Newmark Group, Inc. (NASDAQ: NMRK) has announced its intention to commence an offering of senior unsecured notes, subject to market conditions and other factors. The company stated that the notes are to be offered and sold in a private offering exempt from the registration requirements under the securities act of 1933.
According to data, Newmark Group's stock moved -1.4% to close out the week, and is currently trading at a price of $10.13 per share.
In response to the announcement, company management provided insight into their plans, stating, "The company intends to use the net proceeds to repay all or a portion of the $420.0 million outstanding under its term loan. Any additional net proceeds will be used to repay outstanding revolving debt, including with respect to the borrowings under the company's credit agreement with Cantor Fitzgerald, L.P., and for general corporate purposes."
The full 8-K submission can be accessed here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,048 | $2,218 | $1,905 | $2,906 | $2,706 | $2,330 |
| Revenue Growth | n/a | 8.33% | -14.12% | 52.57% | -6.91% | -13.87% |
| Interest Income (MM) | -$50 | -$32 | -$38 | -$33 | -$31 | -$32 |
| Operating Margins | 16% | 11% | 10% | 43% | 7% | 3% |
| Net Margins | 5% | 5% | 4% | 26% | 3% | 1% |
| Net Income (MM) | $107 | $117 | $80 | $751 | $83 | $12 |
| Depreciation & Amort. (MM) | $98 | $131 | $141 | $122 | $166 | $169 |
| Earnings Per Share | $0.64 | $0.58 | $0.39 | $3.8 | $0.45 | $0.08 |
| Diluted Shares (MM) | 164 | 185 | 180 | 196 | 245 | 247 |
| Free Cash Flow (MM) | -$353 | $952 | -$797 | -$68 | $1,134 | $380 |
| Capital Expenditures (MM) | $21 | $35 | $20 | $20 | $62 | $66 |
| Current Ratio | 1.06 | 1.03 | 1.07 | 1.15 | 0.68 | 0.93 |
Newmark has growing revenues and increasing reinvestment in the business, low leverage, and irregular cash flows. However, the firm has declining EPS growth. Finally, we note that Newmark has average net margins with a negative growth trend.
