Michaels Stores (MIK) reported earnings Thur 17 March 2016 (b/o)

** charts after earnings **

 Michaels Stores beats by $0.03, beats on revs; guides Q1 EPS below consensus; guides FY17 EPS in-line; announces $200 mln buyback :

• Reports Q4 (Jan) earnings of $0.87 per share, $0.03 better than the Capital IQ Consensus of $0.84; revenues rose 4.6% year/year to $1.68 bln vs the $1.65 bln Capital IQ Consensus.
  • Comparable store sales increased 3.1%, or 4.7% on a constant currency basis.
  • As a percent of sales, gross profit decreased 30 basis points to 40.9% compared to 41.2% in the fourth quarter of fiscal 2014. The decline was driven by clearance activity as part of ongoing department resets; the negative impact of foreign exchange rates; a shift in sales mix; and investments to improve the in-store environment. The decrease was partially offset by improved sourcing and pricing efficiencies. 
• Co issues downside guidance for Q1, sees EPS of $0.34-0.36 vs. $0.38 Capital IQ Consensus; comps +1.9-2.4%.
• Co issues in-line guidance for FY17, sees EPS of $1.88-1.96 vs. $1.92 Capital IQ Consensus; total sales including Lamrite West +8-9%; comps +2.2-2.7%. 
• The Company expects that the integration of Lamrite West will create near-term pressure on operating margin in fiscal 2016, reflecting the timing of profit recognition of the product Michaels procures through Lamrite West; the incorporation of the wholesale business, which has a lower gross margin rate than the Michaels business; and additional investments needed to integrate and enhance combined capabilities.
• Board of Directors has authorized the Company to purchase, from time to time, as market conditions warrant, $200 million of the Company's common stock.

Michaels Stores (MIK) reported earnings Thur 3 Dec 2015

** charts before earnings **

 ** charts after earnings **

Michaels Stores beats by $0.01, reports revs in-line; guides Q4 EPS :

• Reports Q3 (Oct) earnings of $0.37 per share, $0.01 better than the Capital IQ Consensus of $0.36; revenues rose 3.4% year/year to $1.17 bln vs the $1.17 bln Capital IQ Consensus. Comparable store sales increased by 1.5% or 3.1% on a constant currency basis.
• Co issues in-line guidance for Q4, sees EPS of $0.82-0.85 vs. $0.85 Capital IQ Consensus Estimate. Sees fourth quarter comparable store sales growth of 0.5% to 1.5% or 1.9% to 2.9% on a constant currency basis, operating income of $308 to $319 million.

Michaels (MIK) began trading on the NASDAQ on 27 June 2014

The Michaels Companies, Inc. owns and operates a chain of arts and crafts specialty retail stores in North America. The company's stores offer approximately 36,000 stock-keeping units in arts, crafts, scrapbooking, floral, framing, home dcor, seasonal offerings, and children's hobbies. As of August 2, 2014, it owned and operated 1,147 Michaels stores in 49 states and Canada; and 117 Aaron Brothers stores. In addition, the company, through its subsidiary, Artistree, manufactures precut mats and custom framing merchandise. The Michaels Companies, Inc. was founded in 2013 and is based in Irving, Texas.

Crafts retailer Michaels raises $473 million in IPO

(Reuters) - Michaels (MIK) said on Thursday it had raised about $472.6 million in its initial public offering after pricing shares at $17, the lower end of an expected range.

The $17 per share price values the arts and crafts retailer at up to $3.45 billion.

Michaels' IPO said it had sold all 27.8 million shares on offer, as it priced at the lower end of the expected range of $17-$19 per share.

Michaels, which owns several private brands such as Recollections, Artist's Loft and Loops & Threads, competes with Hobby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores Inc (WMT.N).

Michaels, the largest arts and crafts specialty retailer in North America, sells scrapbooking and papercraft supplies, apparel and framing accessories, kids clothing, home and ceremony decor.

The retailer, with more than 1,200 stores and about $4.6 billion in sales in fiscal 2013, also offers customized invitation cards and courses in baking, and beading and jewelry making.

Michaels reported a rise of 9 percent in net sales to $4.57 billion between 2011-2013. Net income rose 55 percent to $243 million during the same period.

Michaels, which was taken private by Blackstone Group LP and Bain Capital LP for $6 billion in 2006, filed for an IPO of up to $500 million in March 2012.

That, however, was postponed after then-Chief Executive John Menzer had a stroke and stepped down.

Bain Capital and Blackstone Group currently own 93 percent of the company as Michaels Holdings LLC, which was formed following the reorganization of Michaels into a holding company structure in July 2013.

The two private equity firms will own about 80 percent of the company after the IPO, if underwriters do not exercise their option.

Michaels said in April it was hit by a security breach of customer payment cards and about 400,000 cards were potentially affected by the breach, which occurred between June 26, 2013, and February 27, 2014.

Michaels, which has about $3.7 billion in debt as of May, said it plans to use the proceeds from the offering to redeem $466 million of Holdco notes, issued in July 2013.

The company is expected to debut on the Nasdaq on Friday under the symbol "MIK".

J.P. Morgan and Goldman Sachs were lead underwriters to the offering.

IPOs this week : June 23 - 27, 2014 (wk 26)

There are currently 17 IPOs on the calendar to price and begin trading in the week beginning June 23.

According to Renaissance Capital, 134 IPOs have priced in the United States so far this year, up 63.4% from a year ago. Total proceeds raised come to $28.9 billion, up almost 55% from 2013. Last week alone, $3.1 billion poured into IPOs.

The most closely watched of the coming week’s IPOs will be GoPro Inc., maker of a hands-free, high-definition video camera that can be attached to a variety of objects, animals or people in motion. The company is looking to raise about $400 million at a valuation north of $2.78 billion.

The company will have both Class A and Class B shares, with Class B shares entitled to 10 votes per share and Class A shares one vote per share. Holders of Class B shares will hold more than 98% of the voting power, and nearly 73% of the Class B shares will be held by executive officers and directors. The CEO will hold 47.7% of the voting power in the company.

GoPro plans to offer 17.8 million shares of stock in an IPO range of $21 to $24. Half the shares are being sold by the company and half by selling shareholders. Underwriters, including J.P. Morgan, Citigroup and Barclays, have a 30-day option on an additional 2.67 million shares. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol GPRO.

ServiceMaster Global Holdings Inc. owns or franchises more than 7,000 residential and commercial services locations that provide disaster restoration, home inspections and termite and pest control services, among other things. The company has filed sell 35.9 million shares in an expected price range of $18 to $21. All shares are being sold by the company. At the midpoint of that range, the company expects to raise $700 million at a valuation of $2.5 billion. Shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol SERV.

Arts and craft retailer The Michaels Companies has filed to sell 27.8 million shares in an expected price range of $17 to $19. The company expects to raise $500 million at a valuation of $3.66 billion. The company owns 1,263 stores under the Michaels and Aaron Brothers brands and generated about $4.6 billion in sales in its most recent fiscal year, which ended February 1, 2014. The company posted a net profit of $243 million last year. Shares are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol MIK.

Alternative energy spin-off NextEra Energy Partners L.P. is being carved out of NextEra Energy Inc. (NYSE: NEE). The new limited partnership plans to sell 16.3 million shares in an expected range of $19 to $21 to raise $325 million at a valuation of $1.52 billion. We covered the structure of this company last week. NextEra Energy Partners is planning to price the offering on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol NEP.

Adeptus Health Inc. is a private emergency room operator that plans to offer 4.9 million shares in an expected range of $19 to $22. Shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol ADPT.

Ambrx Inc. is a biotechnology company developing protein therapeutics. The company plans to offer 5.4 million shares in an IPO price range of $12 to $14. Shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol AMBX.

Amphastar Pharmaceuticals Inc., a specialty pharmaceuticals maker, plans to offer 7.4 million shares in a price range of $10 to $12, raising $81 million at a valuation of $470 million. Shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol AMPH.

Imprivata Inc. is a health care technology solutions company that plans to offer 5 million shares in a price range of $14 to $16, raising $75 million at a valuation of $342 million. Shares are expected to price on Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol IMPR.

KineMed Inc. is a commercial stage biotech firm that plans to offer 4.5 million shares in an IPO range of $6.50 to $7.50. Shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol KNMD.

Materialize N.V. is a Belgium-based company that provides 3D printing software and services. The company plans to offer 8 million American Depositary Shares (ADSs) in an expected price range of $12 to $14. Each ADS represents one ordinary share, and the ADSs are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol MTLS.

Microlin Bio Inc. delayed its offering from last week. It is a development stage diagnostics and therapeutic company that expects to offer 4.3 million shares in a price range of $6.50 to $7.50. The company plans to price the shares on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol MCLB.


Xunlei Ltd. claims to be China’s 12th-largest Internet company. The company plans to offer 7.3 million shares in a price range of $9 to $11. The company plans to price the shares on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol XNET.


Minerva NeuroSciences Inc. is a clinical-stage biopharma company that plans to offer 5.5 million shares in a price range of $10 to $12. The company plans to price the shares on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol NERV.

TCP International Holdings Ltd. is a Switzerland-based maker of LED and CFL lighting technologies. The company plans to offer 7.1 million shares in an IPO price range of $13 to $15, and it plans to price the shares on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol TCPI.

GlobeImmune Inc. is a biopharma firm developing treatments for cancer and other diseases. The company plans to offer 1.6 million shares at a price range of $15 to $17. It plans to price the shares on Thursday and begin trading Friday on the Nasdaq under the ticker symbol GBIM.

Moko Social Media Ltd. is an Australia-based developer of mobile social community platforms. Shares trade in Australia and have traded over-the-counter in the United States. The company plans to offer 1.2 million ADSs in an IPO price range of $7.50 to $9.00. Each ADS represents 40 ordinary shares. The company plans to price the shares on Thursday and begin trading Friday on the Nasdaq under the ticker symbol MOKO.

Taggares Agriculture Corp. plans to acquire, redevelop and operate profitable farmland in the Pacific Northwest. The company aims to sell 7 million shares in a price range of $6 to $7. And it plans to price the shares on Thursday and begin trading Friday on the Nasdaq under the ticker symbol TAG.