Announcement • Dec 02
ALJ Regional Holdings, Inc. (OTCPK:ALJJ) announces an Equity Buyback for 10,000,000 shares. ALJ Regional Holdings, Inc. (OTCPK:ALJJ) ) announces a share repurchase program. Under the program, then company will repurchase up to 10,000,000 shares of its common stock. The shares will be repurchased at a price per share not greater than $2 and not less than $1.84. Any shares purchased pursuant to the tender offer will be cancelled, and those shares will cease to be outstanding. The Company also reserves the right to purchase up to an additional 2% of its common shares outstanding. The Company expects to fund purchases of shares tendered in the tender offer with cash on hand. The tender offer will expire on December 29, 2022. Announcement • Oct 01
ALJ Regional Holdings, Inc. (OTCPK:ALJJ) acquired Ranews Companies from Lester and Susan Ranew for $20.8 million. ALJ Regional Holdings, Inc. (OTCPK:ALJJ) acquired Ranews Companies from Lester and Susan Ranew for $20.8 million on September 28, 2022. The consideration is subject to certain purchase price adjustments and certain earn-out payments. The Purchase Agreement includes two (2) earn-out payments in favor of Lester Ranew. Each earn-out payment is equal to the product of the increase in the adjusted EBITDA over EBITDA in the trailing twelve month period prior to the applicable earn-out payment date multiplied by 3.25. As a result of the transactions, ALJ Regional acquired 100% of the equity interests of Ranew's Truck & Equipment Company, LLC, Ranew's Outdoor Equipment, Inc., Ranew's Management Company, Inc., Ranew's Well Services Division, LLC, Ranew's Companies, LLC and Ranew's of Texas, Incorporated. At the closing, ALJ Regional issued Ranew 19.99% of the equity interests in ALJ Regional in consideration of the rollover of certain of Ranew's equity interests. ALJ and the ALJ Regional have entered into a stockholders' agreement with Ranew providing for certain customary rights, as well as a purchase/sale right commencing on the fifth (5th) anniversary of the closing date to cause ALJ to either, at ALJ's election, (i) purchase all of the common stock of ALJ Regional held by Lester Ranew or (ii) sell to Lester Ranew all of the common stock of ALJ Regional held by ALJ, in each case, at a value determined by Lester Ranew. Effective as of the closing date, ALJ has entered into employment agreements with each of (i) Robert Brock, as Chief Executive Officer, (ii) Clay Harmon, as Chief Financial Officer and (iii) Blake Reeves, as Director of Operations. The employment agreements include customary terms, including annual bonuses based upon increases in EBITDA.ALJ Regional Holdings, Inc. (OTCPK:ALJJ) completed the acquisition of Ranews Companies from Lester and Susan Ranew on September 28, 2022. Reported Earnings • Aug 12
Third quarter 2022 earnings released: EPS: US$2.50 (vs US$0.083 loss in 3Q 2021) Third quarter 2022 results: EPS: US$2.50 (up from US$0.083 loss in 3Q 2021). Revenue: US$57.6m (down 44% from 3Q 2021). Net income: US$105.9m (up US$109.4m from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Jul 20
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. No experienced directors. 6 highly experienced directors. Independent Director Julie Cavanna-Jerbic was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jul 16
ALJ Regional Holdings, Inc., Annual General Meeting, Aug 19, 2022 ALJ Regional Holdings, Inc., Annual General Meeting, Aug 19, 2022, at 09:00 US Eastern Standard Time. Location: 599 Lexington Ave., New York, NY 10022 New York New York United States Agenda: To consider elect Jess M. Ravich, Hal G. Byer, Rae Ravich, John Scheel and Robert Scott Fritz as directors to hold office until the company’s 2023 Annual Meeting of Stockholders or until their respective successors are elected and duly qualified, or until their respective earlier resignation or removal; to consider ratify the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending September 30, 2022; to consider approve, on a non-binding advisory basis, company executive compensation, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the U.S. Securities and Exchange Commission; and to consider transact such other business as may properly come before the Annual Meeting or any adjournment or postponement thereof. Reported Earnings • May 17
Second quarter 2022 earnings released: US$0.20 loss per share (vs US$0.018 profit in 2Q 2021) Second quarter 2022 results: US$0.20 loss per share (down from US$0.018 profit in 2Q 2021). Revenue: US$68.5m (down 40% from 2Q 2021). Net loss: US$8.48m (down US$9.23m from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 10% per year and the company’s share price has also increased by 10% per year. Announcement • Apr 14
LSC Communications US, LLC completed the acquisition Phoenix Color Corp. from ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ). LSC Communications US, LLC entered into a stock purchase agreement to acquire Phoenix Color Corp. from ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ) for approximately $130 million on February 3, 2022. Under the terms of agreement, If the closing date is after April 15, 2022 but on or before May 15, 2022, the purchase price will be decreased by $1.0 million, and if the closing date is after May 15, 2022, the purchase price will be decreased by an additional $1.0 million. The agreement provides for ALJ to pay a termination fees of $4 million to LSC under circumstances listed in the agreement. Phoenix Color Corp reported revenue of approximately $115.6 million and an adjusted EBITDA of $20.3 million for the period ending September 30, 2021. Dave McCree, Lakeside's Chief Executive Officer, will lead the combined business. Marc Reisch, former Executive Chairman of Phoenix, will support the business through the integration and remain with ALJ. Phoenix President John Carbone is retiring from the company as Phoenix begins this new era as a division of Lakeside. As of February 2, 2022, ALJ's board of directors unanimously approved the stock purchase agreement and recommends the stockholders vote “FOR” the Phoenix Color Sale Proposal. The transaction is subject to regulatory and stockholder approvals and compliance with Hart-Scott-Rodino Antitrust Improvements Act. The transaction was approved by ALJ’s stockholders at a special meeting held on April 11, 2022. The transaction is expected to close during the second calendar quarter of 2022. ALJ expects that it may use the proceeds to pay transaction expenses, to pay down any remaining debt of the Company, to purchase additional assets or businesses, to buy back the stock and/or for any other purpose that our Board of Directors deems appropriate. Christopher M. Forrester and Cody Wright of Shearman & Sterling LLP acted as legal advisor for ALJ and Steven Seidman, Mark A. Cognetti, Anna Martini Pereira and Laura Acker of Willkie Farr & Gallagher LLP acted as legal advisor for LSC. Lincoln International LLC acted as financial advisor and fairness opinion provider to ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ). American Stock Transfer & Trust Company, LLC acted as transfer agent to ALJ Regional Holdings, Inc.
LSC Communications US, LLC completed the acquisition Phoenix Color Corp. from ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ) on April 13, 2022. Reported Earnings • Feb 12
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: US$0.22 loss per share (down from US$0.045 loss in 1Q 2021). Revenue: US$103.1m (down 7.2% from 1Q 2021). Net loss: US$9.39m (loss widened 399% from 1Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Feb 05
LSC Communications US, LLC agreed to acquire all of the outstanding shares of common stock of Phoenix from ALJ Regional Holdings, Inc. (Nasdaq GM:ALJJ) for approximately $130 million. ALJ Regional Holdings, Inc. (Nasdaq GM:ALJJ) entered into a stock purchase agreement with LSC Communications Book LLC and Phoenix Color Corp. to acquire all of the outstanding shares of common stock of Phoenix for approximately $130 million on February 3, 2022. Under the terms of agreement, If the closing date is after April 15, 2022 but on or before May 15, 2022, the purchase price will be decreased by $1.0 million, and if the closing date is after May 15, 2022, the purchase price will be decreased by an additional $1.0 million. The agreement provides for ALJ to pay a termination fees of $4 million to LSC under circumstances listed in the agreement. The transaction is subject to regulatory and stockholder approvals and compliance with Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close during the second calendar quarter of 2022. Christopher M. Forrester and Cody Wright of Shearman & Sterling LLP acted as legal advisor for ALJ and Steven Seidman, Mark A. Cognetti and Laura Acker of Willkie Farr & Gallagher LLP acted as legal advisor for LSC. Reported Earnings • Dec 22
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: US$0.085 loss per share (up from US$1.60 loss in FY 2020). Revenue: US$440.9m (up 13% from FY 2020). Net loss: US$3.58m (loss narrowed 95% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Dec 21
ALJ Regional Holdings, Inc. Provides Revenue Guidance for the Three Months Ending December 31, 2021 ALJ Regional Holdings, Inc. provided revenue guidance for the three months ending December 31, 2021. For the period, the company expected consolidated net revenue in the range of $100.0 million to $105.5 million. Reported Earnings • Aug 13
Third quarter 2021 earnings released: US$0.083 loss per share (vs US$0.063 loss in 3Q 2020) The company reported a soft third quarter result with increased losses and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: US$103.5m (up 8.5% from 3Q 2020). Net loss: US$3.50m (loss widened 32% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Reported Earnings • May 13
Second quarter 2021 earnings released: EPS US$0.018 (vs US$1.47 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$114.6m (up 19% from 2Q 2020). Net income: US$745.0k (up US$62.5m from 2Q 2020). Profit margin: 0.7% (up from net loss in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Announcement • May 13
ALJ Regional Holdings, Inc. Provides Earnings Guidance for the Three Months Ending June 30, 2021 ALJ Regional Holdings, Inc. provided earnings guidance for the three months ending June 30, 2021. For the quarter, the company estimates consolidated net revenue to be in the range of $90.5 million to $96.5 million, compared to $86.1 million for the three months ended June 30, 2020. Recent Insider Transactions • Feb 23
CEO & Executive Chairman recently sold US$498k worth of stock On the 17th of February, Jess Ravich sold around 276k shares on-market at roughly US$1.80 per share. This was the largest sale by an insider in the last 3 months. This was Jess' only on-market trade for the last 12 months. Reported Earnings • Feb 13
First quarter 2021 earnings released: US$0.049 loss per share (vs US$0.10 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: US$119.8m (up 33% from 1Q 2020). Net loss: US$2.09m (loss narrowed 51% from 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Feb 09
New 90-day high: US$1.39 The company is up 20% from its price of US$1.16 on 10 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 14% over the same period. Announcement • Jan 26
Superior Interior Finishes, LLC entered into a purchase and sale agreement to acquire Floors-N-More, LLC from ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ) for $0.5 million. Superior Interior Finishes, LLC entered into a purchase and sale agreement to acquire Floors-N-More, LLC from ALJ Regional Holdings, Inc. (NasdaqGM:ALJJ) for $0.5 million on January 23, 2021. As part of the agreement, Superior Interior will pay $0.5 million in cash to Floors-N-More. Pursuant to the terms and subject to the conditions of the purchase and sale agreement, as of the closing date of the transaction: (i) ALJ Regional is entitled to all cash on hand (net of issued but uncleared checks and drafts) of Carpets, (ii) subject to clause (i), the purchase and sale of Carpets is on an “as-is” basis and Superior Interior will acquire all assets and assume all liabilities of Carpets, and (iii) all inter-company obligations between ALJ Regional and Carpets will be considered as paid as a result of the consummation of the transaction. The PSA further provides for (i) an earnest money deposit of $0.5 million (the “Earnest Money Deposit”), which shall be applied to the Purchase Price or otherwise disbursed in accordance with the terms of the PSA. In the event the transaction is not consummated on or prior to the outside date, in which case ALJ Regional shall be entitled to retain the Earnest Money Deposit as liquidated damages. if the Transaction is not consummated on or prior to the outside date because of ALJ Regional’s failure to satisfy the closing conditions (as defined in the PSA), Superior Interior may terminate the agreement and the earnest money deposit shall be immediately returned to the Superior Interior. The transaction is subject to customary closing conditions and the receipt of certain consents, to take place no later than 30 days following the execution of the purchase and sale agreement. Christopher M. Forrester of Shearman & Sterling LLP acted as legal advisor to ALJ Regional Holdings. Is New 90 Day High Low • Jan 14
New 90-day high: US$1.32 The company is up 32% from its price of US$1.00 on 15 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is up 10.0% over the same period. Reported Earnings • Dec 20
Full year 2020 earnings released: US$1.60 loss per share The company reported a soft full year result with increased losses and weaker control over expenses, although revenues were improved. Full year 2020 results: Revenue: US$389.1m (up 9.6% from FY 2019). Net loss: US$67.7m (loss widened 324% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 125% per year but the company’s share price has only fallen by 31% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Nov 04
New 90-day high: US$1.08 The company is up 38% from its price of US$0.78 on 06 August 2020. The American market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 6.0% over the same period. Announcement • Jul 05
ALJ Regional Holdings, Inc.(NasdaqGM:ALJJ) dropped from Russell Microcap Value Index ALJ Regional Holdings, Inc.(NasdaqGM:ALJJ) dropped from Russell Microcap Value Index Announcement • Jul 03
ALJ Regional Holdings, Inc.(NasdaqGM:ALJJ) dropped from Russell Microcap Index ALJ Regional Holdings, Inc.(NasdaqGM:ALJJ) dropped from Russell Microcap Index