You're NOT too late to profit on the country's greatest oil play… Longtime S&A readers know the Eagle Ford… It's a layer of rock in Southeast Texas that's rich in oil and gas. A few years back, some pioneering companies targeted this area. They had a theory that new fracking technology would allow them to economically recover oil and gas from the shale. They were right. And from 2009-2010, oil production in the Eagle Ford increased by more than 14,000 barrels per day. This was a phenomenal 1,700% increase. Over the next three years, oil production rose by another 3,300%. The numbers keep growing… and the opportunity for investors is still there… You might be hearing that the Eagle Ford's "glory days" are behind it. But as I told you last year, the numbers more than prove otherwise.
Top Oil Service Companies To Own In Right Now: Santos Ltd (STOSF)
Santos Limited is an oil and gas producer, supplying Australian and Asian customers. The Company is primarily engaged in the exploration for, and development, production, transportation and marketing of, hydrocarbons. The Company develops major oil and gas liquids businesses in Australia, and operates in all mainland states and the Northern Territory. The Company has exploration-led Asian portfolio, with a focus on three core countries: Indonesia, Vietnam and Papua New Guinea. The Company operates in four business units of Eastern Australia; Western Australia and Northern Territory; Asia Pacific, and Gladstone LNG (GLNG). The Asia Pacific operating segment includes operations in Indonesia, Papua New Guinea, Vietnam, India and Bangladesh. Advisors’ Opinion:
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) — Australian stocks fell early Wednesday, tracking a weak lead from the U.S. but with a few blue-chip miners higher after gains for some commodities overnight. The S&P/ASX 200 (AU:XJO) retreated 0.4% to 5,237.80 after similar losses for the main Wall Street indexes, with the Australian benchmark trading around its lowest level since October. Among the major decliners, Qantas Airways Ltd. (AU:QAN) (QUBSF) lost 2.5%, Harvey Norman Holdings Ltd. (AU:HVN) (HNORY) gave up 1.3%, and Incitec Pivot Ltd. (AU:IPL) (ICPVY) fell 1.8%. Santos Ltd. (AU:STO) (STOSF) fell 2.6% on indication it will miss its lowered production guidance for 2013, according to the Australian Financial Review. On the upside, top miners BHP Billiton Ltd. (AU:BHP) (BHP) and Rio Tinto Ltd. (AU:RIO) (RIO) rose 0.3% and 0.7%, respectively, while Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) traded 1% higher. Shares of global shopping-mall developer Westfield Group Australia (AU:WDC) (WEFIF) were on halt
Top Oil Service Companies To Own In Right Now: Dynegy Inc (DYN)
Dynegy Inc. (Dynegy), incorporated in 2007, is a holding company and conducts the business operations through its subsidiaries. Dynegy’s primary business is the production and sale of electric energy, capacity and ancillary services from the fleet of 16 operating power plants in six states totaling approximately 11,600 megawatts of generating capacity. The Company sells electric energy, capacity and ancillary services on a wholesale basis from its power generation facilities. Its customers include Regional Transmission Organization (RTOs) and Independent System Operators (ISOs), integrated utilities, municipalities, electric cooperatives, transmission and distribution utilities, industrial customers, power marketers, financial participants, such as banks and hedge funds, and other power generators. Dynegy operates in three segments: the Coal segment (Coal), the Gas Segment (Gas) and the Dynegy Northeast Segment (DNE). In September 2011, it acquired direct ownership of Dy negy Coal Holdco, LLC. In July 2012, the Company announced that it has filed a voluntary petition to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, Poughkeepsie Division. It emerged from bankruptcy, on October 1, 2012. In May 2013, the Company sold its Roseton power generation facility (Roseton) to a subsidiary of Castleton Commodities International LLC (CCI).
Dynegy’s Coal segment consists of four operating coal-fired power generation facilities and two operating natural gas-fired peaker facilities in Illinois with a total generating capacity of 3,132 megawatts. On November 17, 2011, it permanently retired the 176 megawatts Vermilion power generation facility. As of December 31, 2011, the facilities operated entirely within MISO. Its Coal segment is primarily a fleet of baseload coal facilities, located in Illinois. The MISO market includes all of Wisconsin and portions of Michigan, Kentucky, Indian! a, Illinois, Nebraska, Kansas, Missouri, Iowa, Minnesota, North Dakota, Montana and Manitoba, Canada. MISO is as an independent RTO.
Dynegy’s Gas segment consists of seven operating natural gas-fired power generation facilities located in California (two), Nevada (one), Illinois (one), Pennsylvania (one), New York (one), and Maine (one), and one fuel-oil fired power generation facility located in California, totaling 6,771 megawatts of electric generating capacity. On November 7, 2011, it deconsolidated DH, which indirectly owns all of its assets in the Gas segment. The PJM market includes all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The Company’s Kendall and Ontelaunee facilities located in Illinois and Pennsylvania operate in PJM with an aggregate net generating capacity of 1,780 megawatts.
Dynegy’s DNE segment consists of the Roseton and Danskammer facilities located in Newburgh, New York, with a total capacity of 1,693 megawatts. Its total of 1,570 megawatts of generation capacity relates to leased units at the two facilities. The Company’s Roseton and Danskammer facility sites are adjacent and share common resources, such as fuel handling, a docking terminal, personnel and certain associated systems.
- [By Bram de Haas]
Dynegy Inc (DYN) emerged from bankruptcy last year. The share price didn’t really go anywhere. In the meantime 2013 free cash flow guidance is being revised upward to $190 million – $215 million and a deal to take over capacity from Ameren Corp (AEE) is likely to be finalized in the 4th quarter. On the basis of current cash flow, the company is fairly valued. If the Ameren facilities are added in, the cash flow of the combined facilities is greatly undervalued.
- [By Justin Loiseau]
With a successful $900 million asset sale to Dynegy (NYSE: DYN ) in March, Ameren has three leftover gas-fired energy centers it still needs to offload.
- [By Justin Loiseau]
Ameren (NYSE: AEE ) and Dynegy (NYSE: DYN ) aren’t letting regulatory snafus get in the way of their plans. The two companies published a statement this week assuring investors that despite the Illinois Pollution Control Board’s denial of a variance relief transfer, Dynegy still plans to acquire Ameren Energy Resources.
Top Oil Service Companies To Own In Right Now: Ishares Msci Italy Index Fund (EWI)
iShares MSCI Italy Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index (the Index). The Index seeks to measure the performance of the Italian equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. Component companies are adjusted for available float and must meet objective criteria for inclusion in the Index. The Index is reviewed quarterly.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund’s investment advisor is Barclays Global Fund Advisors.
- [By Tom Aspray]
This is quite a bit better than the 9.2% gain of the iShares MSCI Italy (EWI) or the 8.9% rise in the iShares MSCI Austria (EWO). All three have done significantly better than the Spyder Trust (SPY), which is up 3.6%. The French and German country ETFs have not yet moved above their late 2013 highs.
- [By Dan Caplinger and Mike Klesta]
In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about three countries with particularly high unemployment rates. As Dan notes, even though the employment picture in Europe is ugly, one of these three countries has made some progress toward getting unemployment under control. Dan also weighs in with some investment ideas for those seeking to bet on a turnaround in Europe, with thoughts for both ETF investors and those who prefer individual stocks (NYSEMKT: EWI ) .
Top Oil Service Companies To Own In Right Now: Barnes Group Inc (B)
Barnes Group Inc. is an international aerospace and industrial components manufacturer and logistics services company serving a range of end markets and customers. The products and services provided by Barnes Group are critical components for applications, which provide transportation, communication, manufacturing and technology. The Company operates under two global business segments: Logistics and Manufacturing Services, and Precision Components. On December 30, 2011, the Company sold its Barnes Distribution Europe (BDE) business to Berner SE. In August 2012, the Company acquired Synventive Molding Solutions.
Logistics and Manufacturing Services
Logistics and Manufacturing Services provides logistics support and repair services. Value-added logistics support services include inventory management, technical sales, and supply chain solutions for maintenance, repair, operating, and production supplies and services. Repair services provided include the manufacturing of spare parts for the refurbishment and repair of engineered components and assemblies for commercial and military aviation. Logistics and Manufacturing Services has sales, distribution, and manufacturing operations in the United States, Brazil, Canada, China, France, Mexico, Singapore, Spain and the United Kingdom. Products and services are available in more than 30 countries.
The global operations are engaged in supplying, servicing and manufacturing of maintenance, repair and operating components. Activities include logistics support through vendor-managed inventory and technical sales for stocked replacement parts and other products, catalog offerings and custom solutions, and the manufacture and delivery of aerospace aftermarket spare parts, including the revenue sharing programs (RSPs) under, which the Company receives right to supply designated aftermarket parts over the life of the related aircraft engine program, and component repair s. In addition, the manufacturing and supplying of aerospace! aftermarket spare parts, including the RSPs, are dependent upon the reliable and timely delivery of components.
Precision Components is a global supplier of engineered components for critical applications focused on providing solutions for a industrial, transportation and aerospace customer base. It is equipped to produce every type of precision spring, from fine hairsprings for electronics and instruments to heavy-duty springs for machinery, as well as precision-machined and fabricated components and assemblies for OEM turbine engine, airframe and industrial gas turbine builders globally, and the military. It is also a manufacturer and supplier of precision mechanical products, including precision mechanical springs, compressor reed valves and nitrogen gas products. Precision Components also manufactures punched and fine-blanked components used in transportation and industrial applications, nitrogen gas springs and manifold sy stems used to control stamping presses, and retention rings, which position parts on a shaft or other axis.
Precision Components has a customer base with products purchased by durable goods manufacturers located in industries, including transportation, consumer products, farm equipment, telecommunications, medical devices, home appliances and electronics, and airframe and gas turbine engine manufacturers for commercial and military jets, business jets, and land-based industrial gas turbines. Long-standing customer relationships enable Precision Components to participate in the design phase of components and assemblies, through which customers receive the benefits of manufacturing research, testing and evaluation. Products are sold through Precision Components’ direct sales force and a distribution channel. Precision Components has manufacturing, sales, assembly and distribution operations in the United States, Brazil, Canada, China, Germany, Korea, Mexico, Si ngapore, Sweden, Switzerland, Thailand and the United Kingdo! m.
- [By Vanina Egea]
For fiscal year 2013, Enbridge Energy reported a decline in net income. The report manifesting the figure eliminates the impact of: (a) additional environmental costs, net of insurance recoveries, associated with the Line 6B incident; (b) non-cash, mark-to-market net gains and losses; and (c) other adjustments.
- [By LarryZ6]
Until recently, the company was considered as concentrating in pure mobile business solutions; in fact, Vodafone is the world´s second largest mobile carrier behind China Mobiles (CHL). However, it seems that Vodafone decided to pursue a strategy that focus on (a) adding services to its existing portfolio in Europe and (b) expanding activities in emerging markets.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Barnes Group (NYSE: B ) , whose recent revenue and earnings are plotted below.
- [By Rich Duprey]
Citing the benefits of providing high-margin, low-cost consumables with a broad distribution footprint throughout the U.S. and Canada, industrial supplier MSC Industrial Direct (NYSE: MSM ) announced today that it has completed the acquisition of Barnes Group’s (NYSE: B ) North American distribution business for $550 million.
Top Oil Service Companies To Own In Right Now: Taro Pharmaceutical Industries Ltd (TARO)
Taro Pharmaceutical Industries Ltd., incorporated in 1959, is a science-based pharmaceutical company. The Company develops manufactures, and markets prescription and over-the-counter (OTC) pharmaceutical products, primarily in the United States, Canada and Israel. The Company also develops and manufactures active pharmaceutical ingredients (APIs), primarily for use in its finished dosage form products. The Company’s primary areas of focus include pediatric creams and ointments, liquids, capsules and tablets, mainly in the dermatological and topical, cardiovascular, neuropsychiatric and anti-inflammatory therapeutic categories. The Company operates through three companies: Taro Pharmaceutical Industries Ltd. (Taro Israel), and two of its subsidiaries (including indirect), Taro Pharmaceuticals Inc. (Taro Canada) and Taro U.S.A. The Company markets more than 180 pharmaceutical products in over 25 countries.
Taro Israel manufactures more than 160 finished dosage form pharmaceutical products for sale in Israel and for export. It produces APIs used in the manufacture of finished dosage form pharmaceutical products. It markets and distributes generic products in the local Israeli market. Taro Israel’s primary product lines include dermatology, prescription and OTC semi-solid products (creams, ointments and gels) and liquids; cardiology and neurology, prescription oral dosage products; oral analgesics, both prescription and OTC, and OTC oral and nasal sprays and ophthalmic products.
Taro Canada manufactures more than 70 finished dosage form pharmaceutical products for sale in Canada and for export. It markets and distributes generic products in the local Canadian market. Its product line includes dermatology: prescription and OTC semi-solid products (creams, ointments and gels) and liquids, cardiology, oncology, gastrointestinal and neurology: prescription oral and injects able dosage products, and allergy (antihistamine ): OTC oral dosage products.
Taro U.S.A markets! and distributes generic products in the United States market. Its primary product lines include dermatology: prescription and OTC semi-solid products (creams, ointments and gels) and liquids, cardiology and neurology: prescription oral dosage products, and other prescription and OTC products.
The Company competes with Bristol-Myers Squibb, GlaxoSmithKline, Merck, Novartis, Pfizer/Wyeth, Valeant, Galderma, Merck/Schering-Plough, Teva Pharmaceuticals U.S.A., Mylan Laboratories, Perrigo Company, Ranbaxy Pharmaceuticals Inc., Sandoz Pharmaceuticals, Merck Canada Inc., Pfizer Canada Inc., Janssen Inc., Schering-Plough Canada, Novartis Pharmaceuticals Canada Inc., GlaxoSmithKline Inc., Bayer Inc., Bristol-Myers Squibb Canada, Apotex Inc., Teva Canada Limited, Mylan Pharmaceuticals ULC, Sandoz Canada Incorporated, Pharmascience Inc., Teva Pharmaceutical Industries Ltd., Perrigo Israel Pharmaceuticals Ltd., Dexxon Ltd., Rafa Laboratories Ltd., Bayer AG, Eli Lilly and C ompany, Merck & Co., Inc. and Pfizer Inc.
- [By Ben Levisohn]
Teva has dropped 7.7% to $37.85 today at 3:23 p.m. but doesn’t seem to be spreading though the generic drug space. Taro Pharmaceuticals (TARO) ha gained 1.1% to $79, while Actavis (ACT) has gained 1.2% to $156.25 and Dr. Reddy’s Laboratories (RDY) has advanced 1% to $40.24. Mylan (MYL) has dropped 0.7% to $38.40.
- [By Rich Smith]
Israeli drugmaker Taro Pharmaceutical Industries (NYSE: TARO ) has a new CEO — and a new Chairman of the Board, as well.
On Thursday, Taro announced the imminent retirement of Interim Chief Executive Officer Mr. James Kedrowsk, who will be replaced August 1 by new permanent CEO Mr. Kalyanasundaram Subramanian (“Kal Sundaram”). Additionally, the company said that Dilip Shanghvi has been appointed Chairman of its Board of Directors.
Top Oil Service Companies To Own In Right Now: Pacer International Inc.(PACR)
Pacer International, Inc., together with its subsidiaries, provides asset-light transportation and logistics services primarily in North America, Asia, Europe, Australia, South America, and Africa. It operates in two segments, Intermodal and Logistics. The Intermodal segment offers intermodal rail transportation, local cartage and trucking, intermodal marketing services, container capacity, on-site operational services, and door-to-door shipment management services. As of December 31, 2011, its equipment fleet consisted of 1,592 double-stack railcars, 18,183 containers, and 12,783 chassis. The Logistics segment provides highway brokerage, warehousing and distribution, international freight forwarding, ocean and air shipping, and supply chain management services, as well as offers non-vessel-operating common carrier to end-user customers. The company markets and supports its services to cargo owners, steamship lines, truckload carriers, truck brokers, and freight forwarders , as well as other third party transportation service providers, such as intermodal marketing companies, third-party logistics companies, and shippers? agents through its direct sales and customer service representatives. Pacer International, Inc. was founded in 1974 and is headquartered in Dublin, Ohio.
- [By Jake L’Ecuyer]
XPO Logistics (NYSE: XPO) shot up 7.06 percent to $30.01 after the company announced its plans to acquire Pacer International (NASDAQ: PACR) in a deal valued at $335 million.
Top Oil Service Companies To Own In Right Now: Argo Group International Holdings Ltd.(AGII)
Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. The company?s Excess and Surplus Lines segment underwrites casualty, property, transportation, and binding authority for commercial enterprises, including restaurants, contractors, day care centers, apartment complexes, condominium associations, manufacturers, and distributors; and offers policies for medical facilities within the social services, miscellaneous healthcare, and long term care markets, as well as for lawyers, miscellaneous professions, employment practices, and real estate related accounts. This segment also provides package policies for environmental consultants and contractors, storage tanks, dry cleaners pollution liability, as well as other environmental related liability exposures; and coverage for architects and engineers, accountants, and insurance agents. Its Commercial Specialty segment offers property casu alty and surety coverages; and underwrites business coverage for small commercial businesses comprising office, retail operations, light manufacturing, services, and restaurants. This segment also provides general and automobile liability, automobile physical damage, property, inland marine, crime, public official?s and educator?s legal liability, employment practices, law enforcement liability, environmental and lawyers professional liability, student accident, police and firefighters accident, workers compensation, inmate medical, and tax interruption coverages. In addition, the company?s International Specialty segment covers claims arising from catastrophic events, such as hurricanes, windstorms, hailstorms, earthquakes, volcanic eruptions, fires, industrial explosions, freezes, riots, floods, and other man-made or natural disasters. Further, its Syndicate 1200 segment underwrites property and non-U.S. liability insurance. The company was founded in 1986 and is based in Pembroke, Bermuda.
- [By CRWE]
Argo Group International Holdings, Ltd. (Nasdaq:AGII), an international underwriter of specialty insurance and reinsurance products, reported that its board of directors has declared a quarterly cash dividend of 12 cents per share on the company’s common stock.
Top Oil Service Companies To Own In Right Now: CGG SA (CGG)
CGG SA, formerly Compagnie Generale de Geophysique-Veritas, is a manufacturer of geophysical equipment and a provider of a range of seismic services in data acquisition and processing both onshore and offshore, principally to clients in the oil and gas exploration and production industry. The Company operates in two segments: Services and Equipment.
The services segment includes land contract, marine contract, multi-client land and marine, and processing, imaging and reservoir. The land contract includes seismic data acquisition for land, transition zones and shallow water undertaken by the Company on behalf of a specific client. The marine contract includes seismic data acquisition offshore undertaken by the Company on behalf of a specific client. The multi-client land and marine includes seismic data acquisition undertaken by the Company and licensed to a number of clients on a non-exclusive basis. The processing, imaging and reservoir includes processing, imaging and interpretation of geophysical data, data management and reservoir studies for clients.
Land seismic acquisition includes all seismic surveying techniques where the recording sensor is either in direct contact with, or in close proximity to, the ground. The Company’s land business line offers integrated services, including the acquisition and on site processing of seismic data on land, in transition zones and on the ocean floor (shallow water and seabed surveys). It undertakes land surveys with both a contract and multi-client basis. The land operations include surveying and recording crews. Surveying crews lay out the lines to be recorded and mark the sites for shot-hole placement or equipment location. Recording crews produce acoustic impulses and use recording units to synchronize the shooting and record the seismic signals through geophones.
The Company provides a range of three-dimensional (3D) marine seismic s ervices, principally in the Gulf of Mexico, the North Sea an! d off the coasts of West Africa and Brazil, as well as in the Asia-Pacific region. As of December 31, 2011, the Company had a fleet of 19 vessels, including 11 three dimension (3D) high capacity vessels (12 or more streamers), two 10 streamer 3D vessels, three eight streamer 3D vessels and three 3D/two dimension (2D) vessels of lower capacity. Marine seismic surveys are conducted through the deployment of submersible cables (streamers) and acoustic sources (airguns) from marine vessels.
Seismic data processing operations transform seismic data acquired in the field into 2D cross-sections, or 3D images of the earth’s subsurface or four-dimensional (4D) time-lapse seismic data using Geovation and Hampson-Russell software, or third party applications. These images are then interpreted by geophysicists and geologists for use by oil and gas companies in evaluating prospective areas, selecting drilling sites and managing producing reservoirs. The Company provides s eismic data processing and reservoir services through the network of data processing centers and reservoir teams located worldwide. As of December 31, 2011, it operated 43 worldwide processing and imaging centers, including 13 dedicated client centers.
The Company conducts its equipment development and production operations through Sercel and its subsidiaries. Sercel operates five seismic equipment manufacturing facilities, located in Nantes and Saint Gaudens in France, Houston, Singapore and Alfreton in England. In China, Sercel operates through Hebei Sercel-JunFeng Geophysical Equipment Co. Ltd, based in Hebei. Sercel offers and supports worldwide a range of geophysical equipment for seismic data acquisition, including seismic recording equipment, software and seismic sources, and provides its clients with integrated solutions. Sercel’s principal product line is seismic recording equipment, particularly the 400 family of recording syst ems, the 408UL and the 428XL. Sercel also markets for vibros! eismic ve! hicles and for vibrator electronic systems (VE 464). Sercel develops and produces a range of geophysical equipment for seismic data acquisition and other ancillary geophysical products, such as geophones, cables and connectors.
The Company competes with WesternGeco, Global Geophysical Services, BGP, Geokinetics, PGS, Fugro and Ion Geophysical Inc.
- [By Vanina Egea]
Baker Hughes has seen greater activity, especially through new partnerships. With CGG (CGG), the company has signed a long-term agreement to provide RoqSCAN technology, a real-time, fully portable, quantitative and automated rock properties and mineralogical analyzer. Also, the firm will acquire Weatherford (WFT)’s pipeline and specialty services business through one of its subsidiaries. Last, the business has signed a letter of intent to develop integrated well completion solutions with TMK.
- [By Holly LaFon]
The largest detractor from the Fund’s performance for the past quarter – and one of the largest detractors in the calendar year – was a holding just added in June: CGG (CGG), an operator and provider of seismic acquisition and data processing. As a seismic company, CGG relies directly on oil and gas companies’ investments. During the second half of 2013, in an environment with flat oil prices and continuing inflation across the supply chain, several oil and gas companies decided to further postpone their investments and wait until the economy improves to sanction new projects. Positioned at the beginning of the supply chain, CGG has been hurt by the cancellation of several projects, as well as lower-than-expected price increases. As a result, management smartly decided to launch a three-year plan to downsize CGG’s fleet in order to lower fixed costs and to focus on the most profitable segments. Despite these conditions, we think our investment case remains valid. With the end of “easy oil,” we believe that this offshore seismic company still offers an attractive investment opportunity.
Top Oil Service Companies To Own In Right Now: A. H. Belo Corp (AHC)
A. H. Belo Corp incorporated on October 1, 2007, is a newspaper publishing and local news and information company that owns and operates four metropolitan daily newspapers and several associated Web sites. The Company publishes The Dallas Morning News, The Providence Journal, The Press-Enterprise (Riverside, CA), and the Denton Record-Chronicle. It publishes various niche publications targeting specific audiences, and its investments and/or partnerships include Classified Ventures, LLC, owner of cars.com and the Yahoo! Inc. (Yahoo!) Newspaper Consortium. The Company also owns and operates commercial printing, distribution and direct mail service businesses. The Company’s primary sources of revenue include advertising sold in published issues of its newspapers and on the Company’s Web sites, the sale of newspapers to subscribers and single copy customers, and commercial printing and distribution. In July 2012, The Dallas Morning News acquired Pegasus News (www.pegasusne ws.com) from PanLocal Media LLC, a subsidiary of Archstream LLC of Dallas.
The Company’s The Dallas Morning News is a metropolitan newspapers in America. The Dallas Morning News is distributed primarily in Dallas County and 10 surrounding counties. The Dallas Morning News also publishes Briefing, a condensed newspaper distributed four days per week at no charge to non-subscribers of The Dallas Morning News in select coverage areas, and Al Dia, a Spanish-language newspaper published on Wednesdays and Saturdays and distributed at no charge in select coverage areas. The Dallas Morning News also publishes other news products targeted at communities in the North Texas area. The Dallas Morning News’ financial and operating results also include The Denton Record-Chronicle.
The Company’s The Providence Journal is a newspaper in Rhode Island and southeastern Massachusetts. The Providence Journal is a daily newspaper of general circulation and continuou s publication in the United States. The Providence Journal a! lso publishes ProjoExpress, a weekly publication distributed at no charge to households in select Rhode Island communities. The Press-Enterprise is distributed in the Inland Southern California region, which includes Riverside and San Bernardino Counties. The Press-Enterprise also publishes La Prensa, a weekly Spanish-language newspaper distributed at no charge in select coverage areas, as well as The Weekly, a targeted condensed newspaper distributed mid-week at no charge to non-subscribers, and Sunday Weekly, a publication that is distributed on Sunday at no charge to non-subscribers.
In addition to its core newspaper operations, the Company and Belo Corp., through their subsidiaries, together own 6.6% of Classified Ventures, LLC, a joint venture, in which the other owners are Gannett Co., Inc., The McClatchy Company, Tribune Company, and The Washington Post Company. The three principal online businesses Classified Ventures, LLC operates are cars.com, apartmen ts.com, and homegain.com. The Company and Belo, through Belo Lead Management LLC, have also invested in ResponseLogix, Inc. (www.responselogix.com). ResponseLogix provides advanced, Internet-based management solutions to auto dealers.
The Company has a portfolio of print, online and digital advertising products and services. During the year ended December 31, 2011, advertising revenues accounted for approximately 61.2 % of total revenues of which 12.5 of advertising revenue was generated by the Company’s digital advertising products. Its Display advertising revenue consists of sales of advertising space within its newspapers and niche publications to local, regional or national retail and service businesses with local operations, affiliates or resellers. Its Classified advertising revenue comprises sales of advertising space in the classified and other sections of its newspapers, which include certain automotive, real estate, employme nt and other.
The Company’s Preprint revenue ! is earned! from sales of pre-printed advertisements or circulars inserted into its core newspapers and niche publications, or distributed by mail or third-party distributors to households in targeted areas in order to provide total market coverage for advertisers. Its Digital advertising revenue consists of sales of and other display, video, behavioral targeting, search, rich media, directories, classifieds, direct email marketing, or other advertising on digital platforms associated and integrated with the Company’s print publications, and on third party Web sites, such as Yahoo!, monster.com, and cars.com..
Circulation revenues accounted for approximately 30.3 % of total revenues in 2011 and represent subscription and single copy sales revenue related primarily to the Company’s core newspapers. The Company’s Websites also include (dallasnews.com, providencejournal.com, pe.com and other related Websites) offering users news information, use r-generated content, advertising, e-commerce and other services.
Printing and Distribution
Printing and distribution revenues comprised approximately 8.5 % of the Company’s revenue in 2011 and consists primarily of commercial printing, distribution and direct mail service. The Company provides commercial printing services, primarily for national newspapers, such as The Wall Street Journal, The New York Times and USA Today and other local newspapers. Newsprint used in the production of large national newspapers is generally provided by the customer. The Company also provides home delivery and retail outlet distribution services, for such national newspapers, as well as for regional newspapers delivered into its coverage areas, such as The Boston Globe and the Los Angeles Times. The Company also operates a direct mail service business in Phoenix, Arizona and Las Vegas, Nevada.
- [By Jon Friedman]
Editor’s note: A previous version of this article referred to A.H. Belo (NYSE: AHC) instead of Belo Corp. (NYSE: BLC). The Fool regrets the error.