Petroleum products logistics provider Buckeye Partners (NYSE: BPL ) is out with its first-quarter earnings. It was a very solid quarter for the MLP with steady performance across its business segments. Let's take a closer look at how the company performed in three areas that I previewed as being the most important to watch.
The numbers
Buckeye beat analysts' expectations by delivering first-quarter income of $89.3 million, or $0.86 a unit, which exceeded the projection of $0.73 a unit. Revenue of $1.34 billion also beat expectations of $1.29 billion. Strong performance at Buckeye's terminal operations along with a big improvement at its energy services segment led to the�excellent�performance this quarter.
Buckeye reported distributable cash flow of $124.2 million which provided it with a coverage ratio of 1.21 times. This represented a very nice year-over-year increase to distributable cash flow which was $73.6 million last year and represented a coverage ratio just 0.78 times. Better overall business performance and the contribution from its growth projects provided a nice boost to the bottom line. The big news here is that the coverage ratio was high enough this quarter for the company to finally raise its distribution.
Top 10 Consumer Service Stocks To Buy For 2015: Arthur J. Gallagher & Co. (AJG)
Arthur J. Gallagher & Co. (Gallagher), along with its subsidiaries, provides insurance brokerage and third-party claims settlement, and administration services to entities in the United States and abroad. It operates in three segments: brokerage, risk management and corporate. The Brokerage segment primarily consists of retail and wholesale insurance brokerage operations. The Company�� risk management segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. Majority of its international brokerage operations are in Australia, Bermuda, Canada and the United Kingdom. Its international risk management operations are principally in Australia, Canada, New Zealand and the United Kingdom. The Company operates in Australia and Canada primarily as a retail commercial property and casualty broker. In December 2013, the Company announced that it has completed the acquisition of Barmore Insurance Agency, Inc. In December 2013, Arthur J. Gallagher & Co. acquired McIntyre Risk Management, LLC. In December 2013, the Company acquired Cleaveland Insurance Group and Jenkins and Associates. Effective December 26, 2013, Arthur J Gallagher & Co acquired Rock Island-based Cleaveland Insurance Group. In February 2014, Arthur J. Gallagher & Co acquired Benefit Development Group of Selma, Alabama. In February 2014, Arthur J. Gallagher & Co announced the acquisition of Kent, Kent & Tingle in Shreveport, Louisiana.
Brokerage Segment
The Company�� retail brokerage operations negotiate and place property/casualty, employer-provided health and welfare insurance and retirement solutions principally for middle-market commercial, industrial, public entity, religious and not-for-profit entities. Many of the Company�� retail brokerage customers choose to place their insurance with insurance ! underwriters, while others choose to use alternative vehicles, such as self-insurance pools, risk retention groups or captive insurance companies. Its wholesale brokerage operations assist its brokers and other unaffiliated brokers and agents in the placement of specialized, and hard-to-place insurance programs.
The Company�� primary sources of compensation for its retail brokerage services are commissions paid by insurance carriers. It operates its brokerage operations through a network of more than 300 sales and service offices located throughout the United States and in 16 other countries. In addition, the Company offers client-service capabilities in more than 110 countries worldwide through a network of correspondent brokers and consultants. The Company�� retail brokerage operations place all lines of commercial property/casualty and health and welfare insurance coverage. Its retail brokerage operations are organized in more than 190 geographical centers located in the United States, Australia, Canada and the United Kingdom and operate within certain key niche/practice groups, which account for approximately 67% of its retail brokerage revenues.
During the year ended December 31, 2011, the Company�� wholesale insurance brokerage operations accounted for 22% of its brokerage segment revenues. Its wholesale brokers assist its retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance. These brokers operate through over 65 geographical centers located across the United States, Bermuda and through its approved Lloyd�� of London brokerage operation. In certain cases, it acts as a brokerage wholesaler, and in other cases, it acts as a managing general agent or managing general underwriter distributing specialized insurance coverages for insurance carriers. Over 75% of the Company�� wholesale brokerage revenues come from non-affiliated brokerage customers.
Risk Management Segment
The Company�� ! risk mana! gement segment provides contract claim settlement and administration services for enterprises that choose to self-insure some or all of their property/casualty coverages and for insurance companies that choose to outsource some or all of their property/casualty claims departments. During 2011, approximately 67% of its risk management segment�� revenues were from workers compensation related claims, 26% were from general and commercial auto liability related claims and 7% were from property related claims. In addition, it generate revenues from integrated disability management (employee absence management) programs, information services, risk control consulting (loss control) services and appraisal services, either individually or in combination with arising claims. The Company manages its third-party claims adjusting operations through a network of approximately 110 offices located throughout the United States, Australia, Canada, New Zealand and the United Kingdom.
The Company competes with Aon Corporation, Marsh & McLennan Companies, Inc., Willis Group Holdings, Ltd., Wells Fargo Insurance Services, Inc., Brown & Brown Inc., Hub International Ltd., Lockton Companies, Inc., USI Holdings Corporation, Aon Hewitt, Towers Watson & Co., Crump Group, Inc., CRC Insurance Services, Inc., RT Specialty, AmWINS Group, Inc., Swett & Crawford Group, Inc., Sedgwick Claims Management Services, Inc., Crawford & Company, ACE Limited, AIG Insurance and Zurich Insurance.
Advisors' Opinion:- [By Ben Levisohn]
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Williams Companies (WMB) - [By Marc Bastow]
Insurance brokerage and third-party claims settlement claims company Arthur J. Gallagher (AJG) raised its quarterly dividend 3% to 36 cents per share, payable on Mar. 20 to shareholders of record as of Mar. 4.
AJG Dividend Yield: 3.00% - [By Rich Duprey]
Expanding its presence in the United Kingdom, insurance provider Arthur J. Gallagher (NYSE: AJG ) will acquire the U.K.-based Property & Commercial Limited from�Barbon Insurance Group, the country's�largest provider of tenant references, the largest provider of rent guarantee, and one of the largest brokers to the social housing sector.
5 Best Integrated Utility Stocks To Invest In Right Now: Graham Holdings Co (GHC)
Graham Holdings Company, formerly The Washington Post Company, incorporated on July 21, 2003, is a diversified education and media company whose principal operations include educational services, television broadcasting, cable television systems, and online, print and local TV news. The Company owns Kaplan, a provider of educational services to individuals, schools and businesses, serving over one million students annually with operations in more than 30 countries. Its programs include higher education, test preparation, language instruction and professional training. Its Post-Newsweek Stations, Inc owns six television stations which include WDIV-Detroit (NBC), KPRC-Houston (NBC),WPLG-Miami (ABC), WKMG-Orlando (CBS), KSAT-San Antonio (ABC) and WJXT-Jacksonville (independent). The stations also broadcast digital channels focusing on classic television and lifestyle programming, in addition to operating websites, mobile sites and mobile apps delivering breaking news, weather and community news. Its Cable ONE, headquartered in Phoenix, AZ, serves small-city subscribers in 19 midwestern, western and southern states. Cable ONE provides digital video, Internet and phone service to homes and businesses. The Company�� Slate Group is a daily online magazine that offers fresh angles on stories in the news and entertainment coverage, all with its signature wit and irreverence, publishing provocative commentary on topics such as politics, culture, business and technology. Slate V is a daily online video magazine offering original video about politics, culture, and business, technology.
The Company divested its interest in Avenue100 Media Solutions Inc., a digital marketing company headquartered in Woburn, Massachusetts, in 2012. The Company sold its interest in the Bowater Mersey Paper Company Limited to the Province of Nova Scotia in 2012. In March 2013, the Company announced it has completed the sale of The Herald, a daily and Sunday newspaper and its other print and online products to Sound Publ! ishing, Inc.
Education
Kaplan, Inc., a subsidiary of the Company, provides a range of education and related services worldwide for students and professionals. Kaplan conducts its operations through three segments: Kaplan Higher Education, Kaplan Test Preparation and Kaplan International. Kaplan Higher Education (KHE) provides a wide array of certificate, diploma and degree programs on campus and online designed to meet the needs of students seeking to advance their education and career goals. During the year ended December 31, 2012, Kaplan�� United States-based KHE division businesses include Kaplan University and KHE Campuses.
Kaplan University specializes in online education, is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools and holds other programmatic accreditations. Kaplan University�� programs are offered online, while some are offered in a traditional classroom format at 12 campuses in Iowa, Maine, Maryland and Nebraska, and four Kaplan University Learning Centers in four additional states. Kaplan University also includes Concord Law School, a fully online law school. During 2012, Kaplan University had approximately 38,800 students enrolled in online programs and approximately 5,600 students enrolled in its classroom-based programs.
Also residing within Kaplan University is the School of Professional and Continuing Education (PACE). PACE offers a range of education solutions to assist professionals in advancing their careers by obtaining professional licenses, designations and certifications. This includes solutions for insurance, securities, real estate, mortgage and appraisal licensing exams and for advanced designations, such as CFA and CPA exams. PACE serves more than 2,900 business-to-business clients, including more than 70 Fortune 500 companies. In 2012, approximately 510,000 students used PACE's exam preparation offerings. As of December 31, 2012, the KHE Campuses business consis! ts of 59 ! schools in 17 states, which provides classroom-based instruction to approximately 21,100 students.
Kaplan International operates businesses in Europe and the Asia Pacific region. In Europe, Kaplan operates in the businesses, which are all based in the United Kingdom and Ireland: Kaplan UK, Kaplan International Colleges (KIC) and a set of higher education institutions. The Kaplan United Kingdom business in Europe is a provider of training, test preparation services and degrees for accounting and financial services professionals, including those studying for ACCA, CIMA and ICAEW qualifications. In addition, Kaplan United Kingdom provides legal and professional training, including the operation of a United Kingdom law school in collaboration with Nottingham Trent University�� Nottingham Law School. In 2012, Kaplan United Kingdom provided courses to approximately 66,000 students, of whom 49,000 were dedicated to accounting and financial services coursework.
The KIC business consists of university pathways business and an English-language training business. The university pathways business offers academic preparation programs especially designed for international students who wish to study in English-speaking countries. KIC operates university pathways programs in collaboration with nine U.K. universities. As of December 31, 2012, KIC�� university pathways business was serving approximately 2,700 students. The English-language business (previously operated as Kaplan Aspect) provides English-language training, academic preparation programs and test preparation for English proficiency exams, principally for students wishing to study and travel in English-speaking countries. KIC operates a total of 41 English-language schools, with 19 located in the United Kingdom, Ireland, Australia, New Zealand and Canada, and 22 located in the United States, where they operate under the name Kaplan International Centers. During 2012, the English-language business served approximately 65,000 stud! ents.
!Kaplan also operates three higher education institutions in Europe, located in the United Kingdom and Ireland. These institutions are Dublin Business School, Holborn College and Kaplan Open Learning. As of December 31, 2012, these institutions enrolled an aggregate of approximately 6,500 students. In the Asia Pacific region, Kaplan operates businesses in Singapore, Australia, Hong Kong and China. In Singapore, Kaplan operates three business units, Higher Education, Financial and Professional, which serve more than 16,700 students from various countries throughout Asia.
Kaplan Singapore�� Higher Education business provides students with the opportunity to earn bachelor�� and postgraduate degrees in various fields on either a part-time or full-time basis. Kaplan Singapore�� students receive degrees from affiliated educational institutions in Australia, the U.K. and the U.S. In addition, this division offers pre-university and diploma programs. Kaplan Singapore�� Financial business provides preparatory courses for professional qualifications in accountancy and finance, such as the Association of Chartered Certified Accountants (ACCA) and the Chartered Financial Analyst (CFA).
In Australia, Kaplan delivers a broad range of financial services education and professional development courses. In 2012, this business provided courses to approximately 17,400 students through classroom programs and to more than 44,800 students through distance-learning programs. In 2012, Kaplan Australia underwent operational restructuring and offers its programs through three business units: English Language and Pathways; Vocational Education; and Higher Education.
The Vocational Education business of Kaplan Australia includes Kaplan Professional Education (KPE), Carrick Education Group and Franklyn Scholar. KPE offers financial services education programs and continuing professional development courses primarily to a business-to-business market, including banks and numerous! industry! sectors.. Approximately 43,000 students are taught through KPE each year. Carrick has traditionally offered English-language programs, vocational training and higher education courses in Australia. Kaplan is evaluating various strategic alternatives with respect to the Carrick business lines. As of December 31, 2012, Carrick was providing services to approximately 1,300 students. Franklyn Scholar offers a wide range of custom-developed programs to business clients. More than 16,000 students are taught through Franklyn Scholar each year.
The higher education business of Kaplan Australia comprises Kaplan Online Higher Education (KOHE) and Kaplan Business School (KBS), which offers diploma, bachelor�� and master�� degree programs. As of December 31, 2012, KBS has opened a new school in Brisbane and operates in four states in Australia teaching approximately 700 students each year. KOHE teaches approximately 1,800 students annually in postgraduate courses primarily in the financial services sector.
In Hong Kong, Kaplan offers a comprehensive array of programs, ranging from language education and standardized test preparation to corporate and financial training and higher education degree courses. During 2012, Kaplan�� Hong Kong business provided courses to more than 15,700 students.
In China, Kaplan provides foundation programs to Chinese students through partnerships with prestigious Chinese universities and high schools. Kaplan China offers foundation programs at 11 campuses and had more than 1,100 students enrolled at the end of 2012. Kaplan China also cooperates with several Chinese universities to provide ACCA training programs to the students. Cable ONE offers broadband Internet access service on virtually all of its cable systems and is the sole Internet service provider on those systems.
Kaplan International also includes the Kaplan Global Solutions business unit, which continues to develop partnerships with colleges, universities and non-p! rofit corp! orations and foundations. Kaplan Global Solutions, through its Colloquy business, enables its university partners to develop online educational programs by providing an array of research, marketing and design services. Through its Global Pathways programs, Kaplan Global Solutions enables its partner institutions in the Americas to enhance their brand globally and increase international student enrollments by designing and marketing custom programs aimed at student success.
Cable Television Operations
Through its subsidiary Cable One, Inc. (Cable ONE), the Company owns and operates cable television systems that provide video, Internet and voice service to subscribers in 19 midwestern, western and southern states. At the end of 2012, Cable ONE provided cable service to approximately 593,600 video subscribers, representing about 41% of the 1,439,740 homes passed by the systems, had approximately 459,200 subscriptions to high-speed data (HSD) service and 184,500 subscriptions to VoIP (digital voice) service. The video services offered by Cable ONE include certain premium, cable network and local over-the-air channels in high-definition television (HDTV) format. Cable ONE offers voice over Internet Protocol service, which permits users to make voice calls over broadband communications networks, including the Internet.
Other Activities
WaPo Labs is a digital team focusing on experimenting with emerging technologies. In 2012, WaPo Labs launched several projects in partnership with the Company�� media properties: Personal Post, a feature on washingtonpost.com that delivers personalized article recommendations based on a user�� interests and past reading behavior; The Fold, a video news program available on washingtonpost.com, Google TV and Android tablets, and The Root 100, which comprises 100 Android apps aggregating content about the Root 100 honorees, chosen for their impact and influence within the African-American community. In addition to working clo! sely with! the Company�� news websites, WaPo Labs oversees Washington Post Social Reader (Social Reader) and Trove. Social Reader is a Facebook-connected Website that delivers news articles based on a user�� interests and what their friends are reading. Social Reader aggregates content from the Post, Slate, Foreign Policy, Express, the Root and more than 90 other content partners to create a social stream of articles.
Social Code LLC (Social Code) is a marketing solutions company helping Fortune 500 brands maximize their marketing efforts on social media platforms. Celtic Healthcare, Inc. (Celtic) is a Medicare-certified provider of home health and hospice services headquartered in Mars, PA. Through its subsidiaries, Celtic is licensed to provide home health and hospice services throughout Pennsylvania and Maryland. These services include skilled nursing, physical therapy, occupational therapy, speech therapy, social work, nutrition, chaplain and aid services. In addition, Celtic provides virtual care services to patients throughout its service territories. Celtic derives 74% of its revenue from Medicare, with the remaining sources of revenue being Medicaid, commercial insurance and private payors.
The Company competes with Edmunds.com, AutoTrader.com, Realtor.com, Zillow.com, Yelp, OpenTable, Google, Monster.com, CareerBuilder.com and Yahoo!.
Advisors' Opinion:- [By Paul Ausick]
Kaplan booked more than $2 billion in revenues in 2013, down slightly from 2012. Kaplan is owned by Graham Holdings Co. (NYSE: GHC), which was spun out of the Washington Post Co. when Jeff Bezos, CEO of Amazon.com Inc. (NASDAQ: AMZN) bought the newspaper last year
- [By Emily Jane Fox]
In the past year, millennials turned up the heat against low wages at Victoria's Secret, Wal-Mart (WMT, Fortune 500), McDonald's (MCD, Fortune 500), Wendy's (WEN), KFC (YUM, Fortune 500) and others like Kaplan (GHC), which runs tutoring centers.
5 Best Integrated Utility Stocks To Invest In Right Now: Kelly Services Inc.(KELYA)
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company offers trained employees who work in word processing, data entry, and as administrative support staff; staff for contact centers, technical support hotlines, and telemarketing units; substitute teachers; support staff for seminars, sales, and trade shows; technicians for the technology, aerospace, and pharmaceutical industries; maintenance workers, material handlers, and assemblers; and temporary and full-time placement services, as well as direct-hire placement and vendor on-site management services. It also provides scientific and clinical research workforce solutions; chefs, porters, and hospitality representatives; manual workers to semi-skilled professionals in trade, non-trade, and operational positions; engineering professionals for various disciplines, such as aeronautical, chemical, civil/structural, electrical/instrumentation, environmen tal, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications; and employees for creative services positions. In addition, the company offers professionals for corporate finance departments, accounting firms, and financial institutions; talent management solutions; healthcare specialists and professionals for hospitals, ambulatory care centers, HMOs, and other health insurance companies; information technology specialists; legal professionals, such as attorneys, paralegals, contract administrators, compliance specialists, and legal administrators; and mid- to senior-level search and selection services, as well as consulting services. Further, it provides recruitment process and contingent workforce outsourcing, independent contractor solutions, payroll and business process outsourcing, career transition and organizational effectiveness, and executive search services. The company was founded in 1946 and is headquartered in Troy, Michigan.
Advisors' Opinion:- [By Dan Burrows]
Staffing stocks like Manpower Group (MAN), Robert Half International (RHI) and Kelly Services (KELYA) have put up market-beating to market-crushing gains over the last year, boosted by accelerating strength in the job market.
- [By James E. Brumley]
The fact that temporary staffing is creating the bulk of the job growth since we dug our way out of the 2008 recession bodes well for the likes of staffing firms like Kelly Services, Inc. (NASDAQ:KELYA) and Robert Half International Inc. (NYSE:RHI). Investors seeking strategic opportunities can do better than concentrating on proven-but-broad growth arenas, though. There's another trend within the employment arena that actually favors small newcomer (relatively) Staffing 360 Solutions Inc. (OTCBB:STAF)... the huge and fast-growing need for more and better information technology workers. IT positions are opening up faster than any other industry is creating jobs, and it doesn't look like the trend is going to change anytime soon.
- [By James E. Brumley]
Look out Kelly Services, Inc. (NASDAQ:KELYA), and step aside ManpowerGroup Inc. (NYSE:MAN). A young company called Staffing 360 Solutions Inc. (OTCBB:STAF) is coming up fast in your rear-view mirror, and is poised to dominate the fastest growing arena of the temporary staffing world.
- [By Rich Duprey]
Investors have taken notice of the trend with shares of ManpowerGroup (NYSE: MAN ) rising 59% over the past year, Kelly Services (NASDAQ: KELYA ) up almost 46%, and Robert Half International (NYSE: RHI ) some 15% higher.
5 Best Integrated Utility Stocks To Invest In Right Now: Chesapeake Lodging Trust (CHSP)
Chesapeake Lodging Trust (the Trust) is a self-advised real estate investment trust (REIT). The Trust is focused on investments primarily in upper-upscale hotels in business and convention markets and, on a selective basis, select-service and extended-stay hotels in urban settings or locations in the United States of America. All of the Trust�� assets are held by, and all of its operations are conducted through, Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). The Operating Partnership leases its hotels to CHSP TRS LLC (CHSP TRS), which is a wholly owned subsidiary of the Operating Partnership. CHSP TRS engages hotel management companies to operate the hotels pursuant to management agreements. CHSP TRS is a taxable REIT subsidiary (TRS). As of December 31, 2011, the Trust owned 12 hotels with an aggregate of 3,516 rooms in six states and the District of Columbia. In August 2012, the Company acquired the 520-room W Chicago-Lakeshore located in Chicago, Illinois from Starwood Hotels & Resorts Worldwide Inc. (Starwood). The Trust entered into a long-term management agreement with Starwood to continue operating the hotel under the W flag. In September 2012, it acquired the 429-room Hyatt Regency Mission Bay Spa and Marina, located in San Diego, California. In October 2012, the Company acquired 222-room The Hotel Minneapolis, a Marriott Autograph Collection hotel, located in Minneapolis. In March 2013, the Company acquired 185-room Hyatt Place New York Midtown South, located in New York. In April 2013, Starwood Hotels & Resorts Worldwide Inc completed the sale of W New Orleans - French Quarter to Chesapeake Lodging Trust. In April 2013, Chesapeake Lodging Trust acquires W New Orleans From Starwood Hotels & Resorts Worldwide Inc. In June 2013, Chesapeake Lodging Trust purchased the Hyatt Fisherman's Wharf from Hyatt Hotels Corp. Effective June 27, 2013, Chesapeake Lodging Trust acquired Hyatt Santa Barbara.
On December 22, 2011, the Trust acquired Holiday Inn ! New York City Midtown, which had 122 rooms. On October 3, 2011, the Trust acquired Denver Marriott City Center hotel, which had 613 rooms. On July 8, 2011, it acquired Hotel Adagio, which consisted of 171 rooms. On June 30, 2011, the Trust acquired Courtyard Washington Capitol Hill/Navy Yard hotel, which had 204 rooms. On June 17, 2011, it acquired Hotel Indigo San Diego Gaslamp Quarter, which consisted of 210 rooms. On May 10, 2011, the Trust acquired W Chicago - City Center hotel, which had 368 rooms. On May 2, 2011, it acquired Homewood Suites Seattle Convention Center hotel, which had 195 rooms.
The Company has management agreements with third parties to manage its hotels. The Trust's hotel managers provide managerial and other hotel employees, oversee operations and maintenance, prepare reports, budgets and projections and provide other administrative and accounting support services. Its management agreements provide for base management fees ranging from 1% to 4% of gross hotel revenues and incentive compensation if hotel operating income. Of its 12 hotels, seven operates pursuant to franchise agreements from international hotel companies. The Trust�� lease agreements are inter-company agreements between its property-owning subsidiaries and its TRS lessees.
Advisors' Opinion:- [By Rich Duprey]
Real estate investment trust�Chesapeake Lodging Trust� (NYSE: CHSP ) �announced yesterday its second-quarter dividend of $0.24 per share, the same rate it paid last quarter after raising the payout 9% from $0.22 per share.
- [By Ben Levisohn]
Our first stop is Cheaspeake Lodging Trust (CHSP), which made the cut after two directors at the hotel REIT snapped up shares. Thomas Eckert bought 16,000 shares for $354,000 and John Hill bought 4,000 for $90,400.
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