYANT
CHIEF FINANCIAL OFFICER
RESOURCE CAPITAL CORP.
717 Fifth Avenue
New York, NY 10022
212-621-3210
Source:Resource Capital Corp. | http://www.cnbc.com/2018/05/03/globe-newswire-resource-capital-corp-reports-results-for-three-months-ended-march-31-2018-and-announces-name-change.html | 6,404 |
Garmin reports record first quarter revenue and double-digit earnings growth | SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)-- Garmin Ltd. (Nasdaq: GRMN) today announced results ended March 31, 2018.
Highlights 2018 include:
Total revenue of $711 million, growing 11% over the prior year, with outdoor, fitness, aviation, and marine collectively growing 18% over the prior year quarter and contributing 80% of total revenue Gross margin improved to 60.0% compared to 58.1% in the prior year quarter Operating margin improved to 20.0% compared to 18.2% in the prior year quarter Operating income grew 22% GAAP and pro forma EPS (1) was $0.68 Launched the G500H TXi, a new generation of touchscreen flight decks for helicopters Began shipping the Forerunner® 645M, our first GPS running watch with integrated music and Garmin Pay contactless payments Recently held our second annual Connect IQ™ Summit hosting developers from around the world
(in thousands, 13-Weeks Ended except per share data) March 31, April 1, Yr over Yr 2018 2017 Change Net sales $ 710,872 $ 641,510 11% Outdoor 144,258 115,875 24% Fitness 166,035 137,831 20% Aviation 145,713 122,871 19% Marine 113,554 104,445 9% Auto 141,312 160,488 -12% Gross margin % 60.0% 58.1% Operating income % 20.0% 18.2% GAAP diluted EPS $ 0.68 $ 1.26 -46% Pro forma diluted EPS (1) $ 0.68 $ 0.52 31% (1) See attached table for reconciliation of non-GAAP measures including pro forma diluted EPS Executive Overview from Cliff Pemble, President and Chief Executive Officer:
“We achieved record first quarter revenue with double digit consolidated growth led by strong growth in our outdoor, fitness, aviation and marine segments,” said Cliff Pemble, president and chief executive officer of Garmin Ltd. “Both the outdoor and fitness segments delivered solid, double digit revenue growth, and we remain confident in our wearable product offerings. We are pleased with our first quarter results and look forward to launching new, compelling products throughout the remainder of the year.”
Outdoor:
During the first quarter of 2018, the outdoor segment grew 24% with significant contributions from our fēnix® adventure line of wearables. Gross margin improved to 65% while operating margin remained strong at 30%, resulting in operating income growth of 27%. We introduced the tactix® Charlie, a tactical themed GPS wearable, and began shipping the Descent™ dive watch, bringing an attractive design to underwater adventurers. Looking forward, we remain focused on opportunities in wearables and other product categories within the outdoor market.
Fitness:
During the first quarter of 2018, the fitness segment posted revenue growth of 20% primarily driven by our advanced wearables. Gross and operating margins increased year-over-year to 58% and 20%, respectively, resulting in an operating income growth of 81%. During the first quarter, we started shipping our first GPS running watch with integrated music and Garmin Pay contactless payments. We recently introduced the Edge® 130, a compact GPS cycling computer, the Edge 520 Plus, an advanced cycling computer, and the Varia™ RTL510 rearview radar. Both computers allow cyclists to plan and download their route in advance and brings connectivity to riders. The updated Varia radar enhances the safety features from the first generation and the new design easily mounts to most road-use bikes. Even though the market for basic activity trackers has continued to rapidly mature, we continue to see opportunities for advanced wearables within the fitness segment.
Aviation:
The aviation segment posted solid first quarter revenue growth of 19%. Gross and operating margins were strong at 75% and 33%, respectively, resulting in operating income growth of 25%. During the quarter, we started delivering the G500/600 TXi flight decks including the G500H TXi helicopter variant. We continue to invest in upcoming certifications with our OEM partners, and ongoing aftermarket opportunities.
Marine:
The marine segment posted revenue growth of 9% driven by our recent Navionics® acquisition. Gross margin increased year-over-year to 59%, while operating margin declined to 12%. During the first quarter of 2018, we introduced the GCV 20 ultra-high definition scanning sonar that delivers higher resolution imaging at greater depths. Additionally, we were selected as the exclusive marine electronics supplier to the Independent Boat Builders, Inc., the industry’s largest purchasing cooperative network of leading boat brands. We remain focused on innovations and achieving market share gains within the inland fishing category.
Auto:
The auto segment recorded a revenue decline of 12% in the first quarter of 2018, primarily due to the ongoing PND market contraction somewhat offset by growth in certain niche product lines. Gross and operating margins were 43% and 2%, respectively. During the quarter, we announced a new generation dēzl™ 780, with built in Wi-Fi® and dash cam capabilities bringing advanced safety features and alerts to the trucking industry. Looking forward, we are focused on disciplined execution to bring desired innovation to the market and to optimize profitability in this segment.
Additional Financial Information:
Total operating expenses in the quarter were $284 million, an 11% increase from the prior year. Research and development increased 16% driven by the incremental costs associated with acquisitions, investments in the outdoor and fitness segments for the development of advanced wearable products and continued innovation in the aviation segment. Selling, general and administrative expenses increased 15% driven primarily by personnel related expenses and incremental costs associated with acquisitions. Advertising expenses decreased 20% year over year primarily due to reduced media spending and lower cooperative advertising.
The effective tax rate in the first quarter of 2018 was 16.0% compared to the pro forma effective tax rate of 21.2% (see attached table for reconciliation of this non-GAAP measure) in the prior year quarter. The decrease in the effective tax rate is primarily due to the benefits from the U.S. tax reform and the impact of the release of reserves.
In the first quarter of 2018, we generated $188 million of free cash flow (see attached table for reconciliation of this non-GAAP measure). We continued to return cash to shareholders with our quarterly dividend of approximately $96 million. We ended the quarter with cash and marketable securities of approximately $2.4 billion.
As announced in February 2018, the Board will recommend to the shareholders for approval at the annual meeting to be held on June 8, 2018 a cash dividend in the total amount of $2.12 per share (subject to adjustment in the event that the Swiss Franc weakens more than 35% relative to the USD), payable in four equal installments on dates to be approved by the Board.
2018 Guidance:
We are maintaining our 2018 guidance for revenue of approximately $3.2 billion and pro forma EPS of $3.05 (see attachment for reconciliation of this non-GAAP measure).
Revenue Standard Adoption
We adopted the new revenue standard in the first quarter of 2018. The prior periods presented here have been restated to reflect adoption of this new standard. See Appendix A for further discussion of the new revenue standard.
Webcast Information/Forward-Looking Statements:
The information for Garmin Ltd.’s earnings call is as follows:
When: Wednesday, May 2, 2018 at 10:30 a.m. Eastern Where: http://www.garmin.com/en-US/company/investors/events/
How: Simply log on to the web at the address above or call to listen in at 855-757-3897 An archive of the live webcast will be available until May 1, 2019 on the Garmin website at www.garmin.com . To access the replay, click on the Investor Relations link and click over to the Events Calendar page.
This release includes projections and other regarding Garmin Ltd. and its business that are commonly identified by words such as “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, currency movements, expenses, pricing, new products to be introduced in 2018, statements relating to possible future dividends and the Company’s plans and objectives are . The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the K for the year ended December 31, 2017 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2017 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html .
Non-GAAP Financial Measures
This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.
Garmin, the Garmin logo, the Garmin delta, fēnix, Edge, Forerunner, and tactix, are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S.; Connect IQ, Descent, dēzl and Varia are trademarks of Garmin Ltd. or its subsidiaries. Wi-Fi is a registered trademark of the Wi-Fi Alliance. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.
Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share information) 13-Weeks Ended March 31, April 1, 2018 2017 Net sales $ 710,872 $ 641,510 Cost of goods sold 284,337 268,704 Gross profit 426,535 372,806 Advertising expense 25,311 31,525 Selling, general and administrative expense 117,065 102,051 Research and development expense 141,957 122,202 Total operating expense 284,333 255,778 Operating income 142,202 117,028 Other income (expense): Interest income 10,227 8,444 Foreign currency gains (losses) 816 (37,497 ) Other income 735 400 Total other income (expense) 11,778 (28,653 ) Income before income taxes 153,980 88,375 Income tax provision (benefit) 24,606 (150,029 ) Net income $ 129,374 $ 238,404 Net income per share: Basic $ 0.69 $ 1.27 Diluted $ 0.68 $ 1.26 Weighted average common shares outstanding: Basic 188,322 188,333 Diluted 189,292 189,031 Garmin Ltd. And Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except per share information) March 31, December 30, 2018 2017 Assets Current assets: $ 898,981 $ 891,488 Marketable securities 167,745 161,687 Accounts receivable, net 409,704 590,882 Inventories, net 547,412 517,644 Deferred costs 29,327 30,525 Prepaid expenses and other current assets 138,114 153,912 Total current assets 2,191,283 2,346,138 Property and equipment, net 604,813 595,684 Restricted cash 279 271 Marketable securities 1,309,185 1,260,033 Deferred income taxes 199,090 195,981 Noncurrent deferred costs 32,428 33,029 Intangible assets, net 421,006 409,801 Other assets 97,138 107,352 Total assets $ 4,855,222 $ 4,948,289 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 136,132 $ 169,640 Salaries and benefits payable 90,137 102,802 Accrued warranty costs 35,422 36,827 Accrued sales program costs 56,266 93,250 Deferred revenue 98,660 103,140 Accrued royalty costs 17,445 32,204 Accrued advertising expense 16,007 30,987 Other accrued expenses 69,949 93,652 Income taxes payable 37,825 33,638 Dividend payable - 95,975 Total current liabilities 557,843 792,115 Deferred income taxes 74,714 76,612 Noncurrent income taxes 140,368 138,295 Noncurrent deferred revenue 83,222 87,060 Other liabilities 1,882 1,788 Stockholders' equity: Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 188,521 shares outstanding at March 31, 2018 and 188,189 shares outstanding at December 30, 2017 17,979 17,979 Additional paid-in capital 1,818,532 1,828,386 Treasury stock (450,160 ) (468,818 ) Retained earnings 2,546,400 2,418,444 Accumulated other comprehensive income 64,442 56,428 Total stockholders' equity 3,997,193 3,852,419 Total liabilities and stockholders' equity $ 4,855,222 $ 4,948,289 Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) 13-Weeks Ended March 31, April 1, 2018 2017 Operating activities: Net income $ 129,374 $ 238,404 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 16,014 14,658 Amortization 7,132 7,070 (Gain) loss on sale or disposal of property and equipment (15 ) 8 Provision for doubtful accounts 57 (294 ) Provision for obsolete and slow moving inventories 3,959 7,193 Unrealized foreign currency (gain) loss (517 ) 42,571 Deferred income taxes 416 (171,432 ) Stock compensation expense 13,440 8,206 Realized losses on marketable securities 196 291 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable 187,693 135,253 Inventories (26,455 ) (41,398 ) Other current and non-current assets 9,037 7,534 Accounts payable (36,708 ) (44,180 ) Other current and non-current liabilities (99,935 ) (81,038 ) Deferred revenue (8,368 ) (12,041 ) Deferred costs 1,807 2,647 Income taxes payable 17,063 6,943 Net cash provided by operating activities 214,190 120,395 Investing activities: Purchases of property and equipment (26,336 ) (25,538 ) Proceeds from sale of property and equipment 121 7 Purchase of intangible assets (1,622 ) (1,222 ) Purchase of marketable securities (140,623 ) (96,049 ) Redemption of marketable securities 65,253 109,526 Acquisitions, net of cash acquired (9,417 ) - Net cash used in investing activities (112,624 ) (13,276 ) Financing activities: Dividends (96,146 ) (96,028 ) Proceeds from issuance of treasury stock related to equity awards 1,926 - Purchase of treasury stock related to equity awards (6,562 ) (3,452 ) Purchase of treasury stock under share repurchase plan - (27,873 ) Net cash used in financing activities (100,782 ) (127,353 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,717 6,932 Net increase (decrease) in cash, cash equivalents, and restricted cash 7,501 (13,302 ) Cash, cash equivalents, and restricted cash at beginning of period 891,759 846,996 Cash, cash equivalents, and restricted cash at end of period $ 899,260 $ 833,694 Garmin Ltd. And Subsidiaries Net Sales, Gross Profit and Operating Income by Segment (Unaudited) Reportable Segments Outdoor Fitness Marine Auto Aviation Total 13-Weeks Ended March 31, 2018 Net sales $ 144,258 $ 166,035 $ 113,554 $ 141,312 $ 145,713 $ 710,872 Gross profit 93,285 96,601 66,683 61,012 108,954 426,535 Operating income 43,822 33,374 13,131 3,468 48,407 142,202 13-Weeks Ended April 1, 2017 Net sales $ 115,875 $ 137,831 $ 104,445 $ 160,488 $ 122,871 $ 641,510 Gross profit 73,469 77,741 59,747 70,616 91,233 372,806 Operating income 34,451 18,472 18,145 7,352 38,608 117,028 Garmin Ltd. And Subsidiaries Net Sales by Geography (Unaudited) (In thousands) 13-Weeks Ended March 31, April 1, Yr over Yr 2018 2017 Change Net sales $ 710,872 $ 641,510 11 % Americas 345,975 324,630 7 % EMEA 245,912 225,335 9 % APAC 118,985 91,545 30 % EMEA - Europe, Middle East and Africa; APAC - Asia Pacific and Australian Continent
Non-GAAP Financial Information
To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma net income (earnings) per share, forward-looking pro forma earnings per share, pro forma effective tax rate, forward-looking pro forma effective tax rate and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.
The tables below provide reconciliations between the GAAP and non-GAAP measures.
Pro forma effective tax rate
The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of such discrete tax items are important measures to permit investors' consistent comparison between periods. In the first quarter 2018, there were no such discrete tax items identified.
Garmin Ltd. And Subsidiaries Pro Forma Effective Tax Rate (in thousands, except effective tax rate (ETR) information) 13-Weeks Ended April 1, 2017 $ ETR (1) U.S. GAAP income tax provision (benefit) $ (150,029 ) (169.8 %) Pro forma discrete tax items: Switzerland corporate tax election (2) 168,755
Total pro forma discrete tax items 168,755
Income tax provision (Pro Forma) $ 18,726 21.2 % (1) Effective tax rate is calculated by taking the Income tax provision divided by Income before taxes, as presented on the face of the Condensed Consolidated statements of Income. (2) In first quarter 2017, a $169 million tax benefit was recognized resulting from the revaluation of certain Switzerland deferred tax assets. The revaluation is due to the Company’s election in February 2017 to align certain Switzerland corporate tax positions with global tax initiatives. As this revaluation is not reflective of income tax expense incurred related to the current period earnings, and therefore affects period to period comparability, it has been identified as a discrete pro forma tax item.
The net release of uncertain tax position reserves, amounting to approximately $3.5 million and $1.0 million in the first quarter 2018 and 2017, respectively, have not been included as pro forma adjustments in the above presentation as such amounts tend to be more recurring in nature, and do not affect comparability between periods.
Pro forma net income (earnings) per share
Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods.
Garmin Ltd. And Subsidiaries Pro Forma Net Income (Earnings) Per Share (in thousands, except per share information) 13-Weeks Ended March 31, April 1, 2018 2017 Net income (GAAP) $ 129,374 $ 238,404 Foreign currency gains / losses (1) (816 ) 37,497 Tax effect of foreign currency gains / losses (2) 130 (7,945 ) Discrete tax items (3) - (168,755 ) Net income (Pro Forma) $ 128,688 $ 99,201 Net income per share (GAAP): Basic $ 0.69 $ 1.27 Diluted $ 0.68 $ 1.26 Net income per share (Pro Forma): Basic $ 0.68 $ 0.53 Diluted $ 0.68 $ 0.52 Weighted average common shares outstanding: Basic 188,322 188,333 Diluted 189,292 189,031 (1) The majority of the Company’s consolidated foreign currency losses are driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency losses. (2) The tax effect of foreign currency gains/losses were calculated using the effective tax rate of 16.0% and a pro forma effective tax rate of 21.2% 2018 and 2017, respectively. (3) The discrete tax items are discussed in the pro forma effective tax rate section above. Free cash flow
Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash less capital expenditures for property and equipment. Management believes that excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company’s operating performance and allows more accurate comparisons of the Company’s operating results to historical performance. This metric may also be useful to investors, but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is cash provided by operating activities.
Garmin Ltd. And Subsidiaries Free Cash Flow (in thousands) 13-Weeks Ended March 31, April 1, 2018 2017 Net cash provided by operating activities $ 214,190 $ 120,395 Less: purchases of property and equipment (26,336 ) (25,538 ) Free Cash Flow $ 187,854 $ 94,857 Forward-looking pro forma tax rate
Forward-looking pro forma tax rate and pro forma earnings per share are calculated before the effect of certain discrete tax items. Management believes certain discrete tax items may not be reflective of income tax expense incurred as a result of current period earnings. Therefore, in order to permit consistent comparison between periods, the tax rate and earnings per share before the effect of such discrete tax items are important measures. At this time management is unable to determine whether or not significant discrete tax items will be identified in fiscal 2018.
Forward-looking pro forma earnings per share (EPS)
In addition to the discrete tax items discussed in the forward-looking pro forma effective tax rate section above, our 2018 pro forma EPS excludes foreign currency exchange gains and losses. The estimated impact of such foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact of such foreign currency gains and losses, net of tax effects, was less than $0.01 for the 13-weeks ended March 31, 2018.
APPENDIX A – New revenue standard
In the first quarter of 2018 we adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), the new revenue standard. ASC Topic 606 replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard. The Company adopted the new revenue standard utilizing the full retrospective method. Under this method, the new revenue standard is applied to each prior period reported in the forthcoming 2018 Form 10-Q and Form 10-K filings. This adoption approach enhances comparability, as all periods presented in the forthcoming filings are reported under the new standard.
The following tables contain restated summarized financial information resulting from the adoption of ASC Topic 606. Amounts related to the income tax effect of the new standard that were previously disclosed as the anticipated adoption impact in our fourth quarter 2017 press release attached as Exhibit 99.1 to our Current Report on Form 8-K and in Note 2 of our fiscal 2017 K filed with the Securities and Exchange Commission (SEC) on February 21, 2018 have been revised in the tables below and in Note 1 of the Company’s first quarter 2018 Form 10-Q filing by immaterial amounts in connection with our adoption of ASC Topic 606. Restated revenue, gross profit and operating income were not affected by this revision. Finalized balance sheet information can be found within Note 1 of the Company’s first quarter 2018 Form 10-Q filing. Historical net cash flows provided by or used in operating, investing, and financing activities were not impacted by adoption of the new revenue standard. Within this appendix, the references to periods such as “FY 17”or “Q1 17” refer to the corresponding periods as reported in the applicable Form 10-K or Form 10-Q filings.
Garmin Ltd. And Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands) Restated (1)
FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Net sales $ 3,045,797 $ 641,510 $ 831,486 $ 751,244 $ 897,319 $ 3,121,560 Cost of goods sold 1,357,272 268,704 347,356 313,721 393,837 1,323,619 Gross profit 1,688,525 372,806 484,130 437,523 503,482 1,797,941 Total operating expense 1,055,661 255,778 274,508 263,875 320,142 1,114,304 Operating income 632,864 117,028 209,622 173,648 183,340 683,637 Total other income (expense) 5,761 (28,653 ) 24,705 16,266 1,115 13,434 Income before income taxes 638,625 88,375 234,327 189,914 184,455 697,071 Income tax provision (benefit) 120,901 (150,029 ) 57,348 38,840 41,905 (11,936 ) Net income $ 517,724 $ 238,404 $ 176,979 $ 151,074 $ 142,550 $ 709,007 (1) Effective for the fiscal year ending December 29, 2018, we have adopted ASC Topic 606. The results above are restated under ASC Topic 606. Garmin Ltd. And Subsidiaries Pro Forma Effective Tax Rate (In thousands, except effective tax rate (ETR) information) Restated (1)
FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Income before income taxes $ 638,625 $ 88,375 $ 234,327 $ 189,914 $ 184,455 $ 697,071 Income tax provision (benefit) 120,901 (150,029 ) 57,348 38,840 41,905 (11,936 ) U.S. GAAP ETR (2)
18.9 % (169.8 %) 24.5 % 20.5 % 22.7 % (1.7 %) Pro forma discrete tax items: Switzerland corporate tax election (3)
- 168,755 - - 11,279 180,034 Impact of share-based award expirations (4)
- - (7,275 ) - (15,345 ) (22,620 ) Total pro forma discrete tax items - 168,755 (7,275 ) - (4,066 ) 157,414 Income tax provision adjusted for pro forma discrete tax items
$ 120,901 $ 18,726 $ 50,073 $ 38,840 $ 37,839 $ 145,478 Pro Forma ETR (2)
18.9 % 21.2 % 21.4 % 20.5 % 20.5 % 20.9 % (1)
Effective for the fiscal year ending December 29, 2018, we have adopted ASC Topic 606. The results above are restated under ASC Topic 606.
(2)
U.S. GAAP ETR is calculated by taking the Income tax provision (benefit) divided by Income before income taxes. Pro Forma ETR is calculated by taking the Income tax provision adjusted for Pro forma discrete tax items divided by Income before income taxes.
(3)
In first quarter 2017, a $169 million tax benefit was recognized resulting from the revaluation of certain Switzerland deferred tax assets. The revaluation is due to the Company’s election in February 2017 to align certain Switzerland corporate tax positions with international tax initiatives. In the fourth quarter 2017, an additional $11 million benefit was recognized as a result of this Switzerland election. These impacts during the transitional period following the election are not reflective of current income tax expense incurred and therefore affect period-to-period comparability.
(4)
Following adoption in fiscal 2017 of Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), the Company may periodically incur tax expense resulting from stock options and stock appreciation rights (SARs) expiring unexercised. New grants of stock options and SARs no longer comprise a significant component of the Company’s compensation arrangements. As the tax expense from expired awards is not related to current period earnings or compensation activities, and affects period-to-period comparability, it has been identified as a pro forma adjustment.
Garmin Ltd. And Subsidiaries Pro Forma Net Income (Earnings) Per Share (in thousands, except per share information) Restated (1)
FY 16 Q1 17 Q2 17 Q3 17 Q4 17 FY 17 Net income (GAAP) $ 517,724 $ 238,404 $ 176,979 $ 151,074 $ 142,550 $ 709,007 Foreign currency gains / losses (2)
31,651 37,497 (15,110 ) (8,579 ) 8,772 22,579 Tax effect of foreign currency gains / losses (3)
(5,992 ) (7,945 ) 3,229 1,755 (1,799 ) (4,712 ) Discrete tax items (4)
- (168,755 ) 7,275 - 4,066 (157,414 ) Net income (Pro Forma) $ 543,383 $ 99,201 $ 172,373 $ 144,250 $ 153,589 $ 569,460 Diluted earnings per share (GAAP) $ 2.73 $ 1.26 $ 0.94 $ 0.80 $ 0.75 $ 3.76 Diluted earnings per share (Pro Forma) $ 2.87 $ 0.52 $ 0.91 $ 0.77 $ 0.81 $ 3.02 Weighted average common shares outstanding: Diluted 189,343 189,031 188,492 188,490 188,915 188,732 (1)
Effective for the fiscal year ending December 29, 2018, we have adopted ASC Topic 606. The results above are restated under ASC Topic 606.
(2)
The majority of the Company’s consolidated foreign currency gains and losses are typically driven by movements in the Taiwan Dollar, Euro, and British Pound Sterling in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at one of the Company’s subsidiaries. However, there is minimal cash impact from such foreign currency gains and losses.
(3)
The tax effect of foreign currency gains and losses is calculated using the pro forma ETR for the respective period, as presented above. The quarterly tax effects may not cross-foot to the annual tax effect due to quarterly variances in pro forma ETR.
(4)
The discrete tax items are discussed in the pro forma effective tax rate section above.
View source version on businesswire.com : https://www.businesswire.com/news/home/20180502005404/en/
Garmin
Investor Relations Contact:
Teri Seck, 913-397-8200
investor.relations@garmin.com
or
Media Relations Contact:
Ted Gartner, 913-397-8200
media.relations@garmin.com
Source: Garmin | http://www.cnbc.com/2018/05/02/business-wire-garmin-reports-record-first-quarter-revenue-and-double-digit-earnings-growth.html | 4,970 |
Navios Maritime Acquisition Corporation Announces the Date for the Release of First Quarter 2018 Results, Conference Call and Webcast | MONACO, May 07, 2018 (GLOBE NEWSWIRE) -- Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE:NNA) announced today that it will host a conference call on Thursday, May 10, 2018 at 8:30 am ET, at which time Navios Acquisitions' senior management will provide highlights and commentary on earnings results for the first quarter ended March 31, 2018. The Company will report results for the first quarter ended March 31, 2018, prior to the conference call.
A supplemental slide presentation will be available on the Navios Acquisition website at www.navios-acquisition.com under the "Investors" section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Thursday, May 10, 2018 at 8:30 am ET
Call Title: Navios Acquisition Q1 2018 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 148 5837
The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 148 5837
This call will be simultaneously Webcast. The Webcast will be available on the Navios Acquisition website, www.navios-acquisition.com , under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.
About Navios Maritime Acquisition Corporation
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit our website: www.navios-acquisition.com .
Investor Relations Contact
Navios Maritime Acquisition Corporation
+1.212.906.8644
info@navios-acquisition.com
Source:Navios Maritime Acquisition | http://www.cnbc.com/2018/05/07/globe-newswire-navios-maritime-acquisition-corporation-announces-the-date-for-the-release-of-first-quarter-2018-results-conference-call.html | 297 |
Senate votes to reinstate Obama-era net neutrality rules - MarketWatch | Published: May 16, 2018 4:46 p.m. ET Share
But measure faces long odds of passage in the House
By John D. McKinnon Getty Images The seal of the Federal Communications Commission hangs inside the hearing room at the FCC headquarters in Washington.
The Senate voted Wednesday to reinstate Obama-era open-internet rules, handing a symbolic defeat to the Trump administration over its efforts to roll back those regulations.
The measure, adopted by 52 to 47, still faces long odds of passage in the House. The White House also says it supports the current rules, adopted by the GOP-run Federal Communications Commission late last year, and many Republicans believe President Donald Trump would veto the reinstatement measure if it ever reached his desk.
The Obama-era FCC’s net neutrality rules, adopted in 2015, required internet service providers such as cable and wireless firms to treat all online traffic equally. The rules barred them from blocking and throttling websites, or creating fast and slow lanes. | https://www.wsj.com/articles/senate-votes-to-reinstate-obama-era-net-neutrality-rules-1526501624?mod=searchresults&page=1&pos=1 | 168 |
QIC Expands Senior Leadership Team in U.S. and Australia | NEW YORK and LOS ANGELES, May 4, 2018 /PRNewswire/ -- Australia-based global diversified alternative investment firm QIC today announced several senior executive appointments reflecting the firm's expanding presence, investment portfolio and client focus in the U.S., a market of increasing importance for QIC and its clients.
Brian Delaney, who has been Executive Director, Strategy, Clients & Global Markets, since 2012, has been appointed to the newly created position of Senior Managing Director – U.S. In this role, he will lead QIC's efforts to foster client relationships and business development opportunities in the U.S., provide insights on investment trends to inform corporate strategy, and share market intelligence with the firm's investment teams. He will also chair a new QIC U.S. Leadership Forum comprising representatives from QIC Global Real Estate, Global Infrastructure and Global Private Capital, responsible for implementing QIC's U.S. strategy.
Mr. Delaney will continue to serve on QIC's Executive Committee and report to QIC CEO Damien Frawley. He will relocate to the U.S. to assume this position and be based in QIC's Los Angeles office.
David Asplin, currently Managing Director – Global Business Development, has been named Chief Operating Officer – Global Real Estate. In this newly created position, Mr. Asplin will manage the performance of QIC's Global Real Estate business as it enters its next phase of growth, reporting directly to and working closely with Steve Leigh, Managing Director – Global Real Estate. He will continue to serve on QIC's Executive Committee and be based in QIC's Brisbane office.
Both appointments are effective July 1, 2018.
QIC recently reached an important milestone in its U.S. expansion, completing its acquisition of Forest City Enterprises' interest in six U.S. shopping centers and assuming operational control of all 12 shopping centers in QIC's U.S. portfolio. Today QIC has more than 200 employees based in the U.S., and, in addition to the 12 shopping centers, its U.S. investment portfolio includes three infrastructure investments.
Mr. Frawley said, "Brian's appointment reflects the value that QIC places on further developing client relationships and business opportunities in the U.S. With the U.S. having become our second largest market in terms of both employees and assets, Brian's role will be crucial in growing our networks, particularly as we build QIC's brand and reputation in the U.S. and raise capital for the QIC U.S. Shopping Center Fund."
Mr. Delaney commented, "I'm excited to assume this role at an important time in QIC's growth in the U.S. I look forward to working with my colleagues across our U.S. offices to further embed QIC's culture of high performance and inclusion, which has underpinned our achievements in recent years."
Commenting on Mr. Asplin's appointment, Mr. Frawley said, "David is a proven leader and experienced funds management executive who has been successful in guiding our global business development efforts. His leadership, skills and discipline will be important assets in managing the business performance of QIC Global Real Estate, the largest of our business units, and working to achieve the financial targets we have set for that business, especially now that we have assumed ownership and full operational control of our U.S. mall portfolio."
In conjunction with Mr. Asplin's appointment, QIC is putting in place an enhanced management structure for its Global Real Estate business to accommodate its greater size and complexity. The expanded team includes the appointments of Stuart Miller as Global Director – Asset Strategy, to lead strategic planning across U.S. assets; Brenton Watson as Executive Vice President – Asset Management U.S., focusing on performance of U.S. assets; and Joe Boehm, Executive Vice President – Retail, with responsibility for U.S. retail partnerships and leasing.
Before joining QIC, Mr. Delaney was with AMP Capital Investors for 14 years as Director of the Client, Product & Marketing division. In that position, he was responsible for all institutional, retail and self-managed super fund (SMSF) strategy and served as Chair of the AMP Capital-Brookfield Joint Venture covering global asset classes. He serves on the Boards of Directors of Lonsec Fiscal Holdings and Basketball Australia and is a former director of the Investment Management & Consultant Association (IMCA) and CCube Financial Software.
Mr. Asplin joined QIC in 2012 as Director of Investor Services for QIC Global Real Estate, with responsibility for client services, sales, marketing and product development, and later became Director of Investment Specialists for QIC. He was appointed Managing Director – Global Business Development in 2014. Prior to joining QIC, Mr. Asplin held senior positions at LaSalle Investment Management, Challenger Financial Services and Colonial First State.
About QIC
QIC is a global diversified alternative investment firm offering infrastructure, real estate, private capital, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$85.6 billion/US$65.7 billion in funds under management.[1] QIC has over 1000 employees and serves more than 110 clients. Headquartered in Brisbane, QIC also has offices in Sydney, Melbourne, New York, Los Angeles, Cleveland, Fort Lauderdale, San Francisco, London and Copenhagen.
IMPORTANT INFORMATION
QIC Limited ACN 130 539 123 ("QIC") is a wholesale funds manager and its products and services are not directly available to, and this document may not be provided to any, retail clients. QIC is a government-owned corporation constituted under the Queensland Investment Corporation Act 1991 (Qld). QIC is regulated by State Government legislation pertaining to government owned corporations in addition to the Corporations Act 2001 (Cth) ("Corporations Act"). QIC does not hold an Australian financial services ("AFS") licence and certain provisions (including the financial product disclosure provisions) of the Corporations Act do not apply to QIC. QIC Private Capital Pty Ltd ("QPC"), a wholly owned subsidiary of QIC, has been issued with an AFS licence and other wholly owned subsidiaries of QIC are authorised representatives of QPC. QIC's subsidiaries are required to comply with the Corporations Act. QIC also has wholly owned subsidiaries authorised, registered or licensed by the United Kingdom Financial Conduct Authority ("FCA"), the United States Securities and Exchange Commission ("SEC") and the Korean Financial Services Commission.
For more information about QIC, our approach, clients and regulatory framework, please refer to our website www.qic.com or contact us directly.
The statements and any opinions in this document (the "Information") are for commentary purposes only and do not take into account any investor's personal, financial or tax objectives, situation or needs. The Information is not intended to constitute personal legal or investment advice and it does not constitute, and should not be construed as, an offer to sell or solicitation of an offer to buy, securities or any other investment, investment management or advisory services. Past performance is not a reliable indicator of future performance.
Copyright QIC Limited, Australia. All rights are reserved.
[1] As at 31 March 2018
View original content: http://www.prnewswire.com/news-releases/qic-expands-senior-leadership-team-in-us-and-australia-300642818.html
SOURCE QIC | http://www.cnbc.com/2018/05/04/pr-newswire-qic-expands-senior-leadership-team-in-u-s-and-australia.html | 1,181 |
Fissures spread from Hawaii volcano, threatening more homes | May 8, 2018 / 10:16 AM / Updated an hour ago Fissures spread from Hawaii volcano, threatening more homes Terray Sylvester 3 Min Read
PAHOA, Hawaii (Reuters) - Emergency crews said they were poised to evacuate more people as fissures kept spreading from Hawaii’s erupting Kilauea volcano, five days after it started exploding. Lava engulfs a Ford Mustang in Puna, Hawaii, U.S., May 6, 2018 in this still image obtained from social media video. WXCHASING via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. MANDATORY CREDIT: WXCHASING. NO NEW USES AFTER JUNE 5, 2018. UNITED STATES OUT. TPX IMAGES OF THE DAY
Around 1,700 people have already been ordered to leave their homes after lava crept into neighbourhoods and deadly volcanic gases belched up through cracks in the earth.
The evacuation zone could now grow as fissures are spreading into new areas on the eastern side of the Big Island, Hawaii Civic Defense Administrator Talmadge Magno told a community meeting
“If things get dicey, you got to get out,” he said. “If you live in the surrounding communities ... be prepared. Evacuation could come at any time.”
Kilaueax has opened 12 volcanic vents since it started sending out fountains and rivers of lava on Thursday, officials said. Lava was not flowing from any of the vents on Monday.
Resident Heide Austin said she left her home just west of the current eruption zone after noticing small cracks appearing at the end of her driveway.
One eruption near her home “sounded like a huge blowtorch going off,” said the 77-year-old who lives alone. “That’s when I really got into a frenzy.”
Many of the evacuated people were permitted to return home during daylight hours on Sunday and Monday, during a lull in seismic activity.
Residents of a second area, Lanipuna Gardens, were barred from returning home on Monday due to deadly volcanic gases.
Leilani Estates, about 12 miles (19 km) from the volcano, was evacuated due to the risk of sulphur dioxide gas, which can be life threatening at high levels.
No deaths or major injuries have been reported. At least 35 structures had been destroyed, many of them homes, officials said.
The southeast corner of the island was rocked by a powerful magnitude 6.9 earthquake on the volcano’s south flank on Friday. More earthquakes and eruptions have been forecast.
Kilauea, one of the world’s most active volcanoes, has been in constant eruption for 35 years. Reporting by Terray Sylvester; Editing by Andrew Heavens | https://uk.reuters.com/article/uk-hawaii-volcano/fissures-spread-from-hawaii-volcano-threatening-more-homes-idUKKBN1I914T | 426 |
British gaming firm enlists army of players to create Worlds Adrift | May 17, 2018 / 10:22 AM / Updated 39 minutes ago British gaming firm enlists army of players to create Worlds Adrift Eric Auchard 4 Min Read
LONDON (Reuters) - British game maker Bossa Studios will release Worlds Adrift on Thursday, an ambitious adventure game designed to appeal to the Minecraft generation that has taken three years and 50,000 gamers to create.
The London-based independent games designer is pushing technical, logistical and financial boundaries by counting on gamers to build floating islands for their characters to inhabit, which other players can visit via airborne, pirate-like ships.
“Worlds Adrift allows you to go into the game and set your own objectives and go about the game however you choose,” said Henrique Olifiers, one of the company’s three co-founders.
Bossa was set up in 2010 by veteran game designers who first focused on making social games played on Facebook before switching to PC-based online games. It is best known for “Surgeon Simulator” and “I Am Bread”, which have drawn in millions of users with their physics-based, realistic movements.
Its new multiplayer online game is the first to run on the computational platform of Improbable, a second London firm which enables enormous cloud-based simulations to be created, without which Worlds Adrift’s complex, user-generated landscape would be impossible. It is far more sophisticated than prior Bossa games. Related Coverage Factbox: Bookmakers spell out impact of new UK gambling curbs
Bossa aims to create the next big European games franchise, following in the footsteps of household names such as Microsoft-owned ( MSFT.O ) Minecraft, Clash of Clans from Tencent-controlled ( 0700.HK ) Supercell, Candy Crush by Activision Blizzard’s ( ATVI.O ) King, and Angry Birds creator Rovio ( ROVIO.HE ).
Typically only established gaming companies with hundreds of engineers and hundreds of millions of dollars could develop games of the complexity of World’s Adrift which have massive creative potential and are not limited to scripted tasks.
Eight months ago, Bossa Studios raised $10 million in funding in a round led by European venture firm Atomico. It has 82 employees but is expanding rapidly with the recent funding, Olifiers said. Slideshow (4 Images)
Improbable, whose system can be used to digitally simulate real-world locations not just for games but in product design and corporate planning, received a $502 million investment from the Softbank ( 9984.T ) Vision Fund a year ago.
“Unlike any other massively multiplayer online (MMO) game, your actions actually impact the virtual world - and matter,” says Improbable co-founder Herman Narula.
Gamers will build and develop increasingly complex islands which players can visit and interact with other game participants however they wish.
It is a massive fantasy universe designed to appeal to a younger generation of players looking to build games themselves.
The title is aimed at gamers reared on open-ended Minecraft, the second best-selling game of all time, which provides players with building materials to construct buildings and villages. It has attracted a sizeable number of players under the age of 15, although the majority of them are over 28 so far, Olifiers said.
During development those gamers have created 10,000 islands, 450 of which will feature as the game launches in “early access” mode, meaning that it is still under construction and subject to changes. General release is expected within a year, said Olifiers, a Brazilian games journalist-turned-entrepreneur.
Policing the game is left to players, by design, Olifiers said. Creative contributions will be quickly mimicked by others and collaboration will be beneficial. Bad behavior could prompt users to abandon islands where incidents take place, turning them into Robinson Crusoe outposts no one else visits.
The game goes on sale later on Thursday at a fixed price of 19.49 pounds, or $24.99, with no in-game purchases that can pile up costs for committed players. Reporting by Eric Auchard in London; Editing by Elaine Hardcastle | https://www.reuters.com/article/us-videogames-britain-worlds-adrift/british-gaming-firm-enlists-army-of-players-to-create-worlds-adrift-idUSKCN1II1A6 | 658 |
JMU Limited Reports Unaudited First Quarter 2018 Financial Results | SHANGHAI, May 31, 2018 /PRNewswire/ -- JMU Limited (the "Company" or "JMU") (NASDAQ: JMU), a leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the foodservice industry in China, today announced its financial results for the three months ended March 31, 2018.
First Quarter 2018 Highlights
Revenues in the first quarter of 2018 were $29.5 million, representing an increase of 50.1% from $19.7 million in the first quarter of 2017. Gross profit was $225 thousand in the first quarter of 2018, improved from $106 thousand in the first quarter of 2017. B2B online platform recorded gross billing of RMB2.2 billion (US$344.2 million) in the first quarter of 2018, measured in terms of gross merchandise value ("GMV"), increasing 5.2% from gross billing of RMB2.1 billion (US$298.1 million) in the first quarter of 2017. Active customer accounts were 33,025 as of March 31, 2018, decreasing 1.6% from 33,559 as of March 31, 2017. Third-party sellers on the Company's online marketplace decreased to 15,710 compared to 16,789 as of March 31, 2017.
Ms. Xiaoxia Zhu, Chairperson and Chief Executive Officer commented, "We are pleased to deliver revenue and gross profit growth in the first quarter of 2018 compared to the same period of 2017. This demonstrates solid execution of our business, which aims to maintain strength in our existing market while also capturing new market opportunities that can contribute to our development."
"Through our strategic partnerships and development of Ready-to-Cook and Ready-to-Eat products, we are able to expand our portfolio of products and services that fulfill a wide range of customer demands. We look forward to continuing to build our company's market position and maintaining operational efficiency as we scale the business." Ms. Zhu concluded.
First Quarter 2018 Financial Performance
Revenues were $29.5 million for the first quarter of 2018, representing an increase of 50.1% from $19.7 million in the first quarter of 2017. The growth of revenue in the first quarter of 2018 was mainly due to the increase in order volumes.
Cost of revenues was $29.3 million for the first quarter of 2018, increasing 49.8% from $19.6 million in the first quarter of 2017, which was generally in line with the growth of the Company's revenues.
Gross profit for the first quarter of 2018 was $225.0 thousand, representing a 112.3% increase from $105.9 thousand in the first quarter of 2017.
Selling and marketing expenses in the first quarter of 2018 decreased 58.0% to $1.6 million from $3.9 million in the first quarter of 2017. As a percentage of total revenue, selling and marketing expense was 5.5% and 19.7% in the first quarter of 2018 and the same period of 2017, respectively.
General and administrative expenses in the first quarter of 2018 were $1.2 million, representing a decrease of 32.8% compared to $1.8 million in the first quarter of 2017. As a percentage of total revenues, general and administrative expenses were 4.2% and 9.3% in the first quarter of 2018 and the same period 2017, respectively. The decrease was primarily a result of the Company's improvement in management and operational efficiency.
Loss from operations in the first quarter of 2018 was $2.6 million, a 53.0% decrease from a loss from operations of $5.6 million in the first quarter of 2017.
Net loss attributable to the Company in the first quarter of 2018 was $2.7 million, representing a decrease of 46.3% compared to $5.1 million in the first quarter of 2017. Non-GAAP net loss attributable to the Company, which excludes amortization of acquired intangible assets, impairment loss, share-based compensation, and related provision for income tax benefits, was $2.3 million in the first quarter of 2018 compared to $3.0 million in the same period of 2017. For the quarters ended March 31, 2018 and March 31, 2017, the Company's weighted average number of ordinary shares used in computing loss per ordinary share was 1,476,257,423 and 1,475,946,602, respectively.
As of March 31, 2018, the Company's cash and cash equivalents were $1.5 million, decreasing 68.5% compared to $4.9 million as of December 31, 2017. Total shareholders' equity was $104.8 million as compared to $103.6 million as of December 31, 2017.
Non-GAAP Measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use various non-GAAP financial measures that are adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment loss, share-based compensation and related provision for income tax benefits.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP financial results. In addition, our calculation of this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP loss from operations and net loss attributable to the Company) which is adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment loss , share-based compensation and income tax benefits. A limitation of using these non-GAAP financial measures is that amortization of acquired intangible assets, impairment loss , share-based compensation and related provision for income tax benefits have been and may continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures. Please see the reconciliation tables at the end of this earnings release.
About JMU Limited
JMU Limited currently operates China's leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the catering industry. With the help of Internet and cloud technologies, JMU has the vision to reshape the procurement and distribution pattern and build a fair business ecosystem in the catering industry in China. JMU is further promoting the use of its platform for small- and medium-sized restaurants and restaurant chains in China.
Through cooperation with national and local industry associations and reputable restaurant groups across China, JMU has formed a leading industrial alliance and has great resource leverage in China's catering industry. JMU works closely with suppliers and customers in the catering industry, providing one-stop procurement services, as well as other value-added services. For more information, please visit: http://ir.ccjmu.com .
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "aim", "anticipate", "believe", "estimate", "expect", "going forward", "intend", "ought to", "plan", "project", "potential", "seek", "may", "might", "can", "could", "will", "would", "shall", "should", "is likely to" and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about JMU's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as JMU's strategic and operational plans, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: The general economic and business conditions in China may deteriorate. The growth of Internet and mobile user population in China might not be as strong as expected. JMU's plan to enhance customer experience, upgrade infrastructure and increase service offerings might not be well received. JMU might not be able to implement all of its strategic plans as expected. Competition in China may intensify further. All information provided in this press release is as of the date of this press release and are based on assumptions that we believe to be reasonable as of this date, and JMU does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Contact:
Freda Feng, IR Director
JMU Limited
fengxiaohong@ccjmu.com
Tel: +86-21-6015-1166 ext.8904
Bill Zima
ICR Inc.
bill.zima@icrinc.com
Tel: +1(203)-682-8200
JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands, except for number of shares and per share (or ADS) data)
Three Months Ended
March 31,
2017
March 31,
2018
Related parties
3,142
3,648
Third parties
16,540
25,899
Total Revenues
19,682
29,547
Cost of revenues
(19,576)
(29,322)
Gross profit
106
225
Operating expenses:
Selling and marketing
(3,868)
(1,626)
General and administrative
(1,833)
(1,232)
Impairment loss
-
-
Total operating expenses
(5,701)
(2,858)
Loss from operations
(5,595)
(2,633)
Interest expense
(17)
(221)
Other income, net
35
61
Loss before provision for income taxes
(5,577)
(2,793)
Income tax benefits
497
64
Net loss
(5,080)
(2,729)
Net loss per ordinary share
Basic
(0.00)
(0.00)
Diluted
(0.00)
(0.00)
Weighted average shares used in calculating net loss per
ordinary share
Basic
1,475,946,602
1,476,257,423
Diluted
1,475,946,602
1,476,257,423
JMU LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(US dollars in thousands)
Three Months Ended
March 31,
2017
March 31,
2018
Net loss
(5,080)
(2,729)
Other comprehensive income, net of tax of $nil:
Change in cumulative foreign currency translation adjustment
2,150
3,887
Comprehensive (loss)/income
(2,930)
1,158
JMU LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(US dollars in thousands)
December 31,
2017
March 31,
2018
ASSETS:
Current assets:
Cash and cash equivalents
4,912
1,545
Accounts receivable, net
3,296
8,376
Inventories
539
589
Prepaid expenses and other current assets, net
2,246
2,092
Amounts due from related parties
3,063
6,641
Total current assets
14,056
19,243
Non-current assets:
Property and equipment, net
1,795
1,741
Acquired intangible assets, net
10,264
10,319
Investment
768
797
Goodwill
108,940
112,999
Deferred tax assets
157
146
Other non-current assets
162
152
Total non-current assets
122,086
126,154
TOTAL ASSETS
136,142
145,397
LIABILITIES AND SHAREHOLDER'S EQUITY:
Current liabilities:
Short-term bank borrowings
7,685
7,971
Accounts and notes payable
3,981
9,127
Accrued expenses and other current liabilities
9,292
7,756
Advance from customers
1,244
933
Amounts due to related parties
604
2,253
Total current liabilities
22,806
28,040
Non-current liabilities:
Other non-current liabilities
1,534
1,619
Deferred tax liabilities
2,565
2,580
Amount due to related parties
5,686
8,322
Total non-current liabilities
9,785
12,521
TOTAL LIABILITIES
32,591
40,561
Commitments and contingencies
Shareholders' equity:
Ordinary shares
15
15
Additional paid-in capital
634,071
634,198
Accumulated deficit
(513,903)
(516,632)
Accumulated other comprehensive loss
(16,632)
(12,745)
Total shareholders' equity
103,551
104,836
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
136,142
145,397
JMU LIMITED
Reconciliation of Non-GAAP financial measures
to comparable GAAP measures
(US dollars in thousands)
Three Months Ended
March 31,
2017
March 31,
2018
Loss from operations
5,595
2,633
Net loss attributable to JMU Ltd.
5,080
2,729
Amortization of acquired intangible assets
a
2,050
324
Provision for income tax benefits
b
(497)
(64)
Share-based compensation
c
534
125
Impairment loss
d
-
-
Non-GAAP loss from operation (a)(c)(d)
3,011
2,184
Non-GAAP net loss attributable to JMU Ltd. (a)(b)(c)(d)
2,993
2,344
Note:
(a) Adjustment to exclude amortization of acquired intangible assets
(b) Adjustment to exclude income tax benefits
(c) Adjustment to exclude share-based compensation
(d) Adjustment to exclude impairment loss
View original content: http://www.prnewswire.com/news-releases/jmu-limited-reports-unaudited-first-quarter-2018-financial-results-300657193.html
SOURCE JMU Ltd | http://www.cnbc.com/2018/05/31/pr-newswire-jmu-limited-reports-unaudited-first-quarter-2018-financial-results.html | 2,141 |
Apple will reportedly introduce new software to help fight iPhone addiction | Adam Jeffery | CNBC Tim Cook, CEO of Apple Inc.
Next Monday during its developer conference Apple will introduce a new feature for iPhones and iPads called "Digital Health," Bloomberg said on Thursday.
Digital Health — said to launch as part of Apple's new iOS 12 operating system — will reportedly help users manage how much time they spend on their iPhones and iPads with tools that show how long users spend inside apps, according to Bloomberg.
Apple will add other features, including new tools for tracking the stock market, Bloomberg said.
Google introduced similar features when it unveiled the new version of Android, currently named Android P, earlier this month. Android P has an app dashboard that will show users how much time they spend inside each app. It will also let Android users set time limits for apps, which means users won't be able to access them after they've used them for a predetermined time during the day. Android P will introduce a "Do Not Disturb" mode that silences all notifications and a "Wind Down" function that turns the phone grayscale at a predetermined time so that people can prepare to go to sleep at night.
Apple typically announces the new version of its operating system during its developer conference and then rolls it out to consumers in the fall. Apple was not immediately available to comment. | https://www.cnbc.com/2018/05/31/apple-digital-health-to-fight-iphone-addiction--report.html | 229 |