Unbelievable Stories Of: Franchise Group, Inc. (NASDAQ: FRG)

Franchise Group, Inc. (NASDAQ: FRG) changed 5.47% to recent value of $22.75. The stock transacted 94969 shares during most recent day however it has an average volume of 56.51K shares. It spotted trading -17.24% off 52-week high price. On the other end, the stock has been noted 295.65% away from the low price over the last 52-weeks.

Franchise Group, Inc. (FRG) recently reported the results of its first quarter ended March 28, 2020.  For the first quarter of 2020, total stated revenue for Franchise Group was $592.6M, GAAP Net Income was $61.9M or $2.51 per share, Proforma Adjusted EBITDA was $112.2M and Non-GAAP EPS was $2.11 per share.  In calculating GAAP EPS, the Company utilized 23.7M weighted average fully diluted shares outstanding for the first quarter.  In calculating Non-GAAP EPS and formulating guidance, the Company utilized 35.1M fully diluted shares outstanding.  The Company ended the quarter with $147M in cash and outstanding debt of $811.5M.

During the first quarter of 2020, Franchise Group completed the $450M acquisition of American Freight, closed on a $675M credit facility, and paid another quarterly dividend of $0.25 per share.  Despite the impacts of Covid-19, the Company was able to exceed its before reported guidance for the first quarter Because of its resilient business model and achievement of operational efficiencies.

Brian Kahn, Franchise Group’s President and CEO stated, “We established Franchise Group with the ultimate goal of paying dependable and growing dividends to its shareholders.  We have assembled a mix of franchise and franchisable businesses that provide us balance and resiliency which have allowed us to be successful before, during, and after the recent crisis.  We believe our performance to date validates our strategy and is evidenced by our financial results and updated guidance.”

Mr. Kahn continued, “As all of us know, the last few months have been unprecedented in countless ways.  We have been transparent with our stakeholders and have been communicating our operating plans and performance through the pandemic.  I want to reiterate that we have continued to prioritize the health and safety of our employees, consumers and communities. I am very grateful for the support and professionalism of our operating management teams throughout this crisis and our successes are a reflection of their strong performance.”

FRG has a gross margin of 65.50% and an operating margin of # ref while its profit margin remained # ref for the last 12 months. Its earnings per share (EPS) expected to touch remained # ref for this year while earning per share for the next 5-years is expected to reach at 10.00%.  The company has 35.15M of outstanding shares and 18.12M shares were floated in the market. According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of 34.19% from the mean of 20 days, 61.79% from mean of 50 days SMA and performed 44.35% from mean of 200 days price. Company’s performance for the week was 13.13%, 51.46% for month and YTD performance remained -1.94%.

 

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