ARB-ArborGen Holdings Ltd

[t.rexjr]

Yup. I got out a while ago, unfortunately at a lower price than where it is today.

I attended the AGM in Christchurch about 5? years ago.
I reported on the then Rubicon thread what was asked as questions from the floor and the responses.

The 3 main points were:
1. Name change from Rubicon.
2. Dividends start in 2-3 years.
3. Listing on the US market was the appropriate way forward.

Advance 5 years and only one (the easiest) accomplished.

As 'percy' often says, he wants companies to do what they say they are going to do!!

I got out after attending a meeting in Mount Maunganui. I was appalled by the level of arrogance and the distain shown to shareholders by certain directors... Nice food though.

[TheHunter]

I still think the underlying opportunity driven by MCP remains... but man does mgmt. need to change. Even the mgmt. profile on the website looks like its straight out of an 90's college year book.

[ralph]

https://businessdesk.co.nz/nzx-announcements/386967 j p Morgan look to be moving in on forestry. share price moving accordingly ,happen something bigger brewing.

[ralph]

https://businessdesk.co.nz/article/a...takeover-offer maybe these chaps ( j p ) where the third party and instead bought elsewhere in forestry https://realassets.ipe.com/news/jp-m...053562.article

[Maxtrade]

https://businessdesk.co.nz/article/a...takeover-offer maybe these chaps ( j p ) where the third party and instead bought elsewhere in forestry https://realassets.ipe.com/news/jp-m...053562.article

Worldwide dynamics of dwindling supply vs growing demand will soon take over as the world and NZ is coming out of Pandemic parameters. Very little volume moving with ARB shares has lead to trickle down of SP. As Ukraine fear stabilises and markets resume stability ARB SP placed for a solid bounce. With SP so low the % gains will be substantial. Will soon be viewed as a great entry point level for those that have been sitting on the sideline. Also carbon credit farming will reduce supply further, all parameters set for ARB to become more 'valuable'.

Disc holding/ adding

[LoungeLizzard]

Pleasing results and record US advanced genetics seedling sales as ArborGen focuses on higher growth markets following sale of its New Zealand and Australian businesses (ANZ business) during FY22
- Despite the ongoing impact of the pandemic on overall sales volumes, sales of advanced genetics seedlings increased 32% year-over-year
- Operating earnings (before other significant items) of $2.7 million for continuing operations in US and Brazil, up from $1.0 million in FY21
- Revenues from continuing operations of $47.6 million, up from $42.8 million in FY21
- Gross margin from continuing operations of $17.8 million, up from $15.6 million in FY21
- Adjusted US-GAAP EBITDA result of $10.1 million excluding the ANZ business sold and other significant items, up from $7.4 million in FY21
- Completion of sale of ANZ business for NZ$22.25 million (ANZ Transaction), significantly strengthening ArborGen’s balance sheet
- Net debt reduced substantially to $11.5 million, from $27.4 million in the prior period
- Repayment of $2.9 million of sub-ordinated debt raised in 2019 to fund the $14.4 million acquisition of ArborGen’s headquarters in Ridgeville, South Carolina, and reduction in ArborGen’s Synovus working capital facility by $5.5 million, collectively resulting in annual cash interest cost savings
- $4.7 million of deferred tax recognition including $3.8 million of previously unrecognised tax losses available
- Completion of acquisition of an 8-10 million capacity pine nursery located in Canoinhas, Santa Catarina, Brazil for approximately BR$4 million (US$0.7 million)
- Materially improved performance projected in Brazil in FY23 (fiscal year ending March 2023) driven by stronger pricing for both eucalyptus and pine seedlings and increased sales volumes

O​n the surface it looks like a good result in difficult circumstances but Net Profit is down 46.9% to only US$1.7m. They really need to increase the higher margin MCP seedling sales because that's nowhere near enough of a return considering ARB market position.

[Thistle72]

Agree, and were it not for the tax benefit, ARB would have seen a sizeable net loss! One-time write offs are killing profitability.

I am frustrated we have still not seen a report from the strategic review, which appears to have cost some part of $1.8m. If the conditional acquisition proposal received June 2021 was rejected, we should know why, and if the reasons were financial or otherwise.

[Sideshow Bob]

ArborGen Concludes Strategic Review - NZX, New Zealand’s Exchange

ArborGen Holdings Limited (NZX: ARB) (the “Company” or “ArborGen”) announces today that as a result of the strategic review conducted over the last year, the Board of ArborGen has refocussed the business on its core traditional and emerging high growth markets in the US South and Brazil, as well as on new and emerging high growth carbon markets. In line with this refocused strategy, ArborGen sold its more mature Australia and New Zealand business on 30 November 2021 for NZ$22.25 million, substantially strengthening its balance sheet, and affording it greater opportunities to invest in targeted growth arenas. Accordingly, the Company advises that the strategic review commenced on 30 June 2021 has now been concluded.

[Maxtrade]

ArborGen Concludes Strategic Review - NZX, New Zealand’s Exchange

ArborGen Holdings Limited (NZX: ARB) (the “Company” or “ArborGen”) announces today that as a result of the strategic review conducted over the last year, the Board of ArborGen has refocussed the business on its core traditional and emerging high growth markets in the US South and Brazil, as well as on new and emerging high growth carbon markets. In line with this refocused strategy, ArborGen sold its more mature Australia and New Zealand business on 30 November 2021 for NZ$22.25 million, substantially strengthening its balance sheet, and affording it greater opportunities to invest in targeted growth arenas. Accordingly, the Company advises that the strategic review commenced on 30 June 2021 has now been concluded.

Should start seeing more demand for this stock. ARB is quite under the radar and not on many retail investors portfolio so very low volumes of late. Probably won't take too much for a couple of solid bids to quite quickly push the share price back up to where it was previously sitting.

[LoungeLizzard]

Should start seeing more demand for this stock. ARB is quite under the radar and not on many retail investors portfolio so very low volumes of late. Probably won't take too much for a couple of solid bids to quite quickly push the share price back up to where it was previously sitting.

Well, let's hope so.

I thought the strategic review was a bit of a damp squib - simply re-iterating growth prospects that they have been talking about for years. Why is a business with the market share of ARB, only making 1.7m in profit (down 47% on the previous year). How the hell can that be with all the things in their favour - housing boom, carbon trading, vastly superior product. I'd have hoped the review would have been looking at trying to understand why ARB makes such an appalling low return on capital. Then to look at ways of improving it - cutting overheads, pricing etc. Why would anyone run a business like ARB with all the risks involved for only $1.7m profit? And how do they hope to give shareholders a return on their investment off such a low base, even after all this time. I'm starting to think that ARB shouldn't be a public company as it doesn't seem to operate one in its regard to shareholders. Perhaps courting a takeover or even de-listing would be the best course of action.