Observational Notes on Adtran Inc. (ADTN)

Journal Entry: 30 July 2013
Adtran, Inc. Capitalization Rate
in millions except shares outstanding

Closing price: $26.29
Shares Outstanding: 59,273,597
market value of equity: $1,541.11
Debt, fair value: $47.90
Cash & Equivalents: $558.36
Enterprise Value: $1,030.65TTM EBITDA less CapEx: $33.77
Runrate EBITDA less CapEx: $41.23
Pre-tax Cap Rate: 3.62%

• provider of networking and communications equipment.
• products enable voice, data, video and Internet communications across a variety of network infrastructures
• ended the year 2012 with 24 percent of our revenue coming from the international market, doubling percentage from the previous year
• significant growth outside of its traditional geographic customer base due to 2012 acquisition of f Nokia Siemens Networks’ Broadband Access Business (BBA)
• acquisition added 300 new team members in engineering, sales, services and support
• Industry has increased growth capital expenditures for global broadband expansion
• Three major product categories are:
• Carrier Systems products are used by communications service providers to provide data, voice and video services to consumers and enterprises.
• Business Networking products provide access to telecommunication services and facilitate the delivery of cloud connectivity, enterprise communications and virtual mobility to the Small and Mid-sized Enterprise (SME) market.
• Loop Access products are used by carrier and enterprise customers for access to copper-based telecommunications networks.
• ADTRAN Chief Executive Officer Tom Stanton stated in Q2 2013 news release, “Continuing improvement in our Internetworking and Broadband Access product areas led revenues which exceeded estimates for the quarter. During the quarter we benefited from market share gains, the geographic expansion we began last year and an improved spending environment.”

2012 Annual Report

What’s The Difference Between Tier 1, 2 and 3 Carriers, And Who Are They In The US?

International Shipholding Corporation (ISH) Capitalization Rate

 (in millions except PPS)

Price - $19.40
Shares Outstanding - 7.23
market capitalization - $140.23
Long-term debt - $306.10
Cash & Equivalents - $35.52
Enterprise Value - $410.81
normalized 2011 EBIT - $29.35
Pre-tax Cap Rate - 7.15%
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.