Read Larry Connors' blog – Short Term Trading Strategies
--Operating margins in Water Group increase year over year; Technical Products adjusted operating margins over 14 percent
--Introduces fourth quarter adjusted EPS guidance of $0.40 to $0.44 and updates full year adjusted EPS guidance of $1.40 to $1.44.
--All financial information and period-to-period references are on a continuing operations basis unless otherwise noted. Reconciliations to discontinued operations as well as GAAP and Non-GAAP reconciliations are in the attached financial tables.
Pentair, Inc. (NYSE:PNR) today announced third quarter 2009 net earnings per diluted share from continuing operations (EPS) of $0.38. This represents a decrease of 12 percent as compared to the $0.43 of EPS in the third quarter last year. Current period results included a negative $0.04 per share impact from restructuring charges. Adjusting for these items, third quarter 2009 EPS was $0.42, compared to adjusted third quarter 2008 EPS of $0.56, a decrease of 25 percent.
Total company sales decreased 23 percent to $663 million, compared with $856 million in the third quarter of 2008. The company delivered third quarter operating income of $67 million. On an adjusted basis, the company delivered operating income of $74 million versus $101 million in the year-ago quarter. The company's adjusted operating income in the current quarter excluded the impact of additional severance charges associated with the third quarter elimination of 275 positions not included in prior restructuring. Overall, adjusted operating margins for the third quarter contracted 60 basis points to 11.2 percent. The positive impact from productivity and price did not offset the significant negative impact related to lower volumes.
Total company free cash flow was positive $103 million for the quarter. Year-to-date the company has generated $202 million of free cash flow, which is $95 million more than was generated in the first three quarters of 2008. The company said it remains on track to achieve free cash flow greater than $225 million for 2009.
"We continue to benefit from our cost actions and remain committed to our full year outlook. Additionally, with our strong free cash flow generation and the investments we have maintained in product innovation and sales and marketing we believe the company remains in an excellent position to benefit as markets recover," said Randall J. Hogan, Pentair chairman and chief executive officer.
THIRD QUARTER BUSINESS HIGHLIGHTS
The Water Group delivered $462 million in sales, a 17 percent decline year-over-year. Sales were down 16 percent excluding foreign exchange.
-- Flow Technologies sales were down 14 percent versus the year-ago quarter, as growth in the company's global municipal market did not offset declines in commercial, industrial and residential markets.
-- Filtration sales were down 21 percent as sales to global residential, commercial and industrial markets continue to reflect inventory destocking and overall market softness.
-- Global Pool sales were down 16 percent as the prolonged decline in North American residential pool markets persists.
The Water Group's third quarter reported operating income totaled $53 million, up 7 percent as compared to $50 million in the same period last year. In the quarter, the Water Group had $3 million in pre-tax restructuring charges associated with severance from recently announced additional headcount reductions. Excluding these items, third quarter 2009 adjusted operating income was $56 million, down 12 percent versus third quarter 2008 adjusted operating income of $63 million. Adjusted operating margins of 12.1 percent were up 80 basis points as benefits from productivity more than offset the negative impact from volume declines, inflation, and pay-as-you-go restructuring costs.
Technical Products delivered third quarter 2009 sales of $201 million, a decrease of 32 percent versus the year-earlier period. Sales were down 31 percent excluding the impact of foreign exchange.
-- Global Electrical sales were down 29 percent as industrial customers continue to reduce capital projects and distributors aggressively reduced inventory levels.
-- Global Electronic sales were down 34 percent as each of our major vertical markets contracted.
Technical Products' third quarter reported operating income totaled $24 million, down 49 percent compared to $48 million in the same quarter last year. Adjusting for a restructuring charge, operating income was $29 million. Adjusted operating margins were 14.4 percent, down 180 basis points versus the third quarter 2008. In the quarter, the benefits from productivity did not offset the negative impact from volume declines and foreign exchange.
"Overall, our third quarter results were solid given the recessionary environment. The results of our productivity actions were reflected in our Water business adjusted margins which expanded 80 basis points year over year despite a 17 percent sales decline," said Randall J. Hogan, Pentair chairman and chief executive officer. "Additionally, our Technical Products business produced adjusted margins of over 14 percent despite sales declines of 32 percent, which were worse than anticipated and reflected declines in most major end markets."
OUTLOOK
The company introduces its fourth quarter reported 2009 EPS guidance range of $0.37 to $0.41 which would be up when compared to fourth quarter 2008 reported EPS of $0.22. Adjusting for non-recurring items in both years (see attached reconciliation table) fourth quarter adjusted EPS is expected to be $0.40 to $0.44 or essentially flat with the year ago quarter. Fourth quarter sales are expected to be down approximately 14 percent.
The company updates its full year reported 2009 EPS guidance to $1.25 to $1.29, which would be down approximately 50 percent when compared to reported full year 2008 EPS. Adjusting for non-recurring items in both years full year adjusted 2009 EPS is expected to be $1.40 to $1.44 or down approximately 35 percent year over year. The company continues to anticipate future non-recurring gains from certain tax items but the timing is uncertain so these items are not included in the current full year reported EPS guidance.
"As anticipated, the benefits of our cost actions are rapidly improving our operating margins and earnings," said Hogan. "Our fourth quarter EPS guidance demonstrates the results of our structural cost savings as we expect earnings to be flat year over year with higher operating margins despite anticipated sales declines."
"We continue to position the company for market recovery, which we are seeing in some select markets and regions, and expect our operating margins and earnings growth will demonstrate that much of what we've accomplished in 2009 is sustainable," Hogan added.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and Chief Financial Officer John L. Stauch will discuss the company's performance and fourth quarter and full year 2009 guidance on a two-way conference call with investors and a live audio webcast at 9 a.m. Eastern today. Reconciliation of non-GAAP financial measures are set forth in the attachments to this third quarter 2009 earnings release and in the third quarter 2009 earning release conference call presentation, both of which can be found at Pentair's web site (www.pentair.com). Related financial charts and certain other information to be discussed on the conference call will be available on the company's website shortly before the conference call. The web cast and presentation will be archived at the same site following the conclusion of the conference call.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Any statements made about the company's anticipated financial results are forward-looking statements subject to risks and uncertainties such as the breadth and severity of the global economic downturn; the strength of housing and related markets; the ability to implement our restructuring and other cost reduction plans successfully and the risk that expected benefits may not be fully realized or may take longer to realize than expected; foreign currency effects; retail, commercial and industrial demand; product introductions; and pricing and other competitive pressures, as well as other risk factors set forth in our SEC filings. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.
ABOUT PENTAIR, INC.
Pentair (www.pentair.com) is a diversified operating company headquartered in Minnesota. Its Water Group is a global leader in providing innovative products and systems used worldwide in the movement, treatment, storage and enjoyment of water. Pentair's Technical Products Group is a leader in the global enclosures and thermal management markets, designing and manufacturing thermal management products and standard, modified, and custom enclosures that house and protect sensitive electronics and electrical components. With 2008 revenues of $3.35 billion, Pentair employs approximately 13,100 people worldwide.
Pentair, Inc. and Subsidiaries
Condensed Consolidated
Statements of Income (Unaudited)
Three months ended Nine months ended
In thousands, except per-share data September 26 September 27 September 26 September 27
2009 2008 2009 2008
Net sales $ 662,665 $ 855,815 $ 1,990,217 $ 2,584,339
Cost of goods sold 455,698 599,862 1,417,539 1,799,282
Gross profit 206,967 255,953 572,678 785,057
% of net sales 31.2% 29.9% 28.8% 30.4%
Selling, general and administrative 125,578 154,118 361,957 437,831
% of net sales 18.9% 18.0% 18.2% 16.9%
Research and development 14,707 16,221 43,265 47,303
% of net sales 2.2% 1.9% 2.2% 1.8%
Legal settlement -- -- -- 20,435
Operating income 66,682 85,614 167,456 279,488
% of net sales 10.1% 10.0% 8.4% 10.8%
Other (income) expense:
Gain on sale of interest in subsidiaries -- -- -- (109,648)
Equity losses of unconsolidated subsidiary 135 669 691 2,433
Loss on early extinguishment of debt -- 4,611 4,804 4,611
Net interest expense 9,711 13,740 31,328 45,691
% of net sales 1.5% 1.6% 1.6% 1.8%
Income from continuing operations before income taxes and 56,836 66,594 130,633 336,401
noncontrolling interest
Provision for income taxes 18,159 21,592 41,808 99,099
Income from continuing operations 38,677 45,002 88,825 237,302
Loss from discontinued operations, net of tax -- (1,514) -- (3,652)
Loss on disposal of discontinued operations, net of tax (85) (268) (153) (7,405)
Net income before noncontrolling interest 38,592 43,220 88,672 226,245
Noncontrolling interest 1,644 2,100 2,531 2,100
Net income attributable to Pentair, Inc. $ 36,948 $ 41,120 $ 86,141 $ 224,145
Net income from continuing operations attributable to Pentair, Inc. $ 37,033 $ 42,902 $ 86,294 $ 235,202
Earnings (loss) per common share attributable to Pentair, Inc.
Basic
Continuing operations $ 0.38 $ 0.44 $ 0.89 $ 2.40
Discontinued operations - (0.02) - (0.11)
Basic earnings per common share $ 0.38 $ 0.42 $ 0.89 $ 2.29
Diluted
Continuing operations $ 0.38 $ 0.43 $ 0.88 $ 2.37
Discontinued operations - (0.02) - (0.11)
Diluted earnings per common share $ 0.38 $ 0.41 $ 0.88 $ 2.26
Weighted average common shares outstanding
Basic 97,496 97,827 97,495 98,049
Diluted 98,641 99,319 98,329 99,372
Cash dividends declared per common share $ 0.18 $ 0.17 $ 0.54 $ 0.51
Pentair, Inc. and Subsidiaries
Condensed Consolidated
Balance Sheets (Unaudited)
In thousands September 26 December 31 September 27
2009 2008 2008
Assets
Current assets
Cash and cash equivalents $ 50,214 $ 39,344 $ 93,544
Accounts and notes receivable, net 423,125 461,081 511,779
Inventories 366,416 417,287 417,525
Deferred tax assets 52,997 51,354 50,061
Prepaid expenses and other current assets 48,446 63,113 53,383
Current assets of discontinued operations -- -- 18,443
Total current assets 941,198 1,032,179 1,144,735
Property, plant and equipment, net 339,412 343,881 359,543
Other assets
Goodwill 2,127,082 2,101,851 2,128,430
Intangibles, net 506,837 515,508 534,898
Other 67,723 59,794 69,873
Non-current assets of discontinued operations -- -- 13,646
Total other assets 2,701,642 2,677,153 2,746,847
Total assets $ 3,982,252 $ 4,053,213 $ 4,251,125
Liabilities and Shareholders' Equity
Current liabilities
Short-term borrowings $ 16 $ -- $ --
Current maturities of long-term debt 98 624 3,913
Accounts payable 199,002 217,898 224,646
Employee compensation and benefits 78,225 90,210 106,939
Current pension and post-retirement benefits 8,890 8,890 8,557
Accrued product claims and warranties 33,179 41,559 42,618
Income taxes 24,302 5,451 9,454
Accrued rebates and sales incentives 27,989 28,897 35,748
Other current liabilities 95,367 104,975 100,890
Current liabilities of discontinued operations -- -- 252
Total current liabilities 467,068 498,504 533,017
Other liabilities
Long-term debt 814,857 953,468 1,035,150
Pension and other retirement compensation 264,472 270,139 164,776
Post-retirement medical and other benefits 32,019 34,723 34,218
Long-term income taxes payable 27,792 28,139 25,356
Deferred tax liabilities 153,984 146,559 183,780
Other non-current liabilities 102,924 101,612 96,941
Non-current liabilities of discontinued operations -- -- 1,665
Total liabilities 1,863,116 2,033,144 2,074,903
Shareholders' equity 2,119,136 2,020,069 2,176,222
Total liabilities and shareholders' equity $ 3,982,252 $ 4,053,213 $ 4,251,125
Days sales in accounts receivable (13 month moving average) 62 57 56
Days inventory on hand (13 month moving average) 92 79 76
Days in accounts payable (13 month moving average) 65 59 58
Pentair, Inc. and Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Nine months ended
In thousands September 26 September 27
2009 2008
Operating activities
Net income before noncontrolling interest $ 88,672 $ 226,245
Adjustments to reconcile net income to net cash provided by (used
for) operating activities
Loss from discontinued operations -- 3,652
Loss on disposal of discontinued operations 153 7,405
Equity losses of unconsolidated subsidiary 691 2,433
Depreciation 44,186 44,929
Amortization 22,054 20,220
Deferred income taxes 170 25,905
Stock compensation 13,092 15,948
Excess tax benefits from stock-based compensation (754) (1,617)
(Gain) loss on sale of assets (177) 87
Gain on sale of interest in subsidiaries -- (109,648)
Changes in assets and liabilities, net of effects of business
acquisitions and dispositions
Accounts and notes receivable 46,718 (55,449)
Inventories 56,459 (27,109)
Prepaid expenses and other current assets 16,061 (15,785)
Accounts payable (18,659) 2,230
Employee compensation and benefits (17,883) (7,303)
Accrued product claims and warranties (8,565) (6,572)
Income taxes 19,166 (6,224)
Other current liabilities (9,699) 9,040
Pension and post-retirement benefits (12,251) 592
Other assets and liabilities 747 13,143
Net cash provided by (used for) continuing operations 240,181 142,122
Net cash provided by (used for) operating activities of discontinued (1,531) (5,243)
operations
Net cash provided by (used for) operating activities 238,650 136,879
Investing activities
Capital expenditures (39,306) (39,769)
Proceeds from sale of property and equipment 817 4,304
Acquisitions, net of cash acquired or received -- (1,609)
Divestitures 1,506 29,526
Other (3,272) (7)
Net cash provided by (used for) investing activities (40,255) (7,555)
Financing activities
Net short-term borrowings (repayments) (16) (14,180)
Proceeds from long-term debt 490,000 479,405
Repayment of long-term debt (628,776) (486,492)
Debt issuance costs (50) (114)
Excess tax benefits from stock-based compensation 754 1,617
Proceeds from exercise of stock options 1,729 5,140
Repurchases of common stock -- (37,342)
Dividends paid (53,162) (50,541)
Net cash provided by (used for) financing activities (189,521) (102,507)
Effect of exchange rate changes on cash and cash equivalents 1,996 (4,068)
Change in cash and cash equivalents 10,870 22,749
Cash and cash equivalents, beginning of period 39,344 70,795
Cash and cash equivalents, end of period $ 50,214 $ 93,544
Free cash flow
Net cash provided by (used for) continuing operations $ 240,181 $ 142,122
Capital expenditures (39,306) (39,769)
Proceeds from sale of property and equipment 817 4,304
Free cash flow $ 201,692 $ 106,657
Pentair, Inc. and Subsidiaries
Supplemental Financial
Information by Reportable Business Segment (Unaudited)
In thousands First Qtr Second Qtr Third Qtr Nine Months
2009 2009 2009 2009
Net sales to external customers
Water $ 423,932 $ 486,990 $ 461,570 $ 1,372,492
Technical Products 209,908 206,722 201,095 617,725
Consolidated $ 633,840 $ 693,712 $ 662,665 $ 1,990,217
Intersegment sales
Water $ 289 $ 198 $ 284 $ 771
Technical Products 233 600 544 1,377
Other (522) (798) (828) (2,148)
Consolidated $ -- $ -- $ -- $ --
Operating income (loss)
Water $ 26,976 $ 49,781 $ 53,085 $ 129,842
Technical Products 20,462 23,578 24,356 68,396
Other (10,224) (9,799) (10,759) (30,782)
Consolidated $ 37,214 $ 63,560 $ 66,682 $ 167,456
Operating income as a percent of net sales
Water 6.4% 10.2% 11.5% 9.5%
Technical Products 9.7% 11.4% 12.1% 11.1%
Consolidated 5.9% 9.2% 10.1% 8.4%
In thousands First Qtr Second Qtr Third Qtr Nine Months
2008 2008 2008 2008
Net sales to external customers
Water $ 544,686 $ 594,118 $ 557,976 $ 1,696,780
Technical Products 285,460 304,260 297,839 887,559
Consolidated $ 830,146 $ 898,378 $ 855,815 $ 2,584,339
Intersegment sales
Water $ 372 $ 139 $ 305 $ 816
Technical Products 1,138 1,034 765 2,937
Other (1,510) (1,173) (1,070) (3,753)
Consolidated $ -- $ -- $ -- $ --
Operating income (loss)
Water $ 65,035 $ 59,475 $ 49,684 $ 174,194
Technical Products 45,337 49,732 47,585 142,654
Other (13,045) (12,660) (11,655) (37,360)
Consolidated $ 97,327 $ 96,547 $ 85,614 $ 279,488
Operating income as a percent of net sales
Water 11.9% 10.0% 8.9% 10.3%
Technical Products 15.9% 16.3% 16.0% 16.1%
Consolidated 11.7% 10.8% 10.0% 10.8%
Pentair, Inc. and Subsidiaries
Reconciliation of the
GAAP "As Reported" year ending December 31, 2009 to the "Adjusted"
non-GAAP
excluding the effect of 2009 adjustments
(Unaudited)
In thousands, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Year
2009 2009 2009 2009 2009
Net sales $ 633,840 $ 693,712 $ 662,665 $655,000-$670,000 approx $2,650M
Operating income - as reported 37,214 63,560 66,682 67,500 - 72,500 approx 237,500
% of net sales 5.9% 9.2% 10.1% approx 10.6% approx 9.0%
Adjustments:
Restructuring and asset impairment 2,824 2,944 7,295 approx 4,500 approx 17,500
Operating income - as adjusted 40,038 66,504 73,977 72,000 - 77,000 approx 255,000
% of net sales 6.3% 9.6% 11.2% approx 11.3% approx 9.6%
Net income from continuing operations attributable to Pentair, 17,255 32,006 37,033 36,500 - 40,500 approx 125,000
Inc. - as reported
Adjustments - tax affected
Restructuring and asset impairment 1,864 1,943 4,815 approx 3,000 approx 11,500
Bond tender -- 3,171 -- -- 3,171
Net income from continuing operations attributable to Pentair, 19,119 37,120 41,848 39,500 - 43,500 approx 140,000
Inc. - as adjusted
Continuing earnings per common share attributable to Pentair,
Inc. - diluted
Diluted earnings per common share - as reported $ 0.18 $ 0.33 $ 0.38 $0.37 - $0.41 $1.25 - $1.29
Adjustments 0.02 0.05 0.04 approx 0.03 approx 0.15
Diluted earnings per common share - as adjusted $ 0.20 $ 0.38 $ 0.42 $0.40 - $0.44 $1.40 - $1.44
Weighted average common shares outstanding - Diluted 97,966 98,422 98,641 98,900 98,500
Pentair, Inc. and Subsidiaries
Reconciliation of the
GAAP "As Reported" year ending December 31, 2008 to the "Adjusted"
non-GAAP
excluding the effect of 2008 adjustments
(Unaudited)
In thousands, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Year
2008 2008 2008 2008 2008
Net sales $ 830,146 $ 898,378 $ 855,815 $ 767,637 $ 3,351,976
Operating income - as reported 97,327 96,547 85,614 45,197 324,685
% of net sales 11.7% 10.7% 10.0% 5.9% 9.7%
Adjustments:
Restructuring and asset impairment -- 2,586 15,207 28,377 46,170
Horizon settlement -- 20,435 -- -- 20,435
Operating income - as adjusted 97,327 119,568 100,821 73,574 391,290
% of net sales 11.7% 13.3% 11.8% 9.6% 11.7%
Net income from continuing operations attributable to Pentair, 52,463 139,837 42,902 21,161 256,363
Inc. - as reported
Adjustments - tax affected
Restructuring and asset impairment -- 1,707 10,037 18,729 30,473
Horizon settlement -- 13,487 -- -- 13,487
Gain on PRF transaction -- (85,832) -- -- (85,832)
Bond tender -- -- 3,043 -- 3,043
Net income from continuing operations attributable to Pentair, 52,463 69,199 55,982 39,890 217,534
Inc. - as adjusted
Continuing earnings per common share attributable to Pentair,
Inc. - diluted
Diluted earnings per common share - as reported $ 0.53 $ 1.41 $ 0.43 $ 0.22 $ 2.59
Adjustments -- (0.71) 0.13 0.19 (0.39)
Diluted earnings per common share - as adjusted $ 0.53 $ 0.70 $ 0.56 $ 0.41 $ 2.20
Weighted average common shares outstanding - Diluted 99,558 99,509 99,319 98,299 99,068
Pentair, Inc. and Subsidiaries
Reconciliation of the
GAAP "As Reported" year ending December 31, 2009 to the "Adjusted"
non-GAAP
excluding the effect of 2009 adjustments
(Unaudited)
In thousands First Quarter Second Quarter Third Quarter Fourth Quarter Year
2009 2009 2009 2009 2009
Water
Net sales $ 423,932 $ 486,990 $ 461,570 $ 445,000-$455,000 approx $1,825M
Operating income - as reported 26,976 49,781 53,085 52,000-57,000 182,000-187,000
% of net sales 6.4% 10.2% 11.5% 11.4% - 12.8% approx 10.1%
Adjustments - restructuring and asset impairment 1,464 1,460 2,639 approx 1,500 approx 7,000
Operating income - as adjusted 28,440 51,241 55,724 53,500-58,500 189,000-194,000
% of net sales 6.7% 10.5% 12.1% 11.8% - 13.1% approx 10.5%
Technical Products
Net sales $ 209,908 $ 206,722 $ 201,095 $ 210,000-$215,000 approx $830M
Operating income - as reported 20,462 23,578 24,356 27,000-32,000 95,500-100,500
% of net sales 9.7% 11.4% 12.1% 12.6% - 15.2% approx 11.8%
Adjustments - restructuring and asset impairment 792 1,139 4,557 approx 3,000 approx 9,500
Operating income - as adjusted 21,254 24,717 28,913 30,000-35,000 105,000-110,000
% of net sales 10.1% 12.0% 14.4% 14.0% - 16.7% approx 13.0%
Pentair, Inc. and Subsidiaries
Reconciliation of the
GAAP "As Reported" year ending December 31, 2008 to the "Adjusted"
non-GAAP
excluding the effect of 2008 adjustments
(Unaudited)
In thousands First Quarter Second Quarter Third Quarter Fourth Quarter Year
2008 2008 2008 2008 2008
Water
Net sales $ 544,686 $ 594,118 $ 557,976 $ 509,362 $ 2,206,142
Operating income - as reported 65,035 59,475 49,684 32,163 206,357
% of net sales 11.9% 10.0% 8.9% 6.3% 9.4%
Adjustments
Restructuring and asset impairment -- 2,157 13,438 19,628 35,223
Horizon settlement -- 20,435 -- -- 20,435
Operating income - as adjusted 65,035 82,067 63,122 51,791 262,015
% of net sales 11.9% 13.8% 11.3% 10.2% 11.9%
Technical Products
Net sales $ 285,460 $ 304,260 $ 297,839 $ 258,275 $ 1,145,834
Operating income - as reported 45,337 49,732 47,585 26,661 169,315
% of net sales 15.9% 16.3% 16.0% 10.3% 14.8%
Adjustments - restructuring and asset impairment -- 429 633 7,209 8,271
Operating income - as adjusted 45,337 50,161 48,218 33,870 177,586
% of net sales 15.9% 16.4% 16.2% 13.1% 15.5%
SOURCE: Pentair, Inc.
Pentair Todd Gleason, 763-656-5570 Vice President, Strategic Planning & Investor Relations todd.gleason@pentair.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.