CMHHY China Merchants Port Holdings Company Ltd (PK)

Leucadia National Corporation (LUK) posted its financial results for the first quarter 2013 on May 9, 2013. Net results were weak as earnings per share were $1.08, much below $1.97 reported in the year-ago quarter.

Revenue

Leucadia reported a 10.1% year-over-year decline in consolidated revenue in the first quarter 2013, which came in at $2.1 billion.

The company made some changes to its revenue segments after it completed acquiring Jefferies in Mar 2013. A brief discussion on the segments has been provided below:

Revenue from the Beef Processing Services segment accounted for 83.5% of total revenue and settled at roughly $1.8 billion. Revenue from the Domestic Real Estate segment accounted for 0.2% of total revenue and came in at $4.3 million.

Revenue from the Medical Product Development segment was $101 thousand compared with $74 thousand in the year-ago quarter. Proceeds from Other operations were $114.4 million versus $112.8 million in the year-ago quarter and accounted for about 5.3% of total revenue, while the Corporate segment revenue of $235.8 million accounted for about 11.0% of total revenue.
 
Expenses/Margins

Expenses of Leucadia decreased marginally from $2.03 billion in the year-ago quarter to $2.00 billion in the first quarter 2013. Of the total expenses, cost of sales accounted for 91.1% while selling, general and other expenses represented 4.0%.

In relation to revenue, expenses represented 93.7% compared with 85.1% in the year-ago quarter.

Balance Sheet

Leucadia reported a considerable increase in its cash and cash equivalent balance which reached $3.1 billion exiting the first quarter 2013 versus $146.0 million in the previous quarter. The increase can be attributed to the addition of Jefferies to the company’s portfolio with approximately $3.0 billion in cash. Long-term debt balance was at $7.8 billion compared with $1.4 billion at the end of the previous quarter.

Cash Flow

Leucadia used cash of $163.3 million for its operating activities in the first quarter 2013 as compared with just $42.7 million used in the year-ago quarter. Spending on property, equipment and leasehold improvements increased 11.9% year over year to $20.8 million.

During the quarter, Leucadia paid dividends totaling $23.0 million and repurchased no shares.     

Leucadia is engaged in beef processing, manufacturing, gaming entertainment, real estate activities, medical product development operations and various other investment-related activities in the United States.

Other major players in the industry are China Merchants Holdings (International) Company Limited (CMHHY) and Hutchison Whampoa Ltd. (HUWHY), each with a Zacks Rank #1 (Strong Buy) while Compass Diversified Holdings (CODI) has a Zacks Rank #2 (Buy).
 

 
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