“In the context of high capital costs and a potential decrease in revenues, one of our credit facilities has started amortizing in the first quarter of 2016, while our three other credit facilities will start amortizing in the fourth quarter of 2017. As a result, we are due to repay approximately $175.7 million of debt during the period between the first quarter of 2016 and the end of 2018. In the past, we successfully managed to extend the non-amortizing periods and maturities of our credit facilities, which is not practicable today in a cost effective manner. In light of these circumstances, the Board of the Partnership has decided to reserve approximately $14.6 million on a quarterly basis to fully provide for the debt repayments coming due in the next three years, up until the end of 2018.”
Catalyst Halves on Regulatory Update
Catalyst Pharmaceuticals Inc (NASDAQ:CPRX) shares have halved after the company provided an update on the content of its planned re-submission of an NDA for Firdapse. According to the update, Catalyst ‘will need to submit positive results from an additional adequate and well-controlled study in patients with LEMS’. The FDA also wants several more short-term toxicology studies, which should start soon. Catalyst had $52 million in cash and cash equivalents at the end of March. 12 elite funds that we track out of 786 in total owned almost one-quarter of Catalyst Pharmaceuticals Inc (NASDAQ:CPRX)’s float at the end of December.
Nabors Lower After Reporting Earnings Results
Nabors Industries Ltd. (NYSE:NBR) is 7.33% in the red after the company reported a loss of $0.29 per share on sales of $430.8 million for the first quarter, beating EPS estimates by $0.04 but missing sales expectations by a vast $200.05 million. CEO Anthony Petrello commented on the huge sales miss in a press release:
“Our first quarter results reflect the continued strain from low commodity prices. In particular, the first quarter’s drop in oil prices below $30 led to sharp reductions in customer spending plans on a worldwide basis and had a corresponding adverse impact on our results.”
Management has said that it will continue to improve efficiency and cut costs. Investors hope the higher crude prices will translate into better results in the future. Cliff Asness‘ AQR Capital Management was one of the top shareholders of Nabors Industries Ltd. (NYSE:NBR) at the end of the fourth quarter.
Wyndham Misses Revenue Estimates
Wyndham Worldwide Corporation (NYSE:WYN) shares have retreated by 6.27% after the company reported its first quarter results today. Although Wyndham beat EPS estimates by $0.01 with earnings per share of $1.12, the company missed sales expectations by $10 million with revenue of $1.3 billion. First quarter adjusted EBITDA rose by 4% year-over-year and the company repurchased 2.5 million shares for a total cost of $175 million. Free cash flow was $218 million, up from $197 million for the same period of 2015. For the full 2016 year, the company expects revenue of $5.80 billion-to-$5.95 billion, adjusted EBITDA of $1.375 billion-to-$1.40 billion. and adjusted diluted EPS of $5.61-to-$5.75. The actual results might be better, however, as Wyndham does not include the effect of potential share repurchases in its guidance. Wyndham Worldwide Corporation (NYSE:WYN) was in the portfolios of 27 elite funds in our system at the end of the fourth quarter, down by two quarter-over-quarter.
Waddell & Reed Financial, Inc. (NYSE:WDR) is 8.3% in the red this morning after the company’s first quarter results fell short of analysts’ estimates. For the first three months of the year, Waddell & Reed reported EPS of $0.45 on sales of $323.82 million, missing earnings estimates of $0.56 per share and revenue estimates of around $328 million. Assets under management fell by 9% quarter-over-quarter and by 23% year-over-year, due to net outflows and market depreciation. The management team is focused on reducing costs and growing the company to stem the negative AUM trend. The number of top funds holding shares of Waddell & Reed Financial, Inc. (NYSE:WDR) rose by two during the fourth quarter to 18 by the end of December.