In this bond review, Durig takes a look at a company which serves banks and retailers alike around the globe. Diebold Nixdorf (NYSE:DBD) has a full service suite of back office services, including software and hardware solutions for both banking and retail industries. With the release of its fourth quarter results, it appears as if the company is making progress towards its goals. A few highlights include:
The growth of the non-volatile memory market can be attributed to the increasing demand for non-volatile memory in connected and wearable devices and growing requirement for highly scalable memory devices that offer high speed and have low power consumption.
According to a new market research report published by Credence Research “Global Professional Mobile Radio Market (Technology (Digital, Analog); Application (Retail, Transportation, Utility, Mining, Military & Defense, Fire Department, Healthcare, and Others); End-User (Retail, BFSI, Government Sector, Healthcare, Media and Entertainment, Others)) – Growth, Future Prospects and Competitive Analysis,2019 – 2027”,the overall professional mobile radio market worldwide was valued at $16.25 billion in 2018 and is set to grow with a CAGR of 12.3% during the forecast period.
For this week’s bond review, Durig looks at an issuer that provides services to banks and retailers around the world. Diebold Nixdorf (NYSE:DBD) provides end-to-end services, software and hardware for the banking and retail industries. Diebold has spent all of 2019 implementing its DN Now program, designed to increase efficiencies, decrease costs, and improve margins. With the release of its third quarter results, it appears as if the company is making progress towards these goals (see bullets above).
This week, Durig takes another look at the number two grocer in the United States. Albertsons has made a significant turnaround in the past few years after its purchase of Safeway stores in early 2015. With its most recent quarterly results, the company has now logged seven consecutive quarters of identical store sales growth. In addition, the company’s online grocery sales grew by 40% year-over-year, a massive win for this traditional brick and mortar retailer. (Other results from its Q2 results, see bullets above)
An mPOS or mobile point-of-sale terminals is a portable point of sale (POS) on smartphone or tablet used for electronic transaction. The mobile POS terminals are replacement for the traditional cash registers and point-of-sale devices. The global mPOS terminal market is estimated to value at around $6 billion in 2019, and is expected to register a CAGR of 20.7%.
Tote Bags Largely Catering to women are being promoted by the market globally through various innovative ways by providing options to consumers to customize these bags according to their needs which may well be a possible remedy or solution when it comes to packaging goods that are purchased by the consumer. Given the immense potential and the convenience that it provides to consumers, the tote bags are predicted to perform better owing to notable features, such as, their re-usability and cost efficiency. Riding on the back of these factors, the market is expected to grow by significant CAGR over the forecast period i.e. 2017-2024.
POS Terminal, POS stands for Point of Sales. The POS terminal is an electronic gadget or device that is used to process card payment. This device is extensively used in retail shops, shopping malls, restaurants, hotels, etc. This gadget is used to complete the payment transaction and to prepare the invoice for the customer. The POS is generally acted as a transactional interface between the merchant and customer when a product or a service is purchased. The POS system is a hardware used in a storefront business which also uses a computer and software to handle the everyday sales and credit card transactions and operations.
This week, Durig Capital provides a brief update on 99 Cents Only Stores LLC, a deep discount retailer whose bonds we have reviewed in the past for our Fixed Income 2 (FX2) High Yield Managed Income Portfolio. 99 Cents Only Stores has recently been challenged by its outstanding debt obligations. Here are some of the highlights:
Deep discount retailer 99 Cents Only Stores recently completed an arrangement with creditors which would eliminate many of their short term debt obligations.
Debt to equity swaps are a common method companies use to improve liquidity.
Under the newly agreed upon terms, 99 Cents Only Stores will issue common and preferred stock for some of its outstanding debt.
Recent Financial Statements
Future Market Insights (FMI) has recently published a market research report, titled “Intelligent Enterprise Data Capture Software Market – Global Industry Analysis 2014 – 2018 and Opportunity Assessment 2019 – 2029.”
The global solid oxide fuel cell market is projected to grow at a CAGR of 13.88%, by value from 2017 to 2025. The market in North America was the largest in 2016 and is projected to hold the largest share by 2025, followed by the markets in Asia Pacific and Europe. The growth of the solid oxide fuel cell market is mainly driven by government subsidies and fuel cell programs in countries, such as the US and Japan, increasing demand for efficient power generation and stringent emission norms in Europe and North America.
The Global Mosquito Repellents Market includes coil, spray, vaporizer, oil & cream, patches, and others. Vaporizer dominated the repellents type segment as they are convenient to use, less polluting, and considerably affective to kill or subdue mosquitos. Mosquito repellents do not kill mosquitos but weaken them and deter them from biting people.
According to a new report published by Future Market Insights titled “Security and Vulnerability Management Market: Global Industry Analysis (2012 – 2016) and Opportunity Assessment (2017 – 2027),” the global security and vulnerability management market was valued at $5.7 billion in 2016 and is projected to reach $20.7 billion by 2027 end.
According to a recent market report published by Research Report Insights (RRI) titled, “Lighting controllers Market by 2025” the global lighting controllers market was valued at $4.2 billion in 2016, and is expected to register a CAGR of 17.6% from 2017 to 2025. The development of smart lighting infrastructure and government spending on smart city projects are the major factors driving growth of the global lighting controllers market.
Customer relationship management application software includes applications for sales automation, automation of marketing and customer service and support management like email automation. There are different types of customer relationship management applications available through cloud delivery like social media management, activity and participant management and customer experience management. Customer relationship management application software are being increasingly used by the enterprises to increase their sales by retaining their customers and netting new customers.
The Global Retail Automation market is expected to register a global CAGR of 11.7% during 2017 – 2027, with North America, Western Europe, and APEJ accounting for significant market value shares by the end of the forecast period.
Lactose-free infant formula is manufactured for those infants who have an inability to naturally produce an enzyme which helps in the digestion of lactose. It often leads to abdominal bloating, cramps and diarrhea amongst infants. Hence the demand for lactose-free infant formula which specially caters to the needs of these consumers has grown in demand.
Wearable Translator supports real-time speech conversion. The technology associated with the wearable translator does not depend on any type of internet connection like the old conventional type of translators in which a person has to download the app and then different languages as per the requirement which takes up much of the space from the memory of the cell phone.The wearable translator has a resounding battery life of 24 hours on a single full charge. The device is not connected to any type of internet connection so it does not drain the battery and hence has a good battery life.
Twisted handle bags are made of kraft paper, which can be brown kraft or white kraft. The twisted handle attached with the bag differentiates these bags from rest of the paper bags. Twisted handle is attached by using glue. Twisted handle bags are widely used in retail sector for shopping and promotional activities. These bags are also used by consumers to carry meals and carry food parcels from restaurants.
The research study titled “Industrial Floor Scrubbers (End-use Industry– Transportation, Healthcare and Pharmaceuticals, Government, Education, Hospitality, Manufacturing and Warehousing, Retail and Food) Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020” provides in-depth analysis of the market and related sub-segments.
The worldwide market for department stores retailing is one of the quickest developing markets amid all the supporting products market. The retail chains are being utilized in each industrial procedure to make boosting exercises effortless and quicker.
Washing capsules are concentrated capsules of liquid or powdered detergents. Manufacturers pre-measure the dosage before putting it into a capsule. Washing capsules are convenient to use. Washing capsules have gained popularity in the past few years owing to their convenience factor.
This week’s bond review delves into the retail sector with a specialty retailer of durable consumer goods who also offers its customers financing on their purchases. Conn’s Inc., which is headquartered in Texas, has a market presence that stretches across the southern United States. Conn’s set some records in its most recent quarterly results (third quarter for its fiscal year 2019).
- Record third quarter retail gross margin of 41.2%
- Record quarterly credit segment revenues of $89.9 million.
- For the first nine months of fiscal year 2019, the company registered its second highest nine month operating income ever
- Excellent interest coverage of 2.4x.
Diversification is the word this week as Durig Capital takes a second look at the number two grocer in the United States. Albertsons recently posted its first quarter results for fiscal year 2018. The company showcased some impressive financials including the following:
Adjusted EBITDA of $815.8 million, an increase of 5.7% year-over-year.
39% increase in net cash provided by operating activities.
108% increase in e-commerce sales.
Interest coverage of nearly 3x.
This week’s bond review delves into the retail sector with a specialty retailer of durable consumer goods who also offers its customers financing on their purchases. Conn’s Inc., which is headquartered in Texas, has a market presence that stretches across the southern United States. It’s most recent quarterly results show a company registering wins from a multi-year planned strategic repositioning. Total operating income increased by 62.3% over the prior year period. In addition, Conn’s posted a record quarterly retail gross margin of 39.6%. The company’s credit segment had positive outcomes as well, generating its first positive operating income in four years as credit revenues grew over 8% year over year. Conn’s continues to grow, opening two new stores in its most recent quarter, with more scheduled for this fiscal year. The company’s 2022 bonds are in demand right now, with a yield-to-maturity of about 7.18%. This competitive yield as well as the opportunity for diversification into the retail sector, makes these bonds a smart addition for Durig Capital’s Fixed Income 2 (FX2) Managed Income Portfolio, the recent performance of which is shown below.