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Your weekly dose of actionable deal flow intelligence by DailyDAC.
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By DailyDAC™ • Issue #48 • June 1, 2022
A curation of actionable deal flow intelligence using some very proprietary sources, some public (but dispersed) data and a lot of spit & vinegar.
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Buy, Sell, or Hold Recommendation Issued |
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Blackbaud, Inc. (BLKB-Nasdaq). DailyDAC initiated coverage of BLKB on May 12, 2022, as ID #33491. The stock price on that date was $54.33.
BLKB sells cloud-based software, training, and data analytics to nonprofits and other “social impact” organizations, especially those with volunteer networks and those that conduct fundraising campaigns and enterprise philanthropy. BLKB states in its 10-K that it has more than 40,000 customers in at least 50 countries. The company has 3,600 employees, with headquarters in Charleston, SC. BLKB has established itself as a software leader in the social good niche. With its acquisition of EverFi in January 2022, BLKB is also a technology leader in the “ESG and CSR space.”
Founded in 1981, BLKB first sold shares to the public on July 22, 2004. The stock peaked at $117.76 per share on July 20, 2018. Since December 21, 2018, the stock price has been fairly volatile, trading within a range of $49.34 to $83.27. BLKB closed on May 26, 2022, at $63.02.
DailyDAC initiated coverage of BLKB shortly after John W. Olson, SVP and general counsel, sold off 7,000 shares of BLKB (average price $53.03, total value $371,210). Although Olson’s trades drew our attention, according to Nasdaq statistics on BLKB insider activity, over the past 12 months the number of shares bought exceeds the number of shares sold by about 78,000 shares.
Earlier this year BLKB acquired EverFi, a pioneer in the field of “community engagement ecosystem” software whose customers include schools and school districts. The acquisition doubles the BLKB’s total addressable market to $20 billion, with significant cross-sell opportunities – but does so at the price of $750 million, which BLKB financed with cash and debt ($450 million) and stock ($300 million).
Financials
BLKB has depended on M&A to drive its growth over the past seven years. It is now highly leveraged, with a debt/equity ratio of 1.37. On its December 31, 2021 balance sheet, BLKB shows current assets of $851 million and current liabilities of $1.11 billion. Although total revenue has increased each year over the past four years, net income has declined each year, according to BLKB’s December 31, 2021 income statement.
Executive Team
Michael P. Gianoni has been BLKB president and CEO since 2014. Before 2014, Gianoni served as an executive at a number of global technology and data analytics companies, including most recently Fiserv, a tech provider in the financial services industry. Steve Halleck is Blackbaud’s SVP of business operations. He has a 32-year career in technology services, previously at Fiserv, CheckFree, and Wachovia Bank. The executive team is heavy on tech and financial services experience, and very light on nonprofit or "social good" experience. If BLKB’s competitive advantage is that it wants to dominate the social good niche, its executives are more suited to a financial services niche.
BLKB’s executive team is not so diverse. Of the 11 executives, only one is a person of color. Nine are men, two are women – presumably not a reflection of its market demographics.
Recommendation
DailyDAC issued a SELL recommendation on May 28, 2022. It appears to us that revenue growth through acquisition will not result in significant earnings growth in the near or midterm future. Deal ID: 33659
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- Jamestown National Hotel Country Inn. Hotel. Bulk Sale. The name and business address of the Seller is National El Dorado Company, Inc., 18183 Main Street, Jamestown, California 95327. The name and business address of the Buyer is National Hotel and Restaurant Inc., 18183 Main Street, Jamestown, California 95327. The assets to be sold are generally described as, FF&E, all stock in trade, and other property. The bulk sale will be held on June 14, 2022. More info: Old Republic Title Company located at 1000 Burnett Avenue, Suite 400, Concord, California 94520. Deal ID: 33619
- Agape Auto Repair. Auto repair shop. Bulk Sale. The name and business address of the Seller is Agape Auto Repair, Inc., 43216 Via Dos Picos #A, Temecula, California 92590. The name and business address of the Buyer is Famila Canendo Group, Inc., 43216 Via Doc Picos #A, Temecula, California, 92590. The assets to be sold are generally described as FF&E. The bulk sale will be held on June 14, 2022. More info: Warranty Escrow Service Corp @ (760) 434-1800. Deal ID: 33620
- Nellos Market and Glass Beach Deli. Deli. Bulk Sale. The name and business address of the Seller is Family Business the LLC, 860 N. Main Street, Fort Bragg, California 95437. The name and business address of the Buyer is Nellos Market & Deli Inc., 860 N. Main Street, Fort Bragg, California 95437. The assets to be sold are generally described as FF&E, trade name, goodwill, lease, leasehold improvements, covenant not to compete, and liquor license. The bulk sale will be held on June 16, 2022. More info: Unity Escrow, Inc. located at 3600 Wilshire Blvd., Suite 900 Los Angeles, California 90010. Deal ID: 33623
- Ontario Laundry Inc. Laundry equipment supplier. Bulk Sale. The name and business address of the Seller is Ontario Laundry, 813 E Holt Blvd., Ontario, California 91761. The name and business address of the Buyer is JBQ L.L.C., 813 E Holt Blvd, Ontario, California 91761. The assets to be sold are generally described as FF&E, trade name, goodwill, lease, leasehold improvements, and covenant not to compete. The bulk sale will be held on June 13, 2022. More info: Central Escrow LA, Inc. located at 3660 Wilshire Blvd., Ontario, California 91761. Deal ID: 33626
- Arco AM/PM. Franchise gas station and convenience store. Bulk Sale. The name and business address of the Seller is Alliance Capital Oil, Inc., 2800 W A Street, Dixon, California 95620. The name and business address of the Buyer is Raj Singh, 1966 Creekwood Drive Yuba City, California 95993. The assets to be sold are generally described as FF&E, all stock in trade, and goodwill. The bulk sale will be held on June 13, 2022. More info: Capitol City Escrow, Inc. located at 3838 Watt Avenue, Suite F-610 Sacramento, California 95821-2665. Deal ID: 33628
- Izzy’s Burger Spa Too. Burger and fries cafe. Bulk Sale. The name and business address of the Seller is James Vincent Mowrey III, 13915 S Park Dr., Magalia, California 95954. The name and business address of the Buyer is Randy Rash, 15049 Pinehurst Way Magalia, California 95954. The assets to be sold are generally described as FF&E, all stock in trade, and goodwill. The bulk sale will be held on June 13, 2022. More info: Capitol City Escrow, Inc. located at 3838 Watt Avenue, Suite F-610 Sacramento, California 95821-2665. Deal ID: 33629
- Menegon’s Hardware & Housewares. Hardware store. Bulk Sale. The name and business address of the Seller is Menegon's Hardware & Housewares, Inc., 4000 Lake Tahoe Blvd, Suite 200, South Lake Tahoe, California 96150. The name and business address of the Buyer is Lifestyle Tahoe LLC, 9045 Adam Ave, Huntington Beach, California 92646. The assets to be sold are generally described as FF&E, inventory, supplies, owned and leased vehicles, leasehold interest, assumed contracts, and government approvals. The bulk sale will be held on June 20, 2022. More info: Commonwealth Land Title Company located at 4100 Newport Place Drive, Street 120, Newport Beach, California 92660. Deal ID: 33630
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Chapter 7 Bankruptcy - 363 Sales |
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- Real Estate. Chapter 7 Bankruptcy 363 Motion filed. Case No. 4:21-bk-00424, Adam B. Nach is the attorney for this case. Stanley J. Kartchner is the Trustee. The real property located at 1101 Se Old West Hwy, Duncan, Arizona 85534-2051 will be sold by auction. More info here or Kristofer McDonald of Lane & Nach, P.C. @ kristofer.mcdonald@lane-nach.com or (602) 258-6000, ext 314. Deal ID: 33658
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Chapter 7 Filings Involving Companies
With Significant Assets |
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- Johnny T. Wiedmann Roofing, Inc. Roofing company. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 6:22-bk-01852 (case filed on May 24, 2022 in the Middle District of Florida). The debtor’s address is 125 Bel Aire Dr S, Merritt Island, FL 32952-3608. It has a functional and attractive website offering a wide variety of roofing services as well as 16 Google reviews resulting in 4.8 stars. More info: Neil J Buchalter of Neil J Buchalter PA @ (321) 205-0900 or eservice@buclawgroup.com. Deal ID: 33617
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Chapter 11 Bankruptcy - 363 Sales |
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- WP Realty Acquisition III LLC. Real estate company. Chapter 11 Bankruptcy Sale. In re WP Realty Acquisition III LLC, case number 7:20-bk-23038 (case filed in the Southern District of New York, Judge Sean H Lane). The debtor’s address is 81 Main St, Dobbs Ferry, NY 10522-1673. Debtor is selling property 115-117 Cedar Street, New Rochelle, NY for the sum of $4,800,000. The bidding shall be in increments of $25,000 after the initial overbid of $4,950,000. A competing bid in writing setting forth the proposed purchase price and terms should be sent to the debtor’s counsel, Goldberg Weprin Finkel Goldstein LLP, 1501 Broadway, 2nd Fl. New York, New York 10036, Attn: Kevin Nash (knash@gwfglaw.com). The bid deadline will be 2 days prior to the auction, and the auction will be set 30 days after the bidding procedures order is approved and entered. More info: J. Ted Donovan of Goldberg Weprin Finkel Goldstein LLP, Debtor’s counsel @ (212) 221-5700 or tdonovan@gwfglaw.com. Deal ID: 33613
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Exploring Strategic Alternatives / Out-of-Court Restructuring Action / Cash Constraints |
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- Zovio, Inc. (NASDAQ: ZVO). Education services company. Out-of-Court Restructuring. DailyDAC initiated covering ZVO in our May 10, 2022 newsletter as a result of a notice of delisting received by ZVO on May 3, 2022. ZVO appointed a new CEO in December who has recently initiated a number of restructuring plans to turn the company around including reducing costs, improving enrollment, divestiture where necessary, clearing debt, and reviewing strategic alternatives that will create the greatest value for shareholders. ZVO closed at $0.83 on May 27, 2022. As of that date, ZVO’s 52-week high was $3.10 with a 52-week low of $0.66. Deal ID: 33434
- ALJ Regional Holdings, Inc. (NASDAQ: ALJJ). Call center company. Exploring Strategic Alternatives. On May 16, 2022, ALJJ released its Q2 earnings and announced the exploration of strategic alternatives. It is unclear whether the purpose of this will be to maximize shareholder value. CEO Jess Ravich, who has a less than favorable reputation, stated that the company is “focusing on the next steps for ALJ, which includes managing the remaining verticals of Faneuil (a subsidiary), deploying cash balances, and possible strategic alternatives." This news comes as ALJJ has sold off part of its call center business as well as its whole publishing business for enough cash to cover all of the company's debt, making it possible that this capital will be returned to shareholders as has happened in ALJJ’s past. ALJJ closed at $2.03 on May 27, 2022. As of that date, ALJJ’s 52-week high was $2.80 with a 52-week low of $0.96. Deal ID: 33652
- Tyme Technologies Inc. (NASDAQ: TYME). Biotechnology company. Exploring Strategic Alternatives. On May 25, 2022, TYME announced Q4 earnings ending on March 31, 2022. Additionally, TYME announced in March that it would begin a process to explore strategic alternatives. This news comes as TYME has ceased development of its primary compound, a cancer metabolism-based therapy, and is burning cash while possibly looking for a buyer. TYME closed at $0.26 on May 27, 2022. As of that date, TYME 52-week high was $2.02 with a 52-week low of $0.22. Deal ID: 33653
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- Pretium Packaging LLC. Manufacturer. Facility Closings. Pretium Packaging LLC is permanently closing its 200 West 0th Street facility located in Hermann, Missouri 65041. Approximately 73 employees will be laid off on July 31, 2022. Deal ID: 33631
- The Research Foundation for the State University of New York at Downtown Health Sciences University. Infant Child Learning Center. Facility Closings. The Research Foundation for the State University of New York at Downtown Health Sciences University is permanently closing its 670 Parkside Avenue facility located in Brooklyn, New York 11226. Approximately 26 employees will be laid off on August 31, 2022. Deal ID: 33633
- Senneca Holdings. Management company. Facility Closings. Senneca Holdings is permanently closing its 3333 Win Street facility located in Cuyahoga Falls, Ohio. Approximately 18 employees will be laid off on August 31, 2022. Deal ID: 33638
- Dr. Martens Airwair USA, LLC. Footwear manufacturer. Facility Closings. Dr. Martens Airwair USA, LLC is permanently closing its 3627 N. Anchor Street facility located in Portland, Oregon 97217. Approximately 71 employees will be laid off on October 31, 2022. Deal ID: 33639
- Mountain State Carbon LLC. Petroleum and coal products manufacturer. Facility Closings. Mountain State Carbon LLC is permanently closing its 1851 Main Street facility in Follansbee, West Virginia 26037. Approximately 265 employees will be laid off on June 5, 2022. Deal ID: 33640
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- StarTek. Call Center. Mass Layoffs. Startek is eliminating 472 positions at its 1828 Landrum Drive #9191, Farmington, Missouri 63640. Layoffs will begin on May 29, 2022. Deal ID: 33632
- Dillard's. Department store company. Mass Layoffs. Dillard’s is eliminating 81 positions at its 3111 Midwestern Pkwy facility in Wichita Falls, Texas. Layoffs will begin on July 14, 2022. Deal ID: 33634
- Hawthorne Gardening Company. Horticulture supplier. Mass Layoffs. Hawthorne Gardening Company is eliminating 42 positions at its 3204 NW 38th Cir facility in Vancouver, Washington 98660. Layoffs will begin on August 1, 2022. Deal ID: 33637
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Opportunistic Intel About Private Sales
Not Listed in other Categories |
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(Noteworthy Non-Distressed Auctions, Private Business Sales, Private Personal Property Sales, Private Real Estate Sales, Overstocks/Obsolete Inventory, and Other Interesting Sales Without a Legal Process) |
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- 6995 Davis Ferry Road, Loudon, Tennessee 37774. Commercial/Office/Residential (mixed use). Private Real Estate Sales. The auction will be held on June 15, 2022 at 11:00 am EST online. A commercial building and 2 residential buildings sit on this 13-acre property. The commercial building is a shop that’s about 10,500 SF and a 1,600 SF office area with 8 rooms. The main residential building is a 1, 875 SF home with three bedrooms, a basement, and a garage. The third building is a mobile home with two bedrooms. The property is valued at $1,500,000 by Zillow. More info here or Wade K. Cannon, Substitute Trustee, located at 320 McCallie Avenue Chattanooga, Tennessee 37402 @ (423) 756-5171. Deal ID: 33651
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Rating Agency Alerts/Going Concern Opinions/Stock Market Delisting/Other Signs of Potential Distress OR Upside Alpha Opportunity™ |
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- CareView Communications Inc. (OTCMKTS: CRVW). Healthcare technology company. Going Concern Opinion. On May 26, 2022, CRVW filed a quarterly report (Form 10-Q) in which its management raised substantial doubt about the company’s ability to continue as a going concern for the next 12 months. CRNW recently entered into a three-year agreement with a California hospital to use their equipment, nevertheless while CRVW has installations in nearly 150 hospitals the company is seeming to see an adjustment from their Covid spike. CRVW closed at $0.089 on May 26, 2022. As of that date, CRVW’s 52-week high was $0.23 with a 52-week low of $0.042. Deal ID: 33654
- Direct Digital Holdings Inc. (NASDAQ: DRCT). Advertising company. Stock Market Delisting. On May 20, 2022, DRCT received notice of delisting from the NASDAQ. This notice of delisting is a result of DRCT’s failure to maintain the minimum of $2,500,000 in stockholders’ equity for continued listing. DRCT’s current stockholders’ equity is at $1,797,864 as of March 21, 2022. DRCT now has 180 to regain compliance and avoid delisting from the exchange. DRCT closed at $1.62 on May 27, 2022. As of that date, DRCT’s 52-week high was $5.49 with a 52-week low of $1.18. Deal ID: 33655
- New York City REIT (NYSE: NYC). REIT company. Other Signs of Potential Distress. NYC has breached covenants regarding over $200 million in debt across four of its eight different properties placing it dangerously close to default. NYC released a statement in which it attributed the issues to financial issues of tenants and early lease expirations. NYC is not currently in default but has disclosed in a quarterly SEC filing that it expects to be in breach in the coming months which, unless remedied, will result in default. This news comes on the heels of a proxy fight over NYC. NYC closed at $8.01 on May 27, 2022. As of that date, NYC’s 52-week high was $14.80 with a 52-week low of $5.79. Deal ID: 33656
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(including Article 9 sales, commercial real estate foreclosure sales, residential real estate foreclosure sales, sheriff’s sales, tax sales, warehouse lien sales) |
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- 17 Kimball Road, Londonderry, Rockingham County, New Hampshire. Residential Foreclosure Sale. The public auction is on June 7, 2022, at 10:00 am local time at the property. The property is a six-bedroom, 4,539 SF home, estimated by Zillow to be worth $720,300. Mortgage Asset Management, LLC is the mortgagee. More info: Marinosci Law Group, P.C., Attorneys for the Mortgagee @ (401) 234-9200. Deal ID: 33650
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The Fine Print: Your use of the information in DailyDAC, LLC’s Opportunistic Deal Database™ and Distressed Deal Database™, and your right to be a subscriber is strictly conditioned on your acceptance of our terms and conditions.
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