According to documents filed with the US Bankruptcy Court, multiple parties including Boomerang Systems, the official committee of unsecured creditors and BrickellHouse Holding filed separate objections to the motion of Campus Acquisitions 308 Green and HERE Lawrence Property Owner for an order (I) to convert the Debtors cases to Chapter 7 or, in the alternative, (ii) to appoint a Chapter 11 trustee.
The official committee of unsecured creditors asserts, Simply stated, the Motion to Convert is premature. The Motion to Convert was filed less than a week after the Committee retained professionals in these cases. The Debtors deadline to submit a business plan for consideration by the post-petition secured lenders (and the Committee) is not set to expire until after the hearing currently scheduled on the Motion to Convert.The immediate conversion of these cases will eliminate the possibility that these creditors may recognize the value associated with the Debtors continued operations. Notably, the Debtors current path toward reorganization must occur in a very short timeframe. The Debtors are required to emerge from bankruptcy within a 13-week period. The first step toward that goal is the preparation and submission of a business plan to govern the Debtors anticipated post-bankruptcy operations.
The objection continues, The Committee will also be in a better position to determine if the Debtors have any real possibility of renegotiating pre-petition business arrangements to complete properly-functioning parking structures. All of this information will be relevant to the Committees determination of what path for future case administration best serves the interests of unsecured creditors. At this point, the Committee believes that the Debtors deserve the opportunity to move these cases toward reorganization.
“As part of the winning bid, Blackhawk intends to acquire a number of Patriot’s active mining operations including the Panther, Rocklick, Wells, Kanawha Eagle, Paint Creek and Midland Trail mining complexes,” the company said in an e-mailed statement.
Under terms of the deal, Blackhawk will issue new debt securities and Class B units to Patriot’s secured lenders giving them an ownership stake in the company, the statement showed.
Patriot will seek court approval of the sale as part of its plan to exit bankruptcy, which is set to be heard Oct. 5.
Some creditors and state environmental agencies have challenged the plan saying it isn’t feasible.Barclays Plc’s consumer-banking unit, an agent for a group of secured lenders owed about $200 million, recently asked the court to convert the bankruptcy case to a formal liquidation arguing that it would receive better treatment.
WILMINGTON, Mass., Sept. 28, 2015 /PRNewswire/ –Implant Sciences Corporation (OTCQB: IMSC), a leading manufacturer of explosives trace detection (ETD) and drugs trace detection solutions for homeland security applications, today announced financial results for the three months and fiscal year ended June 30, 2015.
Revenues for the three months ended June 30, 2015 increased 271.2%, to $5.7 million, from $1.5 million for the comparable prior year period. Our net loss for the three months ended June 30, 2015 was $4.2 million as compared with a net loss of $5.7 million for the comparable prior year period, a decrease of $1.5 million.
Revenues for the year ended June 30, 2015 increased 51.9%, to $13.0 million, from $8.6 million for the comparable prior year period. Our net loss for the year ended June 30, 2015 was $21.5 million as compared with a net loss of $21.0 million for the comparable prior year period, an increase of $0.5 million.
Earnings before interest, taxes, depreciation and amortization, stock-based compensation, warrants issued to non-employees and common stock issued to consultants (Adjusted EBITDA), which is reconciled to net loss in this press release, was a loss of $944,000 in the three months ended June 30, 2015, compared to a loss of $2,939,000 in the comparable prior year period and for the year ended June 30, 2015, a loss of $9,053,000 compared to a loss of $10,048,000 in the comparable prior year period.
Dr. William McGann, CEO of Implant Sciences, commented, During the recently concluded quarter, we began the fulfillment of the ECAC orders with initial shipments of QS-B220s to the Netherlands and Norway, resulting in the achievement of $5.7 million in revenues for the quarter. We are pleased to report that our order backlog, at June 30, 2015, was $44,782,000, which is largely due to the receipt, on November 10, 2014, of an initial delivery order from the TSA for 1,170 QS-B220 desktop explosives trace detectors and orders received as a result of the ECAC mandate to implement passenger checkpoint and checked baggage ETD screening at airports serving more than 500,000 passengers annually, by no later than September 1, 2015. However, our backlog does not necessarily represent actual future shipments since orders, including our delivery order with the TSA, may be delayed or cancelled by our customers without financial penalty. We believe that our revenues for fiscal year 2016 will range between $40-43 million.
Dr. McGann, continued, We are continuing actions taken during the recently concluded fiscal year to better align our costs with current and future geographic sources and improve efficiencies. We have taken important steps to broaden the markets we serve, increase our revenue opportunities, and improve our financial stability.
Details for the three months and year ended June 30, 2015 follow below.
Three months Ended June 30, 2015 vs. June 30, 2014
Revenues for the three months ended June 30, 2015 were $5,676,000 as compared with $1,529,000 for the comparable prior year period, an increase of $4,147,000, or 271.2%. The increase in revenue is due primarily to: a 805.6% increase in the number of QS-B220 desktop units sold in the three months ended June 30, 2015, due to increased shipments to European and Latin American in the current three month period, offset partially by a 11.9% decrease in the average unit sales prices, which resulted in a 700.9% increase in QS-B220 revenues. The increased revenues achieved on our sales of the QS-B220 were partially offset by a 16.7% decrease in the number of QS-H150 handheld units sold in the three months ended June 30, 2015, compared to the prior period, due to decreased shipments to Europe and Asia, and by a 11.8% decrease in the average unit sales prices, which resulted in a 26.3% decrease in QS-H150 revenues. Sales of parts and supplies increased 203.8% in the three months ended June 30, 2015. Sales of QS-B220 were favorably impacted in the comparable prior period due to the acceptance of the QS-B220 into the Qualified section of the TSAs Air Cargo Screening Technology List and achieving ECACs Common Evaluation Process of Security Equipment for airport checkpoint screening of passengers and baggage.
Gross margin for the three months ended June 30, 2015 was $2,361,000 or 41.6% of revenues as compared with a loss of $135,000 or 8.8% of revenues for the comparable prior year period. The increase in gross margin as a percent of revenues is primarily due to increased manufacturing overhead absorption due to increased QS-B220 unit volume and the $160,000 increase in the provision for obsolete inventory in the prior period, partially offset by decreases in the average unit sell price on sales of our QS-B220 units and our QS-H150 units.
Research and development expense for the three months ended June 30, 2015 was $1,095,000 as compared with $1,186,000 for the comparable prior year period, a decrease of $91,000 or 7.7%. The decrease in research and development expense is due primarily to the closure of our San Diego, CA advanced technology office, which resulted in a $72,000 decrease in payroll and benefits, a $55,000 decrease in occupancy costs, a $45,000 decrease in certification testing fees which were incurred in the prior period, $41,000 decrease in engineering consulting and a $15,000 decrease in prototypes and material costs. Partially offsetting these decreases are a $100,000 increase in incentive compensation costs due to the increased employee bonuses approved by the board of directors and a $36,000 increase in travel expenses in support of the ECAC tenders.
Selling, general and administrative expenses for the three months ended June 30, 2015 were $3,013,000 as compared with $2,449,000 for the comparable prior year period, an increase of $564,000, or 23.0%. The increase in selling, general and administrative expenses is due primarily to an increase of $299,000 in payroll and benefits due to increased employee bonuses approved by the board of directors, a $185,000 increase in consulting expenses, due to the due to the issuance of 550,000 shares of our common stock to certain consultants, a $179,000 increase in variable selling expenses due to higher sales, a $73,000 increase in audit costs and a $65,000 increase in legal expenses. Partially offsetting these increases are a $222,000 decrease in stock-based compensation expense on non-employee warrants, a $20,000 decrease in occupancy costs due to the relocation of our corporate offices in July 2013 and the $45,000 loss on the disposal of machinery and equipment recorded in the prior year period.
For the three months ended June 30, 2015, other expense was $2,446,000 as compared with other expense of $1,899,000, for the comparable prior year period, an increase of $547,000. The increase is due to increased interest expense on higher borrowings under our credit facility with DMRJ and our credit facility with BAM, and, to a lesser extent, an increase in the BAM interest rate to 16% per annum from 15% per annum, effective April 1, 2015.
Our net loss for the three months ended June 30, 2015 was $4,193,000 as compared with a net loss of $5,669,000 for the comparable prior year period, a decrease of $1,476,000, or 26.0%. The decrease in the net loss is primarily due to increased revenues and gross margin, offset partially by increased operating expenses and an increase in interest expense.
The Years Ended June 30, 2015 vs. June 30, 2014
Revenues for the year ended June 30, 2015 were $12,991,000 as compared with $8,552,000 for the comparable prior year period, an increase of $4,439,000, or 51.9%. The increase in revenue is due primarily to the 139.7% increase in the number of QS-B220 desktop units sold in the year ended June 30, 2015, due to increased shipments to European airports, due to the ECAC mandate to implement passenger checkpoint and checked baggage ETD screening at airports serving more than 500,000 passengers annually, by no later than September 1, 2015, increased shipments to US air cargo screening facilities, increased shipments into Latin America for use in drug detection and increased shipments to agencies of the US government, which resulted in a 117.8% increase in QS-B220 revenues and, to a lesser extent, a 73.7% increase in sales of parts and supplies in the year ended June 30, 2015, as compared to the comparable prior year period. Partially offsetting these increases are a 9.6% decrease in the number of QS-H150 handheld units sold in the year ended June 30, 2015, primarily due to decreased shipments into Mexico and China in the year ended June 30, 2015, which resulted in a 14.7% decrease in QS-H150 revenues. The average unit sell prices on sales of our QS-B220 desktop units and on sales of our QS-H150 handheld units, decreased 9.1% and 5.6%, respectively, in the current fiscal period as compared to the comparable prior period. Sales of QS-B220 were favorably impacted in the current period due to the acceptance of the QS-B220 into the Qualified section of the TSAs Air Cargo Screening Technology List and achieving European Civil Aviation Conference (ECAC) Common Evaluation Process of Security Equipment for airport checkpoint screening of passengers and baggage. Competitive market conditions are expected to continue to have a negative impact on our average unit sales prices for the foreseeable future.
Gross margin for the year ended June 30, 2015 was $4,519,000 or 34.8% of revenues as compared with $2,054,000 or 24.0% of revenues for the comparable prior year period. The increase in gross margin as a percent of revenues is primarily due to increased manufacturing overhead absorption due to increased QS-B220 unit volume and a $150,000 decrease in royalty costs, partially offset by a decrease in the average unit sell price on sales of our QS-B220 desktop units and on sales of our QS-H150 handheld units, which decreased 9.1% and 5.6%, respectively and by a $71,000 increase in stock-based compensation.
Research and development expense for the year ended June 30, 2015 was $5,014,000 as compared with $4,787,000 for the comparable prior year period, an increase of $227,000 or 4.7%. The increase in research and development expense is due primarily to a $151,000 increase in payroll and related benefit costs due to the increased employee bonuses approved by the board of directors, a $69,000 increase in travel cost in support of our sales process in Europe, $42,000 of costs incurred to relocate the San Diego, CA advanced technology office, and a $69,000 increase in stock-based compensation, due primarily to the accelerated vesting of certain options issued on July 2, 2014, offset partially by a $111,000 decrease in engineering consulting.
Selling, general and administrative expenses for the year ended June 30, 2015 were $12,201,000 as compared with $11,388,000 for the comparable prior year period, an increase of $813,000, or 7.1%. The increase in selling, general and administrative expenses is due primarily to a $1,196,000 increase in payroll and related benefits due primarily to separation benefits of $725,000 provided to our former CEO due to his resignation, and to a lesser extent, $331,000 of bonuses approved by the board of directors, $274,000 of charges incurred pursuant to our Letter Agreement with Luveti, a $214,000 increase in legal expenses, a $125,000 increase in consulting expenses, due to the due to the issuance of 550,000 shares of our common stock to certain consultants, a $75,000 increase in variable selling expenses, a $46,000 increase in bad debt expenses and $28,000 of restructuring cost incurred to close our Shanghai office. Partially offsetting these increases are a $697,000 decrease in stock-based compensation expense on non-employee warrants, a $93,000 decrease in travel expenses, a $109,000 decrease in stock-based compensation on employee stock options, a $97,000 decrease in occupancy costs due to the relocation of our corporate offices in July 2013 and the $47,000 loss on the disposal of machinery and equipment recorded in the prior year period.
For the year ended June 30, 2015, other expense was $8,847,000 as compared with other expense of $6,889,000, for the comparable prior year period, an increase of $1,958,000. The increase is due to increased interest expense on higher borrowings under our credit facility with DMRJ and our credit facility with BAM, and, to a lesser extent, an increase in the BAM interest rate to 16% per annum from 15% per annum, effective April 1, 2015.
Our net loss for the year ended June 30, 2015 was $21,543,000 as compared with a net loss of $21,010,000 for the comparable prior year period, an increase of $533,000, or 2.5%. The increase in the net loss is primarily due to increased operating expenses and increased interest expense.
Company Webcast and Conference Call
The Company will host a webcast and conference call on Monday, September 28, 2015 at 4:15 PM Eastern time to review financial results for the quarter and fiscal year ended June 30, 2015. Following the Companys prepared remarks, there will be a Qamp;A session. The call can be accessed by dialing: 866-318-8619 within the US or 617-399-5138 outside the US and entering passcode 19758357. Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available approximately two hours after the call for one month by dialing: 888-286-8010 within the US or 617-801-6888 outside the US and entering passcode 34177190. The conference call will also be available live over the Internet at the Webcasts page of the Investor Relations section of Implant Sciences website at www.implantsciences.com. A replay of the webcast will be available for one month after the call.
Implant Sciences is a leader in developing and manufacturing advanced detection capabilities to counter and eliminate the ever-evolving threats from explosives and drugs. The Companys team of dedicated trace detection experts has developed proprietary technologies used in its commercial products, thousands of which have been sold across more than 60 countries worldwide. The Companys ETDs have received approvals and certifications from several international regulatory agencies including the TSA in the US, ECAC in Europe, CAAC and the Ministry of Public Safety in China, Russia FSB, STAC in France, and the German Ministry of the Interior. It has also received the 2015 GSN Airport/Seaport/Border Security Award for Best Security Checkpoint. All Implant Sciences products are recognized as Qualified Anti-Terrorism Technologies by the Department of Homeland Security. For further details on the Company and its products, please visit the Companys website at www.implantsciences.com.
This press release and any statements of employees, representatives and partners of Implant Sciences Corporation (the Company) related thereto contain or may contain certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Companys plans, objectives, projections, expectations and intentions and other statements identified by words such as projects, may, will, could, would, should, believes, expects, anticipates, estimates, intends, plans, potential or similar expressions. Such statements are based on managements current expectations and are subject to significant risks and uncertainties (many of which are beyond the Companys control) that could cause the Companys actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risks that we will be required to repay all of our indebtedness to our secured lenders by March 31, 2016; if we are unable to satisfy our obligations to our secured lenders and to raise additional capital to fund operations, our lenders may seize our assets and our business may fail; we continue to incur substantial operating losses and may never be profitable; our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern; there is no guaranty that the Transportation Security Administration (TSA) or any other US or foreign government and law enforcement agencies or commercial consumers will purchase any of our explosives detection products or that any new products we may develop will be accepted by the TSA or by such other governments, agencies or consumers; economic, our backlog does not necessarily represent actual future shipments since orders, including our delivery order with the TSA, may be delayed or cancelled by our customers without financial penalty. The rate of customer order cancellations can vary quarter to quarter and year to year. Customers may also reject nonconforming products; political and other risks associated with international sales and operations could adversely affect our sales; liability claims related to our products or our handling of hazardous materials could damage our reputation and have a material adverse effect on our financial results; our business is subject to intense competition; our markets are subject to rapid technology change and our ability to generate revenue and profit will depend on our ability to develop and introduce new products; we may not be able to retain our management and key employees or identify, hire and retain additional personnel as needed; we may not be able to enforce our patent and other intellectual property rights or operate without infringing on the proprietary rights of others; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. In light of these risks and uncertainties, readers are cautioned that actual results may differ significantly from those described or anticipated in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.
Contact: Implant Sciences Corporation Company Contact: Robert Liscouski 978-752-1700 x 116
This morning, I participated on a panel on the challenges of implementing Reg AB II, which touched on a new rule that will affect all issuers of publicly traded securities, including RMBS issuers, when that market returns.
That rule is the new Asset Representations Reviewer provision. After November 23rd, all issuers of publicly traded securities must include and name an ARR in their shelf offering documents.
The Securities and Exchange Commission requires the inclusion of an ARR to give investors and trustees more insight into the performance of loans in these securities, particularly with respect to adherence with the representations and warranties made about them.
The role of the ARR is, to some extent, rather broadly prescribed with some aspects which can be shaped by the issuer.
At the most basic level, the ARR is charged with reviewing the representations and warranties of all loans that are 60+ days delinquent, as of a triggered cut-off date. The ARR will specifically focus on the representations and warranties that, if breached, could result in a repurchase demand, and report on observed non-compliance.
The ARR is meant to be an objective fact finder for the trustee and the investors, not an advocate. For this reason, the regulations explicitly restrict the ARR from determining whether there has been a breach of representations and warranties and from recommending a repurchase.
What the investors will receive from the ARR, upon the occurrence of a triggered review event, is a high-level report describing the number of loans that were reviewed, what tests were run, the number of loans that failed and which tests were failed. The report will not go into the reasons why the loan failed or what action should be taken that continues to be the role of the trustee.
In proposing the concept of ARR, the SEC recognized that one size does not fit all when it comes to asset reviews. Instead, the commission acknowledged that there will be differences in performance expectations from asset class to asset class and in deal structures (think: credit card master trust vs. RMBS or auto floor plan deal). To account for these differences, the SEC gave issuers a fair amount of flexibility in determining the two triggers that will prompt review.
The first is the delinquency trigger. Set by the issuer, the trigger is calibrated to the expected performance of the assets: so a super prime jumbo deal will have a different trigger than, say, a scratch-and-dent student loan transaction. Delinquency triggers may vary in design and threshold; however, issuers must describe and support the trigger used in each transaction. For example, some issuers may establish the delinquency trigger as a percentage or multiple amounts above a long-term trend of historical performance for similar collateral.
Even if delinquencies reach a trigger point, a second trigger an investor vote is required to approve the review. Here again, the SEC has allowed the issuers the leeway to determine, within reason, what is the appropriate percentage of votes needed to trigger a review.
As an expert of asset reviews, our company is helping issuers get ready for the new ARR requirements and to align deal documents and agreed-upon testing procedures with the performance characteristics and risks of their specific asset classes. Our role in helping issuers is why I was on todays panel.
Our involvement in the ARR process came about when one of the early pilot firms asked us to consult on how to define and build out the role of an ARR. Since then, we have been engaged by a number of leading issuers across a variety of asset classes, including automotive, credit cards and student loans.
Specifically, we have been working with issuers to help them with these 5 points:
Describe the role and process of the ARR in their offering documents.
Understand market views on which representations and warranties will be tested.
Define what constitutes a reasonable and applicable test for each in-scope representation and warranty, in consideration of available review information and materials.
Develop agreed upon ARR workflow processes and report templates.
Design a transaction agreement that spells out the responsibilities of all the parties to the ARR process, including the trustee, investors and servicer
Timelines to complete the implementation process vary among issuers and is driven largely by the number of ABS platforms (eg, loan, lease and floor plan may be required for certain automotive asset issuers), the availability of client staff to assist with the sourcing of review information and vetting/approval of proposed test procedures, timing required by clients for legal document review, and SEC submission review cycle timing. Typically, we recommend that issuers allot upwards of 45-60 days to work through the entire process.
The Basel Committee for Banking Supervision is overhauling Basel II, a system prescribing how much capital banks must set aside for loansand dating from 2004, after the financial crisis laid bare its shortfalls. Risk weights for company loans rise significantly in some categories under a proposal Basel presented in December.
Under Basel II, risk weights are set in a range of 20 percent to 150 percent of a loan’s face value, depending on factors including the size of the company and its credit rating. Under the new proposals, risk weights range from 60 percent to 130 percent of the value. The definition of companies small enough to benefit from the same rules as retail borrowers may also be tightened.
The revised Basel framework “has a sort of bias against bank lending,” Nowotny said. “But we do not have the capital marketsin Europe to the extent that we would need. So we have to be very careful not to have regulatory moves that would have a negative impact on the real economy.”
Banking regulators should analyze the combined effect on the real economy of the multitude of rules that are due to come into force, Nowotny said.
Ladder Capital Corp (NASDAQ:LADR) last posted its earnings results on Wednesday, August 5th. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.03. During the same period last year, the firm posted $0.38 EPS. Analysts predict that Ladder Capital Corp will post $2.03 earnings per share for the current fiscal year.
The firm also recently declared a dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be issued a dividend of $0.275 per share. The ex-dividend date is Tuesday, September 8th.
In other Ladder Capital Corp news, CFO Marc Fox sold 36,000 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $17.66, for a total transaction of $635,760.00. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mark David Alexander purchased 50,000 shares of Ladder Capital Corp stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $15.66 per share, for a total transaction of $783,000.00. The disclosure for this purchase can be found here.
Ladder Capital Corp is a holding company. The Company is a real estate investment trust (NASDAQ:LADR). It conducts its business through three business lines: commercial mortgage lending, investments in securities secured by first mortgage loans, and investments in selected net leased and other real estate assets. Its segments include loans, securities and real estate. It invests primarily in loans, securities and other interests in United States commercial real estate, with a focus on senior secured assets. The Companys Loans segment consists of conduit first mortgage loans, balance sheet first mortgage loans and other commercial real estate-related loans. Its Securities segment consists of commercial mortgage-backed securities (CMBS) Investments and United States Agency Securities Investments. Its Real Estate segment consists of commercial real estate properties and residential real estate.
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BRISTOL, Va. — Alpha Natural Resources, Inc. announced today that, based on a hearing held Tuesday, it anticipates a final order being entered by the US Bankruptcy Court for the Eastern District of Virginia authorizing Alpha to utilize the Debtor-in-Possession financing package the Company secured in connection with its Chapter 11 filing in early August.
Finalizing this package with the support of both our secured lenders and the unsecured creditors committee represents a significant milestone in our restructuring, said Alphas Chief Financial and Strategy Officer, Phillip Cavatoni. We believe that, in concert with existing liquidity, this package provides the financial flexibility needed to navigate the Chapter 11 process.
ClearStreams medical devices are used to clear blocks in the coronary and peripheral arteries and its products are used by cardiologists, radiologists, and vascular surgeons in angioplasty procedures.
According to the directors report section of the accounts, the group is committed to a programme of Ramp;D to enhance its market position.
The businesss Ramp;D spend last year decreased from euro;5.29m to euro;3.1m. The firms cash during the year decreased from euro;1.5m to euro;851,763. The profit last year takes account of non-cash depreciation costs of euro;1m.
A note attached to the accounts states that the company is going through a phase of expansion and growth, has been profitable for the past financial year and is expected to remain profitable for the foreseeable future.
The note on the companys going concern status states that C R Bard will not seek repayment of inter company loans and balances within the foreseeable future.
Staff costs increased from euro;8.6m to euro;11.5m.
Glencore Plc outlined a $10 billion debt-reduction plan less than three weeks after the commodity trader and miner said it was confident it could continue to pay a dividend to shareholders and preserve its credit rating.
The Swiss producer and trader of raw materials plans to sell about $2.5 billion in new shares and assets worth as much as $2 billion. The company will also suspend dividend payments as it seeks to reduce its $30 billion in debt. The stock rose as much as 13 percent, a record intraday gain, in London trading after last week falling the most since going public in 2011.
The debt plan represents an about-face for Glencore after Chief Financial Officer Steve Kalmin said less than three weeks ago that the company could “walk and chew gum,” meaning it could protect its credit rating and pay its dividend at the same time. The change of heart was prompted as investors expressed concerns about the balance after the company reported a 56 percent drop in first-half profit last month.