December 2014

Transcription

December 2014

December 2014
Monthly Statistical Review
Equity Research Team ................................................................................................................................................................................... 2
Coverage Changes ........................................................................................................................................................................................ 7
Rating Changes ............................................................................................................................................................................................. 8
Estimate Changes ......................................................................................................................................................................................... 9
Industrials
Building Materials and Construction Services..............................
Industrial Products and Services ..............................................
Transportation/Airfreight and Logistics/Maritime .........................
Transportation/Railroad and Transportation Suppliers .................
Transportation/Truckload and Less-Than Truckload .....................
34
35
36
37
39
Technology
Business Services ..................................................................
Communications Technology and Intellectual Property ................
Infrastructure Software and Security ........................................
Power & Industrial Technology .................................................
Semiconductors .....................................................................
Software as a Service .............................................................
Telecommunications Services ..................................................
40
41
42
43
44
45
46
Coverage List ..............................................................................................................................................................................................
Coverage List by Market Capitalization ........................................................................................................................................................
Institutional Sales ......................................................................................................................................................................................
Branch Offices ............................................................................................................................................................................................
44
49
95
96
Consumer
Food and Agribusiness ......................................................... 14
Healthy Living ..................................................................... 15
Restaurants ........................................................................ 16
Retail/Broadlines ................................................................. 17
Retail/Hardlines .................................................................. 18
Retail/Softlines ................................................................... 19
Energy
Exploration and Production ................................................... 20
Master Limited Partnerships .................................................. 22
Oilfield Services .................................................................. 24
Financial Services
Insurance Brokerage............................................................ 25
Real Estate Services ............................................................ 26
Regional Banks ................................................................... 27
Specialty Finance ................................................................ 29
Healthcare
Diagnostics and Life Sciences Tools ........................................ 30
Healthcare IT ..................................................................... 31
Healthcare Services ............................................................ 32
Medical Devices .................................................................. 33
Refer to pages 62-93 for MLP Company-Specific Risks
Refer to Appendix on page 94 for Important Disclosures and Analyst Certification
© 2014 Stephens Inc.
111 Center Street
Little Rock, AR 72201
501-377-2000
800-643-9691
stephens.com
Member NYSE, SIPC
EQUITY RESEARCH COVERAGE LIST
Director of Research: Nik Fisken, CFA (501) 377-6335
Executive Assistant/Supervisor: Dena Page (501) 377-6368
CONSUMER
Food and Agribusiness
Farha Aslam, Managing Director (212) 891-1778
Eric Gottlieb, Associate (212) 891-1784
Connor Hustava, CFA, Associate (212) 891-1762
ANDE Andersons, Inc., The
ADM
Archer Daniels Midland Co.
BGS
B & G Foods, Inc.
CALM Cal-Maine Foods, Inc.
CVGW Calavo Growers Inc.
DF
Dean Foods Co.
FPI
Farmland Partners, Inc.
FLO
Flowers Foods, Inc.
GPRE Green Plains Inc.
HRL
Hormel Foods Corp.
INGR Ingredion Inc.
SJM
J.M. Smucker Co., The
PPC
Pilgrim's Pride Corp.
PF
Pinnacle Foods, Inc.
SAFM Sanderson Farms, Inc.
THS
TreeHouse Foods, Inc.
TSN
Tyson Foods, Inc.
WWAV WhiteWave Foods Co.
Healthy Living
Joe Edelstein, CFA, Analyst (312) 292-5762
MYCC ClubCorp Holdings, Inc.
TFM
Fresh Market, Inc., The
SNOW Intrawest Holdings Resorts
NGVC Natural Grocers by Vitamin Cottage
SFM
Sprouts Farmers Market
UNFI United Natural Foods, Inc.
WFM Whole Foods Market, Inc.
Restaurants
Will Slabaugh, Analyst (501) 377-2259
Billy Sherrill, Associate (501) 377-8513
BJRI
BJ’s Restaurants
BOBE Bob Evans Farms, Inc.
BBRG Bravo Brio Restaurant Group
BWLD Buffalo Wild Wings, Inc.
BKW Burger King Worldwide
TAST Carrols Restaurant Group
CHUY Chuy’s Holdings, Inc.
DRI
Darden Restaurants
DFRG Del Frisco’s Restaurant Group
DENN Denny's Corp.
DNKN Dunkin’ Brands Group
FRGI Fiesta Restaurant Group
KKD
Krispy Kreme Doughnuts, Inc.
MCD
McDonald’s Corp.
FRSH Papa Murphy’s Holdings
RRGB Red Robin Gourmet Burgers, Inc.
SONC Sonic Corp.
SBUX Starbucks Corp.
TXRH Texas Roadhouse, Inc.
CAKE The Cheesecake Factory
WEN The Wendy’s Co.
ZOES Zoe’s Kitchen, Inc.
Retail/Broadlines
John R. Lawrence, Managing Director (901) 681-1346
Ben Bienvenu, Associate (901) 681-1347
AAP
Advance Auto Parts
AZO
AutoZone, Inc.
CASY Casey’s General Stores
CPRT Copart, Inc.
CORE Core-Mark Holding Co.
CST
CST Brands, Inc.
FRED Fred’s Inc.
KAR
KAR Auction Services, Inc.
LKQ
LKQ Corp.
MUSA Murphy USA Inc.
ORLY O’Reilly Automotive, Inc.
PTRY The Pantry, Inc.
TSCO Tractor Supply Co.
TA
TravelCenters of America
TUES Tuesday Morning Corp.
WMT Wal-Mart Stores, Inc.
Member NYSE, SPIC
Retail/Hardlines
Rick Nelson, CFA, CPA
Managing Director (312) 292-5768
Nicholas Zangler, CFA, Associate (501) 377-5753
ABG
Asbury Automotive Group, Inc.
AN
AutoNation, Inc.
CAB
Cabela’s Inc.
KMX
CarMax, Inc.
CONN Conn’s, Inc.
DKS
Dick’s Sporting Goods, Inc.
GPI
Group 1 Automotive, Inc.
HGG
hhgregg, Inc.
HIBB Hibbett Sports, Inc.
LAD
Lithia Motors, Inc.
LL
Lumber Liquidators Holdings
MIK
Michaels Companies, The
MNRO Monro Muffler Brake, Inc.
PAG
Penske Automotive Group, Inc.
SAH
Sonic Automotive, Inc.
TITN Titan Machinery Inc.
Retail/Softlines
Rick Patel, CFA, Analyst (212) 891-1715
Shreya Jawalkar, Associate (212) 821-1709
ANF
Abercrombie & Fitch Co.
ARO
Aeropostale, Inc.
AEO
American Eagle Outfitters
NILE Blue Nile
CRI
Carter’s, Inc.
PLCE Children’s Place, The
FOSL Fossil, Inc.
GIII
G-III Apparel Group
MOV
Movado Group
OXM
Oxford Industries Inc.
RL
Ralph Lauren Corp.
SIG
Signet Jewelers Limited
TIF
Tiffany & Co.
TUMI Tumi Holdings, Inc.
December 2014, Page 2
Executive Assistant/Supervisor: Dena Page (501) 377-6368)
ENERGY
Exploration and Production
Will Green, Analyst (817) 900-5712
Matt Beeby, Associate (817) 900-5711
AXAS Abraxas Petroleum Corp.
AREX Approach Resources Inc.
CPE
Callon Petroleum Co.
CRZO Carrizo Oil & Gas, Inc.
CXO
Concho Resources Inc.
EPE
EP Energy Corp.
XCO
EXCO Resources, Inc.
GPOR Gulfport Energy Corp.
HK
Halcon Resources
KOG
Kodiak Oil & Gas Corp.
LPI
Laredo Petroleum, Inc.
OAS
Oasis Petroleum Inc.
PE
Parsley Energy, Inc.
PQ
PetroQuest Energy, Inc.
PXD
Pioneer Natural Resources Co.
RRC
Range Resources Corp.
ROSE Rosetta Resources, Inc.
RSPP RSP Permian, Inc.
SWN Southwestern Energy Co.
WLL
Whiting Petroleum Corp.
Ben Wyatt, Analyst (817) 900-5714
Matt Beeby, Associate (817) 900-5711
AR
Antero Resources Corp.
GDP
Goodrich Petroleum Corp.
MHR
Magnum Hunter Resources
MTDR Matador Resources Co.
MRD
Memorial Resource Development
PDCE PDC Energy, Inc.
QEP
QEP Resources, Inc.
REXX Rex Energy Corp.
RICE Rice Energy Inc.
SN
Sanchez Energy Corp.
SD
SandRidge Energy, Inc.
WPT
World Point Terminals
Master Limited Partnerships
Matt Schmid, Analyst (817) 900-5716
ATLS Atlas Energy
APL
Atlas Pipeline Partners
ARP
Atlas Resource Partners
BKEP Blueknight Energy Partners
JPEP
JP Energy Partners
MWE MarkWest Energy Partners
MMLP Martin Midstream Partners
MCEP Mid-Con Energy Partners
NSLP New Source Energy Partners
PAA
Plains All American Pipeline
PAGP Plains GP Holdings
WPT
Ben Wyatt, Analyst (817) 900-5714
SUN
Sunoco LP
Oilfield Services
Matthew Marietta, Analyst (713) 993-4211
Brooks Braden, Associate (713) 993-4204
Christopher Denison, Associate (713) 993-4214
ATW
Atwood Oceanics, Inc.
BAS
Basic Energy Services, Inc.
CJES C&J Energy Services, Inc.
FTK
Flotek Industries, Inc.
HAL
Halliburton Co.
HLX
Helix Energy Solutions Group
HP
Helmerich & Payne
HERO Hercules Offshore, Inc.
HOS
Hornbeck Offshore Services
KEG
Key Energy Services, Inc.
NBR
Nabors Industries
NE
Noble Corp.
PGN
Paragon Offshore plc
PKD
Parker Drilling Co.
PTEN Patterson-UTI Energy
PES
Pioneer Energy Services
RES
RPC, Inc.
SLB
Schlumberger Ltd.
SSE
Seventy Seven Energy Inc.
SPN
Superior Energy Services, Inc.
FINANCIAL SERVICES
Insurance Brokerage
John Campbell, Analyst (501) 377-6362
Hayden Blair, Associate (501) 377-8215
AJG
Arthur J. Gallagher & Co.
BRO
Brown & Brown, Inc.
WSH Willis Group Holdings
Member NYSE, SPIC
Real Estate Services
John Campbell, Analyst (501) 377-6362
Hayden Blair, Associate (501) 377-8215
RATE Bankrate, Inc.
CNVR Conversant, Inc.
CLGX CoreLogic
ELLI
Ellie Mae, Inc.
FNF
Fidelity National Financial, Inc.
FAF
First American Financial Corp.
FNFV FNFV Group
MCHX Marchex, Inc.
EGOV NIC Inc.
QNST QuinStreet, Inc.
STC
Stewart Information Services
TREE Tree.com, Inc.
Z
Zillow, Inc.
Regional Banks
Matt Olney, CFA, Analyst (501) 377-2101
John Curtis, Analyst (501) 377-8095
Matthew Sealy, Associate (501) 377-3721
BXS
BancorpSouth, Inc.
OZRK Bank of the Ozarks, Inc.
BOKF BOK Financial Corp.
CBSH Commerce Bancshares, Inc.
CFR
Cullen/Frost Bankers, Inc.
FFIN
First Financial Bankshares, Inc.
FHN
First Horizon National Corp.
HBHC Hancock Holding Co.
HTH
Hilltop Holdings Inc.
HOMB Home BancShares, Inc.
IBKC IBERIABANK Corp.
IBTX Independent Bank Group
MSL
Midsouth Bancorp, Inc.
NBHC National Bank Holdings Corp.
PNFP Pinnacle Financial Partners, Inc.
PB
Prosperity Bancshares, Inc.
RF
Regions Financial Corp.
RNST Renasant Corp.
SFNC Simmons First National Corp.
OKSB Southwest Bancorp, Inc.
TCBI Texas Capital Bancshares, Inc.
TSC
TriState Capital Holdings, Inc.
UMBF UMB Financial Corp.
UCBI United Community Banks, Inc.
VBTX Veritex Holdings, Inc.
VPFG ViewPoint Financial Group
Regional Banks
Tyler Stafford, Associate (501) 377-8362
John Curtis, Analyst (501) 377-8095
Matthew Sealy, Associate (501) 377-3721
STBZ State Bank Financial Corp.
SNV
Synovus Financial Corp.
Specialty Finance
J.R. Bizzell, Analyst (501) 377-8237
Eric Jaschke, Associate (415)548-6912
CRMT America’s Car-Mart, Inc.
CPSS Consumer Portfolio Services
RM
Regional Management
SC
Santander Consumer USA
LEAF Sprinfleaf Holdings, Inc.
WRLD World Acceptance Corp.
HEALTHCARE
Diagnostics and Life Sciences Tools
Drew Jones, Analyst (501) 377-2369
Garrett Phelps, Associate (501) 377-8221
ABAX Abaxis, Inc.
EXAS EXACT Sciences Corp.
GHDX Genomic Health, Inc.
LMNX Luminex Corp.
MYGN Myriad Genetics, Inc.
NEOG Neogen Corp.
NEO
Neogenomics Inc.
OSUR OraSure Technologies, Inc.
RGEN Repligen Corp.
TEAR TearLab Corp.
TECH Techne Corp.
WOOF VCA, Inc.
VCYT Veracyte, Inc.
Healthcare IT
Mohan Naidu, CFA, Analyst (312) 292-5751
Michael Ott, Associate (312) 292-5752
ABCO Advisory Board Co., The
MDRX Allscripts Healthcare Solutions
ATHN athenahealth, Inc.
CERN Cerner Corp.
CPSI Computer Programs & Systems
HWAY Healthways Inc.
HMSY HMS Holdings Corp.
IMPR Imprivata, Inc.
MDAS MedAssets, Inc.
OMCL Omnicell, Inc.
PINC Premier, Inc.
QSII
Quality Systems, Inc.
VCRA Vocera Communications, Inc.
Healthcare Services
Dana Hambly, CFA, Analyst (615) 279-4329
Tyler Pearson, Associate (615) 279-4326
ACHC Acadia Healthcare Co.
ADUS Addus HomeCare Corp.
AIRM Air Methods Corp.
BIOS BioScrip, Inc.
BKD
Brookdale Senior Living
CSU
Capital Senior Living Corp.
ENSG Ensign Group, The
HGR
Hanger Inc.
IPCM IPC The Hospitalist Co.
MD
MEDNAX, Inc.
SKH
Skilled Healthcare Group
TMH
Team Health Holdings, Inc.
USPH U.S. Physical Therapy
Medical Devices
Chris Cooley, CFA, Managing Director, (501) 377-2516
Blevin Brown, Associate (501) 377-8506
ABMD Abiomed, Inc.
ALGN Align Technology, Inc.
COO
Cooper Companies, The
DXCM DexCom, Inc.
ELGX Endologix, Inc.
HOLX Hologic, Inc.
PODD Insulet Corp.
LDRH LDR Holding Corp.
MMSI Merit Medical Systems, Inc.
NXTM NxStage Medical, Inc.
RTIX RTI Surgical, Inc.
SIRO Sirona Dental Systems, Inc.
STAA STAAR Surgical Co.
STE
STERIS Corp.
SURG Synergetics USA, Inc.
TFX
Teleflex Inc.
Member NYSE, SPIC
INDUSTRIALS
Building Materials and Construction Services
Trey Grooms, Managing Director (501) 377-2318
Blake Hirschman, Associate (501) 377-8046
Drew Lipke, Associate (501) 377-2108
BECN Beacon Roofing Supply, Inc.
BLDR Builders FirstSource, Inc.
CBPX Continental Building Products
EXP
Eagle Materials Inc.
GLDD Great Lakes Dredge & Dock
MLM
Martin Marietta Materials
NCS
NCI Building Systems
NCFT Norcraft Companies
ORN
Orion Marine Group, Inc.
PGEM Ply Gem Holdings, Inc.
PII
Polaris Industries Inc.
SHW Sherwin-Williams Co., The
STCK Stock Building Supply Holdings
TREX Trex Company, Inc.
SLCA U.S. Silica Holdings, Inc.
USG
USG Corp.
VMC
Vulcan Materials Company
Industrial Products and Services
Matt Duncan, CFA, Analyst (501) 377-3723
Will Steinwart, Associate (501) 377-8303
AIMC Altra Holdings, Inc.
AIT
Applied Industrial Technologies, Inc.
DXPE DXP Enterprises, Inc.
FRM
Furmanite Corp.
KAMN Kaman Corp.
MTRX Matrix Service Co.
MG
Mistras Group, Inc.
MRC
MRC Global Inc.
MSM MSC Industrial Direct Co.
DNOW NOW, Inc.
POOL Pool Corp.
RYI
Ryerson Holding Corp.
TISI
Team, Inc.
GWW W.W. Grainger, Inc.
WSO Watsco, Inc.
WCC WESCO International, Inc.
Transportation/Airfreight and Logistics/Maritime
Jack Atkins, Analyst (501) 377-2298
Andrew Hall, Associate (501) 377-2562
ATSG Air Transport Service Group
AAWW Atlas Air Worldwide Holdings
CHRW C.H. Robinson Worldwide, Inc.
ECHO Echo Global Logistics
EXPD Expeditors International
FDX
FedEx Corp.
FWRD Forward Air Corp.
KEX
Kirby Corp.
LSTR Landstar System, Inc.
MATX Matson Inc.
QLTY Quality Distribution, Inc.
UPS
United Parcel Service, Inc.
UTIW UTi Worldwide Inc.
XPO
XPO Logistics
INT
World Fuel Services
Transportation/Railroad and Transportation Suppliers
Justin Long, Analyst (501) 377-2036
Brian Colley, Associate (501) 377-8231
ARII
American Railcar Industries
CSX
CSX Corp.
DAN
Dana Holding Corp.
RAIL FreightCar America, Inc.
GMT
GATX Corp.
GWR Genesee & Wyoming Inc.
GBX
Greenbrier Companies
HUBG Hub Group, Inc.
KSU
Kansas City Southern
NSC
Norfolk Southern Corp.
R
Ryder System, Inc.
SRI
Stoneridge Inc.
TRN
Trinity Industries
UNP
Union Pacific Corp.
WBC WABCO Holdings Inc.
WAB Wabtec Corp.
Transportation/Truckload and Less-Than Truckload
Brad Delco, Analyst (501) 377-8057
Scott Schoenhaus, Associate (212) 891-1714
ARCB ArcBest Corp.
CGI
Celadon Group, Inc.
CNW Con-way Inc.
CVTI Covenant Transportation Group
HTLD Heartland Express
JBHT J.B. Hunt Transport Services, Inc.
KNX
Knight Transportation, Inc.
MRTN Marten Transport, Ltd.
ODFL Old Dominion Freight Line, Inc.
RUSHA Rush Enterprises, Inc.
SAIA Saia, Inc.
SWFT Swift Transportation Co.
USAK USA Truck, Inc.
WNC Wabash National Corp.
WERN Werner Enterprises, Inc.
YRCW YRC Worldwide Inc.
TECHNOLOGY
Business Services
Brett Huff, CFA, Managing Director (501) 377-8068
James Rutherford, Associate (501) 377-2303
ACIW ACI Worldwide, Inc.
ACXM Acxiom Corp.
ADS
Alliance Data Systems
EPAY Bottomline Technologies
CSGP CoStar Group, Inc.
DNB
D&B
EFX
Equifax Inc.
EXPGY Experian plc
FICO FICO
FIS
Fidelity National Information Services, Inc.
FISV Fiserv, Inc.
GPN
Global Payments Inc.
HPY
Heartland Payment Systems, Inc.
JKHY Jack Henry & Associates
TSS
Total System Services, Inc.
Member NYSE, SPIC
Communications Technology and Intellectual Property
Tim Quillin, CFA, Managing Director (501) 377-8078
Aaron Fogle, Associate (501) 377-8065
ACTG Acacia Research Corp.
ADTN ADTRAN, Inc.
ARRS ARRIS Group, Inc.
CAMP CalAmp Corp.
CALX Calix Inc.
SATS EchoStar Corp.
FLIR
FLIR Systems, Inc.
HLIT
Harmonic Inc.
IDCC InterDigital, Inc.
OSIS OSI Systems, Inc.
ROVI Rovi Corp.
RPXC RPX Corp.
RKUS Ruckus Wireless, Inc.
SWIR Sierra Wireless, Inc.
TIVO TiVo Inc.
UBNT Ubiquiti Networks, Inc.
VSAT ViaSat, Inc.
Infrastructure Software and Security
Jonathan Ruykhaver, CFA, Managing Dir. (615) 279-4331
Nathan Leiphardt, Associate (615) 279-4376
HIVE Aerohive Networks, Inc.
ARUN Aruba Networks
CHKP Check Point Software Tech.
CTXS Citrix Systems, Inc.
FEYE FireEye, Inc.
FTNT Fortinet, Inc.
IMPV Imperva, Inc.
BLOX Infoblox Inc.
LOGM LogMeIn, Inc.
NTCT NetScout Systems, Inc.
PANW Palo Alto Networks, Inc.
PFPT Proofpoint, Inc.
QLYS Qualys, Inc.
RHT
Red Hat, Inc.
RVBD Riverbed Technology, Inc.
SWI
SolarWinds, Inc.
SPLK Splunk, Inc.
SYMC Symantec Corp.
Power & Industrial Technology
Ben Hearnsberger, Associate (512) 542-3272
Brandon Wright, Associate (501) 377-2065
DDD
3D Systems Corp.
XONE ExOne Company, The
FARO FARO Technologies, Inc.
ITRI
Itron, Inc.
MTLS Materialise NV
PRLB Proto Labs, Inc.
SSYS Stratasys Ltd.
VJET Voxeljet AG
Semiconductors
Harsh Kumar, Managing Director (901) 681-1344
Richard Sewell, Associate (901) 681-1345
ANAD ANADIGICS, Inc.
ADI
Analog Devices, Inc.
BELFB Bel Fuse Inc.
CREE Cree, Inc.
DIOD Diodes Inc.
IDTI
Integrated Device Technology
ISIL
Intersil Corp.
KN
Knowles Corp.
MTSI M/A-COM Technology Solutions
MCHP Microchip Technology
MSCC Microsemi Corp.
OVTI OmniVision Technologies
RFMD RF Micro Devices, Inc.
SMTC Semtech Corp.
SLAB Silicon Laboratories, Inc.
SWKS Skyworks Solutions, Inc.
Software as a Service
Alex Zukin, Analyst (415) 548-6907
Scott Wilson, Associate (415) 548-6906
CALD CallidusCloud
CSOD Cornerstone OnDemand, Inc.
DWRE Demandware, Inc.
EOPN E2open, Inc.
GWRE Guidewire Software, Inc.
N
NetSuite Inc.
RALY Rally Software Development
CRM
Salesforce.com
SQI
SciQuest, Inc.
NOW ServiceNow, Inc.
TYL
Tyler Technologies, Inc.
ULTI
Ultimate Software
WDAY Workday, Inc.
Member NYSE, SPIC
Telecommunications Services
Barry McCarver, Managing Director (501) 377-8131
Brian Hawthorne, Associate (501) 377-6372
ATNI Atlantic Tele-Network, Inc.
CBB
Cincinnati Bell Inc.
CCOI Cogent Communications Group
COR
CoreSite Realty Corp.
CONE CyrusOne, Inc.
EQIX Equinix, Inc.
HCOM Hawaiian Telcom Holdco
LVLT Level 3 Communications, Inc.
PGI
Premiere Global Services, Inc.
QTS
QTS Realty Trust
RAX
Rackspace Hosting, Inc.
SHOR ShoreTel, Inc.
WIN
Windstream Corp.
COVERAGE CHANGES
Stephens added 4 companies to
coverage during the month and now
covers 442 companies.
These
companies have an average and
median market capitalization of
$5.5 billion and $1.9 billion,
respectively.
In the past three
years, Stephens has increased the
number of
companies under
coverage by more than 30%.
ADDITIONS
JP Energy Partners
Veritex Holdings, Inc.
Workday, Inc.
Symbol
JPEP
TA
VBTX
WDAY
DELETIONS
Athlon Energy
Move, Inc.
Symbol
ATHN
MOVE
Date
11/11/14
11/04/14
11/06/14
11/18/14
Member NYSE, SPIC
RATING
Overweight
Overweight (Vol)
Overweight
Equal-Weight (Vol)
Analyst
Schmid
Lawrence
Olney
Zukin
Date
11/17/14
11/14/14
RATING CHANGES
Rating
From
UPGRADES
Symbol
To
Pilgrim’s Pride
PPC
Overweight (Vol)
DOWNGRADES
Andersons (The)
Bravo Brio Restaurant
Cornerstone OnDemand
Dean Foods
MRC Global
NOW
Regional Management
Windstream
Symbol
ANDE
APL
BBRG
COR
DF
MRC
DNOW
RM
WIN
_________
Date
Analyst
Equal-Weight (Vol)
10/31/14
Aslam
Rating
_________
To
From
Equal-Weight
Overweight
Equal-Weight
Overweight
Equal-Weight
Overweight
Equal-Weight (Vol)
Overweight (Vol)
Underweight
Equal-Weight
Equal-Weight (Vol)
Overweight (Vol)
Equal-Weight (Vol)
Overweight (Vol)
Equal-Weight
Overweight
Equal-Weight
Overweight
Date
11/07/14
11/10/14
11/07/14
11/06/14
11/03/14
11/07/14
11/07/14
10/31/14
11/07/14
Analyst
Aslam
Schmid
Slabaugh
Zukin
Aslam
Duncan
Duncan
Bizzell
McCarver
Member NYSE, SPIC
ESTIMATE CHANGES (MOST RECENT)
Company
3D Systems
Abercrombie & Fitch
Abiomed
Abraxas Petroleum
Acadia Healthcare
ACI Worldwide
Acxiom
Addus HomeCare
Advance Auto Parts
Advisory Board
Aerohive Networks
Aeropostale
Air Methods
Air Transport Services Group
Allscripts Healthcare
American Eagle
American Railcar
ANADIGICS
Andersons
Antero Resources
Approach Resources
ArcBest
Archer Daniels Midland
Atlantic Tele-Network
Atlas Air Worldwide
Atlas Energy
Atwood
Bankrate
BioScrip
Blue Nile
Bottomline Technologies
Bravo Brio Restaurant
Burger King
C&J Energy Services
CallidusCloud
Callon Petroleum
Capital Senior Living
Carrizo Oil & Gas
Carrols Restaurant Group
Children’s Place
Chuy’s
Symbol
DDD
ANF
ABMD
AXAS
ACHC
ACIW
ACXM
ADUS
AAP
ABCO
HIVE
ARO
AIRM
ATSG
MDRX
AEO
ARII
ANAD
ANDE
AR
AREX
ARCB
ADM
ATNI
AAWW
ATLS
APL
ARP
ATW
RATE
BIOS
NILE
EPAY
BBRG
BKD
BKW
CJES
CALD
CPE
CSU
CRZO
TAST
PLCE
CHUY
FY
Dec
Jan
Mar
Dec
Dec
Dec
Mar
Dec
Dec
Mar
Dec
Jan
Dec
Dec
Dec
Jan
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Sep
Dec
Dec
Dec
Jun
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Dec
Current
To
$0.71
$1.90
$0.69
$0.89
$1.53
$1.07
FY
From
$0.70
$2.25
$0.60
$0.91
$1.46
$1.21
$1.07
$7.62
$1.32
($0.46)
($1.96)
$2.34
$0.54
$0.34
$0.64
$4.75
($0.33)
$3.95
$4.22
$4.56
$1.62
$3.05
$2.88
$3.52
$1.99
$3.31
$2.56
$6.63
$1.06
$7.60
$1.26
($0.44)
($1.91)
$2.32
$0.56
$0.39
$0.59
$4.40
($0.34)
$4.33
$4.16
$4.38
$1.84
$3.00
$2.18
$3.40
$2.01
$3.23
$2.71
$7.25
($0.93)
$0.83
$1.43
$0.60
$2.60
$0.98
$1.36
($0.41)
$0.82
$1.52
$0.71
$2.64
$0.97
$1.22
$2.08
$1.41
$11.23
$2.02
$1.35
$10.55
$3.01
$0.67
$3.04
$0.76
Next
To
$1.08
$2.41
$0.83
$1.24
$1.98
$1.38
$1.01
$1.24
FY___
From
$1.12
$2.78
$0.79
$1.31
$1.93
$1.43
$1.08
$1.30
$1.48
($0.28)
($1.12)
$2.88
$0.60
$0.55
$0.89
$5.70
($0.12)
$3.90
$7.92
$4.65
$2.55
$1.50
($0.25)
($1.07)
$2.83
$0.69
$0.58
$0.92
$5.00
($0.21)
$4.82
$7.28
$5.01
$2.65
$3.13
$3.45
$2.26
$3.60
$2.67
$6.67
$0.83
$0.02
$2.00
$3.25
$2.98
$3.70
$3.23
$7.11
$0.82
$0.20
$1.52
$0.70
$2.95
$1.10
$2.16
$0.18
$2.45
$1.55
$13.29
($0.21)
$3.68
$0.78
$1.84
$0.80
$2.94
$1.07
$2.57
$0.19
$2.52
$1.45
$13.61
($0.18)
$3.60
$0.93
Member NYSE, SPIC
Analyst
Hearnsberger
Patel
Cooley
Green
Hambly
Huff
Huff
Hambly
Lawrence
Naidu
Ruykhaver
Patel
Hambly
Atkins
Naidu
Patel
Long
Kumar
Aslam
Wyatt
Green
Delco
Aslam
McCarver
Atkins
Shmid
Schmid
Schmid
Marietta
Campbell
Hambly
Patel
Huff
Slabaugh
Hambly
Slabaugh
Marietta
Zukin
Green
Hambly
Green
Slabaugh
Patel
Slabaugh
Company
Symbol
Cincinnati Bell
CBB
Cogent Communications
CCOI
Computer Programs & Systems CPSI
Concho Resources
CXO
Continental Building Products CBPX
Conversant
CNVR
Core-Mark Holding
CORE
CoreSite Realty
COR
Cornerstone OnDemand
CSOD
CoStar Group
CSGP
CST Brands
CST
Cullen/Frost Bankers
CFR
CyrusOne
CONE
Dean Foods
DF
Demandware
DWRE
DexCom
DXCM
Diodes
DIOD
DXP Enterprises
DXPE
Eagle Materials
EXP
EchoStar
SATS
Ellie Mae
ELLI
Endologix
ELGX
Ensign Group
ENSG
EP Energy
EPE
ExOne Company
XONE
Expeditors International
EXPD
Experian
EXPGY
FICO
FICO
Fidelity National Financial
FNF
Fidelity National Info. Services FIS
FireEye
FEYE
Flowers Foods
FLO
FNFV Group
FNFV
Fossil
FOSL
FreightCar America
RAIL
Furmanite
FRM
Genesee & Wyoming
GWR
Genomic Health
GHDX
Goodrich Petroleum
GDP
Great Lakes Dredge & Dock
GLDD
GBX
Gulfport Energy
GPOR
Halcon Resources
HK
Hawaiian Telcom Holdco
HCOM
FY
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Mar
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Aug
Dec
Dec
Dec
Current FY
To
From
($0.14)
($0.21)
($0.06)
($0.05)
$3.20
$3.29
$16.68
$16.85
$0.53
$0.49
$1.59
$1.77
$2.17
$2.25
$0.60
$0.63
($0.32)
($0.24)
$1.97
$4.31
($0.08)
($0.12)
$0.04
($0.40)
$1.40
$3.95
$3.46
$1.65
$0.90
($0.38)
$2.21
$5.07
($1.04)
$1.88
$1.65
$4.19
($0.04)
($0.39)
($0.05)
($0.32)
$1.45
$4.00
$3.54
$1.33
$0.99
($0.35)
$2.17
$5.10
($0.73)
$1.82
$4.17
$1.76
$3.10
($2.08)
$0.90
$0.46
$7.18
$0.55
$0.31
$4.18
($0.82)
$2.01
$0.19
$4.40
$4.30
$1.23
$1.00
$3.88
$1.84
$3.09
($2.10)
$0.92
$0.67
$7.15
$0.65
$0.40
$4.20
($0.70)
$1.76
$0.24
$4.30
$4.63
$1.26
$1.03
Next
To
$0.02
$0.34
$3.29
$20.04
$0.93
$2.00
$2.90
$0.85
($0.17)
$3.67
$2.09
FY___
From
$0.07
$0.31
$3.50
$20.52
$0.88
$2.07
$2.52
$0.82
($0.13)
$3.91
$2.04
($0.22)
($0.13)
$0.08
$0.05
$1.60
$4.64
$5.60
$0.16
$0.19
$1.78
$5.00
$5.75
$0.87
$1.31
$2.48
$5.80
($0.35)
$2.07
$1.09
$2.39
$5.74
($0.06)
$2.00
$1.08
$2.29
$2.32
($1.72)
$1.05
$0.40
$7.85
$2.40
$0.42
$4.85
($0.46)
$2.45
$0.72
$5.40
$6.40
$0.86
$0.87
($1.69)
$1.15
$1.13
$7.94
$1.75
$0.64
$5.15
($0.42)
$2.93
$0.36
$5.20
$7.35
$1.08
$1.00
Member NYSE, SPIC
Analyst
McCarver
McCarver
Naidu
Green
Grooms
Campbell
Lawrence
McCarver
Zukin
Huff
Lawrence
Olney
McCarver
Aslam
Zukin
Cooley
Kumar
Duncan
Grooms
Quillin
Campbell
Cooley
Hambly
Green
Hearnsberger
Atkins
Huff
Huff
Campbell
Huff
Ruykhaver
Aslam
Campbell
Patel
Long
Duncan
Long
Jones
Wyatt
Grooms
Long
Green
Green
McCarver
Company
Heartland Payment Systems
Helmerich & Payne
hhgregg
Hilltop Holdings
HMS Holdings
Hologic
Hornbeck Offshore
Imperva
Imprivata
Independent Bank Group
Ingredion
Insulet
InterDigital
Intrawest Resorts
J.M. Smucker
Jack Henry & Associates
Kaman
KAR Auction Services
Key Energy
Kirby Corp.
Laredo Petroleum
LDR Holding
Level 3 Communications
Lithia Motors
LKQ
M/A-COM Technology
Magnum Hunter
Marchex
Martin Midstream Partners
Matador Resources
Materialise
Matrix Service
Matson
MEDNAX
Memorial Resource Dev.
Microchip Technology
Microsemi
Mid-Con Energy Partners
MidSouth Bancorp
Movado Group
MRC Global
Murphy USA
NxState Medical
Symbol
HPY
HP
HGG
HTH
HMSY
HOLX
HOS
IMPV
IMPR
IBTX
INGR
PODD
IDCC
SNOW
SJM
JKHY
KAMN
KAR
KEG
KEX
LPI
LDRH
LVLT
LAD
LKQ
MTSI
MHR
MCHX
MLM
MMLP
MTDR
MTLS
MTRX
MATX
MD
MRD
MCHP
MSCC
MCEP
MSL
MOV
MRC
MUSA
NXTM
FY
Dec
Sep
Mar
Dec
Dec
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jun
Apr
Jun
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Jun
Dec
Dec
Dec
Mar
Sep
Dec
Dec
Jan
Dec
Dec
Dec
Current FY
To
From
$2.33
$2.40
$6.62
$7.55
($0.88)
($0.28)
$1.11
$1.23
$2.45
($0.75)
($1.18)
$2.16
$5.38
($0.03)
$2.47
($0.26)
$5.55
$2.61
$2.28
$1.54
($0.46)
$5.09
$2.75
($0.57)
$1.46
$4.87
$1.34
$1.55
$0.44
$2.37
($0.94)
($1.15)
$2.27
$5.45
($0.01)
$2.30
($0.24)
$6.05
$2.58
$2.40
$1.44
($0.31)
$5.05
$2.66
($0.66)
$1.47
$4.86
$1.37
$1.51
$0.57
$3.62
$2.92
$3.72
€0.05
$1.48
$1.42
$3.15
$1.62
$2.56
$2.78
$2.04
$1.46
$1.83
$1.73
$3.94
($0.43)
$3.99
$2.98
$3.70
(€0.03)
$1.58
$1.31
$3.17
$1.64
$2.63
$2.77
$2.13
$1.41
$2.40
$1.62
$3.32
($0.50)
Next FY___
To
From
$2.94
$2.71
($0.36)
$0.00
$0.82
$1.54
$3.00
($0.65)
($0.28)
$2.52
$6.05
$0.31
$2.50
$0.17
$6.00
$2.92
$2.68
$1.68
$0.00
$0.83
$1.57
$3.28
($0.67)
($0.30)
$3.07
$5.90
$0.32
$2.40
$0.18
$6.45
$2.84
$2.94
$1.58
$0.03
$2.78
($0.43)
$0.88
$3.58
($0.44)
$1.20
$1.67
$1.71
$0.65
$0.20
$5.77
$3.93
$5.31
€0.05
$0.82
$0.18
$5.87
$3.74
$5.25
€0.04
$1.75
$3.47
$2.77
$2.82
$1.65
$3.45
$2.34
$2.74
$2.42
$1.54
$1.96
$1.85
$3.16
$2.54
$1.55
$2.73
$2.02
$2.83
Member NYSE, SPIC
Analyst
Huff
Marietta
Nelson
Olney
Naidu
Cooley
Marietta
Ruykhaver
Naidu
Olney
Aslam
Cooley
Quillin
Edelstein
Aslam
Huff
Duncan
Lawrence
Marietta
Atkins
Green
Cooley
McCarver
Nelson
Lawrence
Kumar
Wyatt
Campbell
Grooms
Schmid
Wyatt
Hearnsberger
Duncan
Atkins
Hambly
Wyatt
Kumar
Kumar
Schmid
Olney
Patel
Duncan
Lawrence
Cooley
Company
Neogenomics
NIC
Noble
Norcraft
NOW
Oasis Petroleum
Old Dominion Freight Line
OraSure Technologies
Orion Marine
Papa Murphy’s
Paragon Offshore
Parker Drilling
Parsley Energy
PDC Energy
PetroQuest Energy
Pilgrim’s Pride
Pinnacle Foods
Pioneer Natural Resources
Plains GP Holdings
Ply Gem Holdings
Premier
QEP Resources
Quality Distribution
Qualys
QuinStreet
Rackspace Hosting
Range Rsources
Red Robin Gourmet Burgers
Regional Management
Repligen
Rex Energy
Rice Energy
Rosetta Resources
RSP Permian
RTI Surgical
Ruckus Wireless
Ryerson Holding
Salesforce.com
Sanchez Energy
SciQuest
Semtech Corp.
Seventy Seven Energy
Symbol
NEO
EGOV
NE
NCFT
DNOW
OAS
ODFL
OSUR
ORN
FRSH
PGN
PKD
PE
PDCE
PQ
PPC
PF
PXD
PAA
PAGP
PGEM
PINC
QEP
QLTY
QLYS
QNST
RAX
RRC
RRGB
RM
RGEN
REXX
RICE
ROSE
RSPP
RTIX
RKUS
RYI
CRM
SN
SC
SQI
SMTC
SSE
FY
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jun
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Dec
Dec
Dec
Jan
Dec
Current FY
To
From
$0.01
$0.00
$0.66
$0.64
$1.66
$2.36
$0.85
$0.79
$1.24
$1.28
$8.44
$8.97
$3.00
$2.93
($0.11)
($0.18)
$0.16
$0.14
$2.86
$0.28
$1.50
$7.11
$1.97
$2.75
$1.74
$17.11
$2.87
$0.74
($0.09)
$1.42
$8.24
$0.77
$0.40
$0.11
$0.71
$6.40
$2.67
$1.22
$0.28
$2.68
$2.55
$0.39
$1.43
$7.72
$2.06
$2.60
$1.76
$16.56
$2.94
$0.73
($0.02)
$1.41
$7.68
$0.76
$0.32
$0.20
$0.70
$6.44
$2.60
$1.79
$0.27
$3.07
$10.70
$2.68
$0.03
$0.44
$1.62
$0.52
$7.57
$11.10
$2.76
$0.05
$0.40
$1.87
$0.50
$7.51
$0.30
$1.52
$1.04
$0.29
$1.58
$0.91
Next
To
$0.07
$0.73
$2.18
$1.28
$1.40
$8.61
FY___
From
$0.09
$0.71
$2.81
$1.08
$1.78
$10.70
$0.52
$1.60
$0.26
$2.65
$10.84
$2.01
$0.47
$1.67
$0.59
$2.60
$12.25
$2.57
$17.84
$3.27
$0.91
$0.67
$20.04
$3.49
$0.83
$0.70
$8.30
$0.90
$0.50
$0.26
$1.05
$7.39
$7.81
$1.10
$0.40
$0.37
$1.00
$7.62
$1.71
$2.77
$2.65
$3.03
$12.24
$3.78
$0.20
$3.90
$3.30
$14.05
$3.91
$0.23
$2.12
$2.57
$8.33
$2.33
$0.30
$1.70
$1.46
$9.89
$2.41
$0.32
$1.77
$1.66
Member NYSE, SPIC
Analyst
Jones
Campbell
Marietta
Grooms
Duncan
Green
Delco
Jones
Grooms
Slabaugh
Marietta
Marietta
Green
Wyatt
Green
Aslam
Aslam
Green
Scmhid
Schmid
Grooms
Naidu
Wyatt
Atkins
Ruykhaver
Campbell
McCarver
Green
Slabaugh
Bizzell
Jones
Wyatt
Wyatt
Green
Green
Cooley
Quillin
Duncan
Zukin
Wyatt
Bizzell
Zukin
Kumar
Marietta
Company
Sierra Wireless
Skilled Healthcare
Skyworks Solutions
Springleaf Holdings
STAAR Surgical
Starbucks
Stratasys
STERIS
Stoneridge
Superior Energy
Symantec
Team Health
TearLab
Texas Roadhouse
Tree.com
TreeHouse Foods
Tuesday Morning
Tumi Holdings
Tyson Foods
U.S. Physical Therapy
U.S. Silica Holdings
Ubiquiti Networks
United Parcel Service
USA Truck
Veracyte
ViaSat
Vocera Communications
Voxeljet AG
Vulcan Materials
Wal-Mart
Wendy’s
Whole Foods Market
Windstream
World Fuel Services
XPO Logistics
Zillow
Symbol
SWIR
SKH
SWKS
LEAF
SFM
STAA
SBUX
SSYS
STE
SRI
SPN
SYMC
TMH
TEAR
TXRH
TA
TREE
THS
TUES
TUMI
TSN
USPH
SLCA
UBNT
UPS
USAK
VCYT
VSAT
VCRA
VJET
VMC
WMT
WEN
WFM
WIN
INT
XPO
Z
FY
Dec
Dec
Sep
Dec
Dec
Dec
Sep
Dec
Mar
Dec
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Dec
Jun
Dec
Sep
Dec
Dec
Jun
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Jan
Dec
Sep
Dec
Dec
Dec
Dec
Current FY
To
From
$0.60
$0.37
$0.40
$0.27
$4.37
$3.91
$2.04
$1.96
$0.68
$0.67
$0.04
$0.11
$3.12
$3.17
$2.25
$2.30
$2.89
$2.82
$0.40
$0.55
$1.77
$1.82
$1.90
$1.89
$2.26
$2.14
($0.69)
($0.68)
$1.21
$1.29
$0.73
$0.84
$1.48
$1.30
$3.66
$3.75
$0.35
$0.34
$0.85
$0.90
$3.40
$3.35
$1.70
$1.69
$2.43
$2.41
$1.99
$2.25
$4.95
$4.96
$0.43
$0.25
($1.38)
($1.39)
$1.45
$0.61
($0.61)
($0.66)
(€0.24)
(€0.17)
$0.92
$0.89
$4.96
$4.98
$1.71
$0.13
$2.97
($1.21)
$0.40
$1.78
$0.21
$2.96
($1.00)
$0.35
Next
To
$1.08
$0.55
FY___
From
$0.62
$0.31
$2.35
$0.89
$0.14
$2.24
$0.86
$0.32
$2.75
$3.14
$0.80
$2.01
$2.00
$2.32
($0.54)
$1.43
$3.13
$3.13
$0.90
$2.75
$1.97
$2.39
($0.41)
$1.49
$1.74
$4.20
$0.81
$1.01
$3.70
$1.94
$3.39
$2.22
$5.60
$1.39
$4.39
$0.78
$1.06
$3.35
$1.85
$3.35
$2.55
$5.70
($1.11)
$2.10
($0.29)
($1.19)
$1.33
($0.11)
$1.85
$1.80
$0.38
$0.41
$0.08
$0.33
($0.44)
$0.99
($0.04)
$1.16
Member NYSE, SPIC
Analyst
Quillin
Hambly
Kumar
Bizzell
Edelstein
Cooley
Slabaugh
Hearnsberger
Cooley
Long
Marietta
Ruykhaver
Hambly
Jones
Slabaugh
Lawrence
Campbell
Aslam
Lawrence
Patel
Aslam
Hambly
Grooms
Quillin
Atkins
Delco
Jones
Quillin
Naidu
Hearnsberger
Grooms
Lawrence
Slabaugh
Edelstein
McCarver
Atkins
Atkins
Campbell
FOOD AND AGRIBUSINESS
FARHA ASLAM, 212-891-1778
Farha leads the firm's food and agribusiness equity research coverage. She joined Stephens Inc. in December 2004. Prior to joining Stephens, Ms. Aslam was
part of Merrill Lynch’s equity research effort since 1999 where she worked on such companies as Kellogg, Kraft Foods, and the J.M. Smucker Company. Ms.
Aslam received a B.A. from the University of California in 1991 and an MBA in finance from Columbia University in 1996.
Sector Overview: Our Food and Agribusiness team covers small- to mid-cap stocks that primarily encompass commodity-based, branded food-based and
ethanol and grain storage-based companies. We aggregate coverage across the entire food supply chain, with respect to worldwide commodity markets. Our
base coverage includes closely following consumer trends, commodity cycles, international trade policies, government regulations, and seasonal weather
patterns.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
CONSUMER
Food and Agribusiness, Farha Aslam, 212-891-1778, [email protected]
Andersons, The
ANDE
Dec
E
$55.70 $55.00
ADM
op
Dec
O
$52.22 $56.00
B&G Foods, Inc.
BGS
op
Dec
E
$28.54 $31.00
Cal-Maine Foods, Inc.
CALM
op
May
E/V
$42.71 $75.00
Calavo Growers Inc.
CVGW
op
Oct
E
$42.02 $40.00
Dean Foods
DF
op
Dec
U
$17.04 $12.00
FPI
op
Dec
O
$10.36 $16.00
Flowers Foods, Inc.
FLO
op
Dec
O
$19.37 $21.00
Green Plains Inc.
GPRE
op
Dec
O
$34.15 $50.00
Hormel Foods
HRL
Oct
O
$55.29 $57.00
Ingredion Inc.
INGR
op
Dec
E
$82.10 $80.00
SJM
op
Apr
O
$101.66 $115.00
PPC
op
Dec
O/V
$31.91 $33.00
PF
op
Dec
O
$32.90 $35.00
Sanderson Farms
SAFM
Oct
E
$89.11 $90.00
THS
op
Dec
O
$80.51 $90.00
Tyson Foods
TSN
op
Sep
O
$43.18 $50.00
WhiteWave Foods Co.
WWAV op
Dec
O
$36.90 $42.00
Shares
Out.
Mil.
28.4
645.5
53.7
21.8
15.8
93.8
7.7
209.9
37.6
263.5
71.9
101.8
259.0
117.3
23.1
42.3
305.7
174.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$3.18
$2.33
$1.43
$4.36
$1.24
$0.86
$0.12
$0.91
$1.26
$1.97
$5.05
$5.61
$2.14
$1.57
$5.68
$3.19
$2.94
$0.74
Member NYSE, SPIC
$3.95
$3.90
$3.05
$3.75
$1.56
$1.72
$5.60
$4.80
$1.65
$1.90
($0.12) $0.76
$0.09
$0.46
$0.90
$1.05
$3.90
$4.05
$2.25
$2.80
$5.38
$6.05
$5.55
$6.00
$2.75
$2.75
$1.74
$1.90
$10.21 $10.88
$3.66
$4.20
$3.40
$3.70
$1.00
$1.20
P/E
Ratio
FY1E
14.1
17.1
18.3
7.6
25.5
NM
NM
21.5
8.8
24.6
15.3
18.3
11.6
18.9
8.7
22.0
12.7
36.9
P/E
Ratio
FY2E
14.3
13.9
16.6
8.9
22.1
22.4
22.5
18.4
8.4
19.7
13.6
16.9
11.6
17.3
8.2
19.2
11.7
30.8
Market
Cap
($ Mil)
$1,609.7
$33,618.6
$1,531.6
$1,861.4
$726.7
$1,598.7
$80.1
$4,066.3
$1,284.4
$14,566.5
$5,900.0
$10,350.7
$8,265.6
$3,858.2
$2,055.9
$3,407.7
$13,198.3
$6,433.8
BVPS
FY1E
% Sls
Grth
$27.12
$31.15
$6.58
$24.56
$9.95
$7.20
NA
$5.53
$20.57
$13.53
$30.94
$50.73
$6.84
$14.74
$35.65
$40.66
$23.64
$6.08
(13.8)
(6.5)
18.5
2.1
12.1
6.5
92.3
0.5
4.9
6.9
(8.8)
(1.2)
2.0
6.5
3.0
30.1
13.0
36.2
HEALTHY LIVING
JOE EDELSTEIN, CFA 312-292-5762
Joe is a research analyst covering the healthy living sector. He joined Stephens in May 2011 as a member of the hardline retail team. Prior to joining
Stephens, Joe served as a summer equity analyst at Invesco Ltd. and earlier held equity research roles at BMO Capital Markets and Raymond James
Financial. Joe graduated with a BSBA, cum laude, from the University of Arkansas, and he holds an MBA from Goizueta Business School at Emory University.
He earned the Chartered Financial Analyst designation in 2010.
Sector Overview: Our research focus is on growth companies that benefit from consumer trends toward Healthy Living. We provide in-depth research
coverage beyond what is typically provided by Wall Street. We seek companies that reinforce the value proposition and create sustainable competitive
positioning through cost advantages or their ability to manage scarce resources. For Healthy Living retailers, we seek companies with competitive advantage
related to the major elements that drive consumer choice.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
CONSUMER
Healthy Living, Joe Edelstein, CFA, 312-292-5762, [email protected]
ClubCorp Holdings, Inc.
MYCC
Dec
O/V
$19.27
Fresh Market, The
TFM
op
Jan
O/V
$39.54
Intrawest Resorts Holdings
SNOW
Jun
O/V
$10.24
Natural Grocers by Vitamin Cottage NGVC
op
Sep
E/V
$19.28
SFM
op
Dec
E/V
$31.43
United Natural Foods, Inc.
UNFI
op
Jul
O/V
$74.31
Whole Foods Market, Inc.
WFM
op
Sep
E/V
$47.78
Price
Target
$24.00
$44.00
$15.00
$23.00
$36.00
$76.00
$47.50
Shares
Out.
Mil.
64.4
48.4
45.1
22.5
151.0
49.8
361.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
($0.64)
$1.40
($4.37)
$0.48
$0.48
$2.52
$1.57
Member NYSE, SPIC
$0.24
$1.56
($0.29)
$0.58
$0.68
$2.96
$1.71
$0.62
$1.84
$0.17
$0.63
$0.89
$3.37
$1.88
P/E
Ratio
FY1E
80.3
25.3
NM
33.2
46.2
25.1
27.9
P/E
Ratio
FY2E
31.1
21.5
60.2
30.6
35.3
22.1
25.4
Market
Cap
($ Mil)
$1,241.8
$1,914.6
$461.3
$433.4
$4,754.7
$3,707.1
$17,219.9
BVPS
$2.93
$5.96
$7.58
$4.10
$4.09
$24.98
$10.51
FY1E
% Sls
Grth
6.9
15.2
15.2
20.4
21.3
21.5
9.4
RESTAURANTS
WILL SLABAUGH, 501-377-2259
Will is a research analyst leading the restaurant industry. Previously, Will was a research associate in the IT services and digital marketing industries and an
analyst in the Corporate Finance department, where he focused on various industries including consumer, information technology and telecommunications
services. Will joined Stephens in 2007. He graduated with honors and holds a B.S. in international business from the Sam M. Walton College of Business at
the University of Arkansas.
Sector Overview: The restaurant industry is broad and fragmented due to the diversity of offerings and level of service. While we seek to take a holistic
view of the industry, the majority of our coverage is focused on companies in the casual dining segment, though we also follow the quick-service (QSR)
segment, family dining segment and quick/fast casual. We believe that key industry trends to watch in the coming quarters and years will include operating
cost containment amid unstable commodity prices, consumer sentiment and discretionary spend, a scarcity of strong concept growth, as well as broader
macroeconomic indicators.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
CONSUMER
Restaurants, Will Slabaugh, 501-377-2259, [email protected]
BJ's Restaurants
BJRI
adj
Dec
E
$45.90 $36.00
Bob Evans Farms
BOBE
adj
Apr
U
$51.57 $40.00
Bravo Brio Restaurant Group
BBRG
adj
Dec
E
$12.94 $15.00
Buffalo Wild Wings, Inc.
BWLD
adj
Dec
O/V
$161.39 $170.00
Burger King Worldwide
BKW
adj
Dec
E
$32.47 $30.00
TAST
adj
Dec
O
$7.69
$9.00
Chuy's Holdings, Inc.
CHUY
adj
Dec
O
$21.24 $34.00
Darden Restaurants
DRI
adj
May
E
$55.61 $45.00
Del Frisco's Restaurant Group
DFRG
adj
Dec
O
$22.13 $32.00
Denny's Corp.
DENN
adj
Dec
O/V
$8.95 $10.00
Dunkin' Brands Group
DNKN
adj
Dec
E
$47.03 $45.00
Fiesta Restaurant Group
FRGI
adj
Dec
O/V
$55.26 $65.00
Krispy Kreme Doughnuts
KKD
adj
Jan
O/V
$19.82 $23.00
McDonald's Corp.
MCD
Dec
E
$96.56 $90.00
Papa Murphy's Holdings
FRSH
adj
Dec
O
$9.20 $13.00
RRGB
adj
Dec
O
$66.42 $75.00
Sonic Corp.
SONC
Aug
O
$25.17 $28.00
Starbucks Corp.
SBUX
Sep
E
$77.82 $75.00
Texas Roadhouse
TXRH
adj
Dec
O
$31.34 $35.00
The Cheesecake Factory
CAKE
adj
Dec
O
$46.62 $50.00
The Wendy's Co.
WEN
adj
Dec
E
$8.48
$9.50
Zoe's Kitchen, Inc.
ZOES
adj
Dec
E/V
$33.14 $29.00
Shares
Out.
Mil.
28.1
23.6
19.0
18.9
335.9
44.7
16.8
132.6
23.7
84.7
104.9
26.8
64.2
981.9
16.9
14.8
54.1
751.2
69.5
49.5
365.3
19.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.78
$1.41
$0.80
$3.96
$0.84
($0.53)
$0.69
$2.40
$0.87
$0.29
$1.54
$0.85
$0.61
$5.55
($0.05)
$2.37
$0.84
$2.68
$1.13
$2.10
$0.30
($0.09)
Member NYSE, SPIC
$0.96
$1.95
$0.60
$5.12
$0.98
($0.43)
$0.67
$2.23
$0.92
$0.38
$1.75
$1.35
$0.72
$4.95
$0.43
$2.67
$0.99
$3.12
$1.21
$2.07
$0.34
$0.05
$1.30
$2.30
$0.70
$5.92
$1.10
($0.21)
$0.78
$2.44
$1.10
$0.40
$2.00
$1.58
$0.86
$5.50
$0.52
$3.10
NE
NE
$1.43
$2.40
$0.38
$0.10
P/E
Ratio
FY1E
47.8
26.4
21.6
31.5
33.1
NM
31.7
24.9
24.1
23.6
26.9
40.9
27.5
19.5
21.4
24.9
25.4
24.9
25.9
22.5
24.9
NM
P/E
Ratio
FY2E
35.3
22.4
18.5
27.3
29.5
NM
27.2
22.8
20.1
22.4
23.5
35.0
23.0
17.6
17.7
21.4
NM
NM
21.9
19.4
22.3
NM
Market
Cap
($ Mil)
$1,197.2
$1,216.5
$241.4
$3,054.5
$11,428.8
$270.9
$349.2
$7,376.5
$518.2
$758.3
$4,918.5
$1,480.0
$1,276.6
$93,972.6
$155.9
$930.9
$1,334.5
$58,232.7
$2,174.8
$2,307.4
$3,097.5
$638.6
BVPS
$14.54
$15.86
$5.53
$29.11
$3.92
$3.91
$6.81
$16.15
$8.72
$0.03
$3.32
$6.07
$3.98
$16.45
$1.58
$25.53
$1.06
$7.03
$8.49
$5.59
$4.72
$6.33
FY1E
% Sls
Grth
9.3
3.8
(0.9)
19.7
(7.8)
5.6
18.5
(24.1)
12.9
1.2
4.7
10.4
8.0
(1.4)
18.9
11.8
3.6
16.5
10.6
4.8
(17.7)
46.4
RETAIL/BROADLINE
JOHN R. LAWRENCE, 901-821-7435
John R. Lawrence is a managing director and research analyst following the broadline retail industry. Prior to joining the firm in April 2012, John was a
managing director and analyst at Morgan Keegan and Company, Inc. following consumer stocks since 1997. He also worked for Principal Financial Securities
in Dallas, Texas following the consumer/distribution industries for four years. John has been ranked twice by the StarMine/Financial Times as the top stock
picker within the special retail category and ranked in the Wall Street Journal Best on the Street Analyst Survey. He earned an Executive MBA from the Owen
School of Management at Vanderbilt and holds a BBA from the University of Memphis.
Sector Overview: Our research focuses on small-, mid- and large-cap growth retail operators. The primary industries for which we provide analysis are
aftermarket automotive, convenience stores, discount retailers and high-growth specialty retailers. We look for retailers that have solid fundamentals,
operate in strong markets, offer differentiated services and have experienced management teams that can execute business strategies.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
CONSUMER
Retail/Broadline, John R. Lawrence, 901-821-7435, [email protected]
Advance Auto Parts
AAP
adj
Dec
E/V
$144.74 $137.00
AutoZone Inc.
AZO
Aug
O/V
$568.51 $616.00
Casey's General Stores
CASY
adj
Apr
O
$83.56 $84.00
Copart, Inc.
CPRT
adj
Jul
O/V
$34.11 $40.00
Core-Mark Holding Co.
CORE
adj
Dec
O/V
$57.43 $65.00
CST Brands Inc.
CST
adj
Dec
O/V
$43.14 $44.00
Fred's Inc.
FRED
adj
Jan
O/V
$15.79 $19.00
KAR
op
Dec
O
$34.19 $38.00
LKQ Corp.
LKQ
op
Dec
O/V
$28.72 $38.00
Murphy USA Inc.
MUSA
adj
Dec
O/V
$62.98 $69.00
O'Reilly Automotive, Inc.
ORLY
Dec
O/V
$178.19 $193.00
The Pantry, Inc.
PTRY
adj
Sep
E/V
$25.93 $20.00
Tractor Supply Co.
TSCO
Dec
O/V
$75.32 $85.00
TA
adj
Dec
O/V
$9.08 $13.00
Tuesday Morning Corp.
TUES
adj
Jun
E/V
$21.75 $23.00
Wal-Mart Stores,Inc.
WMT
pf
Jan
O
$84.99 $87.00
Shares
Out.
Mil.
73.0
32.6
38.7
126.1
23.1
75.6
36.9
140.5
302.7
45.7
103.8
23.4
135.9
37.7
43.7
3,222.5
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$5.67
$31.57
$3.49
$1.53
$1.99
$1.90
$0.77
$1.20
$1.06
$5.15
$6.03
($0.02)
$2.32
$0.84
$0.01
$5.12
Member NYSE, SPIC
$7.62
$8.59
$35.56 $41.25
$3.86
$3.90
$1.67
$1.83
$2.17
$2.90
$1.97
$2.09
($0.01) $0.70
$1.54
$1.68
$1.34
$1.67
$3.94
$3.16
$7.27
$8.37
$0.43
$0.54
$2.61
$3.06
$0.73
$0.87
$0.35
$0.81
$4.96
$5.38
P/E
Ratio
FY1E
19.0
16.0
21.6
20.4
26.5
21.9
NM
22.2
21.4
16.0
24.5
60.3
28.9
12.4
62.1
17.1
P/E
Ratio
FY2E
Market
Cap
($ Mil)
16.8
$10,565.2
13.8
$18,215.6
21.4
$3,229.6
18.6
$4,306.1
19.8
$1,327.5
20.6
$3,350.4
22.6
$582.4
20.4
$4,815.6
17.2
$8,703.2
19.9
$2,880.0
21.3
$18,076.5
48.0
$607.9
24.6
$10,238.9
10.4
$342.0
26.9
$951.4
15.8 $273,881.4
BVPS
FY1E
% Sls
Grth
$26.39
($55.45)
$19.95
$7.96
$19.27
$8.81
$12.40
$10.84
$8.80
$14.83
$20.23
$13.19
$9.01
$12.47
$4.66
$24.55
52.1
3.0
9.9
10.5
7.6
(0.1)
(1.0)
7.8
33.7
0.3
8.0
(2.9)
10.5
0.9
7.0
2.4
RETAIL/HARDLINES
RICK NELSON, CPA, CFA, 312-292-5768
Rick is a managing director leading the retail/hardlines practive. Before joining Stephens in 1998, he was a managing director at Nesbitt Burns Securities,
Inc. and Duff & Phelps Capital Markets, Inc. Rick has been a Wall Street Journal All-Star Analyst for stock selection in specialty retailing and recognized in the
Institutional Investor research poll. He holds a B.S. and M.B.A. from Miami University (Ohio). Rick is a CPA and CFA charter holder and is licensed as a
supervisory analyst.
Sector Overview: Our research focus is on small- and mid-cap growth retailers. We provide in-depth research coverage beyond what is typically provided
by Wall Street, and we have special expertise in the specialty retailing, sporting goods and automotive retailing segments. We seek retailers with competitive
advantage as to the major elements that drive store choice, including: merchandise assortment and presentation, location, store format, shopping
environment, customer service and day-to-day execution. Retailers must provide a good value proposition for consumers. We look for strong management
with a well-defined business strategy and the ability to execute those plans.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
CONSUMER
Retail/Hardlines, Rick Nelson, CPA, CFA, 312-292-5768, [email protected]
ABG
op
Dec
O
$73.93
AutoNation, Inc.
AN
op
Dec
E
$57.92
Cabela's Inc.
CAB
op
Dec
O
$52.61
CarMax, Inc.
KMX
Feb
E
$55.03
Conn's, Inc.
CONN
op
Jan
E
$32.52
Dick's Sporting Goods, Inc.
DKS
op
Jan
E
$48.45
GPI
op
Dec
E
$86.29
hhgregg, Inc.
HGG
op
Mar
E
$6.09
Hibbett Sports, Inc.
HIBB
Jan
O
$44.58
Lithia Motors, Inc.
LAD
op
Dec
O
$72.84
Lumber Liquidators
LL
Dec
O
$55.12
Michaels Companies
MIK
Jan
O
$21.75
Monro Muffler Brake
MNRO
Mar
O
$51.26
PAG
op
Dec
O
$47.44
SAH
op
Dec
E
$24.91
Titan Machinery
TITN
Jan
E/V
$14.04
Shares
Price
Out.
Target
Mil.
$80.00
$58.00
$69.00
$54.00
$37.00
$48.00
$87.00
$5.00
$54.00
$86.00
$65.00
$23.00
$59.00
$56.00
$26.00
$14.00
30.4
113.1
71.1
221.1
37.0
96.3
24.3
28.4
25.6
23.8
27.1
207.0
31.6
90.2
40.6
21.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$3.36
$2.98
$3.32
$2.24
$2.58
$2.69
$4.96
$0.09
$2.70
$3.99
$2.77
$1.22
$1.67
$2.77
$2.05
$0.78
Member NYSE, SPIC
$4.31
$3.35
$3.15
$2.56
$2.87
$2.82
$5.58
($0.88)
$2.68
$4.87
$2.44
$1.42
$1.90
$3.28
$1.86
$0.38
$4.72
$3.65
$3.45
$2.71
$3.25
$3.24
$6.23
($0.36)
$3.18
$5.73
$2.94
$1.63
$2.36
$3.76
$2.02
$0.90
P/E
Ratio
FY1E
17.2
17.3
16.7
21.5
11.3
17.2
15.5
NM
16.6
15.0
22.6
15.3
27.0
14.5
13.4
36.9
P/E
Ratio
FY2E
15.7
15.9
15.2
20.3
10.0
15.0
13.9
NM
14.0
12.7
18.7
13.3
21.7
12.6
12.3
15.6
Market
Cap
($ Mil)
$2,200.8
$6,553.3
$3,739.9
$11,853.2
$1,179.0
$4,667.6
$2,097.2
$172.9
$1,120.2
$1,725.5
$1,491.6
$4,436.0
$1,618.5
$4,280.4
$975.1
$300.6
BVPS
FY1E
% Sls
Grth
$17.43
$17.93
$24.46
$15.50
$17.14
$13.73
$42.82
$10.47
$12.51
$26.20
$11.28
($15.90)
$13.59
$18.35
$12.43
$18.78
9.0
7.6
5.8
11.6
24.4
9.3
10.3
(0.8)
7.5
3.0
32.9
2.0
8.5
16.1
4.7
(8.5)
RETAIL/SOFTLINES
RICK PATEL, CFA, 212-891-1715
Rick is a research analyst and leads the firm’s research coverage of the retail/softlines industry. Prior to joining Stephens in March 2013, Rick spent 5 years
at Bank of America Merrill Lynch equity research, where he led the firm’s coverage of small and mid-cap retailers in the jewelry/luxury, p\off-price, and
children’s apparel industries. From 2000-2007, he was at Lehman Brothers equity research as an associate on the major pharmaceutical team for 4 years,
and as a senior analyst for the life science tools & diagnostics industry for 3 years. Rick received an M.B.A. from the NYU-Stern School of Business and is a
CFA charter holder. He also holds a B.S. in finance, B.S. in biology and B.A. in economics from Rutgers University.
Sector Overview: Our research focus is on small- and mid-cap retailers in the jewelry and accessories areas. Our research approach entails thorough
quantitative and financial analysis at the macroeconomic and company-specific levels. We aim to differentiate our research by having very detailed financial
models for each company. We are drawn to retailers that have growth opportunities and competitive advantages through strong merchandising, marketing
and operations. We also look for strong management with a well-defined business strategy and ability to execute on growth initiatives.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Company
Tkr
CONSUMER
Retail/Softlines, Rick Patel, CFA, 212-891-1715, [email protected]
ANF
adj
Jan
O/V
$28.98
Aeropostale, Inc.
ARO
adj
Jan
E/V
$2.99
AEO
adj
Jan
O/V
$13.25
Blue Nile
NILE
adj
Dec
E/V
$34.00
Carter's, Inc.
CRI
adj
Dec
O/V
$80.68
Fossil, Inc.
FOSL
adj
Dec
E/V
$107.43
G-III Apparel Group
GIII
adj
Jan
O/V
$85.14
Movado Group
MOV
adj
Jan
E/V
$25.26
Oxford Industries
OXM
adj
Jan
O/V
$65.88
Ralph Lauren Corp.
RL
adj
Mar
E/V
$179.66
SIG
adj
Jan
O/V
$120.59
The Children's Place
PLCE
adj
Jan
E/V
$51.37
Tiffany & Co.
TIF
adj
Jan
O/V
$102.69
Tumi Holdings, Inc.
TUMI
adj
Dec
O/V
$20.80
Price
Target
$35.00
$3.50
$16.00
$36.00
$87.00
$115.00
$98.00
$28.00
$82.00
$167.00
$130.00
$57.00
$112.00
$25.00
Shares
Out.
Mil.
71.4
78.6
194.4
11.8
52.9
52.9
22.4
18.7
16.5
61.1
80.2
21.6
129.3
67.9
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.91
($1.13)
$0.74
$0.85
$3.37
$6.56
$3.74
$2.07
$2.81
$8.43
$4.56
$3.26
$3.73
$0.82
Member NYSE, SPIC
$1.90
($1.96)
$0.64
$0.83
$3.83
$7.18
$4.15
$1.83
$3.08
$8.52
$5.48
$3.01
$4.32
$0.85
$2.41
($1.12)
$0.89
$0.96
$4.48
$7.85
$4.67
$1.96
$3.58
$9.82
$6.47
$3.68
$4.89
$1.01
P/E
Ratio
FY1E
15.3
NM
20.7
41.0
21.1
15.0
20.5
13.8
21.4
21.1
22.0
17.1
23.8
24.5
P/E
Ratio
FY2E
12.0
NM
14.9
35.4
18.0
13.7
18.2
12.9
18.4
18.3
18.6
14.0
21.0
20.6
Market
Cap
($ Mil)
$2,068.2
$236.5
$2,576.2
$402.8
$4,268.5
$5,488.0
$1,905.9
$471.9
$1,085.0
$11,035.4
$9,673.1
$1,107.8
$13,277.3
$1,411.7
BVPS
$20.90
$1.94
$5.83
$0.73
$14.19
$18.97
$29.92
$18.73
$16.55
$65.98
$33.47
$21.57
$22.66
$5.75
FY1E
% Sls
Grth
(6.1)
(11.7)
(1.8)
5.8
8.7
9.5
22.7
2.1
8.7
5.2
36.1
(0.2)
7.2
12.4
EXPLORATION AND PRODUCTION
WILL GREEN, 817-900-5712
Will is a research analyst covering the exploration and production sector. Will joined Stephens Inc. in May 2007 as a research associate in the industrials
group with a focus on the building materials & construction services sector and was promoted to analyst in July 2010. He holds a B.A. in computer science
and a B.A. in psychology from the University of Arkansas.
Sector Overview: We focus on the Energy Exploration & Production sector which explores, produces, and sells oil and natural gas. The companies we
follow focus on discovering, acquiring, and developing conventional and unconventional oil and natural gas reserves, domestically. We believe E&P’s will
perform well as development drilling in new focus areas contributes to production growth in a modestly bullish commodity price environment.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Company
Tkr
ENERGY
Exploration and Production, Will Green, 817-900-5712, [email protected]
Abraxas Petroleum Corp.
AXAS
op/cf Dec
O/V
$3.99
$7.00
Approach Resources Inc.
AREX op/cf Dec
E/V
$10.62 $14.00
CPE
op/cf Dec
O/V
$5.89 $14.00
Carrizo Oil & Gas, Inc.
CRZO op/cf Dec
O/V
$50.02 $80.00
CXO
op/cf Dec
O
$115.16 $160.00
EP Energy Corp.
EPE
op/cf Dec
O
$14.26 $25.00
EXCO Resources
XCO
op/cf Dec
E/V
$3.29
$3.00
Gulfport Energy Corp.
GPOR op/cf Dec
E
$51.52 $65.00
Halcon Resources
HK
op/cf Dec
O/V
$2.88
$5.50
KOG
op/cf Dec
O/V
$9.76 $17.00
LPI
op/cf Dec
E/V
$16.12 $23.00
OAS
op/cf Dec
O/V
$25.85 $50.00
PE
op/cf Dec
O
$16.55 $30.00
PQ
op/cf Dec
O/V
$4.04
$6.50
PXD
op/cf Dec
O
$168.84 $250.00
RRC
op/cf Dec
O
$73.00 $105.00
Rosetta Resources, Inc.
ROSE op/cf Dec
O/V
$34.67 $68.00
RSP Permian, Inc.
RSPP op/cf Dec
O/V
$27.85 $35.00
Southwestern Energy Co.
SWN
op/cf Dec
E
$33.58 $42.00
WLL
op/cf Dec
O
$55.03 $100.00
Shares
Out.
Mil.
108.5
39.6
54.8
46.5
113.2
245.6
273.8
85.5
428.5
271.1
143.7
101.6
93.9
66.0
148.9
168.7
61.6
77.3
353.1
167.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.43
$2.92
$1.41
$8.69
$13.58
$4.27
$1.55
$2.19
$1.31
$2.23
$2.81
$7.75
$0.82
$1.42
$15.45
$5.85
$9.43
$2.00
$5.65
$14.15
Member NYSE, SPIC
$0.89
$4.56
$2.08
$11.23
$16.68
$5.07
$1.18
$4.30
$1.23
$2.74
$2.75
$8.44
$1.50
$1.97
$17.11
$6.40
$10.79
$2.68
$6.37
$17.11
$1.24
$4.65
$2.45
$13.29
$20.04
$5.80
$1.09
$6.40
$0.86
$3.52
$2.78
$8.61
$2.65
$2.01
$17.84
$7.39
$12.24
$3.78
$7.66
$19.42
P/E
Ratio
FY1E
4.5
2.3
2.8
4.5
6.9
2.8
2.8
12.0
2.3
3.6
5.9
3.1
11.0
2.1
9.9
11.4
3.2
10.4
5.3
3.2
P/E
Ratio
FY2E
3.2
2.3
2.4
3.8
5.7
2.5
3.0
8.1
3.3
2.8
5.8
3.0
6.2
2.0
9.5
9.9
2.8
7.4
4.4
2.8
Market
Cap
($ Mil)
$420.5
$420.1
$325.3
$2,305.7
$13,014.2
$3,490.9
$900.7
$4,406.6
$1,216.6
$2,614.4
$2,316.2
$2,619.6
$1,554.6
$266.7
$25,139.9
$12,315.2
$2,131.9
$2,152.6
$11,857.6
$6,551.9
BVPS
FY1E
% Sls
Grth
$1.43
$18.31
$6.93
$18.90
$45.48
$15.10
$1.56
$25.60
$3.59
$4.61
$9.43
$15.43
NA
$1.87
$49.97
$18.79
$22.83
$14.89
$12.16
$35.73
108.9
49.5
79.0
36.4
21.2
37.9
(23.9)
99.7
27.2
28.4
8.6
20.6
NM
40.3
11.3
11.7
21.9
86.3
18.9
20.6
EXPLORATION AND PRODUCTION
BEN WYATT, 817-900-5714
Ben is a research analyst covering the exploration and production and master limited partnership sectors. Ben joined Stephens in August 2010 as a research
associate to assist in developing the exploration & production practice. In May 2012, Ben was promoted to research analyst in order to develop the MLP
practice for Stephens. He received his B.S.B.A. in finance from the University of Arkansas and his M.B.A. from Texas Christian University.
Sector Overview: We focus on the Energy Exploration & Production sector which explores, produces, and sells oil and natural gas. The companies we
follow focus on discovering, acquiring, and developing conventional and unconventional oil and natural gas reserves, domestically. We believe E&P’s will
perform well as development drilling in new focus areas contributes to production growth in a modestly bullish commodity price environment.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
ENERGY
Exploration and Production, Ben Wyatt, 817-900-5714, [email protected]
AR
op/cf Dec
O
$52.30
GDP
op/cf Dec
O/V
$9.34
Magnum Hunter Resoures
MHR
Dec
E/V
$4.61
Matador Resources Co.
MTDR op/cf Dec
O/V
$21.72
MRD
op/cf Dec
O
$23.31
PDC Energy, Inc.
PDCE op/cf Dec
O/V
$37.95
QEP Resources, Inc.
QEP
op/cf Dec
O
$23.46
Rex Energy Corp.
REXX op/cf Dec
O/V
$7.66
Rice Energy Inc.
RICE
op/cf Dec
O/V
$26.10
SN
op/cf Dec
O/V
$15.88
SD
op/cf Dec
O/V
$3.73
Price
Target
$77.00
$16.00
$6.00
$34.00
$33.00
$62.00
$36.00
$14.00
$33.00
$41.00
$9.00
Shares
Out.
Mil.
262.1
44.4
199.9
74.2
193.9
35.9
180.2
54.1
136.3
58.6
494.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.80
$2.21
$0.31
$3.15
$0.93
$6.31
$7.65
$2.11
$0.83
$5.31
$1.41
Member NYSE, SPIC
$4.22
$2.01
$0.44
$3.72
$1.62
$7.11
$8.24
$2.68
$1.34
$7.57
$1.15
$7.92
$2.45
$0.65
$5.31
$2.77
$10.84
$8.30
$2.65
$3.03
$8.33
$1.43
P/E
Ratio
FY1E
12.4
4.6
10.5
5.8
14.4
5.3
2.8
2.9
19.5
2.1
3.2
P/E
Ratio
FY2E
6.6
3.8
7.1
4.1
8.4
3.5
2.8
2.9
8.6
1.9
2.6
Market
Cap
($ Mil)
$13,706.1
$415.0
$921.6
$1,593.4
$4,511.9
$1,361.5
$4,226.3
$414.5
$3,556.9
$930.5
$1,842.7
BVPS
$13.45
$6.70
$0.90
$10.74
$2.25
$26.32
$18.49
$11.04
$10.37
$18.47
$1.80
FY1E
% Sls
Grth
91.7
8.2
34.6
41.8
112.5
18.5
(0.6)
51.9
101.3
127.7
(10.8)
MASTER LIMITED PARTNERSHIPS
MATT SCHMID, 817-900-5714
Matt is a research analyst covering master limited partnerships and business development companies. Matt joined Stephens in May 2011 as a research
associate covering consumer finance and moved to the exploration and production sector in May 2012. He received a B.B.A. in finance and the business
honors program from the University of Texas at Austin in 2004 as well as an M.B.A. from the University of Texas at Austin in 2011.
Sector Overview: We focus on the MLP sector which encompasses midstream, exploration & production, propane, coal, general partners and non-traditional
MLPs. We believe energy MLPs will continue to perform well as the demand for infrastructure build-out continues in existing and emerging plays while other
MLPs will continue to offer investors above average total return potential.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Company
Tkr
ENERGY
Master Limited Partnerships, Matt Schmid, 817-900-5716, [email protected]
Atlas Energy
ATLS
op/cf Dec
O
$36.12 $52.00
APL
op/cf Dec
E
$34.53 $40.00
ARP
op/cf Dec
O
$15.58 $23.00
Blueknight Energy Partners
BKEP
op/cf Dec
O
$7.05
$9.50
JP Energy Partners
JPEP
op/cf Dec
O
$17.19 $22.00
MarkWest Energy Partners
MWE
op/cf Dec
E
$74.50 $77.00
MMLP
cf
Dec
E
$36.80 $42.00
MCEP
cf
Dec
E
$14.86 $21.00
New Source Energy Partners
NSLP
op/cf Dec
E
$16.02 $27.00
PAA
op/cf Dec
O
$53.75 $64.00
Plains GP Holdings, L.P.
PAGP
cf
Dec
E
$27.04 $33.00
WPT
cf
Dec
O
$19.07 $23.00
Shares
Out.
Mil.
51.9
84.5
79.3
31.4
38.5
189.2
35.4
24.6
13.5
368.9
136.1
33.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.66
$2.73
$2.45
$0.42
$0.47
$3.40
$3.25
$2.49
$2.01
$3.68
$0.58
$0.68
$1.99
$3.31
$2.56
$0.61
$1.60
$3.66
$2.92
$2.04
$2.57
$2.87
$0.74
$1.55
$2.26
$3.60
$2.67
$0.70
$1.88
$4.35
$3.93
$2.42
$2.91
$3.27
$0.91
$1.59
P/E
Ratio
FY1E
18.2
10.4
6.1
11.6
10.7
20.4
12.6
7.3
6.2
18.7
36.5
12.3
P/E
Ratio
FY2E
16.0
9.6
5.8
10.1
9.1
17.1
9.4
6.1
5.5
16.4
29.7
12.0
Market
Cap
($ Mil)
$1,876.4
$2,917.8
$1,270.5
$231.0
$313.1
$13,710.8
$1,300.9
$433.0
$258.9
$19,996.8
$5,301.1
$320.9
BVPS
FY1E
% Sls
Grth
$6.62
$29.08
$13.90
($6.90)
$18.32
$24.38
$12.62
$3.46
$11.04
$21.73
$7.62
$5.23
84.5
24.7
50.3
21.8
149.0
40.2
11.0
(1.8)
NM
(4.4)
30.2
10.1
Please see the detailed risk section for each MLP at the end of this report.
Investors should also review the risk factors identified by the companies as disclosed in the documents filed by each company with the SEC which can
be viewed by clicking on each company below.
Atlas Energy
Member NYSE, SPIC
Plains GP Holdings
Sunoco LP
MASTER LIMITED PARTNERSHIPS
BEN WYATT, 817-900-5714
Ben is a research analyst covering the exploration and production and master limited partnership sectors. Ben joined Stephens in August 2010 as a research
associate to assist in developing the exploration & production practice. In May 2012, Ben was promoted to research analyst in order to develop the MLP
practice for Stephens. He received his B.S.B.A. in finance from the University of Arkansas and his M.B.A. from Texas Christian University.
Sector Overview: We focus on the MLP sector which encompasses midstream, exploration & production, propane, coal, general partners and non-traditional
MLPs. We believe energy MLPs will continue to perform well as the demand for infrastructure build-out continues in existing and emerging plays while other
MLPs will continue to offer investors above average total return potential.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
ENERGY
Master Limited Partnerships, Ben Wyatt, 817-900-5714, [email protected]
Sunoco LP
SUN
cf
Dec
O
$45.53 $60.00
Shares
Out.
Mil.
26.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.18
$2.78
$4.24
P/E
Ratio
FY1E
16.4
P/E
Ratio
FY2E
10.7
Market
Cap
($ Mil)
$1,048.9
BVPS
FY1E
% Sls
Grth
$3.61
46.6
Please see the detailed risk section for each MLP at the end of this report.
Investors should also review the risk factors identified by the companies as disclosed in the documents filed by each company with the SEC which can
be viewed by clicking on each company below.
Atlas Energy
JP Energy Partners
Member NYSE, SPIC
Plains GP Holdings
Sunoco LP
OILFIELD SERVICES
MATTHEW MARIETTA, 713-993-4211
Matthew is a research analyst covering the oilfield services sector in the Houston office. He began his career at Stephens in September 2011 as a research
associate where he assisted in the development of the exploration & production practice. Matthew has over four years of energy industry experience in both
E&P and service companies in a variety of capacities. He is a graduate from Texas Christian University, Neeley School of Business in 2008 with a bachelor
degree in business administration in finance.
Sector Overview: We focus on the Oilfield Services industry which provides services and equipment to oil and natural gas exploration and production
companies. The companies we follow target all phases of the drilling, completion and production processes. We believe the industry is positioned for
continued growth.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
ENERGY
Oilfield Services, Matthew Marietta, 713-993-4211, [email protected]
ATW
adj
Sep
E
$37.00
Basic Energy Services
BAS
adj
Dec
O/V
$10.73
C&J Energy Services, Inc.
CJES
adj
Dec
E
$18.24
Flotek Industries
FTK
adj
Dec
O
$21.61
Halliburton Company
HAL
adj
Dec
O
$48.43
HLX
adj
Dec
O
$26.50
Helmerich & Payne
HP
adj
Sep
O
$77.97
Hercules Offshore, Inc.
HERO
adj
Dec
O/V
$1.50
HOS
adj
Dec
E
$30.92
Key Energy Services
KEG
adj
Dec
E
$2.24
Nabors Industries
NBR
adj
Dec
O
$15.81
Noble Corp.
NE
adj
Dec
O
$20.53
PGN
adj
Dec
E/V
$5.00
Parker Drilling
PKD
adj
Dec
E/V
$3.85
Patterson-UTI Energy
PTEN
adj
Dec
O
$20.39
PES
adj
Dec
O/V
$7.00
RPC, Inc.
RES
Dec
O
$15.53
Schlumberger Ltd.
SLB
adj
Dec
O
$95.00
SSE
adj
Dec
O/V
$10.44
Superior Energy Services
SPN
adj
Dec
O
$24.29
Price
Target
$43.00
$26.00
$25.00
$38.00
$73.00
$33.00
$99.00
$4.00
$38.00
$4.50
$29.00
$32.00
$6.50
$6.50
$41.00
$15.00
$22.00
$112.00
$24.00
$35.00
Shares
Out.
Mil.
64.4
43.2
55.4
53.9
857.6
105.5
108.2
160.8
36.3
153.5
299.7
252.3
84.8
122.0
146.1
63.8
216.3
1,306.7
50.9
155.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$4.87
($0.68)
$1.22
$0.67
$3.15
$1.08
$6.25
$0.24
$2.70
($0.05)
$0.96
$2.87
$2.23
$0.41
$1.18
($0.02)
$0.77
$4.79
$0.68
$1.56
Member NYSE, SPIC
$6.63
$0.53
$1.36
$0.91
$4.03
$1.96
$6.62
$0.00
$2.45
($0.46)
$1.05
$1.66
$2.86
$0.28
$1.56
$0.36
$1.09
$5.65
$1.04
$1.77
$6.67
$1.30
$2.16
$1.26
$4.87
$1.75
$7.26
$0.00
$3.00
$0.00
$2.03
$2.18
$1.60
$0.26
$2.45
$0.51
$1.64
$6.41
$1.46
$2.01
P/E
Ratio
FY1E
5.6
20.2
13.4
23.7
12.0
13.5
11.8
NM
12.6
NM
15.1
12.4
1.7
13.8
13.1
19.4
14.2
16.8
10.0
13.7
P/E
Ratio
FY2E
Market
Cap
($ Mil)
5.5
$2,381.2
8.3
$463.4
8.4
$1,009.3
17.2
$1,165.6
9.9
$41,042.5
15.1
$2,796.8
10.7
$8,438.5
NM
$241.2
10.3
$1,123.4
NM
$343.8
7.8
$4,576.0
9.4
$5,173.0
3.1
$423.8
14.8
$469.8
8.3
$2,985.4
13.7
$446.6
9.5
$3,394.9
14.8 $122,245.4
7.2
$531.1
12.1
$3,696.2
BVPS
$38.09
$8.11
$13.66
$5.19
$18.25
$15.89
$45.20
$4.77
$37.76
$7.31
$20.26
$29.25
$5.60
$5.27
$19.48
$8.24
$4.85
$31.28
$5.70
$26.78
FY1E
% Sls
Grth
(3.7)
35.7
27.8
28.7
17.4
43.9
10.2
(12.1)
7.1
(43.1)
10.2
(24.5)
(11.0)
0.6
16.2
9.7
26.3
13.9
15.8
9.5
INSURANCE BROKERAGE
JOHN CAMPBELL, 501-377-6362
John is a research analyst covering the insurance brokerage and real estate services sectors. John joined Stephens in May 2011 as a research associate in
the bank technology, title insurance and insurance brokerage space. He was promoted into a lead analyst role in February 2014. Prior to joining Stephens
Inc., John was a senior strategy planning analyst at FedEx Corporation focusing on the development and implementation of corporate strategy. He graduated
from the University of Mississippi in 2005 with a B.A. in banking & finance and later received an M.B.A. in 2011 from the University of Mississippi.
Sector Overview: Our insurance brokerage coverage focuses on property and casualty brokers primarily focusing on middle-market accounts and
above. While the number of public brokers has fallen dramatically due to M&A, we expect many of these brokers to resurface once the pricing environment
improves. We think insurance brokerage is an outstanding industry given its 90% customer retention, high margins, high returns on capital, attractive cash
flows and given the fragmented nature of the business, and the ability to grow through M&A.
Shares
Price
Out.
Target
Mil.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
FINANCIAL SERVICES
Insurance Brokerage, John Campbell, 501-377-6362, [email protected]
AJG
op
Dec
O
$47.73 $55.00
Brown & Brown, Inc.
BRO
cs
Dec
E
$31.77 $33.00
Willis Group Holdings
WSH
op
Dec
E
$42.46 $43.00
161.4
144.5
178.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.14
$1.94
$2.67
Member NYSE, SPIC
$2.48
$2.18
$2.44
$2.90
$2.50
$2.84
P/E
Ratio
FY1E
19.2
14.6
17.4
P/E
Ratio
FY2E
16.5
12.7
15.0
Market
Cap
($ Mil)
$7,702.4
$4,567.4
$7,519.5
BVPS
$20.18
$14.64
$12.73
FY1E
% Sls
Grth
44.8
16.2
4.1
REAL ESTATE SERVICES
JOHN CAMPBELL, 501-377-6362
John is a research analyst covering the insurance brokerage and real estate services sectors. John joined Stephens in May 2011 as a research associate in
the bank technology, title insurance and insurance brokerage space. He was promoted into a lead analyst role in February 2014. Prior to joining Stephens
Inc., John was a senior strategy planning analyst at FedEx Corporation focusing on the development and implementation of corporate strategy. He graduated
from the University of Mississippi in 2005 with a B.A. in banking & finance and later received an M.B.A. in 2011 from the University of Mississippi.
Sector Overview: We see three dominant trends that are shaping the U.S. residential housing market. First, slow unit growth of new/existing home sales
driven by higher rates, student debt inhibiting first-time buyers, and low levels of home equity limiting the trade-up market. Second, the consolidation of
mortgage lending driven by the economic recession and the government’s response to it. Third, lenders giving larger share of wallet to fewer vendors and
outsourcing more functions surrounding mortgage underwriting to third parties in response to regulatory factors. To win in this market, we think real estate
services providers will need to run a tight operation to drive high incremental margins from the limited demand curve they face, drive revenue growth with
share taking via organic cross sales or M&A to offer more services, and offering centralized/bundled products.
Shares
Price
Out.
Target
Mil.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
FINANCIAL SERVICES
Real Estate Services, John Campbell, 501-377-6362, [email protected]
Bankrate, Inc.
RATE
adj
Dec
E
$11.70 $11.00
Conversant, Inc.
CNVR
adj
Dec
E
$34.89 $35.00
CoreLogic
CLGX
adj
Dec
E/V
$32.21 $32.00
Ellie Mae, Inc.
ELLI
adj
Dec
E/V
$40.54 $31.00
FNF
pf/cs Dec
E
$30.52 $31.00
FAF
op
Dec
E
$30.98 $31.00
FNFV Group
FNFV
pf/cs Dec
O/V
$14.43 $16.00
Marchex, Inc.
MCHX
csh
Dec
O/V
$3.70
$6.00
NIC Inc.
EGOV
adj
Dec
O
$17.40 $21.00
QuinStreet, Inc.
QNST
adj
Jun
E/V
$4.30
$4.50
STC
op
Dec
O/V
$34.56 $38.00
Tree.com
TREE
adj
Dec
O/V
$45.30 $50.00
Zillow, Inc.
Z
adj
Dec
O/V
$120.96 $150.00
104.4
64.4
89.7
28.3
276.9
107.3
92.3
37.6
65.3
44.4
21.4
11.3
34.1
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.53
$1.56
$1.69
$0.99
$2.40
$1.73
NA
$0.17
$0.60
$0.23
$2.39
$1.32
$0.17
Member NYSE, SPIC
$0.67
$1.59
$1.37
$0.90
$1.76
$1.96
$0.46
$0.17
$0.66
$0.11
$1.04
$1.48
$0.40
$0.83
$2.00
$1.73
$0.87
$2.29
$2.23
$0.40
$0.20
$0.73
$0.26
$2.83
$1.74
$0.99
P/E
Ratio
FY1E
17.5
21.9
23.5
45.0
17.3
15.8
31.4
21.8
26.4
39.1
33.2
30.6
NM
P/E
Ratio
FY2E
14.1
17.4
18.6
46.6
13.3
13.9
36.1
18.5
23.8
16.5
12.2
26.0
NM
Market
Cap
($ Mil)
$1,221.9
$2,248.1
$2,890.5
$1,165.3
$8,481.8
$3,323.1
$1,341.2
$139.2
$1,136.2
$190.9
$796.8
$513.1
$4,166.6
BVPS
FY1E
% Sls
Grth
$8.29
$7.90
$11.55
$7.98
$16.13
$24.04
NA
$4.12
$1.76
$3.30
$29.96
$6.93
$14.50
20.6
5.5
0.0
22.0
8.7
(7.8)
5.0
17.2
9.3
(1.8)
(6.7)
19.0
63.7
REGIONAL BANKS
MATT OLNEY, CFA, 501-377-2101
Matt is a managing director leading the regional banks practice. He joined Stephens in 2004 as an associate analyst covering the regional banks sector. In
2007, he became a research analyst covering small cap banks and thrifts in the Southeast. Prior to joining Stephens Inc., Matt resided in Houston, TX, where
he worked in various roles for Wells Fargo, UBS and Enron. He holds a B.B.A. with a focus in finance and management information systems from the
University of Oklahoma. Matt earned his Chartered Financial Analyst designation in 2007.
Sector Overview: Our Regional Banks team covers small-to-mid-cap stocks throughout the U.S. Our coverage may focus on attractive long-term
investments or on growth companies that have distinct growth advantage. In addition, the banking industry remains highly fragmented and we seek to
identify companies that can capitalize on industry consolidation.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Company
Tkr
FINANCIAL SERVICES
Regional Banks, Matt Olney, CFA, 501-377-2101, [email protected]
BancorpSouth, Inc.
BXS
op
Dec
E
$22.03
Bank of the Ozarks, Inc.
OZRK
op
Dec
O
$35.66
BOK Financial
BOKF
op
Dec
E
$66.83
Commerce Bancshares, Inc.
CBSH
op
Dec
E
$45.42
CFR
op
Dec
E
$78.57
First Financial Bankshares
FFIN
op
Dec
E
$30.74
FHN
Dec
O
$12.74
Hancock Holding Co.
HBHC
op
Dec
E
$34.11
HTH
op
Dec
O
$20.44
Home BancShares, Inc.
HOMB
op
Dec
O
$31.44
IBERIABANK Corp.
IBKC
op
Dec
O
$66.44
IBTX
op
Dec
E
$43.02
MidSouth Bancorp, Inc.
MSL
op
Dec
O
$18.50
National Bank Holdings Corp.
NBHC
op
Dec
E
$19.21
Pinnacle Financial Partners
PNFP
op
Dec
E
$37.88
PB
op
Dec
E
$58.95
RF
op
Dec
O
$10.07
Renasant Corp.
RNST
op
Dec
O
$28.73
Simmons First National Corp.
SFNC
op
Dec
O
$40.09
Southwest Bancorp, Inc.
OKSB
op
Dec
O
$17.28
Texas Capital Bancshares
TCBI
op
Dec
O
$57.83
TriState Capital Holdings
TSC
op
Dec
E
$9.76
UMB Financial
UMBF
op
Dec
E
$57.35
United Community Banks, Inc.
UCBI
op
Dec
E
$17.81
VBTX
op
Dec
O
$15.45
ViewPoint Financial Group
VPFG
op
Dec
O
$25.81
Price
Target
$22.00
$39.00
$68.00
$43.00
$77.00
$27.00
$14.00
$34.00
$25.00
$36.00
$76.00
$48.00
$22.00
$20.00
$40.00
$60.00
$11.50
$33.00
$44.00
$20.00
$67.00
$11.00
$60.00
$18.00
$17.00
$30.00
Shares
Out.
Mil.
96.1
79.7
69.3
91.6
63.1
64.1
237.2
81.9
90.2
66.5
33.4
16.4
11.3
39.2
35.6
69.8
1,378.5
31.5
17.9
19.8
43.2
28.7
45.5
50.1
9.1
40.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.08
$1.20
$4.63
$2.77
$3.80
$1.28
$0.11
$2.22
$1.28
$1.33
$3.13
$1.83
$1.08
$0.18
$1.72
$3.69
$0.79
$1.37
$1.68
$0.88
$2.91
$0.48
$2.97
($0.09)
$0.57
$0.85
Member NYSE, SPIC
$1.29
$1.52
$4.25
$2.75
$4.31
$1.43
$0.68
$2.34
$1.11
$1.77
$3.72
$2.16
$1.46
$0.17
$2.01
$4.24
$0.83
$1.88
$2.29
$0.80
$2.84
$0.54
$3.00
$1.10
$0.70
$0.96
$1.48
$2.04
$4.34
$2.82
$4.56
$1.53
$0.85
$2.42
$1.71
$1.96
$4.77
$2.52
$1.54
$0.53
$2.22
$4.22
$0.89
$2.12
$3.13
$0.89
$3.55
$0.79
$3.31
$1.27
$0.75
$1.61
P/E
Ratio
FY1E
17.1
23.5
15.7
16.5
18.2
21.5
18.7
14.6
18.4
17.8
17.9
19.9
12.7
NM
18.8
13.9
12.1
15.3
17.5
21.6
20.4
18.1
19.1
16.2
22.1
26.9
P/E
Ratio
FY2E
14.9
17.5
15.7
16.5
18.2
21.5
18.7
14.6
18.4
16.0
13.9
17.1
12.0
36.2
17.1
14.0
11.3
13.6
12.8
19.4
16.3
12.4
17.3
14.0
20.6
16.0
Market
Cap
($ Mil)
$2,116.9
$2,842.3
$4,633.8
$4,165.3
$4,954.5
$1,969.4
$2,997.1
$2,782.3
$1,843.3
$2,123.1
$2,222.2
$732.1
$209.8
$747.7
$1,350.8
$4,112.9
$13,861.1
$906.0
$722.5
$336.2
$2,642.9
$280.2
$2,609.0
$893.6
$146.2
$1,032.6
BVPS
$16.77
$10.67
$46.77
$23.35
$42.40
$10.08
$9.48
$30.56
$15.49
$13.77
$54.35
$28.54
$14.25
$20.26
$21.93
$45.63
$11.79
$21.83
$25.36
$13.90
$30.04
$10.48
$35.51
$12.22
$11.52
$14.10
FY1E
% Sls
Grth
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
REGIONAL BANKS
TYLER STAFFORD 501-377-8362
Tyler is a research analyst covering the regional banks sector. Tyler began his career at Stephens in September 2011 as a research associate within the
regional banks sector. Prior to joining Stephens, he was a credit analyst for Regions Financial Corporation from 2008 to 2011. Tyler graduated from Harding
University with a B.B.A. in management and received a masters in finance from the University of Memphis.
Sector Overview: Our Regional Banks team covers small-to-mid-cap stocks throughout the U.S. Our coverage may focus on attractive long-term
investments or on growth companies that have distinct growth advantage. In addition, the banking industry remains highly fragmented and we seek to
identify companies that can capitalize on industry consolidation.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
FINANCIAL SERVICES
Regional Banks, Tyler Stafford, 501-377-8362, [email protected]
State Bank Financial Corp.
STBZ
op
Dec
O
$19.09
SNV
op
Dec
O
$25.71
Shares
Price
Out.
Target
Mil.
$21.00
$29.00
32.2
139.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.37
$0.99
Member NYSE, SPIC
$0.97
$1.46
$1.21
$1.63
P/E
Ratio
FY1E
19.7
17.6
P/E
Ratio
FY2E
15.8
15.8
Market
Cap
($ Mil)
$616.1
$3,511.2
BVPS
$13.95
$21.22
FY1E
% Sls
Grth
NA
NA
SPECIALTY FINANCE
J.R. BIZZELL, 501-377-8237
J.R. is a research analyst covering the specialty finance industry. He began his career at Stephens in 2011 as a research associate where he assisted in the
development of the restaurant practice. J.R. obtained his B.S. in biology from Rhodes College in Memphis, TN.
Sector Overview: Specialty Finance companies are generally non-bank institutions that provide credit and other financial services to a target niche.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
FINANCIAL SERVICES
Specialty Finance, J.R. Bizzell, 501-377-8237, [email protected]
America's Car-Mart, Inc.
CRMT
Apr
E
Consumer Portfolio Services
CPSS
adj
Dec
O/V
Regional Management
RM
adj/cs Dec
E
SC
Dec
O
Springleaf Holdings, Inc.
LEAF
Dec
O
World Acceptance Corp.
WRLD
Mar
E
$44.00
$6.98
$12.42
$18.63
$38.04
$78.37
Price
Target
$45.50
$9.00
$14.00
$24.00
$42.00
NE
Shares
Out.
Mil.
8.5
25.3
12.7
349.0
114.8
9.6
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.77
$0.57
$2.40
$2.01
$1.92
$9.17
Member NYSE, SPIC
$2.93
$0.92
$1.22
$2.22
$2.04
$10.42
$3.26
$1.10
$1.71
$2.33
$2.35
$11.77
P/E
Ratio
FY1E
15.0
7.6
10.2
8.4
18.6
7.5
P/E
Ratio
FY2E
13.5
6.3
7.3
8.0
16.2
6.7
Market
Cap
($ Mil)
$375.7
$177.1
$158.3
$6,501.5
$4,368.2
$741.5
BVPS
$25.12
$4.89
$13.53
$9.47
$14.61
$29.58
FY1E
% Sls
Grth
4.1
17.0
20.4
41.5
22.1
2.1
DIAGNOSTICS AND LIFE SCIENCES TOOLS
DREW JONES, 501-377-2369
Drew is a research analyst leading the diagnostics and life science tools sector. Drew joined Stephens in November 2007 as an associate in the medical
technology sector and was promoted to analyst in August 2010. Prior to Stephens, he spent two years at Morgan Keegan covering homeland security
technology. Drew holds a B.A. From the University of the South and an MBA from the Owen Graduate School of Management at Vanderbilt University.
Sector Overview: The Diagnostics and Life Science Tools industry consists of companies that design, manufacture, and distribute diagnostic products to the
medical, veterinary, and food/animal safety markets. Our focus is on emerging diagnostic technologies in fields of molecular diagnostics, immunodiagnostics,
and clinical chemistry. It is our belief that diagnostics will play an increasingly important role in healthcare looking forward with increased focus on catching
diseases early in the disease state to reduce costs. Additionally, we believe the personalized medicine movement is only in its infant stages, and in the future,
we feel therapeutic decisions will be custom tailored to the individual to best fit the individual patient’s genetic makeup. We look to cover companies that
support these emerging trends, which we believe have the potential to revolutionize the way medicine is practiced. Additionally, we look for companies with
strong fundamentals including solid management, large market opportunities, strong intellectual property positions, and innovative/value adding products.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
Company
Tkr
HEALTHCARE
Diagnostics and Life Sciences Tools, Drew Jones, 501-377-2369, [email protected]
Abaxis, Inc.
ABAX
pf
Mar
E/V
$54.07 $49.00
EXACT Sciences Corp.
EXAS
pf
Dec
E/V
$22.61 $23.00
Genomic Health, Inc.
GHDX
pf
Dec
E/V
$31.86 $29.00
Luminex Corp.
LMNX
pf
Dec
E/V
$18.07 $22.00
Myriad Genetics, Inc.
MYGN
pf
Jun
O/V
$32.16 $48.00
Neogen Corp.
NEOG
pf
May
O/V
$41.59 $51.00
Neogenomics Inc.
NEO
Dec
O/V
$4.56
$7.00
OraSure Technologies, Inc.
OSUR
pf
Dec
E/V
$8.67
$9.00
Repligen Corp.
RGEN
pf
Dec
O/V
$23.07 $25.00
TearLab Corp.
TEAR
pf
Dec
O/V
$2.45
$5.00
Techne Corp.
TECH
pf
Jun
O/V
$89.17 $113.00
VCA, Inc.
WOOF
pf
Dec
E
$46.15 $44.00
Veracyte, Inc.
VCYT
Dec
O/V
$6.54 $14.00
22.5
82.9
31.5
42.8
73.0
36.8
57.0
56.0
32.7
33.6
37.0
86.2
21.5
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.63
($0.69)
($0.42)
$0.40
$2.42
$0.75
$0.04
($0.29)
$0.11
($0.58)
$3.39
$1.68
($6.15)
Member NYSE, SPIC
$0.98
($1.25)
($0.82)
$0.52
$1.90
$0.93
$0.01
($0.11)
$0.23
($0.69)
$3.62
$1.89
($1.38)
$1.22
($1.22)
($0.46)
$0.56
$2.22
$1.13
$0.07
$0.06
$0.36
($0.54)
$3.80
$2.11
($1.11)
P/E
Ratio
FY1E
55.2
NM
NM
34.8
16.9
44.7
NM
NM
NM
NM
24.6
24.4
NM
P/E
Ratio
FY2E
44.3
NM
NM
32.3
14.5
36.8
65.1
NM
64.1
NM
23.5
21.9
NM
Market
Cap
($ Mil)
$1,218.5
$1,904.9
$1,010.7
$774.0
$2,347.2
$1,535.8
$273.5
$486.0
$754.9
$82.3
$3,306.1
$3,882.4
$147.2
BVPS
$8.77
$2.59
$4.47
$6.86
$9.78
$8.64
$1.04
$2.86
$3.54
$1.04
$21.44
$15.43
$2.10
FY1E
% Sls
Grth
23.0
(24.4)
6.2
5.7
3.9
12.0
27.8
7.0
23.8
36.3
29.4
6.1
73.1
HEALTHCARE IT
MOHAN NAIDU, CFA, 312-292-5751
Mohan Naidu, CFA, leads the company’s equity research efforts in the healthcare information technology sector. Prior to joining Stephens in June 2013,
Mohan covered healthcare IT at Piper Jaffray for five years. Before getting into equity research in 2008, he spent eight years at GE Healthcare IT holding
broad ranging roles from product development to sales and hospital management. Mohan has an MBA from Northwestern University and a masters in
computer science from Syracuse University. He also holds the Chartered Financial Analyst (CFA) designation.
Sector Overview: The Healthcare IT (HIT) industry mainly consists of technology and service providers to various healthcare stakeholders. The core group
of HIT vendors provides Electronic Health Records (EHR) and financial systems to hospitals and/or physicians. Non-core vendors provide connectivity and
productivity solutions to the broader healthcare industry. The HIT industry gained significant traction on recent government incentive programs designed to
increase HIT adoption, and ultimately use technology to cut costs and improve quality. Healthcare Reform further increases the need for HIT. We see
significant growth opportunities as HIT finds new applications.
Our research focuses on detecting fundamental changes in the marketplace, and identifying the players who stand to gain and lose in the evolving healthcare
ecosystem. Our strength is a thorough understanding of both products and customer views, which helps us to pick the right themes and stocks.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
HEALTHCARE
Healthcare IT, Mohan Naidu, 312-292-5751, [email protected]
Allscripts Healthcare Solutions
MDRX
adj
Dec
E
$12.17 $14.00
athenahealth, Inc.
ATHN
adj
Dec
O/V
$123.51 $167.00
Cerner Corp.
CERN
adj
Dec
O
$63.57 $69.00
Computer Programs & Systems
CPSI
Dec
E
$59.80 $59.00
Healthways Inc.
HWAY
Dec
U
$15.26 $12.00
HMS Holdings Corp.
HMSY
adj
Dec
O
$20.06 $25.00
Imprivata, Inc.
IMPR
Dec
O
$13.49 $20.00
MedAssets, Inc.
MDAS
adj
Dec
E
$19.40 $18.00
Omnicell, Inc.
OMCL
adj
Dec
O
$31.87 $36.00
Premier, Inc.
PINC
adj
Jun
E
$34.15 $33.00
QSII
adj
Mar
E
$14.80 $16.00
The Advisory Board Co.
ABCO
adj
Mar
O
$41.69 $63.00
Vocera Communications, Inc.
VCRA
adj
Dec
E
$9.75 $12.00
Shares
Out.
Mil.
180.2
38.0
341.1
11.2
35.3
87.7
23.8
60.1
35.9
32.4
60.2
36.3
25.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.27
$1.15
$1.41
$2.95
($0.25)
$0.75
NA
$1.32
$1.08
$1.27
$0.70
$1.22
($0.05)
Member NYSE, SPIC
$0.34
$1.10
$1.65
$3.20
($0.06)
$0.55
($1.18)
$1.36
$1.23
$1.42
$0.56
$1.32
($0.61)
$0.55
$1.33
$2.09
$3.29
($0.36)
$0.82
($0.28)
$1.46
$1.42
$1.56
$0.72
$1.48
($0.29)
P/E
Ratio
FY1E
35.8
NM
38.5
18.7
NM
36.5
NM
14.3
25.9
24.0
26.4
31.6
NM
P/E
Ratio
FY2E
22.1
92.9
30.4
18.2
NM
24.5
NM
13.3
22.4
21.9
20.6
28.2
NM
Market
Cap
($ Mil)
$2,192.9
$4,705.0
$21,707.4
$670.3
$540.1
$1,761.0
$320.6
$1,168.0
$1,134.7
$1,266.1
$892.0
$1,501.3
$249.1
BVPS
$7.12
$11.54
$9.56
$6.69
$8.43
$5.93
$2.94
$7.86
$10.53
$23.94
$4.82
$8.85
$4.67
FY1E
% Sls
Grth
1.5
25.1
15.8
2.5
12.9
(9.5)
33.2
5.5
14.0
13.0
7.8
14.1
(8.2)
HEALTHCARE SERVICES
DANA HAMBLY, CFA, 615-279-4329
Dana is a research analyst covering healthcare services. Dana joined Stephens in February 2012 as a research associate and was promoted to analyst in
January 2013. Prior to joining Stephens he was a research associate at Jefferies & Company from 2006 to 2011 covering various healthcare sectors including
healthcare services, healthcare IT and distribution. Dana holds a B.A. from Georgetown University and an MBA from the Owen Graduate School of
Management at Vanderbilt University.
Sector Overview: Healthcare Services generally includes companies that operate healthcare facilities such as hospitals, nursing homes, and ambulatory
surgery centers. In addition, this subsector of the overall healthcare industry also includes specialty operators, outsourced services and providers of
healthcare to patients where they reside. Our primary focus is on niche providers of healthcare to highly specific patients, markets and/or service areas. Our
coverage list includes companies in such areas as ambulatory surgery, emergency medical transport and care, behavioral healthcare, dialysis, home health,
long-term care and animal health.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
HEALTHCARE
Healthcare Services, Dana Hambly, 615-279-4329, [email protected]
Acadia Healthcare Co.
ACHC
adj
Dec
O/V
$62.01
Addus HomeCare Corp.
ADUS
Dec
O
$21.66
Air Methods Corp.
AIRM
op
Dec
O/V
$44.42
BioScrip, Inc.
BIOS
adj
Dec
O/V
$5.80
BKD
cs
Dec
O/V
$34.66
CSU
cs
Dec
O/V
$24.20
Ensign Group, The
ENSG
adj
Dec
O/V
$38.60
Hanger Inc.
HGR
op
Dec
E/V
$20.01
IPC The Hospitalist Co.
IPCM
Dec
E/V
$42.18
MEDNAX, Inc.
MD
Dec
E
$63.80
SKH
adj
Dec
O/V
$6.90
Team Health Holdings
TMH
pf
Dec
O/V
$55.03
USPH
cs
Dec
O/V
$37.90
Shares
Price
Out.
Target
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$66.00
$32.00
$58.00
$10.00
$45.00
$30.00
$48.00
$24.00
$44.00
$65.00
$9.00
$68.00
$46.00
$1.07
$0.99
$1.59
($0.07)
$2.50
$1.53
$2.53
$1.95
$2.19
$2.78
$0.32
$1.83
$1.44
59.9
11.0
39.2
68.6
183.4
29.1
22.5
35.2
17.2
100.4
24.6
71.1
12.2
Member NYSE, SPIC
$1.53
$1.07
$2.34
($0.93)
$2.60
$1.41
$2.21
$1.62
$2.28
$3.15
$0.40
$2.26
$1.70
$1.98
$1.24
$2.88
$0.02
$2.95
$1.55
$2.48
$1.86
$2.49
$3.47
$0.55
$2.32
$1.94
P/E
Ratio
FY1E
40.5
20.2
19.0
NM
13.3
17.2
17.5
12.4
18.5
20.3
17.3
24.3
22.3
P/E
Ratio
FY2E
31.3
17.5
15.4
NM
11.7
15.6
15.6
10.8
16.9
18.4
12.5
23.7
19.5
Market
Cap
($ Mil)
$3,715.6
$238.0
$1,741.5
$398.1
$6,357.0
$704.1
$867.7
$706.2
$726.4
$6,406.5
$169.9
$3,913.1
$465.0
BVPS
$14.82
$10.88
$10.49
$4.59
$8.02
$5.08
$10.32
$16.25
$20.67
$24.99
$2.31
$5.59
$11.18
FY1E
% Sls
Grth
41.6
18.2
13.0
16.4
31.8
9.2
12.8
1.9
14.1
12.6
(1.0)
16.8
11.8
MEDICAL DEVICES
CHRIS COOLEY, CFA, 501-377-2516
Chris is a managing director leading the medical devices and hospital supply sector. Chris joined Stephens in July 2010 and has over 20 years of equity
research experience. He was ranked #3 for stock selection by the Wall Street Journal All-Star Analyst Survey as well as StarMine/ Financial Times in 2011
and was ranked #1 for stock selection by both the Wall Street Journal All-Star Analyst Survey and by StarMine /Financial Times for his work in the sector
during 2009. Additionally, Chris has received votes in the Institutional Investor All-Star annual survey for his work in the sector. Prior to joining Stephens,
Chris began his professional career with Dean Witter and also worked for Cargill, Inc., Morgan Keegan, SunTrust Equitable Securities and FTN Equity Capital
Markets. Chris received a masters in business administration, with concentrations in finance and operations management from the University of Tennessee
and a bachelor of science degree in economics from the University of Arkansas.
Sector Overview: The Medical Devices industry consists of companies that design, manufacture, and distribute various devices used in the diagnosis and
treatment of a wide variety of medical conditions. The primary market driver remains demographic trends - the U.S. Census Bureau projects that roughly
40% of the U.S. population will be 45 years of age or older by 2008. These demographic trends coupled with Americans’ higher expectations relating to
lifestyle/quality of life issues and demands for access to the latest medical technologies will drive growth for the industry. The Medical Devices team is
focused on companies with technologies that are well positioned to benefit from these ongoing trends. We look for companies within our areas of focus that
we believe have significant market opportunities, innovative and value adding products, quality management teams, and solid fundamentals.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
HEALTHCARE
Medical Devices, Chris Cooley, CFA, 501-377-2516, [email protected]
Abiomed, Inc.
ABMD
adj
Mar
O/V
$34.62
Align Technology
ALGN
pf
Dec
O/V
$54.42
DexCom, Inc.
DXCM
pf
Dec
O/V
$50.48
Endologix, Inc.
ELGX
pf
Dec
O/V
$12.19
Hologic, Inc.
HOLX
adj
Sep
E/V
$26.29
Insulet Corp.
PODD
pf
Dec
E/V
$44.23
LDR Holding Corp.
LDRH
Dec
O/V
$35.13
Merit Medical Systems, Inc.
MMSI
pf
Dec
E
$14.65
NxStage Medical, Inc.
NXTM
Dec
O
$17.44
RTI Surgical, Inc.
RTIX
adj
Dec
E/V
$4.94
Sirona Dental Systems
SIRO
pf
Sep
O/V
$82.76
STAAR Surgical Co.
STAA
pf
Dec
O/V
$8.62
STERIS Corp.
STE
pf
Mar
O
$62.19
Synergetics USA, Inc.
SURG
Jul
O/V
$3.55
Teleflex Inc.
TFX
adj
Dec
E
$115.12
The Cooper Companies
COO
pf
Oct
E
$167.93
Price
Target
$40.00
$70.00
$50.00
$14.00
$30.00
$40.00
$40.00
$14.00
$20.00
$5.50
$90.00
$14.00
$72.00
$7.00
$118.00
$176.00
Shares
Out.
Mil.
40.5
80.8
76.6
67.0
277.8
56.1
26.1
43.2
61.8
56.8
57.8
38.6
59.4
25.4
41.4
48.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.50
$1.56
($0.42)
($0.09)
$1.52
($0.53)
($1.19)
$0.73
($0.31)
($0.34)
$3.41
$0.19
$2.49
$0.12
$4.99
$6.41
Member NYSE, SPIC
$0.69
$1.77
($0.40)
($0.38)
$1.54
($0.03)
($0.57)
$0.73
($0.43)
$0.03
$3.65
$0.04
$2.89
$0.15
$5.70
$7.40
$0.83
$2.09
$0.05
($0.24)
NE
$0.31
($0.43)
$0.74
($0.25)
$0.20
$4.08
$0.14
$3.14
NE
$6.52
$8.41
P/E
Ratio
FY1E
50.2
30.7
NM
NM
17.1
NM
NM
20.1
NM
NM
22.7
NM
21.5
23.7
20.2
22.7
P/E
Ratio
FY2E
41.7
26.0
NM
NM
NM
NM
NM
19.8
NM
24.7
20.3
61.6
19.8
NM
17.7
20.0
Market
Cap
($ Mil)
$1,415.8
$4,369.0
$3,864.9
$816.6
$7,302.3
$2,480.5
$915.4
$635.9
$1,081.0
$281.1
$4,780.5
$333.2
$3,695.5
$90.0
$4,767.6
$8,108.0
BVPS
$4.22
$8.37
$1.32
$2.16
$7.43
$1.49
$4.28
$9.62
$3.08
$2.95
$23.45
$1.09
$17.92
$2.48
$45.67
$55.03
FY1E
% Sls
Grth
14.9
15.4
53.0
10.6
1.6
20.2
23.2
13.9
12.8
32.0
5.5
10.5
16.7
3.2
8.2
9.4
BUILDING MATERIALS AND CONSTRUCTION SERVICES
TREY GROOMS, 501-377-2318
Trey is a managing director leading the building materials and construction services sector. Trey joined Stephens Inc. in July 2001 as an analyst in the
Corporate Finance department focusing on several industries including home building and land development, life sciences, food, and consumer products. He
then became an associate in Equity Research in April 2003, covering the information technology and services industry and was promoted to analyst in
January 2006. Trey holds a B.B.A. in finance from the University of Arkansas at Little Rock.
Sector Overview: Our group is focused on identifying companies with exposure to the residential replacement and new construction markets, as well as
infrastructure and other public works construction markets. We seek to identify companies that possess strong growth opportunities, leading market
positions, unique value-added services, and proprietary products. The areas of focus include construction materials, installation & distribution, specialty
products, and construction services.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
INDUSTRIALS
Building Materials and Construction Services, Trey Grooms, 501-377-2318, [email protected]
Beacon Roofing Supply, Inc.
BECN op/cs Sep
O/V
$28.12 $33.00
49.4
$1.44
Builders FirstSource, Inc.
BLDR
op
Dec
O/V
$5.78
$7.00
98.1
$0.06
Continental Building Products
CBPX
op
Dec
E/V
$15.16 $19.00
44.1
$0.83
Eagle Materials
EXP
op
Mar
O/V
$87.90 $110.00
50.2
$2.55
GLDD
op
Dec
E/V
$7.15
$8.00
60.1
$0.33
MLM
op
Dec
O
$128.19 $145.00
66.9
$2.62
NCS
op
Oct
O/V
$18.85 $23.00
73.5 ($0.01)
Norcraft Companies
NCFT
op
Dec
O
$17.97 $23.00
17.3 ($0.12)
Orion Marine Group
ORN
Dec
O/V
$11.36 $14.00
27.5
$0.01
Ply Gem Holdings, Inc.
PGEM
op
Dec
O/V
$12.34 $15.00
67.9 ($0.47)
Polaris Industries, Inc.
PII
op
Dec
O
$156.17 $175.00
66.0
$5.35
Sherwin-Williams Co.
SHW
op
Dec
E
$240.85 $250.00
96.0
$7.67
Stock Building Supply Holdings
STCK
op
Dec
O/V
$15.20 $17.00
26.2
$0.27
Trex Company
TREX
op
Dec
E/V
$41.61 $40.00
32.0
$1.73
U.S. Silica Holdings, Inc.
SLCA
op
Dec
E/V
$42.69 $48.00
53.9
$1.49
USG Corp.
USG
op
Dec
E/V
$28.08 $30.00
144.7
$0.26
VMC
op
Dec
O
$67.67 $76.00
131.7
$0.05
Member NYSE, SPIC
$1.18
$1.65
$0.17
$0.41
$0.53
$0.93
$3.46
$5.60
$0.19
$0.72
$3.62
$5.77
$0.15
$0.51
$0.85
$1.28
$0.16
$0.45
($0.09) $0.67
$6.62
$7.90
$8.93 $10.88
$0.46
$0.78
$1.24
$1.55
$2.43
$3.39
$1.24
$2.10
$0.92
$1.85
P/E
Ratio
FY1E
23.8
34.0
28.6
25.4
37.6
35.4
NM
21.1
71.0
NM
23.6
27.0
33.0
33.6
17.6
22.6
73.6
P/E
Ratio
FY2E
17.0
14.1
16.3
15.7
9.9
22.2
37.0
14.0
25.2
18.4
19.8
22.1
19.5
26.8
12.6
13.4
36.6
Market
Cap
($ Mil)
$1,387.7
$567.3
$668.1
$4,418.1
$430.0
$8,623.3
$1,386.1
$311.1
$312.6
$837.2
$10,369.2
$23,121.1
$397.9
$1,331.8
$2,301.6
$4,064.1
$8,912.3
BVPS
$16.09
$0.36
$6.45
$18.35
$3.93
$65.39
$3.19
$2.66
$8.40
($1.08)
$12.05
$15.54
$5.02
$3.35
$7.26
$5.28
$32.09
FY1E
% Sls
Grth
2.7
8.1
6.3
14.9
9.6
37.6
8.4
9.1
8.7
12.4
18.3
10.0
9.2
13.1
58.8
4.8
9.5
INDUSTRIAL PRODUCTS AND SERVICES
MATT DUNCAN, CFA, 501-377-3723
Matt is a managing director leading the industrial products and services practice. Matt joined Stephens in January 2000 and has been an analyst since May
2004. He previously covered the cardiology devices segment of the medical devices industry and was a member of the medical devices research team for
over five years. He graduated magna cum laude with a B.S.B.A. in finance from the University of Arkansas in May 2000 where he served as President of the
Finance Club and was selected as an Outstanding Finance Student.
Sector Overview: Our Industrial Products and Services research team focuses primarily on two industry sub-segments: 1) industrial distribution firms and
2) engineering and construction (E&C)/ industrial service firms. The industrial distribution industry is large and highly fragmented, with over 100,000
participants in North America. We look for distribution companies that have leading market positions in their product verticals, a meaningful amount of
operating leverage and/or differentiated service platforms. Within the E&C and industrial service industry, we focus on small- to mid-cap companies with an
emphasis on those that serve energy end markets (oil & gas and power generation).
Shares
Price
Out.
Target
Mil.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
INDUSTRIALS
Industrial Products and Services, Matt Duncan, CFA, 501-377-3723, [email protected]
Altra Holdings, Inc.
AIMC
op
Dec
O/V
$30.10 $37.00
26.7
Applied Industrial Technologies
AIT
pf
Jun
E
$48.11 $52.00
41.5
DXP Enterprises
DXPE
Dec
O/V
$63.26 $85.00
14.5
Furmanite Corp.
FRM
pf
Dec
O/V
$6.29
$8.00
37.9
Kaman Corp.
KAMN
pf
Dec
E
$39.83 $42.00
27.9
Matrix Service Co.
MTRX
pf
Jun
O/V
$22.24 $29.00
27.1
Mistras Group, Inc.
MG
pf
May
O/V
$16.79 $24.00
28.6
MRC Golbal Inc.
MRC
pf
Dec
E/V
$21.39 $25.00
102.0
MSC Industrial Direct Co.
MSM
pf
Aug
E
$78.77 $87.00
49.0
NOW, Inc.
DNOW
pf
Dec
E/V
$27.53 $30.00
107.7
Pool Corp.
POOL
pf
Dec
O
$58.52 $65.00
44.1
RYI
pf
Dec
E/V
$9.99 $11.00
32.0
Team, Inc.
TISI
pf
May
O/V
$41.30 $48.00
21.3
W.W. Grainger, Inc.
GWW
pf
Dec
O
$244.34 $270.00
68.4
Watsco, Inc.
WSO
Dec
E
$100.20 $106.00
30.1
WESCO International, Inc.
WCC
pf
Dec
O/V
$84.82 $92.00
44.5
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.64
$2.57
$3.87
$0.37
$2.16
$1.51
$0.70
$1.52
$3.93
$1.37
$2.05
($0.59)
$1.48
$11.52
$3.68
$5.02
Member NYSE, SPIC
$1.80
$2.98
$3.95
$0.31
$2.28
$1.48
$0.76
$1.73
$4.02
$1.24
$2.40
$1.62
$2.00
$12.25
$4.26
$5.25
$2.14
$3.42
$4.64
$0.42
$2.68
$1.94
$1.14
$1.85
$4.62
$1.40
$2.82
$2.12
$2.40
$13.40
$5.00
$5.80
P/E
Ratio
FY1E
16.7
16.1
16.0
20.3
17.5
15.0
22.1
12.4
19.6
22.2
24.4
6.2
20.7
19.9
23.5
16.2
P/E
Ratio
FY2E
14.1
14.1
13.6
15.0
14.9
11.5
14.7
11.6
17.0
19.7
20.8
4.7
17.2
18.2
20.0
14.6
Market
Cap
($ Mil)
$801.7
$1,986.0
$915.1
$237.0
$1,080.0
$590.1
$480.5
$2,183.2
$3,805.4
$2,947.6
$2,541.2
$320.1
$849.7
$16,659.8
$3,016.7
$3,772.9
BVPS
FY1E
% Sls
Grth
$10.04
$19.06
$22.23
$3.75
$19.96
$10.61
$8.51
$13.88
$22.41
$18.29
$5.73
($5.30)
$15.21
$50.99
$25.21
$42.92
14.3
15.0
21.0
25.3
8.3
15.1
16.7
13.7
8.2
(3.3)
7.7
4.9
12.2
5.2
5.3
5.2
TRANSPORTATION/AIRFREIGHT AND LOGISTICS/MARITIME
JACK ATKINS, 501-377-2298
Jack is a research analyst covering the airfreight and logistics/maritime sectors. He joined Stephens in August 2007 as a research associate in the Industrials
group, with a primary focus on industrial distribution and service companies. He was promoted to analyst on the transportation research team in August
2011. Jack holds a B.A. in history from Auburn University and an M.A. with a concentration in history from Virginia Tech.
Sector Overview: Logistics is the function by which the owner of goods outsources various elements of the supply chain to a third party. The global supply
chain services and solutions industry consists of air and ocean freight forwarding, contract logistics, domestic ground transportation, customs clearances,
distribution, inbound logistics, warehousing and supply chain management. Among the factors impacting the industry are the outsourcing of supply chain
activities, increased global trade and sourcing, increased demand for time-definite delivery of goods, and the need for advanced information technology
systems.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
INDUSTRIALS
Transportation/Airfreight and Logistics/Maritime, Jack Atkins, 501-377-2298, [email protected]
ATSG
Dec
E
$7.88 $10.00
64.9
$0.51
Atlas Air Worldwide Holdings
AAWW op
Dec
E/V
$42.15 $44.00
24.8
$3.78
C.H. Robinson Worldwide, Inc.
CHRW
op
Dec
E
$71.48 $74.00
147.2
$2.66
Echo Global Logistics
ECHO
op
Dec
O
$26.47 $31.00
23.8
$0.61
EXPD
Dec
O
$43.73 $52.00
195.1
$1.68
FedEx Corp.
FDX
adj
May
O
$171.68 $200.00
283.2
$6.75
Forward Air
FWRD
Dec
O
$47.70 $55.00
30.5
$1.77
Kirby Corp.
KEX
op
Dec
O
$101.95 $130.00
57.1
$4.25
Landstar System, Inc.
LSTR
Dec
E
$75.28 $78.00
44.7
$2.48
Matson Inc.
MATX
op
Dec
O
$33.27 $43.00
43.0
$1.52
QLTY
op
Dec
O
$11.84 $16.00
28.1
$0.67
UPS
adj
Dec
E
$105.64 $110.00
702.3
$4.57
UTi Worldwide
UTIW
op
Jan
O/V
$10.88 $15.00
105.4 ($0.02)
XPO Logistics Inc.
XPO
op
Dec
E/V
$37.17 $40.00
64.5 ($2.75)
World Fuel Services
INT
op
Dec
E
$44.36 $48.00
72.1
$2.83
Member NYSE, SPIC
$0.54
$0.60
$3.52
$3.45
$2.99
$3.20
$0.70
$1.00
$1.88
$2.07
$8.90 $10.10
$2.04
$2.50
$5.09
$5.80
$3.03
$3.35
$1.42
$1.75
$0.77
$0.90
$4.95
$5.60
($0.09) $0.30
($0.86) ($0.44)
$2.97
$3.30
P/E
Ratio
FY1E
14.6
12.0
23.9
37.8
23.3
19.3
23.4
20.0
24.8
23.4
15.4
21.3
NM
NM
14.9
P/E
Ratio
FY2E
13.1
12.2
22.3
26.5
21.1
17.0
19.1
17.6
22.5
19.0
13.2
18.9
36.3
NM
13.4
Market
Cap
($ Mil)
$511.7
$1,045.5
$10,456.5
$628.6
$8,441.2
$48,627.7
$1,452.5
$5,817.2
$3,367.8
$1,432.0
$332.2
$74,195.6
$1,147.3
$2,395.6
$3,196.8
BVPS
FY1E
% Sls
Grth
$6.08
$55.32
$6.92
$7.57
$9.72
$53.39
$14.71
$39.32
$11.08
$8.52
($1.27)
$6.20
$6.54
$19.33
$25.09
2.0
8.4
5.4
32.3
7.2
5.1
20.4
13.8
17.5
6.1
6.8
4.6
0.2
NM
9.3
TRANSPORTATION/RAILROAD AND TRANSPORTATION SUPPLIERS
JUSTIN LONG, 501-377-2036
Justin currently serves as a research analyst covering the railroads & transportation suppliers and has been with Stephens since 2008. Previously, he spent two
and a half years as a research associate in the transportation industry focused on the railroad, transportation supplier and trucking verticals. Prior to that time, he
was a participant in Stephens’ Corporate Finance Analyst Program from 2008 – 2010. Justin graduated Phi Beta Kappa from Rhodes College with a B.A. in
economics and business administration.
Sector Overview: Railroads are an important part of the U.S. economy. Since 1980, railroads have captured an increasing share of U.S. freight shipments.
Railroads accounted for approximately 27% of the ton-miles of U.S. freight moved in 1980, and 38% by 2005. Rail growth has average 2.5%/year vs. total
freight growth of 1.2%/year. In terms of tons, coal represents the largest proportion of railroad shipments. In 2007, coal represented approximately 44% of
total tons. Other large commodity groups include chemicals, farm products, non-metallic minerals and miscellaneous mixed shipments. In terms of revenue,
coal is still the largest, but the miscellaneous mixed shipments category, which consists primarily of intermodal, is becoming an increasingly large part of total
railroad revenue. Other significant revenue drivers are chemicals, farm products, food, and automotive equipment. Some commodities are particularly
dependent on rail transportation. According to the Association of American Railroads (AAR), 70% of domestically produced automobiles, 70% of coal and 35%
U.S. grain move by rail. Currently there are 7 Class I railroads and over 550 short-line and intermediate railroads.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
INDUSTRIALS
Transportation/Railroad and Transportation Suppliers, Justin Long, 501-377-2036, [email protected]
ARII
op
Dec
E
$66.69 $66.00
21.4
$4.20
CSX Corp.
CSX
op
Dec
O
$36.87 $38.00
999.6
$1.81
Dana Holding Corp.
DAN
adj
Dec
E
$21.09 $24.00
169.4
$1.78
FreightCar America
RAIL
op
Dec
E
$31.39 $32.00
12.1 ($0.98)
GATX Corp.
GMT
op
Dec
E
$63.97 $70.00
44.8
$3.51
Genesee & Wyoming Inc.
GWR
op
Dec
O
$98.00 $113.00
52.7
$4.27
GBX
Aug
O
$63.49 $84.00
27.4
$3.07
Hub Group
HUBG
Dec
O
$36.72 $42.00
36.8
$1.92
KSU
op
Dec
E
$122.92 $120.00
110.3
$3.98
NSC
Dec
O
$115.17 $125.00
309.4
$5.86
Ryder System
R
op
Dec
O
$90.55 $105.00
53.0
$4.88
Stoneridge Inc.
SRI
op
Dec
O
$11.00 $14.00
28.2
$0.56
Trinity Industries
TRN
Dec
O
$34.75 $47.00
155.6
$2.33
Union Pacific Corp.
UNP
op
Dec
E
$120.50 $120.00
889.1
$4.70
Wabtec Corp.
WAB
op
Dec
O
$89.51 $95.00
96.3
$3.04
WABCO Holdings Inc.
WBC
op
Dec
O
$103.12 $120.00
58.9
$5.01
Member NYSE, SPIC
$4.75
$1.90
$1.96
$0.55
$4.45
$4.18
$4.40
$1.69
$4.77
$6.44
$5.58
$0.40
$4.12
$5.63
$3.60
$5.50
$5.70
$2.15
$2.25
$2.40
$5.10
$4.85
$5.40
$1.85
$5.55
$7.25
$6.40
$0.80
$4.15
$6.45
$4.10
$6.10
P/E
Ratio
FY1E
14.0
19.4
10.8
57.1
14.4
23.4
14.4
21.7
25.8
17.9
16.2
27.5
8.4
21.4
24.9
18.7
P/E
Ratio
FY2E
Market
Cap
($ Mil)
11.7
$1,424.0
17.1
$36,700.3
9.4
$3,572.7
13.1
$378.8
12.5
$2,827.5
20.2
$5,176.9
11.8
$1,738.1
19.8
$1,349.5
22.1
$13,565.5
15.9
$35,638.4
14.1
$4,802.8
13.8
$310.4
8.4
$5,408.4
18.7 $107,136.4
21.8
$8,615.8
16.9
$6,072.0
BVPS
FY1E
% Sls
Grth
$22.69
$11.15
$7.23
$16.33
$29.71
$43.71
$18.61
$16.04
$31.99
$40.20
$37.38
$4.48
$21.16
$24.19
$18.32
$18.56
(1.4)
5.2
(1.6)
101.5
9.8
4.5
15.9
5.0
9.7
1.4
3.7
(22.8)
39.4
9.1
14.4
5.1
TRANSPORTATION/TRUCKLOAD AND LESS-THAN-TRUCKLOAD
BRAD DELCO, 501-377-8057
Brad is a research analyst covering the truckload and less-than-truckload sectors. Brad joined the transportation research team in August 2009 after serving
four years in the Corporate Finance department at Stephens. At that time he served as an associate covering the truckload and less-than-truckload sector
before being promoted to research analyst in November 2010 covering the rail and transport supplier universe. He transitioned back to covering the truckload
and less-than-truckload in January 2013. Brad holds a B.S. in business, magna cum laude, from Wake Forest University.
Sector Overview: Truckload industry (TL) by Department of Transportation (DOT) definition is characterized by shipments of 10,000 pounds or more and
is approximately $65 billion in size. Concentration within the industry is very fragmented with approximately 50,000 carriers, and labor tends to be
predominately non-union. TL carriers transport trailer-load shipments bound for a single destination, and routes tend to be irregular with few terminals (used
mainly for maintenance). There are several sub-categories including dry-van, flatbed, temperature-controlled, tanker, regional and expedited. Operations
vary depending on length of haul, which falls into three service categories: long-haul (over 1,000 miles), medium-haul (600-1,000 miles) and short-haul (less
than 600 miles). Rates (a proxy for pricing) have not kept pace with inflation (CPI) over the last 15 years. Profitability is defined in terms of operating ratios
(one minus operating margin) and tends to vary from 82% to 99%. Growth is usually a function of shipper-driven consolidation and conversion of private
fleets.
Sector Overview: Less-Than-Truckload (LTL) industry provides transportation of partial-load shipments that go to one or more destinations or full
trailer-load shipments going to multiple destinations. The LTL is a $39 billion industry and is comprised of two distinct segments, national LTL and regional
LTL. The national LTL participants operate a "hub-and-spoke" network with an average length of haul of 1,200 to 1,400 miles. Growth is dependent on
accelerated economic activity and competitor failures. The estimated size of the national LTL segment is $12 billion. The regional LTL segment is
characterized by numerous carriers, typically non-union, that operate a modified hub-and-spoke network, with an average length of haul of 200 to 600 miles
for most freight. Growth in this segment is dependent on consolidation within the marketplace, the shift toward more regionalized freight patterns by
shippers, and general economic growth. The regional LTL segment is highly fragmented, with the top 20 participants accounting for roughly 50% of the
estimated $27 billion market.
Member NYSE, SPIC
TRANSPORTATION/TRUCKLOAD AND LESS-THAN-TRUCKLOAD
BRAD DELCO, 501-377-8057
Shares
Price
Out.
Target
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
INDUSTRIALS
Transportation/Truckload and Less-Than-Truckload, Brad Delco, 501-377-8057, [email protected]
ArcBest Corp.
ARCB
op
Dec
O
$41.68 $50.00
26.0
$0.51
Celadon Group, Inc.
CGI
op
Jun
E
$21.77 $23.00
23.7
$0.91
Con-way Inc.
CNW
op
Dec
E
$46.76 $50.00
57.9
$1.66
Covenant Transportation Group
CVTI
op
Dec
O
$23.42 $24.00
12.6
$0.35
Heartland Express, Inc.
HTLD
Dec
O
$25.60 $28.00
87.8
$0.85
J.B. Hunt Transport Services, Inc. JBHT
op
Dec
O
$80.12 $87.00
117.2
$2.89
KNX
op
Dec
O
$30.95 $35.00
81.0
$0.86
Marten Transport, Ltd.
MRTN
Dec
O
$21.67 $25.00
33.4
$0.90
ODFL
op
Dec
O
$76.59 $86.00
86.2
$2.37
Rush Enterprises, Inc.
RUSHA
Dec
E
$35.07 $36.00
29.8
$1.38
Saia, Inc.
SAIA
op
Dec
O
$53.07 $58.00
24.7
$1.69
Swift Transportation Co.
SWFT
op
Dec
O
$26.13 $27.00
90.5
$1.25
USA Truck, Inc.
USAK
Dec
E
$18.29 $17.00
10.5 ($0.44)
Wabash National Corp.
WNC
op
Dec
E
$11.04 $12.00
69.0
$0.69
Werner Enterprises, Inc.
WERN
Dec
E
$28.45 $29.00
72.0
$1.15
YRC Worldwide Inc.
YRCW
op
Dec
U/V
$22.09
NE
47.8 ($7.38)
Member NYSE, SPIC
$1.62
$1.25
$2.33
$0.95
$0.97
$3.11
$1.18
$0.86
$3.00
$1.91
$1.95
$1.27
$0.43
$0.78
$1.25
($3.25)
$2.55
$1.50
$2.80
$1.15
$1.20
$3.65
$1.37
$1.05
$3.50
$2.20
$2.75
$1.65
$0.65
$0.90
$1.50
($2.64)
P/E
Ratio
FY1E
25.7
17.4
20.1
24.7
26.4
25.8
26.2
25.2
25.5
18.4
27.2
20.6
42.5
14.2
22.8
NM
P/E
Ratio
FY2E
16.3
14.5
16.7
20.4
21.3
22.0
22.6
20.6
21.9
15.9
19.3
15.8
28.1
12.3
19.0
NM
Market
Cap
($ Mil)
$1,085.1
$514.8
$2,708.3
$295.9
$2,247.1
$9,386.4
$2,511.5
$723.9
$6,599.4
$1,046.9
$1,313.9
$2,370.6
$192.6
$761.6
$2,044.5
$690.5
BVPS
$21.18
$10.99
$21.82
$6.89
$5.20
$9.90
$7.74
$11.36
$16.59
$17.87
$14.14
$2.84
$9.59
$5.07
$11.21
($3.96)
FY1E
% Sls
Grth
13.0
10.9
6.6
1.7
51.5
10.9
12.5
2.3
18.5
36.7
11.4
3.7
9.8
11.0
4.9
6.6
BUSINESS SERVICES
BRETT HUFF, CFA, 501-377-8068
Brett is a managing director leading the business services team. He joined Stephens Inc. in April 2005 as research associate covering title, insurance broker
and financial services technology companies. Prior to joining Stephens, he was an associate analyst at Southwest Securities focused on the specialty retail
industry. He also previously worked at OpenAir, Inc., a private software company in Boston which was subsequently purchased by NetSuite, Inc., where he
held Director of Product Management and Director of Marketing positions. Prior to that, he worked at Deloitte Consulting as a management consultant. Brett
obtained his A.B. in social studies from Harvard University and received an M.B.A., focusing on finance and strategy, from the Kellogg School of Management
at Northwestern University.
Sector Overview: Our business services practice has two parts: data/IT companies and payment processing/bank technology. For the data/IT market, the
first major use case is helping marketers target advertising more effectively. We think the companies that will win in this market are those that have superior
data assets (given we think channel expertise over time is less of a competitive advantage) and strong advertiser relationships/customers (as advertisers are
ultimately the funders of the entire ad ecosystem). The second major use case is helping banks and corporates make better underwriting decisions. We think
the winning companies here will be those with superior data assets, with an international opportunity, and with the proven ability to innovate and cross sell.
For payment processing/bank technology, we see two primary markets: selling services to banks and selling services to merchants. For the bank focused
companies, we think the winning companies will have established the role of trusted IT advisor to the bank, will leverage that status to cross sell additional
products/take share of wallet from point solutions to help offset price compression, and will have developed or bought higher-growth/higher-margin payment
assets to drive incremental margin. For the merchant focused market, we think the winning companies will have a method to differentiate their services from
standard merchant acquiring offerings. In some cases it could be achieving a trusted advisor status with the merchant and in others it could be offering a
acquiring integrated into a value added software/services bundle.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Company
Tkr
TECHNOLOGY
Business Services, Brett Huff, CFA, 501-377-8068, [email protected]
ACI Worldwide, Inc.
ACIW
pf/cs Dec
O
$19.49 $23.00
Acxiom Corp.
ACXM
cs
Mar
O/V
$18.44 $31.00
ADS
adj/cs Dec
O/V
$280.62 $310.00
EPAY
pf/cs Jun
E/V
$25.02 $28.00
CoStar Group, Inc.
CSGP
pf
Dec
O
$163.38 $210.00
D&B
DNB
adj
Dec
E
$125.43 $95.00
Equifax Inc.
EFX
cs
Dec
O
$78.30 $80.00
Experian plc
EXPGY adj
Mar
O/V
$15.63 $20.00
FICO
FICO
cs
Sep
E
$71.68 $60.00
Fidelity National Information Svcs. FIS
op/cs Dec
O
$59.78 $65.00
Fiserv, Inc.
FISV
adj
Dec
E
$70.41 $65.00
GPN
op/cs May
E
$83.12 $79.00
HPY
pf
Dec
E
$53.13 $53.00
Jack Henry & Associates, Inc.
JKHY
Jun
E
$60.63 $64.00
Total System Services
TSS
op
Dec
O
$32.35 $37.00
Shares
Out.
Mil.
114.9
77.0
55.5
39.8
32.4
36.4
121.8
990.1
32.2
285.4
249.2
67.6
36.0
81.8
185.9
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.96
$0.97
$10.01
$1.29
$2.57
$7.65
$3.54
$0.92
$3.71
$2.84
$2.98
$4.12
$2.33
$2.36
$1.74
Member NYSE, SPIC
$1.07
$0.73
$12.42
$1.43
$3.22
$7.28
$3.87
$0.98
$4.17
$3.10
$3.35
$4.74
$2.33
$2.61
$1.90
$1.38
$1.01
$15.03
$1.52
$3.67
$7.86
$4.35
$1.09
$4.70
$3.54
$3.73
$5.28
$2.94
$2.92
$2.28
P/E
Ratio
FY1E
18.2
25.3
22.6
17.5
50.7
17.2
20.2
16.0
17.2
19.3
21.0
17.5
22.8
23.2
17.0
P/E
Ratio
FY2E
14.1
18.3
18.7
16.5
44.5
16.0
18.0
14.3
15.3
16.9
18.9
15.7
18.1
20.8
14.2
Market
Cap
($ Mil)
$2,240.1
$1,419.7
$16,672.2
$998.5
$5,285.2
$4,504.2
$9,442.0
$15,478.8
$2,301.4
$16,962.6
$17,177.7
$5,622.0
$1,924.4
$4,957.7
$6,013.8
BVPS
FY1E
% Sls
Grth
$4.53
$5.34
$19.47
$9.50
$46.20
($29.89)
$19.73
NA
$14.59
$22.61
$13.95
$13.92
$6.69
$12.56
$9.04
18.3
(6.0)
22.7
10.1
30.0
1.8
6.1
2.5
4.4
6.4
5.2
8.6
11.3
8.3
19.2
COMMUNICATIONS TECHNOLOGY AND INTELLECTUAL PROPERTY
TIM QUILLIN, CFA, 501-377-8078
Tim is a managing director leading the communications technology and intellectual property sector. Previous research has included cyber security, defense
technology, communications software, e-commerce fulfillment and transportation. Tim came to Stephens in 1997 from Salomon Brothers in New York. He
also served four years as a Commissioned Officer/Explosive Ordnance Disposal Technician in the U.S. Army. He holds a B.S.B.A. from the University of
Arizona and an M.B.A. from the University of Iowa.
Sector Overview: Our Communications Technology research focuses primarily on providers of hardware, software and services that support mobility
ecosystems, network infrastructure and optimization, media distribution, machine-to-machine (M2M) solutions and sensing applications. Our Intellectual
Property coverage focuses on developers, aggregators and licensors of patented technologies.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
TECHNOLOGY
Communications Technology and Intellectual Property, Tim Quillin, CFA, 501-377-8078, [email protected]
Acacia Research Corp.
ACTG
pf
Dec
U/V
$18.05 $12.00
49.8
$0.48
ARRIS Group, Inc.
ARRS
pf
Dec
O/V
$28.71 $40.00
148.8
$1.66
ADTRAN, Inc.
ADTN
pf
Dec
E/V
$18.89 $22.00
54.7
$0.95
CalAmp Corp.
CAMP
pf
Feb
O/V
$17.75 $25.00
36.2
$0.77
Calix Inc.
CALX
pf
Dec
O/V
$10.71 $15.00
51.6
$0.39
EchoStar Corp.
SATS
Dec
O
$50.23 $60.00
43.8
$0.03
FLIR Systems, Inc.
FLIR
pf
Dec
O
$31.82 $41.00
143.7
$1.39
Harmonic Inc.
HLIT
pf
Dec
E/V
$6.64
$7.00
89.7
$0.17
InterDigital, Inc.
IDCC
pf
Dec
E/V
$49.16 $45.00
37.9
$0.92
OSI Systems, Inc.
OSIS
pf
Jun
O
$67.95 $78.00
19.8
$3.13
Rovi Corp.
ROVI
pf
Dec
E/V
$21.91 $25.00
92.1
$1.68
RPX Corp.
RPXC
pf
Dec
O/V
$13.14 $18.00
55.0
$0.98
Ruckus Wireless, Inc.
RKUS
pf
Dec
O/V
$12.44 $18.00
96.3
$0.22
Sierra Wireless, Inc.
SWIR
pf
Dec
E/V
$37.29 $39.00
32.0
$0.22
TiVo Inc.
TIVO
Jan
E/V
$12.87 $14.00
114.9
$1.99
Ubiquiti Networks, Inc.
UBNT
pf
Jun
E/V
$29.56 $35.00
88.4
$2.00
ViaSat, Inc.
VSAT
pf
Mar
E/V
$65.49 $75.00
46.7
$0.44
Member NYSE, SPIC
$0.34
$2.58
$0.87
$0.92
$0.28
$1.65
$1.43
$0.13
$2.47
$3.53
$1.69
$0.96
$0.44
$0.60
$0.27
$1.99
$1.45
$0.81
$2.70
$1.08
$1.28
$0.45
$1.90
$1.61
$0.29
$2.50
$3.70
$1.80
$0.92
$0.56
$1.08
$0.34
$2.22
$2.10
P/E
Ratio
FY1E
53.1
11.1
21.7
19.3
38.3
30.4
22.3
51.1
19.9
19.2
13.0
13.7
28.3
62.2
47.7
14.9
45.2
P/E
Ratio
FY2E
22.3
10.6
17.5
13.9
23.8
26.4
19.8
22.9
19.7
18.4
12.2
14.3
22.2
34.5
37.9
13.3
31.2
Market
Cap
($ Mil)
$904.7
$4,155.8
$1,026.1
$642.1
$547.5
$2,198.1
$4,483.2
$584.7
$1,827.0
$1,347.4
$2,082.2
$708.8
$1,047.2
$1,181.4
$1,487.4
$2,612.0
$3,072.9
BVPS
$10.12
$10.29
$10.35
$3.83
$5.29
$38.33
$11.67
$4.38
$14.75
$26.69
$12.31
$8.46
$2.87
$11.15
$4.24
$4.08
$21.33
FY1E
% Sls
Grth
7.0
45.9
(2.3)
6.8
4.2
6.1
0.7
(7.7)
25.2
7.0
(0.3)
9.0
25.3
23.6
7.9
6.6
5.2
INFRASTRUCTURE SOFTWARE AND SECURITY
JONATHAN RUYKHAVER, CFA, 615-279-4331
Jonathan B. Ruykhaver, CFA, is a managing director covering infrastructure software and security. Prior to joining Stephens in March 2012, Jonathan covered
the infrastructure software sector at Morgan Keegan, ThinkEquity LLC and Raymond James. He holds the Chartered Financial Analyst designation and has
over 12 years of experience as a sell-side analyst in the technology sector. Jonathan is a graduate of Tufts University and he participated in a masters of
applied economics program at the University of Michigan
Sector Overview: Infrastructure Software and Security represents technologies which secure, connect and optimize the performance of core IT systems,
applications and business processes.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
TECHNOLOGY
Infrastructure Software and Security, Jonathan Ruykhaver, CFA, 615-279-4331, [email protected]
Aerohive Networks, Inc.
HIVE
pf
Dec
O/V
$5.04
$8.00
45.7 ($3.87) ($0.46)
Aruba Networks
ARUN
pf
Jul
O/V
$21.53 $25.00
109.4
$0.77
$1.11
Check Point Software Tech.
CHKP
pf
Dec
O
$76.21 $78.00
191.0
$3.44
$3.69
Citrix Systems
CTXS
pf
Dec
E/V
$64.62 $68.00
164.5
$3.02
$3.23
FireEye, Inc.
FEYE
pf
Dec
E/V
$30.55 $31.00
144.9 ($3.06) ($2.08)
Fortinet, Inc.
FTNT
pf
Dec
O/V
$26.77 $30.00
163.8
$0.48
$0.47
Imperva, Inc.
IMPV
pf
Dec
O/V
$40.91 $42.00
26.5 ($0.12) ($0.75)
Infoblox Inc.
BLOX
pf
Jul
E/V
$15.86 $18.00
55.7
$0.34
$0.26
LogMeIn, Inc.
LOGM
pf
Dec
O/V
$50.14 $55.00
24.6
$0.55
$1.16
NetScout Systems, Inc.
NTCT
pf
Mar
E/V
$37.36 $32.00
41.1
$1.53
$1.77
Palo Alto Networks, Inc.
PANW
pf
Jul
O/V
$107.33 $125.00
80.4
$0.40
$0.65
Proofpoint, Inc.
PFPT
pf
Dec
O/V
$41.46 $45.00
37.4 ($0.33) ($0.43)
Qualys, Inc.
QLYS
pf
Dec
E/V
$33.30 $31.00
33.0
$0.20
$0.40
Red Hat, Inc.
RHT
pf
Feb
O/V
$62.94 $70.00
189.1
$1.49
$1.54
Riverbed Technology, Inc.
RVBD
pf
Dec
E/V
$20.13 $20.00
162.3
$1.01
$1.13
SolarWinds, Inc.
SWI
pf
Dec
E/V
$50.25 $46.00
75.4
$1.63
$1.79
Splunk, Inc.
SPLK
pf
Jan
E/V
$63.90 $56.00
118.6 ($0.03)
$0.02
Symantec Corp.
SYMC
pf
Mar
E
$25.31 $24.00
696.0
$1.95
$1.90
Member NYSE, SPIC
($0.28)
$1.31
$4.00
$3.61
($1.72)
$0.61
($0.65)
$0.36
$1.32
$2.04
$1.37
($0.30)
$0.50
$1.80
$1.20
$1.96
$0.07
$2.00
P/E
Ratio
FY1E
NM
19.4
20.7
20.0
NM
57.0
NM
61.0
43.2
21.1
NM
NM
83.3
40.9
17.8
28.1
NM
13.3
P/E
Ratio
FY2E
NM
16.4
19.1
17.9
NM
43.9
NM
44.1
38.0
18.3
78.3
NM
66.6
35.0
16.8
25.6
NM
12.7
Market
Cap
($ Mil)
$231.4
$2,355.1
$14,540.1
$10,401.9
$4,595.3
$4,413.2
$1,087.6
$883.7
$1,222.6
$1,538.9
$8,625.9
$1,581.0
$1,109.6
$11,821.5
$3,122.4
$3,800.8
$7,662.7
$17,467.6
BVPS
$1.45
$3.09
$18.92
$12.75
$8.92
$3.82
$3.65
$4.16
$7.37
$10.05
$6.08
$1.84
$3.40
$8.09
$4.72
$7.03
$6.70
$8.47
FY1E
% Sls
Grth
28.0
17.3
7.2
7.5
162.2
22.7
17.7
8.4
32.7
15.2
34.2
39.2
23.0
15.8
2.8
27.5
34.5
(0.9)
POWER & INDUSTRIAL TECHNOLOGY
BEN HEARNSBERGER, 512-542-3272
Ben is a research analyst leading the power & industrial technology practice. Ben joined the IT services and Internet research practice at Stephens as an
associate in March 2011 and moved to the trucking Rrsearch practice as an associate in January 2013. He holds a degree in finance from Wake Forest
University and a Juris Doctor from the University of Arkansas School of Law.
Sector Overview: Our power & industrial technology group is focused on companies with enabling technologies that improve and enhance manufacturing
across industry verticals or companies with technology products and services that are critical in the development and testing of next generation devices.
These companies tend to be leaders in their respective fields and play into global themes such as nanoscale products, next generation manufacturing, 3D
CAD, shrinking device architectures, remote sensors and resource optimization.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
Company
Tkr
TECHNOLOGY
Power & Industrial Technology, Ben Hearnsberger, 512-542-3272, [email protected]
3D Systems Corp.
DDD
pf
Dec
E/V
$36.04 $45.00
111.2
$0.85
FARO Technologies, Inc.
FARO
Dec
O/V
$53.07 $65.00
17.3
$1.25
Itron, Inc.
ITRI
pf
Dec
Susp
$39.97
NE
39.3
$1.90
Materialise NV
MTLS
€
Dec
E/V
$10.41 $12.00
47.1
$0.37
Proto Labs, Inc.
PRLB
pf
Dec
O/V
$63.39 $76.00
25.7
$1.46
Stratasys Ltd.
SSYS
pf
Dec
O/V
$103.21 $135.00
50.6
$1.84
The ExOne Company
XONE
Dec
E/V
$21.47 $22.00
14.4 ($0.45)
Voxeljet AG
VJET
€/adj Dec
E/V
$12.03 $13.00
18.6 ($0.17)
Member NYSE, SPIC
$0.71
$1.66
NE
$0.05
$1.72
$2.25
($1.04)
($0.24)
$1.08
$2.04
NE
$0.05
$2.13
$2.75
($0.35)
($0.08)
P/E
Ratio
FY1E
50.8
32.0
NM
NM
36.9
45.9
NM
NM
P/E
Ratio
FY2E
33.4
26.0
NM
NM
29.8
37.5
NM
NM
Market
Cap
($ Mil)
$4,008.3
$916.8
$1,561.2
$490.0
$1,636.8
$5,253.2
$310.1
$223.8
BVPS
FY1E
% Sls
Grth
$11.71
$19.22
$22.07
NA
$9.89
$51.42
$8.91
$23.59
30.4
14.5
NE
15.1
27.1
58.1
21.3
35.0
SEMICONDUCTORS
HARSH KUMAR, 901-821-7434
Harsh is a managing director and leads the firm’s research efforts in the semiconductor sector. Prior to joining Stephens in April 2012, Harsh covered the
semiconductor sector at Morgan Keegan for 12 years with a focus on small and mid-cap companies. Prior to Morgan Keegan, Harsh worked at Roth Capital
Partners for 2 years concentrating on semiconductor and technology research. Harsh has been ranked Best on the Street by the Wall Street Journal. Harsh
received a BS in engineering (production engineering) from University of Poona, India and an MBA in finance from University of Texas at Arlington.
Sector Overview: Stephens. Inc. Semiconductor group is focused on researching companies in the semiconductor sector. These companies produce
semiconductors, or “chips,” that enable all of the hardware functionality in technology which forms the basis of all key modern technological concepts such as
computing, connectivity, storage, the cloud and others. Our expertise and coverage is focused on small and mid-capitalized companies with an emphasis on
analog semiconductors and communications chips.
Ftnt.
Code
Rating/
FYE Volatility
19-Nov
Price
Company
Tkr
TECHNOLOGY
Semiconductors, Harsh Kumar, 901-821-7434, [email protected]
ANADIGICS, Inc.
ANAD
pf
Dec
E/V
$0.77
Analog Devices
ADI
Oct
E/V
$50.75
Bel Fuse
BELFB
pf
Dec
O/V
$26.43
Cree, Inc.
CREE
pf
Jun
E/V
$35.14
Diodes Inc.
DIOD
pf
Dec
O/V
$25.69
IDTI
pf
Mar
O/V
$17.96
Intersil Corp.
ISIL
Dec
E/V
$12.73
Knowles Corp.
KN
pf
Dec
E/V
$20.17
M/A-COM Technology Solutions
MTSI
adj
Sep
O/V
$23.99
MCHP
pf
Mar
E/V
$43.15
Microsemi Corp.
MSCC
pf
Sep
O/V
$26.48
OmniVision Technologies
OVTI
pf
Apr
E/V
$27.21
RF Micro Devices, Inc.
RFMD
pf
Mar
O/V
$13.89
Semtech Corp.
SMTC
pf
Jan
O/V
$24.28
Silicon Laboratories Inc.
SLAB
pf
Dec
E/V
$44.66
Skyworks Solutions
SWKS
pf
Sep
O/V
$63.81
Price
Target
$2.00
$55.00
$30.00
$31.00
$34.00
$19.00
$14.00
$21.00
$27.00
$45.00
$32.00
$29.00
$17.00
$30.00
$51.00
$70.00
Shares
Out.
Mil.
85.8
314.2
9.7
119.5
47.6
148.8
129.5
85.0
47.5
200.4
95.4
57.6
290.7
67.4
42.4
189.5
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
($0.56)
$2.14
$1.56
$1.65
$1.05
$0.46
$0.65
$2.12
$1.24
$2.45
$2.19
$2.24
$0.45
$1.56
$2.02
$3.24
Member NYSE, SPIC
($0.33)
$2.32
$2.00
$0.93
$1.40
$0.79
$0.69
$1.31
$1.55
$2.56
$2.78
$2.05
$1.09
$1.52
$1.99
$4.37
($0.12)
$2.87
$3.00
$1.27
$1.60
$0.88
$0.72
$1.61
NE
$2.82
NE
NE
$1.20
$1.70
$2.07
NE
P/E
Ratio
FY1E
NM
21.9
13.2
37.8
18.4
22.7
18.4
15.4
15.5
16.9
9.5
13.3
12.7
16.0
22.4
14.6
P/E
Ratio
FY2E
NM
17.7
8.8
27.7
16.1
20.4
17.7
12.5
NM
15.3
NM
NM
11.6
14.3
21.6
NM
Market
Cap
($ Mil)
$67.0
$15,946.3
$256.5
$4,197.3
$1,222.4
$2,669.8
$1,655.3
$1,715.3
$1,140.2
$8,671.7
$2,516.7
$1,567.8
$4,038.2
$1,635.4
$1,892.7
$12,093.7
BVPS
$0.55
$15.94
$19.94
$24.86
$15.70
$4.94
$7.48
$15.51
$4.51
$10.83
$11.20
$18.13
$2.76
$8.31
$17.65
$12.63
FY1E
% Sls
Grth
(35.8)
8.7
40.5
2.4
8.0
12.2
(2.6)
(5.0)
31.0
10.4
9.6
(3.4)
20.9
(6.3)
6.3
29.3
SOFTWARE AS A SERVICE
ALEX ZUKIN, 415-548-6907
Alex is a research analyst covering the enterprise software as a service segment in the San Francisco office. He previously was a research associate covering
infrastructure software. Prior to joining Stephens in 2012, Alex was a Vice President and research associate covering the infrastructure software sector for
Morgan Keegan and ThinkEquity. Alex holds both a B.S. in business administration and a B.A in economics from the University of California, Berkeley.
Sector Overview: Enterprise Software as a Service represents companies that deliver enterprise applications that have greater agility, flexibility and lower
total cost of ownership while delivering greater organizational value than legacy premise based systems.
Ftnt.
Code
Rating/ 19-Nov
FYE Volatility
Price
Company
Tkr
TECHNOLOGY
Software as a Service, Alex Zukin, 415-548-6907, [email protected]
CallidusCloud
CALD
pf
Dec
O/V
$15.93
Cornerstone OnDemand, Inc.
CSOD
pf
Dec
E/V
$29.84
Demandware, Inc.
DWRE
pf
Dec
O/V
$54.50
E2open, Inc.
EOPN
pf
Feb
E/V
$6.31
Guidewire Software, Inc.
GWRE
pf
Jul
O/V
$49.30
NetSuite Inc.
N
pf
Dec
O/V
$105.18
Rally Software Development
RALY
pf
Jan
O/V
$9.75
Salesforce.com
CRM
pf
Jan
O/V
$61.02
ServiceNow, Inc.
NOW
pf
Dec
O/V
$63.72
SciQuest, Inc.
SQI
pf
Dec
E/V
$14.81
Tyler Technologies
TYL
pf
Dec
O
$106.99
Ultimate Software
ULTI
pf
Dec
O/V
$149.18
Workday, Inc.
WDAY
pf
Jan
E/V
$90.90
Price
Target
$20.00
$30.00
$70.00
$11.00
$55.00
$100.00
$15.00
$70.00
$80.00
$13.00
$130.00
$180.00
$100.00
Shares
Out.
Mil.
48.1
53.4
36.3
29.2
69.1
76.4
24.9
619.0
145.7
27.5
33.0
28.3
28.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.08
($0.24)
($0.20)
($0.53)
$0.63
$0.26
($0.62)
$0.35
($0.08)
$0.38
$1.51
$1.60
($0.54)
Member NYSE, SPIC
$0.15
($0.32)
$0.04
($0.61)
$0.41
$0.32
($1.25)
$0.52
($0.12)
$0.30
$2.09
$1.99
($0.42)
$0.18
($0.17)
$0.08
($0.34)
$0.50
$0.53
($0.99)
$0.72
$0.03
$0.30
$2.38
$2.47
($0.25)
P/E
Ratio
FY1E
NM
NM
NM
NM
NM
NM
NM
NM
NM
49.4
51.2
75.0
NM
P/E
Ratio
FY2E
88.5
NM
NM
NM
98.6
NM
NM
84.8
NM
49.4
45.0
60.4
NM
Market
Cap
($ Mil)
BVPS
FY1E
% Sls
Grth
$774.7
$1,598.1
$1,978.9
$184.3
$3,427.4
$8,071.4
$245.7
$37,771.4
$9,449.7
$407.6
$3,534.3
$4,232.4
$8,990.0
$1.23
$0.83
$7.21
$1.88
$9.42
$2.81
$2.89
$5.34
$2.74
$6.53
$8.96
$8.74
$6.13
19.8
40.0
49.6
14.6
6.3
33.6
18.7
31.9
59.5
10.4
18.7
23.0
64.7
TELECOMMUNICATIONS SERVICES
BARRY MCCARVER, 501-377-8131
Barry is a managing director leading the telecommunications services sector. Barry joined Stephens in June 1998 as an associate analyst covering specialty
manufacturing, moving in September 1999 to financial services technology and insurance brokerage. He was promoted to research analyst in January 2003,
and in August he took over the firm's bank and thrifts practice. In July of 2008 Barry was tapped to establish the firm’s telecomm services practice.
Previously, Barry worked as a buy-side analyst for Longer Investments Inc. of Fayetteville, Arkansas. He graduated with a B.S.B.A. in finance from the
University of Arkansas in 1998.
Sector Overview: While the Telecommunications Services industry has historically consisted of companies providing residential and enterprise voice
solutions, the continued rollout of new broadband technologies has spurred significant convergence among service providers and now includes voice, video,
and data. Our focus is network operators that are increasingly building out their delivery systems with fiber-to-the-node, and in some cases, to the premise,
in order to keep in line with rising bandwidth demand and to power their bundled triple and quadruple-play product offerings (IPTV, wireless, wire line, and
high-speed data). Industry participants include large and small wire line networks (ILECs), competitive local exchange carriers (CLECs), regional wireless,
national wireless/RBOC, cable providers, broadband service providers, and mobile payment providers.
Shares
Price
Out.
Target
Mil.
Ftnt.
Rating/ 19-Nov
Company
Tkr
Code FYE Volatility
Price
TECHNOLOGY
Telecommunications Services, Barry McCarver, 501-377-8131, [email protected]
ATNI
pf
Dec
E
$69.50 $61.00
Cincinnati Bell
CBB
pf
Dec
E
$3.41
$3.75
Cogent Communications Group
CCOI
pf
Dec
O
$34.86 $40.00
COR
Dec
E
$37.36 $40.00
CyrusOne, Inc.
CONE
Dec
O
$26.80 $30.00
Equinix, Inc.
EQIX
pf
Dec
E
$225.68 $252.00
HCOM
pf
Dec
E
$26.08 $31.00
LVLT
pf
Dec
E
$49.09 $48.00
Premiere Global Services
PGI
pf
Dec
O
$10.58 $14.00
QTS Realty Trust
QTS
Dec
E
$32.47 $32.00
Rackspace Hosting
RAX
Dec
O/V
$43.05 $41.00
ShoreTel, Inc.
SHOR
pf
Jun
O
$7.62 $12.00
Windstream Corp.
WIN
pf
Dec
E
$9.83 $11.00
15.9
209.1
46.2
21.7
38.7
53.2
10.7
335.0
47.1
28.9
143.6
63.2
602.8
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.31
$0.03
$0.16
$0.49
($0.27)
$3.48
$1.08
($0.11)
$0.80
$0.10
$0.61
$0.24
$0.36
Member NYSE, SPIC
$2.88
($0.14)
($0.06)
$0.60
($0.08)
$3.32
$1.00
$1.46
$0.87
$0.47
$0.71
$0.17
$0.13
$3.13
$0.02
$0.34
$0.85
($0.22)
$5.67
$0.87
$0.88
$0.93
$0.27
$1.05
$0.26
$0.08
P/E
Ratio
FY1E
24.1
NM
NM
62.3
NM
68.0
26.1
33.6
12.2
69.1
60.6
44.8
75.6
P/E
Ratio
FY2E
22.2
NM
NM
44.0
NM
39.8
30.0
55.8
11.4
120.3
41.0
29.3
122.9
Market
Cap
($ Mil)
$1,106.4
$713.5
$1,612.0
$811.1
$1,035.9
$12,397.1
$278.4
$16,492.3
$498.1
$941.3
$6,180.0
$481.8
$5,925.2
BVPS
FY1E
% Sls
Grth
$41.18
($3.28)
$2.34
$9.85
$12.39
$50.44
$30.09
$6.91
$5.72
$10.59
$8.56
$2.85
$0.76
(34.0)
0.0
9.4
15.1
25.0
13.0
(0.7)
7.4
8.1
20.1
17.6
4.8
(2.6)
COVERAGE LIST
DDD
ABAX
ANF
ABMD
AXAS
ACTG
ACHC
ACIW
ACXM
ADUS
ADTN
AAP
ABCO
HIVE
ARO
AIRM
ATSG
ALGN
MDRX
ADS
AIMC
CRMT
AEO
ARII
ANAD
ADI
ANDE
AR
AIT
AREX
ARCB
ADM
ARRS
AJG
ARUN
ABG
ATHN
ATNI
AAWW
ATLS
APL
ARP
ATW
AN
AZO
BGS
BJRI
BXS
OZRK
RATE
BAS
BECN
BELFB
BIOS
NILE
BKEP
3D Systems Corp.
Abaxis, Inc.
Abiomed, Inc.
ACI Worldwide, Inc.
Acxiom Corp.
ADTRAN, Inc.
Advance Auto Parts
Advisory Board Co. (The)
Aeropostale, Inc.
Air Methods Corp.
Align Technology
America’s Car-Mart, Inc.
ANADIGICS, Inc.
Analog Devices, Inc.
Andersons, Inc., The
Applied Industrial Tech.
ArcBest Corp.
ARRIS Group, Inc.
Aruba Networks
Asbury Automotive Group
athenahealth, Inc.
Atlantic Tele-Network, Inc.
Atlas Energy
AutoNation, Inc.
AutoZone Inc.
B & G Foods, Inc.
BJ’s Restaurants
BancorpSouth, Inc.
Bankrate, Inc.
Basic Energy Services, Inc.
Bel Fuse Inc.
BioScrip, Inc.
Blue Nile
BOBE
BOKF
EPAY
BBRG
BKD
BRO
BWLD
BLDR
BKW
CJES
CHRW
CAB
CALM
CAMP
CVGW
CALX
CALD
CPE
CSU
KMX
CRZO
TAST
CRI
CASY
CGI
CERN
CHKP
CAKE
PLCE
CHUY
CBB
CTXS
MYCC
CCOI
CBSH
CPSI
CNW
CXO
CONN
CPSS
CBPX
CNVR
COO
CPRT
CORE
CLGX
COR
CSOD
CSGP
CVTI
CREE
CST
CSX
CFR
CONE
DNB
Bob Evans Farms, Inc.
BOK Financial Corp.
Brown & Brown, Inc.
C & J Energy Services, Inc.
C.H. Robinson Worldwide
Cabela’s Inc.
CalAmp Corp.
Calavo Growers Inc.
Calix Inc.
CallidusCloud
Capital Senior Living
CarMax, Inc.
Carter’s, Inc.
Casey’s General Stores
Celadon Group, Inc.
Cerner Corp.
Cheesecake Factory, The
Children’s Place, The
Chuy’s Holdings, Inc.
Cincinnati Bell Inc.
Citrix Systems, Inc.
Con-way, Inc.
Conn's, Inc.
Conversant, Inc.
Cooper Companies (The)
Copart, Inc.
CoreLogic
CoStar Group, Inc.
Cree, Inc.
CST Brands Inc.
CSX Corp.
CyrusOne, Inc.
D&B
DAN
DRI
DF
DFRG
DWRE
DENN
DXCM
DKS
DIOD
DNKN
DXPE
EOPN
EXP
ECHO
SATS
ELLI
ELGX
ENSG
EPE
EFX
EQIX
EXAS
XCO
XONE
EXPD
EXPGY
FPI
FARO
FDX
FICO
FNF
FIS
FRGI
FEYE
FAF
FFIN
FHN
FISV
FLIR
FTK
FLO
FNFV
FTNT
FWRD
FOSL
FRED
RAIL
TFM
FRM
GIII
GMT
GWR
GHDX
GPN
GDP
GLDD
Dana Holding Corp.
Darden Restaurants
Dean Foods Co.
Del Frisco’s Restaurant Group
Demandware, Inc.
Denny's Corp.
DexCom, Inc.
Dick’s Sporting Goods, Inc.
Diodes Inc.
Dunkin’ Brands Group
DXP Enterprises, Inc.
E2open, Inc.
Eagle Materials Inc.
EchoStar Corp.
Ellie Mae, Inc.
Endologix, Inc.
Ensign Group, The
EP Energy Corp.
Equifax Inc.
Equinix, Inc.
EXCO Resources, Inc.
ExOne Company, The
Experian plc
FedEx Corp.
FICO
Fidelity National Financial
Fidelity National Info. Services
FireEye, Inc.
First Financial Bankshares, Inc.
Fiserv, Inc.
FLIR Systems, Inc.
Flotek Industries, Inc.
Flowers Foods, Inc.
FNFV Group
Fortinet, Inc.
Forward Air Corp.
Fossil, Inc.
Fred’s Inc.
FreightCar America, Inc.
Fresh Market, The
Furmanite Corp.
G-III Apparel Group
GATX Corp.
Member NYSE, SPIC
GPRE
GBX
GPI
GWRE
GPOR
HK
HAL
HBHC
HGR
HLIT
HCOM
HWAY
HTLD
HPY
HLX
HP
HERO
HGG
HIBB
HTH
HMSY
HOLX
HOMB
HRL
HOS
HUBG
IBKC
IMPV
IMPR
IBTX
BLOX
INGR
PODD
IDCC
IDTI
ISIL
SNOW
IPCM
ITRI
JBHT
SJM
JPEP
JKHY
KAMN
KSU
KAR
KEG
KEX
KNX
KNOL
KN
KOG
KKD
LSTR
LPI
LDRH
Green Plains Inc.
Halcon Resources
Halliburton Co.
Hancock Holding Co.
Hanger Inc.
Harmonic Inc.
Healthways Inc.
Heartland Express
Heartland Payment Systems, Inc.
Helmerich & Payne
hhgregg, Inc.
HMS Holdings Corp.
Hologic, Inc.
Hormel Foods Corp.
Hub Group, Inc.
IBERIABANK Corp.
Imperva, Inc.
Imprivata, Inc.
Infoblox Inc.
Ingredion Inc.
Insulet Corp.
InterDigital, Inc.
Intersil Corp.
Itron, Inc.
J.B. Hunt Transport Svcs., Inc.
JP Energy Partners
Jack Henry & Associates
Kaman Corp.
KAR Auction Services, Inc.
Key Energy Services, Inc.
Kirby Corp.
Knight Transportation
Knology, Inc.
Knowles Corp.
Krispy Kreme Doughnuts, Inc.
LDR Holding Corp.
COVERAGE LIST
LVLT
LAD
LKQ
LOGM
LL
LMNX
MTSI
MHR
MCHX
MWE
MRTN
MLM
MMLP
MTDR
MTLS
MTRX
MATX
MCD
MDAS
MD
MRD
MMSI
MIK
MCHP
MSCC
MCEP
MSL
MG
MNRO
MOV
MRC
MSM
MUSA
MYGN
NBR
NBHC
NGVC
NCS
NEOG
NEO
NTCT
N
NSLP
EGOV
NE
NCFT
NSC
DNOW
NXTM
ORLY
OAS
ODFL
OMCL
OVTI
OSUR
Level 3 Communications, Inc.
Lithia Motors, Inc.
LKQ Corp.
LogMeIn, Inc.
Lumber Liquidators Holdings
Luminex Corp.
Magnum Hunter Resources
Marchex, Inc.
Materialise NV
Matrix Service Company
Matson Inc.
McDonald’s Corp.
MedAssets, Inc.
MEDNAX, Inc.
Michaels Companies, The
Microsemi Corp.
Mistras Group, Inc.
Monro Muffler Brake, Inc.
Movado Group
MRC Global Inc.
Murphy USA Inc.
Nabors Industries
Natural Grocers by Vitamin
Neogen Corp.
Neogenomics Inc.
NetSuite Inc.
NIC Inc.
Noble Corp.
Norcraft Companies
NOW, Inc.
O’Reilly Automotive, Inc.
Omnicell, Inc.
ORN
OSIS
OXM
PANW
PTRY
FRSH
PGN
PKD
PE
PTEN
PDCE
PAG
PQ
PPC
PNFP
PF
PES
PXD
PAA
PAGP
PGEM
PII
POOL
PINC
PGI
PFPT
PB
PRLB
QEP
QTS
QLTY
QSII
QLYS
QNST
RAX
RALY
RL
RRC
RHT
RRGB
RM
RF
RNST
RGEN
REXX
RFMD
RICE
RVBD
ROSE
ROVI
RES
RPXC
RSPP
RTIX
RKUS
Orion Marine Group, Inc.
OSI Systems, Inc.
Oxford Industries Inc.
Pantry, Inc., The
Papa Murphy’s Holdings
Parker Drilling Co.
PDC Energy, Inc.
Plains Group Holdings
Polaris Industries Inc.
Pool Corp.
Premier, Inc.
Premiere Global Services, Inc.
Proofpoint, Inc.
Prosperity Bancshares
Proto Labs, Inc.
QEP Resources, Inc.
QTS Realty Trust
Quality Distribution, Inc.
Qualys, Inc.
QuinStreet, Inc.
Rackspace Hosting, Inc.
Ralph Lauren Corp.
Red Hat, Inc.
Regional Management
Renasant Corp.
Repligen Corp.
Rex Energy Corp.
Rice Energy Inc.
Rovi Corp.
RPC, Inc.
RPX Corp.
RSP Permian, Inc.
RTI Surgical, Inc.
RUSHA
R
RYI
SAIA
CRM
SN
SAFM
SD
SC
SLB
SQI
SMTC
NOW
SSE
SHW
SHOR
SLAB
SWIR
SIG
SFNC
SIRO
SKH
SWKS
SWI
SAH
SONC
OKSB
SWN
SPLK
LEAF
SFM
STAA
SBUX
STBZ
STE
STC
STCK
SRI
SSYS
SPN
SUN
SWFT
SYMC
SURG
SNV
TISI
TMH
TEAR
TECH
TFX
TCBI
TXRH
TIF
TITN
TIVO
Ryder System, Inc.
Saia, Inc.
Salesforce.com
Sanderson Farms, Inc.
Schlumberger Ltd.
SciQuest, Inc.
Semtech Corp.
ServiceNow, Inc.
Seventy Seven Energy Inc.
Sherwin-Williams Co., The
ShoreTel, Inc.
Silicon Laboratories, Inc.
Sirona Dental Systems, Inc.
Skyworks Solutions, Inc.
SolarWinds, Inc.
Sonic Corp.
Splunk, Inc.
STAAR Surgical Co.
Starbucks Corp.
STERIS Corp.
Stoneridge Inc.
Stratasys Ltd.
Sunoco LP
Swift Transportation
Symantec Corp.
Team, Inc.
Team Health Holdings, Inc.
TearLab Corp.
Techne Corp.
Teleflex Inc.
Texas Capital Bancshares, Inc.
Texas Roadhouse, Inc.
Tiffany & Co.
Titan Machinery Inc.
TiVo Inc.
Member NYSE, SPIC
TSS
TSCO
TA
TREE
THS
TREX
TRN
TSC
TUES
TUMI
TYL
TSN
UBNT
ULTI
UMBF
UNP
UCBI
UNFI
UPS
USPH
SLCA
USAK
USG
UTIW
WOOF
VCYT
VBTX
VSAT
VPFG
VCRA
VJET
VMC
GWW
WNC
WAB
WMT
WBC
WSO
WEN
WERN
WCC
WWAV
WLL
WFM
WSH
WIN
WDAY
WRLD
INT
WPT
XPO
YRCW
Z
ZOES
Total System Services, Inc.
Tractor Supply Co.
Tree.com, Inc.
Trex Company, Inc.
Trinity Industries
TriState Capital Holdings, Inc.
Tumi Holdings, Inc.
Tyler Technologies, Inc.
Tyson Foods
Ultimate Software
UMB Financial Corp.
Union Pacific Corp.
United Parcel Service, Inc.
USA Truck, Inc.
USG Corp.
UTi Worldwide Inc.
VCA, Inc.
Veracyte, Inc.
ViaSat, Inc.
Voxeljet AG
W.W. Grainger, Inc.
Wabtec Corp.
Wal-Mart Stores, Inc.
WABCO Holdings Inc.
Watsco, Inc.
Wendy’s Co., The
Werner Enterprises
WhiteWave Foods Co.
Whiting Petroleum
Windstream Corp.
Workday, Inc.
World Fuel Services
XPO Logistics Inc.
YRC Worldwide Inc.
Zillow, Inc.
Zoe’s Kitchen, Inc.
COVERAGE LIST BY MARKET CAPITALIZATION
# Cos.
93
118
155
76
442
Average Market Cap $5.5 Billion
Median Market Cap. $1.9 Billion
Company
MARKET CAP > $5 MILLION
Wal-Mart Stores,Inc.
Schlumberger Ltd.
Union Pacific Corp.
McDonald's Corp.
Starbucks Corp.
FedEx Corp.
Halliburton Company
Salesforce.com
CSX Corp.
Sherwin-Williams Co.
Cerner Corp.
AutoZone Inc.
O'Reilly Automotive, Inc.
Symantec Corp.
Fiserv, Inc.
Fidelity National Information Svcs.
W.W. Grainger, Inc.
Analog Devices
Experian plc
Hormel Foods
Tkr
WMT
SLB
UNP
MCD
UPS
SBUX
FDX
HAL
CRM
CSX
NSC
ADM
PXD
SHW
CERN
PAA
AZO
ORLY
SYMC
WFM
FISV
FIS
ADS
GWW
LVLT
ADI
EXPGY
HRL
CHKP
RF
MWE
AR
KSU
Ftnt.
Code
pf
adj
op
adj
adj
adj
pf
op
op
op/cf
op
adj
op/cf
pf
op
adj
op/cs
adj/cs
pf
pf
adj
pf
op
op/cf
op/cf
op
FYE
Rating/
Volatility
Jan
Dec
Dec
Dec
Dec
Sep
May
Dec
Jan
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Aug
Dec
Mar
Sep
Dec
Dec
Dec
Dec
Dec
Oct
Mar
Oct
Dec
Dec
Dec
Dec
Dec
O
O
E
E
E
E
O
O
O/V
O
O
O
O
E
O
O
O/V
O/V
E
E/V
E
O
O/V
O
E
E/V
O/V
O
O
O
E
O
E
19-Nov
Price
$84.99
$95.00
$120.50
$96.56
$105.64
$77.82
$171.68
$48.43
$61.02
$36.87
$115.17
$52.22
$168.84
$240.85
$63.57
$53.75
$568.51
$178.19
$25.31
$47.78
$70.41
$59.78
$280.62
$244.34
$49.09
$50.75
$15.63
$55.29
$76.21
$10.07
$74.50
$52.30
$122.92
Market Cap.
> $5 Billion
$2 Billion-$5 Billion
$500 Million $ 2 Billion
Under $500 Million
Under Coverage
Price
Target
$87.00
$112.00
$120.00
$90.00
$110.00
$75.00
$200.00
$73.00
$70.00
$38.00
$125.00
$56.00
$250.00
$250.00
$69.00
$64.00
$616.00
$193.00
$24.00
$47.50
$65.00
$65.00
$310.00
$270.00
$48.00
$55.00
$20.00
$57.00
$78.00
$11.50
$77.00
$77.00
$120.00
Shares
Out.
Mil.
3,222.5
1,306.7
889.1
981.9
702.3
751.2
283.2
857.6
619.0
999.6
309.4
645.5
148.9
96.0
341.1
368.9
32.6
103.8
696.0
361.3
249.2
285.4
55.5
68.4
335.0
314.2
990.1
263.5
191.0
1,378.5
189.2
262.1
110.3
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$5.12
$4.79
$4.70
$5.55
$4.57
$2.68
$6.75
$3.15
$0.35
$1.81
$5.86
$2.33
$15.45
$7.67
$1.41
$3.68
$31.57
$6.03
$1.95
$1.57
$2.98
$2.84
$10.01
$11.52
($0.11)
$2.14
$0.92
$1.97
$3.44
$0.79
$3.40
$1.80
$3.98
Member NYSE, SPIC
$4.96
$5.65
$5.63
$4.95
$4.95
$3.12
$8.90
$4.03
$0.52
$1.90
$6.44
$3.05
$17.11
$8.93
$1.65
$2.87
$35.56
$7.27
$1.90
$1.71
$3.35
$3.10
$12.42
$12.25
$1.46
$2.32
$0.98
$2.25
$3.69
$0.83
$3.66
$4.22
$4.77
$5.38
$6.41
$6.45
$5.50
$5.60
NE
$10.10
$4.87
$0.72
$2.15
$7.25
$3.75
$17.84
$10.88
$2.09
$3.27
$41.25
$8.37
$2.00
$1.88
$3.73
$3.54
$15.03
$13.40
$0.88
$2.87
$1.09
$2.80
$4.00
$0.89
$4.35
$7.92
$5.55
P/E
Ratio
FY1E
17.1
16.8
21.4
19.5
21.3
24.9
19.3
12.0
NM
19.4
17.9
17.1
9.9
27.0
38.5
18.7
16.0
24.5
13.3
27.9
21.0
19.3
22.6
19.9
33.6
21.9
16.0
24.6
20.7
12.1
20.4
12.4
25.8
P/E
Ratio
FY2E
15.8
14.8
18.7
17.6
18.9
NM
17.0
9.9
84.8
17.1
15.9
13.9
9.5
22.1
30.4
16.4
13.8
21.3
12.7
25.4
18.9
16.9
18.7
18.2
55.8
17.7
14.3
19.7
19.1
11.3
17.1
6.6
22.1
Market
Cap
($ Mil)
$273,881.4
$122,245.4
$107,136.4
$93,972.6
$74,195.6
$58,232.7
$48,627.7
$41,042.5
$37,771.4
$36,700.3
$35,638.4
$33,618.6
$25,139.9
$23,121.1
$21,707.4
$19,996.8
$18,215.6
$18,076.5
$17,467.6
$17,219.9
$17,177.7
$16,962.6
$16,672.2
$16,659.8
$16,492.3
$15,946.3
$15,478.8
$14,566.5
$14,540.1
$13,861.1
$13,710.8
$13,706.1
$13,565.5
BVPS
FY1E
% Sls
Grth
$24.55
$31.28
$24.19
$16.45
$6.20
$7.03
$53.39
$18.25
$5.34
$11.15
$40.20
$31.15
$49.97
$15.54
$9.56
$21.73
($55.45)
$20.23
$8.47
$10.51
$13.95
$22.61
$19.47
$50.99
$6.91
$15.94
NA
$13.53
$18.92
$11.79
$24.38
$13.45
$31.99
2.4
13.9
9.1
(1.4)
4.6
16.5
5.1
17.4
31.9
5.2
1.4
(6.5)
11.3
10.0
15.8
(4.4)
3.0
8.0
(0.9)
9.4
5.2
6.4
22.7
5.2
7.4
8.7
2.5
6.9
7.2
NA
40.2
91.7
9.7
Company
Tiffany & Co.
Tyson Foods
Equinix, Inc.
Skyworks Solutions
CarMax, Inc.
Red Hat, Inc.
Ralph Lauren Corp.
Advance Auto Parts
C.H. Robinson Worldwide, Inc.
Citrix Systems
Polaris Industries, Inc.
Tractor Supply Co.
ServiceNow, Inc.
Equifax Inc.
J.B. Hunt Transport Services, Inc.
Workday, Inc.
LKQ Corp.
Wabtec Corp.
Helmerich & Payne
The Cooper Companies
NetSuite Inc.
Splunk, Inc.
Tkr
TIF
TSN
CXO
EQIX
RRC
SWKS
SWN
KMX
RHT
BKW
RL
AAP
CHRW
CTXS
PII
SJM
TSCO
SIG
NOW
EFX
JBHT
WDAY
VMC
LKQ
MCHP
PANW
MLM
WAB
FNF
EXPD
HP
PPC
COO
N
AJG
SPLK
Ftnt.
Code
Rating/
FYE Volatility
adj
op
op/cf
pf
op/cf
pf
op/cf
Jan
Sep
Dec
Dec
Dec
Sep
Dec
Feb
Feb
Dec
Mar
Dec
Dec
Dec
Dec
Apr
Dec
Jan
Dec
Dec
Dec
Jan
Dec
Dec
Mar
Jul
Dec
Dec
Dec
Dec
Sep
Dec
Oct
Dec
Dec
Jan
pf
adj
adj
adj
op
pf
op
op
adj
pf
cs
op
pf
op
op
pf
pf
op
op
pf/cs
adj
op
pf
pf
op
pf
O/V
O
O
E
O
O/V
E
E
O/V
E
E/V
E/V
E
E/V
O
O
O/V
O/V
O/V
O
O
E/V
O
O/V
E/V
O/V
O
O
E
O
O
O/V
E
O/V
O
E/V
19-Nov
Price
$102.69
$43.18
$115.16
$225.68
$73.00
$63.81
$33.58
$55.03
$62.94
$32.47
$179.66
$144.74
$71.48
$64.62
$156.17
$101.66
$75.32
$120.59
$63.72
$78.30
$80.12
$90.90
$67.67
$28.72
$43.15
$107.33
$128.19
$89.51
$30.52
$43.73
$77.97
$31.91
$167.93
$105.18
$47.73
$63.90
Price
Target
$112.00
$50.00
$160.00
$252.00
$105.00
$70.00
$42.00
$54.00
$70.00
$30.00
$167.00
$137.00
$74.00
$68.00
$175.00
$115.00
$85.00
$130.00
$80.00
$80.00
$87.00
$100.00
$76.00
$38.00
$45.00
$125.00
$145.00
$95.00
$31.00
$52.00
$99.00
$33.00
$176.00
$100.00
$55.00
$56.00
Shares
Out.
Mil.
129.3
305.7
113.2
53.2
168.7
189.5
353.1
221.1
189.1
335.9
61.1
73.0
147.2
164.5
66.0
101.8
135.9
80.2
145.7
121.8
117.2
28.3
131.7
302.7
200.4
80.4
66.9
96.3
276.9
195.1
108.2
259.0
48.3
76.4
161.4
118.6
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$3.73
$2.94
$13.58
$3.48
$5.85
$3.24
$5.65
$2.24
$1.49
$0.84
$8.43
$5.67
$2.66
$3.02
$5.35
$5.61
$2.32
$4.56
($0.08)
$3.54
$2.89
($0.54)
$0.05
$1.06
$2.45
$0.40
$2.62
$3.04
$2.40
$1.68
$6.25
$2.14
$6.41
$0.26
$2.14
($0.03)
Member NYSE, SPIC
$4.32
$4.89
$3.40
$3.70
$16.68 $20.04
$3.32
$5.67
$6.40
$7.39
$4.37
NE
$6.37
$7.66
$2.56
$2.71
$1.54
$1.80
$0.98
$1.10
$8.52
$9.82
$7.62
$8.59
$2.99
$3.20
$3.23
$3.61
$6.62
$7.90
$5.55
$6.00
$2.61
$3.06
$5.48
$6.47
($0.12) $0.03
$3.87
$4.35
$3.11
$3.65
($0.42) ($0.25)
$0.92
$1.85
$1.34
$1.67
$2.56
$2.82
$0.65
$1.37
$3.62
$5.77
$3.60
$4.10
$1.76
$2.29
$1.88
$2.07
$6.62
$7.26
$2.75
$2.75
$7.40
$8.41
$0.32
$0.53
$2.48
$2.90
$0.02
$0.07
P/E
Ratio
FY1E
23.8
12.7
6.9
68.0
11.4
14.6
5.3
21.5
40.9
33.1
21.1
19.0
23.9
20.0
23.6
18.3
28.9
22.0
NM
20.2
25.8
NM
73.6
21.4
16.9
NM
35.4
24.9
17.3
23.3
11.8
11.6
22.7
NM
19.2
NM
P/E
Ratio
FY2E
21.0
11.7
5.7
39.8
9.9
NM
4.4
20.3
35.0
29.5
18.3
16.8
22.3
17.9
19.8
16.9
24.6
18.6
NM
18.0
22.0
NM
36.6
17.2
15.3
78.3
22.2
21.8
13.3
21.1
10.7
11.6
20.0
NM
16.5
NM
Market
Cap
($ Mil)
$13,277.3
$13,198.3
$13,014.2
$12,397.1
$12,315.2
$12,093.7
$11,857.6
$11,853.2
$11,821.5
$11,428.8
$11,035.4
$10,565.2
$10,456.5
$10,401.9
$10,369.2
$10,350.7
$10,238.9
$9,673.1
$9,449.7
$9,442.0
$9,386.4
$8,990.0
$8,912.3
$8,703.2
$8,671.7
$8,625.9
$8,623.3
$8,615.8
$8,481.8
$8,441.2
$8,438.5
$8,265.6
$8,108.0
$8,071.4
$7,702.4
$7,662.7
BVPS
$22.66
$23.64
$45.48
$50.44
$18.79
$12.63
$12.16
$15.50
$8.09
$3.92
$65.98
$26.39
$6.92
$12.75
$12.05
$50.73
$9.01
$33.47
$2.74
$19.73
$9.90
$6.13
$32.09
$8.80
$10.83
$6.08
$65.39
$18.32
$16.13
$9.72
$45.20
$6.84
$55.03
$2.81
$20.18
$6.70
FY1E
% Sls
Grth
7.2
13.0
21.2
13.0
11.7
29.3
18.9
11.6
15.8
(7.8)
5.2
52.1
5.4
7.5
18.3
(1.2)
10.5
36.1
59.5
6.1
10.9
64.7
9.5
33.7
10.4
34.2
37.6
14.4
8.7
7.2
10.2
2.0
9.4
33.6
44.8
34.5
Company
Darden Restaurants
Hologic, Inc.
AutoNation, Inc.
WhiteWave Foods Co.
MEDNAX, Inc.
Rackspace Hosting
WABCO Holdings Inc.
Total System Services
Windstream Corp.
Ingredion Inc.
Kirby Corp.
Fossil, Inc.
Trinity Industries
Plains GP Holdings, L.P.
CoStar Group, Inc.
Stratasys Ltd.
Noble Corp.
Tkr
Ftnt.
Code
WSH
op
DRI
adj
HOLX
adj
ODFL
op
AN
op
WLL
op/cf
SC
WWAV op
MD
BKD
cs
RAX
WBC
op
TSS
op
WIN
pf
INGR
op
KEX
op
GPN
op/cs
FOSL
adj
TRN
PAGP
cf
CSGP
pf
SSYS
pf
GWR
op
NE
adj
MARKET CAP $2 BILLION - $5 BILLION
Jack Henry & Associates, Inc.
JKHY
CFR
Dunkin' Brands Group
DNKN
KAR
Ryder System
R
Sirona Dental Systems
SIRO
Teleflex Inc.
TFX
SFM
athenahealth, Inc.
ATHN
Dick's Sporting Goods, Inc.
DKS
op
adj
op
op
pf
adj
op
adj
op
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
P/E
Ratio
FY1E
P/E
Ratio
FY2E
Market
Cap
($ Mil)
BVPS
FY1E
% Sls
Grth
Dec
May
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
May
Dec
Dec
Dec
Dec
Dec
Dec
Dec
E
E
E/V
O
E
O
O
O
E
O/V
O/V
O
O
E
E
O
E
E/V
O
E
O
O/V
O
O
$42.46
$55.61
$26.29
$76.59
$57.92
$55.03
$18.63
$36.90
$63.80
$34.66
$43.05
$103.12
$32.35
$9.83
$82.10
$101.95
$83.12
$107.43
$34.75
$27.04
$163.38
$103.21
$98.00
$20.53
$43.00
$45.00
$30.00
$86.00
$58.00
$100.00
$24.00
$42.00
$65.00
$45.00
$41.00
$120.00
$37.00
$11.00
$80.00
$130.00
$79.00
$115.00
$47.00
$33.00
$210.00
$135.00
$113.00
$32.00
178.4
132.6
277.8
86.2
113.1
167.0
349.0
174.4
100.4
183.4
143.6
58.9
185.9
602.8
71.9
57.1
67.6
52.9
155.6
136.1
32.4
50.6
52.7
252.3
$2.67
$2.40
$1.52
$2.37
$2.98
$14.15
$2.01
$0.74
$2.78
$2.50
$0.61
$5.01
$1.74
$0.36
$5.05
$4.25
$4.12
$6.56
$2.33
$0.58
$2.57
$1.84
$4.27
$2.87
$2.44
$2.23
$1.54
$3.00
$3.35
$17.11
$2.22
$1.00
$3.15
$2.60
$0.71
$5.50
$1.90
$0.13
$5.38
$5.09
$4.74
$7.18
$4.12
$0.74
$3.22
$2.25
$4.18
$1.66
$2.84
$2.44
NE
$3.50
$3.65
$19.42
$2.33
$1.20
$3.47
$2.95
$1.05
$6.10
$2.28
$0.08
$6.05
$5.80
$5.28
$7.85
$4.15
$0.91
$3.67
$2.75
$4.85
$2.18
17.4
24.9
17.1
25.5
17.3
3.2
8.4
36.9
20.3
13.3
60.6
18.7
17.0
75.6
15.3
20.0
17.5
15.0
8.4
36.5
50.7
45.9
23.4
12.4
15.0
22.8
NM
21.9
15.9
2.8
8.0
30.8
18.4
11.7
41.0
16.9
14.2
122.9
13.6
17.6
15.7
13.7
8.4
29.7
44.5
37.5
20.2
9.4
$7,519.5
$7,376.5
$7,302.3
$6,599.4
$6,553.3
$6,551.9
$6,501.5
$6,433.8
$6,406.5
$6,357.0
$6,180.0
$6,072.0
$6,013.8
$5,925.2
$5,900.0
$5,817.2
$5,622.0
$5,488.0
$5,408.4
$5,301.1
$5,285.2
$5,253.2
$5,176.9
$5,173.0
$12.73
$16.15
$7.43
$16.59
$17.93
$35.73
$9.47
$6.08
$24.99
$8.02
$8.56
$18.56
$9.04
$0.76
$30.94
$39.32
$13.92
$18.97
$21.16
$7.62
$46.20
$51.42
$43.71
$29.25
4.1
(24.1)
1.6
18.5
7.6
20.6
41.5
36.2
12.6
31.8
17.6
5.1
19.2
(2.6)
(8.8)
13.8
8.6
9.5
39.4
30.2
30.0
58.1
4.5
(24.5)
Jun
Dec
Dec
Dec
Dec
Sep
Dec
Dec
Dec
Jan
E
E
E
O
O
O/V
E
E/V
O/V
E
$60.63 $64.00
$78.57 $77.00
$47.03 $45.00
$34.19 $38.00
$90.55 $105.00
$82.76 $90.00
$115.12 $118.00
$31.43 $36.00
$123.51 $167.00
$48.45 $48.00
81.8
63.1
104.9
140.5
53.0
57.8
41.4
151.0
38.0
96.3
$2.36
$3.80
$1.54
$1.20
$4.88
$3.41
$4.99
$0.48
$1.15
$2.69
$2.61
$4.31
$1.75
$1.54
$5.58
$3.65
$5.70
$0.68
$1.10
$2.82
$2.92
$4.56
$2.00
$1.68
$6.40
$4.08
$6.52
$0.89
$1.33
$3.24
23.2
18.2
26.9
22.2
16.2
22.7
20.2
46.2
NM
17.2
20.8
18.2
23.5
20.4
14.1
20.3
17.7
35.3
92.9
15.0
$4,957.7
$4,954.5
$4,918.5
$4,815.6
$4,802.8
$4,780.5
$4,767.6
$4,754.7
$4,705.0
$4,667.6
$12.56
$42.40
$3.32
$10.84
$37.38
$23.45
$45.67
$4.09
$11.54
$13.73
8.3
NA
4.7
7.8
3.7
5.5
8.2
21.3
25.1
9.3
Member NYSE, SPIC
Company
Tkr
BOK Financial
BOKF
FireEye, Inc.
FEYE
Nabors Industries
NBR
Brown & Brown, Inc.
BRO
MRD
D&B
DNB
FLIR Systems, Inc.
FLIR
Michaels Companies
MIK
Eagle Materials
EXP
Fortinet, Inc.
FTNT
GPOR
Align Technology
ALGN
LEAF
Copart, Inc.
CPRT
PAG
Carter's, Inc.
CRI
Ultimate Software
ULTI
QEP Resources, Inc.
QEP
Cree, Inc.
CREE
Zillow, Inc.
Z
CBSH
ARRIS Group, Inc.
ARRS
PB
Flowers Foods, Inc.
FLO
USG Corp.
USG
RFMD
3D Systems Corp.
DDD
Team Health Holdings
TMH
VCA, Inc.
WOOF
DexCom, Inc.
DXCM
PF
MSM
SolarWinds, Inc.
SWI
WCC
Cabela's Inc.
CAB
ACHC
Ftnt.
Code
Rating/
FYE Volatility
op
pf
adj
cs
op/cf
adj
pf
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Mar
Dec
Dec
Dec
Dec
Jul
Dec
Dec
Dec
Dec
Jun
Dec
Dec
Dec
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Aug
Dec
Dec
Dec
Dec
op
pf
op/cf
pf
adj
op
adj
pf
op/cf
pf
adj
op
pf
op
op
op
pf
pf
pf
pf
pf
op
pf
pf
pf
op
adj
E
E/V
O
E
O
E
O
O
O/V
O/V
E
O/V
O
O/V
O
O/V
O/V
O
E/V
O/V
E
O/V
E
O
E/V
O/V
E/V
O/V
E
O/V
O
E
E/V
O/V
O
O/V
19-Nov
Price
Price
Target
$66.83 $68.00
$30.55 $31.00
$15.81 $29.00
$31.77 $33.00
$23.31 $33.00
$125.43 $95.00
$31.82 $41.00
$21.75 $23.00
$87.90 $110.00
$26.77 $30.00
$51.52 $65.00
$54.42 $70.00
$38.04 $42.00
$34.11 $40.00
$47.44 $56.00
$80.68 $87.00
$149.18 $180.00
$23.46 $36.00
$35.14 $31.00
$120.96 $150.00
$45.42 $43.00
$28.71 $40.00
$58.95 $60.00
$19.37 $21.00
$28.08 $30.00
$13.89 $17.00
$36.04 $45.00
$55.03 $68.00
$46.15 $44.00
$50.48 $50.00
$32.90 $35.00
$78.77 $87.00
$50.25 $46.00
$84.82 $92.00
$52.61 $69.00
$62.01 $66.00
Shares
Out.
Mil.
69.3
144.9
299.7
144.5
193.9
36.4
143.7
207.0
50.2
163.8
85.5
80.8
114.8
126.1
90.2
52.9
28.3
180.2
119.5
34.1
91.6
148.8
69.8
209.9
144.7
290.7
111.2
71.1
86.2
76.6
117.3
49.0
75.4
44.5
71.1
59.9
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$4.63
($3.06)
$0.96
$1.94
$0.93
$7.65
$1.39
$1.22
$2.55
$0.48
$2.19
$1.56
$1.92
$1.53
$2.77
$3.37
$1.60
$7.65
$1.65
$0.17
$2.77
$1.66
$3.69
$0.91
$0.26
$0.45
$0.85
$1.83
$1.68
($0.42)
$1.57
$3.93
$1.63
$5.02
$3.32
$1.07
Member NYSE, SPIC
$4.25
($2.08)
$1.05
$2.18
$1.62
$7.28
$1.43
$1.42
$3.46
$0.47
$4.30
$1.77
$2.04
$1.67
$3.28
$3.83
$1.99
$8.24
$0.93
$0.40
$2.75
$2.58
$4.24
$0.90
$1.24
$1.09
$0.71
$2.26
$1.89
($0.40)
$1.74
$4.02
$1.79
$5.25
$3.15
$1.53
$4.34
($1.72)
$2.03
$2.50
$2.77
$7.86
$1.61
$1.63
$5.60
$0.61
$6.40
$2.09
$2.35
$1.83
$3.76
$4.48
$2.47
$8.30
$1.27
$0.99
$2.82
$2.70
$4.22
$1.05
$2.10
$1.20
$1.08
$2.32
$2.11
$0.05
$1.90
$4.62
$1.96
$5.80
$3.45
$1.98
P/E
Ratio
FY1E
15.7
NM
15.1
14.6
14.4
17.2
22.3
15.3
25.4
57.0
12.0
30.7
18.6
20.4
14.5
21.1
75.0
2.8
37.8
NM
16.5
11.1
13.9
21.5
22.6
12.7
50.8
24.3
24.4
NM
18.9
19.6
28.1
16.2
16.7
40.5
P/E
Ratio
FY2E
15.7
NM
7.8
12.7
8.4
16.0
19.8
13.3
15.7
43.9
8.1
26.0
16.2
18.6
12.6
18.0
60.4
2.8
27.7
NM
16.5
10.6
14.0
18.4
13.4
11.6
33.4
23.7
21.9
NM
17.3
17.0
25.6
14.6
15.2
31.3
Market
Cap
($ Mil)
$4,633.8
$4,595.3
$4,576.0
$4,567.4
$4,511.9
$4,504.2
$4,483.2
$4,436.0
$4,418.1
$4,413.2
$4,406.6
$4,369.0
$4,368.2
$4,306.1
$4,280.4
$4,268.5
$4,232.4
$4,226.3
$4,197.3
$4,166.6
$4,165.3
$4,155.8
$4,112.9
$4,066.3
$4,064.1
$4,038.2
$4,008.3
$3,913.1
$3,882.4
$3,864.9
$3,858.2
$3,805.4
$3,800.8
$3,772.9
$3,739.9
$3,715.6
BVPS
FY1E
% Sls
Grth
$46.77
$8.92
$20.26
$14.64
$2.25
($29.89)
$11.67
($15.90)
$18.35
$3.82
$25.60
$8.37
$14.61
$7.96
$18.35
$14.19
$8.74
$18.49
$24.86
$14.50
$23.35
$10.29
$45.63
$5.53
$5.28
$2.76
$11.71
$5.59
$15.43
$1.32
$14.74
$22.41
$7.03
$42.92
$24.46
$14.82
NA
162.2
10.2
16.2
112.5
1.8
0.7
2.0
14.9
22.7
99.7
15.4
22.1
10.5
16.1
8.7
23.0
(0.6)
2.4
63.7
NA
45.9
NA
0.5
4.8
20.9
30.4
16.8
6.1
53.0
6.5
8.2
27.5
5.2
5.8
41.6
Company
Tkr
UNFI
SPN
STERIS Corp.
STE
Dana Holding Corp.
DAN
Rice Energy Inc.
RICE
Tyler Technologies
TYL
SNV
EP Energy Corp.
EPE
GWRE
THS
RPC, Inc.
RES
LSTR
CST Brands Inc.
CST
FAF
Techne Corp.
TECH
Casey's General Stores
CASY
World Fuel Services
INT
RVBD
The Wendy's Co.
WEN
ViaSat, Inc.
VSAT
BWLD
Watsco, Inc.
WSO
FHN
PTEN
NOW, Inc.
DNOW
APL
CoreLogic
CLGX
Murphy USA Inc.
MUSA
OZRK
GATX Corp.
GMT
HLX
Hancock Holding Co.
HBHC
Con-way Inc.
CNW
IDTI
Texas Capital Bancshares
TCBI
OAS
Ftnt.
Code
Rating/
FYE Volatility
op
adj
pf
adj
op/cf
pf
op
op/cf
pf
op
Jul
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Jul
Dec
Dec
Dec
Dec
Dec
Jun
Apr
Dec
Dec
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Mar
Dec
Dec
adj
op
pf
adj
op
pf
adj
pf
adj
adj
pf
op/cf
adj
adj
op
op
adj
op
op
pf
op
op/cf
O/V
O
O
E
O/V
O
O
O
O/V
O
O
E
O/V
E
O/V
O
E
E/V
E
E/V
O/V
E
O
O
E/V
E
E/V
O/V
O
E
O
E
E
O/V
O
O/V
19-Nov
Price
$74.31
$24.29
$62.19
$21.09
$26.10
$106.99
$25.71
$14.26
$49.30
$80.51
$15.53
$75.28
$43.14
$30.98
$89.17
$83.56
$44.36
$20.13
$8.48
$65.49
$161.39
$100.20
$12.74
$20.39
$27.53
$34.53
$32.21
$62.98
$35.66
$63.97
$26.50
$34.11
$46.76
$17.96
$57.83
$25.85
Price
Target
$76.00
$35.00
$72.00
$24.00
$33.00
$130.00
$29.00
$25.00
$55.00
$90.00
$22.00
$78.00
$44.00
$31.00
$113.00
$84.00
$48.00
$20.00
$9.50
$75.00
$170.00
$106.00
$14.00
$41.00
$30.00
$40.00
$32.00
$69.00
$39.00
$70.00
$33.00
$34.00
$50.00
$19.00
$67.00
$50.00
Shares
Out.
Mil.
49.8
155.4
59.4
169.4
136.3
33.0
139.0
245.6
69.1
42.3
216.3
44.7
75.6
107.3
37.0
38.7
72.1
162.3
365.3
46.7
18.9
30.1
237.2
146.1
107.7
84.5
89.7
45.7
79.7
44.8
105.5
81.9
57.9
148.8
43.2
101.6
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.52
$1.56
$2.49
$1.78
$0.83
$1.51
$0.99
$4.27
$0.63
$3.19
$0.77
$2.48
$1.90
$1.73
$3.39
$3.49
$2.83
$1.01
$0.30
$0.44
$3.96
$3.68
$0.11
$1.18
$1.37
$2.73
$1.69
$5.15
$1.20
$3.51
$1.08
$2.22
$1.66
$0.46
$2.91
$7.75
Member NYSE, SPIC
$2.96
$1.77
$2.89
$1.96
$1.34
$2.09
$1.46
$5.07
$0.41
$3.66
$1.09
$3.03
$1.97
$1.96
$3.62
$3.86
$2.97
$1.13
$0.34
$1.45
$5.12
$4.26
$0.68
$1.56
$1.24
$3.31
$1.37
$3.94
$1.52
$4.45
$1.96
$2.34
$2.33
$0.79
$2.84
$8.44
$3.37
$2.01
$3.14
$2.25
$3.03
$2.38
$1.63
$5.80
$0.50
$4.20
$1.64
$3.35
$2.09
$2.23
$3.80
$3.90
$3.30
$1.20
$0.38
$2.10
$5.92
$5.00
$0.85
$2.45
$1.40
$3.60
$1.73
$3.16
$2.04
$5.10
$1.75
$2.42
$2.80
$0.88
$3.55
$8.61
P/E
Ratio
FY1E
25.1
13.7
21.5
10.8
19.5
51.2
17.6
2.8
NM
22.0
14.2
24.8
21.9
15.8
24.6
21.6
14.9
17.8
24.9
45.2
31.5
23.5
18.7
13.1
22.2
10.4
23.5
16.0
23.5
14.4
13.5
14.6
20.1
22.7
20.4
3.1
P/E
Ratio
FY2E
22.1
12.1
19.8
9.4
8.6
45.0
15.8
2.5
98.6
19.2
9.5
22.5
20.6
13.9
23.5
21.4
13.4
16.8
22.3
31.2
27.3
20.0
18.7
8.3
19.7
9.6
18.6
19.9
17.5
12.5
15.1
14.6
16.7
20.4
16.3
3.0
Market
Cap
($ Mil)
$3,707.1
$3,696.2
$3,695.5
$3,572.7
$3,556.9
$3,534.3
$3,511.2
$3,490.9
$3,427.4
$3,407.7
$3,394.9
$3,367.8
$3,350.4
$3,323.1
$3,306.1
$3,229.6
$3,196.8
$3,122.4
$3,097.5
$3,072.9
$3,054.5
$3,016.7
$2,997.1
$2,985.4
$2,947.6
$2,917.8
$2,890.5
$2,880.0
$2,842.3
$2,827.5
$2,796.8
$2,782.3
$2,708.3
$2,669.8
$2,642.9
$2,619.6
BVPS
$24.98
$26.78
$17.92
$7.23
$10.37
$8.96
$21.22
$15.10
$9.42
$40.66
$4.85
$11.08
$8.81
$24.04
$21.44
$19.95
$25.09
$4.72
$4.72
$21.33
$29.11
$25.21
$9.48
$19.48
$18.29
$29.08
$11.55
$14.83
$10.67
$29.71
$15.89
$30.56
$21.82
$4.94
$30.04
$15.43
FY1E
% Sls
Grth
21.5
9.5
16.7
(1.6)
101.3
18.7
NA
37.9
6.3
30.1
26.3
17.5
(0.1)
(7.8)
29.4
9.9
9.3
2.8
(17.7)
5.2
19.7
5.3
NA
16.2
(3.3)
24.7
0.0
0.3
NA
9.8
43.9
NA
6.6
12.2
NA
20.6
Company
Tkr
KOG
UBNT
UMB Financial
UMBF
AEO
Pool Corp.
POOL
Microsemi Corp.
MSCC
KNX
Insulet Corp.
PODD
XPO Logistics Inc.
XPO
ATW
Swift Transportation Co.
SWFT
Aruba Networks
ARUN
MYGN
LPI
The Cheesecake Factory
CAKE
CRZO
SLCA
FICO
FICO
Conversant, Inc.
CNVR
Heartland Express, Inc.
HTLD
ACI Worldwide, Inc.
ACIW
IBERIABANK Corp.
IBKC
ABG
EchoStar Corp.
SATS
MDRX
MRC Golbal Inc.
MRC
Texas Roadhouse
TXRH
RSP Permian, Inc.
RSPP
ROSE
HOMB
BancorpSouth, Inc.
BXS
GPI
Rovi Corp.
ROVI
ANF
Sanderson Farms
SAFM
Werner Enterprises, Inc.
WERN
Ftnt.
Code
Rating/
FYE Volatility
op/cf
pf
op
adj
pf
pf
op
pf
op
adj
op
pf
pf
op/cf
adj
op/cf
op
cs
adj
Dec
Jun
Dec
Jan
Dec
Sep
Dec
Dec
Dec
Sep
Dec
Jul
Jun
Dec
Dec
Dec
Dec
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Oct
Dec
pf/cs
op
op
adj
pf
adj
op/cf
op/cf
op
op
op
pf
adj
O/V
E/V
E
O/V
O
O/V
O
E/V
E/V
E
O
O/V
O/V
E/V
O
O/V
E/V
E
E
O
O
O
O
O
E
E/V
O
O/V
O/V
O
E
E
E/V
O/V
E
E
19-Nov
Price
$9.76
$29.56
$57.35
$13.25
$58.52
$26.48
$30.95
$44.23
$37.17
$37.00
$26.13
$21.53
$32.16
$16.12
$46.62
$50.02
$42.69
$71.68
$34.89
$25.60
$19.49
$66.44
$73.93
$50.23
$12.17
$21.39
$31.34
$27.85
$34.67
$31.44
$22.03
$86.29
$21.91
$28.98
$89.11
$28.45
Price
Target
$17.00
$35.00
$60.00
$16.00
$65.00
$32.00
$35.00
$40.00
$40.00
$43.00
$27.00
$25.00
$48.00
$23.00
$50.00
$80.00
$48.00
$60.00
$35.00
$28.00
$23.00
$76.00
$80.00
$60.00
$14.00
$25.00
$35.00
$35.00
$68.00
$36.00
$22.00
$87.00
$25.00
$35.00
$90.00
$29.00
Shares
Out.
Mil.
271.1
88.4
45.5
194.4
44.1
95.4
81.0
56.1
64.5
64.4
90.5
109.4
73.0
143.7
49.5
46.5
53.9
32.2
64.4
87.8
114.9
33.4
30.4
43.8
180.2
102.0
69.5
77.3
61.6
66.5
96.1
24.3
92.1
71.4
23.1
72.0
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.23
$2.00
$2.97
$0.74
$2.05
$2.19
$0.86
($0.53)
($2.75)
$4.87
$1.25
$0.77
$2.42
$2.81
$2.10
$8.69
$1.49
$3.71
$1.56
$0.85
$0.96
$3.13
$3.36
$0.03
$0.27
$1.52
$1.13
$2.00
$9.43
$1.33
$1.08
$4.96
$1.68
$1.91
$5.68
$1.15
Member NYSE, SPIC
$2.74
$3.52
$1.99
$2.22
$3.00
$3.31
$0.64
$0.89
$2.40
$2.82
$2.78
NE
$1.18
$1.37
($0.03) $0.31
($0.86) ($0.44)
$6.63
$6.67
$1.27
$1.65
$1.11
$1.31
$1.90
$2.22
$2.75
$2.78
$2.07
$2.40
$11.23 $13.29
$2.43
$3.39
$4.17
$4.70
$1.59
$2.00
$0.97
$1.20
$1.07
$1.38
$3.72
$4.77
$4.31
$4.72
$1.65
$1.90
$0.34
$0.55
$1.73
$1.85
$1.21
$1.43
$2.68
$3.78
$10.79 $12.24
$1.77
$1.96
$1.29
$1.48
$5.58
$6.23
$1.69
$1.80
$1.90
$2.41
$10.21 $10.88
$1.25
$1.50
P/E
Ratio
FY1E
3.6
14.9
19.1
20.7
24.4
9.5
26.2
NM
NM
5.6
20.6
19.4
16.9
5.9
22.5
4.5
17.6
17.2
21.9
26.4
18.2
17.9
17.2
30.4
35.8
12.4
25.9
10.4
3.2
17.8
17.1
15.5
13.0
15.3
8.7
22.8
P/E
Ratio
FY2E
2.8
13.3
17.3
14.9
20.8
NM
22.6
NM
NM
5.5
15.8
16.4
14.5
5.8
19.4
3.8
12.6
15.3
17.4
21.3
14.1
13.9
15.7
26.4
22.1
11.6
21.9
7.4
2.8
16.0
14.9
13.9
12.2
12.0
8.2
19.0
Market
Cap
($ Mil)
$2,614.4
$2,612.0
$2,609.0
$2,576.2
$2,541.2
$2,516.7
$2,511.5
$2,480.5
$2,395.6
$2,381.2
$2,370.6
$2,355.1
$2,347.2
$2,316.2
$2,307.4
$2,305.7
$2,301.6
$2,301.4
$2,248.1
$2,247.1
$2,240.1
$2,222.2
$2,200.8
$2,198.1
$2,192.9
$2,183.2
$2,174.8
$2,152.6
$2,131.9
$2,123.1
$2,116.9
$2,097.2
$2,082.2
$2,068.2
$2,055.9
$2,044.5
BVPS
$4.61
$4.08
$35.51
$5.83
$5.73
$11.20
$7.74
$1.49
$19.33
$38.09
$2.84
$3.09
$9.78
$9.43
$5.59
$18.90
$7.26
$14.59
$7.90
$5.20
$4.53
$54.35
$17.43
$38.33
$7.12
$13.88
$8.49
$14.89
$22.83
$13.77
$16.77
$42.82
$12.31
$20.90
$35.65
$11.21
FY1E
% Sls
Grth
28.4
6.6
NA
(1.8)
7.7
9.6
12.5
20.2
NM
(3.7)
3.7
17.3
3.9
8.6
4.8
36.4
58.8
4.4
5.5
51.5
18.3
NA
9.0
6.1
1.5
13.7
10.6
86.3
21.9
NA
NA
10.3
(0.3)
(6.1)
3.0
4.9
Company
Tkr
MARKET CAP $500 MILLION - $2 BILLION
Applied Industrial Technologies
AIT
Demandware, Inc.
DWRE
First Financial Bankshares
FFIN
HPY
Fresh Market, The
TFM
G-III Apparel Group
GIII
EXAS
Silicon Laboratories Inc.
SLAB
Atlas Energy
ATLS
CALM
HTH
SD
InterDigital, Inc.
IDCC
HMS Holdings Corp.
HMSY
Air Methods Corp.
AIRM
GBX
Lithia Motors, Inc.
LAD
Knowles Corp.
KN
Intersil Corp.
ISIL
Proto Labs, Inc.
PRLB
Semtech Corp.
SMTC
Monro Muffler Brake
MNRO
CCOI
Andersons, The
ANDE
Dean Foods
DF
CSOD
MTDR
Proofpoint, Inc.
PFPT
OVTI
Itron, Inc.
ITRI
PE
NTCT
Neogen Corp.
NEOG
B&G Foods, Inc.
BGS
The Advisory Board Co.
ABCO
Lumber Liquidators
LL
Ftnt.
Code
Rating/
FYE Volatility
pf
pf
op
pf
op
adj
pf
pf
op/cf
op
op
op/cf
pf
adj
op
Jun
Dec
Dec
Dec
Jan
Jan
Dec
Dec
Dec
May
Dec
Dec
Dec
Dec
Dec
Aug
Dec
Dec
Dec
Dec
Jan
Mar
Dec
Dec
Dec
Dec
Dec
Dec
Apr
Dec
Dec
Mar
May
Dec
Mar
Dec
op
pf
pf
pf
pf
op
pf
op/cf
pf
pf
pf
op/cf
pf
pf
op
adj
E
O/V
E
E
O/V
O/V
E/V
E/V
O
E/V
O
O/V
E/V
O
O/V
O
O
E/V
E/V
O/V
O/V
O
O
E
U
E/V
O/V
O/V
E/V
Susp
O
E/V
O/V
E
O
O
19-Nov
Price
$48.11
$54.50
$30.74
$53.13
$39.54
$85.14
$22.61
$44.66
$36.12
$42.71
$20.44
$3.73
$49.16
$20.06
$44.42
$63.49
$72.84
$20.17
$12.73
$63.39
$24.28
$51.26
$34.86
$55.70
$17.04
$29.84
$21.72
$41.46
$27.21
$39.97
$16.55
$37.36
$41.59
$28.54
$41.69
$55.12
Price
Target
$52.00
$70.00
$27.00
$53.00
$44.00
$98.00
$23.00
$51.00
$52.00
$75.00
$25.00
$9.00
$45.00
$25.00
$58.00
$84.00
$86.00
$21.00
$14.00
$76.00
$30.00
$59.00
$40.00
$55.00
$12.00
$30.00
$34.00
$45.00
$29.00
NE
$30.00
$32.00
$51.00
$31.00
$63.00
$65.00
Shares
Out.
Mil.
41.5
36.3
64.1
36.0
48.4
22.4
82.9
42.4
51.9
21.8
90.2
494.0
37.9
87.7
39.2
27.4
23.8
85.0
129.5
25.7
67.4
31.6
46.2
28.4
93.8
53.4
74.2
37.4
57.6
39.3
93.9
41.1
36.8
53.7
36.3
27.1
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$2.57
($0.20)
$1.28
$2.33
$1.40
$3.74
($0.69)
$2.02
$1.66
$4.36
$1.28
$1.41
$0.92
$0.75
$1.59
$3.07
$3.99
$2.12
$0.65
$1.46
$1.56
$1.67
$0.16
$3.18
$0.86
($0.24)
$3.15
($0.33)
$2.24
$1.90
$0.82
$1.53
$0.75
$1.43
$1.22
$2.77
Member NYSE, SPIC
$2.98
$0.04
$1.43
$2.33
$1.56
$4.15
($1.25)
$1.99
$1.99
$5.60
$1.11
$1.15
$2.47
$0.55
$2.34
$4.40
$4.87
$1.31
$0.69
$1.72
$1.52
$1.90
($0.06)
$3.95
($0.12)
($0.32)
$3.72
($0.43)
$2.05
NE
$1.50
$1.77
$0.93
$1.56
$1.32
$2.44
$3.42
$0.08
$1.53
$2.94
$1.84
$4.67
($1.22)
$2.07
$2.26
$4.80
$1.71
$1.43
$2.50
$0.82
$2.88
$5.40
$5.73
$1.61
$0.72
$2.13
$1.70
$2.36
$0.34
$3.90
$0.76
($0.17)
$5.31
($0.30)
NE
NE
$2.65
$2.04
$1.13
$1.72
$1.48
$2.94
P/E
Ratio
FY1E
16.1
NM
21.5
22.8
25.3
20.5
NM
22.4
18.2
7.6
18.4
3.2
19.9
36.5
19.0
14.4
15.0
15.4
18.4
36.9
16.0
27.0
NM
14.1
NM
NM
5.8
NM
13.3
NM
11.0
21.1
44.7
18.3
31.6
22.6
P/E
Ratio
FY2E
14.1
NM
21.5
18.1
21.5
18.2
NM
21.6
16.0
8.9
18.4
2.6
19.7
24.5
15.4
11.8
12.7
12.5
17.7
29.8
14.3
21.7
NM
14.3
22.4
NM
4.1
NM
NM
NM
6.2
18.3
36.8
16.6
28.2
18.7
Market
Cap
($ Mil)
$1,986.0
$1,978.9
$1,969.4
$1,924.4
$1,914.6
$1,905.9
$1,904.9
$1,892.7
$1,876.4
$1,861.4
$1,843.3
$1,842.7
$1,827.0
$1,761.0
$1,741.5
$1,738.1
$1,725.5
$1,715.3
$1,655.3
$1,636.8
$1,635.4
$1,618.5
$1,612.0
$1,609.7
$1,598.7
$1,598.1
$1,593.4
$1,581.0
$1,567.8
$1,561.2
$1,554.6
$1,538.9
$1,535.8
$1,531.6
$1,501.3
$1,491.6
BVPS
FY1E
% Sls
Grth
$19.06
$7.21
$10.08
$6.69
$5.96
$29.92
$2.59
$17.65
$6.62
$24.56
$15.49
$1.80
$14.75
$5.93
$10.49
$18.61
$26.20
$15.51
$7.48
$9.89
$8.31
$13.59
$2.34
$27.12
$7.20
$0.83
$10.74
$1.84
$18.13
$22.07
NA
$10.05
$8.64
$6.58
$8.85
$11.28
15.0
49.6
NA
11.3
15.2
22.7
(24.4)
6.3
84.5
2.1
NA
(10.8)
25.2
(9.5)
13.0
15.9
3.0
(5.0)
(2.6)
27.1
(6.3)
8.5
9.4
(13.8)
6.5
40.0
41.8
39.2
(3.4)
NE
NM
15.2
12.0
18.5
14.1
32.9
Company
Tkr
TiVo Inc.
TIVO
FRGI
Forward Air
FWRD
Matson Inc.
MATX
ARII
Acxiom Corp.
ACXM
Abiomed, Inc.
ABMD
Tumi Holdings, Inc.
TUMI
BECN
NCS
PDC Energy, Inc.
PDCE
PNFP
Hub Group
HUBG
OSI Systems, Inc.
OSIS
FNFV Group
FNFV
Sonic Corp.
SONC
Trex Company
TREX
CORE
Saia, Inc.
SAIA
MMLP
Green Plains Inc.
GPRE
Krispy Kreme Doughnuts
KKD
ARP
Premier, Inc.
PINC
MYCC
LogMeIn, Inc.
LOGM
Diodes Inc.
DIOD
Bankrate, Inc.
RATE
Abaxis, Inc.
ABAX
Halcon Resources
HK
Bob Evans Farms
BOBE
BJ's Restaurants
BJRI
SWIR
Conn's, Inc.
CONN
MedAssets, Inc.
MDAS
Flotek Industries
FTK
Ftnt.
Code
adj
op
op
cs
adj
adj
op/cs
op
op/cf
op
pf
pf/cs
op
adj
op
cf
op
adj
op/cf
adj
pf
pf
adj
pf
op/cf
adj
adj
pf
op
adj
adj
Rating/
FYE Volatility
Jan
Dec
Dec
Dec
Dec
Mar
Mar
Dec
Sep
Oct
Dec
Dec
Dec
Jun
Dec
Aug
Dec
Dec
Dec
Dec
Dec
Jan
Dec
Jun
Dec
Dec
Dec
Dec
Mar
Dec
Apr
Dec
Dec
Jan
Dec
Dec
E/V
O/V
O
O
E
O/V
O/V
O/V
O/V
O/V
O/V
E
O
O
O/V
O
E/V
O/V
O
E
O
O/V
O
E
O/V
O/V
O/V
E
E/V
O/V
U
E
E/V
E
E
O
19-Nov
Price
$12.87
$55.26
$47.70
$33.27
$66.69
$18.44
$34.62
$20.80
$28.12
$18.85
$37.95
$37.88
$36.72
$67.95
$14.43
$25.17
$41.61
$57.43
$53.07
$36.80
$34.15
$19.82
$15.58
$34.15
$19.27
$50.14
$25.69
$11.70
$54.07
$2.88
$51.57
$45.90
$37.29
$32.52
$19.40
$21.61
Price
Target
$14.00
$65.00
$55.00
$43.00
$66.00
$31.00
$40.00
$25.00
$33.00
$23.00
$62.00
$40.00
$42.00
$78.00
$16.00
$28.00
$40.00
$65.00
$58.00
$42.00
$50.00
$23.00
$23.00
$33.00
$24.00
$55.00
$34.00
$11.00
$49.00
$5.50
$40.00
$36.00
$39.00
$37.00
$18.00
$38.00
Shares
Out.
Mil.
114.9
26.8
30.5
43.0
21.4
77.0
40.5
67.9
49.4
73.5
35.9
35.6
36.8
19.8
92.3
54.1
32.0
23.1
24.7
35.4
37.6
64.2
79.3
32.4
64.4
24.6
47.6
104.4
22.5
428.5
23.6
28.1
32.0
37.0
60.1
53.9
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.99
$0.85
$1.77
$1.52
$4.20
$0.97
$0.50
$0.82
$1.44
($0.01)
$6.31
$1.72
$1.92
$3.13
NA
$0.84
$1.73
$1.99
$1.69
$3.25
$1.26
$0.61
$2.45
$1.27
($0.64)
$0.55
$1.05
$0.53
$0.63
$1.31
$1.41
$0.78
$0.22
$2.58
$1.32
$0.67
Member NYSE, SPIC
$0.27
$1.35
$2.04
$1.42
$4.75
$0.73
$0.69
$0.85
$1.18
$0.15
$7.11
$2.01
$1.69
$3.53
$0.46
$0.99
$1.24
$2.17
$1.95
$2.92
$3.90
$0.72
$2.56
$1.42
$0.24
$1.16
$1.40
$0.67
$0.98
$1.23
$1.95
$0.96
$0.60
$2.87
$1.36
$0.91
$0.34
$1.58
$2.50
$1.75
$5.70
$1.01
$0.83
$1.01
$1.65
$0.51
$10.84
$2.22
$1.85
$3.70
$0.40
NE
$1.55
$2.90
$2.75
$3.93
$4.05
$0.86
$2.67
$1.56
$0.62
$1.32
$1.60
$0.83
$1.22
$0.86
$2.30
$1.30
$1.08
$3.25
$1.46
$1.26
P/E
Ratio
FY1E
47.7
40.9
23.4
23.4
14.0
25.3
50.2
24.5
23.8
NM
5.3
18.8
21.7
19.2
31.4
25.4
33.6
26.5
27.2
12.6
8.8
27.5
6.1
24.0
80.3
43.2
18.4
17.5
55.2
2.3
26.4
47.8
62.2
11.3
14.3
23.7
P/E
Ratio
FY2E
37.9
35.0
19.1
19.0
11.7
18.3
41.7
20.6
17.0
37.0
3.5
17.1
19.8
18.4
36.1
NM
26.8
19.8
19.3
9.4
8.4
23.0
5.8
21.9
31.1
38.0
16.1
14.1
44.3
3.3
22.4
35.3
34.5
10.0
13.3
17.2
Market
Cap
($ Mil)
$1,487.4
$1,480.0
$1,452.5
$1,432.0
$1,424.0
$1,419.7
$1,415.8
$1,411.7
$1,387.7
$1,386.1
$1,361.5
$1,350.8
$1,349.5
$1,347.4
$1,341.2
$1,334.5
$1,331.8
$1,327.5
$1,313.9
$1,300.9
$1,284.4
$1,276.6
$1,270.5
$1,266.1
$1,241.8
$1,222.6
$1,222.4
$1,221.9
$1,218.5
$1,216.6
$1,216.5
$1,197.2
$1,181.4
$1,179.0
$1,168.0
$1,165.6
BVPS
FY1E
% Sls
Grth
$4.24
$6.07
$14.71
$8.52
$22.69
$5.34
$4.22
$5.75
$16.09
$3.19
$26.32
$21.93
$16.04
$26.69
NA
$1.06
$3.35
$19.27
$14.14
$12.62
$20.57
$3.98
$13.90
$23.94
$2.93
$7.37
$15.70
$8.29
$8.77
$3.59
$15.86
$14.54
$11.15
$17.14
$7.86
$5.19
7.9
10.4
20.4
6.1
(1.4)
(6.0)
14.9
12.4
2.7
8.4
18.5
NA
5.0
7.0
5.0
3.6
13.1
7.6
11.4
11.0
4.9
8.0
50.3
13.0
6.9
32.7
8.0
20.6
23.0
27.2
3.8
9.3
23.6
24.4
5.5
28.7
Ftnt.
Code
Company
Tkr
Ellie Mae, Inc.
ELLI
adj
UTi Worldwide
UTIW
op
MTSI
adj
NIC Inc.
EGOV
adj
Omnicell, Inc.
OMCL
adj
HOS
adj
HIBB
Qualys, Inc.
QLYS
pf
The Children's Place
PLCE
adj
ATNI
pf
Imperva, Inc.
IMPV
pf
ArcBest Corp.
ARCB
op
Oxford Industries
OXM
adj
NXTM
Kaman Corp.
KAMN
pf
Sunoco LP
SUN
cf
RKUS
pf
RUSHA
AAWW op
CyrusOne, Inc.
CONE
VPFG
op
ADTRAN, Inc.
ADTN
pf
GHDX
pf
C&J Energy Services, Inc.
CJES
adj
EPAY
pf/cs
SAH
op
TUES
adj
QTS Realty Trust
QTS
RRGB
adj
SN
op/cf
Magnum Hunter Resoures
MHR
FARO
LDR Holding Corp.
LDRH
DXP Enterprises
DXPE
Renasant Corp.
RNST
op
ACTG
pf
Rating/
FYE Volatility
Dec
Jan
Sep
Dec
Dec
Dec
Jan
Dec
Jan
Dec
Dec
Dec
Jan
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jun
Dec
Jun
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
E/V
O/V
O/V
O
O
E
O
E/V
E/V
E
O/V
O
O/V
O
E
O
O/V
E
E/V
O
O
E/V
E/V
E
E/V
E
E/V
E
O
O/V
E/V
O/V
O/V
O/V
O
U/V
19-Nov
Price
$40.54
$10.88
$23.99
$17.40
$31.87
$30.92
$44.58
$33.30
$51.37
$69.50
$40.91
$41.68
$65.88
$17.44
$39.83
$45.53
$12.44
$35.07
$42.15
$26.80
$25.81
$18.89
$31.86
$18.24
$25.02
$24.91
$21.75
$32.47
$66.42
$15.88
$4.61
$53.07
$35.13
$63.26
$28.73
$18.05
Price
Target
$31.00
$15.00
$27.00
$21.00
$36.00
$38.00
$54.00
$31.00
$57.00
$61.00
$42.00
$50.00
$82.00
$20.00
$42.00
$60.00
$18.00
$36.00
$44.00
$30.00
$30.00
$22.00
$29.00
$25.00
$28.00
$26.00
$23.00
$32.00
$75.00
$41.00
$6.00
$65.00
$40.00
$85.00
$33.00
$12.00
Shares
Out.
Mil.
28.3
105.4
47.5
65.3
35.9
36.3
25.6
33.0
21.6
15.9
26.5
26.0
16.5
61.8
27.9
26.0
96.3
29.8
24.8
38.7
40.0
54.7
31.5
55.4
39.8
40.6
43.7
28.9
14.8
58.6
199.9
17.3
26.1
14.5
31.5
49.8
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$0.99
($0.02)
$1.24
$0.60
$1.08
$2.70
$2.70
$0.20
$3.26
$0.31
($0.12)
$0.51
$2.81
($0.31)
$2.16
$2.18
$0.22
$1.38
$3.78
($0.27)
$0.85
$0.95
($0.42)
$1.22
$1.29
$2.05
$0.01
$0.10
$2.37
$5.31
$0.31
$1.25
($1.19)
$3.87
$1.37
$0.48
Member NYSE, SPIC
$0.90
($0.09)
$1.55
$0.66
$1.23
$2.45
$2.68
$0.40
$3.01
$2.88
($0.75)
$1.62
$3.08
($0.43)
$2.28
$2.78
$0.44
$1.91
$3.52
($0.08)
$0.96
$0.87
($0.82)
$1.36
$1.43
$1.86
$0.35
$0.47
$2.67
$7.57
$0.44
$1.66
($0.57)
$3.95
$1.88
$0.34
$0.87
$0.30
NE
$0.73
$1.42
$3.00
$3.18
$0.50
$3.68
$3.13
($0.65)
$2.55
$3.58
($0.25)
$2.68
$4.24
$0.56
$2.20
$3.45
($0.22)
$1.61
$1.08
($0.46)
$2.16
$1.52
$2.02
$0.81
$0.27
$3.10
$8.33
$0.65
$2.04
($0.43)
$4.64
$2.12
$0.81
P/E
Ratio
FY1E
45.0
NM
15.5
26.4
25.9
12.6
16.6
83.3
17.1
24.1
NM
25.7
21.4
NM
17.5
16.4
28.3
18.4
12.0
NM
26.9
21.7
NM
13.4
17.5
13.4
62.1
69.1
24.9
2.1
10.5
32.0
NM
16.0
15.3
53.1
P/E
Ratio
FY2E
46.6
36.3
NM
23.8
22.4
10.3
14.0
66.6
14.0
22.2
NM
16.3
18.4
NM
14.9
10.7
22.2
15.9
12.2
NM
16.0
17.5
NM
8.4
16.5
12.3
26.9
120.3
21.4
1.9
7.1
26.0
NM
13.6
13.6
22.3
Market
Cap
($ Mil)
$1,165.3
$1,147.3
$1,140.2
$1,136.2
$1,134.7
$1,123.4
$1,120.2
$1,109.6
$1,107.8
$1,106.4
$1,087.6
$1,085.1
$1,085.0
$1,081.0
$1,080.0
$1,048.9
$1,047.2
$1,046.9
$1,045.5
$1,035.9
$1,032.6
$1,026.1
$1,010.7
$1,009.3
$998.5
$975.1
$951.4
$941.3
$930.9
$930.5
$921.6
$916.8
$915.4
$915.1
$906.0
$904.7
BVPS
$7.98
$6.54
$4.51
$1.76
$10.53
$37.76
$12.51
$3.40
$21.57
$41.18
$3.65
$21.18
$16.55
$3.08
$19.96
$3.61
$2.87
$17.87
$55.32
$12.39
$14.10
$10.35
$4.47
$13.66
$9.50
$12.43
$4.66
$10.59
$25.53
$18.47
$0.90
$19.22
$4.28
$22.23
$21.83
$10.12
FY1E
% Sls
Grth
22.0
0.2
31.0
9.3
14.0
7.1
7.5
23.0
(0.2)
(34.0)
17.7
13.0
8.7
12.8
8.3
46.6
25.3
36.7
8.4
25.0
NA
(2.3)
6.2
27.8
10.1
4.7
7.0
20.1
11.8
127.7
34.6
14.5
23.2
21.0
NA
7.0
Ftnt.
Code
Company
Tkr
EXCO Resources
XCO
op/cf
UCBI
op
QSII
adj
Infoblox Inc.
BLOX
pf
Ensign Group, The
ENSG
adj
Team, Inc.
TISI
pf
PGEM
op
Endologix, Inc.
ELGX
pf
COR
AIMC
op
STC
op
CallidusCloud
CALD
pf
Luminex Corp.
LMNX
pf
WNC
op
Denny's Corp.
DENN
adj
Repligen Corp.
RGEN
pf
NBHC
op
WRLD
IBTX
op
Calavo Growers Inc.
CVGW
op
IPCM
MRTN
SFNC
op
Cincinnati Bell
CBB
pf
RPX Corp.
RPXC
pf
Hanger Inc.
HGR
op
CSU
cs
YRC Worldwide Inc.
YRCW
op
CPSI
CBPX
op
CalAmp Corp.
CAMP
pf
Zoe's Kitchen, Inc.
ZOES
adj
MMSI
pf
ECHO
op
STBZ
op
The Pantry, Inc.
PTRY
adj
Rating/
FYE Volatility
Dec
Dec
Mar
Jul
Dec
May
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Mar
Dec
Oct
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Feb
Dec
Dec
Dec
Dec
Sep
E/V
E
E
E/V
O/V
O/V
O/V
O/V
E
O/V
O/V
O/V
E/V
E
O/V
O/V
E
E
E
E
E/V
O
O
E
O/V
E/V
O/V
U/V
E
E/V
O/V
E/V
E
O
O
E/V
19-Nov
Price
$3.29
$17.81
$14.80
$15.86
$38.60
$41.30
$12.34
$12.19
$37.36
$30.10
$34.56
$15.93
$18.07
$11.04
$8.95
$23.07
$19.21
$78.37
$43.02
$42.02
$42.18
$21.67
$40.09
$3.41
$13.14
$20.01
$24.20
$22.09
$59.80
$15.16
$17.75
$33.14
$14.65
$26.47
$19.09
$25.93
Price
Target
$3.00
$18.00
$16.00
$18.00
$48.00
$48.00
$15.00
$14.00
$40.00
$37.00
$38.00
$20.00
$22.00
$12.00
$10.00
$25.00
$20.00
NE
$48.00
$40.00
$44.00
$25.00
$44.00
$3.75
$18.00
$24.00
$30.00
NE
$59.00
$19.00
$25.00
$29.00
$14.00
$31.00
$21.00
$20.00
Shares
Out.
Mil.
273.8
50.1
60.2
55.7
22.5
21.3
67.9
67.0
21.7
26.7
21.4
48.1
42.8
69.0
84.7
32.7
39.2
9.6
16.4
15.8
17.2
33.4
17.9
209.1
55.0
35.2
29.1
47.8
11.2
44.1
36.2
19.3
43.2
23.8
32.2
23.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
$1.55
($0.09)
$0.70
$0.34
$2.53
$1.48
($0.47)
($0.09)
$0.49
$1.64
$2.39
$0.08
$0.40
$0.69
$0.29
$0.11
$0.18
$9.17
$1.83
$1.24
$2.19
$0.90
$1.68
$0.03
$0.98
$1.95
$1.53
($7.38)
$2.95
$0.83
$0.77
($0.09)
$0.73
$0.61
$0.37
($0.02)
Member NYSE, SPIC
$1.18
$1.09
$1.10
$1.27
$0.56
$0.72
$0.26
$0.36
$2.21
$2.48
$2.00
$2.40
($0.09) $0.67
($0.38) ($0.24)
$0.60
$0.85
$1.80
$2.14
$1.04
$2.83
$0.15
$0.18
$0.52
$0.56
$0.78
$0.90
$0.38
$0.40
$0.23
$0.36
$0.17
$0.53
$10.42 $11.77
$2.16
$2.52
$1.65
$1.90
$2.28
$2.49
$0.86
$1.05
$2.29
$3.13
($0.14) $0.02
$0.96
$0.92
$1.62
$1.86
$1.41
$1.55
($3.25) ($2.64)
$3.20
$3.29
$0.53
$0.93
$0.92
$1.28
$0.05
$0.10
$0.73
$0.74
$0.70
$1.00
$0.97
$1.21
$0.43
$0.54
P/E
Ratio
FY1E
2.8
16.2
26.4
61.0
17.5
20.7
NM
NM
62.3
16.7
33.2
NM
34.8
14.2
23.6
NM
NM
7.5
19.9
25.5
18.5
25.2
17.5
NM
13.7
12.4
17.2
NM
18.7
28.6
19.3
NM
20.1
37.8
19.7
60.3
P/E
Ratio
FY2E
3.0
14.0
20.6
44.1
15.6
17.2
18.4
NM
44.0
14.1
12.2
88.5
32.3
12.3
22.4
64.1
36.2
6.7
17.1
22.1
16.9
20.6
12.8
NM
14.3
10.8
15.6
NM
18.2
16.3
13.9
NM
19.8
26.5
15.8
48.0
Market
Cap
($ Mil)
$900.7
$893.6
$892.0
$883.7
$867.7
$849.7
$837.2
$816.6
$811.1
$801.7
$796.8
$774.7
$774.0
$761.6
$758.3
$754.9
$747.7
$741.5
$732.1
$726.7
$726.4
$723.9
$722.5
$713.5
$708.8
$706.2
$704.1
$690.5
$670.3
$668.1
$642.1
$638.6
$635.9
$628.6
$616.1
$607.9
BVPS
FY1E
% Sls
Grth
$1.56
$12.22
$4.82
$4.16
$10.32
$15.21
($1.08)
$2.16
$9.85
$10.04
$29.96
$1.23
$6.86
$5.07
$0.03
$3.54
$20.26
$29.58
$28.54
$9.95
$20.67
$11.36
$25.36
($3.28)
$8.46
$16.25
$5.08
($3.96)
$6.69
$6.45
$3.83
$6.33
$9.62
$7.57
$13.95
$13.19
(23.9)
NA
7.8
8.4
12.8
12.2
12.4
10.6
15.1
14.3
(6.7)
19.8
5.7
11.0
1.2
23.8
NA
2.1
NA
12.1
14.1
2.3
NA
0.0
9.0
1.9
9.2
6.6
2.5
6.3
6.8
46.4
13.9
32.3
NA
(2.9)
Company
Tkr
Matrix Service Co.
MTRX
Harmonic Inc.
HLIT
Fred's Inc.
FRED
BLDR
Calix Inc.
CALX
Healthways Inc.
HWAY
SSE
Del Frisco's Restaurant Group
DFRG
Celadon Group, Inc.
CGI
Tree.com
TREE
ATSG
MARKET CAP < $500 MILLION
Premiere Global Services
Materialise NV
ShoreTel, Inc.
Mistras Group, Inc.
Movado Group
Parker Drilling
Basic Energy Services
Natural Grocers by Vitamin Cottage
Rex Energy Corp.
SciQuest, Inc.
Blue Nile
BioScrip, Inc.
PGI
MTLS
OSUR
SHOR
MG
MOV
PKD
USPH
BAS
SNOW
PES
NGVC
MCEP
GLDD
PGN
AXAS
AREX
GDP
REXX
SQI
NILE
BIOS
STCK
Ftnt.
Code
pf
pf
adj
op
pf
adj
adj
op
adj
pf
€
pf
pf
pf
adj
adj
cs
adj
adj
op
cf
op
adj
op/cf
op/cf
op/cf
op/cf
pf
adj
adj
op
Rating/
FYE Volatility
19-Nov
Price
Price
Target
Shares
Out.
Mil.
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
P/E
Ratio
FY1E
P/E
Ratio
FY2E
Market
Cap
($ Mil)
BVPS
FY1E
% Sls
Grth
Jun
Dec
Jan
Dec
Dec
Dec
Dec
Dec
Jun
Dec
Dec
O/V
E/V
O/V
O/V
O/V
U
O/V
O
E
O/V
E
$22.24
$6.64
$15.79
$5.78
$10.71
$15.26
$10.44
$22.13
$21.77
$45.30
$7.88
$29.00
$7.00
$19.00
$7.00
$15.00
$12.00
$24.00
$32.00
$23.00
$50.00
$10.00
27.1
89.7
36.9
98.1
51.6
35.3
50.9
23.7
23.7
11.3
64.9
$1.51
$0.17
$0.77
$0.06
$0.39
($0.25)
$0.68
$0.87
$0.91
$1.32
$0.51
$1.48
$0.13
($0.01)
$0.17
$0.28
($0.06)
$1.04
$0.92
$1.25
$1.48
$0.54
$1.94
$0.29
$0.70
$0.41
$0.45
($0.36)
$1.46
$1.10
$1.50
$1.74
$0.60
15.0
51.1
NM
34.0
38.3
NM
10.0
24.1
17.4
30.6
14.6
11.5
22.9
22.6
14.1
23.8
NM
7.2
20.1
14.5
26.0
13.1
$590.1
$584.7
$582.4
$567.3
$547.5
$540.1
$531.1
$518.2
$514.8
$513.1
$511.7
$10.61
$4.38
$12.40
$0.36
$5.29
$8.43
$5.70
$8.72
$10.99
$6.93
$6.08
15.1
(7.7)
(1.0)
8.1
4.2
12.9
15.8
12.9
10.9
19.0
2.0
Dec
Dec
Dec
Jun
May
Jan
Dec
Dec
Dec
Jun
Dec
Sep
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
O
E/V
E/V
O
O/V
E/V
E/V
O/V
O/V
O/V
O/V
E/V
E
E/V
E/V
O/V
E/V
O/V
O/V
E/V
E/V
O/V
O/V
$10.58
$10.41
$8.67
$7.62
$16.79
$25.26
$3.85
$37.90
$10.73
$10.24
$7.00
$19.28
$14.86
$7.15
$5.00
$3.99
$10.62
$9.34
$7.66
$14.81
$34.00
$5.80
$15.20
$14.00
$12.00
$9.00
$12.00
$24.00
$28.00
$6.50
$46.00
$26.00
$15.00
$15.00
$23.00
$21.00
$8.00
$6.50
$7.00
$14.00
$16.00
$14.00
$13.00
$36.00
$10.00
$17.00
47.1
47.1
56.0
63.2
28.6
18.7
122.0
12.2
43.2
45.1
63.8
22.5
24.6
60.1
84.8
108.5
39.6
44.4
54.1
27.5
11.8
68.6
26.2
$0.80
$0.37
($0.29)
$0.24
$0.70
$2.07
$0.41
$1.44
($0.68)
($4.37)
($0.02)
$0.48
$2.49
$0.33
$2.23
$0.43
$2.92
$2.21
$2.11
$0.38
$0.85
($0.07)
$0.27
$0.87
$0.05
($0.11)
$0.17
$0.76
$1.83
$0.28
$1.70
$0.53
($0.29)
$0.36
$0.58
$2.04
$0.19
$2.86
$0.89
$4.56
$2.01
$2.68
$0.30
$0.83
($0.93)
$0.46
$0.93
$0.05
$0.06
$0.26
$1.14
$1.96
$0.26
$1.94
$1.30
$0.17
$0.51
$0.63
$2.42
$0.72
$1.60
$1.24
$4.65
$2.45
$2.65
$0.30
$0.96
$0.02
$0.78
12.2
NM
NM
44.8
22.1
13.8
13.8
22.3
20.2
NM
19.4
33.2
7.3
37.6
1.7
4.5
2.3
4.6
2.9
49.4
41.0
NM
33.0
11.4
NM
NM
29.3
14.7
12.9
14.8
19.5
8.3
60.2
13.7
30.6
6.1
9.9
3.1
3.2
2.3
3.8
2.9
49.4
35.4
NM
19.5
$498.1
$490.0
$486.0
$481.8
$480.5
$471.9
$469.8
$465.0
$463.4
$461.3
$446.6
$433.4
$433.0
$430.0
$423.8
$420.5
$420.1
$415.0
$414.5
$407.6
$402.8
$398.1
$397.9
$5.72
NA
$2.86
$2.85
$8.51
$18.73
$5.27
$11.18
$8.11
$7.58
$8.24
$4.10
$3.46
$3.93
$5.60
$1.43
$18.31
$6.70
$11.04
$6.53
$0.73
$4.59
$5.02
8.1
15.1
7.0
4.8
16.7
2.1
0.6
11.8
35.7
15.2
9.7
20.4
(1.8)
9.6
(11.0)
108.9
49.5
8.2
51.9
10.4
5.8
16.4
9.2
Member NYSE, SPIC
Company
FreightCar America
America's Car-Mart, Inc.
Chuy's Holdings, Inc.
Key Energy Services
STAAR Surgical Co.
Imprivata, Inc.
JP Energy Partners
Orion Marine Group
Norcraft Companies
Stoneridge Inc.
The ExOne Company
Titan Machinery
RTI Surgical, Inc.
TriState Capital Holdings
Neogenomics Inc.
Bel Fuse
Furmanite Corp.
Aeropostale, Inc.
Tkr
RAIL
CRMT
CHUY
KEG
TA
OKSB
STAA
QLTY
CPE
WPT
IMPR
RYI
JPEP
ORN
NCFT
SRI
XONE
TITN
CVTI
RTIX
TSC
HCOM
NEO
TAST
PQ
NSLP
BELFB
VCRA
RALY
BBRG
HERO
ADUS
FRM
ARO
HIVE
BKEP
Ftnt.
Code
op
adj
adj
adj
op
pf
op
op/cf
cf
pf
op/cf
op
op
op
adj
op
pf
adj
op/cf
op/cf
pf
adj
pf
adj
adj
pf
adj
pf
op/cf
Rating/
FYE Volatility
Dec
Apr
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Jan
Dec
Dec
Dec
Dec
Jan
Dec
Dec
E
E
O
E
O/V
O
O/V
O
O/V
O
O
E/V
O
O/V
O
O
E/V
E/V
O
E/V
E
E
O/V
O
O/V
E
O/V
E
O/V
E
O/V
O
O/V
E/V
O/V
O
19-Nov
Price
$31.39
$44.00
$21.24
$2.24
$9.08
$17.28
$8.62
$11.84
$5.89
$19.07
$13.49
$9.99
$17.19
$11.36
$17.97
$11.00
$21.47
$14.04
$23.42
$4.94
$9.76
$26.08
$4.56
$7.69
$4.04
$16.02
$26.43
$9.75
$9.75
$12.94
$1.50
$21.66
$6.29
$2.99
$5.04
$7.05
Price
Target
$32.00
$45.50
$34.00
$4.50
$13.00
$20.00
$14.00
$16.00
$14.00
$23.00
$20.00
$11.00
$22.00
$14.00
$23.00
$14.00
$22.00
$14.00
$24.00
$5.50
$11.00
$31.00
$7.00
$9.00
$6.50
$27.00
$30.00
$12.00
$15.00
$15.00
$4.00
$32.00
$8.00
$3.50
$8.00
$9.50
Shares
Out.
Mil.
12.1
8.5
16.8
153.5
37.7
19.8
38.6
28.1
54.8
33.3
23.8
32.0
38.5
27.5
17.3
28.2
14.4
21.4
12.6
56.8
28.7
10.7
57.0
44.7
66.0
13.5
9.7
25.4
24.9
19.0
160.8
11.0
37.9
78.6
45.7
31.4
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
($0.98)
$2.77
$0.69
($0.05)
$0.84
$0.88
$0.19
$0.67
$1.41
$0.68
NA
($0.59)
$0.47
$0.01
($0.12)
$0.56
($0.45)
$0.78
$0.35
($0.34)
$0.48
$1.08
$0.04
($0.53)
$1.42
$2.01
$1.56
($0.05)
($0.62)
$0.80
$0.24
$0.99
$0.37
($1.13)
($3.87)
$0.42
Member NYSE, SPIC
$0.55
$2.93
$0.67
($0.46)
$0.73
$0.80
$0.04
$0.77
$2.08
$1.55
($1.18)
$1.62
$1.60
$0.16
$0.85
$0.40
($1.04)
$0.38
$0.95
$0.03
$0.54
$1.00
$0.01
($0.43)
$1.97
$2.57
$2.00
($0.61)
($1.25)
$0.60
$0.00
$1.07
$0.31
($1.96)
($0.46)
$0.61
$2.40
$3.26
$0.78
$0.00
$0.87
$0.89
$0.14
$0.90
$2.45
$1.59
($0.28)
$2.12
$1.88
$0.45
$1.28
$0.80
($0.35)
$0.90
$1.15
$0.20
$0.79
$0.87
$0.07
($0.21)
$2.01
$2.91
$3.00
($0.29)
($0.99)
$0.70
$0.00
$1.24
$0.42
($1.12)
($0.28)
$0.70
P/E
Ratio
FY1E
57.1
15.0
31.7
NM
12.4
21.6
NM
15.4
2.8
12.3
NM
6.2
10.7
71.0
21.1
27.5
NM
36.9
24.7
NM
18.1
26.1
NM
NM
2.1
6.2
13.2
NM
NM
21.6
NM
20.2
20.3
NM
NM
11.6
P/E
Ratio
FY2E
13.1
13.5
27.2
NM
10.4
19.4
61.6
13.2
2.4
12.0
NM
4.7
9.1
25.2
14.0
13.8
NM
15.6
20.4
24.7
12.4
30.0
65.1
NM
2.0
5.5
8.8
NM
NM
18.5
NM
17.5
15.0
NM
NM
10.1
Market
Cap
($ Mil)
$378.8
$375.7
$349.2
$343.8
$342.0
$336.2
$333.2
$332.2
$325.3
$320.9
$320.6
$320.1
$313.1
$312.6
$311.1
$310.4
$310.1
$300.6
$295.9
$281.1
$280.2
$278.4
$273.5
$270.9
$266.7
$258.9
$256.5
$249.1
$245.7
$241.4
$241.2
$238.0
$237.0
$236.5
$231.4
$231.0
BVPS
FY1E
% Sls
Grth
$16.33
$25.12
$6.81
$7.31
$12.47
$13.90
$1.09
($1.27)
$6.93
$5.23
$2.94
($5.30)
$18.32
$8.40
$2.66
$4.48
$8.91
$18.78
$6.89
$2.95
$10.48
$30.09
$1.04
$3.91
$1.87
$11.04
$19.94
$4.67
$2.89
$5.53
$4.77
$10.88
$3.75
$1.94
$1.45
($6.90)
101.5
4.1
18.5
(43.1)
0.9
NA
10.5
6.8
79.0
10.1
33.2
4.9
149.0
8.7
9.1
(22.8)
21.3
(8.5)
1.7
32.0
NA
(0.7)
27.8
5.6
40.3
NM
40.5
(8.2)
18.7
(0.9)
(12.1)
18.2
25.3
(11.7)
28.0
21.8
Company
Voxeljet AG
USA Truck, Inc.
QuinStreet, Inc.
E2open, Inc.
hhgregg, Inc.
Regional Management
Papa Murphy's Holdings
Veracyte, Inc.
Marchex, Inc.
TearLab Corp.
ANADIGICS, Inc.
Tkr
VJET
MSL
USAK
QNST
EOPN
CPSS
HGG
SKH
RM
FRSH
VCYT
VBTX
MCHX
SURG
TEAR
FPI
ANAD
Ftnt.
Code
Rating/
FYE Volatility
€/adj
op
Dec
Dec
Dec
Jun
Feb
Dec
Mar
Dec
Dec
Dec
Dec
Dec
Dec
Jul
Dec
Dec
Dec
adj
pf
adj
op
adj
adj/cs
adj
op
csh
pf
op
pf
E/V
O
E
E/V
E/V
O/V
E
O/V
E
O
O/V
O
O/V
O/V
O/V
O
E/V
19-Nov
Price
$12.03
$18.50
$18.29
$4.30
$6.31
$6.98
$6.09
$6.90
$12.42
$9.20
$6.54
$15.45
$3.70
$3.55
$2.45
$10.36
$0.77
Price
Target
$13.00
$22.00
$17.00
$4.50
$11.00
$9.00
$5.00
$9.00
$14.00
$13.00
$14.00
$17.00
$6.00
$7.00
$5.00
$16.00
$2.00
Shares
Out.
Mil.
18.6
11.3
10.5
44.4
29.2
25.3
28.4
24.6
12.7
16.9
21.5
9.1
37.6
25.4
33.6
7.7
85.8
ANNUAL
EARNINGS PER SHARE
LFYA
FY1E
FY2E
($0.17)
$1.08
($0.44)
$0.23
($0.53)
$0.57
$0.09
$0.32
$2.40
($0.05)
($6.15)
$0.57
$0.17
$0.12
($0.58)
$0.12
($0.56)
Member NYSE, SPIC
($0.24)
$1.46
$0.43
$0.11
($0.61)
$0.92
($0.88)
$0.40
$1.22
$0.43
($1.38)
$0.70
$0.17
$0.15
($0.69)
$0.09
($0.33)
($0.08)
$1.54
$0.65
$0.26
($0.34)
$1.10
($0.36)
$0.55
$1.71
$0.52
($1.11)
$0.75
$0.20
NE
($0.54)
$0.46
($0.12)
P/E
Ratio
FY1E
NM
12.7
42.5
39.1
NM
7.6
NM
17.3
10.2
21.4
NM
22.1
21.8
23.7
NM
NM
NM
P/E
Ratio
FY2E
NM
12.0
28.1
16.5
NM
6.3
NM
12.5
7.3
17.7
NM
20.6
18.5
NM
NM
22.5
NM
Market
Cap
($ Mil)
$223.8
$209.8
$192.6
$190.9
$184.3
$177.1
$172.9
$169.9
$158.3
$155.9
$147.2
$146.2
$139.2
$90.0
$82.3
$80.1
$67.0
BVPS
FY1E
% Sls
Grth
$23.59
$14.25
$9.59
$3.30
$1.88
$4.89
$10.47
$2.31
$13.53
$1.58
$2.10
$11.52
$4.12
$2.48
$1.04
NA
$0.55
35.0
NA
9.8
(1.8)
14.6
17.0
(0.8)
(1.0)
20.4
18.9
73.1
NA
17.2
3.2
36.3
92.3
(35.8)
MLP COMPANY RISKS
APL Company Risks
Risks to Achievement of Our Price Target of APL
While Atlas Pipeline has the financial strength to grow its asset base, an inability to provide investors with future growth prospects could cause units to
decline in value, which could pose a risk to our price target.
Permitting and drilling activity in Atlas’ areas of operation remains robust. Plays such as the Permian and Eagle Ford show higher rig counts and permitting
levels that should eclipse 2012 levels. However, if drilling or permitting were to slow in Atlas’ areas of future growth, units could suffer, which could pose a
risk to our price target.
Over the last 6 months, Atlas has made two significant acquisitions and an inability to seamlessly implement the acquired assets into Atlas’ asset base could
pose a risk to our price target.
As with other MLPs, Atlas Pipeline faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either of
these fronts would pressure Atlas Pipeline units and pose a risk to our price target.
While we understand that interest rates will go higher eventually, the most recent tone from the Federal Reserve is that rates will remain low for some
time. However, a sudden increase in interest rates could pose a risk to our Atlas Pipeline price target.
Investors should also review company risks as disclosed in documents submitted to the SEC, found at SEC.gov.
Risks as Filed in APL’s SEC Documents
Economic conditions and instability in the financial markets could negatively impact APL’s business. APL is affected by the volatility of prices for natural gas,
NGL and crude oil products.
APL’s commodity price risk management strategies may fail to protect them and could reduce gross margin and cash flow.
Regulations promulgated by the Commodities Futures Trading Commission could have an adverse effect on APL’s ability to use derivative instruments to
reduce the effect of commodity price, interest rate and other risks associated with APL’s business. APL is exposed to the credit risks of key customers, and
any material nonpayment or nonperformance by key customers could negatively impact APL’s business.
Due to APL’s lack of asset diversification, negative developments in operations could reduce the ability to fund APL’s operations, pay required debt service
and make distributions to APL’s common unitholders.
The amount of natural gas APL gathers will decline over time unless they able to attract new wells to connect to APL’s gathering systems.
Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in reduced volumes available for APL to gather and
process.
APL currently depends on certain key producers for their supply of natural gas; the loss of any of these key producers could reduce APL’s revenues. APL
may face increased competition in the future.
The amount of natural gas APL gathers or processes may be reduced if the intrastate and interstate pipelines to which APL delivers natural gas or NGLs
cannot or will not accept the gas.
Failure of the natural gas or NGLs APL delivers to meet the specifications of interconnecting pipelines could result in curtailments by the pipelines. The
success of APL’s operations depends upon the ability to continually find and contract for new sources of natural gas supply.
If APL is unable to obtain new rights-of-way or the cost of renewing existing rights-of-way increases, APL’s cash flow could be reduced. The scope and
costs of the risks involved in making acquisitions may prove greater than estimated at the time of the acquisition.
Member NYSE, SPIC
MLP COMPANY RISKS
APL may be unsuccessful in integrating the operations from the Cardinal Acquisition, or any future acquisitions, with APL’s operations and in realizing all
the anticipated benefits of these acquisitions.
APL’s construction of new assets may not result in revenue increases and is subject to regulatory, environmental, political, legal and economic risks, which
could impair the results of operations and financial condition. APL may not be able to execute its growth strategy successfully.
Limitations on APL’s access to capital or the market for its common units could impair the ability to execute its growth strategy.
APL’s debt levels and restrictions in the revolving credit facility and the indentures governing APL’s senior notes could limit its ability to fund operations
and pay required debt service.
Increases in interest rates could adversely affect APL’s unit price.
Regulation of APL’s gathering operations could increase operating costs; decrease revenue; or both.
Compliance with pipeline integrity regulations issued by the DOT and state agencies could result in substantial expenditures for testing, repairs and
replacement.
APL’s midstream natural gas operations could incur significant costs if PHMSA adopts more stringent regulations governing the business.
APL’s midstream natural gas operations may incur significant costs and liabilities resulting from a failure to comply with new or existing environmental
regulations or a release of regulated materials into the environment by APL or the producers in its service areas.
Climate change legislation or regulations restricting emissions of greenhouse gases (“GHGs”) could result in increased operating costs and reduced
demand for APL’s midstream services. Litigation or governmental regulation relating to environmental protection and operational safety may result in
substantial costs and liabilities.
APL is subject to operating and litigation risks that may not be covered by insurance. The loss of key personnel could adversely affect AP’s ability to
operate.
Catastrophic weather events may curtail operations at, or cause closure of, any of APL’s processing plants, which could harm its business.
The threat of terrorist attacks has resulted in increased costs, and future war or risk of war may adversely impact APL’s results of operations and ability to
raise capital.
Member NYSE, SPIC
MLP COMPANY RISKS
ARP Company Risks
Risks to Achievement of Our Price Target of ARP
Atlas Resource Partners generates a meaningful amount of its revenues from its fundraising activities, which provides stable cash flow to unitholders. A
decrease in fundraising activities would negatively impact Atlas Resource Partners units, which could pose a risk to our price target.
Atlas Resource Partners has made multiple acquisitions over the last 12 months, and an inability to seamlessly implement the acquired assets into its
asset base could pose a risk to our price target.
A small portion of Atlas Resource Partners’ production from its investment partnerships qualifies as carried interest. New laws affecting the taxation of
carried interest could negatively impact Atlas Resource Partners, which could pose a risk to our price target.
As with other MLPs, Atlas Resource Partners faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on
either of these fronts would pressure Atlas Resource Partners units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Atlas Resource Partners price target.
Risks as Filed in ARP’s SEC Documents.
If commodity prices decline significantly, ARP’s cash flow from operations will decline.
Competition in the natural gas and oil industry is intense, which may hinder ARP’s ability to acquire natural gas and oil properties and companies, and to
obtain capital, contract for drilling equipment and secure trained personnel. Shortages of drilling rigs, equipment and crews, or the costs required to
obtain the foregoing in a highly competitive environment, could impair ARP’s operations and results.
Many of ARP’s leases are in areas that have been partially depleted or drained by offset wells.
ARP’s operations require substantial capital expenditures to increase asset base. If ARP is unable to obtain needed capital or financing on satisfactory
terms, its asset base will decline, which could cause revenues to decline and affect ARP’s ability to pay distributions.
ARP’s cash distribution policy limits the ability to grow.
Significant physical effects of climatic change have the potential to damage ARP’s facilities, disrupt production activities and cause ARP to incur significant
costs in preparing for or responding to those effects.
ARP depends on certain key customers for sales of its natural gas, crude oil and natural gas liquids. To the extent these customers reduce the volumes of
natural gas, crude oil and natural gas liquids they purchase from ARP, or cease to purchase natural gas, crude oil and natural gas liquids from ARP,
revenues and cash available for distribution could decline.
An increase in the differential between the NYMEX or other benchmark prices of oil and natural gas and the wellhead price that ARP receives for
production could significantly reduce cash available for distribution and adversely affect ARP’s financial condition.
Some of ARP’s undeveloped leasehold acreage is subject to leases that may expire in the near future. Drilling for and producing natural gas are high-risk
activities with many uncertainties.
Unless ARP replaces its oil and natural gas reserves, its reserves and production will decline, which would reduce ARP’s cash flow from operations and
income. A decrease in natural gas prices could subject ARP’s oil and gas properties to a non-cash impairment loss under U.S. generally accepted
accounting principles. Hedging transactions may limit ARP’s potential gains or cause it to lose money.
Member NYSE, SPIC
MLP COMPANY RISKS
Due to the accounting treatment of derivative contracts, increases in prices for natural gas, crude oil and NGLs could result in non-cash balance sheet
reductions and non-cash losses in ARP’s statement of operations.
Regulations promulgated by the Commodities Futures Trading Commission could have an adverse effect on ARP’s ability to use derivative instruments to
reduce the effect of commodity price, interest rate and other risks associated with its business. The scope and costs of the risks involved in making
acquisitions may prove greater than estimated at the time of the acquisition.
ARP may be unsuccessful in integrating the operations from any future acquisitions with its operations and in realizing all of the anticipated benefits of
these acquisitions.
Properties that ARP acquired in the separation from Atlas Energy or afterward may not produce as projected and ARP may be unable to determine reserve
potential, identify liabilities associated with the properties or obtain protection from sellers against such liabilities.
ARP’s 2012 acquisitions may prove to be worth less than it paid, or provide less than anticipated proved reserves, because of uncertainties in evaluating
recoverable reserves, well performance, and potential liabilities as well as uncertainties in forecasting oil and natural gas prices and future development,
production and marketing costs.
ARP may not identify all risks associated with the acquisition of oil and natural gas properties, or existing wells, and any indemnifications ARP receives
from sellers may be insufficient to protect them from such risks, which may result in unexpected liabilities and costs to ARP.
Ownership of ARP oil and gas production depends on good title to its property.
ARP’s drilling and production operations require adequate sources of water to facilitate the fracturing process and the disposal of that water. If ARP is
unable to dispose of the water they use or remove from the strata at a reasonable cost and within applicable environmental rules, ARP’s ability to produce
gas commercially and in commercial quantities could be impaired.
Impact fees and severance taxes could materially increase ARP’s liabilities.
Because ARP handles natural gas and oil, they may incur significant costs and liabilities in the future resulting from a failure to comply with new or
existing environmental regulations or an accidental release of substances into the environment. ARP is subject to comprehensive federal, state, local and
other laws and regulations that could increase the cost and alter the manner or feasibility of them doing business.
ARP may not be able to continue to raise funds through its investment partnerships at desired levels, which may in turn restrict our ability to maintain
drilling activity at recent levels. Changes in tax laws may impair ARP’s ability to obtain capital funds through investment partnerships.
Fee-based revenues may decline if ARP is unsuccessful in sponsoring new investment partnerships.
ARP’s revenues may decrease if investors in its investment partnerships do not receive a minimum return.
ARP or one of its subsidiaries may be exposed to financial and other liabilities as the managing general partner in investment partnerships. Covenants in
ARP’s credit facility restrict business in many ways.
Economic conditions and instability in the financial markets could negatively impact ARP’s business which, in turn, could impact the cash it has to make
distributions to unitholders.
ARP’s historical financial information may not be representative of the results they would have achieved as a stand-alone public company and may not be
a reliable indicator of future results.
Estimates of the reserves are based on many assumptions that may prove to be inaccurate. Any material inaccuracies in these reserve estimates or
underlying assumptions will materially affect the quantities and present value of ARP’s reserves.
Member NYSE, SPIC
MLP COMPANY RISKS
ATLS Company Risks
Risks to Achievement of Our Price Target of ATLS
Because Atlas Energy is the general partner of Atlas Pipeline and Atlas Resource Partners, its risks are the risks associated with Atlas Pipeline and Atlas
Resource Partners, which are provided above.
See company specific risks associated with our Atlas Pipeline price target above.
See company specific risks associated with our Atlas Resource Partners price target above.
Risks as Filed in ATLS’ SEC Documents.
If commodity prices decline significantly, ATLS’ cash flow from operations will decline. ATLS may not have sufficient cash to pay distributions.
ATLS may issue an unlimited number of limited partner interests without the consent of its unitholders, which will dilute existing limited partners’
ownership interest in ATLS and may increase the risk that they will not have sufficient available cash to make distributions.
ATLS’ ability to meet future financial needs may be adversely affected by its cash distribution policy. Covenants in ATLS’ credit facility restricts its business
in many ways.
Economic conditions and instability in the financial markets could negatively impact ATLS and its subsidiaries’ businesses which, in turn, could impact the
cash ATLS has to make distributions to unitholders.
Hedging transactions may limit ATLS’s potential gains or cause them to lose money.
Due to the accounting treatment of derivative contracts, increases in prices for natural gas, crude oil and NGLs could result in non-cash balance sheet
reductions and non-cash losses in ATLS’ statement of operations.
Regulations promulgated by the Commodities Futures Trading Commission could have an adverse effect on ATLS’ subsidiaries’ ability to use derivative
instruments to reduce the effect of commodity price, interest rate and other risks associated with their business.
The scope and costs of the risks involved in ATLS’ subsidiaries making acquisitions may prove greater than estimated at the time of the acquisition.
ATLS’ subsidiaries may be unsuccessful in integrating the operations from any future acquisitions with their operations and in realizing all of the
anticipated benefits of these acquisitions.
If ATLS fails to maintain an effective system of internal controls, they may not be able to accurately report the financial results or prevent fraud. As a
result, current and potential unitholders could lose confidence in ATLS’ financial reporting, which would harm its business and the trading price of its units.
Certain provisions of ATLS’ limited partnership agreement and Delaware law could deter acquisition proposals and make it difficult for a third party to
acquire control of them. This could have a negative effect on the price of ATLS’ common units. ARP and APL may issue additional units, which may
increase the risk of not having sufficient available cash to make distributions at prior per unit distribution levels.
Reduced incentive distributions from ARP or APL will disproportionately affect the amount of cash distributions to which ATLS is entitled.
ATLS, as the parent of ARP’s and APL’s general partner, may limit or modify the incentive distributions ATLS is entitled to receive from ARP and APL in
order to facilitate the growth strategy of ARP and APL. ATLS’ general partner’s board of directors can give this consent without a vote of its unitholders.
Member NYSE, SPIC
MLP COMPANY RISKS
ARP’s and APL’s common unitholders have the right to remove their general partner with the approval of the holders of 66 2/3% of all units, which would
cause ATLS to lose its general partner interest and incentive distribution rights in ARP and APL and the ability to manage them.
If ARP’s or APL’s general partner is not fully reimbursed or indemnified for obligations and liabilities it incurs in managing the business and affairs of ARP
or APL, their value, and therefore the value of ATLS’ common units, could decline.
If in the future ATLS ceases to manage and control ARP or APL
through the ownership of its general partner interests, they may be deemed to be an investment company.
Climate change legislation or regulations restricting emissions of greenhouse gases (“GHGs”) could result in increased operating costs and reduced
demand for ARP or APL’s services.
Member NYSE, SPIC
MLP COMPANY RISKS
BKEP Company Risks
Risks to Achievement of Our Price Target of BKEP
Blueknight is pursuing significant growth projects relative to the company's current size, which could pose execution risk.
Storage rates at Cushing could be further pressured with decreasing inventories, which could negatively impact Blueknight.
A significant move higher in interest rates could pose a risk to our price target.
Blueknight will rely on debt and equity markets to purse additional growth projects, and an inability to access the capital markets
could pose a risk to our price target.
Regulatory risks that could hinder Blueknight's daily operations or affect its tax-advantaged status could pose a risk to our price
target.
Risks as Filed in MCEP’s SEC Documents
BKEP may not have sufficient cash from operations following the establishment of cash reserves and payment of fees and expenses, including cost
reimbursements to the General Partner, to enable them to make cash distributions to holders of their units at the current distribution rate.
BKEP’s cash available for distributions to unitholders could be negatively impacted if they are unable to extend existing storage contracts or enter into new
storage contracts at the Cushing terminal.
BKEP depends on certain key customers for a portion of its revenues and are exposed to credit risks of these customers. The loss of or material nonpayment or
nonperformance by any of these key customers could adversely affect cash flow and results of operations.
BKEP is exposed to the credit risks of its third-party customers in the ordinary course of gathering activities. Any material nonpayment or nonperformance by
third-party customers could reduce BKEPs ability to make distributions to its unitholders.
The amount of cash BKEP has available for distribution to holders of its units depends primarily on BKEP’s cash flow and not solely on earnings reflected in its
financial statements. Consequently, even if BKEP is profitable and is otherwise able to pay distributions, they may not be able to make cash distributions to
holders of units.
BKEP’s debt levels under the credit agreement may limit their ability to make distributions and flexibility in obtaining additional financing and in pursuing other
business opportunities.
BKEP may not be able to raise sufficient capital to grow their business.
If BKEP borrows funds to make any permitted quarterly distributions, the ability to pursue acquisitions and other business opportunities may be limited and
BKEP’s operations may be materially and adversely affected.
BKEP is indirectly exposed to commodity price volatility.
BKEP’s revenues from third-party customers are generated under contracts that must be renegotiated periodically and that allow the customer to reduce or
suspend performance in some circumstances, which could cause revenues from those contracts to decline and reduce the ability to make distributions to BKEP’s
unitholders.
Member NYSE, SPIC
MLP COMPANY RISKS
Certain of BKEP’s asphalt services contracts have short terms, and certain leases relating to the asphalt operations may be terminated upon short notice.
BKEP is not fully insured against all risks incident to its business and could incur substantial liabilities as a result.
A significant decrease in demand for crude oil and/or finished asphalt products in the areas served by BKEP storage facilities and pipelines could reduce the
ability to make distributions to BKEP’s unitholders.
A material decrease in the production of crude oil from the oil fields served by BKEP pipelines could materially reduce the ability to make distributions to BKEP’s
unitholders.
A material decrease in the production of liquid asphalt cement could materially reduce BKEP’s ability to make distributions to unitholders.
BKEP faces intense competition in gathering, transportation, terminalling and storage activities. Competition from other providers of crude oil gathering,
transportation, terminalling and storage services that are able to supply BKEP’s customers with those services at a lower price could reduce BKEP’s ability to
make distributions to its unitholders.
Some of BKEP’s pipeline systems are dependent upon interconnections with other crude oil pipelines to reach end markets.
If BKEP is unable to make acquisitions on economically acceptable terms, BKEP’s future growth may be limited.
If BKEP acquires assets that are distinct and separate from existing terminalling, storage, gathering and transportation operations, it could subject them to
additional business and operating risks.
Expanding BKEP’s business by constructing new assets subjects them to risks that projects may not be completed on schedule and that the costs associated
with projects may exceed their expectations, which could cause the cash available for distribution to BKEP’s unitholders to be less than anticipated.
BKEP may incur significant costs and liabilities as a result of pipeline integrity management program testing and any necessary pipeline repair, or preventative
or remedial measures, which could have a material adverse effect on BKEP’s results of operations.
BKEP may be subject to significant costs related to environmental investigations and/or remediation activities at its asphalt facilities.
BKEP’s operations are subject to environmental and worker safety laws and regulations that may expose them to significant costs and liabilities. Failure to
comply with these laws and regulations could adversely affect the ability to make distributions to BKEP’s unitholders.
Adoption of legislation and regulatory measures targeting greenhouse gas (GHG) emissions could affect BKEP’s operations, expose them to significant costs and
liabilities, and reduce demand for the products they transport.
BKEP’s business involves many hazards and operational risks, including adverse weather conditions, which could cause them to incur substantial liabilities.
BKEP does not own all of the land on which BKEP’s pipelines and facilities are located, which could disrupt their operations.
BKEP could experience increased severity or frequency of accidents and other claims.
Changes in trucking regulations may increase BKEP’s costs and negatively impact the results of operations.
Terrorist or cyber-attacks and threats, escalation of military activity in response to these attacks or acts of war could have a material adverse effect on BKEP’s
business, financial condition or results of operations.
Vitol and Charlesbank control BKEP’s General Partner, which has sole responsibility for conducting BKEP business and managing their operations. BKEP’s
General Partner has conflicts of interest with them and limited fiduciary duties, which may permit it to favor its own interests to the detriment of BKEP’s
unitholders.
Member NYSE, SPIC
MLP COMPANY RISKS
BKEP’s partnership agreement limits their General Partner’s fiduciary duties to holders of BKEP’s units and restricts the remedies available to holders of their
units for actions taken by BKEP’s General Partner that might otherwise constitute breaches of fiduciary duty.
Vitol and Charlesbank may compete with BKEP, which could adversely affect BKEP’s existing business and limit their ability to acquire additional assets or
businesses.
Cost reimbursements due to BKEP’s General Partner and its affiliates for services provided, which are determined by BKEP’s General Partner, may be substantial
and will reduce their cash available for distribution to unitholders.
Holders of BKEP’s Preferred Units and common units have limited voting rights and are not entitled to elect BKEP’s General Partner or its directors.
Control of BKEP’s General Partner may be transferred to a third party without unitholder consent.
BKEP may issue additional units without approval of their unitholders, which would dilute the unitholders’ ownership interests.
BKEP’s partnership agreement restricts the voting rights of unitholders, other than BKEP’s General Partner and its affiliates, including Vitol and Charlesbank,
owning 20% or more of any class of BKEP’s partnership securities.
Even if holders of BKEP’s Preferred Units or common units are dissatisfied, they cannot initially remove BKEP’s General Partner without its consent.
Affiliates of BKEP’s General Partner may sell units in the public markets, which sales could have an adverse impact on the trading price of the units.
BKEP’s General Partner has a limited call right that may require their unitholders to sell their units at an undesirable time or price.
Units held by persons who are not Eligible Holders will be subject to the possibility of redemption.
Holders of BKEP’s Preferred Units have a distribution preference and a liquidation preference, which may adversely impact the value of the common units.
The conversion rate applicable to the Preferred Units will not be adjusted for all events that may be dilutive.
BKEP has the right to require their preferred unitholders to convert their Preferred Units into common units, and may exercise this mandatory conversion right
at an undesirable time.
Holders of the Preferred Units will not have rights to distributions as holders of common units until they acquire BKEP common units.
The Preferred Units are limited partner interests in BKEP’s partnership and therefore are subordinate to any indebtedness.
Market interest rates may affect the value of BKEP units.
BKEP’s unitholders’ liability may not be limited if a court finds that unitholder action constitutes control of BKEP’s business.
Unitholders may have liability to repay distributions that were wrongfully distributed to them.
BKEP’s common unitholders have been and will be required to pay taxes on their share of BKEP’s taxable income even if they have not or do not receive any
cash distributions from BKEP.
BKEP’s tax treatment depends on its status as a partnership for federal income tax purposes, as well as BKEP not being subject to a material amount of entitylevel taxation by individual states. If the IRS were to treat BKEP as a corporation or if BKEP were to become subject to a material amount of entity-level
taxation for state tax purposes, then the cash available for distribution to BKEP’s unitholders would be substantially
Member NYSE, SPIC
MLP COMPANY RISKS
reduced.
The tax treatment of publicly traded partnerships or an investment in BKEP’s common units could be subject to potential legislative, judicial or administrative
changes and differing interpretations, possibly on a retroactive basis.
If the IRS contests any of the federal income tax positions BKEP takes, the market for BKEP’s common units may be adversely affected, and the costs of any
such contest will reduce the cash available for distribution to BKEP’s unitholders.
Tax gain or loss on the disposition of BKEP’s common units could be more or less than expected.
Tax-exempt entities, regulated investment companies and non-United States persons face unique tax issues from owning units that may result in adverse tax
consequences to them.
BKEP will treat each purchaser of their common units as having the same tax benefits without regard to the specific common units purchased. The IRS may
challenge this treatment, which could adversely affect the value of the common units.
The sale or exchange of 50% or more of BKEP’s capital and profits interests during any twelve-month period will result in the termination of the partnership for
federal income tax purposes.
BKEP’s unitholders likely will be subject to state and local taxes and return filing or withholding requirements in states in which they do not live as a result of
investing in BKEP units.
BKEP holds certain assets located at certain of their asphalt facilities in a subsidiary taxed as a corporation. Such subsidiary is subject to entity level federal and
state income taxes on its net taxable income and, if a material amount of entity-level taxes were incurred, then the cash available for distribution to BKEP’s
unitholders could be substantially reduced.
BKEP prorates items of income, gain, loss and deduction between transferors and transferees of their common units each month based upon the ownership of
their common units on the first day of each month, instead of on the basis of the date a particular common unit is transferred. The IRS may challenge this
treatment, which could change the allocation of items of income, gain, loss and deduction among BKEP’s common unitholders.
A unitholder whose units are loaned to a “short seller” to effect a short sale of units may be considered as having disposed of those units. If so, such unitholder
would no longer be treated for tax purposes as a partner with respect to those units during the period of the loan and may recognize gain or loss from the
disposition.
Unitholders converting preferred units into common unit could under certain limited circumstances receive a gross income allocation that may materially
increase the taxable income allocated to such unitholders.
BKEP may adopt certain valuation methodologies and monthly conventions for federal income tax purposes that may result in a shift of income, gain, loss and
deduction between BKEP’s General Partner and BKEP’s common unitholders. The IRS may challenge this treatment, which could adversely affect the value of
BKEP’s outstanding units.
Member NYSE, SPIC
MLP COMPANY RISKS
JPEP Company Risks
JPEP may not have sufficient cash from operations following the establishment of cash reserves and payment of fees and expenses, including cost
reimbursements to their general partner, to enable them to pay the minimum quarterly distribution, or any distribution, to holders of JPEP common and
subordinated units.
On a pro forma basis JPEP would not have had sufficient distributable cash flow to pay the full minimum quarterly distribution on all of their units for the year
ended December 31, 2013 or for the twelve months ended June 30, 2014, with shortfalls of $23.1 million for the year ended December 31, 2013 and $33.0
million for the twelve months ended June 30, 2014.
The assumptions underlying the forecast of Adjusted EBITDA, distributable cash flow and adjusted gross margin that JPEP includes in "Cash Distribution Policy
and Restrictions on Distributions" are inherently uncertain and are subject to significant business, economic, financial, regulatory and competitive risks and
uncertainties that could cause actual results to differ materially from those forecasted.
A sustained decrease in demand for crude oil, refined products or NGLs in the areas JPEP serves could reduce their revenues.
JPEP has some short-term contracts and other contracts that can be canceled on 60 days' notice and will have to be renegotiated or replaced periodically. JPEP’s
failure to replace contracts that are canceled or expire on acceptable terms, or at all, could cause revenues to decline and reduce JPEP’s ability to make
distributions to their unitholders.
JPEP faces intense competition in all of its business segments. Competitors that are able to supply JPEP’s customers with similar services or products at a lower
price could reduce their revenues.
JPEP has material weaknesses in its internal control over financial reporting. If one or more material weaknesses persist or if JPEP otherwise fails to establish
and maintain effective internal control over financial reporting, the ability to accurately report JPEP financial results could be adversely affected.
If JPEP does not properly maintain and improve its measurement and quality control processes and procedures across all of their business segments, JPEP may
have measurement and quality errors or contamination, which may result in lost revenues or the incurrence of additional costs.
JPEP is not currently required to make an assessment of their internal control over financial reporting.
Because of the natural decline in production from JPEP’s customers' existing wells in their areas of operation, JPEP depends, in part, on producers replacing
declining production and also on their ability to secure new sources of crude oil. Any decrease in the volumes of crude oil that JPEP transports could adversely
affect their business and operating results.
JPEP does not intend to obtain independent evaluations of oil reserves connected to their Silver Dollar Pipeline System on a regular or ongoing basis; therefore,
in the future, volumes of oil on JPEP’s Silver Dollar Pipeline System could be less than they anticipate.
JPEP’s success in their crude oil pipelines business depends, in part, on drilling activity and JPEP’s ability to attract and maintain customers in a limited number
of geographic areas.
JPEP may not be able to increase throughput and resulting revenue due to competition and other factors, which could limit JPEP’s ability to grow their crude oil
pipelines and storage segment.
JPEP’s crude oil supply and logistics operations involve market and regulatory risks.
JPEP depends on a relatively limited number of customers for a significant portion of their revenues. The loss of, or material nonpayment or nonperformance by,
any one or more of these customers could adversely affect JPEP’s ability to make cash distributions to their unitholders.
Midstream capacity constraints and interruptions could impact JPEP’s operations.
Member NYSE, SPIC
MLP COMPANY RISKS
The risk management policy governing JPEP’s crude oil supply activities cannot eliminate all risks associated with their crude oil supply and logistics business,
and JPEP cannot ensure that employees of their general partner will fully comply with the policy at all times, both of which could impact JPEP’s financial and
operational results and, in turn, their ability to make cash distributions to unitholders.
A prolonged decline in index prices at Cushing, relative to other index prices, could reduce the demand for the services JPEP provides in their crude oil storage
business.
The results of JPEP’s crude oil storage business could be adversely affected during periods in which the overall forward market for crude oil is backwardated.
All of JPEP’s operations have indirect exposure to changes in commodity prices and some of their operations have direct exposure to commodity price changes.
JPEP does not operate their crude oil storage facility.
Increased trucking regulations may increase JPEP’s costs or make it more difficult for them to attract or retain qualified drivers, which could negatively affect
JPEP’s results of operations.
JPEP’s refined products terminals are dependent upon their interconnections with terminals and pipelines owned and operated by others.
The assets in JPEP’s refined products terminals and storage segment have been in service for several decades.
Warm weather in the winter heating season or inclement weather in the summer grilling season could lower demand for propane.
Sudden and sharp propane cost increases cannot be passed on to customers with contracted pricing arrangements and these contracted pricing arrangements
will adversely affect JPEP’s profit margins if they are not immediately hedged with an offsetting propane purchase commitment.
High prices for propane can lead to customer conservation and attrition, resulting in reduced demand for JPEP products.
JPEP is dependent on certain principal propane suppliers, which increases the risks from an interruption in supply and transportation.
Energy efficiency, advances in technology and competition from other energy sources may affect demand for propane and increases in propane prices may
cause JPEP’s residential customers to increase their conservation efforts.
If the independently owned third-party haulers that JPEP relies upon for the delivery of propane cylinders from their production facilities to certain of JPEP’s
distribution depots do not perform as expected, or if JPEP or these third-party haulers are not able to manage growth effectively, the relationships with JPEP’s
customers may be adversely impacted and their delivery of propane by cylinder exchange may decline.
A significant increase in motor fuel costs or other commodity prices may adversely affect JPEP profits.
JPEP’s failure or their counterparties' failure to perform on obligations under commodity derivative and financial derivative contracts could have a material
adverse effect on JPEP’s financial condition, results of operations and cash flows.
JPEP is exposed to the credit risks, and certain other risks, of their key customers and other counterparties.
JPEP intends to grow their business in part by seeking strategic acquisition opportunities. If they are unable to make acquisitions on economically acceptable
terms from JP Development, ArcLight Fund V or third parties, JPEP’s future growth will be affected, and the acquisitions they do make may reduce, rather than
increase, their cash generated from operations on a per unit basis.
JPEP’s right of first offer to acquire certain ArcLight assets and all of JP Development's existing and future assets is subject to risks and uncertainty, and
ultimately they may not acquire any of those assets.
Member NYSE, SPIC
MLP COMPANY RISKS
JPEP’s construction of new assets may not result in revenue increases and will be subject to regulatory, environmental, political, legal and economic risks, which
could adversely affect the results of operations and financial condition.
JPEP’s growth strategy requires access to new capital. Tightened capital markets or increased competition for investment opportunities could impair JPEP’s
ability to grow.
JPEP’s business is subject to federal, state and local laws and regulations that govern the product quality specifications of the crude oil and refined products that
they gather, store, transport and handle.
JPEP is subject to stringent environmental laws and regulations that may expose them to significant costs and liabilities.
Climate change legislation or regulatory initiatives could result in increased operating costs and reduced demand for the services JPEP provides.
Increased regulation of hydraulic fracturing could result in reductions or delays in crude oil, natural gas and NGL production in areas of operation, which could
adversely impact JPEP’s business and results of operations.
JPEP’s business involves many hazards and operational risks, some of which may not be fully covered by insurance. If a significant accident or event occurs for
which JPEP is not adequately insured or if they fail to recover all anticipated insurance proceeds for significant accidents or events for which they are insured,
their operations and financial results could be adversely affected.
JPEP is subject to litigation risks that could adversely affect their operating results to the extent not covered by insurance.
Because JPEP’s common units will be yield-oriented securities, increases in interest rates could adversely impact their unit price, their ability to issue equity or
incur debt for acquisitions or other purposes and their ability to make cash distributions at JPEP’s intended levels.
Debt JPEP may incur in the future could limit their flexibility to obtain financing and to pursue other business opportunities.
Restrictions in JPEP’s revolving credit facility could adversely affect their business, financial condition, results of operations, ability to make distributions to their
unitholders and value of their common units.
Cyber-attacks and threats could have a material adverse effect on JPEP’s operations.
The risk of terrorism, political unrest and hostilities in the Middle East or other energy producing regions may adversely affect the economy and JPEP’s business.
Derivatives legislation adopted by Congress could have an adverse impact on JPEP’s ability to hedge risks associated with their business.
JPEP’s ability to operate their business effectively could be impaired if they fail to attract and retain key management personnel and employees.
The amount of cash JPEP has available for distribution to holders of their common and subordinated units depends primarily on the cash flow rather than on
JPEP’s profitability, which may prevent them from making distributions, even during periods in which they record net income.
Risks Inherent in an Investment in JPEP:
JPEP’s general partner and its affiliates, including Lonestar, JP Development and ArcLight, have conflicts of interest with JPEP and limited duties to JPEP and
JPEP’s unitholders, and they may favor their own interests to JPEP’s detriment and that of their unitholders.
Affiliates of JPEP’s general partner, including Lonestar, JP Development and ArcLight, may compete with JPEP, and neither JPEP’s general partner nor its
affiliates have any obligation to present business opportunities to JPEP.
Member NYSE, SPIC
MLP COMPANY RISKS
JPEP’s partnership agreement requires that they distribute all of their available cash, which could limit their ability to grow and make acquisitions.
Other than the requirement in JPEP’s partnership agreement to distribute all of their available cash each quarter, JPEP has no legal obligation to make quarterly
cash distributions, and their general partner has considerable discretion to establish cash reserves that would reduce the amount of available cash they
distribute to unitholders.
JPEP’s partnership agreement replaces their general partner's fiduciary duties to holders of their common units with contractual standards governing its duties.
JPEP’s partnership agreement restricts the remedies available to holders of their common and subordinated units for actions taken by their general partner that
might otherwise constitute breaches of fiduciary duty.
If you are not both a citizenship eligible holder and a rate eligible holder, your common units may be subject to redemption.
Reimbursements due to JPEP’s general partner and its affiliates for services provided to them or on JPEP’s behalf will reduce their distributable cash flow. The
amount and timing of such reimbursements will be determined by JPEP’s general partner.
Holders of JPEP’s common units have limited voting rights and are not entitled to elect their general partner or its directors.
Even if holders of JPEP’s common units are dissatisfied, they cannot initially remove JPEP’s general partner without its consent.
JPEP’s partnership agreement restricts the voting rights of unitholders owning 20% or more of their common units.
JPEP’s general partner interest or the control of their general partner may be transferred to a third party without unitholder consent.
JPEP’s general partner may transfer its incentive distribution rights to a third party without unitholder consent.
You will experience immediate and substantial dilution in pro forma net tangible book value of $14.52 per common unit.
JPEP may issue additional units without unitholder approval, which would dilute unitholder interests.
JPEP’s general partner may cause them to borrow funds in order to make cash distributions, even where the purpose or effect of the borrowing benefits their
general partner or its affiliates.
JPEP’s general partner has a limited call right that may require you to sell your common units at an undesirable time or price.
Your liability may not be limited if a court finds that unitholder action constitutes control of JPEP’s business.
Unitholders may have to repay distributions that were wrongfully distributed to them.
There is no existing market for JPEP common units, and a trading market that will provide you with adequate liquidity may not develop. The price of JPEP
common units may fluctuate significantly, and you could lose all or part of your investment.
JPEP’s general partner, or any transferee holding incentive distribution rights, may elect to cause them to issue common units to it in connection with a
resetting of the target distribution levels related to its incentive distribution rights without the approval of JPEP’s conflicts committee or the holders of their
common units. This could result in lower distributions to holders of their common units.
JPEP’s management team does not have experience managing their business as a stand-alone publicly traded partnership, and if they are unable to manage
JPEP’s business as a publicly traded partnership their business may be affected.
Member NYSE, SPIC
MLP COMPANY RISKS
The NYSE does not require a publicly traded partnership like JPEP to comply with certain of its corporate governance requirements.
JPEP will incur increased costs as a result of being a publicly traded partnership.
Tax Risks:
JPEP’s tax treatment depends on their status as a partnership for federal income tax purposes. If the Internal Revenue Service ("IRS") were to treat JPEP as a
corporation for federal income tax purposes, which would subject them to entity-level taxation, or if they were otherwise subjected to a material amount of
additional entity-level taxation, then JPEP’s distributable cash flow to their unitholders would be substantially reduced.
The tax treatment of publicly traded partnerships or an investment in JPEP’s common units could be subject to potential legislative, judicial or administrative
changes and differing interpretations, possibly on a retroactive basis.
JPEP’s unitholders' share of their income will be taxable to them for federal income tax purposes even if they do not receive any cash distributions from JPEP.
If the IRS contests the federal income tax positions JPEP takes, the market for JPEP common units may be adversely impacted and the cost of any IRS contest
will reduce their distributable cash flow available for distribution to JPEP’s unitholders.
Tax gain or loss on the disposition of JPEP’s common units could be more or less than expected.
Tax-exempt entities and non-United States persons face unique tax issues from owning JPEP’s common units that may result in adverse tax consequences to
them.
JPEP will treat each purchaser of their common units as having the same tax benefits without regard to the actual common units purchased. The IRS may
challenge this treatment, which could adversely affect the value of JPEP’s common units.
JPEP prorates their items of income, gain, loss and deduction for federal income tax purposes between transferors and transferees of their units each month
based upon the ownership of their units on the first day of each month, instead of on the basis of the date a particular unit is transferred. The IRS may
challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among JPEP’s unitholders.
A unitholder whose common units are loaned to a "short seller" to effect a short sale of common units may be considered as having disposed of those common
units. If so, he would no longer be treated for federal income tax purposes as a partner with respect to those common units during the period of the loan and
may recognize gain or loss from the disposition.
JPEP will adopt certain valuation methodologies and monthly conventions for federal income tax purposes that may result in a shift of income, gain, loss and
deduction between their general partner (as the holder of JPEP’s incentive distribution rights) and their unitholders. The IRS may challenge this treatment,
which could adversely affect the value of their common units.
The sale or exchange of 50.0% or more of JPEP’s capital and profits interests during any twelve-month period will result in the termination of their partnership
for federal income tax purposes.
As a result of investing in JPEP’s common units, you may become subject to state and local taxes and return filing requirements in jurisdictions where they
operate or own or acquire properties.
Member NYSE, SPIC
MLP COMPANY RISKS
MCEP Company Risks
Risks to Achievement of Our Price Target of MCEP
Because Mid-Con Energy Partners generates production through waterflood, at times, stimulation can take up to two years before the assets are mature
enough to drop-down. In addition, results could vary from anticipated production levels, which could pose a risk to our price target.
While we believe that strategic M&A will play an important role in Mid-Con Energy’s future growth, an inability to grow through acquisitions could cause
units to suffer, which could pose a risk to our price target.
Mid-Con Energy has made multiple acquisitions over the last 12 months and an inability to seamlessly implement the acquired assets into its asset base
As with other MLPs, Mid-Con Energy faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either of
these fronts would pressure Mid-Con Energy units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Mid-Con Energy price target.
Risks as Filed in MCEP’s SEC Documents
MCEP may not have sufficient cash to pay the initial quarterly distribution on its units following the establishment of cash reserves and payment of
expenses, including payments to MCEP’s general partner.
A decline in oil prices, or an increase in the differential between the NYMEX or other benchmark prices of oil and the wellhead price MCEP receives for
production, will cause a decline in cash flow from operations, which could cause MCEP to reduce distributions or cease paying distributions altogether.
If commodity prices decline and remain depressed for a prolonged period, production from a significant portion of MCEP’s oil properties may become
uneconomic and cause write downs of the value of such oil properties, which may adversely affect MCEP’s financial condition and ability to make
MCEP’s hedging strategy may be ineffective in removing the impact of commodity price volatility from MCEP’s cash flow, which could result in financial
losses or could reduce income, which may adversely affect MCEP’s ability to pay distributions to unit holders. MCEP’s hedging activities could result in cash
losses, could reduce cash available for distribution and may limit the prices we would otherwise realize for MCEP’s production.
MCEP’s hedging transactions expose them to counterparty credit risk.
Unless MCEP replaces the oil reserves produced, revenues and production will decline, which would adversely affect MCEP’s cash flow from operations and
the ability to make distributions to MCEP’s unitholders at the initial quarterly distribution rate. MCEP’s operations may require substantial capital
expenditures, which could reduce its cash available for distribution and could materially affect MCEP’s ability to make distributions to unitholders.
Developing and producing oil is a costly and high-risk activity with many uncertainties that could adversely affect MCEP’s financial condition or results of
operations and, as a result, MCEP’s ability to pay distributions to its unitholders.
MCEP’s estimated proved reserves and future production rates are based on many assumptions that may prove to be inaccurate. Any material
inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of MCEP’s estimated reserves.
Member NYSE, SPIC
MLP COMPANY RISKS
The standardized measure of MCEP’s estimated proved reserves is not necessarily the same as the current market value of its estimated proved oil
reserves. If MCEP does not make acquisitions on economically acceptable terms, MCEP’s future growth and ability to pay or increase distributions will be
limited.
Any acquisitions MCEP’s completes are subject to substantial risks that could reduce the ability to make distributions to unitholders. Adverse
developments in MCEP’s operating areas would reduce the ability to make distributions to unitholders.
MCEP is primarily dependent upon a small number of customers for production sales and may experience a temporary decline in revenues and production
if MCEP loses any of those customers.
Unitization difficulties may prevent MCEP from developing certain properties or greatly increase the cost of their development. Other owners of mineral
rights may object to MCEP’s waterfloods.
MCEP might be unable to compete effectively with larger companies, which might adversely affect MCEP’s ability to generate sufficient revenue to allow
them to pay distributions to unitholders.
Many of MCEP’s leases are in areas that have been partially depleted or drained by offset wells.
MCEP may incur additional debt to enable them to pay quarterly distributions, which may negatively affect MCEP’s ability to pay future distributions or
execute their business plan. MCEP’s credit facility has restrictions and financial covenants that may restrict its business and financing activities and ability
to pay distributions to unitholders.
MCEP’s business depends in part on transportation, pipelines and refining facilities owned by others. Any limitation in the availability of those facilities
could interfere with MCEP’s ability to market production and could harm MCEP’s business. Climate change legislation, regulatory initiatives and litigation
could result in increased operating costs and reduced demand for the oil and natural gas that MCEP produces.
MCEP’s operations are subject to environmental and operational safety laws and regulations that may expose them to significant costs and liabilities.
The recent adoption of derivatives legislation by the U.S. Congress could have an adverse effect on MCEP’s ability to use derivative contracts to reduce the
effect of commodity price, interest rate and other risks associated with MCEP’s business. Federal and state legislative and regulatory initiatives relating to
hydraulic fracturing could result in increased costs and additional operating restrictions or delays.
Member NYSE, SPIC
MLP COMPANY RISKS
MMLP Company Risks
Risks to Achievement of Our Price Target of MMLP
While Martin Midstream has the financial strength to grow its asset base, an inability to provide investors with future growth prospects could cause units
to decline in value, which could pose a risk to our price target.
While Martin Midstream has its natural gas storage facilities secured with long-term contracts ranging from 3 – 10 years, a prolonged weak natural gas
storage environment could negatively impact Martin Midstream units as contracts are renegotiated, posing a risk to our price target.
As with other MLPs, Martin Midstream faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either
of these fronts would pressure Martin Midstream units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Martin Midstream price target.
Risks as Filed in MMLP’s SEC Documents
MMLP may not have sufficient cash after the establishment of cash reserves and payment of its general partner's expenses to enable MMLP to pay the
minimum quarterly distribution each quarter.
Restrictions in MMLP’s credit facility may prevent them from making distributions to unitholders.
If MMLP does not have sufficient capital resources for acquisitions or opportunities for expansion, growth will be limited.
MMLP may not be able to obtain funding on acceptable terms or at all because of the deterioration of the credit and capital markets. This may hinder or
prevent MMLP from meeting their future capital needs.
MMLP is exposed to counterparty risk in its credit facility and related interest rate protection agreements.
The impacts of climate-related initiatives at the international, federal and state levels remain uncertain at this time.
MMLP’s recent and future acquisitions may not be successful, may substantially increase MMLP’s indebtedness and contingent liabilities and may create
integration difficulties.
Adverse weather conditions, including droughts, hurricanes, tropical storms and other severe weather, could reduce MMLP’s results of operations and
ability to make distributions to unitholders.
If MMLP incurs material liabilities that are not fully covered by insurance, such as liabilities resulting from accidents on rivers or at sea, spills, fires or
explosions, the results of operations and ability to make distributions to unitholders could be adversely affected.
The price volatility of petroleum products and by-products could reduce MMlp’s liquidity and results of operations and ability to make distributions to
unitholders. Increasing energy prices could adversely affect MMLP’s results of operations.
Increased competition from alternative natural gas transportation and storage options and alternative fuel sources could have a significant financial impact
on MMLP. Demand for MMLP’s terminalling and storage services is substantially dependent on the level of offshore oil and gas exploration, development
and production activity.
Member NYSE, SPIC
MLP COMPANY RISKS
MMLP’s NGL and sulfur-based fertilizer products are subject to seasonal demand and could cause revenues to vary.
The highly competitive nature of MMLP’s industry could adversely affect results of operations and ability to make distributions to unitholders.
MMLP’s business is subject to compliance with environmental laws and regulations that may expose them to significant costs and liabilities and adversely
affect MMLP’s results of operations and ability to make distributions to unitholders. The loss or insufficient attention of key personnel could negatively
impact MMLP’s results of operations and ability to make distributions to unitholders.
MMLP’s loss of significant commercial relationships with Martin Resource Management could adversely impact the results of operations and ability to make
MMLP’s business would be adversely affected if operations at MMLP’s transportation, terminalling and storage and distribution facilities experienced
significant interruptions. MMLP’s business would also be adversely affected if the operations of its customers and suppliers experienced significant
interruptions.
Political, regulatory and economic factors may significantly affect MMLP’s operations, the manner in which they conduct business and slow the rate of
growth.
MMLP’s marine transportation business would be adversely affected if they do not satisfy the requirements of the Jones Act or if the Jones Act were
modified or eliminated. MMLP’s marine transportation business would be adversely affected if the U.S. Government purchases or requisitions any of
MMLP’s vessels under the Merchant Marine Act.
Regulations affecting the domestic tank vessel industry may limit MMLP’s ability to do business, increase costs and adversely impact results of operations
and ability to make distributions to unitholders.
MMLP’s interest rate swap activities may have a material adverse effect on MMLP’s earnings, profitability, liquidity, cash flows and financial condition. The
industry in which MMLP operats is highly competitive, and increased competitive pressure could adversely affect business and operating results.
Member NYSE, SPIC
MLP COMPANY RISKS
MWE Company Risks
Risks to Achievement of Our Price Target of MWE
While MarkWest has provided great visibility in the Marcellus and Utica through 2015, delays in the Company’s facilities becoming operational, in an
already tight market, would have a negative impact on MarkWest units and ultimately pose a risk to our price target.
Permitting and drilling activity in MarkWest’s areas of operation remains robust. Plays such as the Marcellus and Utica that are increasing its activity show
higher rig counts that should eclipse 2012 levels. However, if drilling or permitting were to slow in MarkWest’s areas of future growth, units could suffer,
which could pose a risk to our price target.
While we believe the announced MarkWest Utica joint venture is a positive, MarkWest could face obstacles in dealing with a joint venture partner, which
As with other MLPs, MarkWest faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either of these
fronts would pressure MarkWest units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our MarkWest price target.
Risks as Filed in MWE’s SEC Documents
MWE’s substantial debt and other financial obligations could impair MWE’s financial condition, results of operations and cash flow, and MWE’s ability to
fulfill its debt obligations.
Global economic conditions may have adverse impacts on MWE’s business and financial condition.
MWE may not have sufficient cash after the establishment of cash reserves and payment of its expenses to enable MWE to pay distributions at the current
level.
MWE’s profitability and cash flows are affected by the volatility of NGL product and natural gas prices.
Relative changes in NGL product and natural gas prices may adversely impact MWE’s results due to frac spread, natural gas and NGL exposure. MWE’s
commodity derivative activities may reduce its earnings, profitability and cash flows.
MWE conducts risk management activities but may not accurately predict future commodity price fluctuations and, therefore, expose MWE to financial
risks and reduce the opportunity to benefit from price increases. The enactment of the Dodd-Frank Act and promulgation of regulations thereunder could
have an adverse impact on MWE’s ability to manage risks associated with our business.
A significant decrease in natural gas production in MWE areas of operation would reduce the ability to make distributions to MWE’s unitholders.
MWE depends on third parties for the natural gas and refinery off-gas they process, and the NGLs fractionated at MWE facilities, and a reduction in these
quantities could reduce revenues and cash flow.
Growing MWE’s business by constructing new pipelines and processing and treating facilities subjects MWE to construction risks and risks that natural gas
or NGL supplies may not be available upon completion of the facilities.
The fees charged to third parties under MWE’s gathering, processing, transmission, transportation, fractionation and storage agreements may not escalate
sufficiently to cover increases in costs, or the agreements may not be renewed or may be suspended in some circumstances.
Member NYSE, SPIC
MLP COMPANY RISKS
MWE is exposed to the credit risks of key customers and derivative counterparties, and any material nonpayment or nonperformance by MWE’s key
customers or derivative counterparties could reduce the ability to make distributions to MWE unitholders.
MWE may not be able to retain existing customers, or acquire new customers, which would reduce revenues and limit MWE’s future profitability.
Transportation on certain MWE pipelines may be subject to federal or state rate and service regulation, and the imposition and/or cost of compliance with
such regulation could adversely affect the operations and cash flows available for distribution to MWE’s unitholders.
Some of MWE’s natural gas, NGL and crude oil transportation operations are subject to FERC's rate-making policies that could have an adverse impact on
the ability to establish rates that would allow MWE to recover the full cost of operating it’s pipelines including a reasonable return.
If MWE is unable to obtain new rights-of-way or other property rights, or the cost of renewing existing rights-of-way or property rights increases, then
they may be unable to fully execute growth strategy, which may adversely affect MWE’s operations and cash flows available for distribution to unitholders.
MWE is indemnified for liabilities arising from an ongoing remediation of property on which certain of MWE’s facilities are located and the results of
operation and the ability to make distributions to MWE’s unitholders could be adversely affected if an indemnifying party fails to perform its
indemnification obligations.
MWE’s business is subject to laws and regulations with respect to environmental, occupational safety and health, nuisance, zoning, land use and other
regulatory matters, and the violation of, or the cost of compliance with, such laws and regulations could adversely affect MWE’s operations and cash flows
available for distribution to unitholders.
Member NYSE, SPIC
MLP COMPANY RISKS
NSLP Company Risks
Risks to Achievement of Our Price Target of NSLP
New Source Energy Partners maintains a non-operated business model, which could result in an inconsistent drilling schedule, which could affect
production, which could pose a risk to our price target.
New Source Energy Partners has roughly 60% of its production tied to NGLs. If prices were to remain low and New Source Energy Partners can't hedge
the NGLs at reasonable prices, there could be a risk to our price target.
As with other MLPs, New Source Energy faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either
of these fronts would pressure New Source Energy units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our New Source Energy price target.
Risks as filed in NSLP SEC documents
NSLP may not have sufficient cash to pay the minimum quarterly distribution on its common units following the establishment of cash reserves and
payment of fees and expenses, including payments to the general partner and its affiliates.
NSLP relies on New Source Energy and New Dominion, NSLP’s contract operator, to execute its drilling program. If either New Source Energy or New
Dominion fails to perform or inadequately performs, NSLP’s operations will be adversely affected and the costs could increase or reserves may not be
developed, reducing NSLP’s future levels of production and cash flow from operations, which could affect NSLP’s ability to make cash distributions to
unitholders.
A decline in oil, natural gas and NGL prices may adversely affect NSLP’s business, financial condition or results of operations and ability to meet the capital
expenditure obligations and financial commitments.
Unless NSLP replaces the oil and natural gas reserves produced, NSLP’s revenues and production will decline, which would adversely affect the cash flow
from operations and ability to make distributions to NSLP’s unitholders. NSLP does not currently operate any of its drilling locations, and therefore, will not
be able to control the timing of exploration or development efforts, associated costs, or the rate of production of assets.
The Golden Lane Participation Agreement contains terms that may be disadvantageous to NSLP.
If NSLP’s contract operator fails to perform its obligations under its agreements with NSLP, becomes subject to bankruptcy proceedings or otherwise
proves to be an undesirable operator, NSLP’s business could be adversely affected.
Properties that NSLP acquires may not produce oil or natural gas as projected, and may be unable to determine reserve potential, identify liabilities
associated with the properties or obtain protection from sellers against them, which could cause NSLP to incur losses.
All of NSLP’s producing properties and interests are currently located in the Hunton Formation in east-central Oklahoma, making them vulnerable to risks
associated with operating in one primary geographic area.
NSLP is subject to significant risks associated with the drilling and completion of wells in which they participate.
NSLP’s reliance on specialized processes creates uncertainties that could adversely affect the results of operations and financial condition. NSLP depends
on its key management personnel, and the loss of any of these individuals could adversely affect business.
Member NYSE, SPIC
MLP COMPANY RISKS
NSLP relies on our relationships with affiliates to access infrastructure that is critical to the development of NSLP’s assets. Adequate infrastructure may not
be available at an economic rate.
Access to saltwater disposal infrastructure may not be sufficient to handle all saltwater produced, and more stringent environmental regulations may
impact the New Source Group’s ability to handle saltwater. NSLP’s ability to sell its production and/or receive market prices for its production may be
adversely affected by lack of transportation, capacity constraints and interruptions.
NSLP’s identified drilling locations are scheduled to be developed over several years, making them susceptible to uncertainties that could materially alter
the occurrence or timing of their drilling.
NSLP’s estimated proved reserves are based on many assumptions that may turn out to be inaccurate. Any significant inaccuracies in these reserve
estimates or underlying assumptions will materially affect the quantities and present value of its reserves.
A substantial portion of NSLP’s estimated
proved reserves is undeveloped and may not ultimately be developed or become commercially productive, which could have a material adverse effect on
NSLP’s future oil and natural gas reserves and production and, therefore, future cash flow and income.
The present value of future net revenues from NSLP’s proved reserves will not necessarily be the same as the current market value of its estimated oil
and natural gas reserves.
NSLP’s development and acquisition projects require substantial capital expenditures. NSLP may be unable to obtain needed capital or financing on
satisfactory terms, which could lead to a decline in NSLP’s oil and natural gas reserves. Increased costs of capital could adversely affect its business.
If oil, natural gas and NGL prices decrease, NSLP may be required to take write-downs of the carrying values of its oil and natural gas properties. NSLP’s
insurance policies might be inadequate to cover its liabilities.
Competition in the oil and natural gas industry is intense, and many of NSLP’s competitors have greater resources than they do.
NSLP’s commodity derivative arrangements may be ineffective in managing commodity price risk and could result in financial losses or could reduce
NSLP’s income, which may adversely impact its ability to pay distributions to unitholders.
The enactment of derivatives legislation and regulation could have an adverse effect on NSLP’s ability to use derivative instruments to reduce the negative
effect of commodity price, interest rate and other risks associated with NSLP’s business. NSLP’s production of oil and natural gas is sold to a limited
number of customers and the credit default of one of these customers could have a temporary adverse effect on NSLP.
Increases in interest rates could adversely impact NSLP’s unit price and ability to issue additional equity and incur debt.
Changes in the legal and regulatory environment governing the oil and natural gas industry, particularly changes in the current Oklahoma forced pooling
system, could have a material adverse effect on NSLP’s business. Certain federal income tax deductions currently available with respect to oil and natural
gas exploration and development may be eliminated as a result of future legislation.
The New Source Group’s operations are subject to worker health and safety as well as environmental laws and regulations which may expose the New
Source Group and NSLP to significant costs and liabilities.
Climate change laws and regulations restricting emissions of GHGs could result in increased operating costs and reduced demand for the oil and natural
gas that the New Source Group produces for NSLP, while the physical effects of climate change could disrupt the production and result in significant costs
in preparing for or responding to those effects.
Member NYSE, SPIC
MLP COMPANY RISKS
PAA Company Risks
Risks to Achievement of Our Price Target of PAA
Reduced permitting and drilling activity in Plains All American’s areas of operations could pose a risk to our price target.
While we believe Plains All American’s Eagle Ford joint venture is a positive, Plains All American has not participated in many joint ventures and dealing
with a partner could pose its own challenges and ultimately a risk to our price target.
As with other MLPs, Plains All American faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either
of these fronts would pressure Plains All American units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Plains All American price target.
Risks as Filed in PAA’s SEC Documents
PAA may not be able to fully implement or capitalize upon planned growth projects.
PAA’s results of operations are influenced by the overall forward market for crude oil, and certain market structures or the absence of pricing volatility
may adversely impact PAA’s results.
A natural disaster, catastrophe, terrorist attack or other event, including attacks on PAA’s electronic and computer systems, could interrupt operations
and/or result in severe personal injury, property damage and environmental damage, which could have a material adverse effect on PAA’s financial
position, results of operations and cash flows.
If PAA does not make acquisitions or if they make acquisitions that fail to perform as anticipated, future growth may be limited. PAA’s acquisition strategy
involves risks that may adversely affect its business.
PAA’s growth strategy requires access to new capital. Tightened capital markets or other factors that increase PAA’s cost of capital could impair its ability
to grow.
Loss of PAA’s investment grade credit rating or the ability to receive open credit could negatively affect its ability to purchase crude oil, natural gas and
NGL supplies or to capitalize on market opportunities. PAA is exposed to the credit risk of its customers in the ordinary course of business activities.
PAA’s risk policies cannot eliminate all risks. In addition, any non-compliance with PAA’s risk policies could result in significant financial losses.
PAA’s operations are also subject to laws and regulations relating to protection of the environment and wildlife, operational safety, climate change and
related matters that may expose PAA to significant costs and liabilities.
PAA’s profitability depends on the volume of crude oil, refined product, natural gas and NGL shipped, processed, purchased, stored, fractionated and/or
gathered at or through the use of PAA’s facilities, which can be negatively impacted by a variety of factors outside of PAA’s control.
Fluctuations in demand, which can be caused by a variety of factors outside of PAA’s control, can negatively affect operating results.
PAA’s assets are subject to federal, state and provincial regulation. Rate regulation or a successful challenge to the rates charged on PAA’s U.S. and
Canadian pipeline systems may reduce the amount of cash PAA generates.
Some of PAA’s operations cross the U.S./Canada border and are subject to cross-border regulation.
Member NYSE, SPIC
MLP COMPANY RISKS
PAA sales of oil, natural gas, NGL and other energy commodities, and related transportation and hedging activities, expose them to potential regulatory
risks.
The adoption and implementation of new statutory and regulatory requirements for derivative transactions could have an adverse impact on PAA’s ability
to hedge risks associated with its business and increase the working capital requirements to conduct these activities.
Legislation and regulatory initiatives relating to hydraulic fracturing could reduce domestic production of crude oil and natural gas.
PAA may not be able to compete effectively in the transportation, facilities and supply and logistics activities, and PAA’s business is subject to the risk of a
capacity overbuild of midstream energy infrastructure in the areas where PAA operates.
PAA may in the future encounter increased costs related to, and lack of availability of, insurance.
The terms of PAA’s indebtedness may limit its ability to borrow additional funds or capitalize on business opportunities. In addition, PAA’s future debt level
may limit its future financial and operating flexibility.
Increases in interest rates could adversely affect PAA’s business and the trading price of its units. Changes in currency exchange rates could adversely
affect PAA’s operating results.
An impairment of goodwill or intangibles could reduce PAA’s earnings.
PAA’s natural gas storage facilities may not be able to deliver as anticipated, which could prevent PAA from meeting the contractual obligations and cause
PAA to incur significant costs.
Marine transportation of crude oil has inherent operating risks. Maritime claimants could arrest the vessels carrying PAA’s cargos.
PAA is dependent on use of third-party assets for certain of its operations.
Non-utilization of certain assets, such as PAA’s leased rail cars, could significantly reduce its profitability due fixed costs incurred to obtain the right to use
such assets.
Member NYSE, SPIC
MLP COMPANY RISKS
PAGP Company Risks
Risks to Achievement of Our Price Target of PAGP
If PAGP were to modify/reduce its incentive distribution rights, then there could be a risk to our price target.
As the general partner of PAA, PAGP is a levered investment on PAA. Any risks associated with PAA would also apply to PAGP and could pose a risk to our
price target.
As with other MLPs, Plains GP Holdings faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption on either
of these fronts would pressure Plains GP Holdings units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Plains GP Holdings price target.
Risks associated with PGAP. Us, we, our refer to PAGP
Our cash flow will be entirely dependent upon the ability of PAA to make cash distributions to AAP, and the ability of AAP to make cash distributions to us.
The IDRs AAP is entitled to receive may be limited or modified without the consent of our shareholders, which may reduce cash distributions to you.
Any modification to the IDRs may be based on assumptions that may not be realized, which may reduce cash distributions to you.
distributions will disproportionately affect the amount of cash distributions to which AAP is currently entitled.
A reduction in PAA's
PAA may issue additional limited partner interests or other equity securities, which may increase the risk that PAA will not have sufficient available cash to
maintain or increase its cash distribution level.
If distributions on our Class A shares are not paid with respect to any fiscal quarter, including those at the anticipated initial distribution rate, our Class A
shareholders will not be entitled to receive that quarter's payments in the future.
Our cash distribution policy and PAA's cash distribution policy limit our ability to grow.
Our rate of growth may be reduced to the extent we purchase equity interests from PAA, which will reduce the relative percentage of the cash we receive
from the IDRs. Restrictions in AAP's credit facility could limit its ability to make distributions to us, thereby limiting our ability to make distributions to our
Class A shareholders.
Substantially all of AAP's assets, including the IDRs and its indirect 2% general partner interest in PAA, are pledged under AAP's credit facility.
Our shareholders will not elect or have the power to remove our general partner and until certain conditions are met will not vote on our general partner's
directors. Upon completion of this offering, the Existing Owners will own a sufficient number of shares to allow them to prevent the removal of our general
partner.
You will experience immediate and substantial dilution of $ per Class A share in the net tangible book value of your Class A shares.
Our general partner may cause us to issue additional Class A shares or other equity securities, including equity securities that are senior to our Class A
shares, or cause AAP to issue additional securities, in each case without your approval, which may adversely affect you.
The ownership of our general partner may be transferred to a third party who could replace our current management team without shareholder consent.
Member NYSE, SPIC
MLP COMPANY RISKS
If PAA's unitholders remove PAA GP, AAP may be required to sell or exchange its indirect general partner interest and its IDRs and we would lose the
ability to manage and control PAA. You may not have limited liability if a court finds that shareholder action constitutes control of our business.
If in the future we cease to manage and control PAA, we may be deemed to be an investment company under the Investment Company Act of 1940. Our
partnership agreement restricts the rights of shareholders owning 20% or more of our shares.
If PAA's general partner, which is owned by AAP, is not fully reimbursed or indemnified for obligations and liabilities it incurs in managing the business and
affairs of PAA, its value, and, therefore, the value of our Class A shares, could decline.
The price of our Class A shares may be volatile, and a trading market that will provide you with adequate liquidity may not develop. Our Class A shares
and PAA's common units may not trade in relation or proportion to one another.
An increase in interest rates may cause the market price of our shares to decline.
Future sales of our Class A shares in the public market could reduce our Class A share price, and any additional capital raised by us through the sale of
equity or convertible securities may dilute your ownership in us. The underwriters of this offering may waive or release parties to the lock-up agreements
entered into in connection with this offering, which could adversely affect the price of our Class A shares.
The Existing Owners hold a majority of the combined voting power of our Class A and Class B shares.
If we or PAA fails to establish and maintain effective internal control over financial reporting, our ability to accurately report our financial results could be
adversely affected.
If we or PAA fails to develop or maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent
fraud. As a result, our shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our Class A
shares.
A valuation allowance on our deferred tax asset could reduce our earnings.
The NYSE does not require a limited partnership like us to comply with certain of its corporate governance requirements.
Conflicts of interest may arise as a result of our organizational structure and the relationships among us, PAA, our respective general partners, the
Existing Owners and affiliated entities.
The duties of our general partner's officers and directors may conflict with those of GP LLC who act on behalf of PAA GP and our general partner's officers
and directors may face conflicts of interest in the allocation of administrative time between our business and PAA's business.
Our partnership agreement defines our general partner's duties to us and contains provisions that reduce the remedies available to our shareholders for
actions that might otherwise be challenged as breaches of fiduciary or other duties under state law.
By purchasing our Class A shares, each Class A shareholder automatically agrees to be bound by the provisions of our partnership agreement. The
Existing Owners may have interests that conflict with holders of our Class A shares.
If we are presented with business opportunities, PAA will have the first right to pursue such opportunities. Our general partner's affiliates and the Existing
Owners may compete with us.
Our general partner has a call right that may require you to sell your Class A shares at an undesirable time or price.
Member NYSE, SPIC
MLP COMPANY RISKS
SUN Company Risks
Risks to Achievement of Our Price Target of SUN
With Susser Holdings providing much of the growth at Susser Petroleum Partners, a hiccup at Susser Holdings could cause Susser Petroleum Partners’
units to suffer, which could pose a risk to our price target.
While Susser Petroleum Partners has multiple supplier relationships, the Company does receive most of its fuel (60%) from two relationships. While we
do not foresee any issues, we would note that existing contracts with these two providers expires in August 2014 and July 2018. Any hiccup with these
providers could pose a risk to our price target.
An economic slowdown could negatively impact Susser Petroleum Partners’ fuel volumes. However, we would argue that Susser Petroleum Partners’
customer operations are in robust economic areas where an economic slowdown does not appear to be on the horizon. However, if a slowdown were to
occur, our price target could be at risk.
As with other MLPs, Susser Petroleum Partners faces regulatory risk that could hinder its daily operations or affect its tax advantage status. A disruption
on either of these fronts would pressure Susser Petroleum Partners units and pose a risk to our price target.
time. However, a sudden increase in interest rates could pose a risk to our Susser Petroleum Partners price target.
Risks as Filed in SUN’s SEC Documents
SUSS is SUSP’s largest customer, and SUSP is dependent on SUSS for a significant majority of revenues. Therefore, SUSP is indirectly subject to the
business risks of SUSS. If SUSS changes its business strategy, is unable to satisfy its obligations under various commercial agreements for any reason, or
significantly reduces the volume of motor fuel it purchases under the SUSS Distribution Contract, SUSP’s revenues will decline and its financial condition,
results of operations, cash flows and ability to make distributions to its unitholders will be adversely affected.
SUSP may not have sufficient cash from operations following the establishment of cash reserves and payment of costs and expenses, including cost
reimbursements to SUSP’s general partner, to enable SUSP to pay the minimum quarterly distribution to unitholders.
The growth of SUSP’s wholesale business depends in part on SUSS' ability to construct, open and profitably operate new Stripes® convenience stores.
If SUSS does not construct additional Stripes® convenience stores, SUSP’s growth strategy and ability to increase cash distributions to unitholders may
be adversely affected.
A substantial majority of SUSP’s revenues are generated under contracts that must be renegotiated or replaced periodically. If SUSP is unable to
successfully renegotiate or replace these contracts, then the results of operations and financial condition could be adversely affected.
SUSP’s financial condition and results of operations are influenced by changes in the prices of motor fuel, which may adversely impact SUSP’s margins, its
customers' financial condition and the availability of trade credit.
A significant decrease in demand for motor fuel in the areas SUSP serves would
reduce its ability to make distributions to unitholders.
Certain of SUSP’s contracts with suppliers currently have early payment and volume-related discounts which reduce the price paid for motor fuel that
SUSP purchases from them. If SUSP is unable to renew these contracts on similar terms, its gross profit will correspondingly decrease.
Member NYSE, SPIC
MLP COMPANY RISKS
SUSP currently depends on two principal suppliers for the majority of its motor fuel. A failure by a principal supplier to renew the supply agreement, a
disruption in supply or an unexpected change in supplier relationships could have a material adverse effect on the business.
SUSP is exposed to performance risk in its supply chain. If SUSP’s suppliers are unable to sell to them sufficient amounts of motor fuel products, they
may be unable to satisfy the customers' demand for motor fuel. Increasing consumer preferences for alternative motor fuels, or improvements in fuel
efficiency, could adversely impact SUSP’s business.
The wholesale motor fuel distribution industry is characterized by intense competition and fragmentation, and SUSP’s failure to effectively compete could
result in lower margins. The motor fuel business is subject to seasonal trends, which may affect SUSP’s earnings and ability to make distributions.
Severe weather could adversely affect SUSP’s business by damaging the suppliers or customers' facilities or communications networks. Negative events
or developments associated with SUSP’s branded suppliers could have an adverse impact on SUSP’s revenues.
If SUSP cannot otherwise agree with SUSS on fuel supply terms for volumes sold to SUSS in the future (other than for stores purchased by SUSP
pursuant to the sale and leaseback option), then SUSP will be required to supply volumes at a price equal to motor fuel cost plus the alternate fuel sales
rate, which will be substantially less than the fixed profit margin of three cents per gallon received for motor fuel sold pursuant to the SUSS Distribution
Contract. Furthermore, if certain of SUSP’s operating costs increase significantly, they may not realize the anticipated profit margin with regard to motor
fuel distributed to SUSS at the alternate fuel sales rate.
Due to SUSP’s lack of geographic diversification, adverse developments in operating areas could adversely affect results of operations and cash available
for distribution to unitholders. If SUSP does not make acquisitions on economically acceptable terms, their future growth may be limited.
Any acquisitions SUSP completes are subject to substantial risks that could reduce the ability to make distributions to unitholders.
SUSP’s operations are subject to federal, state and local laws and regulations pertaining to environmental protection and operational safety that may
require significant expenditures or result in liabilities that could have a material adverse effect on the business.
New, stricter environmental laws and regulations could significantly increase SUSP’s costs, which could adversely affect the results of operations and
financial condition.
SUSP is subject to federal, state and local laws and regulations that govern the product quality specifications of the refined petroleum products they
purchase, store, transport and sell to the distribution customers. The dangers inherent in the storage of motor fuel could cause disruptions in SUSP’s
operations and could expose them to potentially significant losses, costs or liabilities.
SUSP is not fully insured against all risks incident to its business.
Future litigation could adversely affect SUSP’s financial condition and results of operations.
SUSP relies on SUSS for transportation of all of its motor fuel, which in turn relies, in part, on third-party transportation providers. As a result, a change
in SUSS' transportation providers, a significant change in SUSS' relationship with its transportation providers or nonperformance or a disruption of motor
fuel transportation services by SUSS or by SUSS' transportation providers could have a material adverse effect on SUSP’s business.
SUSP relies on its suppliers to provide trade credit terms to adequately fund its ongoing operations.
Because SUSP depends on its senior management's experience and knowledge of the industry, SUSP could be adversely affected were they to lose key
members of the senior management team. SUSP relies on its information technology systems to manage numerous aspects of its business, and a
disruption of these systems or an act of cyber-terrorism could adversely affect the business. SUSP depends on cash flow generated by its subsidiaries.
Member NYSE, SPIC
MLP COMPANY RISKS
WPT Company Risks
Risks to Achievement of Our Price Target of WPT
Due to the nature of the storage business, if the crude oil markets were to see reduced volatility and/or significant backwardated
markets, customers could become discouraged from holding positions in refined products and/or crude oil, which could negatively
affect our price target.
While World Point Terminals has roughly 3+ years remaining on its contracts, an inability to successfully renew those contracts at
comparable rates could pose a risk to our price target.
Recent discussions have hinted at a higher interest rate environment. A significant move higher in interest rates could pose a risk to
our price target.
While World Point Terminals will rely on the debt and equity markets for growth, based on our estimates, we don't see an immediate
need to tap the markets. However, an inability to access the capital markets could pose a risk to our price target.
World Point Terminals faces regulatory risks that could hinder its daily operations or affect its tax advantaged status. A disruption on
that front could pose a risk to our price target.
Risks as Filed in SUSP’s SEC Documents
Please note that us, we and our refers to World Point Terminals, LP.
Our business would be adversely affected if the operations of our customers experienced significant interruptions. In certain circumstances, the
obligations of many of our key customers under their terminal services agreements may be reduced, suspended or terminated, which would adversely
affect our financial condition and results of operations.
Our financial results depend on the demand for the light refined products, heavy refined products, crude oil and other related services that we perform at
our terminals, among other factors, and general economic downturns could result in lower demand for these products for a sustained period of time.
We depend on Apex and a relatively limited number of our other customers for a significant portion of our revenues. The loss of, or material nonpayment
or nonperformance by, Apex or any one or more of our other customers could adversely affect our ability to make cash distributions to you.
If Apex satisfies only its minimum obligations under, or if we are unable to renew or extend, the terminaling services agreements we have with it, our
ability to make distributions to our unitholders will be reduced. Apex’s or our parent’s level of indebtedness could adversely affect our ability to grow our
business, our ability to make cash distributions to our unitholders and our credit ratings and profile.
We are exposed to the credit risk of our customers, and any material nonpayment or nonperformance by our key customers could adversely affect our
financial results and cash available for distribution. Our operations are subject to operational hazards and unforeseen interruptions, including
interruptions from hurricanes, floods or severe storms, for which we may not be adequately insured.
Reduced volatility in energy prices, certain market structures (including backwardated markets) or new government regulations could discourage our
storage customers from holding positions in refined petroleum products or crude oil, which could adversely affect the demand for our storage services.
Some of our current terminal services agreements are automatically renewing on a short-term basis, and may be terminated at the end of the current
Member NYSE, SPIC
MLP COMPANY RISKS
renewal term upon requisite notice. If one or more of our current terminal services agreements is terminated and we are unable to secure comparable
alternative arrangements our financial condition and results of operations will be adversely affected.
Competition from other terminals that are able to supply our customers with comparable storage capacity at a lower price could adversely affect our
financial condition and results of operations.
Our expansion of existing assets and construction of new assets may not result in revenue increases and will be subject to regulatory, environmental,
political, legal and economic risks, which could adversely affect our operations and financial condition.
If we are unable to make acquisitions on economically acceptable terms, our future growth would be limited, and any acquisitions we make may reduce,
rather than increase, our cash generated from operations on a per unit basis.
Our right of first offer to acquire Apex’s existing terminaling assets and any terminaling and ancillary assets that it may acquire or construct in the future
is subject to risks and uncertainty, and ultimately we may not acquire any of those assets.
Our operations are subject to federal and state laws and regulations relating to product quality specifications and we could be subject to damages based
on claims brought against us by our customers or lose customers as a result of the failure of products we distribute to meet certain quality specifications.
Revenues we generate from excess storage fees vary based upon the product volume handled at our terminals and the activity levels of our customers.
Any short- or long-term decrease in the demand for the light refined products, heavy refined products and crude oil we handle, or any interruptions to
the operations of certain of our customers, could reduce the amount of cash we generate and adversely affect our ability to make distributions to our
unitholders.
Any reduction in the capability of our customers to obtain access to barge facilities, third party pipelines or other transportation facilities, or to continue
utilizing them at current costs, could cause a reduction of volumes transported through our terminals.
Many of our terminal and storage assets have been in service for several decades, which could result in increased maintenance or remediation
expenditures, which could adversely affect our business, results of operations, financial condition and our ability to make cash distributions to our
unitholders.
We may incur significant costs and liabilities in complying with environmental, health and safety laws and regulations, which are complex and frequently
changing. We could incur significant costs and liabilities in responding to contamination that occurs at our facilities.
Climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating and capital costs and reduced
demand for our storage services. Debt we incur in the future may limit our flexibility to obtain financing and to pursue other business opportunities.
Restrictions in our revolving credit facility could adversely affect our business, financial condition, results of operations, ability to make distributions to
unitholders and value of our common units. Increases in interest rates could adversely impact our unit price, our ability to issue equity or incur debt for
acquisitions or other purposes, and our ability to make cash distributions at our intended levels. The adoption of derivatives legislation by Congress could
have an adverse impact on our customers’ ability to hedge risks associated with their business.
Our executive officers and certain key personnel are critical to our business, and these officers and key personnel may not remain with us in the future.
If we fail to develop or maintain an effective system of internal controls, we may not be able to report our financial results timely and accurately or
prevent fraud, which would likely have a negative impact on the market price of our common units.
None of the proceeds from the sale of common units by the selling unitholder in this offering will be available to fund our operations or to pay
distributions. Terrorist attacks aimed at our facilities or surrounding areas could adversely affect our business.
Member NYSE, SPIC
MLP COMPANY RISKS
Our general partner and its affiliates, including our sponsors, have conflicts of interest with us and limited duties, and they may favor their own interests
to the detriment of us and our unitholders. Our general partner intends to limit its liability regarding our obligations.
Our partnership agreement requires that we distribute all of our available cash, which could limit our ability to grow and make acquisitions. Actions taken
by our general partner may affect the amount of cash available for distribution to unitholders or accelerate the right to convert subordinated units. Our
partnership agreement replaces our general partner’s fiduciary duties to holders of our common units with contractual standards governing its duties.
Our partnership agreement restricts the remedies available to holders of our common and subordinated units for actions taken by our general partner
that might otherwise constitute breaches of fiduciary duty. Our parent and other affiliates of our general partner, including Apex, may compete with us.
Our sponsors, as the initial owners of our incentive distribution rights, may elect to cause us to issue common units to them in connection with a resetting
of the target distribution levels related to the incentive distribution rights, without the approval of the conflicts committee of their board of directors or
the holders of our common units. This could result in lower distributions to holders of our common units.
Holders of our common units have limited voting rights and are not entitled to elect our general partner or its directors. Even if holders of our common
units are dissatisfied, they cannot initially remove our general partner without its consent.
Unitholders will experience immediate and substantial dilution in pro forma net tangible book value of $15.25 per common unit. Our general partner
interest or the control of our general partner may be transferred to a third party without unitholder consent. Our general partner has a limited call right
that may require unitholders to sell their common units at an undesirable time or price. We may issue additional units without unitholder approval, which
would dilute existing unitholder ownership interests.
The market price of our common units could be adversely affected by sales of substantial amounts of our common units in the public or private markets,
including sales by our parent or other large holders. Our partnership agreement restricts the voting rights of unitholders owning 20% or more of our
common units.
Reimbursements due to our general partner and its affiliates for services provided to us or on our behalf will reduce cash available for distribution to our
common unitholders. The amount and timing of such reimbursements will be determined by our general partner, and there are no limits on the amount
that we may be required to pay.
Our general partner’s discretion in establishing cash reserves may reduce the amount of cash available for distribution to unitholders.
While our partnership agreement requires us to distribute all of our available cash, our partnership agreement, including provisions requiring us to make
cash distributions contained therein, may be amended.
There is no existing market for our common units, and a trading market that will provide you with adequate liquidity may not develop. The price of our
common units may fluctuate significantly, and unitholders could lose all or part of their investment.
Your liability may not be limited if a court finds that unitholder action constitutes control of our business. Except in limited circumstances, our general
partner has the power and authority to conduct our business without unitholder approval.
Contracts between us, on the one hand, and our general partner and its affiliates, on the other hand, will not be the result of arm’s-length negotiations.
Common unitholders will have no right to enforce obligations of our general partner and its affiliates under agreements with us. Our general partner
decides whether to retain separate counsel, accountants or others to perform services for us.
The NYSE does not require a publicly traded partnership like us to comply with certain of its corporate governance requirements. We will incur increased
costs as a result of being a publicly traded partnership.
Member NYSE, SPIC
APPENDIX
Investment Ratings
OVERWEIGHT (O) – The stock’s total return is expected to be greater than the total return of the company’s industry sector, on a risk-adjusted basis, over
the next 12 months.
EQUAL-WEIGHT (E) – The stock’s total return is expected to be equivalent to the total return of the company’s industry sector, on a risk-adjusted basis,
over the next 12 months.
UNDERWEIGHT (U) – The stock’s total return is expected to be less than the total return of the company’s industry sector, on a risk-adjusted basis, over
the next 12 months.
VOLATILE (V) – The stock’s price volatility is potentially higher than that of the company’s industry sector. The company stock ratings may reflect the
analyst’s subjective assessment of risk factors that could impact the company’s business.
Distribution of Stephens Inc.'s Ratings (as of 09/30/14)
Rating
BUY
HOLD
SELL
%
58
41
1
NA-Not Applicable
NM-Not Meaningful
NE-No Estimate
% Investment Banking Clients
(Past 12 Months)
22
11
0
NR-Not Rated
Susp-Rating Suspended
UR-Under Review
Codes
ADJ-Adjusted EPS
ADJE-Adjusted EBITDA Per Share
C-Canadian Dollars
CS-Cash EPS
OP-Operating EPS
PF-Pro forma EPS
This report has been prepared solely for informative purposes as of its stated date and is not a solicitation, or an offer, to buy or sell any security. It does not
purport to be a complete description of the securities, markets or developments referred to in the material. Information included in the report was obtained
from internal and external sources which we consider reliable, but we have not independently verified such information and do not guarantee that it is
accurate or complete. Such information is believed to be accurate on the date of issuance of the report, and all expressions of opinion apply on the date of
issuance of the report. No subsequent publication or distribution of this report shall mean or imply that any such information or opinion remains current at
any time after the stated date of the report. Prices, yields, and availability are subject to change with the market. Nothing in this report is intended, or should
be construed, as legal, accounting, regulatory or tax advice. Any discussion of tax attributes is provided for informational purposes only, and each investor
should consult his/her/its own tax advisors regarding any and all tax implications or tax consequences of any investment in securities discussed in this report.
We do not undertake to advise you of any changes in any such information or opinion. Additional information available upon request.
Each analyst primarily responsible for the preparation of a portion or portions of this report certifies that (i) all views expressed by the analyst accurately
reflect the analyst’s personal views about the subject companies and their securities, and (ii) no part of the analyst’s compensation was, is, or will be, directly
or indirectly, related to the specific recommendations or views expressed by the analyst in this report. This report constitutes a compendium report (covers
six or more subject companies). As such, Stephens Inc. chooses to provide specific disclosures for the companies mentioned by reference. To access current
disclosures for the companies in this report, clients should refer to https://stephens2.bluematrix.com/sellside/Disclosures.action or contact your
Stephens Inc. representative for additional information.
Member NYSE, SPIC
INSTITUTIONAL SALES
BOB STATEN-MANAGER OF INSTITUTIONAL EQUITY SALES AND EQUITY TRADING
BOSTON
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501.377.2256
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501.377.8295
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SALES TRADING LITTLE ROCK
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501.377.2078
SALES TRADING BOSTON
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617.239.7514
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SALES TRADING CHICAGO
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312.292.5764
312.292.5765
SALES TRADING NEW YORK
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Rhonda LeDoux
212.891.1724
212.891.1737
212.891.1736
212.891.1738
212.891.1731
212.891.1753
TRADING NEW YORK
Jimmy Law
Anthony Pignio
212.891.1757
212.891.1741
OTC TRADING LITTLE ROCK
John Blackwell
Leon Lants
Brian Wardle
501.377.2557
501.377.2267
501.377.3468
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Luke Coop
501.377.8029
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Stephens
Research Department Directory
Executive Assistant/Supervisor: Dena Page (501) 377-6368
ENERGY
CONSUMER
Food and Agribusiness
Farha Aslam, Analyst
Eric Gottlieb, Associate
Connor Hustava, CFA, Associate
Yerlie Chatelain, Assistant
(212) 891-1778
(212) 891-1784
(212) 891-1762
(212) 891-1706
Healthy Living
Joe Edelstein, CFA, Analyst
Grace Tokarski, Assistant
(312) 292-5762
(312) 292-5750
Restaurants
Will Slabaugh, Analyst
Billy Sherrill, Associate
Angela Crowe, Assistant
(501) 377-2259
(501) 377-8513
(501) 377-2347
Retail/Broadlines
John R. Lawrence, Analyst
Ben Bienvenu, Associate
(901) 681-1346
(901) 681-1347
(501) 377-2347
Retail/Hardlines
Rick Nelson, CFA, CPA,
Analyst
Nicholas Zangler, CFA, Associate
(312) 292-5768
(312) 292-5753
(312) 292-5750
Retail/Softlines
Rick Patel, CFA, Analyst
Shreya Jawalkar, Associate
Yerlie Chatelain, Assistant
(212) 891-1715
(212) 891-1709
(212) 891-1706
HEALTHCARE
TECHNOLOGY
Will Green, Analyst
Matt Beeby, Associate
Kat Versfelt, Assistant
(817) 900-5712
(817) 900-5711
(817) 900-5700
Diagnostics and Life Science Tools
Drew Jones, Analyst
(501) 377-2369
Garrett Phelps, Associate
(501) 377-8221
Christy Barker, Assistant
(501) 377-2057
Business Services
Brett Huff, CFA, Analyst
James Rutherford, Associate
Sonja Kenyon, Assistant
(501) 377-8068
(501) 377-2303
(501) 377-8104
Ben Wyatt, Analyst
Matt Beeby, Associate
(817) 900-5714
(817) 900-5711
(817) 900-5700
Healthcare IT
Mohan Naidu, CFA, Analyst
Michael Ott, Associate
(312) 292-5751
(312) 292-5752
(312) 292-5750
Communications Technology and
Intellectual Property
Tim Quillin, CFA, Analyst
Aaron Fogle, Associate
(501) 377-8078
(501) 377-8065
(501) 377-8104
Matt Schmid, Analyst
(817) 900-5716
(817) 900-5700
Healthcare Services
Dana Hambly, CFA, Analyst
Tyler Pearson, Associate
(615) 279-4329
(615) 279-4326
(501) 377-2057
Ben Wyatt, Analyst
(817) 900-5714
(817) 900-5700
Medical Devices
Chris Cooley, CFA, Analyst
Blevin Brown, Associate
(501) 377-2516
(501) 377-8506
(501) 377-2057
Oilfield Services
Matthew Marietta, Analyst
Brooks Braden, Associate
Chris Denison, Associate
(713) 993-4211
(713) 993-4204
(713) 993-4214
(817) 900-5700
FINANCIAL SERVICES
Insurance Brokerage
John Campbell, Analyst
Hayden Blair, Associate
(501) 377-6362
(501) 377-8215
(501) 377-8167
Real Estate Services
John Campbell, Analyst
Hayden Blair, Associate
(501) 377-6362
(501) 377-8215
(501) 377-8104
Regional Banks
Matt Olney, CFA, Analyst
John Curtis, Associate
Matthew Sealy, Associate
(501) 377-2101
(501) 377-8095
(501) 377-3721
(501) 377-2347
Regional Banks
Tyler Stafford, Analyst
John Curtis, Associate
Matthew Sealy, Associate
(501) 377-8362
(501) 377-8095
(501) 377-2281
(501) 377-2347
Specialty Finance
J.R. Bizzell, Analyst
Eric Jaschke, Associate
(501) 377-8237
(415) 548-6912
(501) 377-2347
INDUSTRIALS
Building Materials and Construction Svcs.
Trey Grooms, Analyst
(501) 377-2318
Blake Hirschman, Associate
(501) 377-8046
Drew Lipke, Associate
(501) 377-2108
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Industrial Products and Services
Matt Duncan, CFA, Analyst
Will Steinwart, Associate
(501) 377-3723
(501) 377-8303
(501) 377-2347
Transportation/Airfreight and Logistics/Maritime
Jack Atkins, Analyst
(501) 377-2298
Andrew Hall, Associate
(501) 377-2562
(501) 377-8104
Transportation/Railroad and
Transportation Suppliers
Justin Long, Analyst
Brian Colley, Associate
Transportation/Truckload and
Less-Than-Truckload
Brad Delco, Analyst
Scott Schoenhaus, Associate
(501) 377-2036
(501) 377-8231
(501) 377-8104
(501) 377-8057
(212) 891-1714
(501) 377-8104
Infrastructure Software and Security
Jonathan Ruykhaver, CFA,
Analyst
(615) 279-4331
Nathan Leiphardt, Associate
(615) 279-4376
(501) 377-8167
Media
Kyle Evans, Analyst
Tommy Moll, Associate
Dena Page, Executive Assistant
(501) 377-6376
(501) 377-6306
(501) 377-6368
Power & Industrial Technology
Ben Hearnsberger, Analyst
Brandon Wright, Associate
(512) 542-3272
(501) 377-2065
(501) 377-2057
Semiconductors
Harsh Kumar, Analyst
Richard Sewell, Associate
(901) 681-1344
(901) 681-1345
(501) 377-2347
Software as a Service
Alex Zukin, Analyst
Scott Wilson, Associate
(415) 548-6907
(415) 548-6906
(501) 377-8167
Telecommunications Services
Barry McCarver, Analyst
Brian Hawthorne, Associate
(501) 377-8131
(501) 377-6372
(501) 377-2057
PRODUCT MANAGEMENT GROUP
Kelley Wilkins, Director
Supervisory Analyst
Betty Farrar, Supervisory Analyst
Martha Graham, Supv. Analyst
Jennifer Keeling, Supv. Analyst
Natacha Hammerstad, Editorial Asst.
(501) 377-2020
(501) 377-8183
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(713) 993-4233
stephens.com

December 2014

Transcription

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