Monthly Archives: July 2014

2014
07/31

Category:
Revenue

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Beasley nets a profit despite revenue being down

The Beasley Broadcast Group Inc., a radio station operator based in Naples, reported Friday that it managed to increase profits in the second quarter even as advertising revenue declined.

Beasley reported net income of $3 million, or 13 cents a share, in the quarter ended June 30, up from $2.4 million, or 10 cents a share, in the same period a year ago.

Beasley operates 44 stations, 28 FM and 16 AM, in 11 large- and mid-size markets in the United States. The company owns four FMs and one AM in the Naples-Fort Myers market including: Sunny 106 WJPT-FM, B103.9 WXKB-FM, 96 K-Rock WRXK-FM, ESPN Radio 99.3 WWCN-FM and 770 AM ESPN Deportes WJBX-AM.

Additionally, The Link, a modern adult contemporary format, can be heard through four FM translators at 96.5 and 98.1 in Lee County and 101.5 and 105.1 in Collier County.

The local stations were among four clusters of stations that reported revenue gains in the quarter, said Carolyn Beasley, chief financial officer. The other seven clusters reported revenue drops.

Lower net revenue in the 2014 second quarter was partially offset by a $400,000 reduction in station operating expenses.

Advertising revenue is expected to get a lift in the second half of the year from political advertising, she said.

Despite Q2 industry ad spending in our largest markets, the radio ad environment generally remains healthy, Beasley said.

The most recent net income results were impacted by a pre-tax $1 million fee incurred in connection with debt pre-payment and a non-cash pre-tax charge of $1.3 million for loss on extinguishment of long-term debt incurred in connection with an amended credit agreement and debt pre-payment, the company said.

The company had $25.9 million in revenue for the quarter, down 3.6 percent from $26.9 million in 2013s second quarter.

The $1 million decline in revenue primarily reflects lower advertising revenue at the companys Philadelphia, Wilmington and Greenville-New Bern-Jacksonville, NC, market clusters, the company said.

The decline in net revenue was partially offset by $700,000 in other revenue, resulting from an agreement with an electronics company and its affiliate concerning the use of Beasleys and the other companys respective logos.

2014
07/30

Category:
Revenue

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This Chart Is The Clearest Sign That Apple Revenue Is About To Explode

This chart comes from Katy Huberty of Morgan Stanley. Its based on her reading of Apples latest quarterly filing with the SEC.

She says the off-balance sheet commitments confirm major product ramps later this year. As you can see, it would therefore also confirm Apples revenue is going to explode.

What is an off-balance sheet commitment?

Huberty says theoff-balance sheet commitments are for third-party manufacturers, component purchases, commitments for product tooling/manufacturing process equipment, advertising, research and development, and internet and telecommunications services.

The commitments for third-party manufacturers and component purchases were $15.4 billion at the end of the June quarter, which was up 22% on a quarter-over-quarter basis. Commitments for the rest of it product tooling/manufacturing process equipment, advertising, research and development, and internet and telecommunications services was $5.6 billion, up 100% on a quarter-over-quarter basis.

That makes the total commitment $21 billion, which is the highest since just before the iPhone 5 launched. (After scanning Apples 10-Qs, we think this is the highest ever for a June quarter.) The growth of the total commitments is 46% on a year-over-year basis. On a quarter-over-quarter basis, commitments were up 36%, which is the highest sequential growth for a June quarter since 2007 when Apple started selling the iPhone, says Huberty.

She believes this ramp in commitments means two things: 1. The iPhone 6 is going to be really big, and Apple is ramping up for it. 2. Apple has the iWatch coming, and its buying tools for its manufacturing partners to start cranking out iWatches.

Theres a risk that shes using the numbers to justify her own opinions on Apples product roadmap. But, historically, the off-balance sheet commitments have a 97% correlation with revenue growth. This year, Apple ramped off-balance sheet commitments earlier than usual, which Huberty thinks is evidence that its getting ready to launch the iWatch, which is a new product category.

All of that said… You dont really need a chart or a peek at off-balance sheet commitments to figure revenue is ready to spike. All reports point to a big iPhone release this fall, an iWatch, maybe a new Mac, and possibly something in the payments space. Those things are naturally going to generate record levels of revenue for Apple.

2014
07/30

Category:
Finance

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OVERNIGHT FINANCE: Obama pushes to close tax loophole

Three points:

1.) What Obama said: “I think most people would say if you’re doing business here… but you’re simply changing your mailing address in order to avoid paying taxes, then you’re really not doing right by the country and by the American people… You’re just gaming the system.”

2.) What Obama wants: The White House wants Congress to pass a tax inversion fix-it bill ASAP that’d retroactively make any company that dodged taxes since May 2014 (hence the name “retroactive inversions”) fork-up the cash. Republicans are critical of passing any type of legislation that’s retroactive.

3.) Dems are divided. While many Dems cozied-up to big business recently on issues like reauthorizing both Ex-Im and Terrorism Risk Insurance, Obama’s new push for retroactive inversions could cause a headache for some 2014 Dems. Case-in-point: Finance Committee member Sen. Mark Warner (D-Va.), who dodged questions today about whether he would support a retroactive inversion bill. Still, even if the Senate did pass the bill, it’s unlikely the House pass the measure.

THIS IS OVERNIGHT FINANCE, and tomorrow is Friday. Tweet: @kevcirilli; email: kcirilli@thehill.com; and subscribe: http://thehill.com/signup/48.

NEWS YOU CAN USE –gt; Capital Weather Gang says we’re in for some great weather next week. Sunny skies in the mid-80s: http://wapo.st/1AcEvOp.

BIG DEAL: EU FOLLOWS US WITH RUSSIA SANCTIONS? Justyna Pawlak and Adrian Croft reporting from Brussels for Reuters: “The European Union would target state-owned Russian banks vital to financing Moscows faltering economy in the most serious sanctions so far over the Ukraine crisis under proposals considered by EU governments on Thursday.

“Ambassadors of the 28-nation bloc met in Brussels to discuss options drafted by the executive European Commission in response to the downing of a Malaysian airliner in an area of eastern Ukraine held by Russian-backed separatists. Decisions are likely next week at the earliest.

“In one key measure, European investors would be banned from buying new debt or shares of banks owned 50 percent or more by the state. These banks raised almost half of their 15.8 billion euro ($21 billion) capital needs in EU markets last year…

— MERKEL’s MOVE: via Reuters: “A spokesman for German Chancellor Angela Merkel said on Wednesday she wanted to see quick decisions, adding that EU leaders had expressed their readiness last week to hold a special summit if necessary to approve the measures.” http://reut.rs/1qCyg4G.

— HOW IT PLAYED IN RUSSIA, via columnist Ivan Sukhov for The Moscow Times: “The most frightening possible result of sanctions is that the West could nail shut the ‘window to Europe’ that Russia has been laboring hard to develop ever since Peter the Great first built it at tremendous cost in the early 18th century.” Read this, it’s a smart-take from the Maureen Dowd of Russia: http://bit.ly/1z90STr.

BOEHNER: NO CR UNTIL SEPTEMBER. Cue the music, Wake me up, when September ends. That’s right folks, House Speaker John Boehner (R-Ohio) said that the House won’t take up the CR this month and instead will wait until September.

The government will shut down on Oct. 1 without a funding bill. How short will the CR be? “I imagine it will go until early December,” Boehner told reporters at his presser today on the Hill. That means we could be doing the same thing just in time for the holidays. Cristina Marcos with the recap: http://bit.ly/1kZi0D0.

DAYS UNTIL EX-IM EXPIRES: 68. From my piece for the hometown paper earlier this morning: “Democrats think they have the upper hand with Republicans in the fight to renew the Export-Import Bank. Seeing a chance to cozy up to the business community, Democrats have rallied around renewing the bank and say it should be included as part of a bill to fund the government that Congress must pass before the end of September.

“That puts significant pressure on Republicans, who are divided over renewing the Export-Import Bank’s charter in the first place. By marrying Ex-Im to the government funding measure, Democrats believe they can go on offense by threatening to blame the GOP for a possible government shutdown over refusing to fund an institution that has had bipartisan support for decades.

“Without a new funding bill by the end of September, the government will shut down. The Export-Import Bank will also shut down on Oct. 1 without a new authorization.” http://bit.ly/WLMinh.

QUOTABLE, House FinServ Committee Chairman Jeb Hensarling (R-Texas), on Rep. Patrick McHenry (R-NC), who will hold a subcommittee hearing on Ex-Im next week on allegations of Ex-Im cronyism: “At our recent Financial Services Committee hearing on Ex-Im reauthorization, the Bank’s chairman refused to answer repeated questions about whether he was aware of a criminal investigation into these allegations.  So I’m pleased [McHenry’s subcomm] is taking this action.

NOTABLE: THE END OF CHEAP CHOCOLATE, Marcy Nicholson for Reuters: “Hershey Co., one of the worlds best known names in chocolate, expects its first price hike in three years to crimp short term sales, but over the long haul the popularity of chocolate will prevail, the companys chief executive said on Thursday.”http://reut.rs/1z99iuj.

SUABLE? BARACK OBAMA. From The Hill’s Elise Viebeck: “The House Rules Committee on Thursday approved a resolution that would authorize Speaker John Boehners (R-Ohio) lawsuit against President Obama over his use of executive power.

“The panel voted along party lines to move forward with the legal challenge against Obama over his delay of the healthcare laws employer mandate, which Republicans say was outside his authority as president. The House is expected to approve the lawsuit before lawmakers leave town next week for a five-week summer recess.” http://bit.ly/1rPHdoq

SIDESHOW: Kristen Bell plays Mary Poppins in a new ‘Funny or Die’ spoof on the timeless Disney tale. In it, the nanny quits her job because her wages are too low. “Well, isn’t that supercalifragilisticexpiali-BULLSH-T,” Poppins quips in the clip. WATCH HERE: http://bit.ly/1rygygJ.

FLASHBACK — OBAMA: ‘I’M LEBRON, BABY!’ Sen. Barack Obama (D-Ill.) made his speech to the Democratic National Convention ten years ago today. And just minutes before his introduction to a national audience, he quipped to a reporter at The Chicago Sun Times: “I’m LeBron, baby. I can play on this level. I got some game.” C-SPAN has O’s DNC speech: http://bit.ly/1bUGMRS.

RYAN’s WAR ON POVERTY, via Bernie Becker: “House Budget Committee Chairman Paul Ryan (R-Wis.) on Thursday unveiled a sweeping new package of proposals to battle poverty that he says will help low-income people currently bogged down by the federal bureaucracy.”

“The centerpiece in Ryan’s new plan is what he calls the Opportunity Grant — a program that would consolidate as many as 11 separate federal initiatives into a single chunk of funding for states.”

“In a speech at the American Enterprise Institute on Thursday, Ryan said that the setup would aid state governments and local organizations that should be the ‘front lines’ in the war on poverty, instead of the federal bureaucracy.” http://bit.ly/WGmIQQ.

STATE OF PLAY – ECONOMY EDITION: Lucia Mutikani, for Reuters: “The number of Americans filing new claims for unemployment benefits fell to the lowest level in nearly 8-1/2 years last week, suggesting the labor market recovery was gaining traction.

“While another report on Thursday showed a sharp decline in new homes sales in June, economists cautioned against reading too much into the drop, noting that other data have pointed to housing getting back on track after stalling in late 2013.”http://reut.rs/WFzuyN.

 

CONNECT WITH THE HILL’s FINANCE TEAM – Write us with tips, suggestions and news: vneedham@thehill.com; pschroeder@thehill.com; bbecker@thehill.com;kcirilli@thehill.com.

–Follow us on Twitter: @VickofTheHill; @PeteSchroeder; @BernieBecker3; and@kevcirilli.

2014
07/29

Category:
Finance

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Report: Finance and accounting employee confidence drops

Finance and accounting employee confidence fell in the second quarter after reaching a near seven-year high in the first quarter, according to The Randstad Professionals’ Finance Accounting Employee Confidence Index.

The index dropped to 58 in the second quarter down 6.3 points from the first quarter. Despite the overall decline in employee confidence among professionals in this sector, the index remained above 50, which indicates a positive reading.

Atlanta-based Randstad US said despite lower confidence levels among many of the index measurements, the finance and accounting sector remains one of the most promising and in-demand professions in the labor market. The Bureau of Labor Statistics indicates between 2012 and 2022 nearly 167,000 more accounting jobs will be created, representing a 13 percent growth rate.

The online survey found 36 percent of finance and accounting workers believe more jobs are available this quarter.

Additionally, 55 percent of finance and accounting workers feel confident in the future of their current employer, down 16 percentage points from the first quarter. This may be fueling the significant increase in the number of finance and accounting employees likely to look for a new job in the next 12 months, jumping from 24 percent to 39 percent in the second quarter, the company reported.

Rebecca Callahan, group president of Randstad’s Professional Solutions, said advances in technology are demanding new skills and competencies from CFOs and their staff.

“The influence of big data has required expertise and tools to support data modeling and analysis, and the ability to extract data to aid business intelligence,” Callahan said in a statement. “At the present time, there is a skills gap in the finance and accounting field, largely due to a lag in updated university curriculums that prepare these professionals to also be business strategists. Candidates that possess these skills are the most sought-after talent among our clients.”

2014
07/29

Category:
Filing Bankruptcy

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Credit Card Consolidation Loan Talks About Bankruptcy And Credit Card Debt

(PRLEAP.COM) July 22, 2014 – Credit Card Consolidation Loan shared in a recent article some of the questions a consumer with huge credit card debt needs to ask himself before filing for bankruptcy. The article titled Questions To Ask Before Filing Bankruptcy For Your Credit Card Debt aims to help consumers understand how bankruptcy can affect their lives.

The article starts off by highlighting the fact that there has been a decline in bankruptcy filing compared to previous years. But the decline, which is about 7% from last year, still finds a lot of people heading to bankruptcy courts to get help with their debt. Last year saw an average of 131 consumers filing for bankruptcy every single day. In 2014, there has been over 400,000 consumers who has filed for bankruptcy in almost the first half of the year. It shows that in May 2014 alone, there were over 4,000 filings.

With all these people seeking reprieve from debt through bankruptcy, there are some questions that can help get consumers do a self assessment and see if bankruptcy is right for them. The first one is credit counseling. Apart from being a mandated counseling session for people filing for bankruptcy, it can help identify other possible debt relief options that are available to consumers.

The next one is source of income. The article shares that bankruptcy is not only for people without income, it can also be for people who has sources of funds but may not be enough to pay for all the expenses. Another one is lowering standard of living. Being able to lower down expenses can help free up some funds to make extra payments over to financial obligations.

Another question to ask is if negotiations with creditors has been done already. it is best to try and talk to creditors and lenders first before filing for bankruptcy. They might be sympathetic to the consumers cause and allow for a lower monthly payment. Doing an inventory of assets is another thing to look into. A Chapter 7 bankruptcy will see that the assets are liquidated to be able to pay off the debt. But a Chapter 13 will not seize the payments and will just structure a payment schedule with creditors.

To read more about the article,, click on this link: http://creditcardconsolidationloan.org/questions-to-ask-before-filing-bankruptcy-for-your-credit-card-debt/

2014
07/29

Category:
Finance

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Springtime for lenders

AS ANY fruit enthusiast knows keeping track of the seasons is important. Looking for strawberries in winter or apples come the summer is bound to result in high prices, poor quality or both. Curiously,new researchby Justin Murfin of Yale University and Mitchell Petersen from the Kellogg School of Management, suggests that the same is true of finance.

They examined 30 years of corporate loans and found that the spread (or excess interest rate) that firms pay varied depending on when the debt was issued, with borrowing costs peaking in February and August. Credit is cheapest to obtain in the spring, when it is 19 basis points (19-hundredths of a percentage point) cheaper compared with the peak of the cycle. Why does this pattern persist? Surely once the cycle was observed both sides of the market would have an incentive to arbitrage the price differential away. For example, borrowers could take on loans when spreads were at their seasonal low points, or financial companies might offer more credit when yields are comparatively high. Supply and demand would then adjust to compete away any yearly price cycle. For this seasonal pattern to exist, then, both sides of the market must be unable, or unwilling, to arbitrage the difference.

Indeed some companies are able to take advantage of this seasonal pattern. The authors find that highly rated firms are able to stock up on credit when rates are low to cover their future liquidity needs. However, firms with a lower rating are generally charged a higher interest rate, which makes this strategy unviable. Instead they go to the market when they need additional funds – for example to pay for a new investment which may be time sensitive and thus cannot be deferred. A significant portion of the market is forced to issue debt as their needs arise.

Why lenders do not vary their supply in response to this seasonal pattern is somewhat less clear. The authors theorise that the seasonal pattern may increase banks’ profits by enabling them to price discriminate between firms. According to the theory, the periods when spreads are comparatively small allow lenders to attract companies with a low willingness to pay for credit, as these companies will be able to wait and time the market to get the best price. For the rest of the year, the higher prices increase profits from firms who have a greater need for credit and are unwilling to wait out the cycle. So by varying the price over a regular cycle lenders can charge different prices to different firms to maximise their profits. This meshes with the volumes of loans that are traded over the cycle with banking activity highest when rates are low.

However, this theory only holds for an oligopoly which can avoid being undercut by competitors when prices are high. For this explanation to hold, the lenders must be at least tacitly colluding in order to maintain the price cycle. Testing for implicit collusion between firms is inherently tricky. However, the authors show that there is a positive relationship between the concentration amongst lenders and the size of the seasonal cycle, both between industries and over time. This suggests that when there are fewer banks in the market, and thus collusion is easier to maintain, they are better able to maintain the profitable price cycle. Conveniently, the ‘low activity’ periods also coincides with the winter and summer vacation. Like a good cider, it seems, the best time to take on new loans is in the spring.

2014
07/28

Category:
Filing Bankruptcy

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National Debt Relief Explains Bankruptcy Filing Costs

National Debt Relief explained in a recent article published last July 15, 2014 that filing for bankruptcy carries a substantial cost to consumers. It lists down the cost items to look out for when planning to file for bankruptcy.

New York, NY (PRWEB) July 17, 2014

National Debt Relief shared in a recent article published last July 15, 2014 that filing for bankruptcy carries a substantial cost to consumers. The article titled “Before Filing For Bankruptcy, Make Sure You Can Afford It!” explains the possible expense items in case a debtor decides to file for bankruptcy.

The article starts off by citing that the cost of filing for bankruptcy may have contributed to the recent housing crash. This is because as consumers were unable to discharge their debts through bankruptcy because of the cost involved, they were forced to just default on their mortgage loans.

When filing for bankruptcy, the article shares that the primary expense would be attorney fees. This can make up majority of the cost involved as it can range anywhere from $600 to $5,000. Exact figures are dependent on the type of bankruptcy case you will file and the start where the case will be filed. But there are pro bono lawyers who can help with the case without asking for a single cent.

Attorney fees can really take its toll on the overall expense of bankruptcy filing costs. When a debtor wants to forego this expense, the next logical step is to pay for the services of a bankruptcy petition preparer. They will assist in preparing the petition and would cost anywhere between $100 to as high as $300. The final cost would depend again on the type case being filed in court.

The article explains as well how the US bankruptcy court mandated a debtor filing for bankruptcy to undergo credit counseling. Usually given to a debtor by an accredited agency, this counseling can also cost around $50 from your own pocket.

Filing fees will also have to be considered when filing for bankruptcy and can cost about $280 to $310. But if it is a Chapter 7 case, there is a possibility to get the filing fee waived provided there is proof that the income of the debtor is less than the 150% of the poverty line.

Another cost item in filing for bankruptcy is the trustee fee. This is specific for a Chapter 13 case where the court appoints a trustee to oversee the repayment plan of the debtor. The fee is usually a percentage of the repayments and not a specific dollar amount.

To read the rest of the article, click on this link: [http://www.nationaldebtrelief.com/filing-bankruptcy-make-sure-can-afford/

For the original version on PRWeb visit: http://www.prweb.com/releases/bankruptcy_cost/for_debtors/prweb12022967.htm

2014
07/28

Category:
Finance

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Low interest rates leave Alaska Housing Finance Corp. high and dry

JUNEAU — The Alaska Housing Finance Corp. is hurting, and what it needs to get better is for Alaskans to pay more for their mortgages.

The state-owned housing agency makes most of its money from its central business of borrowing money on Wall Street and lending it to Alaskans to buy homes. It also finances multifamily developments and public housing projects and carries out missions such as home weatherization funded by the Alaska Legislature.

2014
07/27

Category:
Finance

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Alibaba’s maturity mismatch

YuE Bao offered investors more than 6% on an annualised basis at the end of last year. Recently, it has paid out just over 4%: only a little higher than standard bank deposits and less attractive than the wealth-management products sold by banks.

Sure enough, savers have started to look the other way. Inflows into the Yu’E Bao fund have ebbed. It received 130 billion yuan in the fourth quarter of 2013 and 356 billion yuan in the first quarter of 2014 – but only 33 billion yuan over the past quarter. As the first chart shows, inflows into Yu’E Bao are now moving in the opposite direction to the maturity of its assets, hardly the kind of trend that a fund wants to see.

Jack Ma, the founder of Alibaba, vowed last year to disrupt the banking sector by pushing into Internet finance. On that count, Yu’E Bao has lived up to its promise. Along with inspiring other tech companies to launch similar funds, Alibaba has also prodded banks into offering more investment products. Mr Ma should be applauded for helping to make China’s banking system more competitive. But if Yu’E Bao spawns trouble, the applause will not last.

2014
07/27

Category:
Filing Bankruptcy

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Student Loan Forgiveness Bankruptcy Law: It Just May Help You

Student loan forgiveness bankruptcy law is a tricky subject. On Friday, the Washington Post reported on the debut of Ivory Tower, a film directed by Andrew Rossi which explores the forces driving up the cost of tuition and pushing students to take on more debt. It opened it both Los Angeles and New York, and shows the various approaches schools are taking to help make higher education more affordable. According to the post, which is entitled, Meet the filmmaker taking on the ‘unsustainable’ student loan system, explains that Millenials say that student loan debt is their biggest set-back when it comes to debts in general:

When one goes into default or forbearance, frequently the interest is added to the principal, and so the original nut you’re responsible for keeps growing. It’s not just that the interest is accruing, but it’s being compounded. They’re also not allowed to declare bankruptcy.

The answers about student loan forgiveness bankruptcy law aren’t as clear cut as many bankruptcy attorneys would like you to think. Yet, with tuition prices rising higher every day and more and more graduates finding it much more difficult to attain and maintain employment, it is no wonder that many feel hopeless. Bankruptcy can be a four letter word and in most circumstances, it is best to stay away from filing if you have any other options. To many people bankruptcy can sound like a death sentence and to some it can sound like a fresh start. But, is it the right option to get out of paying student loan debt?

There are many hardships that come from filing bankruptcy but also many upsides if it turns out to be the best option available to you. The important thing is to understand the differences between the two types you can file and if you qualify in the first place. There are two types of bankruptcy for which to file your case: Chapter 7 and Chapter 13. To determine which to file, you must first know what you want to get out of the process, and know the student loan forgiveness bankruptcy law.

How Can Chapter 13 Help with Student Loan Forgiveness?