Read “Summer Moves” Vista Partners Weekly Market Update 6-2-18

Vista Partners has published “Summer Moves” Vista Partners Weekly Market Update 6-2-18 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30, International and Select Emerging Growth Companies & Now “Investor Picks”, where we have begun to selectively add those companies/ideas that we are receiving from investors around the world.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have elected to be updated each week. Please “Join us” Today!

 

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.




Vista Partners Publishes May’s FREE Macroeconomic & Investment Monthly Newsletter – “The Balancing Act”

Vista Partners (“Vista”) has published May’s FREE Macroeconomic & Investment Monthly Newsletter titled “The Balancing Act.”

Vista’s monthly newsletter contains investment considerations for Banks, Biotech, Cloud Services, Energy, Fintech, Healthcare, Manufacturing, Materials, Mining, Real Estate, SaaS, and Technology in addition to the Macroeconomic commentary.

Vista Partners centers its Coverage on the Dow 30 Components, Select Emerging Growth Companies & Vista’s Featured Companies, with exclusive, broad-based commentary from Managing Director, John F. Heerdink, Jr.

In May’s edition of the Macroeconomic & Investment Newsletter, Mr. Heerdink states, “The Federal Open Market Committee will hold its next meeting on June 12 to 13 and is still widely expected to raise short-term interest rates by a quarter percentage point. It’s a juggling act. On the one hand, ….” Read full newsletter.

Companies Featured in March’s Newsletter:

Companies Featured in April’s Newsletter: Atossa Genetics, Inc.(NASDAQ: ATOS) | Caterpillar (CAT) | Coca-Cola (KO) |  Fusion, Inc. (NASDAQ: FSNN) | & | United Technologies (UTX).

Vista Partners publishes 100% of its content free. Vista Partners offers a wealth of mixed-media resources on the Dow 30 & Select Emerging Growth Companies. To receive FREE email updates from Vista’s select & extensive coverage universe, please sign up at VistaPGlobal.com/signup.

About Vista Partners LLC:

Founded in 2005, Vista Partners LLC (“Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, and Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

We encourage readers to view a complete list of disclaimers and disclosures on the Vista Partners website at VistaPGlobal.com/disclaimer.

Please follow Vista Partners on Twitter @VistaPResearch to receive updates, thoughts, and ideas on Dow 30 Components, Select Emerging Growth Companies & Vista’s Featured Companies.

Contact:

inquiries@VistaPGlobal.com




Fusion Reports Q1 2018 Results

Fusion (FSNN), a leading cloud services provider, announced their financial results for its Q1 ended March 31, 2018, earlier this month.

On May 4, 2018, Fusion completed the spin-off of its remaining interest in its Carrier Services business segment. As a result, this segment has been treated as discontinued operations in the accompanying financial statements.

Fusion reported the following business highlights for Q1 2018:

  • Total revenue grew 2% to $29.0 million, compared to $28.5 million in Q1 2017, while gross margin was 55.5%, compared to 57.4% in Q1 2017
  • Net loss attributable to Fusion common shareholders from continuing operations was $4.2 million, or $0.20 per share, compared to net loss of $4.4 million, or $0.32 cents per share in Q1 2017
  • Adjusted EBITDA (a non-GAAP measure) grew 2% to $3.7 million, compared to $3.6 million in Q1 2017
  • Signed new sales bookings with a total contract value of $7.3 million
  • Ended the quarter with 13,300 Business Services customers and approximately $472,000 of Business Services monthly recurring revenue (MRR) in backlog, representing $17.7 million in total contract value, up 58% year over year
  • Ended the quarter with an average monthly revenue per customer (ARPU) of $715 and a churn rate of 1.2%, compared to $732 and 1.0% at March 31, 2017
  • Acquired the intellectual property and substantially all of the other assets of IQMax, a provider of secure messaging, enterprise data integration, collaboration and advanced cloud communications solutions
  • Completed a public offering of 8,625,000 shares of Fusion’s common stock at a price of $4.80 per share, for net proceeds of $38.7 million after underwriting discounts and commissions, but before offering expenses payable by Fusion
    Subsequent Events
  • Completed the acquisition of Birch Communications Holdings, Inc. (“Birch”), issuing approximately 50 million shares to Birch’s selling shareholders at $5.78 per share, and retiring $444 million of Birch’s prior outstanding indebtedness, for a total Enterprise Value of approximately $600 million
  • Closed $680 million of new Senior Secured Credit Facilities (the “Facilities”), consisting of First and Second Lien Term Loans and including a $40 million Revolving Credit Facility that is currently undrawn, and retired Fusion’s prior outstanding indebtedness
  • Raised an additional $10 million of debt through the issuance of a subordinated note to Holcombe Green, Fusion’s Vice Chairman and largest shareholder, with the same terms as Fusion’s new Second Lien Term Loan
  • Closed a $15 million private placement of non-convertible preferred shares that are redeemable by Fusion at any time, in a transaction led by Holcombe Green
  • Completed an $8 million private placement of Fusion’s common stock priced at $5.25 per share, led by a fund managed by Morgan Stanley which, together with the other purchasers of the shares, also participated in the Facilities
  • Completed the spin-off of Fusion’s remaining interests in its Carrier Services business as well as Birch’s consumer and single-line business customer base, leaving Fusion’s focus on the cloud services market
  • Retired all of Fusion’s Series A-1, A-2 and A-4 and Series B-2 Preferred Stock with a total stated value, plus accrued and unpaid dividends, of $18.9 million, through the issuance of 1.3 million shares of Fusion common stock
  • Signed a definitive agreement to acquire MegaPath Holding Corporation (“MegaPath”) for total consideration of $71.5 million, subject to working capital adjustments
  • Changed the Company’s corporate name to Fusion Connect, Inc., which better reflects its focus on the cloud services market
  • Established new intermediate-term financial objectives of $750 million in annualized revenue and $185 million in annualized adjusted EBITDA
    Management Commentary

Matt Rosen, Fusion’s Chariman & CEO stated, “Our performance in the first quarter of 2018 was solid, as we delivered another quarter of year-over-year revenue and adjusted EBITDA growth, excluding the impact of acquisitions. We also achieved a number of important milestones during the first quarter, which helped set the stage for the even more transformational accomplishments that followed.Now that the Birch acquisition has closed, and with the expected close of the MegaPath acquisition on the horizon, I’m very excited by Fusion’s opportunity to be a disruptive force in the cloud services industry. We believe strongly that our unique strategy, the strength of our operating model, and the power of our platform to drive significant levels of free cash flow will greatly benefit our customers and partners, our employees, and our shareholders. As a result, today we are establishing our next set of intermediate-term financial objectives of $750 million in annualized revenue and $185 million in annualized adjusted EBITDA.”

First Quarter 2018 Financial Results

  • Total revenue in Q1 2018 was $29.0 million, compared to $28.5 million in Q1 2017. The consolidated gross margin was 55.5% in Q1 2018, as compared to 57.4% in Q1 2017, primarily due to the inclusion of revenue from customers acquired during the first half of 2017 which carried a lower gross margin.
  • Net loss attributable to common stockholders from continuing operations in Q1 2018 was $4.2 million, or $0.20 per share on a basic and diluted basis, compared to a net loss in Q1 2017 of $4.4 million, or $0.32 per share on a basic and diluted basis.
  • Adjusted EBITDA grew 2% in Q1 2018 to $3.7 million, compared to $3.6 million in Q1 2017 (see definition and further discussion about the presentation of adjusted EBITDA, a non-GAAP term, below). Capital expenditures totaled $1.0 million in Q1 2018 or 3.4% of total revenue.
  • Total cash and equivalents at March 31, 2018, was $31.0 million, compared to $2.5 million at December 31, 2017. On February 5, 2018, Fusion completed a follow-on offering of 8,625,000 shares of its common stock for net proceeds before offering expenses of $38.7 million. Additionally, during the first quarter, Fusion made $6.6 million of debt pay downs of its then-outstanding senior secured term loan.

Further details about the Company’s financial results are available in its quarterly report on Form 10-Q at www.sec.gov.

finance.yahoo.com

Read Full Article



“Kicking Off Summer” Vista Partners FREE Weekly Market Update 5-26-18

Vista Partners has published “Kicking Off Summer” Vista Partners FREE Weekly Market Update 5-26-18 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30, International and Select Emerging Growth Companies & Now “Investor Picks”, where we have begun to selectively add those companies/ideas that we are receiving from investors around the world.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have elected to be updated each week. Please “Join us” Today!

 

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.




“Little Russell Rules The Week” Vista Partners Weekly Market Update 5-19-18

Vista Partners has published “Little Russell Rules The Week” Vista Partners Weekly Market Update 5-19-18 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30, International and Select Emerging Growth Companies & Now “Investor Picks”, where we have begun to selectively add those companies/ideas that we are receiving from investors around the world.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have elected to be updated each week. Please “Join us” Today!

 

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.




“On The Rebound?” Vista Partners Weekly Market Update 5-12-18

Vista Partners has published “On The Rebound?” Vista Partners Weekly Market Update 5-12-18 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30, International and Select Emerging Growth Companies & Now “Investor Picks”, where we have begun to selectively add those companies/ideas that we are receiving from investors around the world.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have elected to be updated each week. Please “Join us” Today!

 

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.




Cloud Service Provider Fusion Strikes Again Lands $71.5M California Based Acquisition

New York City based Fusion (FSNN), a leading provider of cloud services, has signed a definitive agreement to acquire privately-held Pleasanton, California based MegaPath Holding Corporation (“MegaPath”). MegaPath is reported to provide a robust, fully-integrated suite of cloud services including Unified Communications as a Service (UCaaS), cloud computing, security, SD-WAN and cloud connectivity. The transaction is valued at under 5.0x pro forma Adjusted EBITDA including anticipated cost synergies realized within 12 months of closing.

Total consideration in the MegaPath transaction is $71.5M with up to $10M of the consideration is payable at Fusion’s election in unregistered shares of Fusion common stock priced at $5.78/share. Fusion intends to fund the cash portion of the consideration via borrowings under its First Lien Senior Secured Credit Facility, $62.0 million of which is currently held in escrow for this acquisition. The transaction is expected to close within the next 90 days, subject to receipt of certain regulatory approvals and other customary closing conditions. Bank Street Group served as the exclusive financial advisor to MegaPath in connection with this transaction.

Fusion reported that this MegaPath acqusition provides the following advantages:

  • Contributes additional financial scale with approximately $70 million in annual revenue, 95% of which consists of contracted monthly recurring revenue (MRR), and adjusted EBITDA of approximately $15 million including anticipated cost synergies
  • Adds more than 8,000 small and medium business and large enterprise customers, with an average monthly revenue per customer (ARPU) of $750 and 1.0% monthly churn
  • Provides a robust, customizable and highly scalable back office/OSS platform that is expected to be utilized across the full company to support enterprise customer needs and increase efficiency
  • Adds approximately 45 quota-bearing sales representatives across direct and indirect sales channels as well as a number of distribution partners, driving upselling and cross-selling opportunities and deepening Fusion’s strong relationships throughout the Channel Partner sales channel
  • Brings a highly capable staff of experienced cloud services professionals with expertise to facilitate more rapid integration of the businesses and execution of Fusion’s strategy

Matthew Rosen, Fusion’s Chairman and CEO, stated, “This transaction is further evidence that Fusion is rapidly building a cloud services industry leader around our unique and compelling single-source strategy. MegaPath is an ideal fit with our strategic objectives as it adds a diverse, high-value business customer base, a team of cloud services experts, and incremental financial scale, with a high percentage of MRR, high ARPU and low churn relative to industry averages. Given the similarities between our businesses, we expect the MegaPath acquisition to facilitate the customer, operational and financial integration of Birch, enabling us to drive Fusion’s strategy more efficiently across the entire organization.”

Craig Young, MegaPath’s CEO stated, “The Cloud Services market is recognizing the superior value of integrated solutions from a single-source provider. Fusion’s differentiated strategy, its high-quality integrated product suite and its scalable platform are therefore a natural fit with MegaPath’s business and culture. Our participation in the equity of Fusion through this transaction underscores our confidence that the combination of the two companies will create significant value for shareholders. Furthermore, our customers will continue to benefit from the same high levels of service quality, customer care and innovation from Fusion that they’ve come to expect from MegaPath.”

To learn more about Fusion (Nasdaq: FSNN) and to track its progress please visit the Vista Partners Fusion (FSNN) Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!
Join us at Vista Partners! It’s FREE to receive email updates.

 

 

 

 

 

Fusion Announces Definitive Agreement to Acquire MegaPath

Fusion (FSNN), a leading provider of cloud services, announced today that it has signed a definitive agreement to acquire privately-held MegaPath Holding Corporation (“MegaPath”). Based in Pleasanton, California, MegaPath provides a robust, fully-integrated suite of cloud services including Unified..

finance.yahoo.com

Read Full Article



Fusion Closes Transformational Acquisition – Moves To Nasdaq Global Market

Fusion (NasdaqGM: FSNN), a leading provider of cloud services, announced Monday that on May 4, 2018, it closed its previously-announced acquisition of the Cloud and Business Services business of Birch Communications Holdings, Inc. (“Birch”). The acquisition was completed through a merger of a wholly-owned subsidiary of Fusion with and into Birch. The total enterprise value of this transaction was a ~$600 million, consisting of approximately 50 million shares of Fusion common stock and the refinancing of $444 million of Birch indebtedness.  Fusion also notified shareholders that its shares of common stock were approved for listing on The Nasdaq Global Market, effective with the open of the market on May 7, 2018. Fusion’s common stock continues to trade under its existing trading symbol “FSNN.” The structure of the transaction triggered a new listing application requirement according to Nasdaq’s rules, which includes a minimum bid price of $4.00 per share. In connection with the new listing, Fusion announced that it has effected a 1-for-1.50 reverse split of its common stock for stockholders of record as of the open of business on May 4, 2018.  Fusion further announced that on May 4, 2018, it completed the planned divestiture of all of its interests in its Carrier Services business.  As a result, Fusion’s sole focus is on the Cloud and Business Services market.

 

 

 

 

 

Fusion offered the following highlights regarding this acquisition:

  • Creates an industry-leading cloud and business services company with more than $500 million in pro forma annual revenue
  • Excludes Birch’s legacy consumer and single-line business customers, which have lower profitability and average revenue per customer (ARPU) as well as higher churn rates
  • Empowers Fusion to expand and accelerate its highly differentiated single-source strategy across a much larger platform and customer base consisting of more than 150,000 businesses
  • Adds considerable sales and distribution resources, for a total of approximately 75 direct, indirect and inside sales professionals and more than 800 active distribution partners
  • Capitalizes on Fusion’s robust intellectual property, go-to-market strategy, and brand awareness developed over the last several years as the Single Source for the Cloud
  • Combines both companies’ network infrastructure assets into one of the largest North American, 100% IP-based networks that is low cost and highly scalable, with approximately 31,000 route miles of fiber
  • Brings to Fusion a talented employee base of technology professionals, bound by a common vision for the future, a culture of innovation and a commitment to service excellence
  • The Birch acquisition was financed through borrowings under Fusion’s new $680 million Senior Secured Credit Facilities (the “Facilities”), which closed on May 4, 2018. The Facilities include $640 million in term loans and a $40 million revolving credit facility, which is currently undrawn. Including the revolving credit facility, the Facilities bear interest at a weighted-average rate of LIBOR plus 7.56%. Excluding the revolving credit facility, the Facilities bear interest at a weighted-average rate of 7.72%.

 

Matthew Rosen, Fusion’s Chairman and CEO, stated, “Today marks the beginning of an exciting new era for Fusion, as we now move forward to realize the tremendous potential of the combined company. In bringing the two businesses together, we have created a market-leading Cloud Services company that is positioned for further growth, both organically and through additional strategic acquisitions. We are confident that Fusion can create significant, long-term value for shareholders by extending our proven strategy as the single source for the cloud across our greatly expanded platform and customer base and leveraging our substantially greater scale and resources. Our new financing likewise represents another major step toward Fusion’s goal of becoming the industry’s leading single-source cloud services provider. We appreciate the support we received from Goldman Sachs, Morgan Stanley and MUFG as joint lead arrangers, as well as previous lenders to Fusion and Birch who participated in this financing along with a number of new lenders.”

To learn more about Fusion (Nasdaq: FSNN) and to track its progress please visit the Vista Partners Fusion (FSNN) Coverage Page.

 

 

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!
Join us at Vista Partners! It’s FREE to receive email updates.
Read Full Article



Vista Partners Publishes April’s FREE Macroeconomic & Investment Monthly Newsletter, “U.S. Economy Remains Strong, Anticipating Steady Growth With Rate Twist”

Vista Partners (“Vista”) has published April’s FREE Macroeconomic & Investment Monthly Newsletter, “U.S. Economy Remains Strong, Anticipating Steady Growth With Rate Twist.”

Vista’s monthly newsletter contains investment considerations for Banks, Biotech, Cloud Services, Energy, Fintech, Healthcare, Manufacturing, Materials, Real Estate, SaaS, and Technology.

Vista Partners centers its Coverage on the Dow 30 Components, Select Emerging Growth Companies & Vista’s Featured Companies, with exclusive, broad-based commentary from Managing Director, John F. Heerdink, Jr.

In April’s edition of the Macroeconomic & Investment Newsletter, Mr. Heerdink states, “Signs of inflation, including rising commodity prices including oil, coupled with ….” Read full newsletter.

Companies Featured in March’s Newsletter:

Companies Featured in April’s Newsletter: Atossa Genetics, Inc.(NASDAQ: ATOS) | Caterpillar (CAT) | Coca-Cola (KO) | Disney (DIS) | Fusion, Inc. (NASDAQ: FSNN) | Intel (INTC) | & | Microsoft (MSFT).

Vista Partners publishes 100% of its content free. Vista Partners offers a wealth of mixed-media resources on the Dow 30 & Select Emerging Growth Companies. To receive FREE email updates from Vista’s select & extensive coverage universe, please sign up at VistaPGlobal.com/signup.

About Vista Partners LLC:

Founded in 2005, Vista Partners LLC (“Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, and Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

We encourage readers to view a complete list of disclaimers and disclosures on the Vista Partners website at VistaPGlobal.com/disclaimer.

Please follow Vista Partners on Twitter @VistaPResearch to receive updates, thoughts, and ideas on Dow 30 Components, Select Emerging Growth Companies & Vista’s Featured Companies.

Contact:

inquiries@VistaPGlobal.com




“Where’s That Bunny Headed?”

Vista Partners has published “Where’s That Bunny Headed?” Vista Partners Weekly Market Update 3-31-18 and is accessible on our Newsletters Page. Each issue is written by Managing Director, John Heerdink and speaks to the activities of the market, influencers and specific featured stories from Vista’s Coverage Universe that spans the Dow 30, International and Select Emerging Growth Companies.

Each weekly update issue is sent out via email directly to the thousands of investors around the world that have elected to be updated each week. Please “Join us” Today!

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.