Enviva Q2, Update on Cost and Productivity Improvement Initiatives

 Enviva Inc. (NYSE: EVA) ("Enviva," the "Company," "we," "us," or "our") today released financial and operating results for second-quarter 2023 and provided a progress update on cost-reduction and productivity improvement initiatives across its operations.

Financial Update:

• Reported a net loss of $55.8 million for second-quarter 2023, as compared to a net loss of $27.3 million for second-quarter 2022; net loss for second-quarter 2023 was in line with the previously disclosed guidance range

• Reported adjusted EBITDA for second-quarter 2023 of $26.0 million as compared to $39.5 million for second-quarter 2022; adjusted EBITDA for second-quarter 2023 was in line with the previously disclosed guidance range

• Reaffirmed net loss guidance range for full-year 2023 of $186 million to $136 million

• Reaffirmed adjusted EBITDA guidance range for full-year 2023 of $200 million to $250 million

• Lowered full-year 2023 total capital expenditures guidance range to $335 million to $365 million, from $365 million to $415 million, representing a decrease of 10% at the midpoint of the ranges; total capital expenditure reductions were primarily driven by updated timing of cash flow spending curves related to the Epes, Alabama ("Epes") and Bond, Mississippi ("Bond") projects, partially offset by higher expected spending on several smaller growth projects; the lower spending does not impact the planned in-service dates of Epes (mid-2024) and Bond (mid-2025)

During second-quarter 2023, Enviva significantly heightened its focus on initiatives to improve productivity and costs across its current platform, in conjunction with progressing contract negotiations, including repricing certain legacy contracts, in a constructive pricing environment for both near-term deliveries and long-term, take-or-pay off take contracts.

Enviva will host a webcast and conference call on Thursday, August 3, 2023 at 10:00 a.m. Eastern Time to discuss second-quarter results and the Company’s outlook. The conference call number for North American participation is +1 (877) 883-0383, and for international callers is +1 (412) 902-6506. The passcode is 8363501. Alternatively, the call can be accessed online through a webcast link provided on Enviva’s Events & Presentations website page, located at ir.envivabiomass.com.

https://finance.yahoo.com/news/enviva-reports-2q-2023-results-222500085.html

Bridge to Life Divests Certain Assets to TransMedics

 Bridge to Life Ltd. (BTL), a leading global supplier of organ preservation and perfusion technologies, announced today its divestiture of certain assets to TransMedics, Inc., a wholly owned subsidiary of TransMedics Group, Inc. (NASDAQ: TMDX), including its EVOSS heart and lung and LifeCradle heart perfusion assets. BTL will use the proceeds from the divestiture of these assets to focus on its core preservation solutions business and its pending Food and Drug Administration (FDA) submission for the VitaSmart™ Liver Machine Perfusion System.

https://finance.yahoo.com/news/bridge-life-divests-certain-assets-212800812.html

Merck KGaA Cuts 2023 Outlook on Inventory, Semiconductor Woes

 Merck KGaA on Thursday cut its outlook for the full year due to high inventory levels of customers in its Life Science business and delayed recovery in the semiconductor materials market, although it confirmed its mid-term objectives.

The Germany-based health-care and technology company also posted declining earnings and sales for the second quarter, though these came in slightly above expectations.

Merck said it now expects 2023 sales to be between 20.5 billion euros ($22.42 billion) and EUR21.9 billion, down from its previous guidance of EUR21.2 billion to EUR22.7 billion. Ebitda pre, an important earnings metric for the company, is expected to decline up to 9% and be in a range of EUR5.8 billion to EUR6.4 billion, having previously been seen between EUR6.1 billion and EUR6.7 billion.

In the second quarter, profit after tax declined to EUR706 million from EUR870 million on sales which fell to EUR5.30 billion from EUR5.57 billion, the company said. Ebitda pre declined to EUR1.55 billion from EUR1.78 billion. Analysts polled by FactSet had expected slightly lower figures.

The company cited foreign-exchange headwinds as contributing to the decline in sales in the quarter, and also as one further reason for the guidance cut.

https://www.marketscreener.com/quote/stock/MERCK-KGAA-436395/news/Merck-KGaA-Cuts-2023-Outlook-on-Inventory-Semiconductor-Woes-44502500/

Biden Now Wants To Arm Taiwan Using Ukraine Budget

 In a bombshell new report, Financial Times has revealed that President Biden plans to formally ask Congress to use funds to arm Taiwan utilizing the supplemental budge for Ukraine. 

The report states that the White House’s Office of Management and Budget "will include funding for Taiwan in the supplemental request as part of an effort to accelerate the provision of weapons, according to two people familiar with the plan."

If approved by Congress, this would be a major milestone in Washington's bolstering Taiwan's defense, given the self-ruled island would for the first time ever receive American arms through what's called "foreign military financing."

It would also mark a first time use of the "presidential drawdown authority" for Taiwan, meaning the Pentagon would tap its own stockpiles which has long been used to supply Ukraine.

The FT report has come on the heels of last Friday's newly announced White House aid package of up to $345 million for Taiwan. 

China's Taiwan Affairs Office issued another blistering condemnation of US military support to Taiwan, underscoring that Beijing's efforts to unify the island to the mainland will continue undeterred. 

"No matter how much of the ordinary people’s taxpayer money the ... Taiwanese separatist forces spend, no matter how many U.S. weapons, it will not shake our resolve to solve the Taiwan problem," Taiwan Affairs Office said, adding "...Or shake our firm will to realize the reunification of our motherland."

Meanwhile, Nikkei Asia has observed in some fresh analysis that the Chinese PLA military has steadily increased and even sped up preparations to blockade Taiwan ever since the Pelosi visit. This has continued unabated, FT observes, writing:

China has greatly increased its conducting of military drills simulating the containment of Taiwan since then-U.S. House Speaker Nancy Pelosi visited the island a year ago. Nikkei analyzed the possibility of China's invasion of Taiwan, using drone-taken images and views by experts.

Even the range of activities by the Chinese military around Taiwan has changed. Before Pelosi's visit on Aug. 2 of last year, Chinese military planes and ships rarely moved around to the east of Taiwan. Instead, they primarily engaged in activities southwest of the island. Over the past year, they have become active in the Western Pacific, or the Philippine Sea, having Taiwan to the west.

Both of the large Chinese aircraft carriers--the Shandong, which was its first domestically developed aircraft carrier--and the Liaoning, have been spotted in waters near Taiwan, and are becoming more active in conducting war simulations, alarming Taipei further.

Looking at GDP and economic growth, one might ask the obvious: why does Taiwan need our constant taxpayer dollars on a continual basis (akin to Ukraine)? 

https://www.zerohedge.com/geopolitical/biden-now-wants-arm-taiwan-using-ukraine-budget

Sound Of Freedom: FBI Finds 200 Sex Trafficking Victims, Including Children

 While the pedo-loving propagandists at the once-great Rolling Stone and other major media outlets attacked the anti-child-trafficking film "Sound of Freedom," calling it a "QAnon-tinged thriller about child-trafficking" which is "designed to appeal to the conscience of a conspiracy-addled boomer" -- the FBI announced Tuesday it rescued more than 200 sex trafficking victims during a two-week nationwide operation in July. 

Known as "Operation Cross Country," nearly every FBI field office was involved in the annual two-week operation that led to the arrest of 126 suspects of child sexual exploitation and human trafficking offenses, and 68 suspects of trafficking were identified or arrested. 

The bureau and its local partners found 59 minor victims of child sex trafficking and sexual exploitation and another 59 children who had been reported missing. 

"Human traffickers prey on the most vulnerable members of our society, and their crimes scar victims — many of them children — for life. The FBI's commitment to combatting this threat will never waver, and we will continue to send our message that these atrocities will not be tolerated," FBI Director Christopher Wray said in a statement.

"Sex traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm," Attorney General Merrick B. Garland said

Garland continued, "This operation, which located 59 actively missing children, builds on the tremendous work the FBI has undertaken over many years to rescue minor victims and arrest those responsible for these unspeakable crimes. We will continue to work with our law enforcement partners across the country to prevent human trafficking; increase detection, investigation and prosecution of human trafficking crimes; and expand support and services to protect and empower survivors."

The FBI worked with a child protection organization, the National Center for Missing and Exploited Children, and concentrated efforts on "identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex and human trafficking."

While the operation was underway, Jim Caviezel's anti-child-trafficking Sound of Freedom film was released nationwide on theater screens and became a summer blockbuster. However, a chorus of mainstream hit pieces denounced it as a "QAnon" conspiracy flick.

Even Bloomberg.

We should be grateful for the people who made the film and put a spotlight on the unspoken truth of child sex trafficking and sexual exploitation. We should be asking why the mainstream corporate press made a concerted effort to play down the issue. 

https://www.zerohedge.com/markets/sound-freedom-fbi-finds-200-sex-trafficking-victims-including-children

Energy drink Prime yanked by NYC grocery chain during FDA probe

 John Catsimatidis isn’t waiting for an FDA review of a super-caffeinated energy drink — founded by YouTube star Logan Paul — to pull it from his stores, On The Money has learned. 

The CEO of Big Apple grocery store chains Gristedes and D’Agostino said he decided to stop stocking Prime Energy after reviewing information about the drink’s health impacts.

The drink has 200 milligrams of caffeine — more than double the caffeine in a Red Bull and six times the amount in a can of Coca-Cola.

“We listen to our customers and we have fears about the concerns for the health of kids as it relates to Prime and the beverage’s caffeine levels and marketing, so will not be stocking it at this time,” Catsimatidis told On The Money on Wednesday. “We could always reconsider, but we would put our own warning labels on the shelf.”

The controversial beverage — which Paul launched with fellow YouTube personality KSI last year — has drawn intense scrutiny from Sen. Chuck Schumer.

Last month, the Senate Majority Leader raised concerns about the drink’s dangers in a letter sent to FDA Commissioner Dr. Robert Califf. 

Social media star Logan Paul has helped his Prime energy drink go viral.

@LoganPaul/Instagram

“Prime is born from the wheels of social media and the enigmatic world of influencers,” the New York Democrat said. “Kids see it on their phone as they scroll, and then they actually have a need for it. And the problem here is that the product has so much caffeine in it that it puts Red Bull to shame.”

Schumer added the drink should be “giving parents and doctors the jitters.”

The FDA launched its probe into the beverage after receiving Schumer’s letter.

The company has previously said the drink is not intended for anyone under the age of 18.

It has “complied with all FDA guidelines before hitting the market,” a company representative told CNBC.

https://nypost.com/2023/08/02/logan-pauls-energy-drink-prime-yanked-by-nyc-grocery-chain-during-fda-probe/

Ackman Says He’s Short 30-Year Treasuries as Supply Ramps Up

 Bill Ackman is making sizable bets on declines for 30-year US Treasuries as a hedge on the impact of higher long-term rates on stocks.

Ackman also sees the short as a “high probability” standalone play, the Pershing Square Capital Management founder said in a post on X, the platform formerly known as Twitter.

An increasing supply of Treasuries will be needed to fund the current budget deficit, future spending plans and higher refinancing rates, Ackman said. He is making the investment via options, rather than shorting bonds outright.

Long-term debt looks “overbought” from a supply and demand perspective and it’s hard to see how the market will cope with the increased issuance “without materially higher rates,” he added.

“There are few macro investments that still offer reasonably probable asymmetric payoffs and this is one of them,” Ackman said. “The best hedges are the ones you would invest in anyway even if you didn’t need the hedge. This fits that bill, and also I think we need the hedge.”

The US curve 10-years and beyond has been weighed by refunding debt sales of $103 billion next week, up from $96 billion in May, in the first boost to the so-called quarterly refunding since 2021. This includes $23 billion of 30-year bonds scheduled for Aug. 10.

The 30-year yield could reach 5.5% if long-term inflation holds at 3% instead of 2%, according to Ackman. The yield was up 1 basis point to 4.19% in Asia trading.

“There are many times in history where the bond market reprices the long end of the curve in a matter of weeks, and this seems like one of those times,” he said.

https://finance.yahoo.com/news/ackman-says-short-30-treasuries-012705003.html