Hart
Capital Management Inland Northwest Index Movers:
Northwest Bancorp ended up 10.3% for the week, up 50.0% Year-to-Date.
Clearwater Paper ended up 7.4%
for the week, down 7.0% Year-to-Date.
Ambassadors Group ended up 7.0% for the week, up 21.7% Year-to-Date.
Red Lion Hotels ended up 5.4% for the week, up 21.1% Year-to-Date.
Coldwater Creek ended down 3.8% for the week, down
13.6% Year-to-Date.
Itron ended down 6.0% for the week,
up 16.5% Year-to-Date.
The Hart Capital
Inland N.W. Index's weekly performance was +1.3% and the S&P 500 weekly performance was +1.8%.
Itron (ITRI) traded lower for the
week after reporting first quarter results. The Company reported first quarter
earnings per share of $0.91 with $572 million in revenue. Analysts were
expecting first quarter earnings per share of $0.93 and revenue of $550 million.
Analysts viewed these as mixed results, as stronger than anticipated topline
results did not translate into a bottom line beat. LeRoy Nosbaum, Itron’s
President and Chief Executive Officer, stated in the press release that “Our
expenses are higher compared to last year as we are building the Energy and
Water sales team in Latin America and Asia-Pacific, undertaking new product
development projects globally, and implementing a global ERP system and
organization structure to support new global operations.” During the quarter
the company repurchased 282,000 shares at an average price of $37.56 and is now
40% through the authorized $100 million buyback program that extends through
the third quarter. Potential contract announcements in the second half of 2012
and 2013 are likely major catalysts.
Ambassadors Group (EPAX) traded
10% higher for the week after reporting better than expected quarterly results.
The Company reported a quarterly earnings per share loss of $0.45 with revenue
of $2.5 million. Analysts were expecting a quarterly loss of $0.49 with revenue
of $1.8 million. First quarter results for Ambassadors Group are not extremely
meaningful due to the seasonality of their business. The Company recognizes a
vast majority of their revenue during the second and third fiscal quarters.
Total enrolled revenue was $142 million as of period end, which is down 8.1%
from the same point last year. On a positive note, investors were able to see
management’s cost cutting initiatives during the quarter. Operating expenses were
down $1.6 million year over year with decreases in the sales and marketing and
corporate overhead. Management reaffirmed fiscal 2012 guidance of revenue
between $135 and $145 million, gross margin between 36% and 38%, and net income
before special items between $3 and $5 million.
Clearwater Paper (CLW) traded 10%
higher after reporting first quarter results. The Company reported earnings per
share excluding special items of $0.44 with revenue of $458 million. Analysts
were expecting quarterly earnings of $0.43 with revenue of $462 million. GAAP
earnings of $0.16 were impacted by a $6.7 million, or $0.28 per share charge,
associated with the conversion of cellulosic biofuel credits to alternative
fuel mixture credits. Despite falling short on Analysts’ revenue expectations,
the Company was able to beat earnings estimates though better Consumer Products
results. The outperformance in Consumer Products was related to lower pulp
input costs and operating efficiency resulting in a segment operating income
margin of 9.5%.
Potlatch (PCH) traded higher after posting first quarter
results. The Company reported earnings per share of $0.13 with revenue of $113
million. Analysts were expecting quarterly earnings per share of $0.06 with
revenue of $109 million. Management reconfirmed their fiscal 2012 harvest level
of 3.5 million tons. Management also expects lumber and plywood prices to
remain firm throughout the year, along with strong performance from the Wood
Products segment. The Wood Products segment stood out in terms of quarterly
performance, which benefited from increased lumber and plywood prices, strong
pricing, and improved productivity. As of quarter end the Company had $59
million in cash and short-term investments on their balance sheet.
Sterling Financial (STSA) was up 1.3% for the week after
reporting first quarter 2012 financial results. The company reported earnings
per share of $0.21 versus consensus estimates of $0.28. Sterling
announced their non-performing assets fell by $278.8 million, a 44% decrease
year over year. The Company also commented on their acquisition of First
Independent Bank, stating that the acquisition added $350.1 million in loans
and $695.9 million in deposits. First Independent Bank will add 14
branches to Sterling’s portfolio, increasing the Bank’s presence in the
Portland/Vancouver area.
Intermountain Community Bancorp (IMCB) recorded their second
consecutive quarter of profitability with earnings per share of $0.01. The Company
had interest revenue in the first quarter of 2012 of $9.1 million compared to
$10.5 million in the first quarter of 2011, but again, cut operating
expenses. Intermountain has committed to reining in operating expenses
and year over year they successfully reduced them by $1.4 million, or
15%.