Category Archives: Business Services

BCO Happily Says Goodbye to 2009; 2010 Should Be Back to Basics – Steady Organic Growth and Solid FCF Generation

February 3, 2010 – 3:54 pm

Normally when a non-financial services company issues an earnings release that is more than 25 pages, it usually is cause for significant concern.  However in the case of BCO, the lengthy 4Q09 press release has been greeted with “open arms” given the number of changes the company has undergone in the past 3-6 months.  Overall, on an [...]

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ARP Raises Guidance for 4Q09 Revenues, EPS – Consensus Estimates Appear Too Low for 2010

January 27, 2010 – 7:23 pm

After the close today, ARP issued a press release indicating that the company now expects to beat its prior revenue and EPS guidance for 4Q09.  You can read the full release here.  Management did not specifically identify the sources or magnitude of revenue upside.  The company has increased its full year guidance for EPS from [...]

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Feedback from Independent Reprographers Suggests the Potential for ARP to Beat Estimates is High, AIA Billings Index Could Finally Eclipse 50 in 1Q10

January 20, 2010 – 10:02 pm

We introduced ARPas an investment idea approximately 9-months ago. At that time we thought the stock had considerable upside based in large part on the company’s market leadership position and strong free cash flow generation.  This would enable the company to weather the current economic downturn through strategic cost cutting and debt reduction.  For the [...]

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BCO’s “Danza Con El Diablo” Continues – Venezuela Remains an Overhang

December 21, 2009 – 10:27 pm

After the close today, BCO announced its intention to repatriate cash held in Venezuela at the “parallel rate” opposed to the “official rate”, which the company has used for accounting purposes.  BCO currently has a 61% ownership interest in its Venezeulan operations, which had $225 million in assets and $111.7 million in non-monetary assets as of [...]

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Canon’s Takeover Bid for Oce N.V. Validates Value of ARP Shares

November 16, 2009 – 11:20 am

CanonInc. today announced its intention to launch a takeover bid for Oce N.V., a leading manufacturer of digital printing systems and document management service provider.  Canon will launch a tender offer in 1Q10 at Eur8.60/share, or a 70% premium to Oce’s closing price on Friday.  The tender offer will also represent a 100% premium to [...]

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BCO: 3Q09 Operational Beat Clouded by One-Time Gains and Higher Tax Rate

October 29, 2009 – 10:16 am

The Brink’s Company reported 3Q09 result this morning.  You c an read the full release here.  There were a number of “puts and takes” in the quarter that have clouded what we would otherwise characterize as a solid operational beat.   The two major non-operational offsets during the quarter were:

A one-time gain related to the company’s [...]

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BCO: A Name for the Contrarian Value Crowd – Increased Diamond Transaction Volume, Currency, Should Boost 3Q09 Results

October 26, 2009 – 4:53 pm

We introduced the Brink’s Company as what we thought would be a compelling long idea a few months ago based on the company’s strong track record of secular growth over the past 25-years, solid free cash flow generation (10%+ yield), high returns on invested capital (20%+), and compelling valuation.  You can read our original report [...]

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ARP’s Revenue “Air-Pocket”, FCF Is Still Impressive, The Outlook from Reprographers

October 6, 2009 – 3:26 pm

ARP shares are off sharply today in response to a press release in which the company announced it was lowering guidance for the year and had recently completed an amendment to its credit facility.  You can find all of the details here.  Overall, the  company reduced its full year EPS guidance from $0.50-$0.75 to $0.27-$0.33, [...]

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The Forensic Accountants Were Defrauded, Huron Consulting Caught in an Accounting Scandal

July 31, 2009 – 6:44 pm

Huron Consulting announced an earnings restatement, changes to management and lowered guidance for the fiscal year after the close today – in short a complete disaster for shareholders.  The most surprising of these announcements relates to what appears to be accounting fraud that was instituted between certain employees of the company and four businesses the company acquired between 2005 and [...]

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Despite Weakness in the AIA Billings Index, Channel Checks Suggest Another Quarter of Upside Out of ARP – Looking at the Company’s Next Growth Vehicle

July 31, 2009 – 2:00 pm

We continue to recommend purchase of ARP shares, even after the 50% gain in the stock since we first introduced the idea.  The company will report results on August 6th, after the market close. We have received a few questions from investors about the potential for a revenue or earnings short fall from ARP given the recent [...]

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