News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. As a reminder, the company currently sells for $33.62 per share. Brian Kahn, Franchise Groups President and CEO stated, I am proud of FRGs overall performance in the first quarter. They purchased a total of 106,154 shares worth more than $4,003,872.11. I am not receiving compensation for it (other than from Seeking Alpha). DELAWARE, Ohio, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (Franchise Group, FRG or the Company) today announced the financial results for its fiscal fourth quarter and fiscal year ended December 31, 2022. But opting out of some of these cookies may have an effect on your browsing experience. Badcock as a business segment has generated $52.27 million in EBITDA over the last two quarters. The series of successful acquisitions left the company in good relations with possible backers as well as a much better-looking balance sheet. Sources: FactSet, Dow Jones, Stock Movers: Gainers, decliners and most actives market activity tables are a combination of NYSE, Nasdaq, NYSE American and NYSE Arca listings. The $1.1B market cap has a $500mm buy-back program approved and in place while at the same time distributing 25% of EBITDA in terms of dividends to the shareholders resulting in a 7.43% yield. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP EPS are financial measures that are not prepared in accordance with GAAP. Necessary cookies are absolutely essential for the website to function properly. Mr. Laurence began his career at Bowles Hollowell Conner & Co., a boutique mergers and acquisitions advisory firm purchased by First Union Corp. Mr. Laurence graduated with a B.A. Pet Supplies Plus Overview (FRG August Investor Presentation). Mr. Evans holds a Bachelor of Science degree in Business Administration from East Carolina University. Furthermore, its sheer size does not allow the conglomerate to delve into the companies with which Franchise Group does business. in Economics from Harvard University. During the last twelve months, Franchise Group insiders bought shares 5 times. Data are provided 'as is' for informational purposes only and are not intended for trading purposes. Readers are cautioned not to rely on the forward-looking statements contained in this press release. Our financial performance in the fourth quarter was in line with the outlook we provided in November, stated Brian Kahn, Franchise Groups President and CEO. Management believes the presentation of these measures is useful to investors as supplemental measures in evaluating the aggregate performance of the Companys operating businesses and in comparing its results from period to period because they exclude items that the Company does not believe are reflective of its core or ongoing operating results. There are few things in a company we like to see more than a management team that has its incentives completely aligned with the rest of the shareholders. Franchise Group is operating a roll-up strategy of acquiring mostly poorly-led, in-distress businesses through leveraged buyouts. Franchise Group on the other hand returns value to shareholders both through a generous dividend policy and a share buy-back program. We have it now, we're very excited about that and I don't think anybody knows our businesses better than we do, which is a good thing. Franchise Group chief executive officer Brian Kahn outlined why his company was interested in purchasing Kohl's. On top of that, the company has institutional ownership estimated at 54.55%, with roughly 190 institutional holders owning 22 million shares. Mr. Kahn received a B.A. Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright Refinitiv. Sylvan Learning - has been one of the smaller and stranger acquisitions completed by FG. Sources: FactSet, Tullett Prebon, Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. From a reporting perspective, fiscal 2023 will include 52 weeks of operating results compared to fiscal 2022 which had 53 weeks of operating results creating a benefit of approximately $70 million in revenue and $11 million of Adjusted EBITDA. We expect organic growth in 2023 to drive increased EBITDA and cash flow.. Adjusted EBITDA is a financial measure that is not prepared in accordance with GAAP. Announces Approval of Quarterly Common Stock Dividend. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Breaking it down by segment, American Freight brought in $216.3 million in revenue for the quarter with a net loss of $21.7 million. We finished the year with 259 new territories sold and a backlog across all brands of 482 locations. Company Participants. Presenter SpeechAndrew Kaminsky Thank you, Gary. Copyright FactSet Research Systems Inc. All rights reserved. Announces Approval of Quarterly Preferred Dividend, Franchise Group, Inc. AF was acquired by the conglomerate in late December of 2019, for a sum of $450 million. Learn More on Franchise Group's active insiders. attempted to close down a deal valued at slightly more than five times its equity size. Copyright 2023 Surperformance. Prior to his corporate roles, Mr. Kaminsky spent over 15 years as an investment banker, including as a Managing Director at Oppenheimer & Co. Inc. and CIBC. Brian R. Kahn's largest purchase order was, The most recent transaction was a purchase order of, Franchise Group, Inc's most recent insider trade came on May 11, 2022 by Franchise Group in early June proposed a bid of $60 per share to acquire Kohls at a roughly $8 billion valuation. Your California Privacy Rights/Privacy Policy. Follow Bloomberg reporters as they uncover some of the biggest financial crimes of the modern era. Learn More about Brian Randall Kahn's net worth. The addition of Sylvan provides Franchise Groupanother growing franchise concept and further diversification into consumer services. Mr. Kahn has also served as a director of Aarons, Inc., a leader in the sales and lease ownership and specialty retailing of residential furniture, consumer electronics, home appliances and accessories from 2014 until 2015, Integral Systems, Inc., a provider of products, systems and services for satellite command and control, telemetry and digital signal processing, data communications, enterprise network management and communications information assurance, from 2011 to 2012, and Babcock & Wilcox Enterprises, Inc. (Babcock & Wilcox), a global leader in energy and environmental technologies and services for the power and industrial markets, from 2018 to 2020. The company is one of the largest home-furnishing retailers in the country with 384 stores mostly operating through the independent dealership model. Please. See Non-GAAP Financial Measures and Key Metrics.. 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However, the much larger issue at hand is that the relatively small size of the company poses a risk considering the business model, as the company remains highly vulnerable to failing acquisitions, being effectively two failed acquisitions from disaster. Institutional ownership has been on a steady rise. Although amortization of acquired intangible assets is excluded from these non-GAAP measures, it is important for investors to understand that such intangible assets support revenue generation. Mr. Evans has served as Chief Franchising Officer of Franchise Group, Inc. since August 1, 2020. WebView Brian Kahns profile on LinkedIn, the worlds largest professional community. I have no business relationship with any company whose stock is mentioned in this article. WebJob. Conference Call InformationFranchise Group will conduct a conference call on February 28th at 4:30 P.M. Additional disclosure: We plan to initiate a position in the company and make it a core holding over the course of the upcoming weeks and months. Participants should ask to be joined to the Franchise Group Inc. call. We finished the year with 259 new territories sold and a backlog across all brands of 482 locations. Most recently, on Monday, May 9th, Brian Randall Kahn bought 100,000 shares of Franchise Group stock. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. The current dividend yield is in line with the most attractive dividend payers in the market, while dividend growth over the past couple of years casts a tall shadow upon even the most appealing dividend growth players. The company is being led by an experienced and well-respected value-oriented investor, Brian Kahn. Following in the footsteps of Charlie Munger. Our financial performance in the fourth quarter was in line with the outlook we provided in November, stated Brian Kahn, Franchise Groups President and CEO. Live from New Why? For the year, American Freights revenues totaled $883.5 million with a net loss of $103.4 million; Badcock added $919.1 million in revenues with a loss of $38.1 million, and Buddys revenues totaled $57.4 million with a net gain of $6.44 million in revenues. For the fourth quarter of fiscal 2022, total reported revenue for Franchise Group was approximately $1.1 billion, net loss from continuing operations was approximately $0.7 million or $0.08 per fully diluted share, Adjusted EBITDA was approximately $65.3 million and Non-GAAP EPS was $0.47 per share. The company was founded by Danny Hewitt and John T. Hewitt on September 1, 1997 and is headquartered in Delaware, OH. Vintage is a value-oriented, operations-focused, private and public equity investor specializing in the consumer, aerospace and defense, and manufacturing sectors. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Insiders currently own close to a third of the shares outstanding and there has been a very clear historic record of major insider ownership. The noise surrounding the recent developments has been picked up by shorts sellers who at this point sold short roughly 10% of the float, another indication that there is no clear consensus on the future prospects of Franchise Group, at least in the short to mid-term. WebView Brian Williams profile on LinkedIn, the worlds largest professional community. This website uses cookies to improve your experience while you navigate through the website. Mr. Laurence joined the Firm in 2009 and is responsible for all aspects of transaction sourcing, due diligence and execution. Source: FactSet. Net income from continuing operations was $36 million or $0.83 per fully diluted share. Franchise Group's insider roster includes Patrick Cozza (Director), Brian Kahn (CEO), Martin Lamb (Director), and Andrew Laurence (EVP). Mr. Kahn has served as the Chief Executive Officer of Franchise Group, Inc. since October 2, 2019. The exact process described above has allowed the relatively small and unknown company to grow into a formidable franchise conglomerate in a matter of only a few years. Most recently, on Monday, May 9th, Brian Kahn has served as the Chief Executive Officer of Franchise Group since October 2, 2019. The Vitamin Shoppe - was the first major step management took in building the franchise conglomerate we know today. Yeah, so we authorized, at our two Board meetings ago, we authorized a $500 million buyback over the next few years. We didn't have an open window because of the Kohl's transaction and then we got into the quiet period. The segment delivered $137.20 million in EBITDA for the last year and so far in the first six months of 2022 has generated $78.90 million in EBITDA. No matter which way one looks at things, Franchise Group is a unique and mesmerizing special situation investment that could quite possibly be the most attractive investment opportunity we have encountered this year. Reconciliation of Non-GAAP Net Income and EPSBelow are reconciliations of Net Income/(Loss) from continuing operations to Non-GAAP Net Income and Net Income/(Loss) from continuing operations per diluted share to Non-GAAP EPS for the three and twelve months ended December 31, 2022. Brian Randall Kahn is a businessperson who founded Kahn Capital Management LLC and Vintage Capital Management LLC and who has been at the head of 6 different companies. Brian Kahn, sitting at the helm of the Franchise Group, is displaying a master class in capital allocation that turned a relatively negligible company into a formidable franchise holding conglomerate. So I think we'll be opportunistic as we can be. Source: Kantar Media, President, Chief Executive Officer & Director, Chief Administrative Officer & Executive VP, Franchise Group, Inc. Is this happening to you frequently? Brian R. Kahn, Chief Executive Officer, Net loss was $710,000 or 8 cents per fully diluted share, compared with net income of $147.2 million in 2021, or $3.53 per share. Ms. McMillan-McWaters holds a Bachelor of Arts degree from Seton Hall University and a Juris Doctorate from the University of North Carolina School of Law. Chart Data in Insider Trading History Table. 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