Update on Textura (NYSE: TXTR)

On June 6^th on the blog, I posted an article in which I mentioned PlanSwift’s estimated sales volume (at the time, my estimate of PlanSwift’s sales, based on my interpretation of what I’d read in Textura’s write-up of its business) - $500k per month, $6 million annualized.

More recently, Textura held an earnings-call, right after it released its most recent quarterly financial results, and, in the written transcript of that earnings call, here’s one of the statements Textura’s CEO made:

“Organization driven revenue increased by 235% year-over-year to $2.3 million and represented the remaining 25% of our total revenue. The drivers here were 79% year-over-year growth and the number of organizations to more than 8200, the PlanSwift solution accounting for 3,081 of these organizations and $1.5 million in revenue (in the most recent 3 month period.)

So, my estimate of PlanSwift’s annualized revenues were accurate.

Moving on, Textura’s stock price has soared since I last wrote about the company on Repro 101.

Today, the market is down, Textura is trading at $34.00 per share.  That’s considerably more than Textura’s IPO price and considerably more that Textura’s closing price the day it went public.

I noticed this, just a couple of days ago.  “Textura Corp Price Target Increased to $36.00 by Analysts at Credit Suisse.” (Article found on “UtahPeoplesPost.com”, Posted by JAGS Staff on Aug 12th, 2013)

Research analysts at Credit Suisse increased their target price on shares of Textura Corp (NASDAQ:TXTR) from $33.00 to $36.00 in a report released on Friday, AnalystRatings.Net reports. The firm currently has an “outperform” rating on the stock. Credit Suisse’s price target suggests a potential upside of 8.27% from the company’s current price.

A number of other analysts have also recently weighed in on TXTR. Analysts at Oppenheimer raised their price target on shares of Textura Corp from $35.00 to $36.00 in a research note to investors on Thursday. They now have an “outperform” rating on the stock. Separately, analysts at JMP Securities initiated coverage on shares of Textura Corp in a research note to investors on Monday, July 8th. They set an “outperform” rating and a $38.00 price target on the stock. Finally, analysts at Barrington Research initiated coverage on shares of Textura Corp in a research note to investors on Tuesday, July 2nd. They set an “outperform” rating and a $35.00 price target on the stock.

Five equities research analysts have rated the stock with a buy rating, The company presently has a consensus rating of “Buy” and a consensus price target of $33.40.

           

Shares of Textura Corp (NASDAQ:TXTR) traded up 0.66% during mid-day trading on Friday, hitting $33.47. Textura Corp has a one year low of $19.68 and a one year high of $33.44. The stock’s 50-day moving average is currently $28.72. The company’s market cap is $733.0 million.

Textura Corp (NASDAQ:TXTR) last released its earnings data on Wednesday, August 7th. The company reported ($0.75) EPS for the quarter, missing the Thomson Reuters consensus estimate of ($0.58) by $0.17. The company had revenue of $9.40 million for the quarter, compared to the consensus estimate of $9.11 million. During the same quarter in the prior year, the company posted ($0.38) earnings per share. The company’s quarterly revenue was up 64.9% on a year-over-year basis. On average, analysts predict that Textura Corp will post $-1.59 earnings per share for the current fiscal year.

Textura Corporation is a provider of on-demand business collaboration software to the commercial construction industry.

Final comments for today’s blog post:

During the Q&A part of the recent earnings call, several of the financial analysts who participated in that call were kind of effusive with their congratulations to the CEO on the company’s most recent quarterly results.  Quite frankly, I’m never surprised when analysts make “buttery” comments to a CEO, but, being to be quite frank, Textura’s results, to me, were noting to write home about.  They lost more money than analysts estimated would be the case.  This “miss” wasn’t close.  And, the (year over year) revenue increase, to me, was not-all-that impressive.  I guess I should say, “un-spectacular.”

	3 month	3 month
	period	period
	3/1-6/30/2013	3/1-6/30/2012
	(in millions)	(in millions)
Gross Revenues	$9.362	$5.689
PlanSwift Revenues	$1.500	not applic
	$7.862	$5.689
	$7.862
	$5.689
Textura Y-O-Y revenue increase	38%	(w/o PlanSwift revenues)

  

And, Textura’s loss increased substantially.

So, here we’ve got a small company, recently gone public, $2mil increase in year-over-year quarter’s sales (if they had not acquired PlanSwift), substantial increase in quarterly loss, but with a huge amount of hype from financial analysts who cover the company.  Today, at $34.00 per share, the company’s “market cap” is $778 million.  That’s right, a company with gross annualized revenues of around $38 million, losing money, that’s worth $778 million.

Webinar from Roland on Wide-Format Printing

Expand Your Commercial Print Business with Wide-Format Printing

Tuesday, August 13, 2013  |  9:00 AM - 10:00 AM  |  FREE

While the commercial printing industry has experienced an overall decline in demand for print over the last 15 years, the demand for wide-format printed graphics is actually increasing. As a result, more and more commercial printers are looking at branching off into wide-format. Doing so, however, can present some distinct challenges. If you’re a commercial printer, join us and discover what it takes to successfully enter the lucrative wide-format market. You’ll learn about: • Wide-format applications and technologies • The Economics of Wide-Format • Inks and Substrates • Finishing • Software • Applications • ROI

Service Point Solutions reports financial results for Q2 2013 (and 1st Half 2013)

Service Point Solutions (the Spain-based public company) filed its 1^st half 2013 financial-results reports with the Spanish (Bolsa) stock exchange, the other day, and, while Sales revenues *plunged on a year-over-year basis and Service Point posted a “net loss” for the first six months of 2013, Service Point’s EBITDA and EBIT improved, quite a bit, over last year, so a good sign that Service Point’s belt-tightening (cost-reduction) program is working.  I still think that Service Point is going to be very hard-pressed to achieve revenues of at least 200 million Euros for the full year 2013. (*Note that some of the plunge in revenues, year over year, resulted from SP pulling out of France.)

I’ve posted, in my Google Docs library, SPS’ Press Release about its first half 2013 financial results; this report is in Spanish.  Here’s the link to that version of the report (and, you can download the pdf file if you want to.)

https://docs.google.com/file/d/0B81al4kFAU9JWW1Ic1VPWVhkLVE/edit?usp=sharing

If you want to translate that report into English, go to Google Translate, drag the Spanish-language pdf file into the window, and select “Spanish to English” translation.

ARC Document Solutions reports financial results for Q2 2013 (and 1st Half 2013)

I always encourage reprographers to read ARC’s financial-results-reports; they are informative, and one can learn from that.  YOU are never too old to learn.  [And NONE of you are geniuses {with the exception of David Limbaugh)].

ARC Document Solutions (ARC) reported Q2 2013 financial results, after the market closed on Tuesday, and you can access ARC’s 10-Q by visiting the investor section at e-arc.com. 

I did not listen in on the earnings call that ARC held late Tuesday afternoon, but, on Wednesday morning, I did access, and read, the written transcript of the earnings call, which can be found at seekingalpha.com.  Listening to earnings calls (or reading the transcripts of earnings calls, if you don’t have time to listen to the live earnings calls), can also be quite informative.

Here’s my very brief “takeaway” on ARC’s Q2 results:

Sales of “services” in Q2 2013 were almost equal to sales of “services” in Q2 2012.  However, within the numbers, ARC’s revenues from “traditional reprographics” (and, revenues from “digital” services, since those are generally tied to revenues from “traditional reprographics” services) were down.  But, on the other hand, ARC’s revenues from its FM/MPS business segment were up.

The A/E/C industry has been healthier this year than last year; more projects to print this year than last year; that good news probably offset somewhat by A/E/C customers continuing to “print less” “per project.”  Revenues from “traditional reprographics” services were down, but revenues from “OnSite” services were up.  As ARC continues to push FM/MPS services, it could well be that some customers, whose revenues were formerly counted as “traditional reprographics” revenues, were, at some point, “converted” to FM/MPS customers.

ARC’s gross margin expanded 220 basis points, Q2 2013 vs. Q2 2012; and, to me, that’s a stunning achievement, especially since this margin expansion was not driven by increased sales.  As most reprographers know, the incremental gross margin on incremental “traditional reprographics” services revenues can be very, very high; my estimate of that incremental margin is 50-85% (depends on prices charged), so, when a company’s gross margin improves, and improves quite a bit, without the benefit of increased traditional reprographics services revenues, that means that the company has controlled (and cut) costs in a very meaningful way.  That’s what ARC said it was going to do.  And, it’s quite obvious that ARC has done that. 

The reprographics industry is still in a recovery mode.  Yet, ARC managed to post positive EBITDA, EBIT and Net Income.  Take a few minutes to compare ARC’s EBITDA %age to Service Point Solutions’ EBITDA %age.  Interesting comparison, for sure!

Reprographics 101 2013 Mid-Year Survey of Reprographers – SURVEY RESULTS

About the survey results:

The survey consisted of 29 questions.  When you open the survey-results file, you will first see (pages 1-15) the compiled responses to each question.  But, go beyond page 15, for some of the questions asked for text (or numerical) responses, and those responses (text responses or numerical responses) begin on page 16.

Very light turnout, only 22 companies participated in the survey.  Quite disappointing, and I almost decided not to bother publishing the survey results. 

Was the lack of participation due to reprographer-apathy?  Was it due to this survey not being “sanctioned” by the IRgA?  Do reprographers not really care to see what’s going on, trend-wise, vis a vis their peers?  Or, perhaps RSA and ReproMAX have been conducting their own surveys.  (If they haven’t been doing that, that’s stupid.) Since 2008 (2009 for some), the industry has experienced a severe downturn in revenues, especially revenues related to printed plans and specs.  Many are still struggling to find ways to replace lost revenues; many don’t feel that plan and spec printing revenues will ever recover to what they formerly were.   However, that said, most reprographers remain optimistic about the future …. and that, for sure, is a good thing.

I’d like to thank those companies who did participate in the survey. 

At this point, it is highly unlikely that I’ll bother to do any more surveys in the future.  Likely that I’ll leave that to the IRgA.

If you would like to receive the survey-results file, please send a “request” to joel.salus@mac.com

Joel Salus, Publisher

Reprographics 101 Blog

The survey-results file is copyrighted.

Wide-Format Gets Bigger (Will You?)

I liked this article; authored by Dan Marx, VP of the SGIA

Commentary & Analysis

Wide-Format Gets Bigger (Will You?)

By Dan Marx
Published: July 31, 2013

I’m currently in my 22nd year serving the specialty graphics industry. During my time with SGIA, I’ve been witness to the complete changeover in imaging equipment technology. Back in ’91, the “S” in SGIA stood for “screen” printing. Since that time, wide-format inkjet made its appearance, excited some and threatened others, was adopted in increasing levels as the years clicked by, and in time became the specialty graphics industry’s primary technology.

Link to...

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The UPS Store Makes 3-D Printing Accessible to Start-ups and Small Business Owners

Thursday, August 01, 2013

SAN DIEGO - The UPS Store today announced it is the first nationwide retailer to test 3-D printing services in-store. Select UPS Store locations will be offering the services to start-ups, small businesses and retail customers, beginning in the San Diego area with locations in additional cities across the United States in the near future.

A recent poll of small business owners conducted by The UPS Store showed high interest in trying the services, particularly for those needing to create prototypes, artistic renderings or promotional materials.

"Start-ups, entrepreneurs and small business owners may not have the capital to purchase a 3-D printer on their own, but they may have a need to show prototypes to their current and potential customers," said Michelle Van Slyke, vice president of marketing and small business solutions at The UPS Store. "By offering 3-D printing capabilities in-center, we're able to help further our small business customers' opportunities for success."

The UPS Store is testing the Stratasys uPrint SE Plus printer, which according to Stratasys, is most well-known for its ability to print detailed objects more accurately than home 3-D printers. Stratasys notes that this is particularly important when parts need to fit into each other or fit some other object. With this printer, The UPS Store locations will be equipped to produce items like engineering parts, functional prototypes, acting props, architectural models, fixtures for cameras, lights and cables.

In addition, The UPS Store locations offer a range of services tailored to meet the needs of small businesses in all stages of the business lifecycle. Not only can small business owners receive well-recognized services like packing and shipping, printing, faxing, direct mail and mailbox services, but The UPS Store locations also will work with business owners to develop custom solutions to meet their unique business needs.

For more information on how The UPS Store supports small businesses, visit the Small Business Solutions portal at smallbiz.theupsstore.com.